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Huntsman Posts Net Loss for Fourth Quarter of 2023

Huntsman Corp. recently reported fourth-quarter 2023 results with revenues of $1,403 million. The company saw a net loss attributable to Huntsman of $71 million, adjusted net loss attributable to Huntsman of $36 million, and adjusted EBITDA of $44 million. 

Peter R. Huntsman, chairman, president, and CEO, said, “In early 2024 we have seen a moderate improvement from the lows experienced in the fourth quarter 2023, and while we are yet to see a clear inflexion point in demand, we remain positive about the future. We are well positioned to benefit significantly from volume leverage once our end markets improve and as we continue to control our cost base. While the exact timing of a recovery remains uncertain, we are confident that construction spending and industrial activity in our core markets will return to past cycle averages and the world will continue to value energy efficiency and light weighting which impacts two-thirds of our total sales.

“The portfolio changes we have made over the past several years have placed Huntsman in a position to withstand one of the toughest demand environments we have seen in well over a decade. The financial strength of our Company remains our priority as we consider both internal and external investments as well as returning cash to shareholders through our dividend and buybacks.” 

Segment Analysis 

The decrease in revenues in the company’s Polyurethanes segment for the three months ended December 31, 2023, compared to the same period of 2022 was primarily due to lower MDI average selling prices and lower sales volumes combined with an adverse sales mix. MDI average selling prices decreased due to less favorable supply and demand dynamics. Sales volumes decreased primarily due to an unplanned outage impact in the company’s Rotterdam facility. The decrease in segment adjusted EBITDA was primarily due to lower MDI margins.

The decrease in revenues in Huntsman’s Performance Products segment for the three months ended December 31, 2023, compared to the same period of 2022 was primarily due to lower average selling prices. Sales volumes decreased slightly primarily due to slow construction activity and weak demand in fuel and lubes and other industrial markets. The decrease in segment adjusted EBITDA was primarily due to lower margins.

In Huntsman’s Advanced Materials segment, the decrease in revenues for the three months ended December 31, 2023, compared to the same period of 2022 was primarily due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to reduced customer demand in the company’s industrial and commodity markets. Selling prices decreased in response to lower raw material costs. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes.

For the three months ended December 31, 2023, adjusted EBITDA from Corporate and other was a loss of $35 million as compared to a loss of $52 million for the same period of 2022 due to a decrease in corporate overhead and minority interest expense.

Learn more about Huntsman at www.huntsman.com

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