Ecovyst Inc (ECVT) 2023 Q4 法說會逐字稿

Good morning, My name is PoE, and I'll be your conference operator today. Welcome to equal this fourth quarter 2023 Earnings Conference Call and Webcast. Please note, today's call is being recorded and should run approximately one one hour. (Operator Instructions)

早上好，我叫 PoE，今天我將擔任您的會議操作員。歡迎參加 2023 年第四季財報電話會議和網路廣播。請注意，今天的通話正在錄音，大約持續一小時。（操作員說明）

At this time, I'll turn things over to Mr. Gene Shiels, Director of Investor Relations. Please go ahead.

這次，我將把事情交給投資者關係總監 Gene Shiels 先生。請繼續。

Thank you, operator. Good morning and welcome to the Aecon. This fourth quarter and full year 2023 earnings call. With me on the call this morning are bidding. You could this Chief Executive Officer and Mike Feehan because as Chief Financial Officer. Following our prepared remarks this morning, we'll take your questions.

謝謝你，接線生。早安，歡迎來到愛康酒店。本次第四季及 2023 年全年財報電話會議。今天早上我打電話時正在競標。你可以擔任執行長和麥克費漢，因為擔任財務長。在我們今天早上準備好的發言之後，我們將回答你們的問題。

Please note that some of the information shared today is forward-looking information, including information about the company's financial and operating performance strategies, our anticipated end-use demand trends and our 2024 financial outlook.

請注意，今天分享的一些資訊是前瞻性訊息，包括有關公司財務和經營績效策略、我們預期的最終用途需求趨勢以及我們的 2024 年財務展望的資訊。

This information is subject to risks and uncertainties that could cause the actual results and the implementation of the Company's plans to vary materially from any forward-looking information provided today speaks only as of this date.

這些資訊存在風險和不確定性，可能導致實際結果和公司計劃的實施與今天提供的任何前瞻性資訊有重大差異，這些資訊僅代表截至目前的情況。

These risks are discussed in the Company's filings with the SEC. Reconciliations of non-GAAP financial measures mentioned in today's call with their corresponding GAAP measures can be found in our earnings release and the presentation materials posted on the Investors section of our website that e-commerce.com. I'll now turn the call over to Kurt bidding. Curt?

這些風險在公司向 SEC 提交的文件中進行了討論。今天電話會議中提到的非公認會計原則財務指標與其相應的公認會計原則指標的對帳可以在我們的收益報告和我們網站 ecommerce.com 投資者部分發布的演示材料中找到。我現在將把電話轉給庫爾特出價。生硬？

Thank you, Jean, and good morning. First, I want to thank my EcoBoost colleagues for delivering a strong finish to 2023. Despite the economic uncertainty and operational challenges that we faced last year, our EcoBoost colleagues remain dedicated to their core purpose of delivering high quality products and reliable services to our valued customers despite the macroeconomic uncertainty relative stability and demand fundamentals across the majority of our end uses for both Veeco services and advanced materials and catalyst helped Veeco this deliver solid financial results for the fourth quarter of 2023.

謝謝你，吉恩，早安。首先，我要感謝我的 EcoBoost 同事為 2023 年畫上了圓滿的句點。儘管我們去年面臨經濟不確定性和營運挑戰，但我們的EcoBoost 同事仍然致力於為我們尊貴的客戶提供高品質產品和可靠服務的核心目標，儘管宏觀經濟不確定性相對穩定，並且我們大多數最終用途的需求基本面Veeco 服務以及先進材料和催化劑幫助 Veeco 在 2023 年第四季度實現了穩健的財務業績。

High refinery utilization, favorable gasoline demand and the trend toward higher octane and cleaner burning fuels continued to drive output production in 2023, providing support for our regeneration services business where volume was up compared to the fourth quarter of 2023.

高煉油廠利用率、有利的汽油需求以及更高辛烷值和更清潔燃燒燃料的趨勢繼續推動2023 年產量的增長，為我們的再生服務業務提供支持，該業務的產量較2023 年第四季度有所增加。

Sales volume for virgin sulfuric acid was also up compared to the fourth quarter of 2023, albeit with weaker pricing dynamics associated with softer macroeconomic conditions, particularly in industrial applications in Advanced Materials and catalysts.

與 2023 年第四季相比，純硫酸的銷量也有所增加，儘管宏觀經濟條件疲軟導致價格動態減弱，特別是在先進材料和催化劑的工業應用中。

Fourth quarter sales were up considerably compared to the fourth quarter of 2022, while polyethylene sales volume was lower compared to the prior year fourth quarter. Higher pricing and strong demand for hydrocracking catalyst and customized catalysts applications contributed to the sales growth.

與 2022 年第四季相比，第四季銷售額大幅成長，而聚乙烯銷量與去年第四季相比有所下降。較高的定價以及對加氫裂解催化劑和客製化催化劑應用的強勁需求推動了銷售成長。

Given these volume and pricing dynamics, our fourth quarter 2023 adjusted EBITDA was $70 million. During the fourth quarter, we maintained our focus on the strategic initiatives and operational priorities that we believe are positioning EcoSys to deliver strong growth in the future in our core and industrial applications as well as in the emerging applications we discussed in our November Investor Day for the Zeolyst Joint Venture.

鑑於這些銷售和定價動態，我們 2023 年第四季調整後的 EBITDA 為 7,000 萬美元。在第四季度，我們繼續關注戰略舉措和營運優先事項，我們相信這些舉措和營運重點將使EcoSys 能夠在我們的核心和工業應用程式以及我們在11 月投資者日討論的新興應用程式中實現未來的強勁成長。

These emerging applications include the ongoing expansion of sustainable fuel production, both for renewable diesel and sustainable aviation, fuel and catalyst, specifically designed for advanced recycling of plastic waste. We are benefiting from the growth in renewable diesel today, and we expect our zeolite technologies for alcohol alcohol to jet SAF production to gain additional momentum this year.

這些新興應用包括持續擴大永續燃料生產，包括再生柴油和永續航空、燃料和催化劑，專門為塑膠廢棄物的先進回收而設計。今天，我們受益於再生柴油的成長，我們預計我們的醇類沸石技術將在今年獲得更多動力，以噴射 SAF 生產。

For our advanced silicas portfolio, we highlighted a number of nascent platforms, including our AlphaCat advanced filters and our Alpha Select functionalized filters for use in applications such as immobilized enzymes, carbon capture and clean water.

對於我們的先進二氧化矽產品組合，我們重點介紹了許多新興平台，包括我們的 AlphaCat 先進過濾器和 Alpha Select 功能化過濾器，用於固定化酵素、碳捕獲和清潔水等應用。

I'm pleased to announce that during the fourth quarter, we achieved our first sale of advanced silicas for enzyme applications, and we anticipate additional sales this year as we look to expand our support for all these emerging applications.

我很高興地宣布，在第四季度，我們首次銷售了用於酵素應用的先進二氧化矽，我們預計今年會有更多銷售，因為我們希望擴大對所有這些新興應用的支援。

In light of our favorable financial results for the quarter, cash generation remained positive, providing for reduction in our net debt leverage ratio. We ended the year with a net debt leverage ratio of three times, down from 3.2 times at the end of the third quarter.

鑑於我們本季良好的財務業績，現金產生量仍然為正，從而降低了我們的淨債務槓桿率。年末我們的淨負債槓桿率為三倍，低於第三季末的 3.2 倍。

In terms of capital allocation priorities, continued reduction in our leverage ratio remains a key focus as we look to make substantial progress this year toward our target leverage ratio of below 2.5 times.

在資本配置重點方面，持續降低槓桿率仍然是重點，我們希望今年在槓桿率低於2.5倍的目標方面取得實質進展。

And lastly, over the past three years, we have made significant progress in supporting our customers with more sustainable products and technologies in addition, we have worked to drive more sustainable business practices across our organization, consistent with the spirit of continuous improvement.

最後，在過去的三年裡，我們在為客戶提供更永續的產品和技術方面取得了重大進展，此外，我們還本著持續改進的精神，努力在整個組織內推動更永續的業務實踐。

Two years ago, we were recognized by EcoVadis with a silver medal sustainability rating last year. In recognition of our continued progress, we achieved gold medal status with EcoVadis. I'm fleet now pleased to report that each of this recently achieved platinum medal status with EcoVadis in recognition of our incremental efforts to integrate the principles of sustainability and corporate social responsibility into our overall business practices. This recognition places Ecovation in the top 1% of all companies rated in our peer group.

兩年前，我們去年獲得了 EcoVadis 永續發展銀牌評級。為了表彰我們不斷取得的進步，我們獲得了 EcoVadis 金牌。我現在很高興地向您報告，最近每一項都獲得了 EcoVadis 的白金獎章，以表彰我們將永續發展原則和企業社會責任融入到我們整體業務實踐中的不斷努力。這項認可使 Ecovation 在我們同業組中所有被評為的公司中名列前 1%。

As we turn to slide 6, I'll provide an update on our near term demand outlook. We believe the long-term demand trends for the end users we serve remain very compelling. And I want to emphasize that the longer term and use outlook, growth expectations and financial targets we shared in our November Investor Day, remain intact.

當我們轉向幻燈片 6 時，我將提供有關近期需求前景的最新資訊。我們相信，我們所服務的最終用戶的長期需求趨勢仍然非常引人注目。我想強調的是，我們在 11 月投資者日分享的長期和使用前景、成長預期和財務目標保持不變。

However, for 2024, we believe there's significant near-term economic uncertainty arising from a number of factors, including persistent inflation, rising interest rates, de-stocking, geopolitical tensions and weak demand in Europe and China. Given the current uncertain macro economic environment, we are cautious about the trajectory of near-term demand trends.

然而，對於2024年，我們認為近期經濟存在重大不確定性，原因包括持續通膨、利率上升、去庫存、地緣政治緊張以及歐洲和中國需求疲軟。鑑於當前宏觀經濟環境的不確定性，我們對近期需求趨勢的軌跡持謹慎態度。

As a result, while we anticipate stronger demand fundamentals in the second half of 2024, we have tempered our expectations for the first half of the year. For our regeneration services business, we expect high refinery utilization to stable gasoline demand and increased exports in 2024 as Alcoa demand continues to be driven by tightening fuel standards such as Tier 3.

因此，雖然我們預計 2024 年下半年需求基本面將更加強勁，但我們下調了對上半年的預期。對於我們的再生服務業務，我們預計煉油廠的高利用率將穩定汽油需求，並在 2024 年增加出口，因為美國鋁業的需求繼續受到 Tier 3 等燃料標準收緊的推動。

We expect these fundamentals will continue to provide a favorable backdrop for our regeneration services business this year for virgin sulfuric acid, in light of the significant impact that winter storm Eliot and the production headwinds we faced in 2023 had on sulfuric acid sales.

鑑於冬季風暴艾略特和我們在 2023 年面臨的生產逆風對硫酸銷售的重大影響，我們預計這些基本面將繼續為我們今年的純硫酸再生服務業務提供有利的背景。

We expect volume recovery for virgin sulfuric acid in 2024, specifically for our sales into the production of nylon intermediates, while destocking was a factor in the demand softness we experienced in 2023.

我們預計原生硫酸的銷售量將在 2024 年恢復，特別是用於尼龍中間體生產的銷售，而去庫存是我們在 2023 年經歷需求疲軟的因素。

We believe the destocking phase is behind us. However, the global demand outlook for Engineered Plastics remains uncertain in part due to surplus capacity and continued demand weakness in Asia.

我們相信去庫存階段已經過去。然而，工程塑膠的全球需求前景仍不確定，部分原因是產能過剩和亞洲需求持續疲軟。

We expect sulfuric acid demand for the mining applications that we service to remain stable in 2024, with ongoing copper expansion projects in the US and the longer-term projected global supply deficit for copper underpinning demand.

我們預計，隨著美國正在進行的銅擴建項目以及長期預計的全球銅供應短缺支撐需求，我們所服務的採礦應用的硫酸需求將在 2024 年保持穩定。

We believe the economics of these expansion projects remain favorable with current copper prices for the wide range of industrial applications we serve. We expect the portfolio effect will provide a level of stability for virgin sulfuric acid sales in 2024 with stable to positive demand in many end use applications serving to counter softer demand in others.

我們相信，對於我們所服務的廣泛工業應用而言，以目前的銅價來看，這些擴建項目的經濟效益仍然有利。我們預計，投資組合效應將為 2024 年純硫酸銷售提供一定程度的穩定性，許多最終用途應用的需求穩定至積極，從而抵消其他需求疲軟的影響。

We expect relative stability and end uses such as lead acid batteries, water treatment and chlor alkali to balance the potential for eroding demand in end uses, such as paper and packaging, where demand weakness is being driven by capacity rationalization in certain geographies.

我們預期鉛酸電池、水處理和氯鹼等最終用途的相對穩定性將平衡紙張和包裝等最終用途需求下降的潛力，某些地區的產能合理化推動了這些用途的需求疲軟。

Overall, for the first half of 2024, we see softer industrial demand for virgin sulfuric acid. And while significant amount of our virgin sulfuric acid sales are under long-term contract, we currently see weaker market sentiment resulting in pricing pressure for short dated contracts and spot sales for our 1032 catalyst activation business.

整體而言，2024 年上半年，我們預期工業對純硫酸的需求將會疲軟。雖然我們大量的原生硫酸銷售是長期合約，但我們目前看到市場情緒疲軟，導致短期合約和 1032 催化劑活化業務現貨銷售的定價壓力。

We see demand remaining strong in 2024, supported by continued growth in sustainable fuel production and expanded customer interest. Likewise, we see stable demand for our Treatment Services business with demand and activity levels highly correlated to factors such as consumer spending.

我們預計，在永續燃料生產持續成長和客戶興趣擴大的支持下，2024 年需求依然強勁。同樣，我們看到治療服務業務的需求穩定，需求和活動量與消費者支出等因素高度相關。

Turning to Advanced Materials and catalysts for advanced silicas. We believe that the inventory destocking that adversely impacted demand for polyethylene catalyst over the second half of 2023 has run its course, while market forecasts are projecting global polyethylene demand to be up 2% to 3% in 2024.

轉向先進材料和先進二氧化矽催化劑。我們認為，對 2023 年下半年聚乙烯催化劑需求產生不利影響的庫存去庫存已經結束，而市場預測預計 2024 年全球聚乙烯需求將成長 2% 至 3%。

We believe that excess global capacity will continue to weigh on operating rates. As such, we are not projecting a significant near term change in the demand for polyethylene catalysts, but the prospect of a stronger second half of this year exists.

我們認為，全球產能過剩將持續影響開工率。因此，我們預計聚乙烯催化劑的需求近期不會發生重大變化，但今年下半年的需求強勁的前景是存在的。

We believe we are well positioned for a recovery in demand, particularly given our representation in North American and Middle Eastern markets where raw material and energy costs provide more favorable production economics following positive sales momentum in the fourth quarter.

我們相信，我們已經做好了需求復甦的準備，特別是考慮到我們在北美和中東市場的代表性，在第四季度的積極銷售勢頭之後，原材料和能源成本提供了更有利的生產經濟效益。

In North America, we expect modestly lower operating rates in the mid 80% range with weaker first quarter sales as customers work through end-of-year inventory in the Middle East, we expect operating rates to remain robust, supported by a cost-advantaged feedstock position and strong export activity for Europe. We expect polyethylene demand to decline in 2024 due to the poor economic climate.

在北美，我們預計開工率將小幅下降，在 80% 左右，第一季銷售疲軟，因為客戶正在處理中東的年末庫存，我們預計開工率將保持強勁，並受到成本優勢的支持歐洲的原料狀況和強勁的出口活動。由於經濟環境不佳，我們預計 2024 年聚乙烯需求將會下降。

And in Asia Pacific, we expect the Lunar New Year and sluggish restocking activity to be a factor in the first quarter. Within our Zeolyst Joint Venture, our core applications include hydrocracking catalysts to petroleum-based fuels and zeolites used in emission control applications.

在亞太地區，我們預期農曆新年和補貨活動低迷將成為第一季的一個因素。在我們的 Zeolyst 合資企業中，我們的核心應用包括石油基燃料的加氫裂解催化劑以及排放控制應用中使用的沸石。

Hydrocracking catalysts, our high value add fixed bed catalyst. That refineries change out every three to four years, even though we expect refinery margins to remain healthy for 2020 for many large customers completed catalyst change-outs last year.

加氫裂解催化劑，我們的高附加價值固定床催化劑。煉油廠每三到四年更換一次，儘管我們預計煉油廠利潤率在 2020 年將保持健康，因為許多大客戶去年完成了催化劑更換。

So we believe 2023 was likely a near-term peak year for sales of hydrocracking catalyst. And we currently expect that 2024 will be a lower cycle year for hydrocracking catalyst sales.

因此，我們認為 2023 年可能是加氫裂解催化劑銷售的近期高峰年。我們目前預計 2024 年將是加氫裂解催化劑銷售的較低週期年。

In terms of sales cadence, we have lowered our sales projections for the first quarter due to revised order timing for our sales into emission control applications. We expect the current economic environment will translate into lower production and delivery of heavy duty diesel vehicles.

就銷售節奏而言，由於排放控制應用程式銷售的訂單時間修改，我們降低了第一季的銷售預測。我們預計當前的經濟環境將導致重型柴油車的產量和交付量下降。

Turning to the production of sustainable fuels, which include both renewable diesel and sustainable aviation fuel or SAF, our zeolites are used in the waxing phase of those sustainable fuels production processes. We expect robust sales in 2024 with sales likely stronger in the second half of the year.

談到可持續燃料的生產，包括可再生柴油和可持續航空燃料或 SAF，我們的沸石用於這些可持續燃料生產過程的打蠟階段。我們預計 2024 年銷售將強勁，下半年銷售可能會更強勁。

North American renewable diesel and sustainable aviation fuel capacity is projected to grow by approximately 33% this year, supported by attractive financial incentives with eight production facilities expected to start up in 2024 for the European Union, renewable diesel and SAF capacity is projected to grow by 43% this year, with nine facilities expected to start up in 2024.

在有吸引力的財政激勵措施的支持下，北美再生柴油和永續航空燃料產能今年預計將成長約33%，預計2024 年歐盟將啟動8 個生產設施，再生柴油和永續航空燃料產能預計將成長今年佔 43%，預計 2024 年將啟動 9 個設施。

Looking forward, we see good progress in licensor activity, supporting pilot production of SAF using alternate technology referred to as alcohol to jet. Our zeolite had a key role to play in the liberalization phase of this emerging technology where our catalysts are used to build the carbon carbon chains in the production of SAF.

展望未來，我們看到許可方活動取得良好進展，支持使用稱為酒精噴射的替代技術進行 SAF 的試生產。我們的沸石在這項新興技術的自由化階段發揮了關鍵作用，我們的催化劑用於在 SAF 生產中建立碳碳鏈。

We believe the focus on advanced recycling technologies for plastic waste provides significant growth opportunities for EcoBoost. We continue to work with industry leaders on the application of zeolites in these recycling processes in which our Opal Infinity family of catalysts provides a step change reduction in thermal intensity for catalytic paralysis and where ZI.

我們相信，對塑膠廢物先進回收技術的關注為 EcoBoost 提供了巨大的成長機會。我們繼續與產業領導者合作，在這些回收過程中應用沸石，其中我們的 Opal Infinity 系列催化劑可逐步降低催化癱瘓和 ZI 的熱強度。

Catalyst can be used to enhance the quality of paralysis oil, providing higher value end products and expanding potential for use as feedstocks and chemical production. As we discussed in our recent Investor Day, we have already had pilot sales of our catalysts for advanced recycling this year.

催化劑可用於提高麻痺油的質量，提供更高價值的最終產品並擴大用作原料和化學品生產的潛力。正如我們在最近的投資者日討論的那樣，今年我們已經試銷了先進回收催化劑。

There are 12 advanced recycling plants for plastic waste recycling expected to be commissioned. And with the momentum we see in this area, we continue to expect commercial sales in early 2025.

預計將有 12 座先進的塑膠廢棄物回收廠投入使用。憑藉我們在該領域看到的勢頭，我們繼續預計 2025 年初實現商業銷售。

I'll now turn the call over to Mike for a more detailed discussion of our fourth quarter and full year financial results.

我現在將把電話轉給麥克，以便更詳細地討論我們第四季和全年的財務表現。

Thank you, Curt. I will begin with a review of our fourth quarter and full year 2023 financial results. Fourth quarter sales, including our proportionate 50% share of sales from the Zeolyst Joint Venture were $226 million compared to $223 million in the fourth quarter of 2022.

謝謝你，柯特。我將首先回顧我們第四季和 2023 年全年的財務表現。第四季的銷售額（包括我們佔 Zeolyst 合資企業 50% 的銷售額比例）為 2.26 億美元，而 2022 年第四季的銷售額為 2.23 億美元。

Higher sales volume across both businesses and the benefit of continued favorable pricing within Advanced Materials and catalyst was largely offset by the $9 million impact from the pass-through of lower sulfur costs.

兩家業務的銷售增加以及先進材料和催化劑持續優惠定價的好處在很大程度上被硫磺成本下降帶來的 900 萬美元影響所抵消。

As well as the pass-through of lower natural gas and freight costs within ITO Services adjusted EBITDA for the fourth quarter was $70 million, up 1% over the prior year fourth quarter. Favorable pricing and higher sales volume were partially offset by lower net pricing and equal services on lower raw material pass-through pricing.

加上 ITO Services 天然氣和貨運成本下降的轉嫁，第四季調整後的 EBITDA 為 7,000 萬美元，比去年第四季成長 1%。有利的定價和較高的銷售量被較低的淨定價和較低的原材料轉嫁定價的平等服務部分抵消。

The consolidated adjusted EBITDA margin for the fourth quarter was 31%, in line with the fourth quarter of 2022 on a full year basis, total sales for 2023, including our proportionate 50% share of sales from the Zeolyst Joint Venture were $848 million compared to $953 million in 2022.

第四季綜合調整後EBITDA 利潤率為31%，與2022 年第四季全年水準一致，2023 年總銷售額（包括我們從Zeolyst 合資企業中所佔的50% 銷售額份額）為8.48 億美元，而2023 年的總銷售額為8.48 億美元。

Of the change in sales, $86 million was associated with the pass-through effect on pricing of lower sulfur costs. The balance of the decrease reflects lower sales volume from virgin sulfuric acid, lower demand for polyethylene catalyst and the relative timing of niche custom catalyst sales.

在銷售變動中，8,600 萬美元與硫磺成本降低定價的傳遞效應有關。下降的其餘部分反映了純硫酸銷量的下降、聚乙烯催化劑需求的下降以及利基客製化催化劑銷售的相對時機。

This was partially offset by higher average selling prices across both segments. Full year 2023 adjusted EBITDA was $260 million, down 6% compared to $277 million for 2022, driven by the lower sales volume along with higher unplanned repair and maintenance costs. But full year 2023 adjusted EBITDA margin was 31% up compared to 29% in 2022.

這被兩個細分市場較高的平均售價部分抵銷。2023 年全年調整後 EBITDA 為 2.6 億美元，比 2022 年的 2.77 億美元下降 6%，原因是銷售下降以及計劃外維修和維護成本上升。但 2023 年全年調整後 EBITDA 利潤率比 2022 年的 29% 成長了 31%。

As we move to the next slide, I'll highlight the primary components of the change in adjusted EBITDA compared to the fourth quarter of the prior year. Similar to the last several quarters, average sulphur costs for the fourth quarter of 2023 were lower than in the prior year.

當我們轉到下一張投影片時，我將重點介紹與上一年第四季相比調整後 EBITDA 變化的主要組成部分。與過去幾季類似，2023 年第四季的平均硫磺成本低於去年同期。

Pass-through of these lower sulfur costs had an impact of $9 million in variable cost with a corresponding reduction in average selling prices. As such, the lower sulfur cost pass-through on sales during the quarter had no impact on adjusted EBITDA.

硫磺成本降低的轉嫁影響了 900 萬美元的變動成本，平均銷售價格也相應下降。因此，本季銷售中較低的硫磺成本轉嫁對調整後的 EBITDA 沒有影響。

Our price to variable cost ratio continues to be favorable while variable costs were lower for the quarter. The pass-through pricing on some of these costs, including natural gas and freight were also lower. However, implemented and base price increases continued to be favorable, generating a positive price to cost ratio.

我們的價格與變動成本比率持續有利，而本季變動成本較低。其中一些成本（包括天然氣和運費）的轉嫁定價也較低。然而，已實施的基本價格上漲仍然有利，產生了積極的性價比。

Turning to the segment results, we will begin with E-Co services. Eco Services sales for the fourth quarter were $141 million compared to $160 million in the fourth quarter of 2022. The change in sales primarily reflects the pass-through of lower sulfur costs of $9 million and lower pricing in regeneration services associated with the pass-through of lower natural gas and freight costs.

談到分部業績，我們將從E-Co服務開始。第四季生態服務銷售額為 1.41 億美元，而 2022 年第四季為 1.6 億美元。銷售額的變化主要反映了硫磺成本降低 900 萬美元的轉嫁以及與天然氣和貨運成本降低相關的再生服務定價的降低。

These factors were partially offset by higher regeneration services volume and higher demand for virgin sulfuric acid for mining and opportunistic spot sales because Services adjusted EBITDA was $48 million in the fourth quarter compared to $54 million in the prior year, while demand remained strong in both regeneration services and virgin sulfuric acid.

這些因素被再生服務量的增加以及採礦和機會主義現貨銷售對純硫酸的需求增加所部分抵消，因為第四季度服務調整後的EBITDA 為4800 萬美元，而上一年為5400 萬美元，而再生需求仍然強勁服務和純硫酸。

The decrease in adjusted EBITDA was driven by lower net pricing associated with lower raw material pass-through pricing. E-co Services' adjusted EBITDA margin for the fourth quarter was 34%, in line with the fourth quarter of 2022.

調整後 EBITDA 的下降是由於原料轉嫁定價下降導致淨定價下降。E-co Services 第四季調整後 EBITDA 利潤率為 34%，與 2022 年第四季持平。

Turning to Advanced Materials and catalysts. Total fourth quarter sales for Advanced Materials and catalysts, including our 50% proportionate share of Zeolyst Joint Venture sales, were $84 million, up $21 million or nearly 34% compared to the fourth quarter of 2022 or advanced silica's fourth-quarter sales of $31 million were up 37% compared to the year-ago quarter, reflecting higher sales across all product lines.

轉向先進材料和催化劑。先進材料和催化劑第四季的總銷售額（包括我們在Zeolyst 合資公司銷售額中所佔50% 的份額）為8,400 萬美元，比2022 年第四季或高級二氧化矽第四季3,100 萬美元的銷售額增加了2,100 萬美元，即近34%與去年同期相比成長了 37%，反映出所有產品線的銷售額都有所成長。

While sales volume for polyethylene catalysts was lower compared to the fourth quarter of 2022, favorable pricing and the higher sales of niche custom catalysts drove the increase year over year. For the Zeolyst Joint Venture, sales were $53 million, up $13 million or 32% compared to the fourth quarter of 2022.

儘管聚乙烯催化劑的銷量低於 2022 年第四季度，但有利的定價和利基定制催化劑的較高銷量推動了同比增長。Zeolyst 合資公司的銷售額為 5,300 萬美元，比 2022 年第四季增加 1,300 萬美元，增幅為 32%。

Primarily driven by higher sales of hydrocracking catalysts. Fourth quarter 2023 adjusted EBITDA for Advanced Materials and catalysts was $27 million up $7 million or 34% compared to the year ago quarter, with the increase driven by higher pricing and sales volume. Adjusted EBITDA margin for Advanced Materials and catalyst was 32% in line with the fourth quarter of 2022.

主要受到加氫裂解催化劑銷量增加的推動。2023 年第四季先進材料和催化劑的調整後 EBITDA 為 2,700 萬美元，比去年同期成長 700 萬美元，即 34%，這一增長是由定價和銷量上升推動的。先進材料和催化劑的調整後 EBITDA 利潤率為 32%，與 2022 年第四季持平。

Turning to cash and leverage on the next slide. During the fourth quarter, cash generation was very strong, providing for a reduction in our net debt leverage ratio of three times as we continue to make progress towards our net target of less than 2.5 times on a full year basis, free cash flow generation was $72 million.

下一張投影片轉向現金和槓桿。第四季度，現金產生非常強勁，隨著我們繼續朝著全年低於 2.5 倍的淨目標取得進展，我們的淨債務槓桿率降低了三倍，自由現金流產生也增加了7,200萬美元。

This was in line with our recent expectations, but below the prior year, driven by the lower adjusted EBITDA, lower dividends from our Zeolyst Joint Venture, higher cash taxes and cash interest as well as an unfavorable change in working capital year over year.

這符合我們最近的預期，但低於上一年，原因是調整後的 EBITDA 較低、Zeolyst 合資企業的股息較低、現金稅和現金利息較高以及營運資本逐年不利變化。

As discussed in our Investor Day in November, we continue to target a cash conversion ratio of approximately 75%. For 2023, our cash conversion ratio was 75%. We continued to maintain a balanced approach for capital allocation with net leverage reduction remaining a key priority.

正如我們在 11 月投資者日討論的那樣，我們繼續將現金轉換率目標定為約 75%。2023 年，我們的現金轉換率為 75%。我們繼續保持均衡的資本配置，淨槓桿率仍然是重點。

During 2023, we used cash to repurchase shares largely in connection with secondary offerings of our equity sponsors in 2023, we repurchased 7.5 million shares for $79 million. Our balance sheet remains in strong shape. At year end, we had total available liquidity of $152 million, comprised of $88 million of cash and availability under our ABL facility of $64 million.

2023年，我們使用現金回購股票，主要與我們的股權發起人在2023年的二次發行有關，我們以7,900萬美元回購了750萬股股票。我們的資產負債表保持強勁。截至年底，我們的可用流動資金總額為 1.52 億美元，其中包括 8,800 萬美元現金和 ABL 額度下的 6,400 萬美元可用資金。

We have one tranche of debt outstanding, which matures in 2028, excluding outstanding letters of credit, there were no outstanding borrowings under our ABL facility. At year end, we have capped our interest exposure on approximately 75% of our outstanding debt out to the third quarter of 2026 and our weighted average cost of debt, it was approximately 5% during 2023.

我們有一批未償還債務，將於 2028 年到期，不包括未償還的信用證，我們的 ABL 融資下沒有未償還的借款。截至年底，我們將截至 2026 年第三季的未償債務的利息敞口限制在約 75%，而 2023 年的加權平均債務成本約為 5%。

Now let's turn to guidance and expectations for 2024. For 2024, we expect sales on a GAAP basis to be between $715 million and $755 million. And we expect our proportionate 50% share of sales for the Zeolyst joint venture to be between $145 million and $165 million as such, we anticipate total sales, including our proportionate share of the Zeolyst Joint Venture sales to be between $860 million and $920 million, or up approximately 5% at the midpoint compared to 2023.

現在讓我們來談談 2024 年的指導和期望。2024 年，我們預計以 GAAP 計算的銷售額將在 7.15 億美元至 7.55 億美元之間。我們預計在Zeolyst 合資企業銷售額中所佔的50% 份額將在1.45 億美元至1.65 億美元之間，因此，我們預計總銷售額（包括我們在Zeolyst 合資企業銷售額中所佔的份額）將在8.6 億美元至9.2 億美元之間，或與 2023 年相比中位數成長約 5%。

In terms of the pass through effective sulfur pricing, we are currently expecting a very modest decrease in average sulfur pricing for the first half of 2024 with the impact on sales, largely immaterial. As Kurt discussed in his comments about our end use demand outlook.

就有效硫磺定價的傳遞而言，我們目前預計 2024 年上半年平均硫磺定價將小幅下降，這對銷售的影響基本上不大。正如庫爾特在他的評論中討論的我們的最終用途需求前景。

The value of octane and Alcoa, it remains favorable, and we expect continued high refinery utilization to support regeneration services activity. We expect a modest cautious recovery of virgin sulfuric acid sales relative to 2023, primarily related to demand for virgin sulfuric acid going into the production of nylon intermediates and the expectation for higher year-over-year production volume.

辛烷和美鋁的價值仍然有利，我們預計煉油廠利用率將持續保持高位，以支持再生服務活動。我們預計，相對於 2023 年，原生硫酸銷售將溫和謹慎復甦，這主要與用於尼龍中間體生產的原生硫酸需求以及對同比產量增加的預期有關。

As such, we expect sales in Eco Services to be up mid single digits and advanced materials and catalyst. We expect improvement in demand conditions for polyethylene catalysts and growth in our customized catalyst applications could drive high single digit to low double digit sales growth in advanced silicas and for the Zeolyst Joint Venture.

因此，我們預期生態服務以及先進材料和催化劑的銷售額將成長中個位數。我們預計聚乙烯催化劑需求狀況的改善以及我們客製化催化劑應用的成長可能會推動高級二氧化矽和 Zeolyst 合資企業的高個位數到低兩位數的銷售成長。

While we expect continued growth and sustainable fuel catalysts, sales in 2020 for sales of hydrocracking catalyst are expected to be significantly lower, which is typical when coming off of peak year like we experienced in 2023 for 2024, we are expecting adjusted EBITDA to land in the range of $255 million to $275 million.

雖然我們預計持續成長和可持續的燃料催化劑，但2020 年加氫裂解催化劑的銷售額預計將大幅下降，這是典型的高峰年份，就像我們在2023 年經歷的那樣，2024 年，我們預計調整後的EBITDA 將下降範圍為 2.55 億美元至 2.75 億美元。

In terms of segment expectations for the full year 2024, we expect adjusted EBITDA for E-Co services to reflect a mid to high single digit percentage increase compared to 2023 based on the anticipated recovery of virgin acid sales into nylon intermediates, strong virgin acid sales into mining and higher contracted pricing in regeneration services.

就2024 年全年的細分市場預期而言，我們預期E-Co 服務的調整後EBITDA 將反映出與2023 年相比中高個位數百分比成長，這是基於原酸銷售向尼龍中間體的預期復甦、強勁的原酸銷售採礦業和再生服務的更高合約定價。

This is somewhat offset by downward pressure on Virgin asset pricing, driven by the uncertain macroeconomic environment and $10 million to $15 million of higher maintenance and turnaround costs associated with enhancing our operational reliability to help ensure long term volume increases.

這在一定程度上被維珍資產定價的下行壓力所抵消，這是由不確定的宏觀經濟環境以及與提高運營可靠性以幫助確保長期銷量增長相關的1000 萬至1500 萬美元的維護和周轉成本增加所推動的。

As we discussed during our November 2023 Investor Day for Advanced Materials and catalyst. We expect 2024 overall adjusted EBITDA to be in line with 2023. Advanced silicas is expected to be up on a high single digit basis, driven by more normalized demand growth for polyethylene catalyst and sales into emerging areas.

正如我們在 2023 年 11 月先進材料和催化劑投資者日期間所討論的。我們預計 2024 年整體調整後 EBITDA 將與 2023 年保持一致。受聚乙烯催化劑需求成長更加正常化以及新興領域銷售的推動，高級二氧化矽預計將出現高個位數成長。

Adjusted EBITDA for the Zeolyst Joint Venture, however, is expected to be down on a high single digit percentage basis, driven by lower sales of hydrocracking catalysts off a peak year and 2023, anticipated unfavorable fixed cost absorption associated with production and sales timing and increased costs to accelerate the growth in our emerging applications. In addition, we expect our corporate costs to be around $30 million on an annual basis.

然而，Zeolyst 合資企業的調整後EBITDA 預計將出現高個位數百分比下降，原因是加氫裂化催化劑銷量較高峰年和2023 年有所下降，預計與生產和銷售時間相關的固定成本吸收不利，並且增加加速新興應用程式成長的成本。此外，我們預計每年的企業成本約為 3,000 萬美元。

For the full year 2024, we are expecting adjusted free cash flow of $85 million to $105 million, including CapEx of $70 million to $80 million in 2020 for the higher CapEx reflects costs associated with the previously announced expansion of advanced silicas capacity at our Kansas City site, an investment in our 1032 catalyst activation business.

對於2024 年全年，我們預計調整後的自由現金流為8500 萬美元至1.05 億美元，其中包括2020 年的資本支出為7000 萬美元至8000 萬美元，因為較高的資本支出反映了先前宣布的與堪薩斯市先進二氧化矽產能擴張相關的成本網站，這是對我們 1032 催化劑活化業務的投資。

Given this expectation for cash generation and assuming no uses of cash for other capital allocation priorities, we expect to delever nearly a half of turn, resulting in significant progress towards our target net debt leverage ratio of below 2.5 times for interest expense.

考慮到對現金產生的這種預期，並假設沒有將現金用於其他資本配置優先事項，我們預計將去槓桿化近一半，從而在實現利息支出淨債務槓桿率低於2.5 倍的目標方面取得重大進展。

Taking into account the interest caps that we have in place, which cover approximately 75% of our exposure, we are projecting a range of $45 million to $55 million with a weighted average cost of debt of approximately 5.5%.

考慮到我們已實施的利息上限（涵蓋我們約 75% 的風險敞口），我們預計利息上限為 4,500 萬至 5,500 萬美元，加權平均債務成本約為 5.5%。

Having covered our expectations for the full year 2024, I want to provide some directional guidance for the first quarter of 2024. On a consolidated basis, we expect first quarter 2024 adjusted EBITDA to be approximately $40 million for Eco Services in light of the impact of winter storm Elliot and impact of the extended turnarounds in the first quarter of last year. We expect first quarter 2024 adjusted EBITDA to be up approximately 10% compared to the first quarter of 2023.

在介紹了我們對 2024 年全年的預期後，我想為 2024 年第一季提供一些方向指導。在綜合基礎上，考慮到冬季風暴艾利奧特的影響以及去年第一季延長週轉的影響，我們預計 2024 年第一季生態服務調整後 EBITDA 約為 4000 萬美元。我們預計 2024 年第一季調整後 EBITDA 將比 2023 年第一季成長約 10%。

For Advanced Materials and catalysts, we expect first quarter 2024 adjusted EBITDA to be between $7 million to $8 million. The lower adjusted EBITDA compared to the prior year is primarily driven by a cautious view around the recovery of the polyethylene market and anticipated unfavorable fixed cost absorption associated with production and sales timing.

對於先進材料和催化劑，我們預計 2024 年第一季調整後的 EBITDA 將在 700 萬美元至 800 萬美元之間。與前一年相比，調整後的 EBITDA 較低，主要是由於對聚乙烯市場復甦的謹慎看法以及預期與生產和銷售時間相關的固定成本吸收不利。

I'll now hand the call back to Kurt for some closing remarks.

現在我將把電話轉回給庫爾特，讓他做一些結束語。

Thank you, Mike. Despite near-term economic uncertainty, we remain positive on the long-term growth opportunities for EcoBoost. We believe our core and industrial businesses will continue to experience solid growth.

謝謝你，麥克。儘管近期經濟存在不確定性，但我們對 EcoBoost 的長期成長機會仍持樂觀態度。我們相信我們的核心業務和工業業務將繼續穩健成長。

We have well established customer relationships, leadership positions in the end users we serve and we have articulated our plans to drive efficiency gains and to support sales growth through automation, de-bottlenecking opportunities, capacity expansions and through reliability initiatives.

我們已經建立了良好的客戶關係，在我們所服務的最終用戶中佔據了領導地位，並且我們已經制定了透過自動化、消除瓶頸機會、產能擴張和可靠性計劃來提高效率並支持銷售成長的計劃。

In our Eco Services segment that will also translate into incremental volume and sales opportunity for our regeneration services business. We believe the role of alkylate in the production of cleaner burning fuels is well appreciated in the long term demand outlook for refined products in North America and the export markets our customers serve will continue to provide opportunities for growth.

在我們的生態服務部門，這也將轉化為我們再生服務業務的增量銷售和銷售機會。我們相信，從北美煉油產品的長期需求前景來看，烷基化物在生產清潔燃燒燃料中的作用得到了充分認識，而我們客戶所服務的出口市場將繼續提供成長機會。

Although we see some near-term demand softness in some industrial applications for virgin sulfuric acid mining demand remains strong, and we expect further improvement in demand for virgin sulfuric acid sales into production of nylon intermediates as the global economy improves.

儘管我們看到一些工業應用的近期需求疲軟，但對原生硫酸採礦的需求仍然強勁，並且我們預計，隨著全球經濟的改善，用於尼龍中間體生產的原生硫酸銷售需求將進一步改善。

We also believe the portfolio effect for the balance of our industrial applications will continue to provide a level of overall stability in terms of our sales of polyethylene catalysts we believe global polyethylene demand will return to historic growth rates of approximately 3%.

我們也相信，我們工業應用平衡的投資組合效應將繼續為我們的聚乙烯催化劑銷售提供一定程度的整體穩定性，我們相信全球聚乙烯需求將恢復到約 3% 的歷史成長率。

Specifically for E. CoVest, we expect our sales of polyethylene catalysts will continue to grow differentially to the overall market, benefiting from our customized catalyst design approach and our leading supply share positions in North America and the Middle East, which benefit from advantaged feedstock and energy costs.

特別是對於E. CoVest，我們預計我們的聚乙烯催化劑銷售額將繼續以與整個市場不同的方式成長，這得益於我們的客製化催化劑設計方法以及我們在北美和中東的領先供應份額地位，這得益於優勢的原料和能源成本。

Lastly, we have announced a significant expansion of polyethylene catalyst production capacity at our Kansas City site that is supported by firm customer commitments, providing further support for our future growth expectations for over, we are energized by the opportunities for growth provided by emerging technologies, which are not just aspirational.

最後，我們宣佈在我們的堪薩斯城工廠大幅擴大聚乙烯催化劑產能，這得到了客戶堅定承諾的支持，為我們未來的成長預期提供了進一步的支持，新興技術提供的成長機會使我們充滿活力，這不僅僅是一個願望。

We continue to see robust growth in Catalysts supporting the production of sustainable fuels we have a technology leadership position for zeolites for advanced recycling technologies. And we have developed advanced silicas and functionalized silicas that position us to capture growth in enzyme immobilization in food chemical and biomass based processes as well as carbon capture and water treatment applications.

我們繼續看到支持永續燃料生產的催化劑的強勁成長，我們在先進回收技術的沸石方面處於技術領先地位。我們還開發了先進的二氧化矽和功能化二氧化矽，使我們能夠在食品化學品和生物質製程以及碳捕獲和水處理應用中捕獲酵素固定化的成長。

In summary, we have a portfolio of products and technologies that we believe provide for a compelling organic EBITDA growth. As we discussed in our Investor Day, the long-term growth trends supporting each of these products and services is reflected in the anticipated 2024 volume growth across the majority of our product lines.

總之，我們擁有一系列產品和技術，我們相信這些產品和技術可以實現令人矚目的 EBITDA 有機成長。正如我們在投資者日討論的那樣，支持這些產品和服務的長期成長趨勢反映在我們大多數產品線的 2024 年預期銷售成長中。

Our current guidance reflects our caution around near term demand conditions and the expected off-cycle year for event-driven hydrocracking sales. As I indicated earlier, we believe the second half of the year could provide for improved demand conditions, including stronger sales of virgin sulfuric acid and polyethylene catalysts. And we will capture opportunities for incremental growth as they arise.

我們目前的指導反映了我們對近期需求狀況和事件驅動的加氫裂解銷售的預期非週期年份的謹慎態度。正如我之前指出的，我們相信今年下半年的需求狀況可能會有所改善，包括純硫酸和聚乙烯催化劑的銷售強勁。我們將抓住出現的增量成長機會。

At this time, I will ask the operator to open the line for questions.

這時候我就會請接線生開通線路詢問問題。

Thank you, Mr. fitting.(Operator Instructions)

謝謝您，裝修先生。

Patrick Cunningham at Citi.

花旗銀行的派崔克‧坎寧安。

Hi, good morning. This is Eric Zeng on for Patrick. My first question is what is driving the higher pricing for key catalysts and do you expect that trend to continue?

早安.我是曾志偉 (Eric Zeng) 替派崔克 (Patrick) 發言。我的第一個問題是，是什麼推動了關鍵催化劑的定價上漲，您預計這種趨勢會持續下去嗎？

Hi, Eric, this is Curt. Well for the poly for polyethylene. Do you believe that destocking that we saw really in the latter half of 2023 is largely behind us and we do expect double digit sales growth during the year, albeit weighted towards the second half of the year. And we've implemented. We've implemented price increases as time goes along and has allowed us on our on our contracted prices.

嗨，艾瑞克，我是柯特。對於聚乙烯來說是好的。您是否相信我們在 2023 年下半年真正看到的去庫存已經基本上過去了，我們確實預計今年銷售額將實現兩位數增長，儘管是在下半年進行加權。我們已經實施了。隨著時間的推移，我們已經實施了價格上漲，並允許我們按照合約價格執行。

Just to further comment, really on polyethylene, our expectations there, it's geographic centric as well, where most of our sales are centered in North America as well as the Middle East, where those regions have a high advantage in terms of raw materials and lower energy costs, Europe that we're less less exposed and less exposed in Asia Pacific in those two regions generally have more of the more of a muted recovery or less of the less of an uptick this year.

只是進一步評論一下，對於聚乙烯，我們的期望也是以地理為中心的，我們的大部分銷售集中在北美和中東，這些地區在原材料方面具有很高的優勢，而且價格較低。 ，我們的暴露較少，亞太地區的暴露較少，這兩個地區今年總體上有更多的溫和復甦或更少的上升。

Got it. Thank you. And my last question is with Indigo services. Can you elaborate on any trends that you're seeing with existing customers re-contracting Have there been any difficulties in getting customers to re-sign? Thank you.

知道了。謝謝。我的最後一個問題是關於 Indigo 服務。您能否詳細說明您在現有客戶重新簽約方面看到的任何趨勢？謝謝。

Yes.

是的。

Thanks for the question. So when you look at the regeneration business every year, those contracts are generally longer in length, so anywhere from five to 10 years. So any given year, there's a reconstitution of certain basket of contracts that are up for renegotiation and recontracting.

謝謝你的提問。因此，當您每年查看再生業務時，您會發現這些合約的期限通常較長，從 5 年到 10 年不等。因此，在任何一年，都會對某些合約進行重組，以供重新談判和重新簽訂合約。

So I would say, as time has gone. We've gone along. We've re-upped those customers and we've been successful and implementing price increases as time has gone along in virgin acid, about 90% of our customers are under a long-term contract basis, the 10% that we call on a spot sales or short dated contracts.

所以我想說，隨著時間的流逝。我們就一起走了我們已經重新增加了這些客戶的數量，並且隨著時間的推移，我們已經成功地提高了原酸的價格，大約 90% 的客戶簽訂了長期合同，其中 10% 的客戶是長期合同客戶。或短期合約。

That's where we've seen a little bit of pricing pressure as I've mentioned on the call. And that's really related, I would say, mainly to the industrial space where we see some caution from some of those industrial consumers around 2024.

正如我在電話中提到的，這就是我們看到的一點定價壓力。我想說，這確實主要與工業領域相關，我們看到一些工業消費者在 2024 年左右會持謹慎態度。

Great. Thank you.

偉大的。謝謝。

Thank you. Aleksey Yefremov, KeyBanc Capital Markets.

謝謝。Aleksey Yefremov，KeyBanc 資本市場。

Thanks and good morning, everyone. Just to follow up on the industrial piece of Virgin asset sales could you quantify the magnitude of this price pressure, either KEYNOTE as a total percent of your virgin acid business or as a percent of that bucket of short term contracts?

謝謝大家，早安。為了跟進維珍資產銷售的工業部分，您能否量化這種價格壓力的大小，無論是作為您的原始酸業務的總百分比還是短期合約的百分比？

Sure. Good morning Lasky. So virgin acid, again, it's when you look at our portfolio on virgin acid, 90% of it is really under long-term agreements, which were are adjusting on longer-term contracts, right? So it's just that 10% that's on that short-dated or call spot spot spot sales goes towards those sorts of things.

當然。早上好，拉斯基。所以，再一次，當你看看我們的原生酸投資組合時，你會發現其中 90% 確實是根據長期協議進行的，這些協議正在根據長期合約進行調整，對嗎？因此，短期或買權現貨銷售中的 10% 用於此類用途。

So what we see in this area is again, that some cautiousness of customers on the and on the industrial side, and there's also been some rationalization in the pulp and paper industry.

因此，我們在這一領域再次看到，工業方面的客戶有些謹慎，製漿造紙業也出現了一些合理化。

We don't move a lot of volume into that industry. But it has created, I guess, some pockets of oversupply in different geographies where we don't where we don't operate, but that that's created some, I say, temporary imbalances in a couple of the geographies that really has to settle itself out.

我們不會向該行業投入大量資金。但我想，它在不同地區造成了一些供應過剩，而我們不經營的地區卻造成了供應過剩，但我說，這在一些地區造成了一些暫時的不平衡，這些不平衡確實需要自行解決。出去。

So if I don't know if we had to quantify it really less deal, you're talking about 10% of our virgin acid portfolios, probably $5 million to $10 million in terms of pricing. That's subject to some of this pressure that we're seeing in the industrial space.

因此，如果我不知道我們是否必須對其進行量化，那麼您談論的是我們的原始酸投資組合的 10%，就定價而言，可能為 500 萬至 1000 萬美元。這受到我們在工業領域看到的一些壓力的影響。

And thanks, Curt very helpful. Tom, you mentioned accelerated increased cost driven by investments in those emerging applications. Kind of hard from outside to judge is because that was just costs more to do looking envision? Or is it really that there's a bigger opportunity and those opportunities are coming faster? And you could you elaborate on this?

謝謝，柯特非常有幫助。湯姆，您提到了對這些新興應用程式的投資導致成本加速增加。從外部很難判斷是因為這只是為了尋找設想而花費更多？或者真的有更大的機會而且這些機會來得更快嗎？能詳細說明一下嗎？

Yes. So it is, as we stated during our in our Investor Day of growing our emerging technologies is a really a key priority for us when we look at the some of the things like advanced plastics recycling, sustainable fuels the advancements now that we're making on the immobilized enzymes.

是的。因此，正如我們在投資者日中所說，當我們考慮先進塑膠回收等一些事情時，發展新興技術確實是我們的一個關鍵優先事項，而永續燃料是我們現在正在取得的進步關於固定化酵素。

So really on the front end of that, where we're building out our our capabilities in those areas, building out our sales and marketing capabilities and there's areas. So we're making those front end investments as expected to deliver long term long term sales, as I've outlined in our Investor Day.

因此，實際上，在前端，我們正在這些領域建立我們的能力，建立我們的銷售和行銷能力以及其他領域。因此，正如我在投資者日中概述的那樣，我們正在按預期進行這些前端投資，以實現長期銷售。

Thanks a lot.

多謝。

Thank you.

謝謝。

John McNulty of BMO.

BMO 的約翰·麥克納爾蒂。

Yes, good morning. Thanks for thanks for taking my question. So a question on the EBITDA on Advanced Materials and catalyst So it looks like the first half is going to be there or excuse me, the first quarter is going to be basically almost half of what it was the prior year which kind of implies the back half or the remaining three quarters, excuse me, is basically flattish on.

是的，早安。感謝您提出我的問題。關於先進材料和催化劑的 EBITDA 問題所以看起來上半年將會出現，或者對不起，第一季度基本上將是上一年的一半，這意味著後面的情況抱歉，一半或剩下的四分之三基本上是持平的。

So I guess can you help us to think about where the improvement comes from is the bulk of it just the lumpiness in the HPC catalyst side? Or is it the polyethylene ramp that you're talking about? I guess what's the what's the bigger contributor to kind of the weakness in 1Q and the snapback as we look at kind of the remaining three quarters?

所以我想你能幫助我們思考一下改進來自哪裡，其中大部分只是 HPC 催化劑方面的塊狀部分嗎？還是你說的是聚乙烯坡道？我想當我們看看剩下的三個季度時，造成第一季疲軟和快速反彈的最大因素是什麼？

Yes. John, this is Mike. Thanks for the question on. Yes, it's a combination of all those factors, right? So on we mentioned earlier that we're seeing a little bit of a cautious feel in Q1 around polyethylene starting out, but we do expect the polyethylene demand to continue on and actually improve over the prior year, call it in a double digit basis.

是的。約翰，這是麥克。感謝您提出的問題。是的，這是所有這些因素的結合，對吧？因此，我們之前提到，我們在第一季開始看到對聚乙烯的謹慎態度，但我們確實預計聚乙烯需求將繼續下去，並且實際上比前一年有所改善，稱其為兩位數。

And we also see that hydrocracking, while we came off of peak year from last year. It is a little lighter in Q1 than originally anticipated, but we do see it growing in Q2, Q3 and then into Q4. So it's a little bit of the nature of the business, primarily around the hydrocracking and the timing, along with some of the niche custom catalysts.

我們也看到了加氫裂解，而我們已經擺脫了去年的高峰。第一季的數據比最初預期的要輕一些，但我們確實看到它在第二季、第三季和第四季有所成長。因此，這與業務的本質有關，主要圍繞著加氫裂解和時間安排，以及一些利基定制催化劑。

Polyethylene is more constant. However, just given also what we saw in 2023. It's a little lighter starting out, but it's ramping up certainly in the in the later half of the year.

聚乙烯更穩定。然而，這也是我們在 2023 年看到的情況。剛開始的時候會比較輕，但下半年一定會增加。

Got it. Okay. Now that makes that makes sense. And then in one of the slides, you highlighted some weakness in the heavy duty truck markets, which I assume is tied to some of the regulated, the new regulations where there was maybe a little bit of pull forward. I guess how long does that normally last is that a year does tend to last a little bit longer than that. I guess how should we be thinking about that?

知道了。好的。現在這是有道理的。然後在一張幻燈片中，您強調了重型卡車市場的一些弱點，我認為這與一些受監管的新法規有關，其中可能有一點推動。我猜通常會持續多長時間，一年確實會比這更長。我想我們該如何思考這個問題？

Yes.

是的。

Thanks, John. There's a couple of headwinds there really in the trucking where there's just a general, I'd say, slowdown in that transportation segment right now, which is, I think, linked to the general economic uncertainty going on.

謝謝，約翰。卡車運輸確實存在一些阻力，我想說的是，目前運輸領域普遍放緩，我認為這與總體經濟的不確定性有關。

So and then also coming off working off a pretty big backlog that had developed since '21, '22 and '23 where a lot of trucks were there was big back orders and they work those off. So you see some slowness there. Additionally, the Euro seven regulation that was due to go in effect in 2027.

因此，然後還要處理自 21 年、22 年和 23 年以來出現的相當大的積壓訂單，那裡有很多卡車，有大量的積壓訂單，他們會處理掉這些訂單。所以你會看到那裡有些緩慢。此外，歐盟七號法規將於 2027 年生效。

Europeans have delayed that for two years, which has pushed off some of the, I'd say, next-generation catalyst technologies that we're going to go into those trucks that we're going to reduce emissions by 80%. So the combination of those things has kind of created a little bit of a headwind for that for that segment this year.

歐洲人已經推遲了兩年，這推遲了一些下一代催化劑技術，我想說，我們將把這些技術應用到卡車上，以減少 80% 的排放。因此，這些因素的結合為今年該細分市場帶來了一些阻力。

Got it. Thanks very much for the call.

知道了。非常感謝您的來電。

Thank you.

謝謝。

David Begleiter, Deutsche Bank.

大衛‧貝格萊特，德意志銀行。

Thank you. Good morning. I'm Curt, any coal services, you had a number of headwinds in 2023, the winter storm outages, turnarounds and some weak demand and destocking still given that, why is the EBITDA growth a little faster than, say, mid 5% plus in '24 it?

謝謝。早安.我是 Curt，任何煤炭服務，2023 年都會遇到一些阻力，冬季風暴停電、週轉以及需求疲軟和去庫存，但考慮到這一點，為什麼 EBITDA 增長略快於 5% 以上在'24呢？

Sure.

當然。

Thanks for the thanks for the question, David. So as we stated on the call, a few times, we've taken a cautious look for 2020 for many of our customers, particular in that exit at industrial segments have have adopted cautious approaches for 2024, and that's played into our overall opinion on the demand trends as it especially as it relates to virgin sulfuric acid.

謝謝你提出這個問題，大衛。因此，正如我們在電話會議上多次表示的那樣，我們對許多客戶的2020 年持謹慎態度，特別是工業領域的退出對2024 年採取了謹慎的態度，這影響了我們對2020 年的總體看法。

But when you look at the what we expect from 2024 and E-Co services refining margins. The refining business remains healthy. We expect a strong year for regeneration, the treatment services business and 1032 both work to have very full schedules this year.

但當你看看我們對 2024 年的預期以及 E-Co 服務精煉利潤時。煉油業務保持健康。我們預計今年再生、處理服務業務和 1032 工作將迎來強勁的一年。

It's the virgin acid business where we do plan on moving more volume into the market this year, particularly into nylon where there was headwinds last year, we see a recovery there. I wouldn't say it's necessarily an up-cycle year.

在原生酸業務方面，我們計劃今年將更多的產量投入​​市場，特別是去年遇到阻力的尼龍，我們看到了那裡的復甦。我不會說今年一定是上升週期的一年。

However, we do expect to move more product into into that nylon segment where we see that some of the headwinds on equal services that earlier on one of the questions I talked about that industrial space and the pricing pressure is creating in that short term and spot pricing segment of the virgin acid acid space as well as we're spending about $10 million to $15 million more on maintenance and reliability this year.

然而，我們確實希望將更多的產品轉移到尼龍領域，我們看到平等服務方面的一些阻力，這些阻力是我早些時候談到的工業空間和定價壓力的問題之一，在短期和現貨市場中正在產生純酸酸領域的定價部分，以及今年我們在維護和可靠性方面花費了約 1000 萬至 1500 萬美元。

During the Investor Day, we talked about we have a long term reliability enhancement program that we're instituting, which is a combination of really additional resources at the plants as well as some automation, which is there really to deliver higher reliability as well as de-bottlenecking at the plants over time.

在投資者日期間，我們談到我們正在製定一項長期可靠性增強計劃，該計劃結合了工廠的真正額外資源以及一些自動化，這確實可以提供更高的可靠性以及隨著時間的推移，消除工廠的瓶頸。

So that's some of the some of the change you see there is really pushing in that extra cost to kick off that reliability enhancement program.

因此，這是您看到的一些變化，確實推動了啟動可靠性增強計劃的額外成本。

And Kurt, on that program, though, one-time that fiduciary, i.e., 25, should that come back down by $10 million to $15 million, should that be sustained at this higher level and some of that will be.

而庫爾特，在該計劃中，雖然，曾經的受託人，即 25 歲，如果回落 1000 萬至 1500 萬美元，如果維持在這個更高的水平，其中一些將會是。

And I mentioned, too, we do have additional turnaround costs. So that will some of that will be sustained because it's going to be the resources we're putting in place will be on a sustained basis.

我也提到過，我們確實有額外的周轉成本。因此，其中一些將持續下去，因為我們投入的資源將持續存在。

We do have accelerated turnaround costs this year, which those mostly are actually going to take place in the first half of the year and then the automation piece that we're putting in place, obviously, we'll go on to the plan. So I would think of a portion of that will be sustained over the or the horizon.

今年我們確實加速了周轉成本，這些成本實際上大部分將在今年上半年發生，然後我們正在實施的自動化部分，顯然，我們將繼續執行該計劃。所以我認為其中一部分將在短期內持續下去。

Thank you.

謝謝。

Yes.

是的。

Thank you.

謝謝。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

Yes.

是的。

Hey, good morning. So first question I had was given what has happened in '23, 42 your business, how have you adjusted in '24? I mean, are you through all the inventory you might have had in '23 because of disruptions and so forth. So what kind of yield lingering effects are there from '24 from those effects in '23?

嗨，早安。所以我的第一個問題是，23、42 年你們的企業發生了什麼，24 年你們是如何調整的？我的意思是，您是否已清理完 23 年因中斷等原因可能擁有的所有庫存？那麼，從 24 年開始，到 23 年的影響，會產生什麼樣的產量揮之不去的影響呢？

Yes, good morning, Hamed. I think really what into in terms of 2023. We obviously had [$20 million-ish] of headwinds that were operational related in the Eco Services business. When you go back to the winter storm that started out at the beginning of 2023.

是的，早上好，哈米德。我認為 2023 年會發生什麼事。顯然，我們在生態服務業務中遇到了 [2000 萬美元左右] 的營運相關阻力。當你回到 2023 年初開始的冬季風暴。

And then we had on the extended maintenance downtime at the Houston plant. So we don't expect those those events this year. Obviously, just talked about the enhanced reliability program, which we hope will yield higher volumes.

然後我們休士頓工廠的維護停機時間延長了。所以我們預計今年不會發生這些事件。顯然，剛才談到了增強的可靠性計劃，我們希望該計劃能夠產生更高的產量。

And we do expect to produce and sell more virgin sulfuric acid volumes this year, even though I've talked about some of the industrial headwinds in some of the pockets in the virgin acid market. I think the other areas that we talked about last year that were headwinds for us was polyethylene catalyst.

儘管我已經談到了原生酸市場某些領域的一些工業阻力，但我們確實預計今年將生產和銷售更多的原生硫酸。我認為我們去年討論的對我們不利的其他領域是聚乙烯催化劑。

Which in the second half of the year there destocking that went on. We see that abating and recovering is and as Mike said, particularly in the second half. So we do expect polyethylene catalysts to be up double digits this year.

下半年，去庫存仍在繼續。正如麥克所說，我們看到球隊正在減弱和恢復，特別是在下半場。因此，我們確實預計今年聚乙烯催化劑的產量將成長兩位數。

And then secondly, the nylon segment, which impacted the virgin acid of business last year in the second half, we saw destocking in that area. We do expect nylon volume to be up for us this year, albeit not certainly a high cycle year, but certainly a recovery there.

其次，尼龍領域影響了去年下半年的業務，我們看到該領域的庫存減少。我們確實預計今年尼龍銷量將會上升，儘管肯定不是高週期年，但肯定會出現復甦。

Okay. And my last question is on the slides provided today. You're highlighting and the slow conditions for heavy duty vehicles, and that's a new item for you on the slide. Why is that such a big deal now versus prior quarters where that was not even an issue even from a positive side or negative side. I mean, how bad of a drag is this year highlighting it now?

好的。我的最後一個問題是在今天提供的幻燈片上。您正在強調重型車輛的緩慢行駛狀況，這對您來說是幻燈片上的新項目。為什麼現在與前幾季相比如此重要，無論從正面還是負面來看，這都不是問題。我的意思是，今年的拖累有多嚴重？

Yes, I think it's not. I think in the past over the past year or two, the business was largely is moving along in terms of the backlog of the heavy duty diesel vehicles. It's not a an overly huge segment for us. And essentially, we view that market as we see headwinds there in terms of just demand for overall heavy-duty diesel vehicles as well as the regulation thing that I mentioned earlier on on Euro seven.

是的，我認為不是。我認為在過去的一兩年裡，由於重型柴油車的積壓，業務基本上正在進展。對我們來說，這並不是一個太大的部分。從本質上講，我們對這個市場的看法是，我們看到了重型柴油車整體需求以及我之前提到的歐七監管方面的阻力。

But when we look at it from a sales standpoint, it's flattish for us. So I wouldn't call it necessarily a huge drag for us. It's just it's an area that we see in the in the segment. There definitely are headwinds in that in that segment.

但當我們從銷售的角度來看時，它對我們來說是平淡的。所以我不會認為這對我們來說一定是一個巨大的阻力。這只是我們在細分市場中看到的一個領域。該領域肯定存在阻力。

Okay. Thank you.

好的。謝謝。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

David Silver, CL King & Associates.

David Silver，CL King & Associates。

So you kind of go up? Yes, hi. Thank you very much. I had a question maybe about the some of your spending initiatives over the next year, but some For starters, there is a something of an increase on your CapEx spend.

那你想上去嗎？是的，嗨。非常感謝。我可能有一個關於您明年的一些支出計劃的問題，但對於初學者來說，您的資本支出有所增加。

And I'm guessing some part of that is Kansas City and along those lines, just with the time line there, I was just wondering or I was wondering if the spend might even the CapEx spend might have even been a little bigger to prepare for the anticipated demand growth.

我猜其中一部分是堪薩斯城，沿著這些思路，就在那裡的時間線，我只是想知道，或者我想知道支出是否可能甚至資本支出可能會更大一些，以準備好預期的需求增長。

And then beyond that, I'm just wondering if you could articulate or highlight any increase in either R&D spend or pre commercialization type of spending by them beyond the beyond.

除此之外，我只是想知道您是否可以闡明或強調他們在研發支出或商業化前類型支出方面的任何增加。

I guess the operational things I mean what other kind of spending initiatives should we be thinking about to support your growth, which you highlighted in the release and in some of your comments here, but is there is there a way to kind of get a bigger, a clearer view of that, please? Thank you.

我想運營方面的事情我的意思是我們應該考慮哪些其他類型的支出舉措來支持您的增長，您在新聞稿和此處的一些評論中強調了這一點，但是有沒有一種方法可以獲得更大的規模，請更清楚地了解這一點？謝謝。

Yes, David, good morning. This is Mike. So on the first part of the question around capital spending, you are correct. We do see about given our guidance range at the midpoint, roughly roughly $10 million increase in CapEx spending on the predominance of that is associated with the Kansas City expansion.

是的，大衛，早安。這是麥克。因此，關於資本支出問題的第一部分，你是正確的。我們確實看到，鑑於我們的指導範圍處於中點，資本支出增加了約 1000 萬美元，其中大部分與堪薩斯城擴張相關。

I think we mentioned this during our investor day that that dumb would take a period of time over certainly over at least two year period of going in 2025. So our spend on that facility is not a and bottoms up approach. We already have structures and available there.

我想我們在投資者日提到這一點，到 2025 年，這種愚蠢的做法肯定需要至少兩年的時間。因此，我們對該設施的支出並不是自下而上的方法。我們已經有了可用的結構。

We're just expanding upon that so the CapEx cost is not done perhaps as significant as you might think we're building in a brand new plant, but we are adding about 50% capacity for making our polyethylene catalyst there.

我們只是在此基礎上擴展，因此資本支出成本可能並不像您想像的那樣重要，因為我們正在建造一座全新的工廠，但我們正在增加約 50% 的產能來在那裡生產聚乙烯催化劑。

We also have some additional costs on, you know, in the U.S. capital spending around Eco Services to continue to start to look and expand our 1032 catalyst activation business. So there's some spending in there as well.

您知道，我們在美國圍繞生態服務的資本支出也有一些額外成本，以繼續開始尋找和擴大我們的 1032 催化劑活化業務。所以那裡也有一些支出。

And when you look at the R&D and precommercial on Kurt mentioned earlier that we are seeing some additional spending in the on just as we start to ramp up some of our emerging products. So we are seeing a little bit of additional costs there. But again, as we mentioned, we're very excited on where our and sales have been taking us.

當你看看庫爾特前面提到的研發和預商業時，我們看到了一些額外的支出，就像我們開始增加一些新興產品一樣。所以我們看到了一些額外的成本。但正如我們所提到的，我們對我們的業務和銷售所取得的進展感到非常興奮。

We've already had some sales in 2023 related to the biocatalysis, and a lot of it is exactly how we articulated during our November Investor Day.

我們在 2023 年已經實現了一些與生物催化相關的銷售，其中許多正是我們在 11 月投資者日期間所闡述的。

And hopefully, we also talked a little bit more about the spending on Eco Services related to the reliability and turnaround costs that we talked about. Earlier. So hopefully that covers some of your cost, your questions on the end, it costs and spending.

希望我們也能更討論了與我們討論的可靠性和周轉成本相關的生態服務支出。早些時候。所以希望這能涵蓋你的一些成本、你最終的問題、成本和支出。

Yes, thank you for that. And then maybe just from another angle on the I was wondering about the operational plans, the downtime overall planned by your portfolio of refining customers. So I guess refining margins largely have been very healthy for the last few years. And done?

是的，謝謝你。然後也許只是從另一個角度來看，我想知道營運計劃，以及您的煉油客戶組合總體計劃的停機時間。因此，我認為過去幾年煉油利潤基本上非常健康。並做了？

Yes. Anecdotally, I guess a lot of refineries has deferred or delayed downtime as much as they could to take advantage of what they viewed as favorable profit profit opportunities as you kind of look at the planned downtime and planned operating strategies that your refiner customers have shared with you? I mean, should we expect another year of?

是的。有趣的是，我猜許多煉油廠已經盡可能地推遲或延遲停機時間，以利用他們認為有利的利潤機會，因為你會看到煉油廠客戶與他們分享的計劃停機時間和計劃運營策略你？我的意思是，我們應該期待另一年嗎？

Yes, very high or close to full utilization there? Or are there some major outages or downtime planned, you know, relative to maybe 2023 or 2022, excluding the weather events?

是的，利用率非常高或接近充分利用嗎？或者，您知道，相對於 2023 年或 2022 年（不包括天氣事件），是否計劃發生一些重大停電或停機？

Sure. Thanks, David. So in terms of when we look at our own refinery downtime effects, two parts of the business differently. When you look at Eco Services on the acid regeneration, we don't really see a particularly high amount of customer turnarounds this year in that in their alkylation units.

當然。謝謝，大衛。因此，就我們自己的煉油廠停機影響而言，業務的兩個部分有所不同。當您查看有關酸再生的生態服務時，我們實際上並沒有看到今年烷基化裝置中的客戶週轉量特別高。

So we're expecting, I would say, more of an more of an average year we look at hydrocracking catalyst, obviously, we're coming off a peak cycle year in 2023 selling hydrocracking catalyst that some of those turnarounds took place in Q4 of 2023. Some of them are taking place in Q1 2024.

因此，我想說，我們預計，我們將以平均年份的方式關注加氫裂解催化劑，顯然，我們將在 2023 年結束加氫裂解催化劑銷售的高峰週期，其中一些轉變發生在 2023 年第四季。 2023 年。其中一些將於 2024 年第一季進行。

They were buying the catalyst on the had on site and for their turnaround. So we expect and again, hydrocracking to be more of a low cycle of this year. So we do expect less turnarounds in that space as well.

他們在現場購買催化劑並實現扭虧為盈。因此，我們再次預計，今年加氫裂解將更多地處於低週期。因此，我們確實預期該領域的周轉也會減少。

But those are for our customers. So they're there certainly are other refiners, other regions that could have different issues.

但這些是針對我們的客戶的。因此，肯定還有其他煉油廠、其他地區可能有不同的問題。

But in general, I think would be the average in the Eco Services side and less turnarounds in hydrocracking because it's an off-cycle year?

但總的來說，我認為生態服務方面的平均水平和加氫裂解的周轉較少，因為這是非循環年？

Yes, yes, you did highlight that there. Okay, that's great. Thank you very much.

是的，是的，你確實在那裡強調了這一點。好的，太好了。非常感謝。

And we'll take a follow-up question now from John McNulty of BMO.

現在我們將接受蒙特利爾銀行 (BMO) 的約翰·麥克納爾蒂 (John McNulty) 提出的後續問題。

Yes, thanks for taking my follow-up. So on on the polyethylene catalyst demand, which which is a pretty strong forecast for the year, up double digits, I guess, can you help us to think about how much of that just core industry growth verse account wins. I think you have had a bunch of wins and some some assets are still in the process of ramping up. So that maybe some of the benefit, but can you help us think about the high level?

是的，感謝您接受我的跟進。因此，關於聚乙烯催化劑需求，這是今年相當強勁的預測，我想，成長兩位數，你能否幫助我們思考核心產業成長與帳戶的贏利有多大。我認為你們已經取得了很多勝利，並且一些資產仍在增加中。這也許有一些好處，但你能幫助我們思考高層次的問題嗎？

Sure. I mean, I think it's a mix really, John, of both wins and just increased utilization rates. So you see a recovery, particularly, I would say Middle East and North America are right now at very low natural gas prices are enjoying a huge arbitrage window in polyethylene production.

當然。我的意思是，約翰，我認為這實際上是勝利和利用率提高的結合。所以你會看到復甦，特別是我想說，中東和北美目前天然氣價格非常低，在聚乙烯生產中享受著巨大的套利窗口。

So we obviously have a little heavier weighting to those to those areas. So we're receiving we're seeing some recovery in that area. And again, I think Mike mentioned, we're it's more second half, more second half weighted.

因此，我們顯然對這些領域的權重稍重。所以我們收到的消息是，我們看到該地區出現了一些復甦。我想麥克再次提到，我們的下半場更多，下半場的權重更大。

So a lot of its recovery, but yet some evidence of its recovery of new account wins that we've had as well. So it's a little bit of a mixed bag. But if I had to give it the weighting, I'd say it's more just on the general recovery side.

所以它的恢復很大，但我們也有一些新帳戶恢復的證據。所以它有點魚龍混雜。但如果我必須賦予它權重，我會說它更只是在整體恢復方面。

Got it. Thanks for the color.

知道了。謝謝你的顏色。

And Ladies and Gentlemen, it appears we have no further questions today. So that will bring us to the conclusion of equal this fourth quarter 2023 earnings conference call.

女士們、先生們，看來我們今天沒有其他問題了。因此，我們將在 2023 年第四季的收益電話會議上得出平等的結論。

We'd like to thank you all so much for joining us today and wish you all a great remainder of your day. We'll take a bit of a buffer to be able to fulfill to fully deliver wonderful.

我們非常感謝大家今天加入我們，並祝福大家有個愉快的一天。我們將需要一點緩衝來充分交付精彩的內容。