THE WOODLANDS, Texas, Oct. 27, 2017 /PRNewswire/ —
Third Quarter 2017 Highlights
- Net income was $179 million compared to $64 million in the prior year period and $183 million in the prior quarter.
- Adjusted EBITDA was $340 million (16% EBITDA margin), impacted by $50 million from Hurricane Harvey, compared to $234 million in the prior year period and $299 million in the prior quarter.
- Diluted income per share was $0.60 compared to $0.23 in the prior year period and $0.69 in the prior quarter.
- Adjusted diluted income per share was $0.67 compared to $0.31 in the prior year period and $0.59 in the prior quarter.
- Net cash provided by operating activities was $261 million. Free cash flow generation was $227 million.
- The balance sheet was transformed by applying the $1.2 billion in Venator IPO net proceeds to reduce Huntsman debt. On October 25, 2017, we made an additional $100 million early repayment of debt. From the beginning of 2016 to this most recent quarter our net-debt was reduced by 47%, from $4.5 billion to $2.4 billion.
- Merger of equals with Clariant terminated by mutual agreement.
Segment Analysis for 3Q17 Compared to 3Q16
The increase in revenues in our Polyurethanes segment for the three months ended September 30, 2017 compared to the same period of 2016 was due to higher average selling prices and higher sales volumes. MDI average selling prices increased in response to continued strong market conditions and higher raw material costs. MTBE average selling prices increased primarily as a result of higher pricing for high octane gasoline. MDI sales volumes increased due to increased demand across most major markets. MTBE sales volumes increased due to the timing of shipments in the 2016 period, partially offset by the impact of hurricane related production outages during the third quarter of 2017. The increase in segment adjusted EBITDA was primarily due to higher MDI margins, partially offset by lower MTBE earnings and the $15 million estimated impact of hurricane related production outages during the third quarter of 2017.