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Alcoa (AA)

Participants
James Dwyer Vice President of Investor Relations
Roy Harvey President and Chief Executive Officer
William Oplinger Executive Vice President and Chief Financial Officer
Curt Woodworth Credit Suisse
Matthew Korn Goldman Sachs
Chris Terry Deutsche Bank
David Gagliano BMO
Lucas Pipes B. Riley FBR
Timna Tanners Bank of America
John Tumazos Independent
Paretosh Misra Berenberg
Call transcript
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Operator

Good afternoon, and welcome to the Alcoa Corporation Fourth Quarter and Full Year 2019 Earnings Presentation and Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. of President Vice Dwyer, Investor Relations. James ahead. go Please

James Dwyer

Chief I'm Thank Roy by Officer; William President everyone. and you, and good and and Vice Executive Shawn, joined Oplinger, Officer. Harvey, Executive today Chief day Financial Alcoa President Corporation's

by We and after Bill. Roy will questions take your comments

and are and actual reminder, events statements caveats. from in may the discussion Company's Factors to and SEC to today's subject differ in these are a filings. contain forward-looking that that As relating today's presentation to results materially statements included will future expectations various assumptions our cause

financial In most addition, adjusted EBITDA. we today measures measures the have in GAAP Any comparable today's presentation. included can the discussion some reference to to EBITDA found our in non-GAAP appendix to Reconciliations means financial be this directly presentation. in

on principle been our certain for method statements, The effects change financial its presented. periods X, of to cost. effective to evaluating changed Company XXXX, average have a the Also retrospectively accounting note applied the all accounting prior inventories LIFO from January in

previously Finally, website. presentation available slide are earnings and release our the on announced, as

Roy. here's that, With

Roy Harvey

Thank to you start so to Jim, results. a us for fourth with the overview quarter discuss, quick of let's a got and today. We've joining thanks lot everyone

Texas, associated the net it to taken with had fourth associated and share. in benefits. additional million This Point been liabilities the with our XXXX, loss includes fully of other since includes the we For which pensions reported postemployment or actions quarter, refinery manage a Comfort charges $XXX curtailed of $X.XX per cost closure and we've of

adjusted generated million. $X.XX million net adjusted special items, we per we Excluding loss $XXX reported an excluding special share. an On basis, $XX or EBITDA of items,

the million increase the closed quarter sequential balance. cash in we quarterly cash, $XXX fourth Lastly, in our second with

company's us let's Last priorities. our XXXX, the we've quarter, Now, priorities guiding refreshed we've are how some out of we prepare to three make actions to additional taken close and review strategic our as improvements.

which producer, better means parts low-cost cycle markets. a through all being the on focused of compete to reducing commodity are we First, complexity our in

and And improve to toward to proof which social for are intend sheet, returns. includes wisely enhanced invest working our drive balance an we and and strengthened reputation we cycle Second, a a margins excellence. environmental portfolio, to advance actions sustainably, finally,

these quick progress in more reinforce priorities last and made We've competitiveness. quarter the with be refreshed ahead done will Alcoa's to quarters

overhead We operating new reduce model. with to further with have leaner moved speed a

have We are generate working cash to started comprehensive non-core from to of current improve review sales we assets, the profitability. additional of portfolio our and a long-term

update, serious importantly Turning quarter. injuries no the fourth most to we business had quarter in our

operational also In production and mine fourth than of Wagerup labor continued performance agreement Juruti refinery. records bauxite the from We there. unionized employees strong our our covering also completed our a quarterly half modernized we with in Australia quarter, in more new our

of International We sustainable became Council the the members improving also which to the known industry. Metals Mining development in and as dedicated ICMM, of is performance

We we're with are of of important standard the ICMM and management to be tailings dams this for effort. very part a global honored develop safe to working

Apple to breakthrough ELYSIS new oxygen. pure produces produced our all process aluminum gas smelting technology Also in Alcoa greenhouse this a this eliminates Instead, shipped process. December, direct joint emissions. venture carbon-free invented with which

the of can and conventional more scale up aluminum As be to used technology commercial works a an to process becoming purchase transform world aluminum. Apple more produce first this sustainability, focused technology on it has In investor, to the XXXX. early licensed the process to new ELYSIS in asked batch with potential while this this produced so

Now, let's the XXXX. turn full to year

our November in stability labor alumina for and agreements year. reached production and business workers operations free We and with We United Canada records portfolios. earlier In the accomplishments and modernized the addition new several in the both XXXX to in year. bauxite unions our improved the union closing drove annual with States and Australian another our year, our across in fatality set throughout span

these countries. XX% together, three contracts Taken cover almost of in employees unionized the these

our feature efficient to work compete. will Canada, four-year of improved active plants The in better unions collaboration unionized Importantly, locations. that the represent reached multi-year five and master agreements country. with agreements that our union they covers incorporate salaried practices. we XXX% reached at separate that U.S. two agreement employees we’ve approximately provisions that X,XXX allow a In In employees the

that [ph]we XXX about Comeau agreement Baie a First, employees. at covers secured six-year

is Today, after a is for an employees at second labor well reached Bécancour that for to in eligible on smelter's and completion under recall XX-month restart are progressing that six-year agreement new work. now schedule the Next, quarter. the X. lockout smelter contract back ratified July All we was on

Also savings two annual a last agreement will leaner the unprofitable which the completed second divestiture year, in for company, of we operating of Avilés quarter workers' an In at and provide these facilities. historically beginning Coruña smelters reaching representatives new Spain also this implemented La we our model the in year. with after November,

in XXXX and our alumina We markets, bauxite in bauxite for for global a in Finally, see and XXXX and balanced a slight alumina. surpluses for and surpluses deficit aluminum. market ended aluminum ahead in

review more the We will and discuss after topics these Bill markets results. the provides detailed other of on a

over So to with it that, I'll turn Bill.

William Oplinger

by XXX.X shares In quarter, on aluminum net again million $X.XX XXXX Corporation alumina lower $XXX Alcoa for statement, X% the and quarter the partially realized million $XXX attributable prices revenues income sequentially alumina to our charges the the aluminum, Year-over-year, average share volumes. $XXX or were for or Reviewing down loss due fourth prices. to drove revenues million million offset improved compared of and lower declined quarter. restructuring to Roy. Thanks of per on

non-controlling Comfort components million OPEB by offset $XXX of after-tax and this interest. costs million related Special interest and million quarter the Point interim quarter alumina items of our tax the Texas pension favorable non-controlling refinery, in changes, key to charge restart and The fourth the $XX were related million $XXX and closing totaled Bécancour partially $XX to impacts.

special excluding the Now income look let's at items. statement

excluding $X.XX adjusted million items or items million. special special $XX was loss share. Our fourth net EBITDA Adjusted per excluding was $XXX quarter

rate operational $XX the the in XX.X%, through-up XX.X%. brought fourth tax Our annual expense EBITDA for to share full per the quarter $X.XX periods The at million required adding ended fourth the the quarter rate operational prior of rate and to margin year year or was higher quarter XX.X%.

driving look at EBITDA. Let's closer factors adjusted

alumina aluminum This $XX million materials the respectively. for and $XX cost raw adjusted lower million quarter prices down partially lower impact of and offset Lower alumina aluminum EBITDA market prices. drove and

impacts Taken the offsetting $XX partially price million together, all other sequentially, improved impact.

higher and mines eliminations and partially to smelters as refinery material alumina lower change drove released Raw in carbon smelters. inventory. costs costs and get other inventories improvement, prices, offset continue refineries held production the alumina primarily at Intersegment cost by costs lower the their profits at the in in but structures, our category changes were

Alumina its Now continued million at partially eliminations improve improved margin. let's and lower added contributed $X $X aluminum costs, the lower the move million. $XX sales XX% high product EBITDA to million Intersegment segments. value near EBITDA record bauxite better $XX by lower other EBITDA $XX last sequentially favorable offset alumina prices million quarter. on corporate from adjusted million premiums. than million adjusted level were costs and better and declined Aluminum Non-segment In $XX EBITDA adjusted segment prices. impacts

changes up fourth of A our sources decline sequentially. for $X quick working $XXX $XXX to cash approximately in $XX million sourced billion in cash $XXX from the Year-over-year total million in XXXX, EBITDA cash, and major million. year adjusted billion the we with review of ended our sources Turning quarter consisting cash million were uses cash and of $X.X capital.

rolling income The $XXX as largest were payments cash million our as net interest prior venture postemployment related required $XXX to the to partner expenses million payments, capital expenditures, in outflows of made the year adjusted primarily funding of restructuring million benefits smelter pension $XXX including within Outflows payments divestitures. million of joint and also tax, mill and of addition in Spanish tax include $XXX minority of the million well EBITDA. Saudi million, $XXX distributions in $XX

balance look take at the sheet. a let's Now

solid and Our balance in remained strong management XXXX. sheet reflects

year's in days total quarter. even days was a days capital level fourth quarter fourth than XXXX. $XX million to controlled three We spending capital lower Our down and with $XXX working sequentially million last XX

year $XXX last a balance balance. debt key ending adjusted to Our lower from proportional cash increased sheet net metric due primarily million

billion, the manage approximately the net increasing year At OPEB liability up $X.X approximately to net to rates million rounded related and increase by and XX% $XX only to year-over-year offset discount OPEB million. consolidated up pension returns our liability actions the Global rate. end were taken pension liabilities the lower of asset $XXX discount spite in pension and

to outlook Now move let's for XXXX. our

the at look statement income let's impacts. First

our existing up. shipments Bécancour as expect facilities year-over-year to ramps segments product in restart in alumina preproduction all three and We aluminum the in bauxite and increase

we Point $XX compared the from and Suriname closure With of treatment expect Suriname the to impact dam and the negative Arkansas XXXX. divestiture that dam. in of million be negative the refinery, the facility in transformation of approximately by of the is hydroelectric Afobaka A million EBITDA majority $X Springs, divesture the Gum to Comfort

impact model the impact of although million. other also can tax cost reductions XXXX seen the similar of operating rate. expense DD&A segments be the we of rate second to in $XX starting operating estimated we remainder be expect our the Part improve to to levels, expense The is see operational lower in by to in expect quarter. new expected tax conditions and overhead impact positive the impacts the in can corporate our and improve interest roughly greatly to market

to impacts For approximately Sustaining pension funding roughly that $XXX million. to asset elaborate million reserve and Australia are The as increase XX also increase major are will required miles a returns key planned minimum there to increase every process moved. years. to infrastructure OPEB were expected reasons pension mine an move is funded. historical occurs area, $XXX capital expenditures cash for new Willowdale flow the in mine roughly several

We complete Juruti mine Brazil also in to expected a XXXX. at in move are starting be

in $XXX million. target will period through-ups are are alumina tax capital prices large year be prior to Prior $XX of not tax and roughly expected lower payments in million seeking expected. as lower were XXXX return XXXX We

million We impact to of expect environmental closure. Point approximately the ARO increase payments $XXX the to Comfort reflecting

raw mix sales material bauxite, while we the overhauls. and in outages. include quarter. additional will down In sequential adjusted expect we Comfort also on sales costs alumina, maintenance maintenance bauxite list seasonal offset from be lower $X expected of impacts unfavorable first scheduled usual, for benefit $XX the and from prices lower EBITDA approximately They considerations contracts of the million As appendix million the and closure energy Point to improvements

impact. higher North be Benefits $X and In mix an the approximately costs Bécancour benefit quarter. costs price by costs than and products alumina to restart compared $XX million fourth are the in raw rolled to shipments expected negative the from expected in and material million lower million impacts to $XX more of aluminum yielding segment energy lower offset Europe, sequential lower America from

we XXXX cash Also of second $XXX half and those in made prepayments XXXX. $XX we in we refineries that expect contracts total contracts the XX% or year for million half net and and impact second WA XXXX XXXX to cover to and These compared the requirements gas XXXX Australia million the In higher cash Australian the Australia of in cost of for announced in to XXXX. natural contracts the to related payments our to XXXX. refining see of XXXX Western expect begin Western cash cost X.X% the prepayments gas increase we

So to back with it turn you I'll Roy. that,

Roy Harvey

Bill. Thanks

estimates XXXX markets smaller like the start recap market view surplus primary XXXX. we and year, half prior In the year second for new to the largely for lower bauxite, with the I'd we a Guinea, from the the our surplus. As new reason the of of supply the rainy provide due ended than supply disruptions chain in year Decreased season the quarter. is in estimated final to

supply demand For to and to million to the with stockpiles a Guinea China project bauxite we to XX increased mitigate strategic year-on-year. Chinese XXXX surplus similarly supply serving imports risks. will chain where their increase in be in tons we sized from continue close build expect by market Australia refiners

to expected This revision In we surplus is year alumina, market previously. expansion. due smaller primarily we supply with globally. demand some Increased restarts roughly In finished balanced outpace refinery is smelters and also delays than a in Chinese increases. market a alumina to the expect from estimated XXXX Chinese

to in XXXX As deficit. the such, tons alumina China of to we net a surplus from importer world the of bringing expect in its rest meet remain

In XXXX. modest aluminum the Finally, growth. estimate and smelter we than in the XXXX for surplus a turn our offsetting will maintain demand driven additional of market by to deficit supply global expect we from global restarts full-year market more expansions

in and slightly continue a surplus will a China a market. that to expect market, to world ex-China the balanced market expect We be we surplus

for declining in growth, notably aluminum lower America. world ex-China North due year Europe global manufacturing volumes, in expectations trade demand XXXX trade Last tensions, most to primarily our and we lowered activity, growth,

demand anticipating For world in however, are both we XXXX China. and a ex-China growth rebound in in

to expect key real European are the see construction We as XXXX markets In aluminum the use posed market, growth. to demand in and in XXXX challenges end return sectors aluminum about the important we while and transportation a a recovery from to sectors cautiously conditions transport such including China. economic optimistic sector summary,

Now China XXXX state let's concerns bauxite unabated trends strategically in to transition located supply. continue risks. and ownership appetite to China's Alcoa in top-tier refining the of with chain our developments third-party globally market. from to these mines system also domestic October. supply due is the to supply to position. XXXX Meanwhile, strategically In own These to markets the cost assets is due between its with market programs of and bauxite, the likely strategic about to bauxite depletion own first imports quartile serve seven its to double are the stockpiling and has we continued for current global our projected connect long-term medium announced imports alumina

as As fund bauxite which own provide both, provides are bauxite cost year Bill system continued to long-lived increasing refining and global high reserves. quality we can our to to mentioned, our We advantage. we mine and competitive which CapEx this customers, internal position additional for access sustained our a see moves

supply system, importing fully higher relative and served world bauxite and to Chinese costs the with illustrates due bauxite. higher to advantage low-cost refineries low to our for cost position by continue the ex-China refining refineries associated own dependable face This our which have alumina, a the seaborne will of too highly costs bauxite is In of chain. mines

global in forward, bauxite the steepness supply in the curve. China's cost complexity Looking will support

market and pricing deployed closely Alcoa gives complex management is in demand transparent best linked our Alumina inventory, company. practices to cost-efficient another residue is notoriously efficient for difficult and has costly which developed attractive tends the mechanism. that Alcoa this competitive And supply and and bauxite a to market and to keep and and advantage of market-leading

exported challenge from XXXX in Finally, are million the supply in produced in semi growing in Chinese markets. aluminum, tons over to Chinese world to under of million Chinese semis. exports primary form X semis The exports X of of will products new. projected capacity effectively the global fabricated displacing to net aluminum market exports with increased be continues or XXXX. increase in ex-China just of extra semis over China is aluminum the tons Chinese those nothing outside of This competing trend to

nonmarket total Chinese by five unfair than finished past of semis were which been has year's and products the to over fact, OECD. report The in the or years with and Development in by the increases the value In and subsidies of growth subsidies captured contributed report exports ex-China Organization growth and did. the Chinese China's forces, smelting rebates the detailed value-added of clearly ex-China financial incentivize exports more have capacities semis consumption impacts tax This smelters Economic negative have across aluminum Cooperation last including chain. for fueled aluminum demonstrates aluminum that

overcapacity for ministers a a the playing on unfairly and yesterday's to fair. we existing our in would World ensure support sign address but strengthen aluminum. which why by a Trade industrial governments free This to the level European agreement to Organization by field. call continued needs for China That rules Japan States, include encouraged the trade subsidies, positive in is subsidized it As is and trade, are Union be company to we United

exports industry, resulting issue of the Chinese most become important rise the for subsidies are from our single aluminum to not waiting the transform changes we policy has government facing or business. While action

our portfolio are locations evaluating and that are We sustainable environmentally. our ensure to financially

the quartile portfolio a our I more the but high enter currently curve end earlier expect to of cost in in In to have today, even the to improved operations. At we position, we As lead focused produced our and once expect we the capacity with will aluminum, second an products. becoming world said also hold priorities quartile. review, position improved strategic not only us a complete sustainably we low-cost on first cost guide review, to competitiveness

lowest dioxide an of ton per From the improve make among smelting carbon metal of we carbon of we strengthened dioxide a will once in our to energy. XX% this And of the energy. actions perspective, is progressed renewable by one the environmental our review. carbon produced approximately environmental of portfolios We a review, portfolio emitters to through XX% expect our advantage continued due XX% with metal we already portfolio we've that Today, intensity that expect will we're that almost on true emitter renewable focused with our be as produced producers and part global sustainability. lowest world provide with believe our portfolio footprint, changes the

spend discussing a recent time actions most our to improve. more let's bit Now,

left in top is quarter. the in model in of result our effect It annual fourth operating new to November. chart, expected the $XX the in savings beginning of beginning at took First, second million operating costs in quarter the

our business sales, We commercial eliminated and our prior procurement and structure have unit capabilities. consolidated other

plan bringing team, to assets management non-core sale months. in enabling to between $X closer we cash to million XX we quick are and generate our making Also, the of Importantly, the decisions. XX in faster operations are over $XXX through our billion our next progress

waste agreement A few to processing announced sell Springs weeks an Gum our we ago, facility.

the While provide, is services facility the at Alcoa. there it not this function core a can of expanded team scope

valued transaction a agreed have global firm $XXX the a location we to at sell in environmental So, to million.

another the satisfaction post-closing of the this $XXX receive million when quarter, $XX will upon and conditions. closes transaction million We

of reshape to non-core work assist the will us existing our additional cash in our sale we The assets generate from portfolio.

review that process, Comfort we or X.X which portfolio since This our capacity, of or part XX% focused five-year last decision and on made of refining million XXXX. tons is million Point to XX% a global metric of As has which fully been metric of close is that alumina current portfolio, the capacity. action refinery of X month multi-year curtailed segment's the review, smelting approximately tons in first Texas, in permanently the

XXXX. Suriname, the This government, Finally, earlier we Suriname's parliament. with in accordance transfer we milestone the in the important XX, effective an the in of successfully dam happened completed by December year marked agreements closure Afobaka hydroelectric approved where to

the transfer in to of work we important country, dam for in remediation ends come. the chapter While the history will to an remain sites years of our the on

to In closing, eliminating resolved There as We've Alcoa strategic do, and balance as an sheet strengthened capacity progress unprofitable company from has work since our high launched our values. numerous and our portfolio. still much will is XXXX. managing continue independent made legacy our items well guide cost significant in liabilities us we priorities our and by to

reduce in commodity which are that industry. global we being on cyclical a cost, low can so We consistently will better means we focused complexity compete work to

our both value operating streamlining will improvements operations to across to and further deliver capturing value improve so we'll we our our be stockholders. model, financial can With the and We chain. focused. Alcoa's sustainability sustainably, are we returns to work for we finally, advance margin across new And aim productivity drive Alcoa,

commodity We find ourselves roadmap no determined and we the a where progress for have cycle. we clear to in matter success, are

ready Bill take and are that, to questions. with your And I

Operator

with from you. Thank Credit Suisse. go ahead. Woodworth Please Curt question first will come [Operator today Our Instructions]

Curt Woodworth

Yes, thanks. evening. Good

Roy Harvey

Hey, Curt.

William Oplinger

Hey, Curt.

Curt Woodworth

Hi.

that items from about this bit And talked of of So, any cash corporate the number being as of be cash what's you feel normalized? How costs to restructuring what is is some as Bill, little that question? well the year of $XX in transformation to kind restructuring, then between million year. my you or a try of well for as would Bécancour get Comfort, non-recurring just much for through kind first you first kind one could startup Point of this walk

William Oplinger

Yes.

with page that things. there of In kind the on of cash, outflow in look the One restructuring and The $XXX you really rolling are associated divestiture. has think quarter. is uses mill and that was at that cash talked second we the two if numbers So, items. about total, big I sources $XXX of the million million

that, $XXX the And so -- the Bécancour million guess after-tax then restructuring -- how XXXX, I -- In in the half quarter restart. of We've addition the rest in Spanish the about exit an much million then on basis I'm of the $XX activities, to for the the adds combination The there. and in various curtailment, I'm not subsequent sorry. we million. in is layoffs, about sorry, divestiture smelters, second we expended the the year disclosed have, this of $XX

those in numbers also. included that's So

items. those So the big are

closure is you XXXX then transformation, curtailment manage you was our go When XXXX between is the sites XXXX those big in swing Afobaka sites. as that where transformation, of and know, we and to The world that dam had approximately facility. around XX the for the Suriname we revenues producing

have dam government to back Suriname, that. We have of handed we and the that subsequently won't so

million and of Afobaka dam. approximately So, $XX the between difference $X million that is impact the from $XX million

In starting Comfort. to we are that, Point addition on now money spend to

take And so, into will spend as money. Point closure, we Comfort we

And 'XX. biggest to so the in difference dam 'XX that bridges Afobaka and that's addition in driver, that the

out. you enough there help you So to have color we given

Curt Woodworth

helps That the helps. guess then respect to question market. And second with the I lot. that Yes, a just is

And cost forecast pretty you we're that year, you that and it for had came know, China not clear the out looks curve have is growth I maybe aware X%, think X.X% of know, meaningful to capacity X% You of downward in to like. totally all entering revision. the well a plenty and with a they which excess

days dramatic at when you inventory the price XX% situation what couple fourth China a is month year, you semis and until, flat [ph] high. the up semis worsening of XX you were But in and reduction, down was arguably exports pretty a overcapacity at kind actually despite quarter, happened exports the in know, this look ago, had shipping

kind think, maybe a pretty concerned semis demand, you sharp overwhelm global kind the – to you're And forecasting but the how year, transpired you it be in So, is like seems did the supply are certainly looking if not terms have helpful? yet you do in guess, sort thought and piece piece, reacceleration at price the on ex-China still it would what of could this China seems you 'XX could I of you the think Because now walk affect have you very that. pressure in it through of seems would know, of market. would on China like

Roy Harvey

Yes, Curt.

me -- hit let So your question. we answering couple me a try make and let sure of – sure I'm pieces make in and and that can

So, see are when where I of there look essentially, as from the mean, some differences of it that into the, China. essentially that, semis and from is you at from the you that that happened have is world back semis, pulling demand But coming I China, see perspective – of I that grow I these quarter-on-quarter. recognize concerns as one rest the

tends of pull in to both products coming mostly that production and that the scraps is where built these up export then pull demand their that tune more and to of rather from fabricated semi semi to the the business their the primary, fabricated so am policies demand to the I concerned is products. incentivize fact to incentivize comes primary – way the and metal, but basic is they've just selling from industrial that the not it of And rest they world. from And or growth

capture and out first to just value products it's meant basic to those it's products, taxes Just – for essentially those the coming offered added set China. rebates of the of

consumption the of China interacts and inside so, aluminum And down and or whether coming coming from supply comes actual demand how it primary with of and across from that outside or China. then aluminum all to aluminum both that is the of of scrap

I China, connected between In of are outside are it's inside with back the market, there motivated policies. pricing are think the global but China a think economically these end, I and distortions of and and they distortions

which supply own demand is when so, semis, two products fabricated the back with the they semi look two we operate of reconnects have marginal that setting to worst set both the there, cases, happens China's, capacity tend portions and it fundamentals, markets their and China fake but at And it in still those it in markets, brings around is continue what of connects the seen price and but essentially the in to the smaller those world. and we

and we also we producer as certain that in And in extent, serving of see role that marginal see aluminum well. a China alumina to

from years this market in I trade the look balance we couple demand certainly a ratcheted where look thing And back were up little broader as at a bit at mean, policy both most So, risks not the which perspective, of today, see to important we is again. they we ramp ago. and that that as and tensions, trade a obviously down back

change have automotive we construction, question, as You you over where circling think of evolve. know, your beginning I of those housing we highlighted very can growth Curt, and confident to how back year. think metrics I in feel this whether aluminum it's the – on the depending demand or out as and Europe, coming projected But we that China inside in look with construction at of actual data coming fairly out,

are fact to the that risks would I is I this that estimate the to like think there also now. upside, we recognize the but have best right

Curt Woodworth

of I subsidies semis, regarding what rebate substantial semis? export there negotiations, government dialogue deal that are get mean, they amends pretty the make trying in with the clear, massive any terms communication has of any the on sort or for around trade to the been on

Roy Harvey

those a impact we our understand they make to set obviously, subsidies portion time we good how that of a U.S. the the market. sure important sure of very jurisdictions the spend we discussions trying educate where happen to all So to as in in make fact produce

an the can it or that report be. helped we've as third-party, things independent think publishing of that to into best of put independent numbers the which I from is the has had OECD one as

markets into as think has aluminum, subsidization quantify connects primary but downstream just well. to I demonstrate – the then works that into and that into not it over those fabricated the explain, – how into helped semi how that and

I great So U.S. EU we've It delineated Japan, see is step a the actions good have explaining a the again, first need real but done and just that it yet the a what necessarily to this between it, I first pushes now is to correct will agreement we about think action step. doesn't it. yesterday the right with we've, And and think the starts us make the job direction, difference. in but announcement

a beginning, a beginning. it's So, just good but

Curt Woodworth

comments. Great, I appreciate your Thank you.

Roy Harvey

Thanks, Curt.

Operator

Please come Carlos question Stanley. go [indiscernible] Morgan with next from will Our ahead.

Unidentified Analyst

Thank you very the question. much for taking

USMCA. related to first the is So, one

just or it concern that I'm not the even happen, to on and over the it exports did region new I'm Given aluminum the in but the of as you text, China, to time receive you need required the maybe pour new for melt the aware that not the they in semis expressed aware did the from the steel. of is impulse that agreement benefits

the there will done test is kicks signature going of but to years. of signing which that to it any add in protect they to the final in, Roy? years the field the when not what it it reason it similar seven be And of definitely Seven the producers Was in have something is three why some countries? the been after have maybe included - in the may would possible agreement

last in then U.S. and transport could alluded second us I give to see XXXX you how you if and just transport to some end wonder I better my the North demand nothing different as versus growth in may, construction is And America? the that China, markets the is in outlook you mentioned but Europe comments in you gain year, question, if on,

Roy Harvey

Sure.

the minds USMCA trying they to figure the clear negotiators conclusions. and exactly the hit to into me let look out first I'll their probably to steer how came of So, of

think improvements. I know, there are You incremental

you – North expectations where when in the it short think you the as growing but produced positive whole been. fall of I that USMCA, could have it think is and about does, mentioned, on it I for of manufactured think America,

explain relative log and is into Why that think beyond ability put the interests that to lobbying is case, I the is action, my clearly. how of

on it I whole, think I is – is think it the positive.

Canada in positive been more particularly. have to the liked given have and U.S. footprint would we course, even our Of

hit you second On about the your and question the growth hit the particularly main you in demand U.S. my – outlook points.

green some particularly seeing transportation. in Europe, we're think in I shoots

will markets. I growth again we've not corner the think to our as that as the seen U.S., China come think in starting we've I back. turned end In see yet far

just is therefore we're seeing pick that point think perspective, I manufacturing improve. fact a actually catalysts that a actual are from there's look see at we markets, across aluminum perhaps of up, that where to we the as we're these starting start into different turn the not to my orders. But not look yet see to there each - as and and across,

out alluded sanctions we that see U.S. well, U.S. market And started have some normal remember premiums with also, all the it, to those as of difficult they have the and the because signed to Because value into though there the were from been think also of season which [indiscernible] I beginning market elevated it's have at year, pay a the coming added Bill there contracts. duty. the and both to as standpoint in about was imports mix. it's talked in even a where we the premiums, last back Midwest additional during product we've

we I well. for change. are in there it turn positive Again, seen seeing we've yet and think still comes U.S. it's when haven't catalysts So, to and that our demand value-added headwinds - the we're – not premiums as

that the for the think advance gives recent Phase us developments more part of particularly seen we've as towards I catalyst with China, quickly. we start improvements think I the and happening to X that deal,

However, is this Carlos. we've right estimate now, best got the

Unidentified Analyst

very all guys. you thank much, the to you best Roy Excellent, and

Roy Harvey

Thank you.

William Oplinger

Thank Carlos. you,

Operator

will come Korn Goldman ahead. question Please Matthew next from go with Sachs. Our

Matthew Korn

everybody. Hey, evening, good

Roy Harvey

Matt. Hey

William Oplinger

Matt. Hey

Matthew Korn

for you, Bill. A question

elevated other higher the next that we thought. some little included XX%-XX% about? year I mix, rate, are had than for last at play jurisdictional couple quarters catch levels know, speaking. the year, expense, pieces expectation all Is should tax that to the the is Next we know up prudently there

William Oplinger

make We Australia money Australia I it tax we certain in got jurisdictions BBC taxes. in and No, lose we've is we what it's that down all the jurisdictional reserved mean, applied for mix, gets are to money the world rate in around [ph]. comes to where right.

to rate. no that tax end getting that, how So, you have benefits that's high we up essentially and

Matthew Korn

it. Got

the you moved interested, I'm of your you've towards sustainability, framework. Second, as made that more part

the on whole to is the call. emphasis I able What here website, guess fitting ELYSIS free you this produced? I is the on the You extract How a to carbon can got technically aluminum. tell wasn't I've actually us, been information. of lot

I early first delivery. the process, made in know it's but your also it's commercially you

premium what price tell cost? assume make does that commercial more So, say expected, on a additional up it's this how economics for enterprise? is What that about us of anything I'd the you can and can you as the compares,

Roy Harvey

about find you It end I secrecy capital expect and that looking the we how asking better thought the like economical at idea the launch Matt. smelting been to you're the saw parts cost for we XX always work. discussion while going a We've working has of Matt, a into the a how economics was to that. a as that. this more technology. economics sounds we for was process is of of Yes, on to what invested more And and And technical do minute I traditional aspects were versus

In has time reduced the roaring same at good technology course, of the capital China and pretty costs. meantime, in come with with

still end you're on operating be no quite And of believe about the changing because then bit. world to savings and that the this have think the longer operating on China, it and when of up as capacity we going pretty changed outside has in costs operating a focused of - We process you short projects So, the installing a cost we having economically significant cycle, efficient. such anodes more side well. is

future sustainable and think the even and for by metal is become niche I what premiums where opportunity for nurturing a argue, is powerful I would this particularly that also market that growing what today more for an for can and lowest to then bauxite when intensity planet you of carbon when in the refined is and will hydropower connect ways. the mined one low this to be – ELYSIS connect on and alumina that carbon and you metal process the

together, When the carbon will it be you planet. bring metal the lowest this on all

is I we're - that think statement. making with that comfortable

you then going so, that what premium to like. have And is determine to look

– there means first a invest lot it will Apple chose demand. think it think also a to I that production with Apple that us. was that I be commercial they wanted lot says of because that metal, a And

outside do develop products for need premium that on nurture exists other What will in – company, discount that an our are side, know a as of the we might Or competitors some and be as I carbon market, or well that and aluminum intense other peoples working exist. is of produced on this so systems.

decide we the So portfolio, to making I'd portfolio that right that that looming these existing to number changes that our love do. to you that we our and for we to that's will have Alcoa, transitioning but have, - that smelting in that we're and the proofing portfolio in have that ELYSIS right not is thing we're benefit tell making because we Future cycle because financially. question they're be, only for proofing do thing just the the to but need back quantified what changes really the

for to – rough broader emitter the even which benefit yes, portfolio, the smelting of ELYSIS, world, positions all premium that in and is the of us importantly lot the be as then carbon the because all tons But but systems the emerge in a having we added for there. first lowest also to capture tumble need of being more from it's We the smelt of then quartile a business.

the is guess me, at be hazard to that going I some to more about as not that would become it discount to a will point, believe that I because is it talk growing in we trend what reason is that number at but importance. premium or So that real, a more think is this point.

Matthew Korn

saw? something much also is in how emphasize you could economics. environment quarter tied Last Sustainability you it. and Got

So, watching develops. Thanks guys, as we'll market good this carefully much very luck. be

Roy Harvey

Thanks Matt.

William Oplinger

Matt. Thanks

Operator

Our from Deutsche ahead. Bank. next with go Chris come Please question will Terry

Chris Terry

and including the to step do just you're through if thanks a you could the just trying Yes, split as to to So guess, target billion at where you I'd then, to could, think, just Roy start, few the question. through big had thinking it, to target if Hi. I first just of pieces the net pension, the debt if a get to math reduce on not could pension? on be the overall debt, you I target on if today, maybe may new, Hi, the opposed there? you're but And you billion out, for taking $X it's X.X as X.X. XX go that, the - net Bill, don't $X.X where I picture, my question wondered given Slide

from million You the should transaction. $XXX Springs get Gum another

of do most you up you your upper end if then sales of billion million target, $XXX $X And billion, the take that. reach $X asset

step a lot to that not the correctly? how goal? lightest that that in and you cash two allowed I flow. actual there's I just So, reading for goal, four-year Am you that to wanted through saying

William Oplinger

Yes.

So, one by the calculation. out the that's Page XX, of net saying you is, reconciliation debt thing at I would look if start Chris just

a $X.X So, would billion that if the say sitting we XXXX, we're at there, at end of net start that debt calculation.

off targeting, So, need that $X.X would come get to of we're billion. we to that to that level

into and of you of all, X.X% level that from to to was and said three We don't and substantially bunch get minimum one where two return U.S., across that, are. assumptions assumptions passed. first is we they tell change in originally I'll to five-year big what target are expected X.X% those world, the but required now year hit assets, target, simply have parts four-year making today, the on our built U.S.; of making rates we a that a other what pension has varies Essentially are by it the for a discount We debt number, because net can our contributions. a of that There's

that asset the meet would once and included sales. post list. maybe Gum was $XX tell I this, we sale remember, our least simply at the the do down going path requirements can that. started near we making in okay million question, extra you of, closing an So, you Springs, but Gum term, additional That the should for And $XXX million $XXX by Springs, those to minimum contributions, lead Gum say you of million we Springs then didn't in asset our

layer bottom or we've level of executed that list. nearly half on now So, – of the asset end sale of

want cash it in $XX We model to have $XXX then XX, want that'll Page year, is on million projects model small cash be the that's So, sustaining capital that capital $X we million. the allocation seeking use that to will billion sheet. capital right? We business do on of the balance clear, return want invest to this in redeploy year. we pretty and this allocation So in

down at to the beyond And four returning the projects will be essentially mid-size cash free then large- bottom, for the the have, used shareholders. cash we portfolio, any that items repositioning excess that, growth reduction, and flow debt the the

So, circle we be thinking about our few to our to contributions think just original the that's making years. should target minimum back to way your we the debt point, over And it. pension get you can simply next by net

Chris Terry

I a side. just of Okay, the had helpful. That's on cost thanks. follow-up couple

down you and XXXX we on move side just and first you the into want some As step the that's future business. about, the thinking of through some across this opportunities, the particularly think the already, your but then could you've cost gone business, through over just if as all of quartile of course towards aluminum about to wanted the in

So, you carbon energy, XX discuss could caustic say over cetera, just Thanks. directionally next, maybe et the XX if to months?

William Oplinger

we then quartile. us help about that will I'll things can some hit other more first and first Sure, the of piece drive that materials raw the towards talk broadly

and that significant but know, cost this materials we we at in history did is XXXX, back in raw large headwinds saw XXXX You see ancient increases. point,

a where we that that materials XXXX. raw saw amount in would back of of of million $XXX what materials. I would production project should we is in XXXX tell raw larger was of some materials in raw that approximately year reduction than in XXXX accelerating we that you XXXX, I is captured XXXX. see the in

carbon the is That's first caustic second lower two from That's prices. in coming areas. and then prices in

we last some seeing costs are years. that of come back over the we seen So, that few higher have

As going far to first to things. portfolio that's as quartile, a two combination the addressing be down the repositioning of of the

the that really million curtailed. will refineries the and side we to business either We've have of that looking then, only to smelting incremental on the also. in And drive not capacity we're this, metric improved start about on the in smelters, said but savings, Roy X.X is have. energize be and more of or speak can to that to First, productivity asset the we cost addition sold review tons that, significantly, our

Roy Harvey

this to our I in we're - just managers market that portfolio. part very Chris, little think trying add what clear and operating with year's all I and of I this binary point, model the about for And of every plant one we and bit belabor we've plants. do we to are being to change I on with But last is make it. sure market, But what looks stability won't of our each of success like won't year's a to towards last regained as Bill's look a across think lot

using. what best you how how the the will of usages believe first, as we as that help us materials to can. is our to also a and and quickly out raw of possibly how smartly I raw how mentality there's materials And that costs And of plants your electricity pots can when you your also over costs, But connects through you're drive drive compared that to to those so, a component price getting of with your outcomes. so run it and you that the drive to about are maintenance do choice plants financial you about

looking confidence I problems to up some are actually of our improvements of improvements and we're make at see we've in it's we're that fresh operating sure there. new team So, And and being a last decade. real ends think have our that lot cost people efficiencies. determined in I productivity we in improvements to determined - the for on working that been the end have that

in - it's XXXX that, come beyond. things to most one of we'll certainly important on and more doing the it So, but Chris, is really be

Chris Terry

thanks, so guys. Okay,

million go-forward, is as CapEx that? XXXX The is in that - items XXXX, if million $XXX Thanks. versus Just may. beyond one sustaining we CapEx for of other $XXX of there right, guidance that expect more in should million is $XXX I the well or

Roy Harvey

Yes.

the XXXX. million, in one Both and in XXXX mine $XXX XXXX. So will XXXX, and down put Brazil, characterization just in in the between We've difference in up around got be Australia are million those full $XXX be the swing we in one XXXX of big just two starting will wrapped some XXXX mills. to spend in

moves of it. next in provided couple segment, haven't an elevated outlook that's We mine think the have on bauxite past for I years at will and XXXX but the spending what's driving so the least we

Chris Terry

me. That's all thanks. from Okay,

Roy Harvey

Chris. Thanks

William Oplinger

Thanks Chris.

Operator

Gagliano Our Please ahead. with from go David next BMO. question will come

David Gagliano

just thanks of ones. fairly taking have questions. couple Hi, I for good my a

the that volume how that the decline how in due price much much million, is and bauxite seasonal quarter-over-quarter to of on First, business, of on is $XX decline EBITDA decline? due the to the

William Oplinger

piece so intercompany side, of biggest Out million, is from two-thirds picked third tell I intercompany two-thirds out seasonal lower probably coming the of that the that, both The the price decline clearly a price, of the Dave. you million, $XX is is $XX would has volumes. And and external the is of pricing. up and on refining but

David Gagliano

Okay, and then just a question. related

driven just much for rate this price segment at run decline As forward we that reasonable point, that about I'm assuming piece correct? think that that's is pretty modeling moving moving forward purposes,

William Oplinger

we pricing couple bauxite internal reset typically unless that there's last years. We changes, once really a over seen XXXX. for a Yes, the in move which major year, haven't marketplace of the

assume think I yes, XXXX. So, for that

David Gagliano

question stay assets, volume X%. aluminum. slightly a bigger calling When a to should of we curtailment be to X.X question, prices for identifying the under of fairly global to Obviously, my continue of specific my in shipments other they through backdrop year-over-year soft at primary I great. consider for party surplus really about picture. in premiums much X% XXXX, then is XXXX fade? terms how get look we Okay, to move but there's if million growth cautious for tons restart, X.X without of as that imply And Bécancour and realistically targets I third review

William Oplinger

and of in it's market those dynamics light difficult quickly. fairly to fact are Comfort be you of Yes, the XXXX looking we'll will really, range bottom that to it's really point that announced the our we sales. the there of of decisions - are already fairly those executed can I made to end already in and XX look answer, the clearly, at announced really closure be only closed and least on asset at plants on at Dave. the have When portfolio, high strategy, cost in nearly half some have the we days Point or

at would economics run the we I look tell you, market look So, we'll fairly look make rate we and at plant, at each we current and expeditiously. the decisions environment

Operator

ahead. go Lucas Our FBR. with next Pipes will question Riley come B. from Please

Lucas Pipes

structure afternoon Hey, appreciate the question plant Thank contribution quick any agreed Springs generating sort a of – be and under the this EBITDA I everybody. I color was you. you under current good Is Gum to that the sale-leaseback would so, have would that this on akin transaction. on if or a what plant that. follow-up to?

William Oplinger

as And Veolia. our of had, sale Yes. in EBITDA an XXXX, a we a indication and as out in the of had of gives to to is improving to XXXX. the and It a far you sale, million. is contribution sale-leaseback. not contribution planet financials. We breakeven It a good $XX lost be kind the Gum Springs out it's plant use That of pretty

We do have a processing mid-term contract for spotlighting. and

plant have So, deal is good a are also for that number to bright the taking our going by It know the are grow It's good our a a be today for also deal It owned really for a years, to plant. will my it's a this good they going future. that that capabilities gets and the deal. but Alcoans shareholders, our good the gets a deal Veolia SPL plant, it's company but to that's a employees from perspective, Alcoa. of be for we

good So, I think really a it's transaction.

Lucas Pipes

profitability very And a plant? helpful. That's certain it's number you're of guaranteeing not to like the

William Oplinger

sending mean, CL a number I be a level. are but not. guaranteeing there our years, of absolutely profitability No, we we not will for

Lucas Pipes

and That's of very it best helpful. luck. I appreciate

Roy Harvey

Thanks.

William Oplinger

Lucas. Thanks,

Operator

Tanners question of go Please will Timna America. Bank next come ahead. with from Our

Timna Tanners

Happy New Hey, Year. Yes.

Roy Harvey

thanks. Timna, Hey,

Timna Tanners

thanks. there, Hey

a on clarify. follow-up a few I to wanted just points So

talks and in lines, forward? along energy far smelter think us closure? that or If yet on startup then the to terms complex of the Portland could still subsidies, come already those are benefit how and the And in being you an about give for how along same the complex of terms going Bécancour we update to Spanish

Roy Harvey

deal out the in was agreed of Essentially to Portland. deal. on to we'll start me a X.X go let that that the And So, middle year we XXXX.

is moment between a And and need time, or to there solution so that eventuality if that now there if particular another we in plant. is repowering for in see

of is priced markets with good is So, a it's government, operates discussions in It highest a good of plant technology. to the – energy it very midst be the It stably. the that most planet. just very on happens one

will standpoint. tend the through have a to back pots month. this not the We see and in the that halfway Bécancour, about that, we're part back helping you'll is agreement second pot So, until XXXX. action restart be we fact, all your of that the by those question, actually in plant end from middle Timna, of of On wouldn't take action on employees

those for good is a of around system. the situation some that to reestablish And following us also lockout takes for workers, Bécancour good – a an pleased we're It our having care. lot an best it to of and is this be it. been have employees. environment happen startup We're that having it's important But XX connections we've very important where been months. with we very our far, a Those so with I've

is to positive track. how So so the progressing, really see on that right

William Oplinger

an numbers of we after and some XXXX, said half XXXX. to around in On million million announced Bécancour, we tax spend throw half we would me first $XX $XX million million let of when Yes, $XX to in the Timna, Bécancour $XX second that. additional restart, the

loaded than actually we what has are been – a more We spending backend anticipated. the bit little probably

$XX first So, Bécancour, XXXX. at the about we that million second pushed half to spent of the gets in half

the operations. $XX EBITDA at Put was any a spend. not that's perspective estimate divested have in Spain was the in special we're little before Spain that reducing overall about this you. Spain, fact our of of million The point, hit That for and the just we So, bit of items. XXXX

since assets. have won't in hit clearly, XXXX, we own EBITDA don't we that the So,

known go We quarters. $XX still who some about that's partner, to partner, be people bought million our that are payments done over as who And that have out next the to the has six it, to have partner. our

that million still next have we outflow the cash So, over that's quarters, six and total. XX

Timna Tanners

Okay, super helpful.

William Oplinger

that Hope helps.

Timna Tanners

$X taking know wanted back, step the is, about cash talked I you. a then thinking another question in that's about above And great. past, to you've just at Yes, returns $X to ask Thank I shareholders that into to like in also seems sheet. level, a billion cash obviously, it and on balance above next getting terms billion close you're And lot of cash requirements of the year. but

updated a So, start any or want on to about couple quarters to want a $X to or those hit how about and for think changed billion you you you you it, I just is or thinking – position think returns? that how that priorities Thanks. cash

William Oplinger

billion to between as one level, last cost some are cash, repositioning get quarter. but that those haven't And balance changed. If items. are announced the is some you there cost balance. that the us us we we'll $X portfolio we'll capital said, clearly of things the allocation the cash, we as Yes, The will same going priorities the four to model the

What the that tell the towards environment towards. the to I we contribute fairly we contributions the in and generated generated again, quarter third you made fourth tough know, time pleased I we would These and cash you quarter. is, are, with was market the generated things we all in same fact personally needed cash we at that cash the

mandatory for quarter. fourth So, pension in contributions the our we required instance, made

-- is in would you that year. quarter an end I the from the cash of tell the the bright of perspective, balance So, at the spots one overall was

Timna Tanners

again. Thanks enough. fair Okay,

Roy Harvey

Thanks, Timna.

Operator

Independent. Our ahead. Please Tumazos, next question from John go comes

John Tumazos

China? elaborate a you bit more which year. aluminum the on or Could markets Chinese last vehicle for are demand? are one you. China up aluminum little in markets were read the in X.X% biggest markets that Which other two sales Thank We fell the and

Roy Harvey

pretty So broad that's John. question, pretty a that's - a

sort that John, know you were see direction. XXXX. here the into where of gives I going market couch so it don't hopefully you at terms exactly it of So, we me growing but right let how in question, least with the

William Oplinger

it. on put done down And some numbers after you’ve we'll that

Roy Harvey

across from board, Yes, - the the of when look so construction. you inside largest component sits

market to the of of Chinese people one in saw back the is that think year that for last process. I you building last highlights the comes started at starts come see in Unfortunately, the really again. year, end aluminum

we're into building year building what completions. those that turn hoping - starts to So, this is those see building

the XXXX. have We to turn started into corner as that we come see

happens growth inside going of construction China. in of that happily, the And that so drive that's largest consumption to some help market. the aluminum And is

a that an programs that also in as is transportation – that for happening growth stimulus going driving important From be this the China believe what's a well year. coming into standpoint, and is one We that positive to market.

I fact, and see be of strongest think the in growth, particularly strongest, in across come that it growth negative one to But see XXXX. you back the we we'll have that growth, the was China. a come difficult don't X% reference. should markets I difficult, that back, that you

that mention foil. continue some see in also and just would I to decent packaging we growth

saw a grow. the China. That's strong I fact, growth see in material to strong a aluminum to big to little pretty overall think to growth that that compared to packaging consumption But XXXX. continue contributor that In and as the continues be continues a that aluminum will bit in we be down we

William Oplinger

see and a well turning to not see mean, You cover. wanted it is had we contraction I big in all packaging We market the machinery, kind is next the you're a probably are things like construction that of John, I addressed markets The Roy transportation. level transportation that. bigger that and around pretty in that foil, did but same XXXX. referencing, you did,

So those the big markets. are

John Tumazos

you. Thank

Roy Harvey

thanks Yes, John.

Operator

Berenberg. go question next Our ahead. Please come will from with Paretosh Misra

Paretosh Misra

Thanks for taking my question.

couple a on other follow-up of to Just questions.

given market downstream of business? on to market have that close that's sources On you the don't out about how end every a now demand? having read you you it's whether intelligence customer more you some going Do market going market, how shipment or your know any or automotive end are that you facility is your to market construction or the have

Roy Harvey

that Yes, actual aluminum when Inc. markets, we consumption Alcoa is who instead end Alcoa we that because it into Paretosh are, say to that get the of I'd of the goes Corp. is

end We market. are a step final that final, removed from that

So, we analysts coming and hear products our added sales other from value into products rolled see and understand from and out added in what's what to what trying or we our aluminum of value aluminum. and put we effort

idea comes more particularly our have I and out when a what it it's it not smelters. We - So, metal do interpretation going, products. what's value our our an think good pretty much to by of is more driven is of where coming - added so

is So, for any different PXXXX kind But or into typically et it's going the it's that go going into - grade particularly billet it of whether it's [ph] can can very commodity whether sheet for use. or extrusions, the into cetera.

Paretosh Misra

business. Got it. year? And just been mostly year last aluminum follow-up a versus there has this premiums, shape guess change I so quick contract that's on a the any

Roy Harvey

Yes.

reasons. it's a change better, fact that shape know, and two very-very-very that when and down. America seeing there and down, but seen really our skewed decline. in are significant the we're and unfortunately pretty come we've we has remember product seeing declines come it number been is and Number one, for for – Europe, a You fact is, Midwest premiums premium is the that also not we've North two seen towards and What we're

two over I back into has tie That, it Rusov things. to would market. one, that Number [ph] the come

not So, of contracts most XXXX, XXXX was lot under sanctions, into they those added America of end so if Rusov able year, North were of step those with XXXX you of set to a remember [ph] particularly in annual the value were businesses. and for still at beginning

they them. are sanctions share. obviously, market For And recapture thus driving behind to XXXX, fully the and participating really are now are

So having that's on amount the available. an impact of material is that certainly

it think a two, is important premiums, markets. start I imported such and you XXXX because coming a of higher we'll really Midwest to that period see also attracted amount material differentiated of number And into had decent

in. seen You've that come

But both highs. value XXXX I come same markets. could time, it in Rousav seemed think change we're that [ph] from West if more off others seeing the the at and premiums and their added premium imports the from

Operator

to like concludes you. I Harvey, session. remarks. now to closing any Roy our Thank turn the This conference question-and-answer for would

Roy Harvey

would you, today. And everybody like Thank your for I Shawn. Good. to thank time attention and

will improve Company We ourselves into make act to the strategic on we've act program this the to position and to we out, to sure that that future. set for success continue and aggressively

and here you So, look three us, to you road. talking to down joining the we for months thank forward

Operator

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