Consolidated Energy - comment

Management expects the impact of curtailments in Q3 (in T&T) will be reversed in Q4. Outside of the T&T Methanol business, results were at or above our expectations. CONSEN favoured the UAN business with natural gas, as margins were higher. We expect the $227m May 26 SUNs will be repaid by additional Senior debt (either additional TL B or possibly an SSN). Repaying the 2026 SUNs with senior debt layers the remaining SUNs, but we still see these remaining SUNs as covered by the value of the assets. Management denied any intention of a sale its 50% stake of Natgasoline to Methanex or ceding operational control for a fee. We still expect Methanex will want to purchase control eventually, but do not see this as imminent. We have been sceptical about the repayment of the $280m loan to Proman in December, and nothing on the call changed this.