DERIVATIVE INSTRUMENTS:

12 Months Ended

Dec. 31, 2022

DERIVATIVE INSTRUMENTS:

DERIVATIVE INSTRUMENTS:

NOTE 15 – DERIVATIVE INSTRUMENTS:

From time to time, the Company uses derivative instruments to manage its cash flows exposure to changes in commodity prices. The Company does not enter into derivative contracts unless it anticipates that the possibility exists that future activity will expose the Company’s future cash flows to deterioration. Derivative contracts for commodities are entered into to manage the price risk associated with forecasted purchases of the commodities that the Company uses in its manufacturing process.

Cash Flow Hedges of Natural Gas

The Company’s objective in using natural gas derivatives is to protect the stability of natural gas costs and manage exposure to natural gas price increases. To protect natural gas costs from estimated price increases in the past winter season, in the third quarter of 2021, the Company acquired two derivative instruments that began in November 2021 and end in March 2022.

The Company assessed these derivative instruments as Cash Flow Hedges. As such, the effective portions of said hedges were initially reported in Other Comprehensive Income (OCI) and were reclassified as earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The Company did not identify any ineffective portions of these derivatives.

As of December 31, 2022, the Company held no derivative instruments.