VNTR - Venator Materials swings to sharp Q4 loss undertakes strategic review

Venator Materials ( NYSE: VNTR ) -4.5% pre-market Tuesday after swinging to a Q4 adjusted loss and saying the macroeconomic environment "deteriorated sharply" in the second half of 2022, leading to significantly lower product demand and higher raw material and energy costs.

Venator ( VNTR ) said it is undertaking an in-depth strategic review of the company to improve operations.

Q4 net loss totaled $228M, or $2.11/share, compared to net income of $14M, or $0.13/share, in the year-earlier quarter, and Q4 adjusted EBITDA swung to negative $57M from positive $40M in the prior-year period.

Venator ( VNTR ) said it expects Q1 2023 adjusted EBITDA to come in "meaningfully lower" than Q4 2022, as higher sales volumes are expected to be more than offset by lower selling prices and higher cost of goods sold.

"We are taking steps to manage cash while continuing to improve our overall operations and expect to complete the sale of our iron oxide business to Cathay Industries by the end of the first quarter," President and CEO Simon Turner said.

The company said it continues to operate the Scarlino TiO2 facility at one third of its 80K-ton nameplate capacity to reduce the rate at which the remaining gypsum capacity is consumed, and may permanently close the site if it does not approvals for additional gypsum storage capacity by the end of Q1.

The 50K-ton Duisburg TiO2 facility has been hurt by higher inflationary costs resulting in unsustainably low TiO2 contribution margins, and the company is in the process of shutting down the site.

Venator Materials ( VNTR ) shares have gained 8% so far this year but lost 72% during the past 12 months.

For further details see: