SunCoke Energy Partners, L.P. (NYSE:SXCP) Q3 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 08:30 am ET
Good morning. My name is Matthew, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the SunCoke Energy Partners' Third Quarter 2018 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answers session. (Operator Instructions)
Andy Kellogg, Treasurer and Director of IR, you may begin your conference.
Good morning, and thank you for joining us this morning to discuss SunCoke Energy Partners third quarter 2018 earnings. With me are Mike Rippey, President and CEO; and Fay West, SVP and CFO. Following management's prepared remarks, we'll open the call for Q&A. This conference call is being webcast live on our IR section of our website and a replay will be available there later today. If we don't get to your questions on today's call, please feel free to reach out to our IR team.
(Forward-Looking Cautionary Statements)
With that, I'll now turn things over to Mike.
Thanks, Andy, and thank you all for joining the call this morning. Let's start with the third quarter performance on Slide 3. During the quarter, we generated $54.6 million of adjusted EBITDA, which reflects solid performance from our Middletown and Haverhill coke facilities and strong throughput volumes at Convent Marine Terminal. Performance at CMT has remained strong with 3.2 million tons of throughput in the third quarter. We continue to see increased demand from our customers as they leverage CMT's unique capabilities, and we expect demand to be healthy for the remainder of 2018.
This quarter, we began work on a planned outage at our Granite City facility, which we do at all of our facilities from time-to-time. Fay will discuss the financial impact in more detail later in the call, but the scope and duration of the project increased materially versus original estimates. Our evaluation process uncovered some additional repairs and improvements that will benefit our long-term operations.
To provide some context. We planned a major outage at Granite City to perform work on the flue gas desulfurization system. During an FGD outage, heat recovery steam generators are off-line. We utilize that time to thoroughly evaluate these assets to make sure they are well positioned for long-term operational efficiency. Their team performed detailed analysis in the Granite City facility. Their findings, coupled with our knowledge of HRSGs, made it clear it was necessary to pull forward various repairs and upgrades that were planned for future years in order to improve the long-term reliability and operational performance of these assets.
Additionally, as we mentioned on our second quarter conference call in July, Granite City experienced a fire on a major piece of equipment, the pusher/charger machine, which resulted in lost production and steam generation during the period of downtime. These two events significantly affected our third quarter financial results, and the strong performance of our other facilities will not be sufficient to overcome this impact as we look to our full year EBITDA guidance. The focus