From GlobeNewswire:

Innospec Inc. announced financial results for the fourth quarter and full year ended December 31, 2023. Operating income grew sequentially and versus prior year in Performance Chemicals and Fuel Specialties Oilfield Services. Operating income for the quarter was $18.0 million in Performance Chemicals, $32.6 million in Fuel Specialties, and $18.3 million in Oilfield Services. Innospec generated $72.4 million cash from operations in the quarter; Net cash of $203.7 million. Lastly, for the full year, total revenues of $1.95 billion decreased by less than 1 percent from $1.96 billion in the prior year. Net income for 2023 was $139.1 million or $5.56 per diluted share compared to the prior year net income of $133.0 million, or $5.32 per diluted share.

In the fourth quarter, Innospec had cash generation of $72.4 million and operating income results from Performance Chemicals, Fuel Specialties, and Oilfield Services. Additionally, QGP acquisition closed in the quarter. For the full year, total revenues of $1.95 billion decreased by less than 1 percent from the prior year. Net income for 2023 was $139.1 million or $5.56 per diluted share compared to the prior year net income of $133.0 million, or $5.32 per diluted share. Quarterly revenues decreased by $16 million, or 3%, and net income was $37.8 million or $1.51 per diluted share versus $25.5 million or $1.02 per diluted share last year. Adjusted non-GAAP EPS in the fourth quarter was $1.84 per diluted share, compared to $1.20 per diluted share a year ago.

Commenting on the fourth quarter results, Patrick S. Williams, President and Chief Executive Officer, said, “This was another very good quarter for Innospec. Performance Chemicals and Fuel Specialties both delivered double digit operating income growth and improved margins over the comparative prior year quarter, while Oilfield Services maintained a strong performance. I was very pleased to announce our acquisition of QGP in December. QGP gives us a strong strategic position in Brazil and will be integrated into our Performance Chemicals business.

In Performance Chemicals, revenues of $137.2 million were down 5 percent from $143.9 million in the fourth quarter last year. A negative price/mix of 14 percent was offset by higher volumes of 6 percent and a positive currency impact of 3 percent. Gross margins of 21.3 percent were up 2.9 percentage points versus last year. Operating income for the quarter of $18.0 million grew 14 percent on the prior year. For the full year, revenues were down 12 percent to $561.6 million and operating income decreased 43 percent to $54.5 million. In Fuel Specialties, revenues of $182.1 million were down 1 percent from $183.3 million a year ago. Volumes were flat, and a negative price/mix of 4 percent was offset by a positive currency impact of 3 percent. Gross margins of 32.9 percent were up 5.1 percentage points on last year. Operating income for the quarter of $32.6 million was up 22 percent on last year. For the full year, revenues were down 5 percent to $695.9 million and operating income declined 10 percent to $109.7 million. Adjusting for the impact of non-recurring Brazil inventory charges in the first half of 2023, operating income grew by 3 percent to $125.1 million. Revenues in Oilfield Services of $175.4 million for the quarter decreased 4 percent from the $183.5 million in the fourth quarter last year. Gross margins declined by 2.4 percentage points from a year ago to 38.0 percent. Operating income of $18.3 million was down 11 percent from $20.5 million last year. For the full year, revenues were up 16 percent to $691.3 million and operating income increased 88 percent to $78.6 million.

Mr. Williams concluded, “Our business teams delivered a strong overall result in the quarter and full year. Despite our expectation for continued economic headwinds in the coming quarters, we enter 2024 with optimism. Our growing pipeline of technology-based organic opportunities will continue to advance in parallel with our integration of the QGP acquisition. Cash generation was again excellent in the quarter, and our debt-free, net cash position remained over $200 million after funding the QGP acquisition. Entering 2024 we continue to have significant flexibility and balance sheet strength for further M&A, dividend growth, and organic investment.”



Read more: Innospec Reports Fourth Quarter and Full Year 2023