AdvanSix Q2 profit rises on stronger sales, firm acetone pricing

LONDON (ICIS)–AdvanSix’s second-quarter net income increased by $6.2 million year on year, with sales rising by 6% over the same period, the US-based producer said on Friday.

(in thousands US$)	Q2 2024	Q2 2023
Sales	453,479	427,940
Net income	38,927	32,728
Adjusted EBITDA	78,141	65,785

KEY POINTS
– Adjusted EBITDA rose to $78.1 million, a $12.4 million increase, driven by stronger sales and firm acetone pricing.

– Operating cash flow surged 43% to $50.2 million due to higher net income and favorable changes in working capital.

– The performance, by an improved portfolio mix, reflected a 24% increase in earnings per share at $1.55.

AdvanSix achieved targeted utilization rates across its value chain, delivering strong earnings and cash flow while increasing capital expenditures by $14.2 million to $33.5 million for maintenance and enterprise programs.

OUTLOOK

• Higher ammonium sulphate (AS) pricing expected in Q3 2024, though typical seasonal declines are anticipated in the US and Canada.
• Modest improvement in North American nylon industry spreads expected through 2024.
• Capital expenditures for 2024 are expected to be $140 million-$150 million, focusing on risk mitigation and growth projects.
• Pre-tax income impact of planned plant turnarounds is expected to be $38 million-$43 million in 2024.