- Sisecam Resources saw a strong end to 2021 as the soda ash market recovered, and as a result, they started 2022 by declaring a record quarterly distribution.
- When looking ahead further into 2022, the prospects for the economy to keep running hot makes for a supportive outlook.
- Although given the inverted yield curve, it seems that risks lay ahead in the following years with an economic downturn quite possible.
- This would hinder their financial performance, thereby seeing much lower distributions given the economic sensitivity of soda ash.
- Regardless, it remains uncertain whether they could sustain their record distributions even with good economic conditions, and thus, I believe that maintaining my hold rating is appropriate.
For further details see:
Sisecam Resources: Starting 2022 With Record Distributions, But Unlikely To Last