AdvanSix on Oct. 7 gave an update on its planned third-quarter turnaround and gave preliminary expected third-quarter 2022 financial results. The company expects third-quarter 2022 adjusted EBITDA to be in the range of $31-$34 million.
“During the planned multi-site plant turnaround in September, additional required maintenance at our Frankford phenol plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates at our Hopewell and Chesterfield sites, resulting in an incremental approximately $15 million unfavorable impact to pre-tax income inclusive of fixed cost absorption, higher maintenance expense and lost sales,” said Erin Kane, AdvanSix President and CEO. “Despite the unfavorable impact of the extended turnaround, cash generation remained robust in the quarter, enabling a previously announced 16% increase in our dividend payout, opportunistic share repurchases of approximately $13 million in the quarter, and further debt paydown.”
“While quarterly operational performance overall did not meet our expectations, I’m encouraged that our planned plant turnaround activities are now behind us, supporting future performance, and expect our facilities to operate at our typical high utilization rates for the remainder of the year,” Kane added. “Consistent with others in the industry, we are seeing signs of slowing growth in consumer durables and building and construction end markets.
“We have a proven track record of navigating through challenging macro conditions and continue to believe we are well positioned going forward. Our outlook for the fourth quarter remains favorable, with expected performance rebounding towards results demonstrated in the first and second quarters of this year, supported by our diverse product portfolio, advantage of our business model, and strong underlying agriculture and fertilizer industry fundamentals,” concluded Kane.
The company will issue its third-quarter 2022 financial results before the opening of the New York Stock Exchange on Friday, Nov. 4.