Loading...
•
Mar 31, 2021
Innospec Q1 2021 Earnings Report
Innospec's first quarter 2021 financial results reflected record sales and operating income in Performance Chemicals, continued recovery in Fuel Specialties and Oilfield Services, and strong cash generation.
Key Takeaways
Innospec Inc. reported a decrease in total revenues to $339.6 million, a net income of $23.4 million, and an adjusted non-GAAP EPS of $1.06 for the first quarter ended March 31, 2021. The company saw record sales in Performance Chemicals and sequential growth in Fuel Specialties and Oilfield Services. They also increased their semi-annual dividend by 10 percent.
Performance Chemicals achieved record sales and operating income.
Fuel Specialties and Oilfield Services showed continued recovery.
Cash generation was strong, leading to an improved net cash position of $116.6 million.
The semi-annual dividend was increased by 10 percent to $0.57 per share.
Innospec
Innospec
Innospec Revenue by Segment
Revenue by Segment
Fuel Specialties Revenue
CapyFin.comOilfield Services Revenue
CapyFin.com Forward Guidance
Innospec expects continued improvement in overall market conditions as the post-COVID-19 economic re-opening progresses. They are managing cost inflation through price action and collaboration with customers. In terms of capital allocation, they have begun to pull forward incremental organic growth capital expenditures to support existing demand in Performance Chemicals and have significant balance sheet capacity to pursue complementary acquisition opportunities for this business.
Positive Outlook
- Expects continued improvement in overall market conditions.
- Well positioned for the recovery in global economic activity in 2021.
- Managing cost inflation through price action.
- Completed expansion in production capacity for proprietary drag reducing agents technology at Texas plant by Q3 2021.
- Strong cash flow generation.
Challenges Ahead
- COVID-19 pandemic effects.
- Economic restrictions and vaccination delays in Europe.
- Strained global supply chain.
- Port delays and regional shipping container shortages.
- Widespread force majeure declarations in the global chemical industry.
Revenue & Expenses
Visualization of income flow from segment revenue to net income