NewMarket (US:NEU)2024-07-29 21:24Financial Performance - Net income for Q2 2024 was $111.6 million, or $11.63 per share, up from $99.6 million, or $10.36 per share in Q2 2023, representing a 20% increase in net income [4]. - Earnings per share for the first half of 2024 were $22.87, compared to $20.45 in the same period of 2023, indicating a 11% increase [4]. - Net income for the six months ended June 30, 2024, was $219,352 thousand, a 11.6% increase compared to $197,207 thousand for the same period in 2023 [25]. - EBITDA for the second quarter ended June 30, 2024, reached $187,842 thousand, up 21.3% from $154,862 thousand in the second quarter of 2023 [26]. - The company reported a gross profit of $434.8 million for the first half of 2024, up from $393.7 million in the same period of 2023 [23]. Sales and Operating Profit - Petroleum additives sales for Q2 2024 were $669.8 million, a decrease from $684.0 million in Q2 2023, while operating profit increased to $147.8 million from $132.1 million, reflecting improved margins despite lower selling prices [5]. - For the first half of 2024, petroleum additives sales totaled $1.3 billion, down from $1.4 billion in the same period of 2023, but operating profit rose to $298.7 million from $264.2 million, driven by a 2.7% increase in shipments [6]. - The specialty materials segment reported sales of $38.0 million in Q2 2024, with an operating profit of $5.0 million, compared to a loss of $5.0 million in Q1 2024 [8]. Cash Flow and Dividends - Cash flows from operations in the first half of 2024 were solid, with capital expenditures of $28.5 million and dividends paid amounting to $48.0 million [10]. - Cash dividends declared per share increased to $2.50 in Q2 2024 from $2.25 in Q2 2023 [23]. - The company paid dividends totaling $47,972 thousand in the first half of 2024, compared to $41,879 thousand in the same period of 2023, marking a 14.9% increase [25]. Debt and Leverage - Since the acquisition of American Pacific Corporation (AMPAC), the company has reduced debt by $171 million, with a Net Debt to EBITDA ratio of 1.6 as of June 30, 2024 [11]. - Long-term debt rose to $1,172,732 thousand as of June 30, 2024, compared to $643,622 thousand at December 31, 2023, indicating a significant increase of 82.3% [27]. - Net Debt to EBITDA ratio increased to 1.6 as of June 30, 2024, compared to 0.9 at December 31, 2023, reflecting a higher leverage position [27]. Assets and Retained Earnings - Total assets increased to $3,150,071 thousand as of June 30, 2024, up from $2,308,871 thousand at December 31, 2023, representing a growth of 36.5% [24]. - Retained earnings increased to $1,267,393 thousand as of June 30, 2024, up from $1,096,002 thousand at December 31, 2023, reflecting a growth of 15.6% [24]. Cash and Capital Expenditures - Cash and cash equivalents decreased to $87,632 thousand as of June 30, 2024, down from $111,936 thousand at December 31, 2023, a decline of 21.6% [24]. - Capital expenditures for the six months ended June 30, 2024, were $28,533 thousand, slightly higher than $26,006 thousand in the same period of 2023 [25]. - The company reported a decrease in cash and cash equivalents of $24,304 thousand for the six months ended June 30, 2024, compared to an increase of $62,211 thousand in the same period of 2023 [25]. Future Outlook - The company anticipates continued strength in the petroleum additives segment and is focused on the integration of AMPAC into its operations [12].