11:20 AM EST, 01/10/2025 (MT Newswires) -- Chemtrade Logistics Income Fund (CHE-UN.TO) on Friday issued its 2025 outlook and increased the level of monthly distributions to unitholders.

The company expects its 2025 adjusted EBITDA to range between $430 million and $460 million. Chemtrade expects to end 2025 with a net debt to adjusted EBITDA ratio close to two times with an implied payout ratio of about 48%.

"The incoming US administration has threatened to levy a 25% tariff on Canadian products being exported to the US. It is difficult to estimate the impact of potential tariffs as it is possible that these could be passed through to customers. This guidance does not take into account the impact of potential tariffs," the company said in a statement.

Chemtrade plans to invest between $40 million and $60 million in 2025 in growth capital expenditures, which includes expansions to its water treatment chemicals, upgrades to ultrapure sulfuric acid production and other organic growth projects.

The company also added that growth investments could potentially include megers and acquisitions, should Chemtrade identify an opportunity that fits strategically within its portfolio and has synergistic value. The acquisitions Chemtrade would target would primarily be those with annual adjusted EBITDA in the $10 million - $50 million range.

Chemtrade also increased its monthly distribution of $0.055 per month by nearly 5% to $0.0575 per month effective with the distribution that will be declared during the month of January. The company added that it intends to continue buying units under its share buyback program.

The company's units were last seen down $0.08 to $10.17 on the Toronto Stock Exchange.

Price: 10.17, Change: -0.08, Percent Change: -0.78