Innospec Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Innospec Inc. reported a net loss of $70.4 million for Q4 2024, primarily due to a non-cash settlement charge of $155.6 million related to the UK pension scheme buyout, compared to a net income of $37.8 million in Q4 2023 [2][15][16] - Total revenues for Q4 2024 were $466.8 million, a decrease of 6% from $494.7 million in the same period last year [2][6] - Adjusted non-GAAP earnings per share for Q4 2024 were $1.41, down from $1.84 in Q4 2023 [3][6] Financial Performance - Performance Chemicals segment revenues increased by 23% to $169.2 million in Q4 2024, with operating income rising 14% to $20.6 million [12][26] - Fuel Specialties revenues grew by 5% to $191.8 million in Q4 2024, with operating income up 7% to $34.9 million [13][26] - Oilfield Services revenues fell by 40% to $105.8 million in Q4 2024, with operating income decreasing 59% to $7.5 million [14][26] Yearly Overview - For the full year 2024, total revenues were $1.85 billion, down 5% from $1.95 billion in 2023 [6][26] - Full year net income was $35.6 million, or $1.42 per diluted share, significantly lower than $139.1 million, or $5.56 per diluted share, in 2023 [6][26] - Adjusted EBITDA for 2024 was $225.2 million, an increase of 4% from $216.0 million in 2023 [6][27] Cash Flow and Balance Sheet - In Q4 2024, Innospec generated $25.7 million in cash from operations, with net cash at $289.2 million as of December 31, 2024, compared to $203.7 million a year earlier [3][16] - The company reported a decrease in corporate costs to $20.6 million, down from $24.4 million in the previous year [15][26] Segment Analysis - Performance Chemicals showed strong growth with a full year revenue increase of 16% to $653.7 million and operating income up 52% to $82.9 million [12][26] - Fuel Specialties achieved a full year revenue increase of 1% to $701.1 million, with operating income rising 18% to $129.6 million [13][26] - Oilfield Services experienced a full year revenue decline of 29% to $490.6 million, with operating income down 51% to $38.8 million [14][26]