Loading...
•
Dec 31, 2021
Innospec Q4 2021 Earnings Report
Innospec reported record quarterly sales driven by strong performance in Performance Chemicals and Fuel Specialties.
Key Takeaways
Innospec Inc. reported a strong fourth quarter with total revenues of $413.2 million, a 33% increase compared to the same period last year. Net income was $23.9 million, or $0.96 per diluted share. Adjusted non-GAAP EPS was $1.30. The company generated $68.8 million in cash from operating activities and closed the year with a net cash position of $141.7 million.
Record quarterly and full year sales in Performance Chemicals and Fuel Specialties.
Continued sequential sales and operating income growth in Oilfield Services.
$68.8 million net cash generated in the quarter from operations; Net cash position improves to $141.7 million.
New share repurchase program up to $50.0 million.
Innospec
Innospec
Innospec Revenue by Segment
Revenue by Segment
Fuel Specialties Revenue
CapyFin.comOilfield Services Revenue
CapyFin.com Forward Guidance
Innospec believes that their excellent fourth quarter performance leaves them well positioned for continued improvement in 2022. They exit the year with record quarterly sales and an outlook that they feel is favorable to further sales growth and margin expansion in all their businesses.
Positive Outlook
- Well positioned for continued operating income growth and margin expansion in all businesses.
- Executing on plan for approximately $70 million in organic growth investments through 2023 to meet existing customer demand.
- Expect high single-digit annual volume growth over the medium term along with continued margin expansion from further product mix and operating leverage improvements.
- Expect gross margins to return to target range as jet fuel demand continues to recover and cost inflation moderates.
- Opportunities for significant additional operating leverage, which we anticipate will lead to operating income growth and margin expansion in the coming quarters.
Challenges Ahead
- Expect continuation of supply chain and inflationary challenges.
- Gross margins ran below target due to delay in jet fuel demand recovery.
- Lag in contract formula price increases which trail raw material cost inflation.
- COVID variants lingering impact on demand.
- Managing through tight supply-chain, labor and inflationary challenges
Revenue & Expenses
Visualization of income flow from segment revenue to net income