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Jun 30, 2021
Innospec Q2 2021 Earnings Report
Innospec's financial performance improved in Q2 2021, marked by revenue growth, increased profitability, and strategic advancements across its business segments.
Key Takeaways
Innospec Inc. reported a strong second quarter in 2021, with a 45% increase in total revenues to $354.5 million compared to the previous year. Net income reached $22.4 million, a significant turnaround from a $39.7 million loss in the same period last year. Adjusted non-GAAP EPS was $1.30, compared to an adjusted loss per share of $0.18 a year ago.
Total revenues increased by 45% year-over-year, reaching $354.5 million.
Net income was $22.4 million, a significant improvement from a $39.7 million loss in the same quarter last year.
Adjusted non-GAAP EPS was $1.30, compared to an adjusted loss per share of $0.18 a year ago.
Performance Chemicals achieved record quarterly sales with operating income up 47%.
Innospec
Innospec
Innospec Revenue by Segment
Revenue by Segment
Fuel Specialties Revenue
CapyFin.comOilfield Services Revenue
CapyFin.com Forward Guidance
Innospec anticipates continued momentum across all its businesses in the second half of 2021, barring any reinstatement of material economic restrictions due to the recent surge in global cases. The company expects that jet aviation fuel demand will be supportive of sales and margins during the coming year as economies re-open and travel increases.
Positive Outlook
- Performance Chemicals' operating income is expected to continue its double-digit growth.
- Fuel Specialties anticipates that jet aviation fuel demand will be supportive of sales and margins.
- Oilfield Services is focused on actions to drive higher incremental margins.
- Strong balance sheet to support organic growth investments.
- Strategic acquisition opportunities and continuing the record of returning value to shareholders.
Challenges Ahead
- Potential reinstatement of material economic restrictions due to the recent surge in global cases.
- Demand gaps remain versus 2019 levels.
- Cost inflation and supply chain constraints remain at above average levels.
- Unspecified risks, uncertainties and assumptions, including the effects of the COVID-19 pandemic.
- The effective tax rate for the quarter was 44.1 percent compared to 26.2 percent last year primarily due to the enacted change in the U.K. tax rate impacting deferred tax.
Revenue & Expenses
Visualization of income flow from segment revenue to net income