Ecovyst (ECVT) 2 Nov 232023 Q3 Earnings call transcript

Good morning. My name is Travis, and I will be your conference operator today. Welcome to the Ecovyst Third Quarter 2023 Earnings Call and Webcast.

Please note today's call is being recorded and should run approximately 1 hour. [Operator Instructions] I would now like to turn the call over to Gene Shiels, Director of Investor Relations. sir. ahead, go Please

Mike morning, Call. to call With Bitting, Officer; are Good Financial Quarter this Ecovyst XXXX Kurt and Executive Chief Earnings me Ecovyst's Ecovyst's and you. Chief the Officer. welcome Third morning Feehan, Thank on the

prepared in over be about we'll risks of take remarks company's our and end-use and shared Any of Investors information of performance to the release this some company's only note corresponding anticipated your call forward-looking is vary morning, SEC. Reconciliations shared These the in trends at strategies, information filings found non-GAAP is the today financial actual the financial measures the of measures XXXX and website the today the our the to the call GAAP as in this information, our implementation with speaks materials questions. Please forward-looking that that with Following their of section including outlook. This information presentation mentioned the to risks Bitting. financial uncertainties results information date. demand our plans earnings materially. the today's cause could subject Kurt turn in posted and now operating are discussed can and Ecovyst.com. I'll company's

uncertain Thank XXXX. an of third macro Ecovyst's morning. quarter environment, quarter. results you, Gene, delivered the an I the third and and Ecovyst with performance Against of in good am pleased evolving the for backdrop solid

differentiated emerging products and Ecovyst key and expansion zeolite as announcing a Kansas major plastic Catalyst City such our to our our highlight in also initiatives, program, rebranding made enhancement progress areas reliability operational good on several renewables plant, and launching strategic circularity. technology for our including Silica

end-use rates services. our for across the regeneration third exposures our demand utilization our customers In quarter, our the Ecoservices refining for continued During drive business, high remained to of majority stable. demand

in industrial of provided in While to a a acid of exposure stability business, the virgin broad quarter. variety applications sulfuric our level our

However, acid quarter early second earnings sulfuric in nylon sulfuric and quarter of other in as our weaker utilized and caprolactam call our for reflected of August, oleum anticipated virgin acid grades production the third of demand on sales intermediates. high-purity

as For the polyethylene third catalysts impact to of weaker the demand due quarter lower sales polyethylene were in Catalyst global Technologies, ongoing of anticipated, and destocking.

the positive industrial in used volume XX% catalysts in were venture, ZI higher declines, of in in joint renewable and quarter. Catalyst sectors However, both hydrocracking of and demand weak third fuels. Of sales production on facing remained the and Ecoservices and to pricing up Technologies many note, the contrast sales catalysts over in

EBITDA by of was costs end restriction. uses, compared sales Third previously arising to at the quarter the decrease quarter site to and adjusted repair correct a $XX lower largely the with and driven nylon the and XX% in outage from our million, discussed maintenance, volume Dominguez down networking polyethylene higher XXXX, third production

fourth diverse for the and to expect the level will balance the a of we of quarter to provide end-use Looking stability. exposures continue year, our

sales for market on any into lightweighting with balance weakness virgin therefore, demand automotive expect production incremental the strike the of Although nylon for not material auto acid change for used and do end impact anticipate its now year, conditions parts. sulfuric in UAW polyethylene we we and nylon use, in the the associated of

turnaround Ecoservices our elected demand our virgin a quarter, in at of of one for planned services the previously acid sulfuric have for XXXX to accelerate XXXX. softer that was sites into light In fourth expectations we

to production align demand, could in our modest ability a with believe the that impact While for the this capacity sulfuric in revised have turnaround will demand more better fourth XXXX impact downtime step eliminate will recovery. on acid capacity virgin importantly, we expected for the fourth our production but timing quarter quarter, will address

which result decision, costs this reliability this in associated of the XXXX, net incremental expect will turnaround feel for year. to with As production a incur we we result

sulfuric costs full will further XXXX for turnaround $XXX range low now incremental expectations million weakness, the fall our anticipate virgin Given with of guidance demand acid EBITDA lower year potential sales, we at adjusted to of $XXX continued for that the our and the end destocking and recognizing million.

recycling, longer-term technologies, our driving and emerging of opportunities. portfolio We attractive renewable such outlook However, key end-use provide in as very positive. megatrends, unique remains believe growth and sustainable demand exposures the fuels stable future diversification our plastics for leverage

forward leverage growth opportunities look our Investor in November to We these to Day. discussing our strategies XX

near-term low X, gasoline our to demand support margins, our provide refinery regeneration outlook. our of to refining of conjunction high rates inventories for have utilization I'll perspective in refining refined strong for we products on utilization, services. rates XXXX, for customers. with drive to continued As attractive Throughout demand Slide demand strength more These turn historically and continued high

utilization Given third-party levels. customers, input projections at for remain expect based we refinery rates refining will products refined and from upon high our

for planned refining business customers the have our we into fourth of in regeneration customary take remainder and While XXXX remains seasonal XXXX to their for services turnarounds quarter, the for our outlook positive.

acid, For use. softer nylon near-term expect for conditions the end we virgin sulfuric

destocking anticipate We to believe its recovery in course. as nylon for and nylon demand precursors production for other improvement use, the near continue trough uses end runs nylon we conditions and that cycle or automotive with at are and and for production, end we the

fuels, increasing support, conjunction expected renewable capacity in And change-outs production see pipeline For used hydroprocessing for in activation our and high and renewable the Activation business, Ecoservices, utilization by hydrocracking aviation will including we business. production and fuels. Due and and ChemXX frequent balance sustainable more we fuel, this, growth to renewable the driven of opportunities capacity Catalyst in a fuels demand continue catalyst to attractive of that our expect expand. for catalysts expansion regulatory of order diesel levels the full with to of for provide production market continue conventional extremely by is with to

services preferred disposal for a as refining to Lastly, petrochemical strong alternative. see for treatment and continue Gulf we customers our Coast waste demand our

Catalyst to Technologies. Looking

sales in particularly and Europe. expect environment current impact to of catalysts We near-term reflect China significant of demand in the sluggish polyethylene the and destocking,

our polyethylene However, catalyst our outlook longer-term remains positive. business for

rates Relative global destocking polyethylene, growth and as in we differential growth demand support favorable overall represented lower the more for customized demand capacity design additions, in We catalyst are to in provided well cost has for in Middle America newer, believe to of sales. our economics abates. should where approach East, North recovery particularly historical

needs, supported evidence the is further Kansas expansion This capacity expected capacity, for As providing catalyst announced increased for commitments silica growth we expansion by an longer-term the site long-term increase XX%. customer in our catalyst project the expectations production that customers' City site's confidence our recently at of and by polyethylene project outlook is to demand.

sales the of of catalysts our Joint continue as quarter, and first in to we XXXX. saw noted, For quarter and third Venture, positive sales expect quarter fourth hydrocracking we into strong the in Zeolyst the

our dewaxing my in aviation used business, production continued noted growth in for process of our renewable of discussion catalyst of materials As renewable ChemXX in expect are production fuel. the diesel where sustainable the the we zeolite fuels and

our growth trends sharing Day for November. associated Investor We longer-term look demand and to more on our in in business our for details drivers expectations forward

to quarter over At Mike this third the results. call discussion of I'll turn our more for time, detailed a

Kurt. you, Thank

I'll our additional detail financial X. to Turning Slide on third quarter provide results.

the $XXX the lower businesses XX% Joint hydrocracking costs, for of quarter lower renewable sales Venture sales sales of share catalysts the from result sales, the the XXXX. compared sales $XX balance continued virgin both catalysts the of pricing Total acid million, for intermediates, used strong driven Zeolyst our including with largely was applications. of used higher offset were decrease sulfur million polyethylene was and of $XXX production. This $XX proportionate sales the and the of catalyst silica-based sulfuric of used million third by for the in in partially change sales to volume nylon quarter, and pass-through in in million Of fuel of for by production lower

outage Third EBITDA noted, from lower manufacturing year. sales with a as the $XX in along adjusted offset pass-through of compared higher million favorable decrease driven with costs, networking and the was operational impact by costs, the previously function networking of The the production volume, the higher quarter increased Dominguez uplift million and and was arising of margin basis costs by points third in up with prior partially for manufacturing July. The lower sulfur quarter costs. the discussed XXX adjusted pricing, EBITDA to margin $XX was XX%, associated primarily

move the the we As highlight the primary third compared EBITDA components of to next the adjusted slide, change quarter. prior year's I'll to in

third with quarter, second aggregate selling had year. As reduction lower sulfur was lower the impact corresponding in average prices. in of significantly costs, in average the variable prior the than XXXX in an million sulfur costs in a these Pass-through were quarter of $XX case of prices the

reduction cost in contributors the variable sales during associated sales primarily on the higher EBITDA. pass-through cost were no energy were and in pricing adjusted in the variable networking sulfur with higher on These higher lower EBITDA largest higher quarter lower costs planned offset the costs costs the adjusted quarter. a result maintenance. with along The impact partially such, As the had to of quarter. by the The were factors additional volume,

segment Let's now starting our with to turn Ecoservices. results,

in the $XXX with the sulfur for spot quarter. Ecoservices third of was million, as to sales the lesser costs the prior million by the demand $XX decrease that year, sales and, compared by million the the million occurred of from networking costs. was in intermediates, outage XXXX. $XX to and million lower of the balance lower lower higher $XXX earlier arising in change to in EBITDA volume sulfuric for The sales, production extent, manufacturing production sales in for average used to sulfuric acid in Dominguez compared quarter sales. Adjusted primarily quarter as anticipated decrease driven $XX was well pass-through of lower Third the quarter, Ecoservices the virgin acid the virgin relates the Of nylon third a driven

sales the third third of absence catalyst lower the compared of Catalyst the quarter basis in of the and were costs The margin was for partially increase niche XXXX. Silica XX%, the the Technologies polyethylene quarter demand driven share custom offset our down Zeolyst million higher in quarter. Total quarter, for largely third adjusted For sales on points. by was $XX EBITDA the $XX lower in by proportionate third XXX pass-through million, were of sales. costs, to million $XX sulfur including margin up quarter, Catalyst $XX Ecoservices catalyst for Venture sales Joint million,

reminder, of every certain be a years. event-driven, and niche X X sales to are custom may replaced catalysts As

$XX sales Third were the fuel million, Zeolyst of renewable sales in and hydrocracking applications. for XX%, used up catalyst Venture quarter million or $X Joint higher catalysts with

million the prior Adjusted $XX the $X was compared EBITDA for third year. million in quarter, Technologies Catalyst to down

and hydrocracking As pricing pricing offset of catalyst as continued sales volume, renewable decrease reflects as catalysts. silica remained positive lower fuel strong the the the in the higher well partially quarter, by sales

for margin Catalyst by by lower, EBITDA Adjusted higher pricing. mix driven costs, partially offset and increased unfavorable Technologies was

Turning to on provide leverage the comments cash next few our a slide. I'll position. and

to capital evaluate our deployment said, maintain of X.Xx key target to to a but leverage priority. as reducing will continue We our we allocation and to remains continue approach prudent opportunistic That Xx a be balanced to capital options. we

the ratio of a the quarter, third stock the of market During over quarter. net third shares of unchanged a ended We of amount open At position with the aggregate just from debt through we of of XXX,XXX quarter second leverage held repurchased liquidity we end $X an strong the million. $XXX quarter, X.Xx, million. the for end the

remain sheet From we in shape. a excellent perspective, balance

XXXX. of term maturity June have of We one with loan, a date

interest In addition, continue exposure. we our manage effectively to rate

have our opportunities debt And interest quarter exposure of rate We all-in with protection. approximately through continue capped of an extend we XX% cost XXXX, evaluate X%. third to our of to the of interest

of the of expect for now go use, most guidance balance some for sulfuric Joint of range, QX weakness for a Zeolyst quarter now into into demand modest of nylon for XXXX the environment of potential shift full reflecting XXXX. first the be $XXX from will from guidance incremental million for $XXX year an sales a We sales our million, the catalyst over the sales the Venture reduction range expectation and timing XXXX. to demand the to I end and our in for with soft acid virgin recent the expectations polyethylene

and $XXX Accordingly, expect million sales the $XXX for to Zeolyst we Joint full year. to the Venture million be between

to cost our with pull sales of XXXX year. into and that impact XXXX the sales the of In light EBITDA previous low expect $XXX activity be forward incremental of we now consideration prior full mentioned, is annual taking the Kurt volume associated expectations which range X% than turnaround at the year adjusted lower approximately at guidance into the million, and end

be to be fourth significantly second the Ecoservices of adjusted for we level, compared line quarter million. of at segment year fourth to is to XXXX. with the Technologies, expect a the is mid- expected Catalyst to or up down level to Ecovyst results. however, XXXX EBITDA similar digits compared prior the approximately At in Overall, $XX quarter, to high-single quarter quarter, to at fourth be expected their quarter fourth

In we highlighted of have continue forward. terms certainly flow, previously, of to and our the we for going historically cash has our as business generation, strong this cash provided expect nature

of are adjusted we prior XXXX expectations mainly However, EBITDA. Joint Zeolyst expectations due a of and for year, modestly to our flow the to extent, the cash dividends revising our the to timing for free end revised Venture lesser from lower

fourth prior hydrocracking year, expect in within discussed, sales the As up fourth And to catalysts for XX% Venture, anticipate the full up year strong the to previously Joint to the year-over-year. of quarter, be we close close over Zeolyst quarter. XX% we

visibility of now Considering timing, these may in into in that late may normal have expect projected we receivable XXXX. sales early the sales, we of some As occur timing fourth extend the quarter gained occurring sales better late the very collection into quarter.

timing stronger sales first sales. fourth suggest quarter hydrocracking of the build In that for a further larger hydrocracking are of now into planning strong inventory anticipated first we insight the the advance XXXX, addition, with in in quarter quarter order in

for now associated expectations of the to joint needs, timing build The received the receivable dividends revised inventory fourth working venture. quarter alter with and the capital timing from the expected are

$XX and be now we result, between million a free flow $XX million. cash to As expect

cash with Venture in we Zeolyst related, benefit the flow anticipate entirely a in Joint reduction the comparative from generation timing the As associated cash dividend is XXXX.

of light a generation, approximately assumptions year revised we end net leverage with ratio the In cash impacting expect of to debt Xx. the

some I now the will remarks. to Kurt hand call closing back for

for Overall, the you, are quarter. our we with results Thank Mike. pleased third

macro an positive and a uncertain in level end-use Ecoservices diversification pricing provided environment. Moreover, Our both exposures of remained for stability Technologies. Catalyst and

of demand weakness for acid and lower use the saw in which much the effects of with as nylon for we near-term specifically is the into third quarter, expected, we transitory. end associated While the polyethylene destocking, catalyst virgin believe sulfuric is

following and balance and year quarter continue the of predictable the of the regeneration second the services first expect year, from year, and business, the strong expect XXXX. our sales, of half hydrocracking have quarter throughout with this for performance the For we robust to expectations consistent third fourth stronger had quarter of into we in we hydrocracking a sales catalysts

as see macro capacity continued for the so near-term recycling, We cleaner and growth plastics enzymatic Despite believe for Technologies production for more polyethylene, uncertainty virgin many sulfuric processes. fuels. such we catalysts And demand the used remains expanding for in the business well we alkylate plays fuels technologies for positive. role in our processes. given our which environment, in the industrial fundamentals critical We as essential our acid it longer-term Catalyst production is efficient that emerging business, burning, see driven business, Regeneration as by the growth growth, supporting production ongoing renewable in of extremely continued see Services demand is

end demand near-term concentrated for end The whole. our users as primarily those or has altered in for specific our growth longer-term softness, uses business X not expectations a

November. look the our detail in at of Day to strategies We for shareholders and benefit our demand our discussing Investor forward deliver outlook our in more to value

I the will to time, questions. open this At line ask operator for the

comes McNulty, from John [Operator Instructions] Our first question Capital Markets. BMO

as full in quantify outlook some year you couple you to turnaround outlook; total as that us impact I would your forward, to XQ pull it? it. questions. guess want the incremental cost One however, to Can I you help or what was put So were said to a there your had of be, far

Sure.

our the when nylon related think I segment corresponding is kind of we it -- versus turn previous the it in downwards would that and to UAW the kind then well. in due walking look as on guide and costs slowness we about that about turnaround strike, the half to it's the that the saw to of now, half about guidance, additional at say of our of I -- of adjustment midpoint back

if looking consider forward pull I back volumes slower So with at that meet the our of or turnaround about demand. to production half I'm nylon and would of to nylon kind the walk that it, align of

Got it.

Okay. cash a enough. on Fair free the flow just question Catalyst And then and the Zeolyst change business.

sounds that So But maybe I confused to are me like guess Catalyst year flow it things out it and receivables there? shift late timing, cash bit out. wasn't some I where guess, business, completely can the help because just the around are so you you as But that it. the -- little understand of is I side? push come earnings some I Or pushed or something missed next was some in maybe in little maybe quarter, I later of is and bit on it going -- to to the clear is adoption to, did a a Zeolyst really the in

John, on earnings a side, next the Yes, right? of hydrocracking all within Mike. cash. quarter Yes, sales of saw it's quarter the into concentration first really and high We no the change the year. in It's fourth

period, So significant. over X-month a quite it's

also X those the things. for nature build So QX in an when just those the build that through. of higher more Not timing One, comes year. some that of but really out there's sales of inventory challenge, collection receivables. sales have have impacts next of and to those the more And go we it a collection timing of to does when of

is of comparative all in year. expected next us to benefit early this timing to a have So

ZI... So just flow timing the between cash on X from dividends years

one anything than stronger coming just really some in strong because maybe expect sounds demand like one -- last It sounds may be in in Would And you it you that's thought got XQ. enough. XQ. like Fair it. that. you've Got on

Can be it us, be at based to higher? to you would XQ as we Is on see least level notably just right How high at set, XQ? about now? you help should least it, thinking going what as you characterize

would it's QX period. Yes. really -- we're -- between mean QX, concentration I not say well a X-month high what but and guiding I very is to the period QX

QX across than number We John, way I'd period the to a at I don't that I time. it's higher Mike but concentration yet, just -- the would you, So for normal looking as we're what is it, high -- quarters, very that during have exact a of it's explained say, think those X hydrocracking.

Our Aleksey next question comes from Capital. KeyBanc Yefremov,

had X, Slide quarter? just on sulfuric I virgin that third acid follow-up to bit your a that compared this getting it fourth a for stronger sequentially And greener. mean showing business is getting you're arrow quarter the to imply in does an little

Yes.

I think -- stability we what across end diverse that's of saying acid. a of virgin we -- see group is segments we have across -- that set the diverse serve

Where mining. in strength we see had nylon is struggles space, we So right? that

So hitting our I for we're of, right? that turnaround. say, and to its And would seeing production pulling that kind trough, aligning accordingly we're that

towards some of our like that. if comments, customers the are now further into diverse. industrial or of anything we concentrated that struggled -- spaces, macroeconomic we've the would view you the nylon would that area is right cause stable. headwinds to year really our in The is But the that there do heard market we So one on be remain the other accelerate segments virgin destocking in cautious very segment, and end pretty as

next for you to has years, polyethylene, can has you I and rate about you question. How you few your of of couple have mean, Okay. years in longer-term win over just been visibility how polyethylene some talk business? talk a looking us kind that about a about Could that? it anything wins tell And the in then right? And your used extending lately? longer-term how -- catalyst

and the that that quarter. I announced can thing the think expansion really we best evidence that is Kansas we say about of City this

X the will So happen that expansion over next years.

is us, the to been to meant meet given out of towards to really that period. XXXX, which past it that online that are customer expect end commitments right, time We come have

by our win that the and really confident long-term installing customer to and long-term future that business we're rate, commitments in we're capacity So meet backed demand.

Deutsche comes Begleiter, question from Next David Bank.

[ nylon? This we're What cycle David. for ] in in is Anthony destock would Mercandetti on this say inning that you

really really We in we for by the this beyond of That's a that regression Anthony. the not of question, that the the was see UAW that end cycle. do -- aggravated we're that of more trough this we're We can't had guidance we of lot do but good a segment giving kind it year, strike. believe for in obviously, year,

at expect during this destocking will we that cycle trough this quarter. the So we're then the run of -- would the and its trough course

pricing Okay. early we balance on demand and And then, markets, think given certain let's end into say, what year should virgin sulfuric you're acid how these the seeing on about through, of in trending the 'XX?

the pricing think I sulfur pricing. sulfur is to Well, the related first is Yes.

to see on sulfur at So pass-through. -- will material in we a customers XXX% our that did pricing, will the which basis cost we a pricing step-up of through that so passed rise level, raw

A high a then But we contracted. of amount contracts. of high our is business also amount have

have don't X, is contract. contract point, office changing amount a price it of X XX%-ish of we material longer-term any that's around at X-year So or long-term most even a X, under given tremendous

for and Okay. just me. -- last And then one

of just into uncertainty environment. a lot 'XX, go macro in global the we there's As

just remind growth a Can environment economic business of underlying or recessionary the us, how earnings think you environment? power this in should potential we lower about

Yes.

quite feel of and is time cycles. due been So for Mike uses the diverse sets to -- pretty well down And cycles. is economic the and services up resilient some a bunch the business its whole, we the through we've it myself business that -- end market as a go with and couple through have of business and us, seen a management team

which generally next All with look those I'll octane. positive cyclical that and to value year largely refinery business, linked regeneration the all to the into economic headwinds. going point things utilization, other is not you macroeconomic of

forward Obviously, should metals remain green firm. us. minerals with large for going another infrastructure and the segment all for and for electrification Mining, demand

a position, we also and business to and sold-out continue. Our in treatment would that activation expect largely services very are

from continues become -- larger up to any the of pool renewables should finally, right? production macroeconomic going headwinds. to by moving more As grow, happen continue then light a and grow, share renewable to XXXX. And that space level That eventually continue X% distillate overall to gain of a to in fuels is the

question Citi. from Cunningham, Patrick next comes Our

is ] [ Eric Patrick. Zango for on This

With the anticipated Catalyst about XQ see sales for of catalyst stronger a margin whole? Technologies in hydrocracking sort we And should there? should think in as uplift 'XX, the how we profile what

used say, It's a really X-month So QX, come clearly, the is that little for visibility the since for we're XXXX has order terms cadence orders, QX. We're bit year sales changed see because for we pandemic. much concentration I that changed kind of order would for has of Eric. full some not pandemic what be more of to yet. I'd guide, turnarounds, of hydrocracking we it position realize of say about pipeline we've have don't in the just really full what in change, really, a the the what expect but And and stretched on of right, between year There high we mix in out timing hydrocracking pipeline of in the product to to period refineries. then that can predictability, in at the

it's that think I later right we have said, being high 'XX. repeat concentration going have that to peak we're or sometime X-month quite that mean, period I in we've clearly a a a expect cycle not yet. That we itself had during now. would visibility high cycle concentration So to this don't

is it. to Got last is Okay. what my backlog control driving ratio balance in emission And build the catalysts? for question

sort right? So on And and the vehicle, pandemic, out is shortage, for that of high was tremendous a there period I demand hangover a mean, the there in backlog was heavy-duty during went of thing really of trucks. pandemic. that just that for segment a the coming

still auto order what's So industry. backlog, to similar in going that they're through the working on

really So 'XX over backlog in and the and shortage it experienced 'XX. of chip that just supply whole was chain hang the

BWS comes Financial. question Hamed Khorsand, Next from

was just sustainable occurred? the you that off, as line. special How So far first forward? there going that QX there on as SG&A savings reported is And any and in what

Yes.

really adjustment was there. I little in a some compensation bit think the employment lower, SG&A because of

So little it's than quarters. a probably more other beneficial

can -- like magnitude? drop from provide QX of you there mean, bit I quite was By a levels. a some

I Yes. mean dollars through flowing be in there a that not million were there's recurring future probably couple of would quarters.

impact your all was, nameplate other and that hydrocracking that 'XX, And for would you for how commentary your around usually your capacity my in QX, into of question contracts 'XX? enter

Hamed, doesn't the customers to going impact our ability XXXX. it service into

that going I it's a build -- on which mentioning orders meet on the QX material that a we quarter sales and was, that large and now think a out. had, across what of concentration is have big call in the right QX, a Mike inventory impact period, going was X-month to span there's those heavier high of volume

that schedule. assets required production our but the have meet to production capability -- So

be there'll there. no issue So

from comes Laurence question Alexander, next Our Jefferies.

for Dan Laurence. This Rizzo actually is on

about forward. thinking going Just pricing

thinking been into we your strong, was destocking it's I given just what think you're going -- the on, but fairly I QX as the XXXX? about thinking volatility, in and some given head it of just how

obviously, is -- a service business again, diverse the of set very so end uses. is Dan, the

look long-term you agreements very regeneration, are the I'll that if are portfolio, those at to are So renegotiated indexed, point intervals. at that long

we tend So -- our that, purity we acid, to the customers where sulfuric can about the But high our to be the the require to industry, on geographic that expect, be areas pricing of specific locations. similar forward don't going acid, more a the because story, feel of long-term short-term of refinery in it and right, susceptible the or lot again, whether good of of destocking. one more the given strength the can those utilization these utilization state based -- that or longer-term refinery just it's due agreements. Virgin the a agreement situation of nature that the on nature

over the customers say, And up to their Both a moving plants' a as, orders the those of Hydrocracking, ] the with sold is the really driving well only very there, product sticky are [ the I'd of it's catalyst polyethylene, then based percentage done as value right? are and oriented -- And segments areas. those the with is really chem -- generally basis. performance, very small on it makes refineries performance cost. overall pet or being on

So associated that. pricing with the we see don't generally pressure

can't So of some indexed accordingly. some but are obviously, are the made as things to the I around, pricing one raw adjustments things those -- know, of while think materials you move change,

Our next CL King. from question Silver, comes David

points out advance, step Yes. X here. I'll apologize have in at X or I to did

So if I -- you repeat apologies if I yourself. make

guessing, did the outage, -- were some Dominguez economic words, there a in I discussion But impact of don't third maintenance, Regarding the lost there was of way results? So repairs any and your you the quarter Dominguez the on about third insurable. any that that kind if economic think was other the results? of quarter I'm on -- of to outage some there of was impact know volume. was

I and at since the and July would a it's that what again the running outage, made put restriction to end been Yes. correction, production -- down took we was the that. plant Dominguez of fix

associated we to repair million that's July, network you in had the had look as it move probably customers. the was between our that the in range, cost product if and to and those production to around at downtime and So to networking plant, costs impact the service $X

or this, And -- concentrate year directly could for done. Can advancing then somewhat throughout turnaround that remind And the turnaround turnaround. how you words, the the companies of of you and are but companies I'm have the throughout if when some in I the of just sorry, costs discuss I all In timing costs accrue already but think them a quarterly is other costs period year. about costs that? is of some Or don't Other work similarly, recall this fourth you the out recognized? just fiscal I be the putting quarter? kind been in me should 'XX, would helpful. of mean, pulling the that,

David. Yes,

when time, it. so when at as the also there's additional capitalized start we costs, components of first, turnaround turnaround do capital costs, the for turnarounds, generally But as a we to the down component, extending units really certain There's X bring expenses. And it. we part are useful life costs incur So same turnarounds, the really, these we of right?

we here quarter pulling to turnaround So forward additional QX. expenses into through into put the that referring fourth the what we're that are would by

should I versus capitalizing costs clarify Yes, expensing. Okay. also

question. Last

looking or outside holding, You million just did one from those I if offerings a year mean, of X really couple And shareholders, repurchase mean, of large you some quarter. hadn't any repurchased I secondary shares think, think, shares large still your shareholders. I I I'm And something. perspective, by the shares this back of

Or this due purely to I in is desire moving and how we about forward? So buyback was opportunistic? kind it options offset to the maybe mean, particular, think the quarter issuance? should share activity a of that,

Yes.

So I'll just start, really.

leverage that strategy long is Ecovyst's our going to capital said, to that X -- and so X.X being be balanced right, highly term is strategy capital allocation to our focused allocation get goal. That flexible. long-term into right? is Our that goal, range, And the on

a to level share when reflect So low quite has opportunistically, price repurchase a of company. value doesn't or -- will we that the low come and fallen the feel the it in very we shares

where of did did a thing. kind similar in And have we repurchase we XXXX

materially just here, the going $X to to million Xx repurchase which was leverage put really to it it in goal. this of needle not move reach in our terms perspective, So obviously, X.X it's is that ability to of cost, around

queue further in at the We time. questions this have no

any the Earnings Thank and XXXX This for Quarter does Third Ecovyst you Webcast. Call conclude and time. participation, may disconnect your you at