Innospec Inc. reported a decline in net sales for the third quarter of 2024, totaling $443.4 million, down from $464.1 million in Q3 2023. For the nine months ending September 30, 2024, net sales also decreased to $1,378.6 million from $1,454.1 million in the same period last year. The company's gross profit for Q3 2024 was $124.1 million, a decrease from $137.2 million in Q3 2023, while gross profit for the nine months was $406.7 million, down from $435.4 million.
Despite the drop in sales and gross profit, Innospec achieved an increase in operating income for Q3 2024, which rose to $45.6 million from $41.9 million in Q3 2023. For the nine-month period, operating income increased to $136.8 million from $117.1 million. The company reported net income of $33.4 million for Q3 2024, down from $39.2 million in Q3 2023, but net income for the nine months rose to $106.0 million from $101.3 million.
The company’s earnings per share for Q3 2024 were $1.34, compared to $1.58 in Q3 2023, while for the nine months, earnings per share increased to $4.25 from $4.08. Total comprehensive income for Q3 2024 was $48.7 million, significantly higher than $31.0 million in Q3 2023.
In terms of strategic developments, Innospec completed the acquisition of QGP Química Geral S.A., which resulted in a $3.4 million increase in the fair value of net assets. The company also reported an increase in cash and cash equivalents to $303.8 million as of September 30, 2024, up from $203.7 million at the end of 2023. Total current assets rose to $965.6 million from $885.7 million.
Operating expenses for Q3 2024 decreased to $78.5 million from $95.3 million in Q3 2023, attributed to lower selling, general, and administrative expenses. The company noted a significant decrease in operating expenses for Oilfield Services, which fell to $25.2 million from $37.5 million year-over-year, driven by reduced customer service costs.
Innospec's Performance Chemicals segment showed resilience, with net sales for Q3 2024 increasing to $163.6 million from $145.2 million in Q3 2023. The segment's gross profit also improved, reaching $36.1 million compared to $30.3 million in the prior year. However, the Oilfield Services segment experienced a substantial decline in net sales, down 24% year-over-year, primarily due to reduced production chemical activity.
The company continues to manage its financial position effectively, with no debt outstanding under its $250 million revolving credit facility as of September 30, 2024.
About INNOSPEC INC.
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