TORONTO - Chemtrade Logistics Income Fund (TSX: CHE.UN) today issued 2022 Guidance.
2022 Guidance
Chemtrade expects its 2022 Adjusted EBITDA(1) to range between $265 million and $295 million.
Chemtrade's guidance is based on numerous assumptions. Certain key assumptions that underpin the guidance are as follows: There will be no significant lockdowns or stay at home orders issued in North America due to a resurgence of COVID-19 during 2022.
None of the principal manufacturing facilities (as set out in Chemtrade's AIF) incurs significant unplanned downtime.
Key assumptions in the Electrochemicals (EC) Segment are as follows
North American Metric Electrochemical unit ('MECU') production volume of approximately 185,000; Biennial maintenance turnaround at the North Vancouver chlor-alkali facility, which is scheduled for the second quarter of 2022, will last for approximately three weeks and is expected to have a negative EBITDA impact of approximately $11 million; The average NE Asia Caustic spot price Index for the year ended September 30, 2022, which is a key determinant for prices realized during 2022 will be US$440 per tonne which is US$150 per tonne higher than the prior year and North American production volume of sodium chlorate of approximately 365,000 tonnes.
A foreign exchange rate of US$1 per C$1.234.
Long term incentive plan accruals of between $10 million and $15 million.
About Chemtrade
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements can be generally identified by the use of words such as 'anticipate', 'continue', 'estimate', 'expect', 'expected', 'intend', 'may', 'will', 'project', 'plan', 'should', 'believe' and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: the Fund's expected adjusted EBITDA range for 2022; the expected 2022 range of long term incentive plan accruals, maintenance capital expenditures, cash interest, cash taxes and lease expense. Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the 'RISK FACTORS' section of the Fund's latest Annual Information Form and the 'RISKS AND UNCERTAINTIES' section of the Fund's most recent Management's Discussion & Analysis.
Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: there being no significant North American lockdowns or stay-at-home orders issued; there being no significant disruptions affecting Chemtrade's principal manufacturing facilities; the stated North American MECU and sodium chlorate production volumes; the length and timing of the North Vancouver facility's turnaround and the quantum of its EBITDA impact; the 2022 average NE Asia caustic spot price index and the stated U.S. dollar foreign exchange rate.
Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Contact:
Rohit Bhardwaj
Tel: (416) 496-4177
Web: www.chemtradelogistics.com
CHEMTRADE LOGISTICS INCOME FUND 
