Oxea Reports Robust Earnings and Strong Cash Flows

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• Publié par: oxea-gmbh
• Nombre de lectures: 17
• Langue: English

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Oxea Reports Robust Earnings and Strong
Cash Flows
PR Newswire
LUXEMBOURG, August 13, 2012
LUXEMBOURG, August 13, 2012 /PRNewswire/
-Highlights Q2 2012:
* Net sales were EUR380 million versus EUR391 million in the prior year period
* Operating profit was EUR47 million versus EUR47 million in the prior year period
* Net income was EUR23 million versus EUR16 million in the prior year period
* EBITDA was EUR53 million versus EUR52 million in the prior year period
* Adjusted EBITDA was EUR46 million versus EUR56 million in the prior year period
Oxea, a leading global supplier of Oxo Intermediates and Oxo Derivatives, today
announced robust earnings for the second quarter of 2012, with net sales of EUR380
million getting close to prior year's level. Margins in Q2 2012 were impacted by the
Turnarounds at the plants in Oberhausen and Bay City and by the inventory carry over
impact from the strong decrease in propylene prices. Therefore, adjusted EBITDA could
not yet reach the level of the prior year period. On a quarter to quarter basis, Oxea was
again able to increase revenue and adjusted EBITDA. Compared to the first quarter of
2012, revenues were up by 2% and adjusted EBITDA was up by 3%. This underpins the
continuation of the positive earnings trend in the first half of 2012 after a softer second half
of 2011. In the first half of 2012, Oxea generated strong cash flows, mainly due to a
significant improvement of Trade Working Capital. Cash provided by operating activities
was EUR71 million compared with EUR48 million in the corresponding period of the prior
year. The strong financial position allowed Oxea to redeem 5% of the outstanding Senior
Secured Notes in June 2012. A further optional redemption of 5% was announced inJ uly
2012 and completed as of August 10, 2012. Within two years after the Bond issue, Oxea
has executed all three redemption options, each of 5% of outstanding Senior Secured
Notes at a redemption price of 103% as permitted under the terms and conditions of the
Indenture.

|In EUR million | Three months| Six months |
|Unaudited | ended | ended |
| | June 30 | June 30 |
| |2012 |2011 |2012 |2011 |
|------------------|------|------|------|------|
|Net sales |379.7 |391.2 |751.2 |768.2 |
|Gross profit | 46.4 | 54.9 | 93.7 |123.0 |
|SG&A | (9.6)|(8.8) |(19.1)|(19.2)| |R&D | (1.6)|(1.5) | (3.3)| (3.1)|
|Other operating | 11.9 | 2.0 | 13.7 | 3.2 |
|income/expense | | | | |
|Operating profit | 47.1 | 46.6 | 85.0 |103.9 |
|Net income | 22.7 | 16.4 | 38.8 | 46.4 |
|EBITDA | 53.3 | 52.4 | 97.3 |115.9 |
|Adjusted EBITDA | 46.0 | 56.4 | 90.5 |122.2 |
Net sales Net sales for the three months endedJ une 30, 2012 were EUR379.7 million, a
decrease of 2.9% compared with the corresponding period of the prior year. Overall,
volumes were 2.9% lower, mainly driven by the Turnarounds as mentioned above in Q2
2012. Oxo Intermediates volumes and Oxo Derivatives were 2.0% and 5.9% lower,
respectively, than in the corresponding period of the prior year. Of our revenues for the
three months ended June 30, 2012, EUR191 million resulted from sales in Europe,
EUR120 million in North America, and EUR68 million in the rest of the world compared to
EUR212 million, EUR117 million, and EUR62 million, respectively, in the prior year period.
Gross profit Gross profit for the three months ended June 30, 2012 amounted to EUR46.4
million compared with EUR54.9 million in the corresponding period of the prior year. This
development is mainly due to the Turnarounds and the inventory carry over impact of the
strong decrease in propylene prices as mentioned above, such that gross profit amounted
to 12.2% of sales compared with 14.0% in the second quarter of 2011.
Selling, general & administration expense (SG&A) SG&A expense for the three months
ended June 30, 2012 amounted to EUR9.6 million compared with EUR8.8 million in the
corresponding period of the prior year, mainly due to higher consulting fees and the strong
US Dollar during Q2 2012.
Other operating income/(expense) Net other operating income for the three months ended
June 30, 2012 amounted to EUR11.9 million compared with a net other operating income
of EUR2.0 million in the corresponding period of the prior year. The increase is primarily
attributable to insurance income, which has been treated as an exceptional item for
purposes of calculating adjusted EBITDA.
Operating result Operating result for the three months ended June, 2012 wasE UR47.1
million compared with EUR46.6 million in the corresponding prior year period, primarily as
a result of lower gross profit and higher SG&A expense as explained above, compensated
by higher net other operating income.
Financial result Net financial expense was EUR14.6 million compared with EUR16.8
million in Q2 2011 due to higher net foreign currency losses in the corresponding period of
the prior year.
Net income Net income was EUR22.7 million compared with EUR16.4 million in the
corresponding period of the prior year due to a higher operating result and a lower net
financial expense as mentioned above, as well as lower income taxes.
Adjusted EBITDA Adjusted EBITDA at EUR46.0 million compared with EUR56.4 million in
the corresponding period of the prior year was mainly driven by lower gross profit as
mentioned above.Cash flow The company continued to generate positive free cash flow and during the first
half of 2012, Oxea generated EUR70.7 million in cash from operating activities compared
with EUR48.0 million in the corresponding period of the prior year. Higher inflows from
working capital were partly offset by lower earnings from operating activities and higher
income tax payments.
Cash used in investing activities was EUR37.8 million compared with EUR12.5 million in
the corresponding period of the prior year due to higher spending for growth projects.
Cash used in financing activities was EUR48.7 million compared to EUR104.5 million in
the corresponding period of the prior year, which included a payment to shareholders in
the amount of EUR55 million.
Oxea is a global manufacturer of Oxo Intermediates and Derivatives such as alcohols,
polyols, carboxylic acids, specialty esters and amines. These products are sold in the
merchant market (where sales are to third party customers) and used for the production of
high-quality coatings, lubricants, cosmetic and pharmaceutical products, flavourings and
fragrances, printing inks and plastics. In 2011, Oxea generated revenue of about EUR1.5
billion with its 1,365 employees in Europe, the Americas and Asia.
Please note:
This press release contains financial information regarding the businesses and assets of
OXEA S.à r.l. (the "Company") and its consolidated subsidiaries (the "Group"). Such
financial information has not been audited, reviewed or verified by any independent
accounting firm. The inclusion of such financial information in this press release or any
related presentation should not be regarded as a representation or warranty by the
Company, any of its respective affiliates, advisors or representatives or any other person
as to the accuracy or completeness of such information's portrayal of the financial
condition or results of operations by the Group.
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among others: the cyclical and highly variable nature of our business and its sensitivity to
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