03 March 2011 22:30 [Source: ICIS news]
HOUSTON (ICIS)--TPC Group reported a $700,000 (€504,000) net loss in its fiscal second quarter ended 31 December, down from a $8.4m net income in the year-earlier period, the US butadiene (BD) producer said on Thursday.
In comparison with the same period in 2009, TPC did not receive $17.1m in insurance money during the latest quarter, it said.
The 2009 period included insurance claims related to 2008’s Hurricane Ike. Excluding that, gross profit for the 2010 quarter was $59.2m, up 21% from $49.0m in the 2009 quarter.
Sales totaled $486.1m, up 17% from $415.8m in the year-earlier period as average selling prices surged by 30%. Volumes, meanwhile, contracted by 10%.
“Despite the seasonal slowdown we typically experience in November and December, global economic growth is allowing us to take advantage of our product slate and improve margins,” said TPC chief executive Charlie Shaver.
“Prices in ?xml:namespace>
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were $19m, nearly doubling $10.2m in the prior-year quarter.
The fiscal second quarter was the second and final quarter of a six-month transition period for TPC as it realigns its financial reporting periods. It's new fiscal year began on 1 January.
For its fiscal 2011 first quarter, which will end on 31 March, TPC said it expects adjusted EBITDA to improve sequentially to between $24m-28m.
“Butadiene prices have been higher each consecutive month this year and natural rubber prices have traded near all-time records,” Shaver said.
“This upward momentum is also supportive of margin expansion, especially in our isobutylene derivative products," he added.
Shaver noted that many of TPC’s customers were experiencing growth in existing markets and had announced programmes to re-invest capital.
“In support of this growth, we are running our plants at high utilisation rates and working to find new ways to optimise and extract value,” he said. “In addition, we are reviewing capital and non-capital options to de-bottleneck certain units.
“Overall, current trends are creating a favourable environment for the production of butadiene… and other related products,” he said.
For more on BD visit ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|