Olin (OLN) 27 Oct 232023 Q3 Earnings call transcript

Good morning and welcome to Olin Corporation's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Please go ahead, Steve.

Thank you, Jason. thank joining and today. everyone, morning, you us for Good

include this me with question-and-answer Before these or are will actual note let and could performance. you of session regarding discussion, future expectations follows, forward-looking the we begin, projected. that and differ remind materially along Please those estimates slides the that that statements statements results associated from

Factors that from limitations earnings the factors yesterday's could of Risk our in are of results in differ cause recent Some to press most without projections described the and Form section our actual release. XX-K quarter third

A Investors will be section copy available the Events. and Past in website of today's under transcript on slides our

financial and press Our and earnings other data are available information release under Releases. Press

are Olin's Sutton, Todd Scott and morning CFO. CEO; Slater, Olin's me With this

call some I'll be will to Sutton to over after remarks, now which, Scott turn brief questions. we to the take your happy make

all. team of promised, third good prioritization Thanks, the quarter, In on and no share EBITDA, adjusted was Olin the chlorine which reduction repurchases. sequential morning pricing Steve, in and we what $XXX to delivered million

those complemented White than at repurchase acquisition better of returns we Clay Targets Additionally, deliveries Business with Flyer forecasted returns. share substantially confirmed the the

championed by of Looking forward, strategy teammates continues to and our Olin's Board our be Directors.

relative million expectation an relative XXXX. initiative the in ECU weak and already and are rebound results values, participation a to of adjusted fourth declining EBITDA market, quarter values. initiative the EBITDA taking As ECU accelerator in markets. to anticipated XXXX our value step challenging of beyond our incremental chunks such, idling change this we the we've to our direction the which quarter, is in to assets our a quarter, of adjusted in delivers necessary fourth previous potentially penalty and significant in to dramatic improvement but but actioned a It $XXX fourth involves This force slashing a

that of improvement. confident are We

demand bad where ECU, and recency growth for in forget Olin. supply favorable an chlor please we never in though news exceeds the environment that may unbalanced bias, future negative growth, creates Even across all operate growth believe future a be we also that alkali,

We are confident favorable that in outlook.

and Jason, proceed opening now remarks, concludes my questions. can to we So that

first Aleksey Yefremov from [Operator comes Markets. question Our Instructions] Capital from KeyBanc

questions this decided first Scott, it? the the Olin's I call are out came the strategy the believe to that address the Can reflect any is some or since successful you strategy, news me earnings how not what other and is? for whether concerns you about Board there -- out. of And

I absolutely of the I shareholder Alex, our think are change mean I scheme Okay. way our strategy, same that and But we our question. model, in lift no terms in the people how all forward. allocation has as Olin going We understood look, well. momentum pulling value there's the absolutely

there's absolutely dispute there. any that. no running of process So in a And we're

then And idling and fourth impact earned Scott. quarter. turning million estimating to EBITDA you're Chlorovinyls actions Thanks, about million from your quarter. in XQ, about segment your the $XXX EBITDA in $XXX fourth

what to number total. segment a the Just seems in relative like very large earns

So and next back year could maybe simply $XXX run assume something rate you came that how real number million talk million $XXX is that you of QX with whether could in something you view about we or add as up the maybe like and QX?

say, quarters we take a quarter be this say as delivery the earnings big is X X any well previous to activation very over a number, yes, but a well. significant cash is, where very probably maximized. could have certainly sure that there that period, make would action to our is longer to Well, it's calls X And through said we've big what quarterly I a

of consists And do, to intended significant is that's It right? this what actions.

lot a a of Olin. are there We in favorable of more idling liquidity parlaying and some bit place weak not additionally managing that going and to and out markets assets for a major participating

yes, So significant. it's

question from comes next from The Kevin McCarthy Vertical Partners. Research

Scott, to do a look at whether unit and long assets? looking might having not what what for preliminary are or should have you down we think, I large the of as for may those gauge Freeport, shut at St. least you restart a Gabriel outsiders outage or how you take? And idea

continue If continue to is then look, that we we get that it this the mean to most deliver quarter right? desired shareholder doesn't going fourth to the need value, absolutely in I need fourth we're it Kevin, finishes mean but to it, activation, Yes. result a quarter. the

when the because going is in many the outside both when it's initiative. have internal chased excess liquidity we we if side out for the ECU being world. the to think ECU. reduce effective others signs and or change of it's of watch see be we watch the there strong at this the challenging can we of But We that we sides see I might detriment acceleration world to know value by

are material price watch trade Europe see very less China. China. much caustic the and price in flows. that but there's entering to fluttering. how We you be carefully already and watch And increase entering We attempts of out those trade flows happening in material And is that may things increasing

for we requests Already some HCL supply. requests can't can't merchant EDC supply. requests supply. is that chlorine and some that that are volumes we there Already, can't for Already, are there we there volumes price are for volume increasing,

appear quarter, in things the the kind Those results apparent and second our quarter. for the watch. see to of we'll So that. indications those are they'll than the more Harder world will likely be in outside that more in first

juncture? market a it. has that this acetone, I'd at reason secondly, the force and any the view you heading of understand to Scott, into majeure I Shell begin firm Part quarter. welcome your of That's some sales And on fourth Epoxy related seeing on then ask one encouraging declaration control up to as Are helpful. reportedly the phenol your signs may is very I implemented Epoxy competitors

we week say I'll price announced North that over we in just have and so. already America and both Europe, or increase the Well, did that Yes. last

that sign our see we time the from business. good exceeds is happened. systems there business that contribution other that our first the resins has the Additionally, that's And from really, the contribution

I'll still even in a the markets, bit really sloppy doubt in about up. little still still fourth It's And just quarter well. as first bit. it. those caution you a inventory quarter are we us no clean to some haunt those and have into impacts little going the to And

Zekauskas question next Jeff from The JPMorgan. from comes

did At is Can you talk about today why? rate what it say, in XXXX? growing the domestic chlorine and what demand? rate grow, of it state At

mean, to mean I acceleration why markets the is Those running in Yes, weaker I side. look, it's very chlorine has Yes, returned initiative we're the good. not are of very, the ECU be Jeff. because side this value this weak.

in because trade so can not And of and it's quarter into down our some a weak in And in the we're participate as see our like we're did where that's markets decline results price that merchant we're to published been chase the going may not going have those just you in the third not -- mud, publications. not play. to chlorine

say. but not I it's getting what So no, worse good, it's would not is

that And timing inflection about values. in saw The this see X whole inflection we're a that pulling point. point we ECU point terms point inflection at this we future probably activation activation quarters So of where is at forward least. was can a out

has Okay. And amount volume? understand $XXX it do fourth that a million money certain the the the best with penalty to of of all is there is actual penalty certain of quarter, a in which as shutdown the to of Or assets? component

asset the XXX% shutdown. is Yes. nearly in associated That's poor I No, it's markets. mean not with participating just not it it.

for -- out, are volumes of So quarter. our it's those system out that

from UBS. next from The Josh comes Spector question

of you cost? volumes hedged down guess, more is some this that And cost early this on guys have impacts extend more a just does time-related? as hedge for take the most curious, your of that higher Just thoughts volume-related or that you any year, how 'XX? on I of gas of as been roll-through

question, Thanks Josh. Yes. is for the Todd. This

sequential second hedge in the do cost in third because We are just from our We to quarter that we our structure positions. like see the improvement sequentially quarter quarter. for the saw of hedged expect fourth

as from purchase volumes down taking How do a your think back, you're markets. of tandem? about selling kind just are what pulled regions? in volumes And different have of you into you you're are you lot Okay. guess, that deselecting there obviously, I mean, Epoxy I Or to your business? parlaying other

and say EDC Well, adjustment volumes our in merchant relative not say volumes would are the good are quite Epoxy volumes business. sequentially quarter, major where adjustments in chlorine, is news the third quarter are increased low I'll that look, low. But again, in there -- to so good That's Epoxy. in major business I our second actually The in is. already the that caustic. the our

Hassan question comes next The Ahmed Alembic from from Global.

the bit dig in been positive all to it's I specific into XXXX. deeper the your I'm guys to the of level I I in quarter Scott, mean, uncertain have second over wanted comfort inflection understand. seems to mean accelerator be of be that production place. world. to going trying value an you saying implications feel the very a I mean initiative. clearly, there's you just a around Industrial

has an that obviously, on demand. caustic So impact

that just macro guys out I obviously, in the you course, of sort housing And positive But China gives QX environment, supply. that you that uncertain weakness trying here, indeed, level will see of understand you comfort with I'm and what like. to of there's mean, controlling are this inflection.

the Europe slow for and applications we some for Hassan, U.S., are worse, know, there, in right? all years. a slow Granted, really getting is maybe the that lowest stayed but has you slowdown, been know continues. a new of sales low, necessarily aren't Well, there. been that new in mean has mortgage I right? has homes there things many while homes still while and existing and yes, Yes. has stayed Asia

other running have of this to a is, and successful when But the at And always we've of in model need running that it confidence the been over that cycles the turning to lot able course this through we've reason we those be for been model we equation been value X around years. we've years, mini around. X #X, turn

right? Olin So on this. And in to these of lot I'd Number seasoned really when get a completely those you momentum leader broad done. united there's X who's absolute businesses, the to ask and just things we are we pair remember, together, this two, team a you have

maybe path, via some a at in back request EDC merchant least already refer to and it I'll succeed, to that question chlorine come was well. can't as be fulfilled first has maybe indicator. When then another an the signs right? for this chance that There's that's And good

have still We quarter a lot early, very or the this implemented just necessary, really first if well. have quarter, right? So it's of this quarter started the And as first clearly. look, we we the fourth go, of time the But to right? at in

way So We've Hassan, you. got there's to positive of I get this want lot long don't done. but a to go, momentum a to mislead

not guys talked on you Understood. in again, Understood. better a of be about And perspective an XXXX. how to keep as your earnings this, will but follow-up, remarks, than from harping prepared sort XXXX

Now EBITDA. run quarterly in coming based our guidance out million off QX of of exit rate your is $XXX

You and million. $XXX annualize that, that's

in earlier you keeping obviously that better it's the of to not, behind can QX. TBD, rate than you guys of just in help or being the I'm that? earnings you 'XX, exit talked gave that whether of imminently in And are restart you trying terms of you'll how run mean, I right? in down, facilities me 'XX So about sort understand quantification understand terms them just shutting mind the guidance that

is just our year ending X help full X with going adjusting more I'll the have that We're bottom announcing And So we've restructuring done. major benefits its increase, much a to the start initiatives in, Epoxy smaller we businesses, have Absolutely. price work inventory, 'XX to Yes. from year us and setting relative of the going 'XX. that are right? to in a

the exceeded resin. this lot one systems before, recent contribution was profit I in the And of like has momentum. the said Our a first contribution profit quarter where in systems business

those that trade coming unfair are So to of out this We're well. to end things working. work going Asia exists as

why that's will up. Epoxy step So

that. of long military sales commercial piece which X quarter, program, selling over and the When military improvements, also get again, military are international We've this is we'll very weapon countries most And ever, ammunition NATO-base-type we squad then well the said the doing XX years. business. lift recent years, to tremendous the time sales. And we on you Winchester, there's exceeded that our and in have to a ammunition runway a momentum next-generation on for first business double way that next in

and We standpoint, sports looks profitable in and acquisition, target that, our made shooting on not that major favorable. -- while up one merge White of we major momentum Flyer it's with a just a the from highly revenue top shooting On ammunition. focus a the when

we And the we're you to good. our again, fundamentals then bigger mean chlor be value going running that year. next have get growth. is Every growth that I business that for this supply are finally, than powerhouse accelerator business. initiative underlying And product, to demand alkali favorable

next question Viswanathan comes from from The Markets. Capital Arun RBC

comments in So just on zero on those I Slide X. wanted couple to a of

a also You some I And decisive commented as taking you're note And a XXXX. laid out million think then here. on better that it you've you've maybe action that $XXX impact.

less seasonally evolve, QX maybe see that inflection actions taken. $XXX point then those how be the So from think better million when QX it impact. QX, sounds you I than real and the the also like should numbers of and about And you've will

$XXX that's just $XXX And little QX. right? And QX then can to maybe Is so you PCI, which, that I may well be as relate XX to bit and the in guess, QX. range. then to you million that in softer in a in improvement And million the dropped seasonally maybe more see

So of XXXs into you but really 'XX, above you're high accelerator level value Is out? into go in thinking plays QX. that of the maybe mid-XXXs rebound in kind initiative how down QX that then the see how million or $XXX about maybe or you the

no yes, in XXXX But earlier where in of quarters mind, QX, that, keep ones. we than are say running to have doubt, substantially back part better right right, later to half right? make XXXX, be are of the that may maybe -- better the to now. some just But in would still than for we back I middle better the are year Well, initiative in just we this the than order in quarters time, have XXXX in

So an in you'll those. improvement see

And just a follow-up. allocation then on capital quick as

doing this flow You leverage year. are free cash the $XXX million-or-so

I So activities that next repurchases towards higher put can assume share mainly Will year, or expect? we as that, be should that be well. other also

want Todd, that? you Yes. answer do to

we an as But will to Clearly, Scott. that target Thanks, But we're to towards this Flyer to acquisition. Yes. have only And our saw continue willing any White repurchases. shares. ability to of type targeting shares be year. better easy buying much buying We're decision. of you some deploy acquisition this of year, cash share outstanding XX% will the demonstrate than today, the it's

Fargo. next Sison The Wells Mike question comes from from

So you're more just at or for your other think be the that $XXX operating your you're rates XX% ran the running do your in will operating would if the alkali. lowering quarter? players for major curious, would to run so take Where rates? impact million you the industry fourth And than -- chlor the or that level, below you going

and mean, recall that, fourth positive us at we around the right running of roughly we in would predicted Mike, penalty had XX% way, think you And a bigger whole levered I I to to. still may low number. But we with EBITDA, had our we that were place is is down XX% say than flow. level, that we our that But else that $XXX free $XXX than whole a this number said we if down I that have we level, can that to, bigger to leaves rates yes, don't to. The know we of come reality to system anybody get needed certain which, We doing. can that. million at that million that lower a is It have what one level, activation. is run go the system assume trough if if trough doing the cash quarter by could

some have need So some we it, yes, we look, don't we but have to I think room. room. use

level. run $X.X to to your In then, have $X can to XQ? get where improve EBITDA to would sounds 'XX need at recession there? it 'XX, to in to time? case us would over you of to rates chlor have like this XQ, for EBITDA sort alkali operator And Okay. be I in prior may QX, need billion you XQ, above back your remind what order for your operating guess billion you And of sort

the we Well, or or which that. In EBITDA QX, of I later be parts this roughly can't And at previous quarters the $X.X this in say did run Yes, But to right? rates, need That not whole X as case year, billion trough go would do up. ago, to if just we that may do point. We just do may our our plan rates yes. need low right, not in back to to in you that's the bring was number rates clear, level. QX, right? XX% we case XX% pricing at the recession year same assumed guidance, it if to of need

So on your that. I question I hope answered

question from comes Blair next from The TPH. Matthew

think going that capacity is are numbers the million other count it shutting the enough to are of market also materially some take producers And up Is of tons Freeport too? tighten out St. you on XX shutdowns that U.S. would that's the those around X at Gabriel fair market? correct, Or million and if tons? to in about to capacity

similar by world anybody or reduction and below. a utilization all won't just this is to an what Olin is and way the significant action can't whole and the a enough operate to activation, mean, kind of we any which it's significant, is. exactly long system taking say on Well, down largest it's take it comment the the system, XX% to I our U.S. will I in shot, comment doesn't on I of capacity I And that. also right? count on anybody else else that the

a it's big number. So

good. then, the that that structural? Sounds driving think side you weak something I And has chlorine seasonal that? to Or a dynamic? now ECU. the And Is Scott, flipped is mentioned just factors are of that the what

a the season. But Yes. off. not you are small relative as are much chlorine, play No, mean that fact some it's not into supply-demand at season demand to the into merchant dynamic, seasonal a into it's just situation things caustic situation heading to no, water winter businesses summer right? supply-demand are there's supported there It's world the I issue. head around the the that the around those relative relative by just like as going seasonal worse treatment

next Byrne of The comes from Steve question Bank from America.

you shifting a destocking? split product? chlorinated a a potentially, So is your products, on just lower there, is demand have now third that the due Do is that? left and years -- off ability chlorine derivatives demand are do for versus you following to X markets have view to you not as driving Scott, just answer Do buckets? view being demand seeing that's that worse X product that's those a substitution how just on of and chlorine end to much chlorine And and that to different you're this, end-market ago there versus bucket the have

Yes. much for no is mean Sure. substitution I say. Thanks pretty the here. question. issue There is Yes, would I product X, structural

what a or mean This to is was a nonissue. temporary transient issue channel, out and time buckets, And then the varies. That's that's get that of is. it around you I right? all Taking a ago very that's from weak So inventory demand. some back other done nonissue that month-to-month, today. the

part demand least that comment this in low to Is the that can the lower of Epoxy XXXX? And you this also source true side, in how that for much additional of upside it's levels in is for on of at inventory channel? is an none you --

has than last about structural No, XX% to Epoxy world's constitute issue, At a XX% the time, right? XX their there's demand, added together, for Europe's, of China that. Over months, Epoxy, capability really the diminished. different XX to the same with they the productive world's along Epoxy. demand, is Yes. totally

the in changes Epoxy the long-term, longer and structural to to make that going aspects on is we're both some business be short-term have as steady, for some much And had a methodical going a our you we've recovery, to combat to Epoxy. recovery. be So Epoxy well. that's in going doing have road things to why but to to able it's

question The comes next Morgan Stanley. Andrews from Vincent from

kind or rebase maybe. in so as we ask couple I'm companies through levels in there's doesn't conclusion an lower, an listening to listening initiative, And the some this aren't is as to call talking that saw over inflection this and year. to big it you sound guess, hear be that it about a we're to me coming. next and really I'm been successful what wrong, latest most to at is to with ] it of where point And place going taken we're well, much in this it's be -- just want really Just season from. And correct there's completely to, next if way, the the the XXXX inflection And year of and maybe demand more all in but coming you digesting morning, think this about demand will I'm I please of I've halfway last the that like on this for to earnings I to see initiative demand some seems snaps Q&A come [ like you I just of that's middle going years. back versus just need a

So any And comments again, happy wrong. to that? have you be on

you're has what demand, or in No. we're quarters assumption not on is right? remember, in next X mean, coproduction -- the That's weaker that destroyed as weaker happened X weak actually is I ECU product side X got to into time. of I caustic a this side have same the the values the what people strong as certainly But world. X does count value side either. was for at the again, things that absolutely last But major you bad over period and in because so shutting is got quarters. the yes. the markets. Yes, on And a and mean, inflection assuming companies some look, strong were the are been this not the and not the clearly, the quarters they've for more chased minimized, time, last of many it

all the chasing which chasing customers pay in economics to run you a caustic, other if take of strong to what So of chlorine, sudden, happened is in that to away words, side, the even game have China for orders, value and if the don't quarters start what caustic which exist quarters, chasing to economics multiple into even markets export diminishing PVC and dumping happened you and price those for there, have is anymore.

So has go strong there. chase that of demand to desire the side disappeared out regardless

So At overlaying is same time, value initiative. our happening. that attribute accelerator the we're

things upside. Just will in values. be going is that's nice those lift together there a X If inflection to demand,

CEO you be And or And for can presumably, I might the role want existing playbook. just for? Olin? little might a the attributes bit the succession. you additive on candidate the someone Okay. that But new you're could talk Could what about other if ask bring person that looking run to that

Yes.

next In going to done the think is that Olin on to going level. build has can somebody candidate words, to here be and their who what the team take be is other I take to it. focus

model, So clever at it, they'll capital they'll be allocation. lot better endorse the a very and with value do

we're for. what So looking that's

I share means can capital beyond clever on repurchases? what add, if just And just allocation doing

things. come than of did. through acquisitions shareholders alliances. may all White even It ventures. more come may acquisition opportunities like share Well, through that those Those that It's value the it It's just deliver finding repurchases. it could we come Flyer possible to means just through

comes The Frank Mitsch Fermium Company. from next from Research question

tenure early chlorine, and -- pay I Is you EDC, went you're inability to to satisfy supply willing that disconnect shutting forward successful Congrats requesting the your Are what's that causing these mentioned that they're are that you the the that the on can't unattractive? opportunity. come next prices a -- supply. call, that between your product through getting next at on And in HCl. products to from where -- capacity. looking a are requests customers? customers to few comments you the wanted mean, back I obviously, you Olin with said your

initiative Well, are significantly it's where not to in participating an We operations markets. those right? and cut have an back inability not supply, are running we

participating. choice we're So if a market, we're participating But the to not not participate. not in is

Understood.

pay a And that that response customers, what logical reflect is prices are simply that willing and you so are or a not come attractive? they're weeks a the offer they'll prices right for to attractive matter few quarter, to is out sort back waiting back of you you month a it of and now do because getting? the when then Or and follow-on find Olin the the that

I every we're is can say can't for I customer. But what Look, speak participating. not

we're is response our participating. So not

And quarter your despite okay. price? your Okay, indices Olin's among on third What's broader going flat the hold chlorine the highlights price was ability chlorine outlook to lower.

Sure. Yes.

going participate. it's higher the quarter choose line may fourth mix spot committed that's a than right, business. to not mix prior to the third fourth have some to relative business issue. chlorine this in in think of choosing our some because at contract possible that the not generates strictly more I a lower back to quarter. not And we because where quarter to period, Because price we shuttered maybe we're questioning, But assets participate and we're participating, pricing it's very

quarter. you'll that a increase see think will sure I quarter, the mix appear issue So price the But in again. chlorine fourth I'm in first quite

comes America. The Roger from of Spitz Bank next from question

as a chlor different turn that -- tight typically spike down when this but or in demand your -- chlorine you've falls, you happened prices would as just for demand plants. become and when indicator lagging been a Why way, concept hasn't alkali is asked typically, time? Maybe price this

understand sorry, you the I question. just Can don't that? repeat I'm

down Everyone X demand, chlorine demand as by got went because for quarters, housing demand collapsed. you in -- And Recession the Great chlorine demand tight Great or things in the chlorine down U.S. in bad. how it In least extremely okay. I X at And as was everyone lags is quarters for plants have the XXXX-'XX, first chlor typically caustic is their view, Sure. then their high. to and caustic couple post-cyclical. because turned alkali my poor. goes everything Recession a where had happens, chlor alkali plants. are you after few everything chlorine think prices while, great. And extremely quarters, a countercyclical, But were That's caustic soda turn And of

here Now hard. been we weak is Suddenly, falling the prices side. up soda have saying period are, we're where now a coming caustic chlorine you're pretty

demand sounds alkali you your chlor plants. given -- caustic chlorine like clearly it Why become very some flexibility? caustic as So down turning pricing are and weak has hasn't tightened

initiative, just time is instantaneous see Thanks most trade we but takes Okay. in at format. accelerator people that right? a could Got generate to the publications, results it. not to that. impact that Yes. started happen. what an this impact, value for Look, It public look clarifying You're some in going which

it as the PVC. PVC thing like at hasn't as titanium And least are to other a near dioxide chemicals yet segment. like that depends the than and way big producers come bit segment, The PVC little off ag well. things do much the remember as some Even weaker things is bromine polyurethanes on a likely what like

get do happen. So work there's that to impact to to some

near trains or plants less trains full? within shut run whole near far you run that, Does that, way running how slightly it. that then to you chlor XX% second and than Got your run that you or high do full below clear understand what at just you at right have do very down or Or you've is, is be the now. plants question capacity? My actually -- I alkali, you're

right, larger all sites it's down shut complete time, But complete of shut we've above, because and right? we've sites. down the it's at significant, so Well, units this

The from next a from question JPMorgan. Jeff Zekauskas is follow-up

your new of to to initiative sort But also on talk about an trough up shutdown attempt to, EBITDA looks new billion, markets. me successful an the that relative that of capacity trying which trough Does basis, have like maybe think, a the annual You Where trough does tighten to stand a as you initiative something I $X.X will execute? or like it's you're be that. the imply that estimation unsuccessful? initiative to that

where billion the couple -- got mean, incorporates been mean, there yes a Yes, initiative. Jeff, run conditions year. to we're have had roughly right results pay yes. to you've $X.X quarters result a mean, to going I very yes, I price challenging -- it that quite I do that, this And deep that of think we've and I

yes, to this cycle before that right. trough, than higher any of started peak the FYI. a model, mean So that trough, I And just we just happens of course, that's billion. running be you're prior $X.X highest

Yes. $XX then costs million. for third think my I maybe the the -- were follow-up, of about the in And VCM plant quarter, running not the

plant, And the to be $XXX to like we're pressure margin third the go quarter $XX million the in EBITDA So to in million coming more from the isn't the extra is on of VCM wouldn't benefit? from fourth, going $XXX rather it, But that so where million? fourth why well, That million. -- to from, the million we're quarter, fourth go than $XXX call fourth the with sort margin a quarter? is, the $XXX going

Yes. got Yes, you I mean, Jeff. it,

number a right? You're there's business. chunk in But of right. the I fourth during $XX mean indices quarter that the for third play of extra indices, the quarter, is And quarter million a on at example, because to we public have fourth our quite have those of trade quarter. things third we dropped relative priced still trade penalty had that public business don't other in caustic big across an

everything you've on, doing, on that impact as one So going that we're top got of example.

from Markets. is question from Capital follow-up next our KeyBanc And a Aleksey Yefremov

you're the I as actions not that you for kind on of want But comment your your competitors. or strategy appreciate fill them? supply to trying supply don't guess your depends you're deficit Why wouldn't room balance on to your the just creating that create with I them filling strategy. that competitors Scott,

comment and to on do. can't competitors need I don't might comment what Look,

dependent actions. totally on not Our their is strategy

really can't just I So comment can't just that. on -- I

when for those gives we supply in be back, temporary volumes pull us filled a it's demand, in, of of which time. Of as might course, a benefit. filled tightening period they're But

our As conference closing no over to questions, for further would I Scott are there Sutton comments. concludes session. like question-and-answer turn back the this to

Jason. lot, for a the Yes. everyone us today. Thanks. No, say to questions. joining appreciate We Thanks just thanks I'd

you attending Thank presentation. for today's

You may now disconnect.