Innospec reports 28% increase in fourth quarter earnings

U.K.-based fuel additive maker Innospec said fourth quarter earnings before interest, tax, depreciation and amortisation (EBITDA) were up 28% from the same period a year ago at USD49.5 million.

Innospec’s total net sales hit a record of USD290.7 million in the fourth quarter, up 20%. The Fuel Specialties segment performed the best, with net sales increasing 32%. This growth came mostly from growth in sales in the Americas, as well as contributions from acquisitions.

Patrick Williams, president and CEO of Innospec, commented, “Innospec had a very successful fourth quarter, which was a record for the company, concluding a very good year overall. We delivered full year sales of over USD960 million meaning the annualized run-rate is now above USD1 billion — a significant milestone for us.”

Sales to Europe, the Middle East and Africa (EMEA) were sluggish in the fourth quarter due to tough conditions in the European refining market, as well as political unrest and sanctions affecting Russia and Ukraine. The Performance Chemicals segment had a softer fourth quarter as well, probably due to year-end destocking and holiday plant shutdowns, Williams said.

Innospec also ended the quarter with a net debt of USD95.3 million, USD99.0 million of which was due to the initial payment for the acquisition of Independence. Total debt was USD141.6 million.

For the whole year of 2014, Innospec’s EBITDA was USD140.8 million, up 21% from 2013. Total revenues reached USD960.9 million, up 17% from 2013.

Williams says he feels confident about the whole year heading into 2015. “We expect that our strong financial position and cash management efforts will enable us to weather the uncertainties of our markets and be positioned to take cautious advantage of opportunities to pick up distressed assets in the energy market as well as potential complementary acquisitions in the personal care sector, when we feel it is appropriate.”