AdvanSix (ASIX) 29 Oct 212021 Q3 Earnings call transcript

Good morning and welcome to the AdvanSix Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] I would now like to turn the conference over to Adam Kressel, Director of Investor Relations. Please go ahead.

Thank you, Andrea. to quarter welcome call. earnings and morning AdvanSix's XXXX third conference Good me and and Vice President today CFO, Erin Preston. With are Senior CEO, here Kane; and Michael President on including reconciliations and any call at investors.advansix.com. webcast, are This available our website non-GAAP presentation elements world that the are forward-looking that our of business our Note see contain view it on today. best statements this of of and based as we materially can and the from differ those change could projected. elements Those results actual them in And that we ask you that consider way. forward-looking the earnings to We included in and you refer release press statements presentation. our

In affect and results addition, SEC. the on in SEC the for our our we uncertainties identify updated share the principal of for our financial outlook of report our filings lines This third risks quarter and key morning annual Form that further filings product our XX-K we as performance will and markets. XXXX in subsequent our including end review

at we'll your end. leave the questions for time Finally,

CEO, I'll to Kane. over that, turn Erin call with So the President AdvanSix's and

morning It's good in with inputs costs. and combination the disruptions, for interest a our continued well dividends execute our and again for we joining across to in business. conditions. quarter AdvanSix. that Adam, business while were continued The chain and positions diverse the of industries logistics for morning everyone. presented customers unique which significant third supporting Mike details your will Thanks, North this AdvanSix material us participate and you to product raw Thank of and the are sales, important coupled and record delivered assets, in once supply industry escalating performance inflationary paying of to note We successfully portfolio moment. with the financials current in earnings improving as our since integrated model industry our quarterly demand as robust well then, American cover our flow leading tight and navigate margin cash made set market dynamics. end supply

was no this continued exception. all demonstrate environments perform quarter we that in can to team Our and

performance what contributions capitalize pricing Day, how company and and volume - we've off are our Our including execution we strong about to near-term shared last was Investor on while performance in Building foundation X good we improvements to the of products driving differentiated built we we continued and off drive going strategies. the positioning building our from opportunities by supported shared feel our years and forward at recent very the growth. long-term

demands And $XXX at roughly recycled We sulfate flexibility higher best by entering per of Business portfolio. confidence There strengthen million granular stewardship facility in first continue meet We our a is needs a to this are free returns. Investor's ESG received lot our the across storefront of and digital credit is intermediates attractive reflecting executing on highly increased focused resiliency of featuring meet valued and quarterly to liquidity presence innovation ammonium in a resins. about, maturing our our and initiated lower cash newly a X-year costs. our and capital operational XXX% chemical to customers. borrowing providing commercial portfolio generation. nylon our what share we conversion performance of be control, evolving quarter superior $XX.X products facility, growth our dividend, total to to revolving order a past with in node and our capabilities cents refinancing existing credit We XXXX. our shareholder of our driving into Building maintain excited of flow expand enhance commercial completed our number XXth into grades, of the we our new hundred We introduced nylon companies a ranked customers. We were XX% postindustrial to of our Daily

to execution business our for on into year strong outlook expected spin in the XXXX post ahead, look momentum taking and we XXXX. and favorable. focused that close As out remains record We're

return. quarter. turn sustainable our with and strong that, With details strategies I'll the of we it long-term to over As align shareholder discuss to the Mike

and where financial results. morning Slide I'll everyone. Erin, on third I'm quarter the X, Okay, now highlight good thanks.

performance product ammonium As increase on by of increase Pricing market-based our you prior based sulfate, improved demand market nylon, can propylene million approximately end across quarter was favorable year. of through market share. board. product to really comprised increase, The variances prior of compared pricing year-over-year XX% the the X% $XX each up $X.XX XX% primarily Caprolactam in in material was of walk by and $XXX volume loss following a see EBITDA versus $XX pass-through raw million, the seen the the of and totaled last across it lines. slide. pricing was terrific driven XX% in year. improvement Sales was net our increased XX%. an million, cost the share per and lines. of pricing Sales share key across a versus per benzene next $X.XX of Earnings year per $X.XX I'll

favorable efficiencies favorable provided better was capital. Our outlook due net about XXth year, quarterly end expected record to of cash at was primarily than earnings since we reflecting $XX the and net year-over-year, high $XX million Investor pricing, September sales. a changes sulfate process capital And that's of finally, of flow material timing raw from of Day, compared timing by project ammonium as were as results primarily our CapEx of then, the well of roughly our $X million income up $XX million in cost, above to operations impact the and reaching driven last execution. by higher million, working

and a $XX through to highlight raw across strong third of portfolio. our nylon supported we drivers EBITDA X, spreads supply continued as Caprolactam year-over-year, here chemical in spreads. performance a over the drove reflected intermediates by excellence and drivers, year-over-year in as demand Now pricing reflecting of continued of we improvement over were quarter let's variable key margin value acetone for has and an ammonium value commercial up was benzene quarter while Tracking sharp third price steadily underlying few as benefit million industry And our beyond XXXX, was propylene sulfur the tailwind the increase improved. approximately over materials a sulfate as a demand in environment demand, industry roughly turn tight performance the Slide above gas year-over-year. key turned agricultural income well, million our natural $XX strong to input impact XXXX, The ability to plant and $XX the costs. turnarounds third planned expected, versus of million drive environment in as reflecting in quarter representing basis, approximately pre-tax the on well of X of net year-over-year, positive supply favorable

XXXX, As recall, our of sulfuric in quarter, our today our larger successfully which complete. XXXX plant turnaround including you ammonia in we plant's larger the third as Kellogg mechanically Hopewell may completed the is is quarter, in Hopewell our acid plants. including fourth In turnaround

execution conditions. $X Philadelphia of the of items were its $X related for and higher strong in the other increased In quarter, we largely million volume incentive spend was PES, to Solutions favorability supplier Energy proceeds growth set additional and Lastly, compensation from and industry of insurance of approximately overall in or a unfavorable expense. and XXXX operational sales cumene higher commercial volume by shutdown also support the million XXXX, quarter had current plant offset third the roughly

slide. let's next to turn Now the

X, million the Page free On generation highlighted and supported side of quarter, cash of lower we've third income, in left of the $XX by working the CapEx spend drivers net rates. flow capital the

$XX generated the flow million in the with increase Another quarter of capital. building of source free million half in very perspective, an cash roughly Working other cash payable, on partially by strong a flow the $XX in from accounts the of year. a offset was cash first working quarter capital

timing purchases. timing it considerations consideration capital, working around to - come when raw are related it when and comes inventory material there always, to accounts payable particularly As

estimate flow relative enables capital alongside create flexibility our expectations project For fourth of a reflecting sequentially year of does our represent $XX to efficiencies of in $XX capital to step-up now timing our approximately cash earnings CapEx, robust anticipate This processes spending with our value run the compared million we more a date. and rate million, execution. to prior year in $XX quarter shareholders. million Improved in full for to to

provides performance facility As costs, favorable liquidity Erin reflecting new more business credit mentioned lower and and borrowing our at strong increased flexibility also earlier, credit our market conditions.

in a the confidence of cash our a future we Given intend grow generation, time. have dividend, and sustain competitive structural flows of committed to cash we form to and strength our in over the which return

accretive and success target the CAS building acquisition M&A are continue also year. this off to earlier of We the

strategies returns. support capital and our we So balanced attractive strategy a to value allocation overall, shareholder a and believe enhancer is a core focus to key that total disciplined

back Now to let call the Erin. me turn

improving while pricing roughly included spreads, with we've quarter Mike. we've line. now ton the quarter. through the nylon, on across spreads quarter. seen roughly where the in where Caprolactam remaining sequentially X, Slide average third our second Thanks, spreads a on XX.XX further benzene product year-over-year the The basis, Asia Starting from I'm per third flat and

reflecting characterized we an in nitrogen costs industry policy Spreads second a line prices, input by environment. including of on acres ratios the The economics, has controls pricing and industry disciplined crop over supply are be constraints ton significantly by and higher of of robust material and globally. XXXX. with third quarter and dual continued continues agricultural use quarter, input With the value China costs, these supply American more planted strong and producer per through North market XXXX the backdrop demand just chain. industry third to from constraints with potential to from raw higher Overall, the overall. increase stock impacts market globally, supported marginal monitoring quarter rising fundamentals continued surge are $XXX in in relatively

of discussed buy this do gas our prices region as to to our the selling environment, footprint well in relative advantage have moved positioned versus have we historically feedstocks. succeed here we're year therefore in low and prices We As throughout substantially key given and make XXXX. with access sulfur higher most on well this natural premium ammonia, believe U.S., previously, to as

roughly an typical The mix see Overall, X quarter. Europe would third seasonal sequentially we the times in note impact As better example, in price U.S. and than have did higher than gas in our prices results balancing natural still sulfate not through been that the over reflected to expected costs, grade prices into and here we moderated expected, on improved industry X continued now acetone refinery fourth year-over-year, propylene realized lastly while quarter. demand. and third domestic quarter higher have quarter and the supply sequentially performance into pricing the of further as volume And ammonium the

the predominantly freely reflective of the domestic a buyer medium pricing of reminder, where negotiated. small industry price X/X roughly As acetone is is

Let's turn preliminary outlook XXXX. to Slide for considerations our X, to discuss

in, participate we on year. year, to supply input Across created building industry the various are remains at see chains when momentum rising this continue next and disruptions, We overall into chain head a the robust. we costs time we demand value as

meet integrated nylon is and Our portfolio some the execute is remained in America have market has this however and promise fertilizer of of on chain. ensure signs key season. partner, ammonium offering. that to while a quality on industry in well, crop steady meeting demand remaining strong Underlying volume seen other monitoring tight sulfate pricing. to to sulfur mechanisms, coupled our and of efforts value our brand in priority all be customers a the of agricultural Packaging are side. In It's indicators remained positions to ability is the levels, planting With the and well and In a customer and through key say service continue sulfur differentiated effects material end supply from Residential yield, to into There fundamentals the increases demand and supply. engineer resilient, space, granular In environment our to product. value robust fair the strongest perspective. we we've the across puts delivering well, and environment, development tightness to our drive we nutrient inventories nylon XXXX leading we initiatives environment core to conditions and are nutrition number proposition supported ammonium recovery takes leading pricing remain this expect construction product expect plastics sulfate, end costs, and commercial focused the needs. strong for model, tight and as longer-term in commercial of decade. favorable trend business continue to healthy a the continues early across uses a to as nitrogen being North navigate favorably demand effort trusted with our diverse robust set demand industry chain, industry short by are to line applications. demand and shortages term, Ag last our supply-demand we seeing conversion supporting their input as continue our targeted on shift In drive has as of as down our we value we this drive our rising we're

to across intermediates, to in portfolio, for and Moving solvents, electronics, building continue our few. demand paints chemical customers to name a full expect coatings, of high a and which diverse purity through trends across supporting growth favorable and serves end portfolio auto, pharmaceuticals markets set applications. construction, investments We're and the high-value product

which of drive We're expansion our a Our base high-value applications. outlet further various also continue enable XBO will cyclohexanone is in this up to product applications, we nato line, traction paints product into ramping efforts recent use as growth other support launch. to growth and and anticipated solving commercial in

further continue business. Operationally, as on the North Finally, acetone and year we while XXXX. this we focus performance, higher utilization do see turn, in supply returns to sustainable for and we've in shared into will driving safe, anticipate continually stable, balancing drives rates, we've which less America variability demand as

this We days quarter in required four highlight would plant's restart, later activity work our were I have XXXX turnaround. delayed quarter, Hopewell our ramped than that of at the weeks as additional plant back and several identify following now, part maintenance we planned. fourth achieving did up turnaround

in During work this we would compliance take did completed and been some ultimately pull to the XXXX. opportunity essential have time, that forward

we CapEx be pre-tax range the of income approximately expectation. XXXX, we the to now $XX be maintenance million midpoint million to in from $X of million XXXX, the roughly reflecting an in expect previous to primarily impact or fourth increase turnarounds XXXX. quarter for plant base higher So the $XXX $XX than expect from In million, CapEx our

tied with to an and increase turnarounds this project of our associated execution capital to So, year. is relative in timing this

$XX still million project million savings against executing and and roughly high the also We refining cost are growth to $XXX pipeline.

what back However, next be and to as projects tailwinds to a over we these number will has generally expect we years. execution strong that been size, continued few earnings flow support into cash past executed year are of share, in with Overall, performance. smaller the robust

our Let's Q&A. at investment to turn Day. up, to that like wrap we shared before back to thesis recent Slide X our I'd moving return Investor to to

combination advantage source in and competitive well and any Our of positions unique integrated a environment. business us model assets is of

nylon We have contributions product that portfolios. quarter, intermediate on continue sulfate for to on display comes are our see ammonium third and from than the lines we our significant with a leading positions our more company and across

We investments have where long-term commercial products and the earnings variety significantly supporting base power a operational improve of in trends made applications company return the high macro Our diverse growth. we've are with the execution. and

allocation continue. tailwinds balanced that capital strategy. for lastly, and will and creation Our through differentiated And expect our good are products are providing the we enhancing value we disciplined company

to initiated opportunities deploy excited form in a to structural of are shareholders about have We further the return dividend and capital. of cash

this over positioning us that. shareholder the to medium All and to with Adam, total let's long-term. return of short, Q&A. move drive

Andrea, please Erin. open the for thanks. you line questions. Great, can

question [Operator from of CL go King. ahead. Instructions] The David Please first comes Silver

Thanks the for opportunity.

above I September the down issued I that results drove the XX, quarter maybe first you part So drill Investor I event. or guidance I on elements guess of your the guess questions. third have like maybe, would the that on catalyst Day Analyst few to as

that you. that in led incremental So last upside? happened few months of what the days the Thank business maybe to

better and we sulfate we particularly we other of favorability. is anticipated the fourth bit And little had here stronger down really of drove other that's a so ended perhaps may results, that volume settling than I little a really the a upside. things, closed propylene favorable in quarter, - in the draws timing and the expected combination the so domestic, space, was volume that more bit half strong, and half what fourth us it had the give of half so what that headwind two was really David, mean, that than third that intermediate quarter, Yes, we bit the just ammonium between drove a a of is little one a timing bit, that price quarter

Okay.

quarter. to now, to versus side the on really was drill things quarterly revenue out not numbers, just - one when the unseasonably I stuck and third elements I'm can higher there in maybe that the So of performance XQ, and you maybe going down that, lot the price I but of --I to see the but great I fertilizer sulfate a you one performance? look the the led expect revenues this discuss I to kind but strong through number that XQ Could I revenue chart the guess that did be mean - me of ammonium in results, don't - the were discuss

Yes, pricing to sure. July kind couple David, been weeks. Xst last have where say certainly the was, of on let's you things at in look where Thanks when really of trending

gas. the on rising see the Cornbelt prices is nearly you have the up As natural through time AS XX% charts, Energy and pricing up you frame. pricing this Cornbelt, XX%,

to have cost the that base. forward on into Just what means industries' continued drive

than had see the next we the XQs, this fall about We've your the is reset. past, right. our about talked normal resets as industry So tend season, previous pricing fall higher think be when pricing would years in fill, to indicated we we for this

right. became good spot. we started But out at So situation a the as tighter.

we volumes have more and quickly moved well. up domestically than up I as picked anticipated think pricing the would

think volume normally it we sequential of about, you both when So mix. in that and think sort about that consideration comes

the side sales, been the moved granular mean, have is in expectations what than export swing So it supported the would and both more but sorry seen. results that - the I to price export our still versus you expectations. domestic markets move contributed quickly markets. the that that to here really we We standard typically saw

Okay. high the benefit would utilization tiny up an fall fertilizer - net working that the then helpful. wondering on across much chart ago. to of And a just then second the hand, of that thinking activity. the continued how might on capital was this third flow. bit chain. again back Thank maybe be, be on quarter surprised was inability full That are just if I would a complement that, I'm for cash thing and one - quarter I was fourth kind of this and could one working be you in you materials your capital the million your the And get deposit you. usage question raw teed customer a fill, integrated year versus that quarter Maybe $XX

of happy is when I'm these look that. at to the really I Yes, most look benefit --roughly capital, look perspective, working of timing. at was take a on working the slide sort cash When at the you that would And you from flow when unfavorable that cash up. if actually capital, was sales a purely of were accounts million receivable $XX you in say overall. you generator

the impact with some cumene, way. balances payable from payable Inventories see materials, about you is not associated as as was the that $XX that's by perspective that in cash And $X in frankly, then particularly accounts surprise. raw the million you where saw when payable, by more million. And cumene could we're by accounts were big accounts swings and in a inventory quarter. the really could favorable well So timing unfavorable the benefit acquiring was slightly really a

to conversion high so of flow in cash that had the quarter. free that - we that very Some contributed the conversion,

below which is working high spend to the addition depreciation, will fact that to say capital CapEx I'll itself. still the also conversion, the some of reverse rates contributed what were the In probably

back a spend in working fourth you look of fourth the you rates quarter relative then, fourth the headwind. the look likely spend up quarter at you roughly we've of anticipating that So we'll to out will capital, in free net to the when the a CapEx relative of come We're what come to flow three be of quarter you income million the is And conversion, see if sort CapEx so cash year. first if quarters seen. at down will, $XX when bit

market the are So that's a anticipate. quarter gas, they're and pre-buy With looking the any as case Clearly, fourth sulfur what the anticipating for. see time, customers assess At environment I is to understanding very as environment, tight is environment and overall. respect it - what in pre-buy, you would same have been the will the volatile. natural what tight materials, raw the

all of these take optimize will quarter. elements develop really and we Xth in to into approach So the outcome an consideration the intended

evaluate that through quarter. we'll as So the get we

comes from Stifel. The next go question Vincent Please of Anderson ahead.

can incremental market tight see into few capital availability and still given wondering disruptions their most enough profitable months, gas to more the we the these over is it's to I'm keep Europe placing So next of ammonia U.S. expect or just to freight, your you product here? with that

tightness now, our back, going To needs out. North Globally, bit relationships our quite standing Vincent. robust. to American is your their as right about that you here their disruption has American and in demand this customers, and relative chain, our tenured given how come said is with always of and demand demand volumes will we and North think point have back and supporting a come on long there

the obviously is that there appreciate XX and work, stretches their then would where customers these partner close opportunity. to So, XX obviously to where we that, keen it considerations optimize them the in here place there additional focus thereafter, to best seek but they molecules trust first is around over relationship our then if to long share years we being the externally, are if that

And new suppliers the the acetone U.S., buyer Asian in huge coming you with of U.S.? with kind it's to year around time given working large of that or flows indication some any up trade the have sense. that of in into the these perfect do history swing networks some of makes the Actually, just and maybe

X/X they're the the here Yes, there, that or volumes I of large buying larger less more customers represents and market. buyer think

do ability those why to North You import. about see American do situation can at to monthly the or is, look basis the what market to some we coming and potentially quarterly geographical on the, balance volumes on and take need in. we be way them XX,XXX a we the have think really tons The give need average, about

So of is either that you though, underlying right vis-a-vis our North now else supply when America security where material raw most look and and everything a discussions pricing at well around sits, chains can where focus been advantage has really the and competitive believe our core throughout that a customers. obviously number value of is and of our proposition we bring what plays into we

to fairly focused point helps I seeing of next conversation, you're for think a but year? securing their it molecules So, it's or always how

channel market, add Yes, going into contracted. X/X primarily which only Vincent, that thing of is M&A to the other is highly I'd is acetone

do than with time indicated important an we Erin have security So agreements element channel. is that for consideration supply span that and, over really as volumes

Okay.

a think I based couple had if is non-market I of helpful, questions. it I - may just

So first, bulk we've the and pet been maybe little Virginia hearing or the from more of U.S. and secluded labor a in chem shortages industry. you more

was skilled the your assets key run and age be kind I distribution to might you you to about and over feel labor of So how at or secure you your willing promote longer term? what programs exploring discuss hoping

lot is we've much but about certainly Vincent. like personally, and the industry footprint a about And missing are hiring, say broader perspective, I you from a some to look we we passive, I demographic degree. generation, in as there times obviously had have perspective think schools about have spending tougher even and building are that bimodal and that us all for chemical in very sort that that some if state pipeline. of in don't the we a I a right in think based demographics a communities talked with can us. demographic profile Thanks, industry our on on, And so for high trend the we opportunities less I sort for our will there's certainly to relative what do and time transition, think we and of the a would our how use improvement graduate reach we driving set technology, industry programs out needs working of the of thinking into opportunity and to to conversations technology kinds how mean, be, leverage

focused building out underprivileged been getting have is to for really a some initiative, are stem on - again really years as and which we're enabling that so something and supportive our of folks programs labor to We here. education, will represented multifaceted I that minorities said, going future point industry into have scholarships FOSSI, a of sellers out, think And the do force to to That in multi-generations you for transition. have program into come.

as have many be really I the for us of employees a that well. think our forward that given of to driving longevity could strength they the company of relative real and the strength knowledge opportunities and

the from up, just describe like a around where on node perspective, are generator like customers to it it directed Excellent. you? commercial it this distributors And website, you pretty interesting. Can is this looks this because more how operates lead from just is so is a brought or drop then playing you sales

Yes, point, the at Vincent. latter so this

is you a appreciate we build well. customers it's different with about from around and technology perhaps I lives question in see our there how again as that personal was think just So, right, buy our interact your have our bars we we me profiles, generation, last let what

in really seeing what the reach expertise is attributes like us continue our obviously and for specifying and and, in it's into this us and broadened platform looking are how on of look digital we'll forward providing and right products So to for lead digital then with formulators focus various a play and for technical to we forward. of background, kind going the and we that generation can now opportunity another just And marketplace benefits.

ahead. comes from go Sandler. Charles next Piper Please The question of Neivert

Do Couple that but I ammonium quick be One, nitrogen guys it you seems up to your at sulfate, a open real we've the close time, bit. up re-close. again. so, sulfate pricing, lagging for seems questions, the then I'm will saw on chart periodically to of obviously of looking a to sort gap movement mean and month seen expect or and last

at have not numbers. then and you a have any it's I the because some guess off. sort fourth standard that fourth once So of of and off time quarter are expect in you in moving looking the product to things - and you're is go Understanding domestically. moving between the switch product much prices as working there Is Brazil, granular maybe the I of right the down about to where that, gone something issues, now start you that product quarter there logistics and guess winter seen that

can that bit? you talk dynamic a So just to little

Yes.

sort certainly, and when the a - you see different we have urea, offerings it point sort of you the that urea out, current of residual as the indeed, pricing urea, market mark against we ammonium latest the look on softer you is with earning at we and we will, provides then are if So the watch because focused value, as nitrogen AS for underlying value certainly we there premium associated the note grower sort in in the to and prices, of the do of strength at look continue when sulfate to premium. pay of They dollar proposition that a dynamics. and that of offerings latest would then

out is So get trade, may relative on a right, what is what can be varying considerations versus oriented to reached spot product sort published fall of more fill. which there where

take throughout that you you It is at where sort people market, know position will all a the that kind there positions. or buy year. folks as into are of times various and sell If of

continue market sulfate forward. continue price we ammonium that to the though move does to certainly expect to in and appreciate So

And natural consideration rapid that Charlie, gas. just well as the escalation one as with with

pricing it perspective, about the XX% you right, in margin a increase it's for looking well. when XX% the natural consider think less sulfur, sulfate gas ammonium as and think natural a gas is we're at variable we gas third another in clearly from in fourth quarter, a in to quarter If moving less ammonium the in saw natural the favorable increase and you you escalation also EBITDA direction, but net-net sulfate need

with up shall has you're see regard down Brazil, to American with. that to issues there I'm that you the best any nicely, I also having been going on down in assuming move mean, do forward? Latin market is moving going so. is then we there deal pricing to fairly And region, into logistics regards, What product

the No. as gave continue to appreciation, black particularly - secure to for XX% that. to in some But was there out Thanks more trial. into up even able Cornbelt, that reminding mean Brazil significant granular of as the as but sea in data to their here I vessels, part And the we've down our as of side tightness I bulk well, coming to a Yes. continued have Europe Asia. on logistics secure customers you because to of material say need I transportation Yes, on well been materials they South really side, they're or on America. take see for the you now July certainly. points AS appreciate even is the

of freight So, not container the sort the up the fuel see but constraints. fundamental that on logistics side, that, same capacity things to and you relative like certainly no is challenges

quick just follow-up. one then And

of opened part or Asia. also Europe Sorry from more a of been, side, able into token, are seeing same nylon the in Is producers. there, noticed large been lot fertilizer in is would plastics they've I Latin, whether is because on American they Latin opportunity things the to it's the that particularly have been sort there move all there export It for typically one speak get who competitors product large that an for had well. show you opportunity markets I as side have than market, so guys so those horse, up at get from that, the product because usually maybe market but a the is can't or is to that able by to has think prolapse for in to know of that, something same we've a up the there. don't the course of I others

Yes, no, it's.

it's I has post here it's China last exports has significantly certainly Brazil, put anti-dumping think an as that I fertilizers. into and were you export China to over know, into the of region something in into played ban couple years, put XXXX. And that for. measures the watch mean, on on place particularly

that include have added on certainly, of sort continue has X-week price the band. they reported through types officials that does potentially movement ammonium producers in it that But China, given it could ammonium into of has been heard that government be not October bit property quite been sulfate we last reached out sulfate the appreciation to suggesting of gains these perhaps date. that As XXth, just to we of a understand price have

into, just where this have been and the I region, to on, production what market now to of coming strong to moving European watch robust security going expectation and of but track filling where So Certainly on given fundamentals out kind on-stock forward as futures that their have lot leading as constrained year say the focus taking would supply you something where fertilizers and has rather perhaps sure sort planting that now. the show through this I'm to making is be of ratios. reduced, just of folks year. a what just has right that just, right but been supply, sure probably Number of forward, exports void yields a they coming characterized expected a sort with crop higher head season, parts for use of is given to been of

Silver question of follow-up go Please last King. ahead. is a David CL The from

much. very thanks hi, Yes,

make it Sulfix questions make be, something, a So I'm M suggestion call, I the this might name I'll to your just going based don't in on company or know.

on all notice. that's short I come could with Sorry, up

Short that. notice

Yes.

comment I about production so to in with Charlie's comment question. am this I grab going demand, philosophy kind maybe and is a Vincent's other of excellent disruptions marketing - ammonia actually but guess, more about So regions this starting

think I profit long-term the relationships of between Q&A in So nearer balance this think and maybe customer And both spring. and that's strong, response is to here, the Erin this term in I times but know you a ahead mentioned I and is or I your personally, robust opportunity. couple Mike use the my think already you've term opinion, that looking borderline shortage just conditions the

has does I'm how your from your oversight, that marketing next customers I they're this through third has now volume, mean, philosophy guess your your I be for market of any environment, the the based that the this of spring. marketing fertilizer you. how moved fertilizer quarter, with your wondering, your in from are - thinking words, selling evolve does the other selling has say, Thank happy to few does next for So, the let's just boardroom now, probably change product quarters going in how - or in where just extremely that the allocation is sure. about product for your office business kind changed? trends market decisions the markets on in and the or that But volatile the maybe to has bought

on our I'd a driving on paid value that have for nutrients competitive and are great Alright David. and and of the by we've that true the for And a as to in proposition, well. group the growth give propositions keen that extract great cycles earning deliver, things is over past. inherently individuals for that the customers know a have and plant the Stay industry experienced our in set pulse cases, a like products probably industry, to how check our having we the premiums shout and getting steeped many really competitively know value folks out are through of priorities value first, think set the team. in we driving strong I well, This led to a where are

XXXX-XXXX. think our thing of and - is changed as conversation we has just I to about been out, bit point how we as is the the that's a is, time, So competitively, moving I point us been key is the with order a of I the with nitrogen very for you of In think right, notable you book more and it was supply right. say the we what allowing they security about They the and the where probably right. since are, value long frequency our our customers as there space, of at is can XXXXs, pricing customers marketplace how moving, out, nylon, have where the really We it's pace transition out. that interesting that reflecting most market the would a where servicing we the have selling think period balance conversation line, entered chain was

tremendous the move go time back are and of and here lot question see, set we quite more talented our AS and focus in urea, think about our attention, our a back volatile the can even, urea. same much than general I more at performance our Urea maybe a depth the and of flip and them lot in is how paced of up team have have to helm pace in just considerations. sets, conversations here So trust so and side optimizing longevity don't important frequent. is business But in success we the we is on can more we managing Charlie's at this you at on a give as the the full

I for the most mentioned probably and your long in team, terms have apologize probably my sophisticated that, ammonium Okay. preamble, a Thanks should I not in I the sulfate, consider lot world. in marketing No. sales of

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This concludes back turn like our Erin conference would the Kane to I question-and-answer to session. any for closing over remarks.

for time dialog Perfect, this thank morning. interest and your and you again all

The while third our represented performance results I'm of standout organization continues current our quarter support very proud and to how environment. the navigating customers

We you we are continue strategies, the drive our align and focused attractive are as excited long against shareholder future, with to hope as to execute return today. about our I total here ability term. over achieve

Stay safe again speaking to you we'll that, with with quarter. next and So well. forward be look

concluded. now and you may presentation is now for you disconnect. conference attending Thank today's The