Ecovyst (ECVT) 1 Aug 242024 Q2 Earnings call transcript

Good morning. My name is Madison, and I will be your conference operator today. Welcome to the Ecovyst’s Second Quarter 2024 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 hand the conference over to Gene Shiels, Director of Investor Relations. Please go ahead.

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

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

solid we on you, We second made our quarter forecast, a Thank delivered our initiatives. are of number strategic financial morning. and progress Gene, results good we Overall, and XXXX. with of pleased for the results above

higher XXXX. with advanced year demand volume sales The of of treatment And continued also strong chemical services virgin and by Materials to our increased second XXXX to for we quarter. catalysts. for ago the the of economics refinery quarter, compared see and on to of was volume second up favorable regeneration in Catalysts quarter services acid compared to the sales alkylate Advanced and look the regeneration segment, utilization silicone During sulfuric Sales high compared for quarter supported

in EBITDA delivered saw the fuels lower applications. materials for we sales million. emission production $XX control in, quarter, of used All adjusted sustainable & of catalyst quarter, the during we However, of second the

of polyethylene total the the eco terms our progressed work for we quarter, shares half end our Ecovyst, Kansas of in positioning X for capacity year. allocation, of common at planned the catalyst capital was quarter. May, Ecovyst cost By successful the had first also expansion In production repurchased strategic million. a $X during also completed site. approach of our for we turnarounds the services of a City very the stock continued to balanced of it The Reflecting XXX,XXX

be leveraging week, of our and In Powders, heavy-duty strategy addition, markets. scaling as us growth this economy emerging hydrogen support a fuel can of growth widely through produced access capabilities expertise as material is company investment support we we investment, we as green industrial transportation for position to gain with and our with supports and in used Through hydrogen and hydrogen fuel believe carbon Pajarito equity will catalysts in culminated continue position cells. announced we quarter technologies transaction to applications. future as This last and and for a stated low science consistent work we in participate the in that electrolysis during an for believe to our Ecovyst for

and the of which and rate our of spread extension extended Lastly, amendment maturity the facility reduced during until of June sheet an interest strengthened term the quarter, the we through facility, our XXXX. balance loan

that strong year. margins. refinery persistent a Ecoservices, to and turn we will near-term demand Slide forecast rates high remainder by anticipate outlook. regeneration treatment demand, X, catalyst afloat and discuss continue throughout In We As we I'll healthy the services experience for the demand utilization favorable regeneration, our activation anticipate to driven of

high in serves the manufacturers, volumes experience utilization a Our producers of XXXX dip to as management continue anticipating Coast. for the sustainable diesel buoyant Gulf Treatment waste a are a along to despite Services rates segment as solution the ex-situ chemical outlook And catalyst is among which it to contribute to numerous half activation, in renewable observing a year. latter for we for rising is expected need expected

XXXX. nylon in nylon we remains For and and increase virgin in expansion end we sulfuric use borates projects virgin with of anticipate subdued, inventories positive a the though a for copper mining acid copper acid, North by stable expect And demand continued even sustained demonstrating America mining of normalization continued industry's for the rebound year-over-year sulfuric sales demand demand. in

For range sales, uses, into including water a the sales packaging for of treatment, spot various and a end chlor-alkali chemicals, and second end have half acid we view our demand and virgin remainder which wide supports adopted XXXX. uses, conservative sulfuric of more pricing the and of of industrial paper

Catalysts. advanced and to X% Materials XXXX. Advanced is silicones, global be In to to Turning in polyethylene up X% demand expected

vary with to continues North continue cost positive North we approach outlook the expect costs, America, in rates Middle advantage to demand Producers is demand geographies benefit to polyethylene these sales lower operating exports. expected demand energy a we have concentration supported to and in by XX% geography. and as In disproportionately recovers. East, have the feedstock by America with where global However, and

rates as reflect of customer relative our range and the XXXX of Asia, well with upon XX% but to operating continue dependent supports low to flat in of for also and catalysts to sales approximately up demand the as demand increase sourcing in decisions. remains expect be Europe magnitude new lower to inventory XXXX, Overall, demand polyethylene global rates online. the conditions with XX%. come operating continuing capacity we And continue subdued in However, projections and

used application, now led year. in Venture, half sales weaker demand for our second production emission the sustainable has materials revise these we catalyst For see uses to Joint us expectations in this Zeolyst end of control for fuel and the and this

this renewable phase we licensors diesel quarter, reminder, production, conditions to and sustainable is dewaxing and over sales of Market that and a customer sentiment of course production. for technology. our the materials are leading fuels are production the sales of renewable outlook materials to the revised As these evolved the diesel rapidly used into provide catalyst primarily made catalyst second in

pricing above identification credits key which the renewable for production, or for Specifically, for producers positively RIN a diesel particularly $X.XX producers. traded value numbers declined overall are significantly. for incentive RINs, economics several and for renewable the renewable years, to contributing diesel smaller

decreased between $X.XX. development production with falling an of imbalance demand, and below diesel However, the has recently credits RINs of value significantly renewable

inflation, RINs With economics. and costs feedstock are producers pricing with due the lower production and for costs overall increased to many reevaluating credits higher

and rates, opportunities the we expect near-term in pushing extended, future Longer Joint to there operating additions sustainable in catalyst we with lower new our result, for offered growth light out fuel a periodic sales As technologies has the by Venture continue with a been us leading participate believe Zeolyst change-outs. slowdown position well term, to catalyst production. capacity be to associated

While by mandates near-term to producers believe both were the new renewable retrofit economics sustainable for will the to due our targets units improve set triple and challenged, to carbon renewable demand diesel for airlines. governmental that produce add as and by reduction we demand processes aviation diesel is expected XXXX where catalyst materials fuels,

of U.S., higher balance interest purchasing including the sales inflation heavy-duty impacted We our the have the expectations Economic effects has and of for year. in activity control vehicles. applications in the of revised conditions our EU, rates U.K. for in catalyst the also adversely emission for the used and diesel

in declines For sales Class representing in down XX% for consecutive U.S. down of to trucks of XXth the month Class XXXX, the with the sales XXXX of vehicles. are May, May sales month XX%. of U.S. the were X Year-to-date, vehicles X heavy-duty of compared these May

In the NOx requirements heavy-duty implementation legislation was the of vehicles addition, has although delayed X XXXX. significantly expected vehicle X effect to XXXX, sales go Euro X Euro in has EU for and years, previously in softened impacting reduction into for

Euro with fuel catalyst an for our X the in control to emission the sales is upgrade having requirements, now, the both is fleet emission and balance implementation the impact and for need Given this applications material incentive XXXX. adverse of compliance more on delay for little there truck of

half to we strong demand, half see which hydrocracking to catalysts, second of led expect XXXX. sales and For strong for good first a similarly continue a

earnings However, for we overall look replacement of XXXX XXXX still advanced first catalysts, expect sales to cycle And with future, hydrocracking for as we and quarter in be as year into a in peak catalysts we discussed we XXXX. the hydrocracking in outlook recycling call, representing in positive below our the a technologies. catalyst levels peak have sales

next We to over grow expect years. X sales the

of key with over the the in and more I'll detailed a recycling plants to for aligned players expect our few We commissioned in results second be built dozen call a now the quarter. turn discussion and years. industry to financial the for next Mike are advanced

million, of Venture Eco XXXX, And of quarter compared the second the XX% increased $XX catalysts. down sulfuric for sales sales Joint for our in virgin higher on Ecovyst and XXXX. benefited $XXX share sales chemical Zeolyst demand from Kurt. the to advanced you, acid. Thank second strong regeneration quarter services including from proportionate silicas million Services were

of control with lower year-over-year. lower net sustainable materials emission well variable production & contractual applications of associated in as used costs pricing sales However, fuels the effect Ecoservices lower and lower the timing the overall in drove as sales pass-through catalyst for

net within million, effect XXXX Venture, pass-through $XX of higher planned quarter and This to the pricing, and quarter to second sales in XXXX, by the sales down $XX was Ecoservice reflecting lower contractual both of silicas. cost costs Second attributable the Joint volume adjusted in mostly turnaround was compared Ecoservices. unfavorable and million EBITDA the offset in higher the timing the maintenance partially Advanced Zeolyst

net slide. and on timing price driven variable $XX contractual the is the netting impact The impact cost in adjusted EBITDA our costs, lower of unfavorable quarter. drivers, million net index by second was pricing the to the mechanical The reflected the to next pass-through energy Moving other including and primarily a in and certain costs. pricing negative

acid. services with the higher and which pricing of balance our associated including the the timing Venture turnaround quarter costs. reliability the a costs, result were The our increase comparison maintenance in quarterly of and higher planned Zeolyst The lower the the Joint lower variable in to we more is period-over-period initiatives, sales costs costs lag. the Our unfavorable previously volume as costs decrease in largely variance the regeneration with continues Overall, mix and offset and discussed. the with and is had associated than networking virgin exceed associated activity, sulfuric

Turning to X%. up the was XXXX $XXX down with quarter sales services, Sales results. regeneration treatment Ecoservices. Ecoservices virgin highlights the acid were for and the segment for second of services. start million, for volume I'll sulfuric

higher volume in contribution quarter. net offset However, the the Ecoservices was sales in the unfavorable pricing from by

believe the the with headwinds costs effect of pass-through contractual half and are associated to timing us. of Looking year, unfavorable second certain behind we the largely

the adjusted EBITDA was in only to costs support EBITDA adjusted nearly Second of by decrease and turnaround volume adjusted These Sales the quarter. impact, by turnarounds. silicas higher chemical of pricing higher were networking for EBITDA the driven partially the up $XX quarter higher million. XXXX on in were catalysts. benefit of net margin and the for million million items costs sales just under was advanced $XX maintenance Ecoservices The $X planned and primarily offset

However, production the the in Joint fuels million sales of control Venture used emission on $XX decreased lower for & Zeolyst of sales sustainable applications. catalyst materials

half of Advanced As expect sustainable driven primarily million. quarter Joint just EBITDA lower was catalyst the demand emission volume for for Adjusted Catalyst second XXXX in fuel the the materials $XX The the we Kurt year. the and of by control noted, decrease Venture. for compared now used second Zeolyst to was under softer in Materials &

allocation. and support Turning to have which next cash strong continues a balanced capability, Ecovyst slide. to continue capital leverage generation the approach believe we to to on will cash

year, Joint the the in dividends X compared lower free was the the For first offsetting months Zeolyst million from adjusted first cash just half XXXX, $XX $X received reflecting the interest quarter, the first for earnings, over higher of of taxes. million flow to and higher Venture

our the $X basis balance we quarter, sheet over million shape. costs. the loan, refinanced is annual interest this rate of points, strong in XX term our In exceptionally in by light to XXXX the extending maturity During transaction, interest saving spread and reducing

XXXX. caps our to exposure limit in of that continue average our rate rate debt place is during and to interest cost expected be X.X% have We interest approximately

refinancing our for with liquidity Considering repurchases, and was of second $XX of in loan the million. $XXX the X.Xx. $X share reduction cash with ratio We total use for the repurchased we stock quarter at shares second of the net XX-month have share leverage the an XXX,XXX at of trailing our cash and adjusted term debt price available end quarter of per During our of $X.XX million. million and a quarter, EBITDA, ended average

activity, With year cash share repurchases M&A leverage of of balance the we to Xx. impact the approximately generation with and of the expected or any a ratio end year over expect the excluding

our GAAP sales to million, demand, sulfuric at The year to to $XX reflected We XX particularly acid. year, view the this versus be As reflect and release, for range. revisions sustainable cautious of will $XXX for guidance full fuel& expectations million with morning's demand to as outlook in our sales considering prior catalyst Hurricane control impacts of more balance of with noted sales industrial in now emission our the to Slide midpoint for are have expected the outlook for on used revised materials the earnings $XXX regard a we softer moderate of of the the the applications expect that Beryl revised XXXX and compared range the follows. production million lower

outlook emission control $XXX of Venture sustainable to down the production we expect million $XXX $XXX million million. catalyst expected Zeolyst Adjusted EBITDA With to the range for the in used fuel& now million is the revised $XXX to of at to midpoint. in be sales be million, applications, sales for the Joint between $XX

of segment expectations. In terms

an $XXX million expect For we EBITDA to to for in of will is $XX to adjusted corporate range million. year million XXXX, in our cost and $XX Materials the the the be million around million, be Catalyst Ecoservices basis. to expected we expect to Advanced full $XX of and be on $XXX annual continue range

expect we adjusted to share $XX to per $X.XX $XX of $X.XX. million a guidance guidance be the diluted our we year for net But range million million, be income to also at $XX down the We income range in flow have range of to million $XX adjusted and to in midpoint. to million, $XX free providing cash are for full of the revised

specific $XX be between $XX the third guidance of third and EBITDA adjusted quarter, expect for terms In million quarter we Ecoservice to for million.

we For third be and $XX million Catalysts, Advanced million. $XX Materials to to EBITDA adjusted quarter expect between

to Assuming $XX $XX unallocated to million, corporate the between $X quarter expect third million $X million consolidated of and expenses we million. for EBITDA adjusted be

income $XX per call million with range remarks. closing to for $XX We $X.XX adjusted share diluted income the million will some to hand expect adjusted back the of net $X.XX. to of Kurt now in I be to

done first results environment. our Ecovyst and the you, doing XXXX, operational first relative for plan Mike. financial we Thank well to the expectations of exceeded an believe our executing manage the in results. half continue for upon as In strategic our of Reflecting for year, the I through team we half has internal to economic uncertain so,

will For Ecoservices Ecoservices we volumes the demonstrate as believe year-over-year as all products Ecoservices, for EBITDA well gains.

expected regeneration of that despite our indications pressure, balance associated XXXX. particular, refining our is are that For business, reiterate more margins I'll in under of which the demand for the profitability Appalachian units, with positive services to for regeneration is remain the

up & With quarter. near-term variable sales the are of through control these the mitigate deferring we spending. second of we we the still expect as emission market environment, the while acid, virgin to sustainable demand pressure virgin of of effect quarter headwinds XXXX, ecoservice about year, reductions economic this sulfuric to of into with net conditions timing for for our about sales some in the manufacturing second leads largely we remain reflected volumes pass-through but compared contractual third us behind uncertainty go for we outlook industrial to impact for acid. overall aim our sulfuric costs, half of into and cautious the And sales XXXX effect softer the results timing believe applications For the cost pricing associated which to be revised fuel

our expect revised about We capital continue both the to for outlook, for continued free the for flexibility up fuel allocation cells position financial providing Ecovyst emerging and with solutions our even Powders, We're support In year-over-year, green for equally growth new eager hydrogen we to foundational flow be in generation scale we partner, develop they as technologies. cash prospects closing, as and future. in and be Ecovyst generation. for Pajarito enthusiastic for XXXX our their businesses to

softness across While volume the end silicone, strategic of ask deliver we growth modest entirety Ecovyst to will for continue we the this we plan to line near-term that long-term At portfolio. X will Venture, the I for growth on the have questions. established the the operator and execute in we specific expect time, open uses advanced in Ecoservices see Joint and Zeolyst to

[Operator And with we Markets. take from John Instructions] BMO first will our question Capital McNulty

I'm then curious, tied and Caleb outlook. just from is and also is the Hurricane from to for the impact This then industrial guide how the lower renewable much demand impact of the John. on lower fuels Beryl

million ranges Ultimately, from X then, virgin that's half side businesses. on the a Related a guidance to bit side, Ecoservice impact it coming in Beryl primarily for then we is to related change change and business. related is some is the provided The of other primarily dollars. from Ecoservice And is AM&C. in half few the of outlook the softness industrial fuels, side. the about sustainable the driving both the our little AM&C emission The the in the to outlook, course, the control the on coming and

expect XX thing? the renewable And next like of the on just kind that in fuels, how do last headwinds is that just terms that couple for? of Or dynamic? Is you then the quarters to long of

to driver which slowed And market, of the as in right well sustained to for investment deferred a catalyst. face the is which space, decline the going months. really utilization XX view now. producers to led that the in XX the rates RIN renewable which been over It's consumption the has Our there's next as affects diesel is probably obviously headwinds decisions credits,

go XX XX that, likely for Our that will months. to view is

However, is in as and positivity we future do sustainable XXXX. there units aviation of tripling between demand built expected where to see the XXXX fuel coming a be are

be economics dewaxing new continue. units into Producers units well diesel make will renewable catalyst diesel that as core as where and there'll the units aviation So they'll renewable their already existing the sustainable will built be existing require some announcements convert like materials that we have made if units.

take from Capital with will next KeyBanc question we Markets. our Aleksey Yefremov And

is down business some is has provide reference renewable I next low you is Or runs? XXX%? like little, a your for XX%, diesel And stabilized to sideways Can go pre-downturn it the pressure don't more relative maybe here? levels, it XX, how know, now there XX

Previously, business fuel we the more had little than said sales sustainable that XX% of segment. our a the for around represented or AM&C XX% total

is alluded Now the what XX%, basis. term, we're year to, it, that just see longer short-term in supply dynamics see the of as a seeing on to there for single-digit demand call so as to ability And around high is in we that changes the SAF Kurt business. below do the in grow, remainder the that the percent. the mid- we But for as well and particularly is what

pricing go the effect no to you would Do what the pricing And see Ecoservices in away first do expect like on would do them think then in the you you half? half. effects. that have think And the look longer lag in not, Or we if you lag when the second when happen?

first, our that just base to So any we want I have pricing. concerns don't comment around

nature business. a costs, timing incurred. variable A is pricing profitable of those the mechanical have of is are and what we our is, and obviously overall the when pass-through exceeding costs really this lot Our

quarter same So year, the a second we period-over-period when last in year. this the you benefit same don't big comparison, you're the just at compares have had a And benefit. of looking

big negative. as So a it looks

So do that not to trend expect we continue.

much the you're your But a year, going impact dynamic. more of muted the overall rest from for to impact but same not does the So half, for you'll see the comparison. overall year-over-year first impact half going forward the see second that

from comes Citi. with question next our And Patrick Cunningham

fuels weaker to outlook I well with the just think in on as our I as renewable want thread emission catalysts. the control continue

terms regulatory their is the whether saying your then talk XX you're demand weaker any optimization election can result as decision, terms the Are forecasted in First, cooling And a what of in buying are of place? next uncertainty, fuels, that the of you the taking XX patterns? and about demand results of renewable customers it's maybe in just how months? and to taking for this cost positioning business you actions Chevron

right leads we've creates terms that in fee fuels driven just macro RIN pressure deferral before. imbalance, in utilization which of investments to the sustainable for of the I or environment renewable to leads think now, mentioned credits, on supply-demand those lower

In guess issues set resolved, mean, regulatory, are of volume be post obligation election. will I be the RFS, renewable to the there terms I some still the

EPA that on So until think going has impact And that. I future post announced make that they're that already not the the could a have to call election.

little ones of a behind commitments as bit intend holding to well the they see in because elsewhere. for aviation have to that. and we're airlines the in we are with sustainable regulations that do the term, actual as been think I contemplated made long EU we sustainable place But fuels aviation a that pattern being So volumes that purchase momentum mentioned, as in here fuel put large have

Venture costs are it's the in it emission of concentrated In those terms Joint July cost in But perspective, units shift steps some those terms already And they're be would towards Zeolyst removing none production taken controls controls, remove to fuels. all the really also in -- the the spending. and of say, of a of underutilized going from probably to we've concentrated to I that impacted, out of areas. schedule. in We've deferred put equivalent costs renewable these

site Kansas all. polyethylene, cost that impact Now the reductions still City that have catalyst space expanding and are move to to going forward other those materials our advanced going those we things where all impact are things for going and the at on we're won't in cost controls these

Mike. And then for a question just

in be in the on headwinds the you or limited indicated And for leverage, conversion below eventually you balance the or of down? are get discrete cash said You've is? some focus and of know pay better any there year? come that will where expect when repurchases Xx low your Xs. tailwinds probably you M&A to I What of balance debt make base the do

So leverage of do to We our cash end free expect based on expect Xx our standpoint, from remain roughly strong. a we year the to still flow guidance levered.

is what much You'll is. but as our it We generation as not guidance year. strong notice that than EBITDA still our was that down, free it expect cash we believe be have and to higher last flow cash

So we cash. continue generate to

are mentioned, Our And we've doing been some generation appropriate core businesses the as take things other going forward. Kurt intact. actions to support defer and that spending help to

And with our question next Laurence comes Alexander from Jefferies.

on the the bit share talk about opportunity the we this out kind opportunity front? the front for and we of at baseline get think your out the over secondly, can takes you X, both then plans builds that about years of in should and revenue what's be chain? expected, the the now for can And is little you first, there? the puts adjustments So made look supply your structural. maybe transitory you as think building EBITDA, what customers is if If the you as XXXX you versus go using recycling bridge a SAF what and you've through with what had revenue X at industry the like point, discussions the fair And for the you've the and separate given

you standpoint, year we sulfuric particularly with acid from as to guidance We happy any volume standpoint, directional but XXXX, going provide I'll updated So growth around a from tell certainly about. we're that a we've we're on talked would do regeneration what and start seen just that note this services. not the I virgin see in just

still earlier component structure that forward. Ecoservice at And continue going pricing cost now talked we with previous strong level cost than a more moderate the expect the into We will that appropriate little a over However, the and growth to but higher an we reliability and it's that in turnaround is cautious year. going base related program forward about have future managed good do year, that higher the costs, with years. to our

right to go direction expect we So to XXXX months. XX the continue in at

next So that impact going will into us year.

year. is that hydrocracking XXXX well the was It's this at it Our actually in quite doing peak catalyst last not year.

is that well. into it we a strong positive next see a year having as being and However, continue to year

are with So as all that enzyme nature us or with going to silicas positive of around the development, the are in functionalized some well. into advanced whether XXXX newer a those recycling areas, those take for it's business positives

I would aviation a see add, as growth Laurence. just advanced Mike fuel, units mentioned said sustainable little XX we've construction. that there's bit recycling, under we

expect our circle I'll and are going All to year products going ‘XX Difficulty] that have ‘XX uptick begin space and We really in to uptake And the an in products just [Technical beyond. the back on Ecoservice side. volume

Hamed our Khorsand come from BWS And question Financial. next with will

a RIN I ask So for just to coming making, been you've on wanted than about more down what's year. going has been Zeolyst. The string comments

fuel perspective coming wanted different down side lost just have just sounds of Difficulty] about sudden customer? So [Technical loss customer a Zeolyst a a now. a the I RIN was this So been RIN year being a that ask to all the what the sounds little off excuse it Zeolyst. Is now? -- sustainable prices because Is what's on for It an and

you're So I'm just year any it from that. surprised took a seeing kind before impact of

I producers. for lost that provider in stated, But renewable mean, the I a have our catalyst said, tends technology we've the be this as we provider provider technology customer, materials. space. or dewaxing catalyst being the to think not leading customers are in we end

that actual removed most fuels. in refining some terms in cases, themselves, the integrated in or renewable are produce of cases, on which, we're, So once producers producers companies purpose renewable

led where the of to defer on has nature came Our well reins was view as that people the investments this to life catalyst long-term are as credits sustained going down, decisions these as leading rates is the low use long-term the low the there. RINs of or the consumption from now that catalyst utilization from sales utilization Once credit. the to the catalyst impacting removed slower

think activity. of I have has started nature length below in that the of culminating RINs credits long-term that this the the more some been it's

concerned, well? are is keep come manageable reducing able And costs then to how permanent? do is back costs those as back, your as management far sales you when come Or cost that, you're as those

when do scale lines Essentially, equivalent have was We'll come of what that ability up. look to obviously, we'll the to of the the shift that are affected. production or back. the production the at the those We removal mentioned sites I before

have So be back. capacity? Or add comes to manner back. existing those what pace handle ability costs to that we we it it scale just with the Can back and that have and at would of do we would go a our back

be pace will it of of sales. of the function really return a So the the

[Operator And Instructions] Silver question will our from King. take next David CL with we

guess the be to like acid the your first question product. to back view for get of terms in the the virgin on opportunities year maybe of I ask half I'd your would

is competition just more In to tend of your their internally falling other demand all they I some use new activity strong step has when And industrial maybe turns that weaker increased markets? for exceptionally see think demand where look I'm Kurt, that But words, can't or about your and weaker that in players a some this are the been they the weakens market, Or hasn't there preferred in that maybe, on then really step something down demand industrial that little product for words, side down in captive into implied just enter traditional you few is now? or guidance. away? that outlets markets. there dynamic where into a other thinking a the complex been the some there quarters is your in

up guidance expect So the half initial the the our had and second half into said, That of marketplace. to planned EBITDA the this sulfuric would recovering for X do we the be for the activity our we virgin acid year, the gave do of second Ecoservices in when turnarounds year year, be coming first in was of be year-over-year. a Most volumes turnaround actually year again, the up the of overall back year-over-year We done. we to being of to half of view half year.

producers if are a short-term what industrial taking due their generally spot healthy I'd higher is a to turnarounds nature. contract just volume meet generally in which there's say materials, such spot other or price market have are sell We themselves, market opportunistic to is activity additional and the and generally healthy and short-dated where to

is existing makes ability but now our marginal to demand. just really the cautiousness just not scale. generally capitalize sales market we typically might meet they have able capture it infringe industrial not to may seeing the the due because to We're we're spot just what to around with our So impacting the that just our existing those because that there cautious be be demand, climate, ability those overall

your I'd you to The second to decision loan. like ask maybe redo and about term is extend the thing

of my what assumption is have internally why you time and to anxious your about And redo I to mind annual X are originally, extended when maybe, earn So of right paperwork. wouldn't XXXX the the interest there calculation you savings, the of come other time? it out you've just that or you or term thoughts why Banks or think $X middle wasn't key effort moving until, on a more always with it's expire if thinking were of or to now noted forward away loan I million Mike, due that features effect, side. or to lot would mature from decision at loan beyond but lot with a the time that? June that your impetus years. did really sharing read fees, a of But the few part so My and extend think, announcement to your I been And that term that, so. in was

a the market we to a saw into go an out this market. in as and And balance So sheet. companies question the their of opportunity around there's bit certainly

expense, that us for this have going able reducing also do and as we've helping what low relatively nice at and ability mentioned, through that as would to right we cash million a cash felt opportunities to used done a bankers balance sheet the a capital having quite And support standpoint, We to NPV Our value you needed use we year. generating arise. well having guide job doing the $X that allocation high. for around to do of the turnout it comfortable we a cost as certainly for the able X overall interest do, what from were of extending forward. very, were very it might The help our the when a strong was story years

add of So as go caps time the needed. out right also us with investors we the believe that to that comfort it strong our and rate continue was the market, to interest gives strategy sheet our balance to is allows

XX% the about we're over we several As years. next mentioned, hedged

year. weighted is for So the X.X% our of cost average around capital

a So is company comfort that again, it not that concern know for just like to big ours. investors gives for a interest

this time. I And then I from or your little Kansas something and a line trend do you'll if industrial Any does City maybe I'm time in probably make period could. if question, below With your softer that sense major capital of a be wise, don't bit thoughts on could or last we side a update, original know, thinking of latest differently? little under-earning of outlays patch Or the particular. a But that's here? enter still timed activity be,

polyethylene, the obviously, it's little been in the with than the growth lower polyethylene X%. past to X% trend a is what So in

those our polyethylene call, do on X% to are around expect simultaneously catalyst knowledge, said we'll linked that we As the rolling customer X%. We really they're investments City running to who to sales currently which, The year-over-year. be is such and up assets commitments our catalysts, are to along. constructing need Kansas that

Kansas we So intention have commitments just have to at slow those time, any to we for customers. City meet expansion don't downstream this

at the disconnect Thank We participation, Earnings any This time. queue and further have time. Webcast. Call XXXX questions and Second conclude you Ecovyst does this Quarter in you for at your may no