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Dec 31, 2023
Innospec Q4 2023 Earnings Report
Innospec's Q4 2023 results were announced, featuring strong performance in Performance Chemicals and Fuel Specialties, alongside the acquisition of QGP.
Key Takeaways
Innospec reported Q4 2023 revenues of $494.7 million, a 3% decrease year-over-year. Net income was $37.8 million, or $1.51 per diluted share, compared to $25.5 million, or $1.02 per diluted share in the previous year. Adjusted non-GAAP EPS was $1.84, compared to $1.20 in the prior year. The company generated $72.4 million in cash from operating activities.
Performance Chemicals and Fuel Specialties delivered double-digit operating income growth.
Oilfield Services maintained a strong performance.
QGP acquisition was completed, strengthening Innospec's position in Brazil.
Cash from operations was $72.4 million, with net cash of $203.7 million.
Innospec
Innospec
Innospec Revenue by Segment
Revenue by Segment
Fuel Specialties Revenue
CapyFin.comOilfield Services Revenue
CapyFin.com Forward Guidance
Innospec anticipates continued economic headwinds but enters 2024 with optimism. The company expects the QGP acquisition to be accretive and add approximately 8 cents of EPS in 2024.
Positive Outlook
- Growing pipeline of technology-based organic opportunities.
- Integration of the QGP acquisition.
- Excellent cash generation.
- Strong balance sheet for further M&A.
- Flexibility for dividend growth and organic investment.
Challenges Ahead
- Continued economic headwinds expected.
- Negative price/mix impact in Performance Chemicals.
- Lower sales in Performance Chemicals.
- Decrease in revenues for Oilfield Services.
- Increase in corporate costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income