Ciner Resources LP (NYSE:CINR) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 08:30 am ET
Welcome to Ciner Resources Third Quarter 2019 Earnings Conference Call and Webcast. Hosting the call for today from Ciner Resources is Mr. Oguz Erkan, Chief Executive Officer; he is joined by Mr. Ed Freydel.
It's now my pleasure to turn the call over to Mr. Ed Freydel. Please go ahead.
Thanks, Crystal. Good morning and thank you for joining us to discuss our third quarter 2019 earnings. Oguz Erkan, our CEO, will discuss some highlights from the quarter, I'll then provide additional details related to our financials, and Oguz will close the call with some additional commentary on our operational performance and growth plans. We'll then take your questions.
Before we begin, I'd like to remind you that the comments included in today's conference call constitute forward-looking statements. Actual results may differ materially from the results suggested by these comments for a number of reasons, which are discussed in more detail in the Company's SEC filings. Certain financial measures discussed during this call are considered pro forma and are therefore, non-GAAP financial measures. Reconciliations of those non-GAAP financial measures can be found in our earning press release.
I'll now turn the call over to Oguz.
Thanks, Ed and good morning, everyone. Welcome to Ciner Resources' third quarter 2019 earnings call. We are very excited to report that quarter three, 2019 was the best production quarter in the plant's history, with 711,000 short tons produced and marking the fourth consecutive quarter of record production levels. This is the second time ever the plant generated over 700,000 short tons in a quarter, with the prior record set in Q4 2018 at 709,000 short tons -- 100,000 short tons. It is evident that our focus on operational reliability and higher overall utilization has continued to show its results in our production volumes.
Steady demand for soda ash has continued to drive favorable pricing dynamics, with third quarter 2019 domestic price up 6.7%, and international pricing up 4.6% compared to Q2 of -- Q3 of last year. Domestic prices are also up 8.3% and international prices are up 6.1%, for the first nine months of 2019, as compared to the same period in 2018.
Some of this price movement is related to our efforts to optimize our sales mix through the year, redirecting volumes from lower-priced domestic customers to the export market to maximize our net return. Consequently, our overall sales mix in the first nine months of 2019 has shifted to 68% international and 32% domestic from 58% international, and 42% domestic over the same period in 2018.
We'll continue to monitor both the domestic and international markets to shift our sales as needed to maximize our net return. The favorable pricing environment coupled with our strong production profile has driven net sales to approximately $137 million in Q3 2019, and a 11% increase over Q3 2018 and to nearly $400 million for the first nine months of 2019, a 12% increase over the same period in the prior year.