•
Dec 31, 2022

Huntsman Q4 2022 Earnings Report

Huntsman reported a net loss with decreased revenues and adjusted EBITDA due to lower sales volumes and unfavorable currency impacts.

Key Takeaways

Huntsman Corporation reported fourth quarter 2022 results with revenues of $1,650 million, a net loss of $91 million, adjusted net income of $8 million and adjusted EBITDA of $87 million. The company delivered almost $1.2 billion of adjusted EBITDA and Free Cash Flow of over $600 million in 2022, returning approximately $1.2 billion to shareholders through increased dividends and buybacks.

Revenues for Q4 2022 were $1,650 million.

Net loss for Q4 2022 was $91 million.

Adjusted net income for Q4 2022 was $8 million.

Adjusted EBITDA for Q4 2022 was $87 million.

Total Revenue
$1.65B
Previous year: $2.31B
-28.5%
EPS
$0.04
Previous year: $0.95
-95.8%
Gross Profit
$190M
Previous year: $469M
-59.5%
Cash and Equivalents
$1.8B
Previous year: $2.5B
-28.0%
Free Cash Flow
$211M
Previous year: $698M
-69.8%
Total Assets
$8.22B
Previous year: $9.39B
-12.5%

Huntsman

Huntsman

Forward Guidance

Turning to 2023, we are optimistic that destocking will end in the first part of 2023 and fundamentals in our businesses will begin to modestly improve as we move through the year, but visibility into the second half is still low. We are seeing some green shoots in areas like China, automotive, and aerospace, but construction demand globally is still under pressure.

Positive Outlook

  • Optimistic that destocking will end in the first part of 2023.
  • Fundamentals in businesses will begin to modestly improve as we move through the year.
  • Seeing some green shoots in areas like China, automotive, and aerospace.
  • Focused on delivering previously announced cost reduction programs.
  • Looking for strategic investments to improve our core business while maintaining a strong balance sheet.

Challenges Ahead

  • Visibility into the second half of 2023 is still low.
  • Construction demand globally is still under pressure.
  • Lower sales volumes in Polyurethanes segment due to lower demand, particularly in European and American regions.
  • Decrease in segment adjusted EBITDA in Polyurethanes primarily due to lower sales volumes, lower MDI margins, and negative impact of weaker major international currencies.
  • Lower demand for certain products in Performance Products segment.