Huntsman Q4 Results
Huntsman Announces Fourth Quarter 2022 Earnings; Approximately $1.2 Billion in Buybacks and Dividends in 2022; Huntsman Board Approves 12% Dividend Increase
Download as PDFFebruary 21, 2023 6:00am EST
Fourth Quarter and Recent Highlights
- Fourth quarter 2022 net loss of $91 million compared to net income of $597 million in the prior year period; fourth quarter 2022 diluted loss per share of $0.48 compared to diluted earnings per share of $2.73 in the prior year period.
- Fourth quarter 2022 adjusted net income of $8 million compared to adjusted net income of $195 million in the prior year period; fourth quarter 2022 adjusted diluted earnings per share of $0.04 compared to adjusted diluted earnings per share of $0.89 in the prior year period.
- Fourth quarter 2022 adjusted EBITDA of $87 million compared to adjusted EBITDA of $327 million in the prior year period.
- Fourth quarter 2022 net cash provided by operating activities from continuing operations was $297 million. Free cash flow from continuing operations was $211 million for the fourth quarter 2022 compared to free cash flow from continuing operations of $648 million in the prior year period.
- Repurchased approximately 9.1 million shares for approximately $250 million in the fourth quarter 2022.
- On February 17, 2023, the Board approved a 12% increase to the quarterly dividend.
- Huntsman has secured all regulatory approvals required to complete the sale of its Textile Effects division to Archroma, a portfolio company of SK Capital Partners. The transaction is expected to close on February 28, 2023. Huntsman expects the net after tax cash proceeds to be approximately $540 million before customary post-closing adjustments.
|Three months ended||Twelve months ended|
|December 31,||December 31,|
|In millions, except per share amounts||2022||2021||2022||2021|
|Revenues||$ 1,650||$ 2,112||$ 8,023||$ 7,670|
|Net (loss) income attributable to Huntsman Corporation||$ (91)||$ 597||$ 460||$ 1,045|
|Adjusted net income (1)||$ 8||$ 195||$ 636||$ 726|
|Diluted (loss) income per share||$ (0.48)||$ 2.73||$ 2.27||$ 4.72|
|Adjusted diluted income per share(1)||$ 0.04||$ 0.89||$ 3.13||$ 3.28|
|Adjusted EBITDA(1)||$ 87||$ 327||$ 1,155||$ 1,246|
|Net cash provided by operating activities from continuing operations||$ 297||$ 733||$ 892||$ 915|
|Free cash flow from continuing operations(2)||$ 211||$ 648||$ 620||$ 589|
|See end of press release for footnote explanations and reconciliations of non-GAAP measures.|
THE WOODLANDS, Texas, Feb. 21, 2023 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2022 results with revenues of $1,650 million, net loss of $91 million, adjusted net income of $8 million and adjusted EBITDA of $87 million.
Peter R. Huntsman, Chairman, President, and CEO, commented:
“In 2022 we delivered almost $1.2 billion of adjusted EBITDA and Free Cash Flow of over $600 million. We increased our dividend and in total returned approximately $1.2 billion to shareholders. We made great progress in our cost reduction programs to offset historically high inflation and energy costs and strengthen our core businesses. We also announced the agreement to sell our Textile Effects business, which we expect to be completed at the end of this month.
“Turning to 2023, we are optimistic that destocking will end in the first part of 2023 and fundamentals in our businesses will begin to modestly improve as we move through the year, but visibility into the second half is still low. We are seeing some green shoots in areas like China, automotive, and aerospace, but construction demand globally is still under pressure. Regardless of how much demand improves through the year, we will remain focused on delivering our previously announced cost reduction programs, returning cash to shareholders, and looking for strategic investments to improve our core business while maintaining a strong balance sheet. We look forward to updating you of our progress as we move through 2023.”
Segment Analysis for 4Q22 Compared to 4Q21
The decrease in revenues in our Polyurethanes segment for the three months ended December 31, 2022 compared to the same period of 2021 was primarily due to lower sales volumes and the negative impact of weaker major international currencies against the U.S. dollar, partially offset by higher MDI local prices. Sales volumes decreased primarily due to lower demand, particularly in our European and American regions. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, lower MDI margins, 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, partially offset by lower fixed costs.
The decrease in revenues in our Advanced Materials segment for the three months ended December 31, 2022 compared to the same period of 2021 was primarily due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased primarily due to deselection of lower margin business and lower customer demand in industrial markets, partially offset by higher demand in our Aerospace market. Average selling prices increased largely in response to higher raw material, energy, and logistics costs as well as improved sales mix. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by higher sales prices and improved sales mix.
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