TORONTO, May 30, 2011 /CNW/ - Chemtrade Logistics Income Fund (TSX:  CHE.UN) today announced results for the three months ended March 31, 2011.  Distributable cash after maintenance capital expenditures, EBITDA (earnings before interest, income taxes, depreciation and amortization) and net earnings were all higher than in the first quarter last year. The first quarter financial statements and MD&A will be available on Chemtrade's website at and on SEDAR at

Distributable cash after maintenance capital expenditures for the first quarter was $24.4 million, or $0.80 per unit (2010:  $12.5 million, or $0.41 per unit), generated from revenue of $169.6 million (2010:  $126.8 million).  Cash flow from operating activities for the period was $22.1 million (2010:  $29.5 million). The revenue increase in the quarter reflects the improved business conditions over last year and higher prices for sulphuric acid in Sulphur Products & Performance Chemicals (SPPC) and International segments, as well as higher volumes of sulphuric acid in SPPC.  EBITDA for the first quarter was $28.6 million (2010:  $22.1 million) and net earnings were $13.4 million compared with $10.5 million in the same period in 2010. In addition to strong operating results, the higher earnings also include an insurance recovery of $8.3 million relating to the business interruption claim arising out of the fire at the Beaumont plant in May 2010.

Mark Davis, President and Chief Executive Officer of Chemtrade, said, "Chemtrade's businesses performed well in the first quarter. Demand levels for our products continue to be firm with increased pricing enhancing our returns.  We continue to be well-positioned to benefit from the improved market conditions."

SPPC generated revenue of $96.6 million in the first quarter compared with $73.5 million in 2010. The main reasons for the increase in revenue were higher prices and volume for sulphuric acid and sulphur. EBITDA for the first quarter was $27.7 million compared with $16.5 million in the first quarter of 2010. The higher EBITDA relative to the first quarter last year was due primarily to the $8.3 million business interruption insurance settlement. SPPC also benefited from generally improved conditions for all products and lower operating costs.

Pulp Chemicals reported first quarter revenue of $12.5 million compared with $10.9 million in 2010, reflecting higher volumes of sodium chlorate. This revenue improvement was offset by higher electricity and maintenance costs, resulting in EBITDA of $3.6 million compared with $4.8 million in 2010.

International reported revenue of $60.5 million for the first quarter, compared with $42.4 million in 2010.  This reflected higher prices for sulphuric acid and sulphur.  EBITDA for the quarter was a very solid $4.1 million.  This EBITDA was, however, significantly lower than the $10.3 million reported last year, which was the result of unique circumstances in the first quarter of 2010.

Corporate costs during the first quarter of 2011 were $6.9 million, which was $2.7 million lower than the first quarter of 2010.  The main reason for the decrease was LTIP accruals being $3.4 million lower than the first quarter of 2010. Additionally, during the first quarter of 2011 expenditures of approximately $1.0 million were incurred on acquisition related activities compared with $0.8 million last year. Net finance costs were $2.4 million lower than in 2010, which included costs associated with the issuance of the convertible unsecured subordinated debentures.

International Financial Reporting Standards (IFRS)

The first quarter of 2011 is the first quarter that Chemtrade has reported its financial results in accordance with IFRS.

Since the transition date to IFRS was January 1, 2010, for comparative purposes, 2010 financial results have been restated to conform with IFRS.

Marsulex Acquisition and Equity Offering

On May 5, 2011, Chemtrade announced that it had entered into a definitive arrangement agreement with Marsulex Inc. (TSX: MLX) (Marsulex) to purchase all of the businesses of Marsulex, other than Marsulex Environmental Technologies Corporation for an aggregate transaction value of $419.5 million to be funded by a bought deal equity offering of subscription receipts and syndicated secured credit facilities.  On May 26, 2011 Chemtrade announced it had completed an issuance of 10.99 million subscription receipts, including the exercise in full of the underwriters' over-allotment option, for gross proceeds of $149.5 million. Marsulex will hold a special meeting of shareholders on June 22, 2011.  The transaction requires the approval of two-thirds of the votes cast at the meeting. If approved, Chemtrade expects the final closing to take place by the end of June.

Mr. Davis said, "The Marsulex businesses are highly complementary to Chemtrade's existing businesses.  Further, they extend our business model of mitigating typical commodity risks through risk-shared contracts.  The transaction will generate value for all of our stakeholders."


Distributions declared in the first quarter totalled $0.30 per unit, comprised of monthly distributions of $0.10 per unit.

This news release contains certain statements which may constitute "forward-looking" statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario). The use of any of the words "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements are based on a number of material factors and assumptions and involve known and unknown risks and uncertainties that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.  As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements in this news release describe the expectations of Chemtrade as of the date of this news release. Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of Chemtrade, including, but not limited to:

- the ability of Chemtrade to close the Marsulex acquisition transaction and the date thereof; and

- the ability of the Marsulex acquisition transaction to generate value for Chemtrade stakeholders.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available.  Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than those for which it is disclosed herein.

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at

A conference call to review the first quarter 2011 results will be webcast live on and on Tuesday, May 31, 2011 at 10:00 a.m. ET.

SOURCE Chemtrade Logistics Income Fund

For further information:

Mark Davis        Rohit Bhardwaj
President and CEO       Vice-President, Finance and CFO
Tel:  (416) 496-4176   Tel: (416) 496-4177



Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .


Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.


Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.