Huntsman has reported its results for 4Q15 and FY15.
In 4Q15, adjusted EBITDA was US$240 million, in comparison to US$292 million during the same period in the previous year and US$311 million in the prior quarter. Adjusted diluted income per share was US$0.51 compared to US$0.33 in 4Q15 and US$0.47 in the previous quarter.
Net income attributable to Huntsman Corporation was US$4 million compared to net loss of US$38 million in the same quarter of 2014 and net income of US$55 million in the prior quarter.
The stronger US dollar reduced adjusted EBITDA by an estimated US$24 million compared to the prior year period; a negative impact of approximately US$0.07 loss per diluted share. The combination of effective tax planning, certain unusual tax benefits and regional mix of income created an approximate US$0.25 per diluted share net tax benefit during 4Q15.
For the full year 2015, adjusted EBITDA was US$1221 million compared to US$1340 million in the previous year. Adjusted diluted income per share was US$2.00 compared to US$1.94 in the prior year. Net income attributable to Huntsman Corporation was US$93 million compared to US$323 million in the prior year.
The stronger US dollar reduced adjusted EBITDA by an estimated US$136 million compared to 2014; a negative impact of approximately US$0.39 loss per diluted share.
Planned PO/MTBE maintenance at the Port Neches, TX facility reduced adjusted EBITDA in 2015 by approximately US$95 million. This maintenance occurs approximately once every five years.
Peter R. Huntsman, President and CEO, commented:
“During the fourth quarter this year, EBITDA from our cyclical businesses – which include our MTBE, ethylene and TiO2 products – decreased approximately US$78 million compared to the prior year. This overshadowed the real strength of our portfolio which is in our downstream differentiated businesses. Excluding approximately US$24 million of foreign currency headwind, the EBITDA from our differentiated businesses improved approximately US$50 million compared to the prior year or 27%.
“In 2016, primarily as a result of lower priced oil and a lower global economic growth environment, we expect continued EBITDA pressure on our cyclical businesses. Growth from our differentiated businesses will offset cyclical pressure and inflationary costs such that we expect our 2016 EBITDA to be a similar amount to 2015. Importantly however, we expect our free cash flow generation to improve by US$350 million in 2016 through lower capital expenditures, restructuring and maintenance. In 2016 we will continue to pursue actively a separation of our TiO2 business through a spinoff to shareholders or other strategic transaction.”
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/the-americas/16022016/huntsman-has-reported-its-2015-results-509/