Urethane Blog
Huntsman Q2 Results
August 2, 2022
Huntsman Announces Second Quarter 2022 Earnings; $501 million of Buybacks in First Half of 2022
Download as PDF August 02, 2022 6:00am EDT
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Audio Earnings WebcastEarnings Slides PDF
Second Quarter Highlights
- Second quarter 2022 net income of $242 million compared to net income of $172 million in the prior year period; second quarter 2022 diluted earnings per share of $1.10 compared to diluted earnings per share of $0.70 in the prior year period.
- Second quarter 2022 adjusted net income of $265 million compared to adjusted net income of $191 million in the prior year period; second quarter 2022 adjusted diluted earnings per share of $1.28 compared to adjusted diluted earnings per share of $0.86 in the prior year period.
- Second quarter 2022 adjusted EBITDA of $432 million compared to adjusted EBITDA of $334 million in the prior year period.
- Second quarter 2022 net cash provided by operating activities from continuing operations was $231 million. Free cash flow from continuing operations was $162 million for the second quarter 2022 compared to an outflow of $83 million in the prior year period.
- Repurchased approximately 8.4 million shares for approximately $291 million in the second quarter 2022.
THE WOODLANDS, Texas, Aug. 2, 2022 /PRNewswire/ —
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | |||||||
| In millions, except per share amounts | 2022 | 2021 | 2022 | 2021 | ||||
| Revenues | $ 2,362 | $ 2,024 | $ 4,751 | $ 3,861 | ||||
| Net income | $ 242 | $ 172 | $ 482 | $ 272 | ||||
| Adjusted net income (1) | $ 265 | $ 191 | $ 521 | $ 338 | ||||
| Diluted income per share | $ 1.10 | $ 0.70 | $ 2.14 | $ 1.07 | ||||
| Adjusted diluted income per share(1) | $ 1.28 | $ 0.86 | $ 2.47 | $ 1.52 | ||||
| Adjusted EBITDA(1) | $ 432 | $ 334 | $ 847 | $ 623 | ||||
| Net cash provided by (used in) operating activities from continuing operations | $ 231 | $ (7) | $ 316 | $ (23) | ||||
| Free cash flow from continuing operations(2) | $ 162 | $ (83) | $ 178 | $ (197) | ||||
| See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
Huntsman Corporation (NYSE: HUN) today reported second quarter 2022 results with revenues of $2,362 million, net income of $242 million, adjusted net income of $265 million and adjusted EBITDA of $432 million.
Peter R. Huntsman, Chairman, President, and CEO, commented:
“Second quarter EBITDA margins exceeded 18% on the back of our value over volume strategy, improved pricing, and solid cost control. We remain well ahead or on track to meet the targets that we presented at our Investor Day in November 2021, despite an increasingly challenging economic environment due to extremely high European natural gas prices, headwinds in China associated with government-mandated shutdowns and monetary tightening in the United States. In addition to the positive results, we repurchased approximately $500 million in shares in the first six months of the year and our balance sheet remains extremely strong with a net leverage ratio of 0.6x.
“Regardless of any macro headwinds that may impact the chemical industry in the coming quarters, our priorities around cost control, a focus on downstream businesses and returning capital to shareholders will remain unchanged. Our balance sheet and cash generation places us in an enviable position to take advantage of opportunities as they present themselves to invest in our core businesses.” Segment Analysis for 2Q22 Compared to 2Q21
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended June 30, 2022 compared to the same period of 2021 was primarily due to higher MDI average selling prices, partially offset by lower sales volumes. MDI average selling prices increased in all our regions. Sales volumes decreased primarily due to the extended government-mandated COVID lockdown in Shanghai, China and lower demand, partially offset by favorable comparisons in Europe due to the scheduled turnaround at our Rotterdam, Netherlands facility in the second quarter of 2021. The increase in segment adjusted EBITDA was primarily due to higher MDI margins and a gain from an insurance settlement, partially offset by lower sales volumes, the negative impact of weaker major international currencies against the U.S. dollar and lower equity earnings from our minority-owned joint venture in China.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended June 30, 2022 compared to the same period of 2021 was primarily due to higher average selling prices, partially offset by lower sales volumes. Average selling prices increased largely in response to higher raw material, energy and logistics costs as well as improved sales mix. Sales volumes decreased primarily due to deselection of lower margin base resins business. The increase in segment adjusted EBITDA was primarily due to higher sales prices and improved sales mix.
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