THE WOODLANDS, Texas, Feb. 23, 2018 /PRNewswire/ —
Fourth Quarter 2017 Highlights
- Net income was $287 million compared to $137 million in the prior year period and $179 million in the prior quarter.
- Adjusted EBITDA was $360 million compared to $210 million in the prior year period and $340 million in the prior quarter.
- Diluted income per share was $1.00 compared to $0.53 in the prior year period and $0.60 in the prior quarter.
- Adjusted diluted income per share was $0.76 compared to $0.21 in the prior year period and $0.67 in the prior quarter.
- Net cash provided by operating activities was $304 million. Free cash flow generation was $190 million.
- Successful secondary offering of Venator (NYSE – VNTR) shares was completed in December. The net proceeds were used to pay down the remaining $511 million on Huntsman’s Term Loan B due 2023, reducing net leverage to 1.4x. Huntsman’s remaining ownership interest in Venator is currently approximately 53%.
Full Year 2017 Highlights
- Net income was $741 million compared to $357 million in the prior year.
- Adjusted EBITDA was $1,259 million compared to $997 million in the prior year.
- Net cash provided by operating activities was $842 million compared to $974 million in the prior year. Free cash flow generation was $594 million compared to free cash flow of $656 million in the prior year.
- Annual free cash flow target for the upcoming years is increased by $50 million to between $450 million and $650 million.
- In 2017, debt was reduced by approximately $2.1 billion and Huntsman exited the year with the strongest balance sheet in its history with a net debt to EBITDA ratio of 1.4x. Since the beginning of 2016 to the end of 2017, net debt was reduced by 60%, from $4.5 billion to $1.8 billion.
- The board approved a 30% increase of the quarterly dividend from $0.125 to $0.1625 per share, effective immediately, and share repurchases up to $450 million.
Peter R. Huntsman, Chairman, President and CEO, commented:
“2017 was a transformational year marked with significant milestones for our Company. We successfully separated our Pigments and Additives business, now called Venator, by IPO and completed a first follow-on offering in December. Combined with our cash flow and the $1.7 billion in net proceeds from Venator, we were able to pay down approximately $2.1 billion in debt during the year. This debt reduction enabled Huntsman to enter 2018 with the strongest balance sheet in its history, with a net debt to EBITDA ratio of 1.4x, which is well within investment grade metrics.
“With a stronger balance sheet, our focus will be to continue to invest in our operational reliability and organic growth. We expect to generate between $450 million and $650 million of free cash flow in the upcoming years. We will also pursue acquisitions that will create value, greater growth in our downstream business and stronger earnings. This morning we are enhancing our shareholder returns by increasing the dividend 30% and announcing a share repurchase program of up to $450 million.”
Segment Analysis for 4Q17 Compared to 4Q16
The increase in revenues in our Polyurethanes segment for the three months ended December 31, 2017 compared to the same period in 2016 was primarily due to higher MDI average selling prices and MDI sales volumes. MDI average selling prices increased due to strong market conditions in all regions. The increase in MDI sales volumes was more than offset by a decrease in MTBE sales volumes resulting from the timing of MTBE shipments. The increase in adjusted EBITDA was primarily due higher MDI margins and sales volumes.