Oxea Reports Earnings Increase for First Quarter
LUXEMBOURG - Oxea, a leading global supplier of oxo intermediates and oxo derivatives, reported an earnings increase for the first quarter of 2013 compared with the first quarter of 2012.
Adjusted EBITDA increased from EUR 45 million in the first quarter of 2012 to EUR 53 million in the first quarter of 2013, an increase of 18 percent, the third best quarterly result of Oxea since its inception in 2007. While revenues were stable compared with the corresponding period of the prior year, Oxea was able to increase margins as a result of continuous product portfolio optimization, successful implementation of cost reduction measures and a strong pricing discipline.
During the first quarter of 2013, Oxea completed the ramp-up phase of the new second production facility for specialty esters in Oberhausen, Germany, after its start-up of operations at the end of 2012. The third production unit for carboxylic acids in Oberhausen was mechanically completed at the end of April and is scheduled to be in operation prior to the five-year turnaround at the Oberhausen site, which will start at the end of this month. Both investments will render a further significant contribution to Oxea’s earnings in the near future.
Net sales for the three months ended March 31, 2013 of EUR 372.6 million were in line with the corresponding period of the prior year. Overall, volumes were 1.6 percent lower compared with the first quarter of 2012 mainly driven by volume slippages into the next month. Oxo Intermediates volumes were down by 2.8 percent, and Oxo Derivatives volumes traded 2.0 percent higher. Of revenues for the three months ended March 31, 2013, EUR 180 million resulted from sales in Europe, EUR 118 million resulted from sales in North America, and EUR 74 million resulted from sales in the rest of the world, as compared to EUR 188 million, EUR 120 million, and EUR 63 million, respectively, in the prior year period.
Gross profit for the three months ended March 31, 2013 amounted to EUR 54.6 million compared with EUR 47.2 million in the first quarater of 2012 mainly due to improved margins.
Selling, general & administration expense (SG&A) expense for the three months ended March 31, 2012, amounted to EUR 8.6 million compared with EUR 9.4 million in the corresponding period of the prior year mainly due to lower consulting fees and other external costs.
Net other operating income for the three months ended March 31, 2013, of EUR 1.8 million was in line with the corresponding period of the prior year.
Operating profit for the three months ended March 31, 2013, was EUR 45.9 million compared with EUR 37.9 million in the corresponding prior year period, primarily as a result of higher gross profit and lower SG&A expense as explained above.
Net income for the three months ended March 31, 2013, was EUR 21.4 million compared with EUR 16.1 million in the corresponding period of the prior year mainly driven by the higher operating profit as mentioned above.
Adjusted EBITDA for the three months ended March 31, 2013, was EUR 52.6 million compared with EUR 44.5 million in the corresponding period of the prior year mainly driven by improved margins as explained above.
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