Tough fourth quarter impacts Huntsman’s 2022 results

Texas, US – Sales at Huntsman amounted to $8023m in 2022, up 4.6% on the previous year. However, adjusted EBITDA fell by 7.3%, from $1246m in 2021 to $1155m in 2022. Performance in the fourth quarter had a significant impact on the year’s overall figures, with the company making a net loss of $91m. This compares to a net income of $597m in the final quarter of 2021.

While sales in polyurethanes, the company’s largest business unit, were up very slightly from $5019m in 2021 to $5067 in 2022, adjusted EBITDA dropped sharply. The decline from 2021’s $879m to $628m in 2022 represents a fall of 29%.

In the fourth quarter of 2022, revenues for polyurethanes fell by 23% to $1071m, while EBITDA dropped from $218m to just $37m, a fall of 83%. The company attributed the drop in revenues to lower sales volumes and currency effects, which were partially offset by higher MDI prices. However, MDI margins were lower, which impacted EBITDA.

Peter Huntsman, the company’s chairman, president and CEO, said he is optimistic that destocking will end in the first part of 2023, with business improving as the year goes on. “Visibility into the second half is still low,” he said. “We are seeing some green shoots in areas like China, automotive, and aerospace, but construction demand globally is still under pressure.”

The company expects the sale of its textile effects division to Archroma will generate $540m after tax. The deal is expected to close at the end of February.