Bully de Beer schreef op 2 jun 2019 om 12:34:Seeking Alpha: OCI: Expect A Record Performance In Q2
1 juni - seekingalpha.com/article/4267535-oci-...
"In fact, the stockpiles of nitrogen fertilizer more than doubled from half a million tonnes to 1.1 million tonnes, and according to OCI, pretty much the entire excess stockpile was sold in the second quarter of the year as OCI shipped "record fertilizer volumes during April and May in a more positive market environment," and its inventory levels already have returned to a normalized situation.
This should result in OCI reporting record results in the current quarter, and although the company hasn’t shared any specific details, we have the impression OCI’s decision to delay shipments from Q1 to Q2 was an extremely solid move, and we should see an excellent free cash flow performance in the second quarter of 2019.
OCI’s financial results in the first quarter of the year were absolutely horrible, but it’s important to understand why they didn’t live up to expectations. The weak first quarter should be completely mitigated by a strong second quarter, and we shouldn’t forget that on an adjusted basis, OCI’s sustaining free cash flow was still a very respectable $56M.
This means the company remains on track for a rapid deleveraging this quarter, and it should be a no brainer for OCI to generate in excess of half a billion dollars in adjusted free cash flow which will help to reduce its net debt and regain investment grade status."