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Mar 31, 2022
Innospec Q1 2022 Earnings Report
Innospec reported a strong first quarter with revenue up 39% and operating income up 57%.
Key Takeaways
Innospec Inc. announced its financial results for the first quarter ended March 31, 2022, with total revenues of $472.4 million, a 39% increase from the corresponding period last year. Net income for the quarter was $36.5 million, or $1.46 per diluted share, compared to $23.4 million, or 94 cents per diluted share, recorded last year. Adjusted non-GAAP EPS in the first quarter was $1.53 per diluted share, compared to $1.06 per diluted share a year ago.
Revenues increased by 39 percent year-over-year, reaching $472.4 million.
Net income was $36.5 million, or $1.46 per diluted share, compared to $23.4 million, or 94 cents per diluted share last year.
Adjusted non-GAAP EPS was $1.53 per diluted share, compared to $1.06 per diluted share a year ago.
Cash and cash equivalents totaled $105.6 million at the end of the quarter.
Innospec
Innospec
Innospec Revenue by Segment
Revenue by Segment
Fuel Specialties Revenue
CapyFin.comOilfield Services Revenue
CapyFin.com Forward Guidance
Innospec anticipates strong demand to continue in all end-markets and is managing additional price actions to offset inflationary impacts. Managing ongoing supply and logistical challenges will continue to be a key focus. The company expects Oilfield Services to resume its sequential operating income improvement in the coming quarters.
Positive Outlook
- Strong demand is expected to continue in all end-markets.
- Additional price actions are being managed to offset inflationary impacts.
- Fuel Specialties gross margins improved significantly over the fourth quarter and returned to the lower end of our target 32 to 35 percent range.
- Oilfield Services is expected to resume its sequential operating income improvement in the coming quarters.
- Debt-free balance sheet, broad mix of daily-use consumable products and relentless focus on customer service positions us well for continued growth in all our businesses.
Challenges Ahead
- Sustained inflationary and supply-chain pressures persist.
- Managing ongoing supply and logistical challenges will continue to be a key focus.
- Oilfield Services experienced shipment delays leading to a sequential quarter decline in operating income.
- Gross margins in Fuel Specialties are expected to remain on the lower end of the target range until cost inflation moderates.
- Corporate costs increased due mainly to higher personnel-related expenses driven by increased share-based compensation accruals.
Revenue & Expenses
Visualization of income flow from segment revenue to net income