Ecovyst Inc. (NYSE:ECVT) Q4 2023 Earnings Call Transcript
Ecovyst Inc. (NYSE:ECVT) Q4 2023 Earnings Call Transcript February 28, 2024
Ecovyst Inc. misses on earnings expectations. Reported EPS is $0.22 EPS, expectations were $0.24. Ecovyst Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good morning. My name is Bove [ph] and I will be your conference operator today. Welcome to Ecovyst Fourth Quarter 2023 Earnings Conference Call and Webcast. Please note today's call is being recorded and should run approximately 1 hour. [Operator Instructions] Now, at this time, I will turn things over to Mr. Gene Shiels, Director of Investor Relations. Please go ahead, sir.
Gene Shiels: Thank you, operator. Good morning and welcome to the Ecovyst fourth quarter and full year 2023 earnings call. With me on the call this morning are Kurt Bitting, Ecovyst's Chief Executive Officer; and Mike Feehan, Ecovyst's Chief Financial Officer. Following our prepared remarks this morning, we'll take your questions. 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. 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.
Any forward-looking information provided today speaks only as of this date. 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 in presentation materials posted on the Investors section of our website at ecovyst.com. I'll now turn the call over to Kurt Bitting. Kurt?
Kurt Bitting: Thank you, Gene and good morning. First, I want to thank my Ecovyst colleagues for delivering a strong finish to 2023. Despite the economic uncertainty and operational challenges that we faced last year, our Ecovyst 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 users for both Eco Services and Advanced Materials and Catalysts helped Ecovyst deliver solid financial results for the fourth quarter of 2023. High refinery utilization, favorable gasoline demand and the trend toward higher-octane and cleaner burning fuels continued to drive alkylate [ph] production in 2023, providing support for our regeneration services business where volume was up compared to the fourth quarter of 2023.
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, particular in advanced materials and catalyst. 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 catalysts and customized catalyst applications contributed to the sales growth. 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 Ecovyst to deliver strong growth in the future in our core and industrial applications as well as in the emerging allocations we discussed in our November Investor Day.
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