Huntsman(US:HUN)2021-07-30 20:58Financial Performance - Revenues from continuing operations for the six months ended June 30, 2021, were $3,861 million, a 36% increase from $2,840 million in 2020[163] - Revenues for Q2 2021 reached $2,024 million, a 62% increase compared to $1,247 million in Q2 2020[173] - Revenues for the six months ended June 30, 2021 increased by $1,021 million, or 36%, compared to the same period in 2020, attributed to higher sales volumes and average selling prices[198] - Total revenues for the six months ended June 30, 2021, were $3,861 million, a 36% increase from $2,840 million in the same period of 2020[199] Profitability - Gross profit for the three months ended June 30, 2021, was $431 million, a 166% increase compared to $162 million in the same period of 2020[172] - Gross profit for Q2 2021 was $431 million, reflecting a 166% increase from $162 million in Q2 2020[173] - Gross profit for the six months ended June 30, 2021 increased by $364 million, or 79%, compared to the 2020 period[198] - Adjusted EBITDA for Q2 2021 was $336 million, a 500% increase from $56 million in Q2 2020[174] - Total adjusted EBITDA for Huntsman Corporation was $623 million, a 184% increase from $219 million in the same period of 2020[199] Income and Expenses - Operating income for the six months ended June 30, 2021, was $335 million, compared to a loss of $15 million in the same period of 2020[172] - Operating income for Q2 2021 was $211 million, compared to a loss of $68 million in Q2 2020, indicating a significant turnaround[173] - Net income for Q2 2021 was $173 million, compared to a loss of $59 million in Q2 2020, marking a substantial improvement[173] - Net income for the six months ended June 30, 2021, was $272 million, a decrease from $649 million for the same period in 2020[175] - Adjusted net income for the six months ended June 30, 2021, was $338 million, compared to $35 million for the same period in 2020[175] Cash Flow and Investments - Net cash used in investing activities was $(369) million for the six months ended June 30, 2021, compared to $1,152 million in the same period of 2020[172] - Free cash flow from continuing operations for the six months ended June 30, 2021, was $(197) million, compared to $(71) million for the same period in 2020[175] - Net cash used in operating activities was $(23) million for the six months ended June 30, 2021, compared to $45 million in the same period of 2020[209] - Cash and cash equivalents decreased by 69% to $510 million as of June 30, 2021, from $1,593 million at the end of 2020[213] Capital Expenditures - Capital expenditures increased by 50% to $(174) million for the six months ended June 30, 2021[172] - Capital expenditures from continuing operations were $174 million, up 50% from $116 million in the same period last year[173] - Capital expenditures for 2021 are expected to be approximately $355 million to $360 million, including about $100 million for a new MDI splitter in Geismar, Louisiana[229] Debt and Financing - The company completed a $400 million offering of its 2031 Senior Notes and used the proceeds to redeem its 2022 Senior Notes[164] - The company recognized a loss on early extinguishment of debt amounting to $21 million for the six months ended June 30, 2021[175] - Loss on early extinguishment of debt for the three months ended June 30, 2021 was $27 million, compared to nil in the 2020 period, due to the full redemption of 2022 Senior Notes[46] Market Trends and Expectations - The company expects improving trends across all markets, including aerospace, compared to the prior year[171] - Management expects to achieve annualized cost savings and synergy benefits of more than $120 million by the end of 2023, with associated net cash restructuring costs of approximately $100 million[229] - The company is exposed to market risks including changes in interest rates, foreign exchange rates, and commodity prices, and engages in transactions to manage these exposures[230] Taxation - The adjusted effective tax rate for 2021 is expected to be approximately 22% to 24%[168] - The income tax expense for Q2 2021 was $41 million, compared to a benefit of $13 million in Q2 2020, indicating a shift in tax position[173] - Income tax expense for the three months ended June 30, 2021 increased to $42 million from an income tax benefit of $13 million in the 2020 period, primarily due to increased pretax income[46]