DGAP-News: Oxea GmbH / Key word(s): Quarter Results
Oxea GmbH: Oxea reports strong EBITDA uplift in Q1 2013
14.05.2013 / 11:03
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Oxea reports strong EBITDA uplift in Q1 2013
Highlights Q1 2013:
- Net sales were EUR 373 million versus EUR 372 million in the prior year
period
- Gross profit was EUR 55 million versus EUR 47 million in the prior year
period
- Operating profit was EUR 46 million versus EUR 38 million in the prior
year period
- Net income was EUR 21 million versus EUR 16 million in the prior year
period
- EBITDA was EUR 53 million versus EUR 44 million in the prior year
period
- Adjusted EBITDA was EUR 53 million versus EUR 45 million in the prior
year period
Luxembourg, May 14, 2013 - Oxea, a leading global supplier of Oxo
Intermediates and Oxo Derivatives, today announced for the first quarter of
2013 a strong earnings increase compared with the first quarter of 2012.
Adjusted EBITDA increased from EUR 45 million in Q1 2012 to EUR 53 million
in Q1 2013 (+18%), 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 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 5-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. In the first quarter of 2013, Oxea again
generated strong free cash flows. Cash provided by operating activities was
EUR 40 million (Q1 2012: EUR 42 million) despite the necessary build-up of
Trade Working Capital prior to the start of the 5-year turnaround at the
Oberhausen site. Oxea's strong earnings and cash flow position, bolstered
by the two new derivatives production facilities, has put Oxea in a
position to refinance the existing Senior Secured Notes at more favourable
terms. In order to take advantage of the current favourable market
conditions, Oxea is currently planning to refinance the existing Senior
Secured Notes in mid July 2013 after the expiration of the call protection
period.
<pre>
In EUR million - Unaudited Q1 2013 Q1 2012
Net sales 372.6 371.5
Gross profit 54.6 47.2
SG&A (8.6) (9.4)
R&D (1.9) (1.7)
Other operating income/expense 1.8 1.8
Operating profit 45.9 37.9
Net income 21.4 16.1
EBITDA 52.5 44.0
Adjusted EBITDA 52.6 44.5
</pre>
Net sales
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 5kt (-1.6%) lower compared with Q1 2012 mainly driven by
volume slippages into the next month. Oxo Intermediates volumes were down
by 2.8% and Oxo Derivatives volumes traded 2.0% higher. Of our 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
Gross profit for the three months ended March 31, 2013 amounted to EUR 54.6
million compared with EUR 47.2 million in Q1 2012 mainly due to improved
margins.
Selling, general & administration expense (SG&A)
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.
Other operating income/(expense)
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
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.
Financial result
Net financial expense for the three months ended March 31, 2013 was EUR
11.3 million compared with EUR 13.0 million in Q1 2012 mainly due to
exchange rate losses in the prior year period.
Net income
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
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.
Cash flow
The company continued to generate positive free cash flow. Despite the
necessary build-up of Trade Working Capital, cash from operating activities
of EUR 40.5m was close to the already excellent level of the prior year
period. Cash used in investing activities of EUR 14.5 million was in line
with the corresponding period of the prior year and reflects our continuing
focus on growth initiatives with a further shift to high margin downstream
derivatives. Cash used in financing activities was EUR 20.7 million
compared with EUR 23.1 million in the corresponding period of the prior
year mainly resulting from the optional bond redemptions executed during
2012.
Oxea is a global manufacturer of Oxo Intermediates and Oxo 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 2012, Oxea generated revenue of
approximately EUR 1.5 billion with its 1,406 employees in Europe, the
Americas and Asia.
Please note:
This press release contains financial information regarding the businesses
and assets of OXEA S.Ã 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.
This press release and related presentations (including on our website) may
contain information, data and predictions about our markets and our
competitive position. While we believe this data to be reliable, it has not
been independently verified, and we make no representation or warranty as
to the accuracy or completeness of such information set forth in this
document. Additionally, industry publications and reports from which such
information, data or predictions may be obtained generally state that the
information contained therein has been obtained from sources believed to be
reliable but that the accuracy and completeness of such information is not
guaranteed and in some instances state that they do not assume liability
for such information. We cannot therefore assure you of the accuracy and
completeness of such information and we have not independently verified
such information. In addition, we have made statements in this document
regarding our industry and position in the industry based on our experience
and our own investigation of market conditions. We cannot assure you that
the assumptions underlying these statements are accurate or correctly
reflect the state and development of, or our position in, the industry, and
none of our internal surveys or information has been verified by any
independent sources.
Certain statements in this document are forward-looking. By their nature,
forward-looking statements involve known and unknown risks and
uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future, many of which are not in the
control of the Company. Forward-looking statements are not guarantees of
future and our performance and actual results may be affected by various
factors. These factors include, among others: the cyclical and highly
variable nature of our business and its sensitivity to changes in supply
and demand; adverse and uncertain global economic conditions; the highly
variable nature of raw materials costs and any loss of key suppliers or
supply shortages or disruptions; the competitive nature of our industry;
the ability to comply with current or future laws and regulations relating
to environmental, health and safety matters as well as the safety of our
products, related costs of maintaining compliance and addressing
liabilities as well as risks relating to compliance with antitrust and tax
laws; our reliance on a limited number of suppliers for certain of our key
raw materials; operational risks, including the risk of environmental
contamination and potential product liability claims; operational
interruptions at our facilities due to events that are outside of our
control such as severe weather conditions, unscheduled downtimes, terrorist
attacks, natural disasters or other events that may interrupt or damage our
operations or the impact of scheduled outages on our results of operations;
the risk that our insurance coverage may not be sufficient to cover all
risks; risks relating to the global nature of our operations, including,
among others, fluctuations in exchange rates; the loss of major customers
or key customers for certain of our products; the loss of key personnel;
risks relating to acquisitions and dispositions, including any impairment
risks with respect to historical acquisitions, our ability to successfully
integrate acquired businesses, and unexpected liabilities relating to such
acquisitions or contingent liabilities in connection with such
dispositions; the requirement to make further contributions to our pension
schemes; the failure to protect our intellectual property rights;
limitations on our ability to adjust the quality of certain products that
we manufacture; potential conflicts of interests with our principal
shareholder; and conditions in the financing markets.
These and other factors could adversely affect the outcome and financial
effects of the plans and events described herein. Forward-looking
statements contained in this document regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. New risks can emerge from time to time, and it is
not possible for us to predict all such risks, nor can we assess the impact
of all such risks on our business or the extent to which any risks, or
combination of risks and other factors, may cause actual results to differ
materially from those contained in any forward-looking statements. Neither
the Company nor the Group undertakes any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. You should not place undue reliance on forward-looking
statements, which speak only as of the date of this document.
EBITDA is defined as net income for the year before financial result,
income taxes, depreciation and amortization. Adjusted EBITDA is defined as
EBITDA adjusted to remove the effects of certain non-cash and non-recurring
expenses and charges. EBITDA and Adjusted EBITDA are supplemental measures
of our performance and liquidity that are not required by or presented in
accordance with IFRS. EBITDA and Adjusted EBITDA are not measurements of
our financial performance or liquidity under IFRS and should not be
considered as an alternative to profit for the period presented, results
from operating activities or any other performance measures derived in
accordance with IFRS or as an alternative to cash flow from operating
activities as a measure of our liquidity. We believe EBITDA and Adjusted
EBITDA facilitate operating performance comparisons from period to period
and company to company by eliminating potential differences caused by
variations in capital structures (affecting interest expense), tax
positions (such as the impact on periods or companies of change in
effective tax rates or net operating losses) and the age and book value and
amortization of tangible and intangible assets (which have an effect on
related depreciation expense). We also present EBITDA and Adjusted EBITDA
because we believe it these are frequently used by securities analysts,
investors and other interested parties in the evaluation of similar
issuers, the majority of which present EBITDA and Adjusted EBITDA when
reporting their results. Finally, we present EBITDA and Adjusted EBITDA as
measures of our ability to service our debt.
Contacts:
Bernhard Spetsmann
Managing Director (Finance, IT)
bernhard.spetsmann@oxea-chemicals.com
Birgit Reichel
Communications/PR
birgit.reichel@oxea-chemicals.com
Oxea GmbH
Otto-Roelen-Strasse 3
D-46147 Oberhausen
www.oxea-chemicals.com
End of Corporate News
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Language: English
Company: Oxea GmbH
Otto-Roelen-StraÃe 3
46147 Oberhausen
Germany
Phone: +49 (0)208 693 3100
Fax: +49 (0)208 693 3101
E-mail: info@oxea-chemicals.com
Internet: www.oxea-chemicals.com
ISIN: XS0523636594
WKN: A1AY4T
End of News DGAP News-Service
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210822 14.05.2013
DGAP-News: Oxea GmbH: Oxea reports strong EBITDA uplift in Q1 2013
| Source: EQS Group AG