Huntsman Corp. has reported its fourth-quarter 2022 results. The company reports fourth-quarter revenues of $1,650 million, a net loss of $91 million, an adjusted net income of $8 million, and an adjusted EBITDA of $87 million.

“In 2022 we delivered almost $1.2 billion of adjusted EBITDA and free cash flow of over $600 million,” said Peter R. Huntsman, chairman, president, and CEO. “We increased our dividend and in total returned approximately $1.2 billion to shareholders. We made great progress in our cost reduction programs to offset historically high inflation and energy costs and strengthen our core businesses. We also announced the agreement to sell our textile effects business, which we expect to be completed at the end of this month.”

Polyurethanes

The decrease in revenues in the polyurethane segment (compared to the same period of 2021) was reportedly due to lower sales volumes and the negative impact of weaker major international currencies against the U.S. dollar, partially offset by higher MDI local prices. Sales volumes decreased primarily due to lower demand, particularly in European and American regions. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, lower MDI margins, the negative impact of weaker major international currencies against the U.S. dollar, and lower equity earnings from the company’s minority-owned joint venture in China, partially offset by lower fixed costs.

Performance Products

The decrease in revenues in the performance products (compared to the same period of 2021) was reportedly due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased due primarily to lower demand for certain products. Average selling prices increased primarily due to commercial excellence programs and in response to an increase in raw material costs. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes.

Advanced Materials

The decrease in revenues in the advanced materials segment (compared to the same period of 2021) was reportedly due to lower sales volumes, partially offset by higher average selling prices. Sales volumes decreased primarily due to deselection of lower margin business and lower customer demand in industrial markets, partially offset by higher demand in the aerospace market. Average selling prices increased largely in response to higher raw material, energy, and logistics costs, as well as improved sales mix. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes, partially offset by higher sales prices and improved sales mix.

"Turning to 2023, we are optimistic that destocking will end in the first part of 2023 and fundamentals in our businesses will begin to modestly improve as we move through the year, but visibility into the second half is still low. We are seeing some green shoots in areas like China, automotive, and aerospace, but construction demand globally is still under pressure. Regardless of how much demand improves through the year, we will remain focused on delivering our previously announced cost reduction programs, returning cash to shareholders, and looking for strategic investments to improve our core business while maintaining a strong balance sheet. We look forward to updating you of our progress as we move through 2023," said Huntsman.

For more information, visit: https://www.huntsman.com/.