Q3 2024 AdvanSix Inc Earnings Call
Good day and welcome to the advanced six third quarter 'twenty 'twenty four earnings conference call.
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Speaker Change: I would now like to turn the conference over to Adam Kessel, Vice President of Investor Relations and Treasurer. Please go ahead Sir.
Adam Kessel: Thank you Rocco good morning, and welcome to advance its third quarter 2024 earnings Conference call with me here today are president and CEO, Erin Kane Senior Vice President and CFO, Sid Man, just war and former senior Vice President and CFO Michael Preston.
Adam Kessel: This call and webcast, including any non-GAAP reconciliations are available on our website at investors <unk> advancing dotcom.
Adam Kessel: Note that elements of this presentation contain forward looking statements that are based on our best view of the world and of our business as we see it today.
Elements can change and the actual results could differ materially from those projected and we ask that you consider them in that light.
Adam Kessel: We refer you to the forward looking statements included in our press release and earnings presentation. In addition, we identify the principal risks and uncertainties that affect our performance in our SEC filings, including our annual report on Form 10-K as further updated in subsequent filings with the SEC.
Adam Kessel: This morning, we will review our financial results for the third quarter 2024 and share our outlook for our key product lines and end markets. Finally, we'll leave time for your questions.
So with that I'll turn the call over to advanced six as President and CEO Erin Kane.
Erin Kane: Thanks, Adam and good morning, everyone. We appreciate you joining us here today for our quarterly call.
As you saw on our press release, the advanced 16 capitalized on the strength of our competitive position to deliver robust results with the continued realization of commercial performance across our diverse product portfolio and strong operational execution in the third quarter.
Erin Kane: We drove top and bottom line growth as well as continued cash flow improvement again this quarter, while maintaining our investments for long term sustainable.
Erin Kane: During the third quarter, that's why coffee had.
Speaker Change: Are you starting vacation time.
Speaker Change: It was conducted by a third party independent auditing firm, which means I think American chemistry Council criteria.
Speaker Change: For more than 35 years responsible care has been a core priority for American Chemistry Council members and represents our industry's commitment to the health and safety of our employees and communities in which we operate and the environment as a whole.
Speaker Change: My thanks to the entire team.
Speaker Change: You can see it helps.
Speaker Change: The health safety and environmental performance.
Speaker Change: Long by our financial results.
Speaker Change: The broader market backdrop in which we are operating remains favorable overall with strong software premium supporting higher year over year pricing and our ammonium sulfate.
Speaker Change: Yeah.
Speaker Change: Socket mobile apps on supply and demand environment.
Speaker Change: And modestly improving north American dialect industry condition.
Speaker Change: Our disciplined capital execution continue to support our long term.
Speaker Change: According to state our sustainable U S body accelerates increase nutrition program.
Speaker Change: So you can see that where it makes a lot of money.
Speaker Change: Yeah.
Speaker Change: Must be a cause of fertilizer production expansion program reinforcing a strong return profile for our series of projects.
Speaker Change: Hey, Grant funding will be received during the program's execution on a milestone achievement basis, and importantly supports the demand growth for our U S customers as we increase our production capacity a premium grade product.
Speaker Change: Everyone at advanced X is proud to have true material impact in helping to nourish the world.
Speaker Change: Effective October 1st we want what I'm, saying and as far as our new senior Vice President and Chief Financial Officer.
Speaker Change: So it has tremendous experience, establishing corporate and financial strategies that accelerate growth and profitability and we look forward to his expertise as we advance our next chapter.
Speaker Change: I would like to take the opportunity to once again, thank my impression for significant contributions.
Speaker Change: As our founding CFO and wish him well on his retirement.
Mike will remain with the company through year end in an advisory role to ensure a smooth transition of responsibilities.
Speaker Change: We appreciate that we have a number of items to cover in our outlook with all my mornings later, let me call the tier now with a reflection in our confidence to navigate performed and I'm thinking Oh geez.
Speaker Change: We remain convicted in the future prospects for advance X and are committed to delivering sustainable long term value to our shareholders.
Speaker Change: Now I'll turn the call over to Sam to walk through the quarter financials.
Sam: Thanks, Alan and good morning, I'm excited to be joining my first earnings call as a member of advanced six and look forward to engaging with all our handler.
Vasquez moving forward.
Speaker Change: Delivering upon our compelling investment thesis.
Speaker Change: I'm now on slide four where I will provide a summary of our third quarter 2020 full financials.
Speaker Change: I haven't mentioned our performance in the third quarter was terrific with Roomba.
Speaker Change: Bus sales and earnings performance.
Speaker Change: Strong cash generation.
Speaker Change: I would like to thank all of our talented and dedicated employees for delivering these outstanding results.
Speaker Change: Sales of $398 million in the quarter increased approximately 23% versus the prior year with contribution from both volume and price.
Speaker Change: Sales volume increased roughly 11%.
Speaker Change: Primarily driven by higher sales of ammonium sulfate.
Raw material pass through pricing was 8% favorable.
Speaker Change: As a result of net cost increase in benzene and propylene.
Market based pricing was favorable by 5%.
Speaker Change: Including continued strength in our stone as well as ammonium sulfate as broad seeking to maximize crop yields continued to recognize the benefit of sulfur nutrition.
Speaker Change: Adjusted EBITDA was $53 million and adjusted EBITDA margin was 13, 4% I'll walk through the key your all your all the advances on the next slide.
Speaker Change: Our adjusted earnings per share of 88 cents increased by $1 24.
Speaker Change: Yeah.
Speaker Change: The effective tax rate was 25, 1% compared to 27 in the third quarter of 2023, primarily driven by the pre tax loss in the prior year.
Speaker Change: Free cash flow was $27 million in the quarter up 31 million Euro where you are.
Speaker Change: An improvement of $10 million sequentially from the second quarter.
Speaker Change: Cash from operations of 57 million increased 37 million less than the prior year, primarily due to higher net income.
Speaker Change: Capital expenditures of $30 million in the quarter increased $5 million, reflecting our planned increased spend on maintenance and enterprise programs.
Speaker Change: Now, let's turn to slide five.
Speaker Change: Here, we highlight the key drivers of our third quarter 'twenty 'twenty four adjusted EBITDA performance compared to the prior year period.
Speaker Change: Overall, the quarter can be calculated by dean demonstrated ability to capture the pricing.
Speaker Change: Volume benefits of commercial opportunities across the portfolio.
Speaker Change: The timing of planned.
Speaker Change: Long turnarounds and approximately $3 million in fact in the quarter compared with $27 million in the prior quarter.
Speaker Change: In consideration for the yard or your comparable.
Speaker Change: However, when normalizing for the timing of impact of turnarounds, our underlying earnings growth remains substantial.
Speaker Change: Okay.
Speaker Change: Pricing over raw materials, it was favorable by $17 million tracking all key wearable driving module, we saw expansion in acetone margins or propylene supporting chemical intermediates.
Speaker Change: Improvement in ammonium sulfate on a net price or natural gas.
Speaker Change: Telco basis, and a modest increase in our nylon and caprolactam portfolio or a P. Raws.
Speaker Change: Volume sales mix and other items provided improved performance of 5 million largely reflecting higher ammonium sulfate volume amid continued cellphone nutrition demand growth.
Speaker Change: Now, let's turn to slide six.
Speaker Change: Overall, our healthy balance sheet with prudent leverage ratios have continued to support reinvestment growth and return of cash without debt leverage expected to remain near the low end of our one two and half times target range.
Speaker Change: Capex framework is a key pillar of our balanced and value creating capital allocation strategy.
Speaker Change: Specifically, our strategy remains focused on our base maintenance and health safety and environmental spend.
Speaker Change: Safe stable and sustainable operations, our enterprise programs to support long term operational excellence and risk mitigation on our pipeline of high return growth and cost savings projects.
Speaker Change: As shared in our press release, we now anticipate capex in the range of 135 to 140 million in 2024 compared to our previous guidance of $140 million to $115 million.
Capital investments in 2025 are expected to be modestly higher due to refined execution timing, reflecting approximately $10 million of 'twenty 'twenty four carryall and the continued planned progression of our growth and enterprise programs.
Speaker Change: We continue to focus on making the necessary investments at the right time to support our long term performance.
Speaker Change: We anticipate our new pending waterfall for our whole bell facility to require a multiyear investment to support sustainable water stewardship and resiliency and outside.
Speaker Change: So while this does represent a new consideration for Capex, we do anticipate both the Frankford dock and boiler upgrade spend to ramp up in 2020 five.
Speaker Change: Let me turn the call back to Adam.
Adam Kessel: Thanks, Ed I'm now on slide seven to discuss each of our product lines, starting with our plant nutrient business.
Adam Kessel: While we navigated typical seasonal pricing considerations, our continued strong performance in Q3, including the higher year over year pricing of our fall sell program. A further proof point that resiliency of sulfur nutrition demand.
Adam Kessel: Industry corn belt ammonia in phosphate prices were up 16% year over year.
Adam Kessel: In contrast, corn belt nitrogen pricing, so both a sequential reduction into the third quarter as well as an 18% decline year over year supporting continued robust realized software probably premiums yeah.
Adam Kessel: We also continue to see strong demand for ammonium sulfate, including Chinese first of all fall application, which led to higher anticipated volumes in the third quarter.
Adam Kessel: Head of our fourth quarter 2020 for our planned plant turnaround.
Looking ahead, our order book is sold out through the end of this year and we remain focused on being well positioned for an anticipated favorable ammonium sulfate environment in the spring.
We continue to expect strong performance. Despite recent industry data signaling caution around crop prices.
Adam Kessel: As we've seen in past periods when farmer economics Rama decline, we typically see strong demand for ammonium sulfate EXPAREL or seek ways to maximize property yields.
There continues to be supporting evidence that farmers I understand the investment tradeoffs and driving better yield while managing their cost structure and profitability.
Adam Kessel: They have had a number of questions in the past regarding our regional and product sales mix. We have added a table here to characterize our 'twenty 'twenty four first half versus second half sales volumes.
Adam Kessel: As you can see in the table, we ship and sell domestically on a fairly consistent basis through the year and as a reminder, this is where we sell the vast majority of our premium granular product.
Adam Kessel: Export sales do go up in the second half, particularly for our standard grade product, which is predominantly sold into central and South America.
Longer term, we remain excited about the growth prospects for this business and leveraging our expertise as a leader in this space.
Let's turn to slide eight to provide an update on our multiyear sustained growth program.
Adam Kessel: As a reminder, this program will continue to support growing market demand for small for nutrition with an estimated growth of 3% to 4% per year in additional upside potential driven by increased adoption on sliding.
Adam Kessel: As we've shared in the past. This program is the primary driver of near term focused growth capital investment.
Adam Kessel: And as he promised we endeavor to provide greater clarity to the timing of our investments unexpected outcomes as we hit certain milestones.
Adam Kessel: The program is comprised of a series of projects targeting expansion of our granular ammonium sulfate production predominantly through increased conversion by approximately 200000 tons per year.
That represents a nearly 20% increase to support the growing needs of our domestic customers.
Adam Kessel: With the ammonium sulfate traditionally a co product of caprolactam production there.
The program also provides enhanced flexibility for higher granular production, even under variable capital I can I'll put scenarios.
Adam Kessel: The benefits are being realized and will continue to phase in over the investment period as individual components at each project come online.
Adam Kessel: We remain on track and are proceeding in front end engineering design and field execution.
Adam Kessel: We expect production capabilities by the end of 'twenty 'twenty four to reach a milestone of 70% conversion all of our original target for the year and 7% over our original baseline.
By completion of this program, we anticipate probably 75% granular conversion with increased production flexibility improved domestic customer logistics and no net increase in energy consumption or emissions.
Adam Kessel: The return profile for our program remains robust, but they expected IRR, it's exceeding our 20% target for it already.
Adam Kessel: Coupled with the awarded grants from the USDA, we remain very excited about this program and look forward to sharing our continued progress moving forward.
Adam Kessel: Let's turn to slide nine.
Adam Kessel: For nylon would pricing and spreads have continued to see a recovery sequentially through 2024.
Adam Kessel: We continue to expect North American nylon industry spreads to modestly improve amid stable end market demand and more favorable macroeconomic conditions.
The lower interest rate environment in time is expected to favorably impact building construction and we anticipate seeing a more meaningful impact translate across the fiber and filament chain in 2025.
Adam Kessel: Packaging demand remained stable overall.
Courted by the food and beverage sector, while in engineering plastics, we are monitoring fourth quarter inventory draw down treat all of the value chain.
Adam Kessel: Varying regional dynamics, including competitive intensity and trade flows continue to impact regional thing.
Adam Kessel: Despite long supply and demand fundamentals.
Adam Kessel: Estimated operating rates in China are sitting at multi year highs, resulting in continued in Ireland exports to other regions, namely South East Asia.
Adam Kessel: In light of this and supporting our performance moving forward isn't improved geographical mix and their export sales have reduced and returned to historical averages with an estimated 13% of total nylon sales volume compared to approximately 20% overall in 2023.
Adam Kessel: Yeah.
Speaker Change: Our customers value reliable domestic supply and we demonstrated the benefits of our competitive position with an average of 93% utilization at Hopewell in the second and third quarters.
Speaker Change: Our nylon business, we remain highly focused on supporting our troops through cycle profitability.
We're driving productivity.
Speaker Change: Optimizing our regional and product sales mix.
Speaker Change: So you need to promote the value proposition of our differentiated nylon offerings.
Speaker Change: As an example, our wire and cable tailored solutions are designed to meet strict specifications and maintain compliance with you I'll start of vacations.
Speaker Change: The essential for ensuring the highest safety standards and building wire protection.
Technical support and innovative solutions that help customers solve problems and enable them to run their production lines at significantly higher rates.
Speaker Change: We've seen that translate into strong sales growth.
Speaker Change: Double digit percent CAGR since 2021.
Speaker Change: And 4% sales growth for the third quarter and year to date.
Speaker Change: Let's turn to slide 10.
Speaker Change: Moving to chemical intermediates industry realized acetone prices refinery grade propylene costs generally remain healthy and made a continued balanced to tight global supply and demand is lower cobalt phenol operating rates continue to persist.
Speaker Change: In the fourth quarter, we're monitoring the paints and coatings end market and this is typically a seasonally weaker period.
Speaker Change: Looking forward the lower interest rate environment into 2025 would also support phenol demand in the building construction applications in both renovation and new builds.
Speaker Change: As a reminder, at the time represents roughly half of our chemical intermediates portfolio and.
Speaker Change: As a key product line, where they perform an optimized strategy to meet customer needs, while driving favorable sales and profitability next.
Speaker Change: I would continue to characterize demand across the rest of the chemical intermediates as mixed overall, but they do represent platform serving high value applications and support longer term growth and profitability.
Speaker Change: Let's turn to slide 11.
Speaker Change: 'twenty 'twenty four has truly been a year of contrast.
Speaker Change: Let me just walk through on the positive side, we have consistently shown our agility and focus by defining the right strategies and actions to achieve commercial success.
Speaker Change: Dancing targeted growth initiatives.
Speaker Change: Our underlying commercial performance have been strong.
Speaker Change: Year to date pricing up 1% in sales volume up 3% a robust recovery following our first quarter operational events.
Speaker Change: The results have been led by our ammonium sulfate product lines as well as our ability to navigate the nylon cycle drug product and geographic mix.
Speaker Change: On the opportunity side, while we have proven ability to navigate and recover from operational difficulties our manufacturing execution. Overall this year has not met our expectations.
Speaker Change: Including our disclosure today regarding the unfavorable impact of our extended outage at Hopewell.
As a reminder, this year's multiyear planned turnarounds with comprehensive in scope.
Speaker Change: Designed to encompass maintenance and reliability work at our three major sites.
Speaker Change: Well when mechanical portion of that turnaround is behind US we did experience a delayed ramp in operating rates at our Hopewell facility given the challenge with our ammonia plant restart.
Speaker Change: The reduced production and a delayed ramp to target operating rates is expected to result in an approximately incremental $17 million unfavorable impact to pretax income.
Speaker Change: Inclusive of $10 million of fixed cost absorption and higher maintenance expense and an additional $7 million of lost sales.
The unplanned situation did not have an impact on three to 2024 results.
Speaker Change: Operational excellence is a key enabler to our overall performance and we take all the learnings for sustained continuous improvement with rigor and discipline.
Our planned plant turnarounds as well as prioritize maintenance capital investments are critical to supporting high utilization rate and key to capturing the operational leverage of our competitive cost advantage.
Speaker Change: Sure has reminded us remind you that there are meaningful annual opportunity a sustainably running at our targeted production rates.
Speaker Change: If we look at our last eight years, our average annual impact of planned plant turnarounds, it's approximately $35 million per year.
Speaker Change: Our strategy and expectation is to run and targeted production rate outside of these planned events.
Speaker Change: When you look over the last 10 quarters on a 12 month trailing basis, we have seen the impact of timing and duration of outages unplanned interruptions.
Speaker Change: Total approximately an average of $45 million.
Speaker Change: We are refreshing enterprise wide actions Bobby designed to capture this 10 plus million dollar opportunity to consistent year over year timing of our turnarounds and improved execution.
Speaker Change: Okay.
Speaker Change: I have been moved to the fourth quarter, we are highly focused on capturing commercial success profit diversified product portfolio.
Speaker Change: Driving efficient working capital performance to support continued improvement in cash flow generation and.
Speaker Change: In executing our focused growth investments, while maintaining a strong balance sheet.
Speaker Change: Despite the unfavorable impact on the extended turnarounds our outlook for the fourth quarter and 2025 continues to be supported by a diverse portfolio advantage of our business model and favorable industry dynamics.
Speaker Change: That Adam let's move to Q&A.
Adam Kessel: Great. Thanks, Erin Rocco could you. Please open the line for questions.
Absolutely as you want to ask a question. Please press Star then one on your telephone keypad.
Speaker Change: If a question has already been addressed like to remove yourself from Q2's gross store them too.
Speaker Change: Once we get into the stores and once you have a question.
Speaker Change: Well pause for just a moment, while we use some of our roster.
Speaker Change: Okay.
Speaker Change: Alright, and our first question today comes from David Silver with C. L. King. Please go ahead.
Kevin holder: Hi, Good morning, this is Kevin holder on for David.
Speaker Change: My first topic would be on your fertilizer business I was wondering if we could get a bit more color on how that business is business performed over the summer could you first discuss the factors that led to your success on your most recent fall fill program. Despite the less than robust robust a farm income and crop.
Speaker Change: This outlook and then secondly, how would you characterize your fertilizer demand in your southern Hemisphere markets. Thank you.
Speaker Change: Alright, Thanks, Kevin for joining here this morning.
Speaker Change: Yeah, I'll start by saying, if you kind of think about where where we left off a S pricing get experience its typical seasonal decline.
Three Q2 thousand 24, but a shared pricing, let's fire on a year over year basis, and reflecting really the recognition of our software value proposition.
Speaker Change: And and continued strong software premiums and when we think about the proof point here and as we've seen certainly a farmer economics, notably on a decline, but we continue to see the strong demand.
Speaker Change: Continue to seek ways.
Speaker Change: Yes.
Speaker Change: When you think about because certainly we're worried about and why we fared better than broader nitrogen there is a tighter north American supply demand environment for yeah.
Speaker Change: We continue to have the research that have shown that growers need a premium source of sop are to ensure high yielding crops.
Speaker Change: And so these are proof points that you go through the demand on the bonds are resolved and the pricing that we're always working thinking you're talking about ammonium sulfate to support their their yields and profitability.
Speaker Change: And so when you look at third party industry data, we've seen a long term average of premium to the 85% range.
Speaker Change: Last thing here and certainly while that ebbs and flows from year to year is strongly influenced by industry supply in farmer sentiment.
Speaker Change: His strong premiums in the current environment demonstrate that value proposition that we are delivering shale.
Speaker Change: Then and has ultimately.
Speaker Change: Our excitement you can think of they're taking our interest rate position here and the technology, we have and growing at three wire.
Speaker Change: Thank God program.
Speaker Change: So yes, the positives here and in the North American domestic space and our focus here is to continue to support that growing demand.
Speaker Change: And when you think about.
Speaker Change: Certainly.
Speaker Change: You know they the atmosphere than you know we are in the back half of the year, where we will.
Speaker Change: We'll sell into South America again is you started on that table. There we'll have an uptick in in demand. This is predominantly where we sell our standard grade product and again, the places where we're selling its providing a proposition on the crops, there and and things like that here for the back half.
Speaker Change: Great. Thank you everyone. Now that's very helpful. My next question is directed towards the Cid Congratulations under a point on your appointment and the press release, when you announced the CFO.
Speaker Change: Stated I'm looking forward to joining the advance of <unk> leadership team to drive accelerated profitable growth and supported the company's long term sustainable performance. What do you envisage envision your strategies will be to drive that accelerated profitable growth. Thank you.
Speaker Change: Oh, Thanks, Kevin No hope Youre doing well no. Thanks for your thoughtful question I'm looking forward to seeing you and David in person at some point in the near future look if you look back over the last eight years or so the team has done a tremendous job of.
Speaker Change: The company's underlying EBITDA.
Speaker Change: So a good profitability right, while navigating a fairly shifting macro backdrop as the newest member of the team what I would look to do is further that growth both organically and inorganically.
Speaker Change: As a diversified chemically chemistry company I'll focus isn't accelerating profitable growth in the most attractive end markets. We participate in some of my focus will be around helping the company improve our productivity and margin.
Spending on commercial earnings growth through targeted differentiated products and high return growth investments like sustain.
Speaker Change: And seek the best risk adjusted capital allocation outcomes or Islam fix.
Speaker Change: Oh. Thank you said, yeah, we're looking forward to meeting you as well that's all my questions. Thank you guys for the color I appreciate it.
Thanks, Kevin.
Thank you and our next question comes from Charles Lieber with Piper Sandler. Please go ahead.
Charles Lieber: Good morning, everybody.
Charles Lieber: Two questions. One you said your order book was basically.
Charles Lieber: Build on on.
Charles Lieber: Ammonium sulfate due end of year.
Charles Lieber: In looking at that is.
Speaker Change: Again, that's always associated with the amount of caprolactam, so if youre sort of ordered out.
Speaker Change: Does that mean that caprolactam is going to also be running very hard through through the rest of the year in order to make sure that supply is available or.
Speaker Change: We shouldnt necessarily make that <unk>.
Speaker Change: <unk>.
Speaker Change: Yeah as you know our standard targeted approach areas, certainly with our competitive advantage and I hope all facility you know where.
Speaker Change: We are targeting full race here you know leveraging our assets will be important to you know again just to get the benefits of the expanded granular conversion and maximizing the opportunities that so you know certainly as we've come through the turnaround that is being talked here.
Now through candidly the spring rights out it's a good opportunity for us. So it makes sure that we're using all of our degrees of freedom. You know that we have and that we're investing in oh too to have success here for Solvay.
No we definitely are because they go to.
Speaker Change: No sorry rates are up and working capital that type of terrorist rebuild our pipelines on there as well so.
Speaker Change: That is the intended strategy here.
Speaker Change: Okay.
Speaker Change: The question on the acetone fronts.
Speaker Change: You know I know a lot of your <unk> sales are based on the <unk>.
Speaker Change: Costs in any movement in and the cost will just move to pricing but.
Speaker Change: In terms of the margin over the over propylene in this case on the stuff that's not tied directly to the cost to the cost structure are you seeing an improving margin in that business because again, it's a bit tight because of the phenol issues.
Speaker Change: Yeah. So in in general certainly the the supply demand environment is supportive and constructive for acetone spreads you know.
Speaker Change: Our G P certainly moved in Q3.
Speaker Change: You know what I'm seeing in the chart here on the presentation I've had to come off.
Speaker Change: A bit from those.
Speaker Change: And those peaks, but are you know certainly as long as you know lower global phenol operating rates persist does widen to that tighter market for us we all watch certainly on the demand side on paints and coatings.
Speaker Change: You know in fact that influence any sort of moderation there, but and then certainly you have to look for and as I mentioned it's building.
Speaker Change: Construction when that starts to come back that that is really the key we're watching for for one casino operating rates way would likely improve.
Speaker Change: What do you think we have some time here and a continued constructive space.
Speaker Change: And then lastly on.
Speaker Change: China has been exporting a lot of ammonium sulfate.
Speaker Change: And I and I know in the near term.
Speaker Change: During the spring and fall you really more focused on U S deliveries, but now as you move into the Latin American markets are you finding any.
Speaker Change: Significant amounts of Chinese product down there or anything that might be affecting pricing.
Speaker Change: Yeah.
I know again, China hasn't done much on urea, but they've been in effect substituting nitrogen exports through ammonium sulfate.
Speaker Change: Yeah certainly.
We watch that closely and as you pointed out on a rolling 12 month basis. They are really at our peak levels of exports, Yeah, There's times with the underlying operating rate.
Speaker Change: In our remaining high there China remains the primary source to Brazil at this point now so for US it's all good.
Speaker Change: Moral and central and other countries in South America, we had strong sales of long term customers and yes, there does that influence of sort of the the global pricing, but I think here the sales team and the commercial execution the strength of our relationships.
Speaker Change: And in an operating in spaces that are key for US is it's serving us well.
Speaker Change: Well that's it for me thanks very much.
Speaker Change: Right. Thanks, Charlie Thank you.
A question and answer session I'd like to turn the conference back over to earn two for closing remarks.
Speaker Change: Right.
Speaker Change: Thank you all again for your time and interest this morning, despite the challenges that the extended turnaround in the fourth quarter. Our performance for 2024 reflects the resilience of our business model our position as a diversified chemistry company and our ability to navigate and execute in a multitude of environments. We hope today's call hope to continue clarifying the key strategies that we're executing.
Speaker Change: Across the organization and to support safe stable and sustainable operations and put them through cycle profitability and total shareholder return is.
Speaker Change: With that we look forward to speaking with you again next quarter and stay safe and be well.
Speaker Change: Yeah.
Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending today's presentation.
Speaker Change: Now disconnect your lines and have a wonderful weekend.
Speaker Change: Okay.
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