Oxea reports strong EBITDA uplift in Q1 2013

15-May-2013 - Luxembourg

Oxea announced for the first quarter of 2013 a strong earnings increase compared with the first quarter of 2012. Adjusted EBITDA increased from €45 million in Q1 2012 to €53 million in Q1 2013 (+18%), the third best quarterly result of Oxea since its inception in 2007.

While revenues were stable compared with the corresponding period of the prior year, Oxea was able to increase margins as a result of continuous product portfolio optimization, successful implementation of cost reduction measures and a strong pricing discipline. During the first quarter of 2013, Oxea completed the ramp-up phase of the new second production facility for Specialty Esters in Oberhausen after its start-up of operations at the end of 2012. The third production unit for Carboxylic Acids in Oberhausen was mechanically completed at the end of April and is scheduled to be in operation prior to the 5-year turnaround at the Oberhausen site, which will start at the end of this month. Both investments will render a further significant contribution to Oxea’s earnings in the near future.

In the first quarter of 2013, Oxea again generated strong free cash flows. Cash provided by operating activities was €40 million (Q1 2012: € 42 million) despite the necessary build-up of Trade Working Capital prior to the start of the 5-year turnaround at the Oberhausen site. Oxea’s strong earnings and cash flow position, bolstered by the two new derivatives production facilities, has put Oxea in a position to refinance the existing Senior Secured Notes at more favourable terms. In order to take advantage of the current favourable market conditions, Oxea is currently planning to refinance the existing Senior Secured Notes in mid July 2013 after the expiration of the call protection period.

https://www.chemeurope.com/en/news/143080/oxea-reports-strong-ebitda-uplift-in-q1-2013.html