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Dec 31, 2023

NewMarket Q4 2023 Earnings Report

NewMarket's fourth quarter 2023 results were released, showing a decrease in net income compared to the same period in 2022.

Key Takeaways

NewMarket Corporation reported a net income of $80.4 million for Q4 2023, a decrease compared to $90.5 million in Q4 2022. Petroleum additives sales also decreased to $642.0 million from $680.3 million in the same period last year. The company highlighted its focus on managing operating costs and inventory levels, while continuing to invest in technology.

Q4 2023 net income was $80.4 million, or $8.38 per share, compared to $90.5 million, or $9.26 per share, for Q4 2022.

Petroleum additives sales for Q4 2023 were $642.0 million, down from $680.3 million in Q4 2022.

Petroleum additives operating profit for Q4 2023 was $110.4 million, compared to $117.1 million for the same period in 2022.

The company acquired American Pacific Corporation (AMPAC) in January 2024 for approximately $700 million.

Total Revenue
$643M
Previous year: $683M
-5.7%
EPS
$8.38
Previous year: $9.26
-9.5%
Gross Profit
$177M
Previous year: $180M
-1.4%
Cash and Equivalents
$112M
Previous year: $68.7M
+62.9%
Free Cash Flow
$157M
Previous year: $76.9M
+104.8%
Total Assets
$2.31B
Previous year: $2.41B
-4.1%

NewMarket

NewMarket

NewMarket Revenue by Segment

Forward Guidance

NewMarket anticipates continued strength in its petroleum additives segment and looks forward to the integration of AMPAC. The company remains focused on long-term objectives and believes its business fundamentals will continue to benefit all stakeholders.

Positive Outlook

  • Continued strength in petroleum additives segment anticipated.
  • Looking forward to the integration of AMPAC.
  • Making decisions to promote long-term value for shareholders and customers.
  • Remaining focused on long-term objectives.
  • Believes business fundamentals will continue to be beneficial for all stakeholders.

Challenges Ahead

  • Availability of raw materials and distribution systems.
  • Disruptions at production facilities, including single-sourced facilities.
  • Hazards common to chemical businesses.
  • Ability to respond effectively to technological changes in our industry.
  • Failure to protect our intellectual property rights.