Innospec Q4 2023 Earnings Report
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
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