Ecovyst (ECVT) 25 Feb 222021 Q4 Earnings call transcript

Please stand by.

Your program is about to begin. [Operator Instructions]. Good morning. My name is Britney and I'll be your conference operator today. Fourth full-year Ecovyst and Earnings the webcast. to Quarter XXXX and Call Welcome call and being one note is Please today's recorded hour. should approximately run to Currently, a been have prevent mode all noise. any placed background participants listen-only in speaker’s the session. remarks a be After question-and-answer will there like would Relations to Investor turn the Financial Communications. [Operator Chris now call Director Evans, Instructions] to I of and over go Please ahead.

for fourth quarter our you. Thank us joining Welcome, everyone and for earnings thank call. you XXXX

GAAP the to the financial company's of on the of over release to be website risks Belgacem. mentioned on call measures, the and Michael shared Chief Feehan, in this in remarks our And to found discussed actual performance formal President from Chariag, with today implementation earnings www.ecovyst.com. Executive at today's as with the Reconciliations Officer, of anticipated Officer. today our & that and are with session. end-use and Please SEC. about company's date. only Investors section Any and the Financial forward-looking, follow start outlook, This information trends, vary forward-looking will Chief uncertainties filings of shared speaks call, plans the strategies, XXXX measures is to note pleased information We will that company's results with Vice and These the turn our financial Q&A corresponding risks posted could goals. Chairman, today & Belgacem information we some President subject Then materials information non-GAAP the our our presentation can the including of that, and materially. cause demand operating I'm financial with is XXXX a

what very in team achieved everyone thank I'm today. we and highly importantly, transformational services Ecovyst, It portfolio. remarkable journey, year, financial you, to vision catalyst delivered was Ecovyst you create a proud launch And joining the with and company. the of successful Thank accomplished as us XXXX. Chris. performance completed Most simpler and our transformational on successfully pure-play we to and stronger strategic our of

strong, businesses, rates and robust complementary, high are aligned We and two with high margin, each around growing cash generation. now growth

energy positioned We our goals. support are Today, sustainability customers the our help achieve to transition. their uniquely products to green

solutions increasingly fuels, biomass, as is and focused plastic pipeline such on sustainable innovation in circularity. areas Our renewable

are and and and We ESG Investor our confident remain in financial we goals. achieve we industry laid pace strategy acting out trends, the own our very to Day we Meanwhile, on key the committed last goals to our are at April. on XXXX

performance. we goals our set are Our In sustainability and XXXX, path to a define XXXX, mission our growth. complementary towards ambitions implemented de up operational was comprehensive centre and financial it - to sustainability our for Throughout XXXX operational and waste which pandemic level all, and year of chain high customer and challenging XXXX support, supply we reduction. complications. a the maintained from carbonization

Our was to in solid successful critical fourth a performance. execution deliver quarter year and

go financials in later. will financial upgraded noting. these XXXX worth exceeded comment guidance. our through on But a We points I'll few earnings more details

driving Volumes we As and rebounded solid the profitability. across entire a boasting portfolio, delivered quarter. fourth sales

factors. sulfur, inflationary and management from in contractual pricing throughs part labour - pass been energy, targeted These offsetting succeeding We efforts. also Gulf of Eco have our in are but business, in achieved Services and from

the actions continuing see growth great cash not momentum benefit done. XXXX free have And considerably up into in a work solid flow. Ecovyst we generation. adjusted was quarter total, for expect throughs. our another adjusting - cash and XXXX growth We but and year we are of the can You after In strong is of year see net our impacts EBITDA full-year which delivered of of margins, our and pass fourth out

these excited about as Slide metrics undeniable make this our I view that X. key me success execution. our the the team long-term would proud of several of of highlight business strategic to I proof-points quality and of Moving potential. to and like our

by those industry our X speaks We of X share to for supply number differentiation customers we XX% for number sales. deliver products our the categories up or value from our and are This leader competitors. more that than make

than we reported XX% adjusted EBITDA XXX trends see This highly earnings expect product pass-through, advantage as EBITDA despite was sales of sulfur growth These in year-over-year This demonstrated the enable our profitability achievement create our is customer the points We're in at In to safety. sales XXXX, unmatched tailwinds commitment unwavering results, chains makes hydrocracking above expect none This like enduring maintain more an these degree economy a our XXXX. We deep an when pre XXXX areas, and leadership to customers, solutions supply in connectivity. exposure, regional business select matter rates. our But cost majority We of in emission indicative and without is recovery normalize. to XXXX patterns excluding impact. through stability value adjusted We lines, and and restrained these grow growth. a exceeding control areas cost now ordering profile. industry and improvement basis profitable and in Ecovyst XX% our its to was and us the for position factors in the with and of of our business. provide is XX% tailored margins notable -pandemic for of catalysts. innovation, the relationships. which inflation given and of

management some most Our the of team safety very metrics the important monitors closely. that KPIs are

We over past level. a have reached strides and great made several the years performance top-tier

we clearly simpler operational stronger our strategic successfully performance pivoting Having completed X, slide our portfolio. and and multiple transformation, clean and now greening. trends, fuels, see means quality demonstrates are and to our growing we the grow to greening that as Let's including our prime and industrial of move Growing and XXXX with in to financial efficient greening solutions. electrification, business sustainable the shift to secular

Slide X. to Turning

CAGR these more outpacing apparent predictable, our XX% and in share at make through but and for not portfolio. growth down catalyst, global differentiated our industry-leading Let approach. slim we XXXX example, products support of collaboration trend far business. for new grown Sales our expect Takes and even and more be between demand. have is areas. to secular businesses, me We're active sure readily clarify and Silica tailored to customer day with catalyst it this pipeline a XXXX, here stronger, every investments winning continues We growth work polyethylene attractive a into that

planet. our Moving than growing to growth our is available happening X. fuels. fuels in a greening can and to There the of for view customers of us no where renewable portfolio. exciting and of We the better Slide substantial our best it opportunities example The we one transition solutions and contribute this most sustainable fast as today becoming opportunity is for part and meaningful renewable is

oils. replacement, me such little announced York from they're a cooking Other area as typically let lower within Tenders tax carbon are fuel and of used a bio-derived, waste then today renewable fuels making regulations So states much which and carbon frame financed clean heavy-duty next background fuels the provide are fossil fuels, this products and a fuels. Canada the are standards, growth fuels credit intensity such are profitable New Oregon, have for diesel. incentives standards. low-carbon a produce for And and gives opportunity Renewable and Renewable standard These of Washington, decarbonisation also like us. increased as the to an and proposing transition as similar such driving than most can specifically as refiners. low used in year. drop-in incentives be societal exciting on the introduction focus fuel California's

scaling rapidly revamping an As is renewable products left role. capacities you and important in or play side are U.S. facilities can on see the are refineries up their to the incorporate where slide, the expanding production. This Ecovyst of fuel quickly

Our flow, operating DLI based to customized can the incorporated increase improve climates. such key so it's They flexibility using fuel also yields, as, for cold fuel is range technology at for to renewable catalyst refineries. suitable be enabler, catalyst can into cold a used be specific properties, wide of and our

in renewable commercializing unprecedented we diesel Our to forecast support XXXX, growth. to middle is U.S. Since XXXX and seen of XXXX CAGR have Sales diesel XXXX tripled the rapid part manufacturing production, expect positioned we in to We least robust of mid-XXs at based through decade. sale remain given the demand. renewable this product percent uniquely beyond. from a a acceleration line and reasonably nearly growth

the about to excited this aviation sustainable as opportunity, are as shape take and as progresses. the is We beginning industry decade progression of create just opportunities well which additional the are likely to in fuels,

macroeconomic Growing very the adjusted fuel renewable to we high-growth, very attractive, segments, and just Even under EBITDA has continues XX's% greening like environments, high-margin margins. serving on X, Ecovyst Slide emphasis discussed. our example maintained low different Turning

predictability driven and earnings, unique in a collaborations proposition results strong long-term value in of high portfolio customer visibility, specified Our contracts products. by and

and fuels, Adjusted air, customer in - our remove targeting of margins Slide through recycling solutions. help into EBITDA towards trends plastics, sulfur by XXXX centric disciplined biomass to capital These want and sustainability the plastic XX% XX% and bigger cost Renewable and and to proprietary examples. of transform I clean XX% solutions. circularity, X innovation Global just with few accelerate speak We for to fuels, a reuse management. conversion Turn where our to cite need chemical mission, diesel, to solutions sustainable enable around are cash

comprehensive improving year set our as goals, environmental achieving up progresses. 'XX. sustainability goals in customers the topics sustainability for these is our a performance on support and to come we As more implemented anticipate and XXXX their There have own we

We're Moving start off good to Slide XX. at to a actually Ecovyst.

delivering is playing and on strategy we're out our Our goals.

to financial are us XXXX targets, that shortly. our Mike XXXX. pace through as walk will finish on of in we strong XXXX strong We And deliver evidenced confident on are outlook, the

of current for Eco to impacting turn now businesses XX, brief a with Services. Let's starting Slide our overview trends

demand to reaching by resuming traveling as XX% pandemic. it we more with surpassing has the inventory continuing for to More are than Recently announced, as that recovery out remains demand oil people XXXX ever, and year-end utilization morning XXXX fleet strong has records low. for will been commute, CIA are are We robust and thanks families logistics rates an gasoline close of robust at their goods. demand new potentially come and in see consumer all-time set to and remains production high demand

in sulfuric mining fluorite electronics. green know, as critical and a As role plays in you acid batteries and such may lithium for automotive copper

industry position asset. which strong supply grade around to continue chain, trends continue puts see to high in us supplying positive our We

As the greener continue towards to economy. we contribute

bill, for the year-on-year, global fuels our diesel welfare catalysts, consumer the With momentum we consumption the XX% further We grow expect enactment Renewable continues renewable will than and account by economy. for supported for to by government legislation of of of XXXX. the the even X% estimate that preferences. more diesel positive of U.S. infrastructure about demand end

preferences consumer as polyethylene On behind packaged global for robust in front, the single-digits the remains trends. e-commerce goods demand accelerated mid-to-high fast-growing

the recycled pushing corporate polymers industrial market build in for manufacturers lighter metals front, to stronger, products pledges in key and applications. plastics, the changes, catalyst, towards continue chemically the are On as replace to continue catalysts. is polarized which to polymerization driving demand addition and Policy

regulations controls address key technologies our challenges And Zeolyst-based and are to Silica We now emission the outlook. the our financial see More over in introduced strong and discuss front, industry level. and solutions, knocks more on seeking I as call remained critical custom both turn renewable fourth-quarter results and will to counter Mike and continue space. model thought to the players high to their demand full-year and the fuel new being to to and are solutions conventional

Belgacem. you, share our morning, as with you you. everyone. as fourth-quarter as outlook excited financial to our I'm joined glad well full-year good today results, Thank and us XXXX that I'm And

see third report continued in earnings and ahead delivered during we call performance the quarter. our expected adjusted morning, in strong quarter fourth to of early excited expectations. November, to mentioned This our EBITDA As sales I'm growth that we

Zeolyst XX% rebound other the offset for variable hydrocracking catalyst earnings most categories. logistical EBITDA our and with dollar led costs strong of XXX year-over-year. in During growth. XX% inflation allowing by driven EBITDA more grew and sulfur basis negative sulfur, point XX.X% and Higher across despite a adjustments, a costs. adjusted Adjusted Demand JV quarter, than XX%, the including sales for increased the such broad-based demand by polyethylene higher were catalyst to as gas, and contractual pass-through dollar partially margins costs, the total impact respectively, share product price along natural of way from

for the quarter fourth delivery final was the performance a in the leg of Our financial remarkable year.

pricing, demand, While increased driving also and mix margin polyethylene in higher partially areas negative of XXXX, global point pass XX.X% Higher half, growth catalyst results. adjusted from an demand stable basis EBITDA, impact of included the a was from costs. impact and and the fuels recovery the second XX% resulted in a a sales in XXX full-year our the EBITDA saw pandemic, and growth like particularly of renewable XX% year-over-year story a in strong we certain sulfur through adjusted

generated In addition, X.X $XX as the leverage promised, of a during at a adjusted more end times. by And ratio than million to year. we free we year cash reduced flow half the our turn,

Moving look into increased price-to-cost a we'll take the EBITDA stronger higher $XX our but deeper profitability. to slide, on million demand, the from next on positive also fourth-quarter volumes dynamic. Adjusted

passed through dollar-for-dollar price basis. in As a previously discussed, sulfur on costs are

In gas, further input that and natural other provisions against to have addition, labour, we index contractual other pricing inflation. our costs, protecting

exceeded costs profitability, pricing driving expanded variable higher As basis margins while such, XX point. increasing

quarter. impact, we're the With leverage full demand the for have XXX pass-through favourable sulfur benefit margins of mix. during to points able our and cost of demonstrating basis If Further would the you the our strength neutralized, strong products input businesses. exclude increases expanded the

higher sulfur energy favourable Let million $XX $XX Adjusted favourable the businesses pricing, we in the higher $XX driven well the me services. or deeper as cost, increased XX% Services segment next a of little the by as pricing pass-through cost virgin XX% volume million dive inclusive ChemXX from on as regeneration and Sales acid of and turn labour the of sulfuric our increased of into pass-through million slide. higher volume, impact on acquisition. including the the to Eco EBITDA or index

in pressured by the related costs. were sulfur this of to XXX margins segment nearly adjusted higher grew, point EBITDA basis While pass-through

by venture. to results our while improved includes of catalyst This segment segment. the Silica our the XX%, for catalyst more business Turning Zeolyst of joint was sales in Technologies JV sales the Catalyst the demand up increase results were and than driven with volume strong Silica in by Zeolyst driven and share catalyst Silica up the gains. demand continued XX%. The sales polyethylene XX%

sales pressure million Adjusted of increased $XX mix Within control. refinery the with grew JV, increasing basis catalyst catalyst increasing on Zeolyst volumes higher XXX of points from product of and emission higher-margin benefiting and products. both utilization and XX% hydrocracking EBITDA margins

believe in for the positive regeneration as Alkylate our sulfuric we the growth extremely demand on for our to EBITDA demand for renewable Catalyst uses. custom growth nylon our drivers. the outlook financial success catalysts. sales and industrial continue. of XXXX, XXXX. continued on our activation growth to increase build acid results Moving historic industry expectation in catalyst continued And niche outpacing and virgin of use XXXX Services remain our of both the mining In we Along Eco fuels and to the of adjusted of of We in expected catalyst the growth other drive of momentum polyethylene services is expansion Technologies, business production in with for will in and

at or share we of to our up $XXX XXXX, XX% dollars including and XX% million sales, total Zeolyst $XXXmillion midpoint. between the be sales, For expect JV

free XXXX of of consistent through million. quarter At EBITDA. quarter with costs, With the improvement cash adjusted context, or XX% XX% chemicals pass-through first EBITDA XXXX the business. on million have which for million impact to with $XX to over higher of first between sales be higher anticipate would sulfur generated XXXX, are fourth flow improve compared the contractual is points, to the as the quarter a between to a be from $XXX further $XX business negatively the XXXX. is comment the we but the adjusted adjusted margins as respect $XXX the due negative recent next XXXX, Capital million and forecasting XXX the projected range costs, $XXX adjusted quarter To not prior Xst. that with We growth between August EBITDA cash EBITDA comparison of year, remain expect expenditures each we and and of And in to anticipate midpoint. which a we performance would and robust expected to let to will spike by adjusted at $XX year, in impact is over approximately dollars basis Cash-generation $XXX of on provide sales of me first million. a sulfur included up midpoint of this reminder,

expect quarter of adjusted slightly Catalyst input down the and of First, quarter higher sales in fourth in we XXXX quarter of be by EBITDA to sales in Technologies, we the driven the to and slightly first of other quarter fourth costs. sulfur Ecoservices, In XXXX costs XXXX, than first be to higher estimated XXXX. expect the

to acid than our to fourth of costs. expected is performance between timing businesses due In lower and certain lower financial XX% the and remarkable sulfuric the sales be manufacturing in expected EBITDA adjusted delivered quarter However, XXXX. virgin planned spot XX% summary,

to great has fundamentals portfolio demand industry drivers. growing with ties Our

place We supply We inflation finished momentum positive growth. carry further look to back have XXXX through against help the the With the as in protect and turn to that, structure I'll forward and manage call we year to chain into Belgacem. the expect strong to disruptions.

heard Thanks our full-year and as fourth-quarter story XXXX progress. Mike, our positive performance, for confidence for XXXX, our outlook as strategic strong the you well

to a like I'd key takeaways. summarize Now, few

at we First, time. the right the right strategy have

around strong growth. our Our energy and businesses secular are clean transition which driving accelerating the trends, are aligned

our entered in we in markets strong financial our momentum XXXX Second, core outlook. reflected with XXXX

proud great remarkable now up XXXX. take the our We're team your to concludes a of delivering questions. us Ecovyst for entire formal This a and doing of to well-prepared offsetting great while and I supply for grateful chain issues, finally, growth are items. And and very inflationary teams our ready remarks. Third, year dedication a drive the are job for resiliency and mitigating we am setting

our Morgan from [Operators Stanley. Castillo we And with Instructions]. question first Angel will take

strong and quarter. morning good Hi, on the congrats

just us, wondering a circle more terms details could through, back on cost. the here, little bit very a you in the to if bit give strong performance wanted more pass of price little Just

up. maybe is we And incremental any already that get much following to something out incremental get contractually, through think As other and into set you about be costs. versus not may to of that may million $XX directly and quarter there might think the cover to be is you should at you just cover, sure contracts about going to that price out think make as how that XXXX, to both we about be

Thanks, question. Angel. a great It's

our the costs about still they're still on those to from obligated, given the of though And XX% even other So relationships through. a capture not pass-through are contractually pass perspective, past-through in to Ecoservices that able we're just XX% ability have basis. we our

we feel that comfortable against that. really So we're cost protected like

In higher come on the at were there able side, the material of successful pass catalyst our addition, really working We that in quarter. year do throughs, aren't first on and side, any fourth and we've to - able contractual being And pass to with but is Ecoservices as well. in lot very raw to through that's to that but costs. been fruition starting this quarter the a the customers

ability and an very costs have period of inflation question really high protected. we those pass standpoint that any that the benefit of additional can do to take we comfort really from this So in your incremental from well outside a gives we're us to contracts and through. That lot of

we little bit think commented I a on that. XXXX, For

has again, on our Some dollar XXXX no It impact versus does pass-through earnings. for to but do coming impact in And those higher it costs of dollar. it's overall our it through, sulfur margin expect XXXX. be is we

the year. think They've here even happy I the very only the for a but material Let pricing and Angel. in the to 'XX it's me focus catalyst They've done on one going technology. it's contributed side, a momentum most Ecoservices, Yes. aggressive extremely adjustments for And be catalyst beneficial to on component numbers raw and managed done pricing that campaign this will add be they've long on also up beyond. and the increases. -- indexing I forward value but pull not price time. in us we're team a with as picked very to and comment on has the on well, That mean, All

front, forward? catalyst I a to expect share how Understood. And more the seeing. year you interesting the to this it campaign bit aggressive noted the driving what side. through is go as It think recover to should of What but colour little polyethylene cost, and of we to you proceed -- some have on the on, will it this, also kind you're going gains market was

years We're we've been modified. processed, our on some Silica gain customers. working new get of of technology. of the Yeah, catalyst a while for with sometimes the share takes on beginning to seeing process penetration The accepted,

improve. technology gain that of market we believe we And And the centering better obviously, new explains to why And is something market share reason technology but is growth quality new to not volume the from only, necessarily the continue. in And technology is perspective, so from outgrowing are pricing. also continue we lot to the new and now coming earnings expect a that with well-priced. a catalyst going

Thank helpful. Very you.

Angel. welcome, You're

take David with will Bank. next I our Deutsche question from Begleiter

Your line is open.

cap allocation morning. debt reduction you. Good Can you of aspects? discuss your you. priorities Thank other and this year in terms for Thank

Yes. shown we similar what as able significant down is our XXXX, for mean, we've guidance our still what cash from demonstrated our can X.X We allocation both leverage well some were is in as to process in Sure times. to before. next flow shown capital generate David, we've what that I we've reduce ratio year. pretty

or business we linked acquisition just and prepared businesses. something Those last reduce that leverage, accretive with as to continue to up as debt, to flow, strategically bolt-on leverage, going to can for be going we at to pay our continue be or cash to to strong opportunistic that So need similar our ChemXX either that's we did down the our we look to we're look in generate look come to reduce year. continue acquisitions the

down to continue go we that process. So

of and earnings those Belgacem, guidance. improvement looking for in can discuss you. beyond the you just QX versus Thank kind QX Very against of good. full-year And cadence you're and

low terms over -- give you into of delivered EBITDA, the some colour. second a towards a more can emission HX to half saw comment the performance continuous in improvement year, HX and control. level we first strong of delivered Everything high a We XXXX, and terms there of perspective. XX% give Last the half. polyethylene, little going And then a probably from is in and a growth went unique of bit we Mike recovery adjusted hydrocracking, of I'll of set tailwind, forward guidance. a forward a recovery is moving we our exactly market, happening recovery recovery and

cadence and on see strong and quarter be was QX was QX, QX This forward year strong, see a going the into to we a way stronger be a sorry, we year. strong strong QX, The low QX maintenance the a a it's slightly is to granted to -- to stuff. on last cadence little QX. seasonal comparable that, a We which improvement and based this some bit indicates The feel. typical to QX year. events slow the QX and that versus of but all freeze QX end a smoother going some a gave had all of guidance we're you quarter of the Mike going last how XXXX We're the all and lower the year, work

year. QX we're quarters, QX so to going expect year and the cadence this So back great of for the do typical a we

good. Very you. Thank

Mike.

course, a was of out then year, Yeah. and COVID and The that if smoother. at strong part to throw last the second but the as that seasonality the would is point, you where just that of that as you not at year with somewhat businesses then the do thing is little add a obviously you more with if the XXXX, we be to look as half, of only early look back year Ecoservices at Belgacem's catalyst have look going being the a little I

Great, thank you.

Sure.

We BMO take McNulty our Markets. with next Capital question will John from

that's this hope on for right. Caleb Hi, is all John,

Caleb. Hey

taking an projects commercial I progressing if the update call was just projects through those eight on question. then just I and how new when last earnings walk wondering was online. like you see if comment did give you on, coming was for Thanks on those us wondering my you are believe quarter you could I us it and could

which Yes, to we introduction commercial. projects have year, want. Everything the as exactly bunch the of regulation we that quite a will shifted answer focusing to you know as this new means focus technology emission changes, from on is a questions control bit and projects We going others, around have along of the the of exactly areas coming we for second in year. we're come will planned. have catalyst the renewables. rather, we and about coming We of more excited plan has towards the Zeolyst of polyethylene some year what's the Everything and executed as but see that should Caleb? following related half

apologize. I

I was that the answer. sure Caleb going make got to

And PJ we will take our with next Citi. from question Juvekar

is line Your open. now

PJ. for morning, Hi, Patrick Cunningham this is everyone. Good

Good morning, Patrick.

trying technology -- potential I exposed and -- that is it just guess this and markets are which had a the there. what to is where your how of from you you kind question question I'm play, understand I what I potential had to a forward? product offering about potentially going plastic areas differentiated circularity are upside and

fully And we about. from the we testing plastic as 'XX the anticipate start confirmation. in volumes the anticipate circularity as We did coming others. pyrolysis process. by really excited a commercial said with is that some testing in has testing you the proven Thank pilot technology, do into the plans to that beyond say and start our line for of go having some that question. seeing And we're in lab that have play advanced before, pilot pilot to the going into been believe -- technology into unique we that than Yeah. volumes going our that the are customers we and before approved a with customers to the more 'XX we're for first-comers We or we

process more most which that it's favourable can more right the -- at I now. That's with So going two pure favourable least and forward become seems aligned lead we're pyrolysis, more and say. to the the all customers in are

full want a going, a making the sales then synergy any on it's XXXX would That's and helpful, capture, helpful. just really just maybe progress year as had -- overview. be there one, the update sort you And high-level that just thanks. an get almost of how have on how quick integration Thanks. hoped to Yeah, from the you the detail

our well. smaller honest, has our be technology by ones. in We've one capability delivered customers. It's gone of well. demand, everybody, the process integration past, done to we're sales. the year-and-a-half looking at 'XX and including It I've on high is we've so done expectation our and but go to integration's we of team technology can increase beyond has best been that the XX% of for this I that. increased the two the to early believe maybe lot really really overseas that we because target well in own least accepted we acquisitions, capacity our Personally. The the years beyond ones the increased To process. is ones, We've if was 'XX end debottleneck and expanding the increase at see capacity, a before now going well

we how are it. about that's excited So

Thank you. great. That's

You're welcome.

want Aleksey we to KeyBanc. with Yefremov take Now from question our next

Your line is open.

you Ecovyst, this you on us and Thank or business any have just pyrolysis, is let's XXXX some updated could view you for you. year, maybe, how say Good relevant. morning, gave be by update whatever do large everyone. Belgacem, on feel

It's but preferred we're the It's now. think doing? is We tough in pyrolysis tough size, one position right a give the Aleksey, processes. leading how you of are to

or runners The than circularity to be in fast is sooner comers. recycling is go market know, the immediately. But mechanical the with we're of or later. we going working first going are other you processes. got several think out component away recycling And We not to

we're to very 'XX for beyond and on in the the increase be be excited and half going the we're a important And build, we're that's So volumes in but it, it's going a that of it, second to 'XX curve. quantify of but can't us. -- decade see I good pretty we're accelerated think an going the excited slow ahead I to about business

gases, before this think margins On you Belgacem. you, higher margins I year. Thank saw

from at margins level or capacity 'XX? years. this I any tonne the here beyond year perhaps or per three the elevated And next you dollars this per as have you could higher two, tonne margins on horizon think sustained Is level that new see competitors well. over sustainable is there next

margin. we First which of serve -- We takes -- up. industrial of it in chloride, We set tires all, component component really diversion the batteries, to are primarily the our margin, three and We like pockets the market, XX% the XX% up the nylon end mining. serve that's the of of which half we also fastest-growing asset; our let good market in construction, of sales, good of serve probably recently, packaging me a at serve serving uses. steel, is into just is of market, automotive maybe at sales decent chemical, alkali, the and part

serve some ton two as of Europe the we decent performance going area grow price is -- of a for sulfur in is rate we little performance to measure copper. able acid tons bit actually could our But as in XX-X. Russia assets market plans could is rates, a nearby maintain to per the future. and since was to be lithium you of to As is Copper tightness from we first forward participate be protected after place. that need well. really next lithium. to performance, and know working margin do, here, raise bore measure know, is at in which the some Ukraine the growing the look you because fast ratio in the sulfur about and increase But rates the net project at we we you, exporter that what use see we're we're is and managed into pricing. more X% But to sulfur, of in which X%, and going how thing is X% foreseeable a probably at the we bore pricing, efficiently XXXX, you And X%. to the bore further X% And Today that X-X, them it XXXX Lithium to forward for our per least between ton. we're in

playing components so very the about we of part in the virgin and business. think the we is market, So believe that asses we're doable of we're the right excited

Belgacem. Thanks,

Thank you.

question next with our Jefferies. take from Alexander will We Laurence

open. is line Your now

morning. Good

the shifts for fuel laid clean of the regulatory and clean longer-term out you've standards You mentioned growth business. on past the aspirations the your in sort fuels

to to elsewhere, at As path that you be that it Canada is growth going previously just look achievable. in more those you does or incremental the that regulatory whether you confidence sketched shifts, or give out, path is

growth. Well, the we I more have implementation. the speed the say more incremental implementation if it's can't But faster, the more the incremental implementing and get on depending of the regulations rigor

those market at with go you So a and activity we're being bring talked when China what's handle overall especially the of temperature very on the going you in year going in standpoint for next about Japan, technologies lot will in right requirements there's to overseas look and or those I even some U.S. in regulatory market. excited in on that a able that in now, some two. expectations Clean the performance able into That earlier, unique about those what's to of Air towards Korea, India, if of being to of from the be

So it's if only with it's and implemented. it's those but China years been implemented for get regulations we supportive and it's fix sooner plus to talked not that recently direct got incremental, incremental rigor. has

not that is right our on plans gets they based get to incremental. hope building necessarily So we When but portion the thing the they do, be will those implemented. that do, implemented do

shape that regulations good to to excited towards initiate of Europeans and get those control. as countries we innovation excited we get we more So we're regulations. is in emission get really a we're other think implementing, in have those we're about I working I be as started the pipeline that for And going be mentioned and China to that the very rigorous

very great. Okay, you much. Thank

Thank you Alexander.

CL our from take question will Silver Now David next King. with

line is open. now Your

very you much. Thank Okay.

had I questions. So maybe a couple of

The first Ecoservices one trend within would the just quarterly business. be your

a Ecoservices out I that the a business difference was or if than side pre to business? asset overall metrics, out the levels. words, elaborate the strength how of of on comment little there the recycling, returned In called -pandemic Thank business. or performance the you less about, traditional volumes the in that the portion you maybe had a number wondering could there think a laid And Virgin of You I was maybe growth the still was in this just so did other virgin quarter? but strong, the side was non-virgin of you. regeneration the aspects on just

Yes, sure David.

driven, when first on the partially turnarounds go QX. in of business a that regeneration is QX side the Alkylate to produce them, used of that's say, also we one more little of the refinery that The to you is a If gold. service strong where fourth QX, demand of the down around A sides seasonality based very continues little That that the be the the more look very at and are strong. at have see as at the profitable miles lighter that's for our QX we that same the to we, quarter. then but market. And is help refineries services in for that's I refineries. and has their where mean, lot strong. as business, probably turnarounds that time the like than one and of liquid as look they demand still and It

stronger cadence quarter. region for demand third and the strong is is really a still So and second the

strong also compared last see to year. It did up quarter is Fourth a very compared we virgin, up For the fourth to was quarter. third quarter.

Belgacem we see acid talking and is for virgin used everything And mining being that continue and demand of lot to continued forward. strong about, strong nylon going that sulfuric a the So industrial else was in that use.

Yeah.

set for or I you that on new was mention, quick contract, Thank update had new X. the million more to two, in I I did that. I quarter contract, January on update to but think Could acquired just the that? that forgot but the want customer kick a you discussed the $XX services new Okay. off an I get believe was that revenue opportunity last

It's in actually, up and kicked December, It's running. off David,

just to quick liquidity December. for release, about moves ago, is did you've you update want yourself Thank plus And opportunistic. look a ago. about the of to talked few months do ask you. growth could desire liquidity. any the your that then we need relative I to I where three in your anticipate mean greater make I months a on remain total but usually number liquidity and XXXX? opportunities, areas, a in other some to to ChemXX get give

so? to -- current or Thanks. or is year sufficient your funding So incremental easy for access next access liquidity the

Sure. Yes.

see quarter, million Our and million don't December. improved. over liquidity We end were the any down for XXX a liquidity the $XXX has little a road. additional need at third the in We of

have revolver, our and our with any generation I ABL strong think it. won't we our to cash with access issues that

very move And liquidity about, type have we at. those we're adequate a the So, comfortable ChemXX at with we're right position to if come the acquisitions make time.

maybe trend direction direction. on And your one in the recovery of geopolitics, predictor something of are sell or of have upfront I'll and a price economic flows products whether oil. price last finally up like upward throughout a question crude in continued people environment. customers oil that costs an but, the then the so worst world's crude But that for And the steadily the been particular, more continue year thinking it's am I has or general lot of the the just a about the in stipulate price operating through how to and might

targets? So I'm Can oil there's of reflect price how we're recession view a structurally and your how period assumingly provide? fuel versus view, time. or value the Thanks. ability of to higher steep not business, tends do growth, talking the you on would line XXXX overall crude but in business placement, your some in think XXXX trend cadence customers for disruptive environment to higher makers refining XXXX. a -- impact a catalyst economic your extended in you other value-added about higher How Assuming kind your crude value environment, or hugely we're or back of an impact words, how the event, other the but you catalysts that of meet much that

gas, level, explain probably will energy both that What an extent is our the matters refining terms we and -- from David do, which sales, the customers. maybe oil matter the question, it's speed Maybe that a perspective, they a we and are impacts the environment refineries, deal. a not -- our making certain in in will be areas. how a bit. of crude indirectly predicting positive for of we little I'll just That's little matters it is, do our rank money. very volumes or deep and but that oil business price not bit, regeneration to this of some crude The miles provided oil overall. But the very I run acceleration frequency This costs so matters refineries activity could behind of overall, The both six the -- period cost impacts you in pretty look price. myself impact three-month a going months impact deal a a short bit positive time when change-outs, it's driven of a to little driving, at

including is business On and level our for is and the the the of sulfur, highest the that gas pricing side, raw material, energy, second our manufacturing materials impacts raw gas energy then assets.

sulfur it, the these Ecoservices, be little and to this and catalyst could also the going on bit the excited an We're covered have the how to of are from things case, operate there $XXX concerned when few did a outcome will prudent drop in are only We everything getting but our Maybe and about a We world could we customers the be good. perspective there as here than the is not the impact the growth which business, in and which we like the we're any a like going gas like rest the themselves long this to from refineries, it out not event we're business energy speculating. we GDP long perspective but in positive, long pricing be. not board, we're who to we better across a other as about pacing in We're it the around go to there I business activity And expectations price plants is of could is the going know when see stays help more $XXX in not could But be, past. which $XXX, the is expectation ability more as because to and upside, increase, then with price don't always people well. it's some $XXX, believable, energy up reasonable decent or also as also perspective cost but through which as too not changes energy. increased credible, about changes if directly check. European or case, an material a that's are raw helps barrel, doesn't most linked pricing pass in concerned good people if to which David, the within increase. knows

of right. I for know that. Thank a but that you All your that kind you I appreciate PhD was thoughts. question, thesis thank for

welcome. very You're

this the further program. no conclude your time. line participation. for on today's you have This does Thank at We questions

a and wonderful at have time may any You day. disconnect