Oxea reports increased revenues and earnings in Q4

26-Feb-2013 - Luxembourg

Oxea announced for the fourth quarter of 2012 a strong earnings increase compared with the fourth quarter of 2011. The increase in revenues and earnings can be recognized across the entire product portfolio and all regions. On a full year basis, revenues of €1,459 million were only slightly below the previous year (-1.4%) despite a still soft world economy and overall challenging macroeconomic conditions during 2012. EBITDA of €193 million was 5.4% below prior year mainly due to a very strong first quarter of 2011 with high export margins and one-off gains from steep raw material price increases over the average cost value carried in inventories.

In 2012, Oxea again generated strong free cash flows, mainly due to a further significant improvement of Trade Working Capital. Cash provided by operating activities of €144 million was used to execute the outstanding two redemption options on the Senior Secured Notes of €47 million and to fund the record investment level of €96 million. The investments were largely driven by the implementation of the strategic growth projects, leading to a further shift within the product portfolio towards high margin downstream derivatives. The second production facility for specialty esters in Oberhausen was mechanically completed at the end of October and started operations in November 2012. The third production unit for carboxylic acids in Oberhausen is currently being finalized and is expected to be completed in April 2013. Both investments will render a significant contribution to Oxea’s earnings in the near future.

Net sales

Net sales for the three months ended December, 2012 were €342.9 million, an increase of 4.4% compared with the corresponding period of the prior year. Overall, volumes were 2.6% higher compared with Q4 2011. Oxo Intermediates volumes were up by 1.7% and Oxo Derivatives volumes traded 5.9% higher. Of our revenues for the three months ended December 31, 2012, €158 million resulted from sales in Europe, €115 million in North America, and €69 million in the rest of the world compared to €141 million, €109 million, and €78 million, respectively, in the prior year period.

Gross profit

Gross profit for the three months ended December 31, 2012 amounted to €47.1 million compared with €33.8 million in Q4 2011, mainly due to higher sales and improved margins.

https://www.chemeurope.com/en/news/141836/oxea-reports-increased-revenues-and-earnings-in-q4.html