MOSCOW (MRC) -- Tronox reports a second-quarter loss of USD4 million, up from a loss of USD55 million in the year-ago period. Revenue totaled USD578 million, down 27% year-over-year from USD791 million, reported Chemweek.
Adjusted earnings per share of 3 cents beat the average analyst estimate of 2 cents as compiled by Refinitiv (New York).
Including the contribution of Cristal, which was acquired in April 2019, pro forma net income in the year-ago period was USD32 million and revenue totaled USD827 million.
"Tronox delivered solid financial results in the quarter despite the significant reduction in demand and other challenges associated with the COVID-19 pandemic,” says Jeffry N. Quinn, chairman and CEO. “Our results were consistent with the outlook provided at the time of our first quarter earnings release. TiO2 volumes declined 19% quarter-over-quarter, and TiO2 pricing was sequentially flat. Zircon sales volumes and price were both up by 2% sequentially owing to shipment timing and favorable product mix.”
Adjusted EBITDA came to USD142 million, and the adjusted EBITDA margin was 25%.
"As we look to the third quarter, we are encouraged by the momentum carried forward from June, the strongest month of the second quarter. While the timing of re-opening of economies across the globe remains uncertain and subject to week-by-week developments, as of today, we anticipate TiO2 volumes to continue to improve in the third quarter relative to the second quarter and for the zircon market to remain relatively stable as compared to the last several quarters.”
As MRC informed before, in late March, 2020, Tronox Holdings provided an investor update in light of the current global pandemic, to emphasize the strength of the company's cash flow, balance sheet, and sources of liquidity. The first quarter was expected to close better than anticipated, due to positive market trends and developments thus far in 2020. The company anticipated adjusted EBITDA in the first quarter to reach USD160–170 million, adjusted earnings per share of USD0.10–0.18, and revenue of USD700–730 million.
We remind that Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. June production of polymers in primary form fell to 791,000 tonnes from 820,000 tonnes in May partially because of a scheduled shutdown for maintenance at ZapSibNeftekhim. Output of polymers in primary form totalled 4,900,000 tonnes over the stated period, up by 14.8% year on year.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC