LONDON (ICIS)–Venator narrowed its third-quarter net loss to $19m, from $368m in Q3 2018 when the UK-based titanium dioxide (TiO2) company reported a big charge for a plant closure in Finland.
KEY POINTS
– In its core TiO2 business, sales rose 2%. TiO2 sales volumes rose 12% while prices fell 7%, Venator said in a filing on Wednesday.
– The TiO2 segment’s Q3 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 32% due to lower TiO2 margins driven by the lower average TiO2 selling price, higher raw material costs and unfavourable fixed cost absorption related to planned maintenance.
– Sequentially, TiO2 pricing held stable from Q2.
– The company has hired a financial advisor to explore a potential sale of its colour pigments business.
Venator, Q3:
| (in million US$) | Q3 2019 | Q3 2018 |
| Revenue | 526 | 533 |
| Adjusted EBITDA | 50 | 77 |
| Net loss | (19) | (368) |
| TiO2 revenue | 396 | 389 |
| TiO2 adjusted EBITDA | 51 | 75 |
CEO COMMENT:
“Notwithstanding macroeconomic challenges, we generated $50m of adjusted EBITDA in the third quarter of 2019,” said CEO Simon Turner.
“Our titanium dioxide business delivered stable sequential TiO2 pricing, consistent with our tailored approach to individual customer requirements, which reduces overall price volatility”, Turner said.