Oxea reports stable Q3 results

20-Nov-2012 - Luxembourg

Oxea, a global supplier of Oxo intermediates and Oxo Derivatives, announced for the third quarter of 2012 continued stable results with an adjusted EBITDA of €46 million after €46 million in Q2 2012 and €45 million in Q1 2012.

Considering the general summer seasonality in the Northern hemisphere and the continued soft world economy, this stable earnings development on a quarter to quarter basis repeatedly underpins the robustness of Oxea’s business model. Compared to the corresponding period of the prior year, adjusted EBITDA was moderately impacted, with a drop of 6% as a result of the overall weak macroeconomic demand and its impact on the global manufacturing industry.

In the nine months of 2012, Oxea generated strong cash flows, mainly due to a significant improvement of Trade Working Capital. Cash provided by operating activities was €82 million compared with €78 million in the corresponding period of the prior year. The strong financial position allowed Oxea to complete the third optional redemption of 5% of the outstanding Senior Secured Notes in August 2012. Within two years after the Bond issue, Oxea has executed all three redemption options, each of 5% of outstanding Senior Secured Notes at a redemption price of 103% as permitted under the terms and conditions of the Indenture.

During the first nine months Oxea invested €60 million into its business largely driven by the implementation of the strategic growth projects, leading to a further shift to high margin downstream derivatives within the product portfolio. The second production facility for the manufacturing of specialty esters in Oberhausen has been mechanically completed at the end of October. The third production plant for carboxylic acids in Oberhausen is currently being finalized and expected to be completed during Q1 2013.

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