TORONTO, Jan. 5 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN)
announced today that all of the equipment necessary to restart the Beaumont
plant has now been installed. The plant is currently undergoing various
pre-startup tests and is scheduled to resume operations by mid-January.
Mark Davis, President and CEO of Chemtrade, said, "The actual startup of
the plant is approximately two weeks late due to a delay in the delivery of
certain equipment. Everything we need is now in place and we expect the
startup of the plant to commence by mid-January. The work involved to bring
the plant to this state within this timeframe was significant and everyone who
worked on the project is to be congratulated for their efforts in achieving a
successful outcome."
Mr. Davis also provided an update on the Fund's outlook for 2009.
"Clearly, we are living in a time of great economic upheaval and uncertainty
which affects our customers and suppliers and makes it challenging to provide
financial outlooks. However, we continue to believe that our business model
and the initiatives we implemented over recent years will enable us to
generate distributable cash after maintenance capital expenditures well in
excess of our distribution rate of $1.20 per unit and consistent with our
prior disclosure. The speedy, safe and efficient return of our Beaumont plant
to full operations will further increase our confidence in achieving our
outlook for 2009."
Mr. Davis also noted that Chemtrade's strong cash flow generation in 2008
continued to strengthen its balance sheet. "We have no debt due until 2011 and
during 2008 repurchased over $17 million worth of units (approximately 1.8
million units) under our normal course issuer bid, while also reducing our
operating line of credit by over U.S. $25 million."
Chemtrade operates a diversified business providing industrial chemicals
and services to customers in North America and around the world. Chemtrade is
one of the world's largest suppliers of sulphuric acid, liquid sulphur dioxide
and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is
also a leading regional supplier of sulphur, sodium chlorate, phosphorous
pentasulphide, and zinc oxide.
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", "may",
"will", "project", "should", "believe" and similar expressions are intended to
identify forward-looking statements.
This news release contains forward-looking statements about the
objectives, strategies, financial condition, results of operations and
businesses of the Fund. These statements are "forward-looking" as they are
based on current expectations about our business and the markets we operate
in, and on various estimates and assumptions.
- Forward-looking statements in this news release describe our
expectations as of the date of this news release.
- Our actual results could be materially different from our
expectations if known or unknown risks affect our business, or if our
estimates or assumptions turn out to be inaccurate. As a result, we
cannot guarantee that any forward-looking statement will materialize.
- 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.
- Risks that could cause our actual results to differ materially from
our current expectations are discussed in the RISKS AND UNCERTAINTIES
section of our MD&A.
Further information can be found in the disclosure documents filed by
Chemtrade Logistics Income Fund with the securities regulatory authorities,
available at www.sedar.com.
%SEDAR: 00016317E
