US TPC Group Q3 income falls 22% on expenses, lower BD revenue

01 November 2012 21:52  [Source: ICIS news]

HOUSTON (ICIS)--TPC Group’s third-quarter income fell by 22% year on year, the US-based butadiene (BD) producer said on Thursday.

Net income for the quarter ending on 30 September was $7.3m (€5.6m) compared with last year’s $9.4m, TPC said.

Revenue was $510.6m, a 39% decline due to a decrease in overall average selling prices and lower sales volume, the company said.

“The lower average selling price was driven primarily by a 49% decline in the benchmark contract price for butadiene, while the lower sales volume reflected softer demand due to continuing weakness in global economic conditions," TPC said.

Cost of sales was $432.1m, down 43% from last year’s $758.1m. Despite the drop in cost of sales, general and administrative expenses rose by 50%, reaching $11.4m.

TPC is amidst acquisition discussions. US specialty chemicals company Innospec made an offer in October, which was substantially higher than an earlier bid by energy-focused private equity firm First Reserve and chemical industry-focused private investment firm SK Capital Partners.

($1 = €0.77)

By: Tracy Dang
+1 713 525 2653

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