MOSCOW (MRC) -- Venator (Wynard, UK) reports a third-quarter net loss of USD42 million, down from a loss of USD19 million in the year-ago quarter on lower volumes and utilization. Revenue totaled USD474 million, down 10% year-over-year (YOY) from USD526 million, said Chemweek.
Adjusted earnings per share came to a 17-cent loss, down from profit of 8 cents in the year-ago period and short of the average analyst estimate of a 12-cent loss as compiled by Refinitiv (New York). "I am pleased by the gradual recovery in demand for most of our products,” says Simon Turner, president and CEO. “We saw broad improvement in sales volumes resulting in an increase of 3% compared to the second quarter, notwithstanding a seasonally weaker third quarter and the impact of Hurricane Laura on our TiO2 [titanium dioxide] joint venture facility in Louisiana. Notably, our color pigments and timber treatment businesses continue to demonstrate resilience during the current challenging macro-economic environment."
Venator reported revenue of USD456 million for the second quarter and a net loss of USD19 million. TiO2 volumes increased 2% sequentially. "We continue to optimize our controllable cost structure and by year end will have completed the actions necessary to deliver the full benefits of our 2019 business improvement program," says Turner. "In addition, we implemented non-recurring COVID-19 related cost saving initiatives of approximately $30 million in 2020. We have also identified cost saving and operational improvements from which we expect to deliver annual savings greater than USD55 million in 2022 compared to 2019."
The titanium dioxide segment turned in sales of USD343 million, down 13% YOY. Venator attributes the result mainly to an 11% decline in TiO2 sales volumes across all product categories and regions, most notably in Europe on the impact of COVID-19, and in North America owing to the impact of Hurricane Laura. Adjusted EBITDA totaled $21 million, down 59% YOY, mainly on lower revenue as well as lower plant utilization, which resulted in higher production costs.
The performance additives segment had revenues of USD131 million, up 1% YOY as the benefits of local currency selling price, mix, and currency translation offset a 4% decrease in sales volumes. Volumes dropped on lower demand for functional additives, a consequence of the COVID-19 pandemic. Adjusted EBITDA totaled $5 million, down 62% YOY on lower plant utilization.
We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
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