Huntsman Corporation reported first quarter 2022 results

The Woodlands, TX – Huntsman Corporation reported first quarter 2022 results with revenues of $2,389 million, net income of $240 million, adjusted net income of $256 million and adjusted EBITDA of $415 million.

Peter R. Huntsman, Chairman, President and CEO, commented: “We started 2022 with positive momentum and are focused on further improvements through a deliberate value over volume strategy that includes our pricing initiatives, cost optimization programs, organic investments and when appropriate bolt-on acquisitions. We delivered on pricing in the first quarter and expanded our margins despite tremendous upward pressure on our raw material costs. The strength of our balance sheet was recognized by the recent upgrades from S&P to BBB- and Fitch to BBB.

Looking forward, our balance sheet strength as well as our expected cash flow gives us flexibility to invest for the future as well as return cash to shareholders today. The Board increased our dividend 13% in the first quarter for a total dividend increase of 70% since 2018. And, as we previously announced, the Board doubled the share repurchase authorization to $2 billion at the end of March, half of which we intend to spend in 2022. We are actively monitoring the many economic cross currents throughout the world but where we stand today, we expect continued strong overall results in the second quarter.”

The increase in revenues in our Polyurethanes segment for the three months ended March 31, 2022 compared to the same period of 2021 was largely due to higher MDI average selling prices and slightly higher sales volumes. MDI average selling prices increased in all our regions. Sales volumes increased primarily due to stronger demand in all our regions. The increase in segment adjusted EBITDA was primarily due to higher MDI margins resulting from higher MDI pricing and slightly higher sales volumes, partially offset by higher raw material costs and lower earnings from our PO/MTBE joint venture in China.

The increase in revenues in our Performance Products segment for the three months ended March 31, 2022 compared to the same period of 2021 was primarily due to higher average selling prices and slightly higher sales volumes. Average selling prices increased primarily due to stronger demand in relation to the ongoing recovery from the global economic slowdown as well as in response to an increase in raw material costs. Sales volumes increased primarily due to stronger demand as well as favorable product mix changes aligned with our value-over-volume business strategy. The increase in segment adjusted EBITDA was primarily due to increased revenues and margins, partially offset by increased fixed costs.

The increase in revenues in our Advanced Materials segment for the three months ended March 31, 2022 compared to the same period in 2021 was primarily due to higher average selling prices, partially offset by lower sales volumes. Average selling prices increased across all markets largely in response to higher raw material, energy and logistics costs. Sales volumes decreased primarily due to deselection of lower margin base resins business. The increase in segment adjusted EBITDA was primarily due to higher sales prices and the benefit from the Gabriel Acquisition.

The increase in revenues in our Textile Effects segment for the three months ended March 31, 2022 compared to the same period of 2021 was due to higher average selling prices, partially offset by a decrease in sales volumes. Average selling prices increased in response to higher direct costs. Sales volumes decreased primarily due to a deselection of certain volume as well as lower demand. The increase in segment adjusted EBITDA was primarily due to improved portfolio mix.

For the three months ended March 31, 2022, adjusted EBITDA from Corporate and other was a loss of $50 million unchanged from the same period of 2021.

During the three months ended March 31, 2022, our free cash flow from continuing operations was a source of cash of $16 million as compared to a use of cash of $114 million in the prior year period. As of March 31, 2022, we had approximately $2.3 billion of combined cash and unused borrowing capacity.

During the three months ended March 31, 2022, we spent $69 million on capital expenditures as compared to $98 million in the same period of 2021. For 2022, we expect to spend approximately $300 million on capital expenditures.

In the first quarter 2022, both our effective tax rate and our adjusted effective tax rate was 21%. We expect our 2022 adjusted effective tax rate to be approximately 22% to 24%.

Earnings Conference Call Information

We will hold a conference call to discuss our first quarter 2022 financial results on Thursday, April 28, 2022, at 10:00 a.m. ET.

Webcast link: https://services.choruscall.com/mediaframe/webcast.html?webcastid=KvyqXLON

Participant dial-in numbers:
Domestic callers: (877) 402-8037
International callers: (201) 378-4913

The conference call will be accompanied by presentation slides that will be accessible via the webcast link and Huntsman’s investor relations website, www.huntsman.com/investors. Upon conclusion of the call, the webcast replay will be accessible via Huntsman’s website.