Oxea Sarl reports strong Q2 results

Oxea Sarl, has announced second quarter net sales of €391.2M, an increase of 9% y-on-y. Continued recovery in the USA and European regions more than offset lower export sales to Asia and contributed to the strong set of results.
Operating profit at €46.6M was some 23% up y-on-y. Q2 2011 Adjusted EBITDA at €56.4M was some 19% up y-on-y. Adjusted EBITDA for the six months ended June 2011 amounted to €122.2M reflecting an increase of 49% y-on-y.
Strong cash generation allowed Oxea to exercise an option to redeem 5% of the Senior Secured Notes and make a payment to shareholders. After the refinancing in July 2010 net debt has reduced to around 2.0x Adjusted EBITDA on a last 12 months (LTM) basis. LTM Adjusted EBITDA now stands at €218M.
Sales for the three months ended June 30, were €391.2M, an increase of 9% y-on-y. Lower volumes were more than offset by improved product mix and the pass through of higher raw material costs in sales prices to customers. Overall, volumes were some 1.1% lower y-on-y. Oxo Intermediates volumes were some 2.8% lower y-on-y driven by production outages and lower Asian export volumes while volumes in Oxo Derivatives increased by some 4.9%. Of revenues for the three months ended June 30, €212.3M resulted from sales in Europe, €116.7M in North America and €62.2M in the rest of the world compared to €180.4M, €99.3M and €77.9M respectively y-on-y.
Gross profit for the three months ended June 30, 2011 amounted to €54.9M compared with €54.8M y-on-y. The impact of lower volumes was offset by lower manufacturing fixed costs.