John Fortson: That’s right because. I mean TOFA value, Chris. I mean it has a lot of value. It’s a problem today is it’s value, you have to look at crude tall oil versus the value of TOFA and Rosin, right? And right now, the rosin is despite really elevated TOFA prices, the Rosin is very, very low price. Frankly, this is inhibiting its use in TOFA’s use in the biofuel market because it’s making it unaffordable relative to what other options they have like used cooking oil. The beauty of AFA is it does not generate Rosin, but this doesn’t mean a wholesale exit. However, I want to be upfront if these market conditions persist and it is uneconomic to operate crude tall oil, a refinery of crude tall oil, not necessarily the products but a refiner of crude tall oil, then we will reassess our plant position.
Operator: We have a follow-up from John Tanwanteng from CGS Securities.
Jonathan Tanwanteng: Just a quick one just on next year. I know it’s early, but would you expect EBITDA to be higher or low just directionally, given how you phrased the contribution from Charleston…
John Fortson: I’m not going to get into 2024.
Jonathan Tanwanteng: I know that’s noncore…
John Fortson: Yes. Right. I mean, look, I’m not going to get into 2024, right? What I will say is, as you know, we have a great performance materials business that is continuing to grow. We have an APT business that is continuing to grow. And while it’s having some macro issues, to the extent the macro economy improves, it’s got a great, bright future, right? We’ve laid out for you the row path for Performance Chemicals. I do think what’s critical for you to understand is — and you’ve touched on it, is we believe the operating assets of the Performance Chemical or the core business of the Performance Chemicals segment, we have made more attractive, right? And as the economy recovers, that business will do very well. We will have to manage through the CTO resales for some period of time.
You know that there’s a 2-year sort of term on the unwind from DeRidder, but there’s a lot of dynamics at work in there, and that is, in our view, sort of separate in a way. So that’s where we — that’s what we want you to focus on…
Jonathan Tanwanteng: Okay. Great. Do you know if the CTO resale impact is going to be more front loaded or back loaded or is it just impossible to predict at this point?
John Fortson: It’s hard to say, but I will say that we are going to be knowing what we’ve done, we are going to be pretty aggressive sellers of CTO through the first half of 2024.
Operator: We have no further questions. I hand back to John Nypaver for some concluding remarks.
John Nypaver: Thanks, Adam. Well, everyone, that concludes our call. Thank you for your interest in Ingevity and we’ll talk to you again next quarter.
Operator: This concludes today’s call. Thank you very much for your attendance. You may now disconnect your lines.
