Darling Ingredients Inc (DAR) 2024 Q1 法說會逐字稿

Good morning, and welcome to the Darling Ingredients Inc. Conference Call to discuss the company's First Quarter 2024 Financial Results. (Operator Instructions) Today's call is being recorded. I would like to turn the call over to Ms. Suann Guthrie. Please go ahead.

早安，歡迎參加 Darling Ingredients Inc. 電話會議，討論該公司 2024 年第一季的財務表現。 （操作員說明）今天的通話正在錄音。我想把電話轉給 Suann Guthrie 女士。請繼續。

Thank you. Thank you for joining the Darling Ingredients First Quarter 2024 Earnings Call. Here with me today are Mr. Randall C. Stuewe, Chairman and Chief Executive Officer; Mr. Brad Phillips, Chief Financial Officer; Mr. Bob Day, Chief Strategy Officer; and Mr. Matt Jansen, Chief Operating Officer of North America.

謝謝。感謝您參加 Darling Ingredients 2024 年第一季財報電話會議。今天和我在一起的還有董事長兼執行長 Randall C. Stuewe 先生； Brad Phillips 先生，財務長； Bob Day 先生，首席策略長；以及北美首席營運長 Matt Jansen 先生。

Our first quarter 2024 earnings news release and slide presentation are available on the Investor page under Events and Presentations tab on our corporate website and will be joined by a transcript of this call once it is available.

我們的2024 年第一季收益新聞稿和幻燈片簡報可在我們公司網站「活動和簡報」標籤下的「投資者」頁面上獲取，一旦發布，將附上本次電話會議的文字記錄。

During this call, we will be making forward-looking statements, which are predictions, projections and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in yesterday's press release and the comments made during this conference call and the risk factors section of our Form 10-K, 10-Q and other reported filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.

在本次電話會議中，我們將做出前瞻性陳述，即對未來事件的預測、預測和其他陳述。這些陳述基於當前的預期和假設，存在風險和不確定性。由於昨天的新聞稿中討論的因素、本次電話會議期間發表的評論以及我們向美國證券交易委員會提交的10-K、10-Q 表格和其他報告文件中的風險因素部分，實際結果可能存在重大差異。我們不承擔更新任何前瞻性陳述的責任。

Now I will hand the call over to Randy.

現在我將把電話轉交給蘭迪。

Thanks, Suann. Good morning, everyone. Thanks for joining us for our first quarter 2024 earnings call. As I mentioned to you during our last earnings call in February, the global ingredients markets are facing challenges due to replenish global oilseed and grain stocks, slower global consumer demand for premium ingredients and most importantly, delayed or canceled renewable diesel start-ups.

謝謝，蘇安。大家，早安。感謝您參加我們的 2024 年第一季財報電話會議。正如我在2 月上次財報電話會議上提到的，由於全球油籽和穀物庫存補充、全球消費者對優質原料的需求放緩，以及最重要的是可再生柴油新創企業的推遲或取消，全球原料市場正面臨挑戰。

For the quarter, our combined adjusted EBITDA was $280.1 million, but it included a $25 million out-of-period inventory adjustment within the Food segment. As you can see on the slide, this is the third quarter in a row we have dealt with a deflationary pricing, but we now feel strongly we are seeing the winds begin to change in a positive direction.

本季度，我們的綜合調整後 EBITDA 為 2.801 億美元，但其中包括食品部門內 2,500 萬美元的期外庫存調整。正如您在幻燈片中看到的那樣，這是我們連續第三個季度應對通貨緊縮定價，但我們現在強烈感覺到，我們看到風向開始朝著積極的方向轉變。

Now turning to the Feed Ingredients segment. Global raw material volumes remain strong, and we are seeing PAT prices slowly improve. Palm and soy oil continues to hold a strong premium over waste fats and imported fats are now a premium to North America. This shows me that we are still waiting for renewable diesel capacity and pretreatment to ramp up. Global fat prices illustrate that these announced renewable diesel producers are not yet taking advantage of the economics and lower carbon intensity of waste fats and feedstocks.

現在轉向飼料原料部分。全球原料產量依然強勁，我們看到 PAT 價格緩慢上漲。棕櫚油和豆油繼續比廢脂肪擁有較高的溢價，而進口脂肪現在對北美來說也具有溢價。這表明我們仍在等待再生柴油產能和預處理的提高。全球脂肪價格表明，這些宣布的可再生柴油生產商尚未利用廢棄脂肪和原料的經濟性和較低的碳強度。

Also during the quarter, we completed the Miropasz acquisition on January 30, adding 3 poultry rendering plants to our portfolio. The plants are performing quite well, and I expect them to be accretive this year. And after 481 days offline, our Ward South Carolina rendering plant is operational, providing us much needed capacity in the Eastern United States.

同樣在本季度，我們於 1 月 30 日完成了對 Miropasz 的收購，為我們的投資組合增加了 3 家家禽提煉廠。這些工廠的表現相當不錯，我預計今年它們會成長。經過 481 天的停產後，我們南卡羅來納州沃德的提煉工廠開始運營，為我們提供了美國東部急需的產能。

Now turning to our Food segment. Our Rousselot sales volumes remain robust. Segment revenue was lower quarter over last year -- Q1 over last year due to a decline in selling price in collagen, gelatin and our edible fats business. Adjusting for the $25 million out-of-period adjustment related to the Gelnex inventory, gross margins in the Food segment actually widened to around 30%. This is a testament to our laser focus on spread management and a declining price environment.

現在轉向我們的食品部門。我們的羅賽洛銷量依然強勁。由於膠原蛋白、明膠和食用脂肪業務的銷售價格下降，該部門的收入比去年第一季下降。在調整與 Gelnex 庫存相關的 2,500 萬美元期外調整後，食品部門的毛利率實際上擴大到 30% 左右。這證明了我們對價差管理和價格下降環境的高度關注。

Now we announced earlier this month that we have identified a portfolio of collagen peptide profiles that are believed to provide targeted health and wellness benefits. During scientific trials, these active collagen peptide profiles have demonstrated that collagen can be beneficial in reducing the post-meal blood sugar spike in a very natural way. This is a game-changing discovery that opens the door for many new product launches worldwide.

現在，我們在本月稍早宣布，我們已經確定了一系列膠原蛋白勝肽組合，據信可以提供有針對性的健康和保健益處。在科學試驗中，這些活性膠原蛋白勝肽譜證明膠原蛋白可以以非常自然的方式有益於降低餐後血糖高峰。這是一個改變遊戲規則的發現，為全球許多新產品的發布打開了大門。

Our first active peptide will be available this fall in 2024. Turning to our fuel segment. Feedstock prices tended to trend lower and improved DGD earnings compared to Q4 2023. However, weak RINs and LCFS prices and a lower of cost of market adjustment impacted DGD earnings. The margin outlook remains favorable due to lower fat prices and our competitive advantage plus an optimistic view we have on the LCFS.

我們的第一個活性勝肽將於 2024 年秋季上市。與 2023 年第四季相比，原料價格趨於走低，DGD 收益有所改善。由於脂肪價格較低、我們的競爭優勢以及我們對 LCFS 的樂觀看法，利潤率前景仍然樂觀。

Our sustainable aviation unit construction is running ahead of schedule and on budget and is planned to start up in the fourth quarter of 2024. We continue to work with a number of interested parties on SAF purchases and remain confident in our outlook for SAF.

我們的永續航空單位建設正在按計劃提前並按預算進行，計劃於 2024 年第四季度啟動。

Now I'd like to hand the call over to Brad to go through the financials, and I'll come back and give you my views on 2024.

現在我想把電話交給 Brad，讓他了解財務狀況，然後我會回來向您介紹我對 2024 年的看法。

Okay. Thanks, Randy. Net income for the first quarter of 2024 totaled $81.2 million or $0.50 per diluted share compared to net income of $185.8 million or $1.14 per diluted share for the first quarter of 2023. Net sales of $1.42 billion for the first quarter of 2024 as compared to $1.79 billion for the first quarter of 2023.

好的。謝謝，蘭迪。 2024 年第一季淨利總計8,120 萬美元，即稀釋後每股收益0.50 美元，而2023 年第一季淨利為1.858 億美元，即稀釋後每股收益1.14 美元。額為14.2 億美元，而2023 年第一季淨銷售額為1.79 美元2023年第一季將達10億美元。

Operating income decreased $118.7 million to $137.2 million for the first quarter of 2024 compared to $255.8 million for the first quarter of 2023, primarily due to $120.6 million decrease in the gross margin, which as Randy previously referenced included a $25 million out-of-period adjustment of overstated Gelnex inventories. Also, our share of the equity in Diamond Green Diesel's earnings were $15.9 million lower than the first quarter of 2023.

2024 年第一季的營業收入減少了1.187 億美元，至1.372 億美元，而2023 年第一季為2.558 億美元，主要是由於毛利率下降了1.206 億美元，蘭迪之前提到，其中包括2500萬美元的期外利潤調整高估的 Gelnex 庫存。此外，我們在 Diamond Green Diesel 收益中所佔的股權比 2023 年第一季減少了 1,590 萬美元。

Depreciation and amortization was $11.5 million higher, primarily due to the addition of Gelnex. We did recognize $25.2 million of income from the change in fair value of contingent consideration related to lowering and earn-out liability. Nonoperating expenses increased $14.9 million primarily due to interest expense increasing $12.6 million, attributable primarily to additional debt related to acquiring Gelnex, April 1, 2023.

折舊和攤銷增加了 1150 萬美元，主要是由於 Gelnex 的加入。我們確實從與降低負債和盈餘負債相關的或有對價公允價值變動中確認了 2,520 萬美元的收入。非營運支出增加了 1,490 萬美元，主要是由於利息支出增加了 1,260 萬美元，這主要是由於 2023 年 4 月 1 日收購 Gelnex 相關的額外債務所致。

The company reported income tax expense of $3.9 million for the 3 months ended March 30, 2024, yielding an effective tax rate of 4.6%, which differs from the federal statutory rate of 21% due primarily to biofuel, tax incentives and the relative mix of earnings among jurisdictions with different tax rates. The effective tax rate, excluding the impact of the biofuel tax incentives is 25.4% for the 3 months ended March 30, 2024. The company also paid $33 million of income taxes in the first quarter.

該公司報告截至 2024 年 3 月 30 日的三個月的所得稅費用為 390 萬美元，有效稅率為 4.6%，與 21% 的聯邦法定稅率不同，主要是由於生物燃料、稅收優惠和相對組合不同稅率管轄區之間的收入。截至2024年3月30日的三個月，不包括生質燃料稅優惠的影響，有效稅率為25.4%。

For 2024, we expect the effective tax rate to remain about the same at 5% and cash taxes of approximately $70 million for the remainder of the year. Company's total debt outstanding as of March 30, 2024, was $4.465 billion compared to $4.427 billion at year-end 2023, primarily due to the acquisition of Miropasz on January 31. Our bank covenant projected leverage ratio at Q1 '24 was 3.71x and we had $811.1 million available to borrow under our revolving credit facility.

2024 年，我們預計有效稅率將維持在 5% 不變，現金稅將在今年剩餘時間內維持在約 7,000 萬美元。截至2024 年3 月30 日，公司的未償債務總額為44.65 億美元，而2023 年底為44.27 億美元，這主要是由於1 月31 日收購了Miropasz。第一季為3.71 倍，我們根據我們的循環信貸安排，可藉入 8.111 億美元。

Working capital noticeably improved in the first quarter 2024. Capital expenditures totaled $93.8 million in the first quarter as compared to $111.3 million in first quarter '23. No cash dividends were received from Diamond Green Diesel in the first quarter, and there were no share repurchases in the first quarter. With that, I'll turn it back over to you, Randy.

2024 年第一季的營運資本顯著改善。鑽石綠柴油第一季未收到現金股息，第一季未進行股票回購。這樣，我會把它交還給你，蘭迪。

Thanks, Brad. For several years, we've enjoyed tailwinds from a demand-driven global economy and strong global commodity and specialty ingredient prices. We are now adapting to the new reality of abundant global supplies. In my 21 years plus at this company, I've seen this cycle many times, and I am confident in the team's ability to make any necessary adjustments in our procurement processes and lowering our operating costs to regain margin leverage.

謝謝，布拉德。多年來，我們一直受益於需求驅動的全球經濟以及強勁的全球大宗商品和特種原料價格。我們現在正在適應全球供應充足的新現實。在我在這家公司工作的 21 多年裡，我多次看到這種循環，我對團隊有能力對我們的採購流程進行任何必要的調整併降低營運成本以重新獲得利潤槓桿充滿信心。

In April, we saw nice progress in our core ingredients business, and DGD has finally worked through its higher priced feedstocks. With SAF starting up in Q4, several contracts are underway, and we remain optimistic on LCFS and DGD margin outlook remains favorable. Our goal to reduce debt and working our way toward investment grade has not wavered. Through aggressive CapEx management and a focus on improving working capital, along with improved performance at DGD, I still believe we can attain by the end of the year-end of '24.

4月份，我們的核心原料業務取得了不錯的進展，DGD終於解決了其價格較高的原料問題。隨著 SAF 在第四季度啟動，多個合約正在進行中，我們對 LCFS 和 DGD 利潤率前景仍然樂觀。我們減少債務並努力實現投資等級的目標並未動搖。透過積極的資本支出管理和對改善營運資本的關注，以及 DGD 績效的改善，我仍然相信我們可以在 24 年底實現這一目標。

Additionally, as we discussed in February, we're doing a comprehensive review of our global portfolio and continue to put a strong emphasis on cost and spread management. For the full year, given what we see today around the globe with solid raw material volumes, improving premium protein and collagen demand, along with slowly improving fat prices and DGD performance we feel optimistic that momentum will be built during the year, and we will be able to deliver $1.3 billion to $1.4 billion combined adjusted EBITDA, all while setting the table for a much improved 2025.

此外，正如我們在二月份討論的那樣，我們正在對我們的全球投資組合進行全面審查，並繼續高度重視成本和價差管理。就全年而言，鑑於我們今天在全球範圍內看到的原材料產量穩定、優質蛋白質和膠原蛋白需求不斷改善，以及脂肪價格和DGD 性能的緩慢改善，我們對今年將形成的勢頭感到樂觀，我們將能夠實現 13 億至 14 億美元的綜合調整後 EBITDA，同時為 2025 年的大幅改善奠定基礎。

So with that, let's go ahead and open it up to Q&A.

那麼，讓我們繼續進行問答。

(Operator Instructions) The first question comes from Dushyant Ailani from Jefferies.

（操作員說明）第一個問題來自 Jefferies 的 Dushyant Ailani。

I just had the question on the guide that you have for the $1.3 billion to $1.4 billion, does that include any reversal of the LCM adjustments? Or could there be additional upside to that?

我剛剛在指南中提出了一個問題，即 13 億至 14 億美元，這是否包括 LCM 調整的任何逆轉？或者這還有其他好處嗎？

No, this is Randy. The $1.3 billion to $1.4 billion is really what we see today with a small improvement of fat prices, but really back half loaded here. It doesn't include any SAF early start-up. It's just a snapshot as we've always done on what we see right now. As I said in February, our hope is to beat last year, but we're going to need some help from fat prices.

不，這是蘭迪。 13億至14億美元確實是我們今天看到的脂肪價格小幅上漲的情況，但實際上已經回升了一半。它不包括任何 SAF 早期啟動。這只是一個快照，就像我們一直對現在所看到的所做的那樣。正如我在二月所說，我們的希望是擊敗去年，但我們需要脂肪價格的幫助。

And ultimately, if you do and I'm probably going to answer a few questions here and have Brad help me, but you can go straight to the Feed segment and do the kind of the year-over-year, quarter-over-quarter type of analysis, and you see 100% of that is related to fat prices being down from Q4 to Q1 by 20% and year-over-year by 35% to 40%.

最後，如果你這樣做，我可能會在這裡回答幾個問題，並讓 Brad 幫助我，但你可以直接進入 Feed 部分，進行同比、季度環比的分析類型的分析，你會發現其中100% 與脂肪價格從第四季到第一季下降20%、年減35% 到40% 有關。

And so ultimately, fat prices will drive whether that number is 1.3, 1.4, 1.5, 1.6, 1.7, 1.8 as we come back here. We also remain and as we'll talk through the Q&A optimistic that we'll get some LCFS bump towards the end of the year. And clearly, DGD has worked through the higher priced feedstock with the longer supply chain, and it continues to outperform anybody on the street out there in the business today. So the $1.3 billion, $1.4 billion as Suann thought maybe conservative. And hopefully, we'll give you some upside here.

因此最終，當我們回到這裡時，脂肪價格將決定這個數字是 1.3、1.4、1.5、1.6、1.7、1.8。我們也仍然保持樂觀態度，因為我們將透過問答進行討論，樂觀地認為我們將在年底前獲得一些 LCFS 的提升。顯然，DGD 已經透過價格更高的原料和更長的供應鏈進行了工作，並且它的表現繼續優於當今業內的任何公司。所以蘇安認為的 13 億美元、14 億美元可能是保守的。希望我們能為您帶來一些好處。

Awesome. And then just a quick question on, I guess, on your leverage ratio of 3.7. Any kind of updates on targets or what your goal is for the year-end?

驚人的。然後是一個簡單的問題，我猜，您的槓桿率為 3.7。有關目標的任何更新或您的年底目標是什麼？

Yes. And I'll let Brad help you. Remember, the leverage ratio is a point in time of total debt divided by the core ingredients plus dividends. And so clearly, as we've been building out SAF and we had the Q3 and Q4 lower earnings of last year in DGD, dividends didn't arrive here. So that's just a function of that. As Brad and I and Matt would tell you, cash is building rapidly in DGD and we remain optimistic on dividends, which will then pull that ratio down. It's a rolling 12-month calculation. By no means has anything changed other than the delay of the dividend out of DGD. Brad?

是的。我會讓布拉德幫你的。請記住，槓桿比率是總負債除以核心成分加上股利的時間點。很明顯，由於我們一直在建設 SAF，並且 DGD 去年第三季和第四季的收益較低，因此股息沒有到達這裡。所以這只是它的一個函數。正如布拉德、我和馬特會告訴你的那樣，DGD 中的現金正在迅速積累，我們對股息保持樂觀，這將拉低該比率。這是一個滾動 12 個月的計算。除了延遲從 DGD 中派發股息之外，沒有任何變化。布拉德？

That's right. Just the timing and when these dividends get started, which we anticipate, as Randy just mentioned, cash is -- is building -- has been building at DGD now and the SAF projects winding down.

這是正確的。正如蘭迪剛才提到的，我們預計，DGD 正在累積現金，而 SAF 計畫正在逐步結束。

This is Matt, and I would just add that on the dividend out of DGD is a -- it's not a subjective policy here. It's formulaic. It's calculated every month. And so there's not a discretionary push and pull on that.

我是馬特，我想補充一點，關於 DGD 的股息，這不是主觀政策。這是公式化的。每個月都會計算的。因此，對此沒有任意的推動和拉動。

The next question comes from Tom Palmer from Citi.

下一個問題來自花旗銀行的湯姆·帕爾默。

In the past, you've given a bit of a breakdown in terms of EBITDA between the base business and DGD. I know at least from your comments to the prior question that maybe there's a bit more variability on the feed side, but I was hoping maybe you could give us kind of a rough split of how you're thinking about the year.

過去，您已經對基本業務和 DGD 之間的 EBITDA 進行了一些細分。我至少從你對前一個問題的評論中知道，飼料方面可能會有更多的變化，但我希望你能給我們一個粗略的劃分，說明你對這一年的看法。

Tom, you're referencing really the guidance and splitting that out. Is that -- that's kind of where you're going?

湯姆，你實際上引用了指南並將其分開。這就是你要去的地方嗎？

Yes, that's right, kind of base business versus DGD for '24?

是的，沒錯，是 24 世紀基礎業務與 DGD 的比較？

Yes. Tom, if we had to throw that out there today, 900 out of the base business is what we see today and basically a billion out of DGD, and that's $0.75 times a little over 1.3 billion gallons. Remember, just a point in time.

是的。湯姆，如果我們今天不得不把它扔出去，我們今天看到的基礎業務是 900 美元，基本上是 DGD 的 10 億美元，這是 13 億加侖多一點的 0.75 美元乘以。請記住，只是一個時間點。

Great. And then -- just wanted to follow-up on kind of some of the moving pieces within feed. I mean, you noted the expectation for fat and potentially protein prices to strengthen a bit here. I guess could we walk through what the major catalysts are? I mean, obviously, there is some disconnect right now between some of the products you sell and what we're seeing with safe soybean or palm oil. What kind of bridges that gap? And how quickly might that take hold?

偉大的。然後 - 只是想跟進 feed 中的一些動態內容。我的意思是，您注意到對脂肪和潛在蛋白質價格的預期會有所上漲。我想我們可以介紹一下主要的催化劑是什麼嗎？我的意思是，顯然，目前您銷售的一些產品與我們所看到的安全大豆或棕櫚油之間存在一些脫節。什麼樣的橋樑可以彌補這一差距？這種情況多久會發生？

So this is Matt. I'll take the first cut at that. And so first of all, for the last little over a year, we've been hindered by the ward plant that we've been rebuilding. And we're actually very proud of the fact that we've got that plant now up and running. We did a total rebuild of that plant in 481 days.

這就是馬特。我將採取第一刀。首先，在過去一年多的時間裡，我們一直受到我們正在重建的病房工廠的阻礙。事實上，我們非常自豪該工廠現已投入運作。我們花了 481 天徹底重建了工廠。

And frankly, it could have even done a little bit quicker, if we could have gotten the equipment there even earlier. So now what that does going forward, that allows us to leverage our footprint in the space, especially in the eastern half of the U.S., where we've been over the last year, like I mentioned, incurring some cost, and it's frankly been inefficient for the -- just because of that plant being down. So that's back up and running now. And that's something that will give us now the ability to leverage our footprint in the space.

坦白說，如果我們能夠更早獲得設備的話，它甚至可以做得更快一點。現在，這使我們能夠利用我們在該領域的足跡，特別是在美國東半部，就像我提到的，我們去年在那裡，產生了一些成本，坦率地說效率低下——只是因為該工廠停工了。現在已經恢復並運行了。這將使我們現在能夠充分利用我們在該領域的足跡。

Yes. And that's a good point. And globally, I'd step back, Tom, and give you 3 analysis: one, there's an absolute fact here that anybody that says their pretreating waste fats in North America for [RD] isn't doing a very good job of it or we wouldn't be a discount to where we were 10 years ago to vegetable oil, whether it's palm or soy or canola, that's #1. That impact we're seeing globally.

是的。這是一個很好的觀點。在全球範圍內，湯姆，我退後一步，給你 3 個分析：第一，這裡有一個絕對的事實，任何人說他們在北美對廢脂肪進行預處理 [RD] 做得不是很好，或者與10 年前相比，我們不會對植物油打折扣，無論是棕櫚油、大豆油還是菜籽油，這都是第一。我們在全球範圍內看到了這種影響。

I mean you had European fats moving here for the first time in my career, even with a plus [EUR 106, EUR 110]. Brazil was moving up here. Now Brazil is over U.S. But at the end of the day, the fat pricing drives this thing. And when you look at what's going on in the segments, you've got 3 pieces. You've got animal fats, you've got premium proteins. We saw a massive destocking the premium pet foods.

我的意思是，在我的職業生涯中，歐洲脂肪第一次搬到這裡，即使有加價[106歐元，110歐元]。巴西正在向這裡移動。現在巴西已經超過了美國，但歸根結底，高昂的定價推動了這一切。當您查看各個片段中發生的情況時，您會發現 3 部分。你有動物脂肪，你有優質蛋白質。我們看到優質寵物食品的庫存大量減少。

People were trading down. It seems to have come back a little bit now. We've got great orders in that business again. So that feels much better. China was -- it kind of disappeared for a little while with Chinese New Year, but once again buying the premium chicken products for the aquaculture business, and then the other piece that obviously exists in the feed segment because of shared assets is the UCO business and that business has come down sharply, and that's a very profitable business for us.

人們的交易量下降了。現在好像又回來了一點。我們在那項業務上又接到大訂單了。所以感覺好多了。中國在農曆新年期間消失了一段時間，但再次為水產養殖業務購買優質雞肉產品，然後由於共享資產而明顯存在於飼料領域的另一個部分是 UCO 業務這項業務急劇下降，而這對我們來說是一項非常有利可圖的業務。

And so at the end of the day, the outlook for the Feed segment is improved protein demand and then a rebound in fat prices at some point in time here as we go forward. Bob, anything I'm forgetting here?

因此，歸根結底，飼料領域的前景是蛋白質需求的改善，然後隨著我們前進，脂肪價格在某個時間點反彈。鮑勃，我忘了什麼嗎？

I think you highlighted it really well, and it's the spread between vegetable oil and animal fats. And as time goes on, we should see that spread tighten versus where we are. Otherwise, yes, I hope that helps, Tom.

我認為你很好地強調了這一點，這是植物油和動物脂肪之間的差異。隨著時間的推移，我們應該會看到利差相對於我們現在的情況收緊。否則，是的，我希望這會有所幫助，湯姆。

The next question comes from Ben Bienvenu from Stephens.

下一個問題來自 Stephens 的 Ben Bienvenu。

You mentioned the pull forward of SAF production commissioning making good progress there. Can you talk a little bit about the development of getting that volume contracted and the potential contribution that you think that could bring to 2025 or even 2024, Randy, as you mentioned, maybe there's some stub contribution?

您提到了SAF生產調試的推進，並且取得了良好進展。您能否談談簽訂該數量合約的進度以及您認為可能為 2025 年甚至 2024 年帶來的潛在貢獻，蘭迪，正如您所提到的，也許有一些存根貢獻？

This is Matt. I'll again take the first cut at this. But -- so the -- as we mentioned, the plant now, we will commission in Q4 of this year, which is a solid quarter ahead of the -- the original plan. That plan is also on budget at $315 million at the entity level. So we're tracking there. And so that's something that we're very optimistic about. I would say, from a contracting standpoint, we continue to see a lot of interest in our product.

這是馬特。我將再次對此進行第一次切割。但是，正如我們所提到的，該工廠現在將在今年第四季度投入運行，這比原計劃提前了整整一個季​​度。該計劃的實體層級預算也為 3.15 億美元。所以我們正在追蹤那裡。所以這是我們非常樂觀的事情。我想說，從簽約的角度來看，我們仍然看到人們對我們的產品很感興趣。

We are taking what I think is the best approach towards this. And I would -- I'm confident that we'll be able to, let's say, contract the volume that we are -- we'll be producing out of that plant is going to be oiler plated at 250 million gallons on an annual basis.

我們正在採取我認為最好的方法來實現這一目標。我會 - 我相信我們能夠，比方說，縮小我們現在的產量 - 我們將從該工廠生產的油每年將達到 2.5 億加侖基礎。

We don't have anything in our -- in our '24 numbers related to the project in terms of EBITDA. But I'm confident, given the state of the discussions where we are right now that we'll be able to, a, meet the volume and certainly, b, meet the return expectations from that project.

我們的 24 年資料中沒有任何與該專案相關的 EBITDA 資料。但我有信心，考慮到我們目前的討論狀況，我們將能夠，a，滿足數量，當然，b，滿足該項目的回報預期。

Yes, I think that's fair enough. And I don't think there's been a lot of chatter out there, Ben, it's building. The 17,000 barrels a day is not going to be hard to disappear. We have plenty of interest there. It's down to the final negotiations on spread and pricing here, in both the voluntary and the mandated markets. And clearly, that's going to drive it here. But we have no fear of any challenges there other than hurry up and get it online.

是的，我認為這很公平。我不認為那裡有很多閒聊，本，它正在建立。每天 17,000 桶的產量不會很難消失。我們對那裡有很多興趣。這取決於自願市場和強制市場中價差和定價的最終談判。顯然，這將推動它發展。但我們不畏懼任何挑戰，除了趕快上網。

Okay. That's great. As we think about kind of nearing the end of that CapEx project, you've built out DGD, you've kind of moved through the M&A activity you've had over the last couple of years. As you think about cash spend priorities from here, I recognize you want to get leverage down and then distributions will be in the wake of that. How should we think about your appetite for continued opportunistic M&A and/or incremental growth CapEx projects?

好的。那太棒了。當我們認為資本支出項目即將結束時，您已經建立了 DGD，您已經完成了過去幾年的併購活動。當您從這裡考慮現金支出優先事項時，我認識到您希望降低槓桿率，然後分配將隨之而來。我們應該如何看待您對持續機會主義併購和/或增量成長資本支出項目的興趣？

Yes. I mean it's one that I'll comment on. #1, we are on an aggressive CapEx reduction program this year, told Brad, we're going to scale it back. We were $93.7 million in Q1. I think that's a pretty close run rate. Q1 is always a little lower because of winter weather and construction, but that also had the final bills of building out, rebuilding ward, as Matt mentioned. And so target there is 400 for the year, plus or minus a little bit there.

是的。我的意思是我要對此發表評論。 #1，我們今年正在進行一項積極的資本支出削減計劃，告訴布拉德，我們將縮減規模。第一季我們的營收為 9,370 萬美元。我認為這是一個非常接近的運行率。由於冬季天氣和施工，第一季的費用總是略低，但正如馬特所提到的，這也有擴建、重建病房的最終帳單。因此，今年的目標是 400，再加上或減一點。

Ultimately, we've got some pretty substantial inventories, while we had a pretty big working capital reduction in Q1. There's still more work to do there. So cash generation is key and then the dividends out of DGD, we want to get the debt down below $4 billion. And then it puts us in a different position going forward. We will not walk away from a well-priced bolt-on, but we're going to be very, very cautious this year because our priorities are operating, cost management, working capital improvement and really just getting DGD lined out and living through the lower-priced inventory.

最終，我們有一些相當可觀的庫存，而我們在第一季的營運資本減少了相當大。那裡還有更多工作要做。因此，現金產生是關鍵，然後是 DGD 的股息，我們希望將債務降至 40 億美元以下。然後它使我們在前進中處於不同的位置。我們不會放棄價格合理的補強項目，但今年我們將非常非常謹慎，因為我們的首要任務是營運、成本管理、營運資本改善，實際上只是製定 DGD 並度過難關。

I mean, we're trying -- as you step back macroly, what are we trying to do? We're trying to work towards a share base of owners of this company that both understand that there's going to be some volatility in commodities. We've got a very well managed business model globally. And then ultimately, this thing, once we're in position in '25 here, we'll have chances for all kinds of share repurchases to ultimately considering a dividend.

我的意思是，我們正在嘗試——當你宏觀地退一步時，我們正在嘗試做什麼？我們正在努力建立該公司所有者的股票基礎，他們都明白大宗商品將會出現一些波動。我們在全球擁有管理良好的商業模式。最終，一旦我們在 25 年就位，我們將有機會進行各種股票回購，最終考慮股息。

And that's where we're headed. And then ultimately, as we go into '25, we've got some debt maturing or going current, as they say. And we've got to figure out the long-term capital structure. But right now, for us, it's really just -- as we've said, it's just a real focus on margin management, spread management around the world, which I got to give credit to the team. They've done a nice job. And that's what's evident.

這就是我們前進的方向。最終，當我們進入 25 世紀時，正如他們所說，我們有一些債務到期或流動。我們必須弄清楚長期資本結構。但現在，對我們來說，這真的只是 - 正如我們所說，這只是真正關注全球範圍內的保證金管理和點差管理，我必須將此歸功於團隊。他們做得很好。這就是顯而易見的。

If you look between Q4 and Q1, with a massive price decline again of 20%. But yet, other than the inventory adjustment, you were 3 something in Q4 and 3 middle in their 3 low in Q1 with a 20% fat price decline. And so that's attributable to people making the changes in the spread management ratios around the world.

如果你看看第四季和第一季度，價格再次大幅下跌 20%。但是，除了庫存調整之外，您在第四季度處於 3 個左右，在第一季的 3 個低點中處於中間 3 個位置，脂肪價格下降了 20%。這歸因於人們在世界各地改變了利差管理比率。

I would just say that we get asked regularly about what about an SAF 2 on top of our subsequent to the SAF 1. And we've got the engineering for that -- and that's something that, as the year progresses, I would say, given the fact that we get up and running with Q4, and we are able to contract at the margins and the returns that we are expecting, then an SAF 2 is something that we've got in the holster for some time in potentially '25.

我只想說，我們經常被問到，除了 SAF 1 的後續產品之外，SAF 2 怎麼樣。並運行了第4 季度，我們能夠在利潤率和預期回報方面進行收縮，那麼SAF 2 是我們在25 年可能會持有一段時間的產品。

The next question comes from Adam Samuelson from Goldman Sachs.

下一個問題來自高盛的亞當·薩繆爾森。

I wanted to come back to the outlook on DGD margins and Randy talked $0.75 a gallon, plus or minus. And you were basically there in the first quarter, excluding the LCM adjustments. And I guess I'm trying to just think about the margin capture at DGD with waste fats still at a healthy discount to veg oils relative to, obviously, [loss] the reduction in margin that, that implies in the Feed segment. And just how do you think about -- is that DGD capture kind of satisfactory given kind of the pressure it has on the feed business? Or is the disconnect that the LCFS just needs to work up over 60 to get those values up and that has the double benefit of improving the margin realization at DGD and driving kind of broader demand for the waste fats for the feed business?

我想回到 DGD 利潤率的前景，蘭迪談到每加侖 0.75 美元，上下浮動。不包括 LCM 的調整，第一季基本上就這樣了。我想我只是想考慮一下 DGD 的利潤捕獲，廢脂肪相對於植物油仍處於健康折扣，顯然，[損失]利潤減少，這意味著飼料領域。您如何看待 DGD 捕獲量是否令人滿意（考慮到它對飼料業務造成的壓力）？或者說，LCFS 只需要提高 60 以上即可提高這些數值，這具有雙重好處，即提高 DGD 的利潤實現並推動飼料業務對廢油脂的更廣泛需求？

Yes. And I'll tag this with Matt here. #1, Adam, I'm just going to step forward and just say, I've learned my lesson here a little bit. We're coming out conservative. Clearly, the LCFS has not reacted to what I think is very positive future look here. I think the RINs SMB is going to tighten up here because this [RD] capacity in real or we wouldn't be at discount and soybean wouldn't be a discount to palm oil. So ultimately, this is just a projection in time that we believe, as we approach '25 that, that margin structure can -- can improve quite a bit, but that's what we see right now. Matt, Bob?

是的。我將在這裡用馬特來標記它。 #1，亞當，我只是要向前邁出一步，說，我已經在這裡吸取了一些教訓。我們變得保守。顯然，LCFS 尚未對我認為非常積極的未來前景做出反應。我認為 RIN 中小型企業將在這裡收緊，因為這種 [RD] 產能是真實的，否則我們不會打折，大豆也不會比棕櫚油打折。因此，最終，這只是一個時間預測，我們相信，隨著我們接近 25 年，利潤結構可以——可以改善很多，但這就是我們現在看到的。馬特、鮑伯？

I would just say that the other complexity to this is that there's a timing discrepancy here in terms of in our Feed business, the fat prices are reflected much more responsibly in the results wherein the price movements in DGD simply because of the supply chain management that's required to sustain a 1.2 billion to 1.3 billion gallon business.

我只想說，另一個複雜性是，我們的飼料業務存在時間差異，脂肪價格在結果中得到了更負責任的反映，其中 DGD 的價格變動僅僅是因為供應鏈管理維持12 億至13 億加侖的業務所需。

It's got a longer tail to it, and we've seen that over the last few months. If prices have fallen, the feedstock prices at DGD haven't fallen as quickly in the numbers. And so there's a little bit of a timing discrepancy there. But in terms of -- in the bigger, broader picture, it's -- I would say it's doing exactly what we thought it would.

它的尾巴更長，我們在過去幾個月裡已經看到了這一點。即使價格下跌，DGD 的原料價格在數字上也不會下跌得那麼快。所以存在一點時間上的差異。但就更大、更廣泛的情況來看，我想說它正在做我們想像的事情。

Yes. I think from Adam, from not to get too deep in the sausage grinding, but if we would have rewind the movie 1.5 years ago, DGD3 when it came online between the system would use 2/3 of North America's waste fat supply. So we made a strategic decision to qualify feedstock suppliers from around the world, including our own plants in Europe and South America. And that's the length of the supply chain. That's the good news. We qualified other people and found other sources. The bad news was that in a deflationary environment, that supply chain was much longer and that had to play out in Q4 and Q1.

是的。我認為亞當，不要太深入地磨香腸，但如果我們把電影倒回 1.5 年前，DGD3 當系統上線時將使用北美 2/3 的廢脂肪供應。因此，我們做出了策略決策，對來自世界各地的原料供應商進行資格審查，包括我們在歐洲和南美洲的工廠。這就是供應鏈的長度。這是個好消息。我們鑑定了其他人並找到了其他來源。壞消息是，在通貨緊縮環境下，供應鏈更長，必須在第四季和第一季發揮作用。

And then you top on that is that there is all these expectations between the some of the Gulf Coast guys we're going to pretreat, the West Coast guys, we're going to pretreat and we've never found a consumer yet for Darling's waste fats in North America. So we woke up in Q1 here or Q4 and Q1 really with DGD as the only capable technology of pretreating our fat. Bob, anything you want to add?

最重要的是，我們要預處理的墨西哥灣沿岸的一些人，我們要預處理的西海岸的人之間存在所有這些期望，但我們還沒有找到達林的消費者北美的廢物脂肪。因此，我們在第一季或第四季和第一季醒來，實際上 DGD 是唯一有能力預處理我們的脂肪的技術。鮑勃，你還有什麼要補充的嗎？

Yes. I'll just provide some color from a broader S&D perspective on renewable diesel. I think -- there's a really different picture between 2024 and 2025. In 2024, we always knew that the RIN S&D was going to be a bit heavy. We'll produce 8 billion or 8.5 billion D4 plus D5 RINs this year versus an RVO of 5.55 and maybe a shortfall in D6 of 1.

是的。我將從更廣泛的 S&D 角度對再生柴油進行一些闡述。我認為，2024 年和 2025 年之間的情況確實不同。今年我們將生產 80 億或 85 億個 D4 加 D5 RIN，而 RVO 為 5.55，D6 的缺口可能為 1。

So it's about 2 billion RIN oversupply. But when we get to 2025, the RVO increases to 5.95. And if we move to the producer's tax credit, really imported biofuel and domestically produced biodiesel, it loses a lot of support, and that represents almost 4 of the 8 billion to 8.5 billion RINs. So it's a significant change.

所以大約有 20 億 RIN 供過於求。但到了 2025 年，RVO 會增加到 5.95。如果我們轉向生產商的稅收抵免，真正進口生物燃料和國產生物柴油，它會失去很多支持，這幾乎佔 80 億至 85 億 RIN 中的 4。所以這是一個重大的改變。

And if you kind of look at where biodiesel is today at a, call it, a $0.20 per gallon margin without the blenders tax credit, it goes to minus [$0.80]. And so in order for biodiesel to be at breakeven, the RIN has got to do the work. And so we're bullish RINs as we get into 2025. And then if you just look at the -- at carbs estimates through the regulatory impact assessment, they estimate we're going to be seeing $1.30 a gallon type LCFS credit values, at least that's what they're aspiring to.

如果你看看現在生質柴油的價格，在沒有攪拌機稅收抵免的情況下，每加侖利潤為 0.20 美元，那麼它會變成負 [0.80 美元]。因此，為了使生質柴油達到收支平衡，RIN 必須做好這項工作。因此，進入 2025 年，我們看好 RIN。

And so if you layer that all on top, it really bodes well for renewable diesel margin as we play out. And as we get to the end of 2024, we believe the market is going to see that, and we'll start to react to that type of an S&D reality.

因此，如果將所有這些都放在上面，那麼隨著我們的發展，這對再生柴油利潤來說確實是個好兆頭。到 2024 年底，我們相信市場將會看到這一點，我們將開始對這種類型的 S&D 現實做出反應。

Okay. And if I could just maybe follow on that last one and it kind of goes back to the original question. How do we think about maybe flat price veg oils in that scenario, where that's a pretty significant amount of veg oil demand and waste fat in veg oil, in particular, is going to be challenged to find homes in the biodiesel market that yes, maybe the waste fat discounts to veg oil, narrow or go away, but that could put downward pressure on the veg oil market broadly, do you -- are you concerned about that in any way?

好的。如果我可以繼續講最後一個問題，這又回到了最初的問題。在這種情況下，我們如何看待統一價格的植物油，因為植物油的需求量相當大，尤其是植物油中的廢脂肪，將面臨在生物柴油市場上找到立足點的挑戰，是的，也許廢脂肪對植物油的折扣可能會縮小或消失，但這可能會給植物油市場帶來普遍的下行壓力，你是否對此感到擔憂？

Well, I think -- look, our view is what it is. And if we have a stronger LCFS in California, it's going to be more supportive of demand overall. But I mean you're right, it favors renewable diesel over biodiesel. Biodiesel is generally produced from vegetable oil. Renewable diesel, outside of Diamond Green Diesel, a lot of it's vegetable oil as well.

嗯，我想——看，我們的觀點就是這樣。如果加州的 LCFS 更加強勁，那麼整體需求將會得到更大的支持。但我的意思是你是對的，它比生物柴油更有利於再生柴油。生物柴油通常由植物油生產。再生柴油，除了鑽石綠柴油之外，其中許多也是植物油。

But as we go forward, we should see more animal fats. I mean, I think what it points to is increased demand for UCO and animal fats and less demand for vegetable oil. And so those spreads should come together. But the overall demand for fats and oils really shouldn't change. It's really about the spreads between the different products.

但隨著我們的前進，我們應該會看到更多的動物脂肪。我的意思是，我認為這表明對 UCO 和動物脂肪的需求增加，而對植物油的需求減少。因此，這些利差應該集中在一起。但對油脂的整體需求確實不應該改變。這實際上是關於不同產品之間的價差。

The only thing that I'd add is it would come down to ultimate crush capacity and whether or not crush, given the new crush plants out there, do they start to scale back. That always takes longer than you think it does, but that's the kind of the wild card that's out there.

我唯一要補充的是，這將取決於最終的破碎能力，以及是否破碎，考慮到那裡有新的破碎工廠，它們是否開始縮減規模。這總是比你想像的要花更長的時間，但這就是存在的不確定因素。

And that's a really good point -- sorry, Matt. But it's a really good point because crush margins, soy crush margins are not very good right now and they're not projected to look really good here over the next couple of years. And so one way to control supply as an industry of vegetable oil is to lower crush. And at $25 a ton crush margins, you're not far away from slowing that down.

這是一個非常好的觀點——抱歉，馬特。但這是一個非常好的觀點，因為壓榨利潤、大豆壓榨利潤目前不是很好，而且預計在未來幾年內不會很好。因此，控制植物油產業供應的一種方法是降低壓榨量。以每噸 25 美元的壓榨利潤計算，您距離減緩這一速度並不遙遠。

What surprise me to see imports drop off as well as I think that freestanding biodiesel refineries will be disadvantaged.

令我驚訝的是，進口量下降，我認為獨立的生質柴油煉油廠將處於不利地位。

The next question comes from Manav Gupta from UBS.

下一個問題來自瑞銀集團 (UBS) 的 Manav Gupta。

Guys, you said you were constructive on the LCFS prices. Recent CARB workshop for the first time introduced the concept of a 7% step down or 9% step down for 2025 versus the proposed 5% step down. Do you think CARB is finally recognizing that the prices are too low and there is a strong possibility that now when the revised numbers come out, you could see a 7% step down or a 9% step down, which actually hits the credit bank pretty hard?

夥計們，你們說過你們對 LCFS 價格持建設性態度。最近的 CARB 研討會首次引入了 2025 年降幅 7% 或 9% 的概念，而不是提議的降幅 5%。您認為 CARB 最終認識到價格太低了嗎？難的？

Yes. I think it's -- look, I think we're -- we're projected to be at [13.75%], so a 5% or 7% or 9% step down. All of them are a significant increase to where we are today. What we know is that through the regulatory impact assessment, they've got goals as far as where they would like to see LCFS credits trading. And really, we believe they're going to put a step down in place that they believe is going to allow that market to move to the prices they think it should be at.

是的。我認為，看，我認為我們預計將達到 [13.75%]，因此下降 5%、7% 或 9%。所有這些都比我們今天的水平有了顯著的提高。我們知道，透過監管影響評估，他們已經確定了 LCFS 積分交易的目標。事實上，我們相信他們會採取降價措施，他們相信這將允許市場轉向他們認為應該的價格。

We had the workshop recently. There's a lot of constructive dialogue going on. And in all scenarios, it's a step down from where we are today, where that might not have been the way the discussion was going a while ago. So it's hard to speculate as to where they're going to land. But we think it's going to be based on good data and analysis and when they make that decision.

我們最近舉辦了研討會。正在進行很多建設性對話。在所有情況下，這都比我們今天的情況有所下降，而這可能不是不久前討論的方式。因此很難推測它們將在哪裡著陸。但我們認為這將基於良好的數據和分析以及何時做出決定。

Yes. And keep in mind, Manav, it's always been a 2025 kickoff, if you will, maybe everybody got a little optimistic aggressive in thinking that CARB would move faster here. It's still a very regimented and gated process there. And I think you'll -- I think they're going to publish here shortly. I think it will go to a Board meeting in July. And then after that, we'll see on the execution time.

是的。請記住，Manav，這一直是 2025 年的開始，如果你願意的話，也許每個人都有點樂觀積極地認為 CARB 會在這裡更快地行動。這仍然是一個非常嚴格和封閉的過程。我想你會——我想他們很快就會在這裡發布。我認為這將在七月召開董事會會議。然後，我們將看到執行時間。

Perfect. My quick follow-up here is on the DJD margin for the quarter. I mean it was a big improvement from $0.41 to $0.76. But as you highlighted, there was this still a feedstock lag effect working against you.

完美的。我在這裡快速跟進的是本季的 DJD 利潤。我的意思是，從 0.41 美元到 0.76 美元，這是一個很大的進步。但正如您所強調的，原料滯後效應仍然對您不利。

Like so if we adjust for that, the price decline in the feedstocks, would it be fair to say that if the feedstock prices had not moved at all, this $0.76 could easily be like $1 for the quarter? I'm just trying to quantify the impact of the feedstock price lag for the quarter.

就像這樣，如果我們根據原料價格下跌進行調整，那麼可以公平地說，如果原料價格根本沒有變動，這個季度的 0.76 美元很容易就相當於 1 美元嗎？我只是想量化本季原料價格滯後的影響。

Well, I don't see the exact calculation, but I would say that generally speaking or directionally, that seems correct.

嗯，我沒有看到確切的計算，但我想說，一般來說或方向上，這似乎是正確的。

The next question comes from Paul Cheng from Scotiabank.

下一個問題來自豐業銀行的 Paul Cheng。

Randy, I don't know if you can comment. DGD, the first quarter sales seems really high comparing to the production level. So I assume that we are drawing down inventory. So at this point, how much is the inventory that will remain? In other words, for the rest of the year, should we assume that sales, it will be pretty closely aligned with the production volume or that is still going to be in excess of the production volumes.

蘭迪，我不知道你是否可以發表評論。 DGD，與生產水準相比，第一季的銷售額似乎確實很高。所以我假設我們正在減少庫存。那麼此時，剩餘的庫存還有多少呢？換句話說，在今年剩餘的時間裡，我們是否應該假設銷售量將與產量非常接近，或仍將超過產量。

This is Matt. I'll answer that. I would say, first of all, that DGD does not really have a program to store a bunch of finished products. So the -- really the operational intention and expectation is ship what gets produced. And so what happens is, from time to time, as you bridge months and bridge quarters, sometimes don't get invoiced in 1 month, and they may get invoiced in the next. And therefore, you can see a shift. But I would say that's likely what you're talking about right here.

這是馬特。我會回答這個問題。我想說，首先，DGD 並沒有真正的程序來儲存一堆成品。因此，真正的營運意圖和期望是交付所生產的產品。因此，時不時發生的情況是，當您過渡幾個月和過渡季度時，有時 1 個月內沒有收到發票，而他們可能會在下個月收到發票。因此，你可以看到一個轉變。但我想說這可能是你在這裡談論的內容。

Yes. I think for the year, Paul, I mean, we're still out there at that [1.3 to 1.350] in a total production and shipped -- produced and shipped, hopefully can match up. It's just the timing of vessels and barges and railcars of different things here. And obviously, as we start to transition in Q4 to taking 250 million gallons of R&D offline. Most of that, I think, Matt, you told me most of the SPK and SAF will move out what by rail then or barge.

是的。我認為今年，保羅，我的意思是，我們的總產量和發貨量仍處於[1.3至1.350]的水平——生產和發貨，希望能夠匹配。只是這裡的船、駁船和軌道車的時間不同而已。顯然，隨著我們在第四季度開始過渡，將 2.5 億加侖的研發投入下線。我想，馬特，你告訴我大部分 SPK 和 SAF 將透過鐵路或駁船運送出去。

Yes, it could be a little bit of timing. But production is what's important to us here and the timing of sales is -- will happen.

是的，這可能是有點時機。但生產對我們來說很重要，銷售的時機將會發生。

I see. And second question is on the feed volume from (inaudible). I mean, with the small acquisition, you get 3 more plants and also then what is coming back. So Randy, can you give us some idea then how sequentially the volume is going to look like?

我懂了。第二個問題是關於（聽不清楚）的進料量。我的意思是，透過小額收購，您將獲得另外 3 家工廠，然後又會恢復什麼。蘭迪，你能給我們一些關於卷的順序的想法嗎？

Can you repeat that, Paul?

保羅，你能再說一次嗎？

If we're looking at the feed ingredient, that segment, from the first to the second quarter, how is the volumes we should expect given that you just completed a small acquisition that adds 3 plants and then you also have what being [rebuild] and is working. I know that not a one-to-one, but are we going to see some incremental benefit from a volume standpoint for the feed ingredient when we move from the first to the second quarter?

如果我們專注於飼料成分，從第一季度到第二季度，我們應該預期的產量是多少，因為您剛剛完成了一項小型收購，增加了 3 家工廠，然後您還擁有[重建]的內容並且正在工作。我知道這不是一對一的，但是當我們從第一季轉向第二季時，從飼料原料的數量角度來看，我們是否會看到一些增量收益？

Yes. I mean, Paul, so when I look and Matt can comment more North America. But globally, we've made procurement changes in our spreads in Europe. We're still actively doing it in South America. Raw material volumes are rather large or just the cattle slaughter shipping again from the U.S. down to South America, so the piles of raw material are quite large.

是的。我的意思是，保羅，所以當我看和馬特可以評論更多北美。但在全球範圍內，我們對歐洲的採購價差進行了調整。我們仍在南美洲積極進行這項工作。原料量比較大，或只是從美國屠宰的牛再運到南美，所以原料堆得比較大。

North America clearly, Matt, already commented about Ward. That is such a blessing to have that online just from a -- we were running at 100% capacity and then running through Saturday, so that should take a lot of pressure off the system.

馬特，北美顯然已經對沃德發表了評論。我們以 100% 的容量運行，然後一直運行到週六，能夠在線運行真是太幸運了，所以這應該會減輕系統的大量壓力。

And then we've seen some pricing improvement in the fat side. It's been very modest in North America. It's been a little better in Europe today, it's back really reflecting palm oil values as alternative there. So Q2, within the core ingredients business, looks to be stronger at least at the moment. We don't have April numbers yet because the month is not closed, but it looks stronger and the operating team feels better about it than Q1. Matt, anything you want to add.

然後我們看到脂肪方面的定價有所改善。北美的情況非常溫和。今天歐洲的情況稍好一些，它的回歸確實反映了棕櫚油作為那裡替代品的價值。因此，核心原料業務的第二季至少目前看起來更加強勁。我們還沒有 4 月的數據，因為該月尚未結束，但它看起來比第一季更強勁，營運團隊對此感覺更好。馬特，有什麼你想補充的嗎？

I think you covered it, okay.

我想你已經涵蓋了，好吧。

The next question comes from Andrew Strelzik from BMO.

下一個問題來自 BMO 的 Andrew Strelzik。

My first one is a 2-parter on the guidance. I think a month or so ago, you maybe were at a conference, and I recognize it wasn't formal guidance or anything like that. But you kind of insinuated that the market environment kind of suggested a $1.55 billion, $1.6 billion type of EBITDA number and -- so I guess I was just hoping that maybe you could bridge from your comments at that time.

我的第一個是由兩人組成的指導。我想大約一個月前，您可能正在參加一個會議，我知道這不是正式的指導或類似的東西。但你暗示市場環境暗示了 15.5 億美元、16 億美元的 EBITDA 數字——所以我想我只是希望你能從你當時的評論中彌補。

So now the formal guidance of $1.3 billion to $1.4 billion. And then secondarily, you kind of alluded a little bit to this in the last question, but you talked about a back half kind of loaded year. Is that just a reflection of the first quarter? Or is 2Q also a little bit limited and then kind of we see the full acceleration in the back part of the year.

所以現在的正式指引是 13 億至 14 億美元。其次，你在上一個問題中稍微提到了這一點，但你談到了後半年的負荷。這只是第一季的反映嗎？或者第二季也有點有限，然後我們會在今年下半年看到全面加速。

Yes. #1, Andrew, my crystal ball had fog in it when I gave that prediction before. But it was hinged on a couple of things. 1, it was hinged on some optimism that the LCFS market would come back upon realizing what was going to happen to do that with the change of CARB. And #2, just believing that waste fats couldn't stay down below world veg oil prices very long.

是的。 #1，安德魯，當我之前做出這個預測時，我的水晶球裡有霧。但這取決於幾件事。 1，人們對 LCFS 市場在意識到 CARB 變化後會發生什麼情況後會恢復感到樂觀。第二，相信廢脂肪不可能長期低於世界植物油價格。

And first off, I was wrong on both of those. It's a timing thing. We're saying Q2 is going to be stronger than Q1 from the core ingredient side. And then obviously, we got a turnaround in DGD coming on here. For DGD 3, and I think that plant ran 15 or 18 months before we turn it around, which is an absolute amazing deal, and that's to do the tie-ins also for SAF 1.

首先，我在這兩點上都錯了。這是一個時機問題。我們說，從核心成分方面來看，第二季將強於第一季。顯然，我們的 DGD 即將出現轉變。對於 DGD 3，我認為該工廠在我們扭轉局面之前運行了 15 或 18 個月，這絕對是一筆了不起的交易，而且這也為 SAF 1 進行了搭配。

So it's really -- when I talk about back half of the year, we're going to pick up momentum. You get the LCFS announcement out there and people then realize that it's real. People realize that these RD plants aren't running at the rate or going to run at the rate that should help things as you move into -- as you get closer to next year, you realize that the RVO is going to have less imports, 800 million, 900 million gallons. That has to have a positive effect on both RINs and domestic feedstock values and ultimately, what else am I forgetting guys? I mean what else is going to drive this?

所以，當我談到今年下半年時，我們確實會加速發展。當你看到 LCFS 的公告時，人們就會意識到這是真的。人們意識到，這些 RD 工廠的運行速度或不會以對你進入時應該有所幫助的速度運行——隨著你接近明年，你意識到 RVO 的進口將會減少， 8億、9億加侖。這必定會對 RIN 和國內原料價值產生正面影響，最終，我還忘了什麼？我的意思是還有什麼會推動這個？

I think that I would just -- historically speaking, I would say Q3 is naturally a challenge for us to keep in mind as we plan for this. Principally due to just to the summer heat and all, but we're ready for it. So...

我認為，從歷史角度來看，我認為第三季自然是我們在製定計劃時要牢記的挑戰。主要是由於夏季炎熱等原因，但我們已經準備好了。所以...

Okay, great. That was helpful. And then my other question is just on the adjustments you're making to the procurement process and the operating costs, which you've been talking about for the last several months, so that's not entirely new. But I'm just curious are you finding new opportunities within those buckets? And you referenced some of the evidence that some of that is already playing out. But I guess, how would you frame the extent to which you've realized those benefits versus kind of incrementally what might be to come in future quarters?

好的，太好了。這很有幫助。然後我的另一個問題是關於您對採購流程和營運成本所做的調整，這是您在過去幾個月中一直在談論的，所以這並不是全新的。但我只是好奇你是否在這些領域中找到了新的機會？您引用了一些證據，表明其中一些已經發生。但我想，您將如何確定您已實現這些收益的程度以及未來幾季可能會逐步實現的收益？

No, it's a very fair question. I mean, number one, typically, a lot of the procurement formulas in North America were CPI based, and they had to be relooked at that one enough. In a lot of cases, we've given a lot of labor increases post COVID and so as these contracts matured and changed, we've had to step out. And then 7% interest rate on these assets is a different calculation in diesel fuel and [$4.50] a gallon. So it's just been a comprehensive look all around, and the team has been very open to it. As I said, we've had a tailwind since fourth quarter 2019 and then the wins changed and deflation hit and you have to go look at this stuff, and we've done it.

不，這是一個非常公平的問題。我的意思是，第一，北美的許多採購公式通常都是基於消費者物價指數的，他們必須重新審視這個公式。在很多情況下，我們在新冠疫情之後增加了很多勞動力，因此隨著這些合約的成熟和變化，我們不得不退出。然後，這些資產的 7% 利率是柴油燃料和每加侖 [4.50 美元] 的不同計算結果。所以這只是一個全面的審視，團隊對此持非常開放的態度。正如我所說，自 2019 年第四季以來，我們一直順風順水，然後勝利發生了變化，通貨緊縮襲來，你必須去看看這些東西，我們已經做到了。

I mean the Brazilian acquisition has really been a good acquisition. It's meeting business case, but it's one where we're having to be when you transition from a private owner to a public company, I've always said and the guys have heard me say private owners run for tax avoidance, public company runs for earnings. And that requires us to make changes in the raw material procurement from the slaughterhouses down there more often than has been historically done.

我的意思是巴西的收購確實是個很好的收購。這是符合商業案例的，但當你從私人所有者過渡到上市公司時，這是我們必須要做的，我總是說，人們聽我說私人所有者競選是為了避稅，上市公司競選是為了避稅收益。這要求我們比歷史上更頻繁地改變屠宰場的原料採購。

So I think there's nothing really tangibly too new of what we're doing here, other than we've given the team -- #1, you've seen us take CapEx down solidly $100 million for the year.

因此，我認為我們在這裡所做的事情並沒有什麼明顯太新的東西，除了我們為團隊帶來的東西——#1，你已經看到我們今年將資本支出大幅削減了 1 億美元。

#2, we've kind of just told that we've had to work with the teams to just say, "Hey, until we see fat prices come up, you've got to be really cognizant of cost management. " And so that's kind of where we're at. And you guys -- anything you want to add to that?

#2，我們只是告訴我們必須與團隊合作，「嘿，在我們看到價格上漲之前，你必須真正認識到成本管理。」所以這就是我們現在的處境。你們還有什麼要補充的嗎？

I'd just say, look, I appreciate the question. It's a pretty prevalent theme around here. Our suppliers, they've got several options. They can go to another rendering plant. And meanwhile, we're kind of at capacity across the continent. They can go to landfill and landfill is less acceptable and more expensive every day or they can build a new rendering plant.

我只想說，聽著，我很欣賞這個問題。這是這裡非常流行的主題。我們的供應商有多種選擇。他們可以去另一個提煉廠。同時，我們在整個非洲大陸都處於滿載狀態。他們可以去垃圾掩埋場，而垃圾掩埋場不太可接受，而且每天都更昂貴，或者他們可以建造一個新的煉油廠。

And that's a whole lot more expensive than it was a few years ago. And so all that is taken into consideration when we're repricing agreements. We don't realize an immediate impact in a 1-month period from restructuring these agreements. And a lot of these, they come up at their 3-year agreements. But over time, we're in a really healthy position given the book value of our assets relative to replacement value.

而且這比幾年前貴了很多。因此，當我們重新定價協議時，所有這些都會被考慮在內。我們並未意識到重組這些協議會在 1 個月內產生即時的影響。其中很多都是在三年協議中提出的。但隨著時間的推移，考慮到我們資產的帳面價值相對於重置價值，我們的處境非常健康。

The next question comes from Derrick Whitfield from Stifel.

下一個問題來自 Stifel 的 Derrick Whitfield。

Randy, focusing on guidance and kind of pulling you back closer to your previous crystal ball projection. I can certainly appreciate the conservative EBITDA guidance as your stock doesn't reflect meaningful value for DGD, and you've now taken out the bare case with the guidance.

蘭迪，專注於指導，讓你更接近之前的水晶球預測。我當然可以欣賞保守的 EBITDA 指導，因為你的股票並沒有反映出 DGD 的有意義的價值，而且你現在已經用指導去掉了裸露的情況。

Having said that, if we assume fat prices remain depressed and annualized Q1, you could easily be above the top end of your guidance based on DGD spot margins north of the dollar per gallon with no contribution from SAF. And kind of thinking about the interplay between your businesses, assuming static RIN and LCFS prices, lower fat prices are a net positive for Darling as the impact for downstream is far greater than the impact for upstream. Is that fair?

話雖如此，如果我們假設第一季脂肪價格仍然低迷且按年化計算，您可能會輕鬆高於基於每加侖美元的 DGD 現貨利潤的指導上限，而 SAF 沒有貢獻。考慮一下您的企業之間的相互作用，假設 RIN 和 LCFS 價格靜態，較低的脂肪價格對 Darling 來說是淨利好，因為對下游的影響遠大於對上游的影響。這樣公平嗎？

I missed that last part.

我錯過了最後一部分。

Lower fat prices are net benefit to Darling (inaudible) future.

較低的脂肪價格對達令（聽不清楚）的未來是淨效益。

Yes. I mean, I think that's right. Given the relative size of DGD today and its capacity, it's a very good hedge for the base business of Darling.

是的。我的意思是，我認為這是對的。考慮到目前 DGD 的相對規模及其產能，這對於 Darling 的基礎業務來說是一個非常好的對沖。

Yes, it buys 3x more fat than what we produce ultimately or that's logistically feasible globally to it. So yes, the leverage is there. But I also remind people wearing my selfish Darling hat that I keep 100% of any fat price increase on this side of the table. What we're really looking for at DGD is an LCFS health and then it really has a chance to be a double win for us.

是的，它購買的脂肪比我們最終生產的脂肪多三倍，或者說這在全球範圍內是物流可行的。所以是的，槓桿是存在的。但我也提醒那些戴著我自私的親愛的帽子的人，我將 100% 的脂肪價格上漲保留在桌子的這一邊。我們在 DGD 真正尋求的是 LCFS 的健康，然後它確實有機會為我們帶來雙贏。

Completely agree. I think everything comes when LCFS prices go higher. Regarding the progress that you guys have made with your collagen peptide research and products, how should we think about the build-out of that business line or those business lines? And what the run rate potential could be?

完全同意。我認為當 LCFS 價格走高時一切都會到來。關於你們在膠原蛋白勝肽研究和產品方面的進展，我們該如何考慮該業務線或這些業務線的建設？運行率潛力可能是多少？

Yes. I mean, look, let me just back up a second. I think what really excites us about that is not just the progress we've made in developing peptide profiles. But the infrastructure that we have globally to deliver on a portfolio of value-added products. So with the acquisition of Gelnex, we essentially have access to low-cost collagen production around the world. And we have the capacity needed to develop this portfolio. So without a significant amount of additional investment, we're in a position to do this.

是的。我的意思是，聽著，讓我退後一步。我認為真正讓我們興奮的不僅僅是我們在開發肽譜方面取得的進展。但我們在全球範圍內擁有的基礎設施可以提供增值產品組合。因此，透過收購 Gelnex，我們基本上可以在世界各地獲得低成本的膠原蛋白生產。我們有能力開發這個產品組合。因此，無需大量額外投資，我們就有能力做到這一點。

As the announcement said recently that we're coming out with a product that will secrete GLP-1 into the body and have health benefits that way. We have several other products that are in the pipeline right now. It's hard to predict exactly when those -- when we can complete that process and when we're going to be launching. But I think we're very confident that we're going to have several over the next couple of years that we're going to be able to bring to market.

正如最近的公告所說，我們即將推出一種將 GLP-1 分泌到體內並具有健康益處的產品。我們目前還有其他幾種產品正在開發中。很難準確預測什麼時候我們可以完成這個過程以及什麼時候我們會啟動。但我認為我們非常有信心在未來幾年內將有幾個產品推向市場。

The next question comes from Ryan Todd from Piper Sandler.

下一個問題來自 Piper Sandler 的 Ryan Todd。

Maybe just a couple of follow-ups from earlier questions. I mean as we think about fat prices and how you think about the trajectory over the course of the year, I mean, the supply side, in particular, is hard for us to wrap our heads around because of the wide range of sources on a global basis. But is the biggest single thing that we should be looking at in terms of that price recovery over the course of the year?

也許只是之前問題的幾個後續問題。我的意思是，當我們考慮脂肪價格以及如何看待這一年的走勢時，我的意思是，供應方面，特別是我們很難理解，因為供應方面的來源廣泛。但就這一年的價格復甦而言，我們應該關注的最重要的事情是什麼呢？

Is it really the ability of the North American renewable diesel industry to ramp up consumption of waste fat to the pretreatment units between now and year-end? Is that kind of the single biggest driver on the demand side? Or are there other big things on the demand or supply side that we should be thinking about in terms of fat market recovery?

從現在到年底，北美再生柴油產業真的有能力增加預處理裝置的廢油脂消耗嗎？這是需求方面最大的單一驅動因素嗎？或者在脂肪市場復甦方面，我們應該考慮需求或供應方面的其他重大問題嗎？

Well, and I'll start and then Matt and Bob can key in. I'm going to drive on my side of the table here from the global side. I mean, clearly, we've had an abundance now are just ample crops around the world. Yes, we've got a little dryness here, a little dryness there. But at the end of the day, global stocks are very, very strong around the world of oil seeds. There's a major shift in who's crushing or processing those oil seeds underway right now. I don't know that we've seen play out yet. So that's #1.

好吧，我先開始，然後馬特和鮑勃可以鍵入。我的意思是，顯然，我們現在在世界各地都有充足的農作物。是的，我們這裡有點乾燥，那裡也有點乾燥。但歸根結底，全球油籽庫存非常非常強勁。目前壓榨或加工這些油籽的人正在發生重大轉變。我不知道我們已經看到比賽了。所以這是#1。

#2 is we're seeing oil in the $80 a barrel range now. And typically, history would say at those times, you start to see a lot of palm oil disappear into the system in the Asian countries. And so you saw, I think, yesterday or a couple of days ago, I think Malaysia, Indonesia has raised their biodiesel mandate now to 35%. And then South America from 6% to 20%. So you're starting to see people make the movements that are going to start to move. It doesn't take a lot of movement to change the S&D globally of fats and oils.

#2 是我們現在看到石油價格在每桶 80 美元的範圍內。通常，歷史會說，在那個時候，你開始看到大量棕櫚油消失在亞洲國家的系統中。所以你看到，我想，昨天或幾天前，我認為馬來西亞、印尼已經將生質柴油指令提高到 35%。然後南美洲從 6% 增加到 20%。所以你開始看到人們做出即將開始移動的動作。改變全球油脂的 S&D 並不需要太多的行動。

And then the third piece, as you throw on the North American side, I mean, as we were building our numbers here, if I took every one of the sell-side guys capacity utilizations out there and what's running, the U.S. is going to have to import 4 billion pounds of fat in order to feed these machines. And clearly, they're not -- so I mean, as we look at this thing going forward, the global S&D has got a little bit of work to do.

然後第三部分，當你在北美方面提出時，我的意思是，當我們在這裡建立我們的數據時，如果我把每一位賣方的產能利用率和正在運行的情況都記錄下來，美國將會必須進口 40 億磅脂肪才能餵養這些機器。顯然，他們不是——所以我的意思是，當我們展望未來這件事時，全球戰略與發展還有一些工作要做。

Ultimately, with the number of oilseeds being processed in North America, that's both soy and canola you have to ask yourself what's China going to do for fat? Are they going to buy finished product? Are they going to buy seed? Are they going to buy more palm oil? I don't know. I think that's what I mean. Bob, do you want to add anything?

最終，隨著北美加工的油籽數量（包括大豆和油菜籽），您必須問自己中國將如何處理脂肪？他們會購買成品嗎？他們要買種子嗎？他們會購買更多棕櫚油嗎？我不知道。我想這就是我的意思。鮑勃，你想補充什麼嗎？

I mean, Randy, I think you touched on what's most important, and that's really global demand. And in the fuel sector, as you pointed out, Palm can kind of go into conventional -- find its way in the conventional fuel, but what I would -- what we pay attention to here is what is biofuel policy? How is that shaping up as we get into 2025, 2026 and beyond.

我的意思是，蘭迪，我認為你談到了最重要的事情，那就是真正的全球需求。在燃料領域，正如您所指出的，Palm 可以進入傳統領域——在傳統燃料中找到自己的出路，但我想——我們在這裡關注的是生物燃料政策是什麼？當我們進入 2025 年、2026 年及以後時，情況會如何？

What we saw was high prices caused a lot of new supply to come to market of waste oils. So there's a bigger opportunity for more regulation and more policy that's going to support biofuel production. That's really where demand needs to come from to absorb this additional supply we've seen on the market.

我們看到的是高價格導致大量新供應進入廢油市場。因此，有更大的機會採取更多監管和政策來支持生物燃料生產。這確實是需求的來源，以吸收我們在市場上看到的額外供應。

Great. And then maybe just one on the -- on your comments on SAF earlier. I mean, is it -- it seems from discussions with many people that I think the expectation on the commercial side, is that you're probably looking at renewable diesel plus $1 to $2 a gallon in terms of what kind of the SAF economics looks like. Is that a fair range? Is it too early to say at this point? And I know there are some cost and yield impacts. I mean if that's the case, what sort of margin accretion are you talking about in terms of like SAF production versus RD production?

偉大的。然後也許只是關於您之前對 SAF 的評論。我的意思是，從與許多人的討論來看，我認為商業方面的期望是，您可能會考慮可再生柴油加上每加侖 1 至 2 美元，以了解 SAF 的經濟狀況。這是一個公平的範圍嗎？現在說這個還太早嗎？我知道這會對成本和產量產生一些影響。我的意思是，如果是這樣的話，您所說的 SAF 生產與 RD 生產等方面的利潤增長是怎樣的？

This is Matt. I would say that from a SAF margin standpoint, where we have -- in the discussions that we're having right now and they are going to be well within our expectations of our investment thesis and both from a volume as well as a margin standpoint. So we -- the plant has yet to turn on, and we're taking the right steps in order to get this in a place where we think it needs to be. And so I would just say stay tuned.

這是馬特。我想說的是，從 SAF 利潤率的角度來看，我們現在正在進行的討論中，它們將完全符合我們對投資理論的預期，無論是從數量還是利潤率的角度來看。所以我們——該工廠尚未啟動，我們正在採取正確的步驟，以便將其送到我們認為需要的地方。所以我想說請繼續關注。

The next question comes from Ben Kallo from Baird.

下一個問題來自貝爾德 (Baird) 的本卡洛 (Ben Kallo)。

Just on the guidance and SAF tie-in. Could you just talk to us about how you guys have factored in the tie-in and how much that impacts the guide. (inaudible) when we do a bridge for next year, we can think about that.

只是關於導引和 SAF 的搭配。您能否與我們談談您如何考慮搭配以及這對指南的影響有多大。 （聽不清楚）當我們明年建造一座橋樑時，我們可以考慮這一點。

So there is no SAF in the '24 guidance. And the tie-in DGD 3 is going to do a catalyst change in Q2 and be ready for the tie-in. So we won't have to be shutting down our RD facility as the SAF plant is up in. So we're staggering that to have the DGD 3 line ready to go for a full run as we tie in the SAF line. And as mentioned, we'll be operational in Q4 on the SAF side.

所以'24指南中沒有SAF。搭配的 DGD 3 將在第二季進行催化劑改變，並為搭配做好準備。因此，隨著 SAF 工廠的投入使用，我們不必關閉我們的研發設施。如前所述，我們將在第四季度在新加坡武裝部隊方面投入營運。

Okay. On the Food segment, the one-timer should we look as a one-timer expiration or whatever? Or is that going to carry into Q2? Or how should we think about Q2? I know that Nestle that they expect to recovery today in Q2, but how do we think about Q2 food volume (inaudible)?

好的。在食品領域，我們應該將一次性視為一次性到期還是其他？或者這會延續到第二季​​嗎？或者說我們應該如何看待Q2？我知道雀巢預計今天第二季會復甦，但我們如何看待第二季的食物量（聽不清楚）？

Yes. I mean I think KPMG always gets mad at me when I call it a one-timer, so I can't use that word Ben Kallo. But -- at the end of the day, you got to add back that 25, and that's really the solid run rate of what we would say for the Food segment this year. And then next year, as Bob was alluding then hopefully, we start to build a portfolio of sales on the new peptides here.

是的。我的意思是，當我稱其為“一次性”時，畢馬威總是對我很生氣，所以我不能使用“Ben Kallo”這個詞。但是，歸根結底，你必須加回 25，這確實是我們今年食品部門所說的穩定運行率。然後明年，正如鮑勃當時所暗示的那樣，我們將開始在這裡建立新肽的銷售組合。

The next question comes from Heather Jones from Heather Jones Research.

下一個問題來自希瑟瓊斯研究中心的希瑟瓊斯。

Just first, I would want to talk about -- so Randy, you alluded to this earlier, but the ARB for Chinese UCO and Brazilian tallow has closed and for Chinese UCO bought pretty wide margin. So just thinking about -- you've mentioned how these RD plants haven't been ramping as they said they would, et cetera. But given that, that is closed in DGD now U.S. fats are cheaper, just if DGD keeps running at its normal speed, wouldn't that result in a substantial improvement in domestic fats in the U.S.

首先，我想談談——蘭迪，你之前提到過這一點，但中國 UCO 和巴西牛脂的 ARB 已經關閉，中國 UCO 購買了相當大的利潤。所以想一想——你提到了這些研發工廠並沒有像他們所說的那樣擴大產能，等等。但考慮到，現在DGD已經關閉了，美國的油脂更便宜了，如果DGD繼續以正常速度運行，那豈不是會導緻美國國內油脂的大幅改善。

I think Matt and Bob and I are looking at each other. I mean, strategically, we made a decision that we didn't as collectively as the owner and part owner JV owner of DGD, we felt it was important to own the world arbitrage, and we're making investments in Port Arthur to be able to unload directly there. So ultimately, we can own that because that's important to margin management in the long term. We've always said the #1 thing for DGD was it's real estate that it owns and operates on the Gulf Coast, and that's both for inbound and outbound.

我想馬特、鮑伯和我正在互相看著對方。我的意思是，從戰略上講，我們做出了一個決定，我們不像DGD 的所有者和部分所有者合資企業所有者那樣集體，我們認為擁有世界套利很重要，並且我們正在亞瑟港進行投資，以便能夠直接在那裡卸載。所以最終，我們可以擁有它，因為從長遠來看，這對利潤管理很重要。我們一直說，DGD 的第一要務是它在墨西哥灣沿岸擁有和經營的房地產，無論是入境還是出境。

And so the answer is, from time to time, one geography in the world would be a premium to the other. You're watching that trend right now as the U.S. and Canada are cheaper than imports. And so that should be supportive as we go forward. Now ultimately, as you're building a portfolio of suppliers and inputs into the DGD system, you've got different markets around the world, meaning finished product markets that require different or you can qualify different fats for different carbon intensity. So you're always going to be playing that arbitrage. And that's what gave DGD the superior profitability of anybody out there today in the world. So it will move from time to time, but I don't see it going all domestic then a portion of it back import because that's just logistically impossible at the scale we are at. I don't know, Matt, you're (inaudible).

所以答案是，有時，世界上的一個地理區域會比另一個地理區域更有價值。您現在正在關注這一趨勢，因為美國和加拿大的產品比進口產品便宜。因此，這應該會支持我們前進。現在，最終，當您在DGD 系統中建立供應商和投入組合時，您將在世界各地擁有不同的市場，這意味著需要不同的成品市場，或者您可以針對不同的碳強度對不同的脂肪進行資格認證。所以你總是會進行套利。這就是 DGD 擁有當今世界上任何一家公司都無法比擬的獲利能力的原因。因此，它會不時發生變化，但我不認為它會全部進入國內，然後一部分又進口，因為以我們現在的規模，這在物流上是不可能的。我不知道，馬特，你（聽不清楚）。

I would just say -- just to be clear, the driving decision for us in DGD is margin. And it senses to buy the cheapest available feedstock, all things considered, including the CI score. So to your question, in terms of lower domestic price, that's exactly where DGD is focusing its origination efforts right now.

我只想說——澄清一下，我們 DGD 的驅動決策是利潤。考慮到所有因素，包括 CI 分數，購買最便宜的可用原料是有意義的。因此，對於你的問題，就較低的國內價格而言，這正是 DGD 目前重點關注的領域。

Okay. And then my follow-up is on [Ward]. So Randy, I think you mentioned on the Q4 call, something about dumping like 30-some million pounds in a landfill. -- it's been down for almost 1.5 years. I mean, can you give us -- I mean, dumping in a land role is pretty expensive and obviously not getting true finished product pricing. So just wondering if you could give us a sense of what -- how -- what's the magnitude of drag that spindles business, just so we can give us as how that by itself could help the remainder of the year?

好的。然後我的後續行動是[沃德]。蘭迪，我想你在第四季度的電話會議上提到了一些關於在垃圾掩埋場傾倒 30 多百萬英鎊的事情。 ——已經下降了近 1.5 年。我的意思是，你能給我們——我的意思是，在土地上傾銷是相當昂貴的，而且顯然沒有得到真正的成品定價。因此，我想知道您能否讓我們了解一下，對業務的拖累有多大——如何——有多大，這樣我們就可以告訴我們，這本身對今年剩餘時間有何幫助？

I'll try to answer that, Heather. So the -- at the end of the day, when that plant went down, I mean we had a series of supply contracts and a series of customers that we're relying on the word plant to operate in order to process their volume. And so when that plant went down, then there was all of a sudden this volume that had to find a place to be processed. And so we did a massive game of shifting around in terms of trying to put as much of that volume that into our other plants.

我會盡力回答這個問題，希瑟。因此，歸根結底，當工廠倒閉時，我的意思是我們有一系列供應合約和一系列客戶，我們依靠「工廠」這個詞來運作以處理他們的數量。因此，當該工廠關閉時，突然間必須找到一個地方進行處理。因此，我們做了一場大規模的轉變，試圖將盡可能多的產量投入​​到我們的其他工廠。

But as a result, there was still some product that resulted in -- as Bob was talking about the next best alternative, which was a landfill. And so in terms of quantifying that, I don't have that specific number for you, but what I can say as that plant is up and running now and our Eastern Shore plants are essentially at this point running on all 12 cylinders. And so as of April 1.

但結果，仍然有一些產品產生——正如鮑勃所說的下一個最佳替代方案，那就是垃圾掩埋場。因此，就量化而言，我沒有具體的數字給您，但我可以說的是，該工廠現在已啟動並正在運行，而我們的東海岸工廠目前基本上所有 12 個氣缸都在運行。從 4 月 1 日起也是如此。

This concludes our question-and-answer session. I would like to turn the conference back over to Randy Stuewe for closing remarks.

我們的問答環節到此結束。我想將會議轉回蘭迪·斯圖威 (Randy Stuewe) 致閉幕詞。

Everyone. Appreciate all the questions. As always, if you have additional questions, reach out to Suann. Stay safe. Have a great day, and I'll turn it back over to the operator to conclude our call. Thank you.

每個人。感謝所有的問題。像往常一樣，如果您還有其他問題，請聯絡 Suann。注意安全。祝您有美好的一天，我會將其轉回給接線員以結束我們的通話。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。