Innospec Inc (IOSP) 2024 Q4 法說會逐字稿

Thank you. Welcome to Innospec's earnings call. This is David Jones, I'm Innospec's General Counsel and Chief Compliance Officer.

謝謝。歡迎參加 Innospec 的收益電話會議。我是戴維瓊斯 (David Jones)，Innospec 的總法律顧問兼首席合規官。

Earnings release for this presentation is posted on the company's website. During this call, we will make forward-looking statements, which are predictions about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated results implied by such forward-looking statements. The risks and uncertainties are detailed in Innospec's 10-K, 10-Q, and other filings with the SEC. Please see the SEC site and Innospec's site for these and related documents.

本次演示的收益報告已發佈在公司網站上。在本次電話會議中，我們將做出前瞻性陳述，即對未來事件的預測。這些陳述是基於目前的預期和假設，這些預期和假設受風險和不確定性的影響，可能導致實際結果與此類前瞻性陳述所暗示的預期結果有重大差異。Innospec 的 10-K、10-Q 以及提交給美國證券交易委員會的其他文件中詳細說明了這些風險和不確定性。請參閱 SEC 網站和 Innospec 網站以取得這些文件和相關文件。

In today's presentation, we have also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in the earnings release. The non-GAAP financial measures should not be considered as a substitute for or superior to those prepared in accordance with GAAP. They are included as additional items to aid investors understanding of the company's performance in addition to the impact of these items had on financial results.

在今天的介紹中，我們也加入了非公認會計準則財務指標。收益報告中包含了與最直接可比較的 GAAP 財務指標的對帳。非公認會計準則財務指標不應被視為替代或優於根據公認會計準則編制的財務指標。它們作為附加項目包含在內，以幫助投資者了解公司的業績以及這些項目對財務結果的影響。

With me today from Innospec are Patrick Williams, President and Chief Executive Officer; and Ian Cleminson, Executive Vice President and Chief Financial Officer.

今天與我一起的還有 Innospec 的總裁兼執行長 Patrick Williams；以及執行副總裁兼財務長 Ian Cleminson。

And with that, I'll turn it over to you, Patrick.

現在，我將把話題交給你，派崔克。

Thank you, David, and welcome, everyone to Innospec's fourth quarter and full-year 2024 conference call.

謝謝你，大衛，歡迎大家參加 Innospec 2024 年第四季和全年電話會議。

This was another good quarter for Innospec as we exceeded earnings expectations despite the reduced Oilfield Services activity in Latin America.

對於 Innospec 來說這又是一個表現出色的季度，儘管拉丁美洲的油田服務活動減少，但我們的盈利超出了預期。

In Performance Chemicals, we delivered double-digit operating income growth over the fourth quarter last year, driven by improved sales and margins. We have a balanced pipeline of growth opportunities across our global personal care, home care, agriculture, construction, and other industrial markets.

在高性能化學品方面，由於銷售額和利潤率的提高，我們去年第四季的營業收入實現了兩位數的成長。我們在全球個人護理、家庭護理、農業、建築和其他工業市場擁有均衡的成長機會。

In addition, the integration and performance of our recent QGP acquisition in Brazil is proceeding to plan and is supporting not only Performance Chemicals but also Fuel Specialties growth opportunities in the region.

此外，我們最近在巴西收購的QGP的整合和履行正在按計劃進行，這不僅支持該地區高性能化學品的成長機會，也支持燃料特種化學品的成長機會。

Moving to 2025, we continue to target operating income and margin improvement to levels consistent with full year 2022. In Fuel Specialties, operating income increased 7% over the same quarter last year, and operating margin improved to just below our target of 19% to 21%. We remain focused on further margin improvement in parallel with top line growth.

展望 2025 年，我們將繼續以將營業收入和利潤率提高到與 2022 年全年一致的水平為目標。燃料特種產品部門的營業收入比去年同期成長了 7%，營業利潤率提高至略低於我們的目標 19% 至 21%。我們將繼續致力於在實現營收成長的同時進一步提高利潤率。

With our industry-leading innovation and customer service capabilities, we are well positioned to continue advancing our global customers' initiatives. Our technology will continue to focus on cleaner fuels, lowering emissions, and improving efficiency in traditional, renewable, and non-fuel applications.

憑藉我們行業領先的創新和客戶服務能力，我們有能力繼續推進全球客戶的計劃。我們的技術將繼續專注於更清潔的燃料、降低排放以及提高傳統、再生和非燃料應用的效率。

In Oilfield Services as expected, results were similar to the third quarter, with no recovery in Latin America production chemical activity. We currently do not expect this activity to resume in the near term. In 2025, we remain focused on continuing to drive sequential quarterly improvements in our core businesses, including US completions and production, DRA, and the Middle East.

正如預期的那樣，油田服務業務的業績與第三季相似，拉丁美洲的生產化學品活動沒有復甦。我們目前預計該活動不會在短期內恢復。2025 年，我們將繼續專注於繼續推動核心業務（包括美國完井和生產、DRA 和中東）的連續季度改善。

Now I will turn the call over to Ian Clemson, who will review our financial results in more detail, then I will return with some concluding comments. After that, Ian, I will take your questions. Ian?

現在，我將把電話轉給伊恩·克萊姆森 (Ian Clemson)，他將更詳細地審查我們的財務結果，然後我將給出一些總結性評論。之後，伊恩，我將回答你們的問題。伊恩？

Thanks, Patrick. Turning to slide 7 in the presentation. The company's total revenues for the fourth quarter were $466.8 million, a 6% decrease from $494.7 million a year ago. Overall gross margin decreased by 2.3 percentage points from last year to 29.2%. Adjusted EBITDA for the quarter was $56.6 million compared to $61.6 million last year.

謝謝，派崔克。翻到簡報的第 7 張投影片。該公司第四季的總營收為 4.668 億美元，較去年同期的 4.947 億美元下降 6%。整體毛利率較去年同期下降2.3個百分點至29.2%。本季調整後 EBITDA 為 5,660 萬美元，去年同期為 6,160 萬美元。

In the fourth quarter, the company concluded the buyouts of the UK pension scheme and incurred a non-cash settlement charge of $155.6 million and consequently, there was a net loss for the quarter of $70.4 million. Adjusting for this, the net income was $46.3 million compared to $37.8 million a year ago.

第四季度，該公司完成了對英國退休金計畫的收購，並產生了1.556億美元的非現金結算費用，因此本季淨虧損7,040萬美元。經過此調整後，淨收入為 4,630 萬美元，而一年前為 3,780 萬美元。

Our GAAP loss per share of $2.80, including special items, the net effect of which decreased our fourth quarter earnings by $4.21 per share. A year ago, we reported GAAP earnings per share of $1.51, which included a negative impact from special items of $0.33 per share. Excluding special items in both years, our adjusted EPS for the quarter was $1.41 compared to $1.84 a year ago.

我們的每股 GAAP 虧損為 2.80 美元，包括特殊項目，淨效應導致我們第四季每股收益減少 4.21 美元。一年前，我們報告的 GAAP 每股收益為 1.51 美元，其中包括特殊項目的負面影響（每股 0.33 美元）。除去兩年的特殊項目，本季的調整後每股收益為 1.41 美元，去年同期為 1.84 美元。

For the full year, total revenues of $1.85 billion decreased 5% from $1.95 billion in 2023. Adjusted EBITDA for the year was $225.2 million compared to $216 million in 2023. And net income adjusted for the pension settlement was $152.3 million compared to $139.1 million a year ago. Our full-year GAAP earnings per share were $1.42, including special items, which decreased our full year earnings by $4.50 per share.

全年總收入為 18.5 億美元，較 2023 年的 19.5 億美元下降 5%。該年度調整後 EBITDA 為 2.252 億美元，而 2023 年為 2.16 億美元。經退休金結算調整後的淨收入為 1.523 億美元，去年同期為 1.391 億美元。我們的全年 GAAP 每股收益為 1.42 美元，其中包括特殊項目，這使我們的全年每股收益減少了 4.50 美元。

In 2023, we reported GAAP earnings per share of $5.56 per share, which included a negative impact from special items of $0.53 per share. Excluding special items in both years, our adjusted EPS for the year was $5.92 compared to $6.09 a year ago.

2023 年，我們報告的 GAAP 每股收益為 5.56 美元，其中包括特殊項目的負面影響每股 0.53 美元。除去兩年的特殊項目，我們今年的調整後每股收益為 5.92 美元，而去年同期為 6.09 美元。

Turning to slide 8. Revenues in Performance Chemicals for the fourth quarter were $169.2 million, up 23% from last year's $137.2 million, a negative price mix of 2% was offset by acquisition growth of 7% and volume growth of 17% and a positive currency impact of 1%.

翻到幻燈片 8。第四季高性能化學品業務營收為 1.692 億美元，較去年同期的 1.372 億美元增長 23%，價格組合下滑 2% 的影響被收購增長 7%、銷量增長 17% 以及貨幣增長 1% 所抵消。

Gross margins of 22.7% were up 1.4 percentage points from last year, and operating income increased 14% to $20.6 million. For the full year, revenues of $653.7 million were up 16% from last year's $561.6 million and operating income increased by 52% to $82.9 million.

毛利率為22.7%，較去年同期上升1.4個百分點，營業收入成長14%，至2,060萬美元。全年營收為 6.537 億美元，較去年的 5.616 億美元成長 16%，營業收入成長 52%，至 8,290 萬美元。

Moving on to slide 9. Revenues in Fuel Specialties for the fourth quarter were $191.8 million up 5% from $182.1 million reported a year ago. Volumes increased by 9% and a positive currency impact of 1% offset a negative price mix of 5%.

轉到第 9 張投影片。燃料特種產品部門第四季的營收為 1.918 億美元，較去年同期的 1.821 億美元成長 5%。交易量增加了 9%，1% 的正貨幣影響抵消了 5% 的負價格組合影響。

Fuel Specialties gross margins of 34.4% increased by 1.5 percentage points from 33.9% last year, and operating income increased 7% to $34.9 million. For the full year, revenues were up 1% to $ 701.1 million, and operating income increased 18% to $129.6 million. Adjusting to the impact of nonrecurring Brazil inventory charges in 2023, full year operating income grew by 4%.

燃料特種業務的毛利率為 34.4%，較去年的 33.9% 上升 1.5 個百分點，營業收入成長 7% 至 3,490 萬美元。全年營收成長1%至7.011億美元，營業收入成長18%至1.296億美元。調整2023年非經常性巴西庫存費用的影響，全年營業收入成長4%。

Moving on to slide 10. Revenues in Oilfield Services for the quarter were $105.8 million, down 40% from $175.4 million in the fourth quarter last year. Gross margins of 30.1% were down 7.9 percentage points on last year's 38% and operating income of $7.5 million was down 59% from $18.3 million a year ago.

轉到投影片 10。本季油田服務收入為 1.058 億美元，較去年第四季的 1.754 億美元下降 40%。毛利率為 30.1%，較去年的 38% 下降 7.9 個百分點，營業收入為 750 萬美元，較一年前的 1,830 萬美元下降 59%。

For the full year, revenues of $490.6 million were down 29% from last year's $691.3 million and operating income decreased to 51% to $38.8 million. Excluding the Latin American production activity, our core business has grown sales and operating income year over year. Our expectation for 2025 is that we will see further sequential improvements in the core oilfield business.

全年營收為 4.906 億美元，較去年的 6.913 億美元下降 29%，營業收入下降 51% 至 3,880 萬美元。除拉丁美洲的生產活動外，我們的核心業務的銷售額和營業收入逐年增長。我們對 2025 年的預期是，核心油田業務將進一步連續改善。

Turning to slide 11. Corporate costs of $20.6 million decreased by $3.8 million from last year, which included $1.3 million relating to acquisition costs. The full-year adjusted effective tax rate was 26.4% compared to 23% last year due to the geographical mix of taxable profits. For 2025, we expect the full year effective tax rate to be around 27%.

翻到第 11 張投影片。公司成本為 2,060 萬美元，較去年同期減少 380 萬美元，其中包括 130 萬美元的收購成本。由於應稅利潤的地理分佈，全年調整後有效稅率為 26.4%，去年為 23%。預計 2025 年全年有效稅率將在 27% 左右。

Moving on to slide 12. Cash generated from operations in the quarter was $25.7 million before capital expenditures of $20.6 million. In the quarter, we paid the previously announced semi-annual dividend of $0.79 per common share. This brought the total dividend for the full year to $1.55 per share, a 10% increase over 2023. For the full year, cash from operations after capital expenditures was $122.7 million compared to $130.2 million in 2023.

轉到第 12 張投影片。本季經營活動產生的現金為 2,570 萬美元，扣除資本支出 2,060 萬美元前。本季度，我們支付了先前宣布的每股普通股 0.79 美元的半年股息。這使得全年總股息達到每股 1.55 美元，比 2023 年增加 10%。全年扣除資本支出後的營運現金為 1.227 億美元，而 2023 年為 1.302 億美元。

As of December 31, 2024, Innospec had $289.2 million in cash and cash equivalents and no debt.

截至 2024 年 12 月 31 日，Innospec 擁有 2.892 億美元現金和現金等價物，沒有債務。

And now I'll turn it back over to Patrick for some final comments.

現在我將把話題轉回給派崔克，請他發表一些最後的評論。

Thanks Ian. Innospec achieved another good set of results over the quarter and full year. Strength in Performance Chemicals and Fuel Specialties continue to offset lower results in Oilfield Services. Our 2025 outlook remains for continued growth in Performance Chemicals and Fuel Specialties, along with the sequential quarterly recovery in Oilfield Services.

謝謝伊恩。Innospec 在本季和全年再次取得了良好的業績。高性能化學品和燃料特種產品的強勁表現繼續抵消油田服務業務的業績下滑。我們對 2025 年的展望仍然是：高性能化學品和燃料特種產品將持續成長，同時油田服務將逐季復甦。

In all, our businesses remain focused to deliver best-in-class surface-active chemistry technologies and technical service to our global customers. Our opportunity pipeline continues to focus on technologies that lower emissions, enable cleaner formulations, and increase operating efficiencies. We view these as long-term customer priorities in all our markets.

總而言之，我們的業務仍然專注於為全球客戶提供一流的表面活性化學技術和技術服務。我們的機會管道持續專注於降低排放、實現更清潔的配方和提高營運效率的技術。我們將這些視為所有市場的長期客戶優先事項。

Operating cash generation was positive in the quarter, and our net cash position closed with over $289 million. We continue to have significant flexibility and balance sheet strength for further M&A, dividend growth, share repurchases, and organic investment.

本季經營現金產生率為正，我們的淨現金部位收在 2.89 億美元以上。我們繼續擁有相當大的靈活性和資產負債表實力，以進行進一步的併購、股息成長、股票回購和有機投資。

Now I will turn the call over to the operator, and Ian and I will take your questions.

現在我將電話轉給接線員，伊恩和我將回答你們的問題。

(Operator Instructions) Jon Tanwanteng, CJS Securities.

(操作員指示) Jon Tanwanteng，CJS Securities。

My first one is -- my first one is, could you just talk about the year-over-year volume increases in both the fuels and the Chemicals segment. Were those just easy comps? Or were there timing factors? Or was it just a significant improvement in the underlying run rate demand there?

我的第一個問題是——我的第一個問題是，您能否談談燃料和化學品部門的銷售量年增長情況。這些只是簡單的比較嗎？或存在時間因素？或者這只是那裡潛在運行率需求的顯著改善？

I think there was a significant improvement. It was projects that we had, organic-based projects that came to fruition. Market conditions stabilized for us, and we continue to grow in our customer base. So I think it was overall just a general improvement.

我認為已經有了顯著的進步。這是我們所進行的項目，是已取得成果的有機項目。市場狀況已趨於穩定，我們的客戶群也持續成長。所以我認為整體來說這只是一個普遍的進步。

Got it. And the sustainability of that demand into Q1, have you seen those trends continue?

知道了。這種需求是否會持續到第一季度，您是否看到這種趨勢持續下去？

We have. So far, we have, Jon.

我們有。到目前為止，我們已經有了，喬恩。

Got it. And the margin, obviously, in Fuel Specialties was pretty outstanding. Do you think that is maintainable or sustainable for the future?

知道了。顯然，燃料特種產品的利潤率相當可觀。您認為這種狀況在未來能夠維持或持續嗎？

Yeah, I would probably hold the same margins that we held in the quarter.

是的，我可能會保持與本季相同的利潤率。

Got it. And then just on the oilfield segment, you mentioned that you don't expect that large customer to come back in the coming quarters. I'm wondering what your long-term expectation for that customer is if maybe six months down the line, a year down the line, you think they might come back.

知道了。然後就在油田領域，您提到，您預計那個大客戶不會在未來幾季回來。我想知道您對該客戶的長期期望是什麼，如果您認為六個月後或一年後他們可能會回來。

Yeah. I think you probably answered. We're probably thinking a second part of the year -- second half of the year, I should say. We know what's going on internally. It's very political right now. There's been articles out about some of the crude coming out, I would say heavy crude with all the water in US refineries not taking or being able to handle that route. So we know at some point in time, Jon, they are going to have to come back. It's a function of when and to what volume.

是的。我想你大概已經回答了。我們可能正在考慮今年下半年——我應該說是今年下半年。我們知道內部發生的情況。現在非常政治化。有文章報導了一些原油外流，我想說的是，美國煉油廠的所有水都無法透過這條路線處理重質原油。所以我們知道，喬恩，在某個時間點，他們必須回來。它是時間和音量的函數。

I do know if they come back, it's probably going to be at a lower volume, but that's okay. I think that our technology is in my opinion, the best technology in the marketplace to treat those crudes. And we're there, we're ready, just a function of timing in my opinion.

我確實知道，如果他們回來，音量可能會較低，但沒關係。我認為我們的技術是市場上處理這些原油的最佳技術。我們已經到了那裡，我們已經準備好了，在我看來這只是時間的問題。

Got it. Is there a risk that the refineries retool to use different kinds of crudes in the market (multiple speakers) before it happens.

知道了。在這種情況發生之前，煉油廠是否會重新調整以使用市場上不同種類的原油（多位發言者）的風險。

They could treat it at US refineries, but there's so much water in that crude right now that is very expensive to do. We could use our products that we probably use in Mexico at US refineries to help them and that's part of the plan is to have a dual attack there. Because we definitely help the US refineries that are taking that heavy crude. And so we are talking to them. Again, I think it's just a function of timing. It's just a lot of water in their crude and the US refineries aren't really prepared to take on that much water.

他們可以在美國煉油廠對其進行處理，但目前原油中含水量太高，處理成本非常高。我們可以使用我們可能在墨西哥使用的美國煉油廠的產品來幫助他們，這是在那裡發動雙重攻擊計劃的一部分。因為我們確實幫助了那些使用重質原油的美國煉油廠。因此我們正在和他們交談。再次強調，我認為這只是時間的問題。原油中含有大量水分，而美國煉油廠還沒有做好接收這麼多水分的準備。

Got it. Okay. Ian, just one housekeeping item. You had a pension settlement charge in the quarter. Can you just give a little color and details around that? Did you spend any cash? And what are the -- what's the pension liability going forward here?

知道了。好的。伊恩，只有一件家事。您本季有一筆退休金結算費用。您能否對此進行一些說明和細節描述？您花了現金嗎？那麼——未來的退休金責任是什麼？

Yeah. Sure, Jon. So we flagged this probably about two years ago, that we were heading towards this point. We concluded the buyouts in the fourth quarter. Essentially, what that does then removes the company's obligation to provide the sort of the cost of the pension scheme and it removes all those legislation changes, risks of investment returns, assumptions on inflation and sort of things. They're all now removed from the company's balance sheet. So this is actually a very positive thing for us.

是的。當然，喬恩。所以我們大概在兩年前就指出了這一點，我們正朝著這個方向前進。我們在第四季完成了收購。從本質上講，這樣做就免除了公司提供退休金計畫成本的義務，並消除了所有立法變化、投資回報風險、通貨膨脹假設等。現在它們都已從公司的資產負債表中刪除。所以這對我們來說其實是一件非常積極的事情。

Part of the US GAAP accounting was to recycle all those historic gains and losses that were in the reserves back into the income statement. That gave us $155 million charge. We've adjusted that out in the quarter. So this is a non-cash charge. It was a one-off event. As we move into 2025, the one thing that is going to be slightly different for us is that in 2024, we have a service credit flowing through our other income line, below operating income, up about $7.2 million.

美國公認會計準則的一部分是將儲備金中的所有歷史收益和損失重新計入損益表。這給我們帶來了 1.55 億美元的費用。我們已經在本季對此進行了調整。所以這是一項非現金費用。這是一次一次性活動。隨著我們進入 2025 年，對我們來說略有不同的一件事是，在 2024 年，我們的其他收入線中流動的服務信貸低於營業收入，增加了約 720 萬美元。

We won't have that credit flowing through in 2025. So there's a $0.22 headwind as we head into this year. That's the only impact that we've got ongoing. Everything else is pretty much wraps up now. There'll be no ongoing cost, no ongoing charges running through the income statement.

到 2025 年，我們將不會再有這樣的信貸流入。因此，我們今年面臨的阻力為 0.22 美元。這是我們唯一持續產生的影響。現在其他所有事情都基本上結束了。損益表中不會再有任何持續成本或持續費用。

(Operator Instructions) As there are no further questions on the phone lines, I would now like to hand back to Patrick Williams for any closing remarks.

（操作員指示）由於電話線上沒有其他問題，我現在想將發言權交還給帕特里克·威廉姆斯 (Patrick Williams)，請他做最後發言。

Thank you, all, for joining us today, and thanks to all our shareholders, customers and Innospec employees for your interest and support. If you have any further questions about Innospec or matters discussed today, please give us a call. We look forward to meeting up with you again to discuss our first quarter 2025 results in May. Have a great day.

感謝大家今天的到來，也感謝我們所有股東、客戶和 Innospec 員工的關注和支持。如果您對 Innospec 或今天討論的事項還有任何疑問，請致電我們。我們期待 5 月再次與您會面討論我們的 2025 年第一季業績。祝你有美好的一天。