Covia reported results for the fourth quarter and full year ended Dec. 31, 2019. As a result of the merger that closed on June 1, 2018, Covia’s 2018 reported results under U.S. generally accepted accounting principles (GAAP) include the consolidated financial results of both Unimin Corp and Fairmount Santrol Holdings Inc. for the seven months ended Dec. 31, 2018, as well as the stand-alone results for Unimin for the five months ended May 31, 2018, including the high-purity quartz (HPQ) business reported as discontinued operations.
For the full year, the company reported total volumes of 30.5 million tons, a decrease of 13% compared to 2018 on a pro forma basis, driven by lower Energy segment volumes.
For the fourth quarter, the company reported that total volumes decreased 16% both sequentially and compared to the fourth quarter of 2018 to 6.6 million tons.
“Covia demonstrated strong execution capabilities in 2019 in the face of challenging market conditions,” said Richard Navarre, chairman, president and chief executive officer. “Our Industrial segment delivered a good year with profitability growth outside of the divested businesses. We continued to reposition and restructure our Energy segment, including the idling of more than 15 million tons of capacity, commissioning our in-basin production facilities, reducing our railcar fleet by more than 3,000 cars, and eliminating approximately $195 million in railcar purchase obligations. Finally, we took meaningful steps to improve cash flow through reduced capital expenditures, lower working capital, and non-core asset divestitures, resulting in a $256 million net debt reduction in 2019.”
Navarre added, “Recent events are expected to create a challenging environment in our Energy segment; however, we will remain focused on operating safely, controlling costs, and reliably delivering consistent, high-quality products to our Energy customers. We believe our Industrial segment is poised for long-term growth as we leverage our recently commissioned Canoitas, Mexico expansion, drive further cost reductions within our operations, invest in our nepheline syenite operations in Canada, and expand our product portfolio.”