TPC Group swings to Q3 net profit of $4.1m as revenues jump

14 May 2010 14:18  [Source: ICIS news]

TORONTO (ICIS news)--TPC Group posted a fiscal 2010 third-quarter net profit of $4.1m (€3.3m), compared with a loss of $5.3m in the same quarter a year ago, as revenues more than doubled on the back of higher selling prices, the company said on Friday.

The US-based producer of butadiene (BD), fuel products, lubricant additives, plastics and surfactants said revenues for the three months ended 31 March rose to $400.7m, up considerably from $162.6m in the fiscal 2009 third quarter.

Sales volumes rose 15% from the fiscal 2009 third quarter, with the sales increase driven primarily by significantly higher average selling prices, the company said.

“The higher selling prices and higher sales volumes are both indicative of much stronger and more stable market conditions in the fiscal 2010 quarter compared to the fiscal 2009 quarter when commodity prices and customer demand were severely depressed because of the global economic recession,” it said.

Sequentially, revenues were down slightly from $415.8m in the preceding fiscal 2010 second quarter, when volumes fell primarily due to the timing of fuel product shipments and the impact of a major scheduled plant turnaround in the third quarter. The decline was only partially offset by higher average selling prices, the company said.

Third-quarter gross profit was $59.7m, up 68% from $35.6m, and income from operations was $8.8m, compared with a loss of $7.1m in the fiscal 2009 third quarter.

“Market conditions continued the favourable trend we have seen over the past few quarters as demand continued to strengthen and supply remained tight for some of our products,” said CEO Charlie Shaver.

Going forward, TPC Group – formerly known as Texas Petrochemicals – expected strong demand for butadiene, butene-1, and its performance products, it said.

The company was not planning any maintenance shutdowns during the current fiscal 2010 fourth quarter ending on 30 June, it added.

($1 = €0.80)

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By: Stefan Baumgarten
+1 713 525 2653

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