The Urethane Blog

Huntsman Q3 Results

Huntsman Announces Third Quarter 2018 Earnings

Reports Strong EBITDA Growth and Solid Free Cash Flow Generation

Third Quarter 2018 Highlights

  • Adjusted EBITDA was $374 million compared to $340 million in the prior year period and $415 million in the prior quarter.
  • Net loss of $8 million compared to a net income of $179 million in the prior year period and $623 million in the prior quarter. Adjusted net income of $202 million compared to adjusted net income of $164 million in the prior year period and $246 million in the prior quarter.
  • Diluted loss per share was $0.05 compared to diluted income per share of $0.60 in the prior year period and $1.71 in the prior quarter.
  • Adjusted diluted income per share was $0.84 compared to $0.67 in the prior year period and $1.01 in the prior quarter.
  • Net cash provided by operating activities was $295 million. Free cash flow generation was $226 million.
  • Balance sheet continues to strengthen with a net leverage of 1.3x.
  • Completed cumulative share repurchases of approximately $175 million through the end of third quarter 2018.

THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) today reported third quarter 2018 results with revenues of $2,444 million, net loss of $8 million, adjusted net income of $202 million and adjusted EBITDA of $374 million.

Peter R. Huntsman, Chairman, President and CEO, commented:

“This was a solid quarter overall for our Company, which demonstrated the consistency of our downstream and differentiated businesses. Expected adjustments to short term fundamentals in component MDI provided us an opportunity to show the strength of our unique downstream urethanes portfolio and strategy. In spite of the uncertainty around global trade and certain pockets of softer demand mostly seen in China, long term fundamentals remain intact. We are confident and on track to deliver on our 2020 targets that we laid out at our Investor Day on May 23, 2018. Our free cash flow remains strong with a good performance in the third quarter and our balance sheet continues to strengthen with net leverage improving to 1.3 times, well within investment grade metrics. We are committed to our balanced and opportunistic approach to capital allocation by growing our downstream differentiated portfolio of businesses and repurchasing shares to create long term value for our shareholders.”

Segment Analysis for 3Q18 Compared to 3Q17

Polyurethanes

The increase in revenues in our Polyurethanes segment for the three months ended September 30, 2018 compared to the same period of 2017 was due to higher average selling prices and higher sales volumes. Differentiated MDI average selling prices increased due to strong end-market demand, partially offset by a decline in component MDI prices compared to the prior year period. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI sales volumes increased due to higher demand across most major markets. MTBE sales volumes increased due to the impact of hurricane related production outages during the third quarter of 2017. The modest increase in segment adjusted EBITDA was primarily due to higher MDI volumes and higher MTBE earnings due to hurricane related production outages in the third quarter of 2017, partially offset by lower component MDI margins.

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