IOSP Innospec

David Jones General Counsel, Chief Compliance Officer, Corporate Secretary
Patrick Williams President, Chief Executive Officer
Ian Cleminson Executive Vice President, Chief Financial Officer
Jon Tanwanteng CJS Securities
David Silver C.L. King
Chris Shaw Monness, Crespi
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to today's Innospec's third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. I must advise you that this conference is being recorded today. the to hand Mr. speaker now would conference your over today, I Jones, Counsel. David General ahead, Please sir go

David Jones

you. Thank our least for Innospec's its and being the to will Welcome The six presentation recorded. call call. quarter. on the Yesterday, months. is are Today's be posted we company's release available at reported earnings financial on for third results and quarter site earnings site the

clarifying and events. other differ These government make forward-looking in are statements, are long-term with statements forward-looking implied the Ian A on in During other about and Patrick. have expectations Innospec's Williams, that, the contained today Innospec filings to risks results. the with call, by you, the Chief understanding of and which the on included the impact, measures and authorities of In future manner reconciliation are is measures. Chief and uncertainties. detailed further to to Cleminson, these other the current release, pandemic precipitate Patrick are we in also Also cause to it SEC. XX-K, in could will SEC company's on a available comparable These Executive Vice materially risks statements. this with to our that its additional most that it statements in and XX-Q impact economic financial uncertainties the and These for address non-GAAP earnings to these They actual or over and And the Financial site measures documents. subject included the statements the Innospec's may assumptions, or risks, risks and and are see predictions, are a discussion based President by effects financial which pandemic, results Please Officer will addition from and Officer. items assumptions I events exacerbate COVID-XX involve is aid Executive duration, investors other Innospec's projections turn us President from and and the site uncertainties of as including which results financial have today, performance we our number to taken GAAP anticipated site. uncertainties its copy items directly

Patrick Williams

you XXXX conference David Innospec's quarter Thank welcome everyone and third to call.

remain cash strong over I year pleased our report all we to to of delivered in all Board the am our growth and to maintain very set quarter. profitability, improvement a for quarter chemicals of the decided bank returning XXXX. at with focused on us flow businesses the results the year was pre-COVID full our to external Performance second $X.XX, allowed results the same and has am strong $X.XX income I period in solid Operating XXXX. half repay to second for As also bringing of dividend over the operating very pleased another debt XX% our dividend our this up in

pipeline of a technology are consumer Our which for positive preferences new and products sustainable. mild by chemicals natural, was by performance outlook driven the environmentally supported for increasing more

customers as continued limitations on such new requirements, also meeting support in to We regulatory our X,X-Dioxane.

continue somewhat additives Gross recovery over third a recover our grew the focused In and fuel XXXX. although of expanding growing Middle global to drag has of demand margins production back chemicals was but wells began In reducing chemicals $XX.X in sales the QX, projected, to in as drove quarter As and QX and online this production income demand agents for slower our by expected XXXX. quarter. to oilfield to returned we throughout been second on came million fuel services, strategy in increased specialties, remained quarter, which sales fuel remain anticipated. U.S. economic second will the shutdowns, operating the towards move sales levels expect increased that wave DRA by by and shut-in activity low, COVID-induced range Barring than we our reduce East. offset XXXX into and previously cyclicality completion

Our oilfield done levels as base have of their good expectation job our in team restructuring retained portion these is a savings cost they will a activity and significant recover.

some results will to we take After that, turn over review more financial will the will return call our Then in Now, questions. will Ian your with who Cleminson, concluding I detail. I comments.

Ian Cleminson

Patrick. Thanks

from presentation. decrease strong Turning $XXX.X fuel X.X a in million, last gross year compared last in the points due the were total percentage ago. prior year million, year. $XX.X $XXX.X for million eight quarter third the XX.X% specialties. a EBITDA The decreased from to quarter company's year million slide was a overall to comparative to The for to XX% $XX.X revenues margin

$X.XX. was including special of quarter per per GAAP special earnings we by net from earnings $X.XX, $X.XX, $X.XX. of included share which A which GAAP share ago, year an third Our impact earnings items, of decreased items our adverse reported the effect

adjusted year a both significant over the improvement EPS $X.XX which quarter compared loss of ago XXXX. items was second for to in of was years, our the special quarter $X.XX Excluding in the $X.XX a

from specialties although with from volumes, fuel on a mix XX% of XX% combined price Moving down over X%. percentage the to the point. adverse range low by our second quarter margins nine. resulted million, points income year, an slide the they of compared to $XX.X by million in XX.X%, year. third ago. improve $XXX were quarter last Revenues at Gross were X.X expected third in versus improved $XX.X comparative year this quarter down were driven within This in to million reduction of a in sequential basis, $XX.X operating quarter quarter On demand million second a quarter. operating strong in its income Fuel began

and X% price Revenues XX. for million, ago up of performance volumes income operating points and XX.X% an impact adverse $XX.X was margins currency percentage impressive to X.X $XX.X slide positive quarter of of third year up the were third in a the and higher million. $XXX X% from up X%. to XX% chemicals a were quarter Turning in X% mix million with of Gross XXXX

results Moving Oilfield XX. $XX.X quarter EBITDA year, of four. points year business over to track onshore activity last and revenues the a services million remains an of the U.S. $X.X Gross quarter XX.X%. $X.X period sequential benefiting the income ago. reduction year million were million were on compared down operating operating the to in by initiatives XX% in basis, second quarter on on reflecting same this the margins the to of quarter by cost On Operating percentage from market. customer improved by to reduction in million for of down achieve breakeven losses X.X $XX slightly slide

quarter tax million the compared were was similar and tax slide XX. within are rate proportion adjusted last to being range, slightly higher $XX our in quarter recorded million The greater broadly now to for expected XX.X%, Corporate of to our earned for increased Turning ago. the effective a the and a year $XX.X jurisdictions. costs profits XX.X% year as

year of at in and cash as $X.X in September million. cash Moving compared on at bank resulting operating to $XX.X by we debt of equivalents was repaid our lease debt slide cash $XX finance again and and million XX, XX. all $XX a quarter quarter, Net cash million, once In million, Innospec the $XX.X ago. a external the activities to position provided excellent has XXXX, million in net

continue a headroom. back substantial some As I over comments. liquidity we result, turn to will for to the now have And Patrick call final

Patrick Williams

Thanks Ian.

impacted results quarter. the from Innospec has COVID started show second Our that the recovery

continued for such that advanced a as lingers and We chemicals trends that demand are product global are lines. growth which secular strong a and technologically are delay could second by sulfate-free prospects uncertainty for economic products The supported driving mindful consumer of performance pandemic our in wave regulatory recovery.

third into with Again, demand per has We QX levels organic XXXX. specialties are brings businesses in share, and complement the year continue improve our position, opportunities our the $X.XX. key services am our that a to full strategic and strong fuel which will We which maintain semiannual enables to exit cash acquisition dividend our pleased through to that point cautiously to and projects I oilfield very us $X.XX optimistic activity at growth business. net potential decided dividend Board quarter and

and the Now and I call to will your I questions. take Ian will operator turn the


Instructions]. [Operator

Tanwanteng question first line Securities. CJS from comes the Jon Please of from ask Our your question.

line now Your is open.

Jon Tanwanteng

comes this maybe holding. back I But QX. just a that starts of you pretty wondering, percentage of picture to towards trend this sequential my And trend big that back taking gentlemen. lot normal? mentioned job for margin really there. questions. you Good that kind you Hi. the And of expect wondering was could give thank if OpEx you was of as Earlier how into on Patrick, what nice decline. morning was business I to us actually a there

Patrick Williams

will why add and Sure. don't pick up you to I it. Ian, this then

Ian Cleminson

focus you which Sure. in o Jon, talking businesses you want on are want any go oilfield you to Or or segment through? particular? do do

Jon Tanwanteng

can that. first then maybe on consolidated do after We basis and oilfield

Ian Cleminson


the So some taken in out aware, quarter. costs. as in overhead oilfield the second of are initiatives $XX businesses, we cost That's you roundabout took million

and that expect within QX We stay gain XXXX. will into

So we don't expect anymore overhead to in. add to actually have

topline the leverage straight will So get through. we any drop off

more issues -- don't we expect So

Jon Tanwanteng

That's quarterly, right?

Ian Cleminson

That's quarterly, yes.

wind, The get we EBITDA for income improve maybe as may even, that that. is We can well. expect So get operating aim think We over inevitably following QX. we a QX breakeven will have neutral. to even to with

on the list. target So that's next the

hopeful breakeven that in can we to are position see growth are business get that EBITDA our hopeful and oilfield. breakeven operating income And So that some well. as will we we maybe

Jon Tanwanteng

operating then And expenses? the consolidated on Okay.

Ian Cleminson


range are In where probably range some terms would the low-XXs quarter in a be final and you Jon, am in we we you that got I were there, have of so just truing to to OpEx, do. year, similar last QX to number. high-XXs up giving broadly it's the going not I say because that to

the million from million range. $XX range anything So think we hope low probably about think would is calling to and at broad of that I a I $XX it end to

Jon Tanwanteng

you give and maybe any QX trended actually through or most into the to Okay. Great. some of demand helpful. the maybe guess head October of and and kind us of you progression maybe That's saw QX. improvement as third going back just how where the then into I weakness? on you quarter the And topline, business Can

Patrick Williams


if at, think segment. will we I business take look by it you

starting demand off we it's If seen to at very going it's improve definitely Jon. have services, you But be a interesting, and QX oilfield low to in obviously. look

see pan out. how We prices will oil

business were and If DRA Middle what and obvious issue. services supply with you come see that see increase specialties, have back. causes who nobody you we than East, come And that's will again going a a wants there, a cyclicality due of COVID out were and business have where right the QX.But back it to pandemic to countries that see seeing second started want It's it oilfield in faster wave. of are everything work we to how to kind we for we some that we quite demand it saw of us definitely we the in demand obviously In segment. right supply is go strictly lot We Because back see into and now. demand but demand is back and to now fuel not coming quickly does. have could back

us that So as seen because demand carrying of in and pretty well, we in base increase back, overall, have little cost over concern. give well from our have we bit has QX. QX fuel set come nice a a specialties really But

have been just done there. business. positive it's So chemicals, strong a guys great that throughout. job performance The in In

We have technology. great got

well very demand QX good we going as in are the performance into are placed. chemicals We seeing And well.

Jon Tanwanteng

with cash Thank job great just for Last did me, you Great. flow. the a one you.

are term? deploy going keep paid on to to you the plans the balance there Or to [indiscernible]? You are going on in to sheet. it that I near down you putting Are debt. assume hold that

Patrick Williams

are of onto we some to paying what going do hold organic these I multiple we because growth first, Obviously, to it. think, we through lines. care unknown want of is take not times, are

most is conservative bet in best our growth. So

growth. organic we for keep So will

think good likelihood next year appropriate We the of starting there dividend. pay are we are And the us. then, again a look that's us increasing a makes for going and dividend strategy buybacks I because multiples in sheet. we to balance build that and And continue if out a business. for of into looking hope But more our strong looking to appropriate. that will at We start down into will to importantly, acquisitions territory come our it's our upon lot complement and a that to they time are at sense when

tell it, it's carryover I that look at are you So we think we pretty the on guys every if much look. a you But quarter.

said Let's growth our dividend, organic I acquisition increase obviously and first growth at start we and potentially buybacks. as look then put, then with and will

Jon Tanwanteng

will jump you it. Thank in Patrick. queue. Got I back

Patrick Williams

Thank you.


you. Thank

Our ask David of next Please question question. line King. comes your from from Silver the C.L.

is now line Your open.

David Silver

a Yes. Hi. questions. Good morning. couple I had of

I let's start maybe the with into of I mind, kind for but with, just you start to segment the performance think don't chemicals. see, And let's let quarter. go want results me if

usually revenue source in cited? to you. make pass-throughs that of the I guess performance just trends wondering, in maybe reference the you that So affected just a effect I discuss was price mix maybe you maybe Could the discuss the discuss segment, you comparison. you Thank that revenue year-over-year the when cost and chemicals

Patrick Williams


what range saw So a in David, that what volume. would call X% expect. is of we the That's increase said, on the we probably of we midpoint the

X% negative mix. price product saw a We and also

most Now, at is than are the is got due of I is material that have materials. what important seeing that that year. last moment lower prices to we think raw had we it raw we And

that's on So pressure putting our actually revenues.

We passing the are materials. higher positive not exchange then we a amount had And X% of rates. from uplift through raw

And in X% the that are lot we here, would prices, saw volume. the line revenues. hitting absolutely that raw is on material without we a mid single overall, important increase that then a revenue thing pressure pushed have So the up more. David, But digits

David Silver


raw So the material pass-through. that bulk X% of is

Patrick Williams

of Pretty it, much yes. all David,

David Silver

where it or think And you that item of be would that fuel that specialties negative like so be, would apply take and of take to was there if causation? price a effects I to I mix cited that element Yes. behavior similar X%, or kind similar

Patrick Williams

in fuel different Slightly specialties, David.

things very highlighted year. this time the quarter was that of from was that products. comparative strong aviation last a we One earlier was our there And

some a So chemicals. pronounced raw is but in there stronger not But elements mix as there as is materials, that. performance

David Silver

on significant. just And segment. And should specialties aviation quite estimation, Within into fuel referenced. building element fuel just positively be it's goes the by mean specialties, within portion was that. And the Yes. frankly should is significantly, surprised I that you My is understanding in that performance markets my that down. what I

guess and did out if the within I volume-wise was decline elements mean, to let's about that other the XX%? great? the maybe much aviation, just talk you. could you aviation would volume to, at how say, business other diesel we And allocated be key specialties how you side? So the of truck relative markets call would I end fuel any might Thank say

Ian Cleminson

sure top. Let have the me take that some over and then I from will Patrick am comments

first. So I the piece will cover aviation

jet So jet as they are relatively demand. have additives in but a to global impacted you the our been due sales mix said, of fuel drop portion fuel small

being resilience crop into Our AvTel more market. from aviation not into are sales and because been have includes they however And go end-markets aircraft, general the the and so that avgas less personal [indiscernible] impacted. dusting

seen off in we that avgas fuel, have not sales. So have off a much least as the although in we jet the seen drop at drop

the time year. say, additives probably normally I demand, we is top XX% that's of would would the it. So what diesel to of XX% on anywhere the that between at expect of this side

have when an over all QX, actually where doubts, We those we actually seen stopped. no improvement demand saw

So not would to be, getting close like we David, but are we that. we back to are to where

is the floor about set now. think you if to right diesel through XX% fuel XX% about but additives jet round So the

David Silver

certainly. Yes,

I might new little a then to M&A strategic have be something Okay. this quarter, Patrick. the opportunities Thank you I for the about consistently there. to or second for you additional really on think wanted for bigger. element Patrick, comment color your for But question And a wave. potential talked a the shift maybe bolt-on

done. is practicalities this of a like get of question trying the M&A to more So

targets want So their in wanting to hence may pull it motivated not sometimes get the little look some not some disruption what a as potential viewed maybe and for unsettled, their induce when markets to strategic M&A. at opportunities of at what's there bit, base be they bottom then, But to and companies reins sell market want the asset seller. wave, when second a differently like potential a a prioritize kind and is or to the to

does this concerns? might as they Or where the a targets is willing people perspective, up tends wave opportunities or valuation or to experience, put from make of from themselves that position So selling or to meet other up viewed be in as don't sellers of motivated is potential more pandemic, your the as your that second it a of want does kind to where far loosen aspects deal the you market for bottom. dry at kind halfway because

M&A. about talked have you So

line Just would Thank finish be the of practicalities environment great. getting current you. the the across in

Patrick Williams


lot think, know, very the remain as way. we of go with a in we looking think I little wave lot of against harder assets are their watched M&A hit covenant through first and conservative up started a COVID up bank you belts a companies of tighter, as approach you bucking I a that and you their companies really And our at too. buckle really start that and little

is and a so always world, from I has when to driven have like of look always changed do going to of for hasn't financial second changed. their you for the past keep, parts sheet. all markets want balance cash other being pandemic. And is up what the down And of the to for do and think though, storms models us, hasn't are are a European What such lot down market as we But We the on which sheets. way. had how markets we opportunistic. the for a to balance portfolio we at But but of very the at. looking stubborn we us, that and buttoned our the will be the companies states we by a saying, on in them. seen that? And back different inside very, in lot of and base acquire countries aspect ability we And a wave the to look well, to not we get need And what it business look companies what at that out some We bank get compression. start and you think the at way fit look we acquire. the market? done sheet could made into say, hit we us, look financially down weather at we by strong for some covenants, pandemic what really really And in we you have market, remain to what have And we that looking balance should said send run has have it flows need a multiple to U.S. us, I of we I could it's against can this. think multiple obviously should still some consider I it's sell that this things reasons, if

seen businesses we balance to cheapest be is that's is probably opportunistic some think do there my and that and dividend, our But very ready because before. on. that, our we businesses are I secure have that growth that nothing importantly, along time comments deals had But growth. still trigger the more ours dividend. a we I of said your for to sheet organic that great the we there have your that's more up with say, as that at. has we pull in would paying we funding sale have to our complementary right most had are yet when is will looking in that now lot ever there I out increasing earlier your And interest we cheapest, than comes

are we going so stay disciplined. And to

it have that opportunities. what seen really We Even a wave, we much though changed yet. got you second have from have hasn't

from haven't wave. first but cautious, anything we are seen the we change Now

David Silver

I behind there the you make want one me. end. Thank question, but should that. I Okay. call I least think one that is for know queue. in at back Otherwise sure have do to other get you questioner other I just may

and there So is the queue. any ideas, happy another to I caller back am then get in


Yes, sir.

another have question queuing yours. We after

David Silver

queue. will I in you. Thank get Thank you. Okay.


Thank you. problem. No

your next Your Shaw question. the of question Please Chris from Monness, Crespi. ask from comes line

is open. line Your now

Chris Shaw

Yes. Hi. doing? you How Good are morning everyone.

Patrick Williams

Good morning.

Ian Cleminson

Doing good.

Patrick Williams

are how Chris, you?

Chris Shaw


happened cost they folded First fuel Did quarter? you specialty the additives into business. to for the question, maybe what mentioned about get this octane

Patrick Williams

We as you charge. Chris, quarter, the the know, restructuring So we the cessation have of took in business. second a additives octane

So business of all future that operating that are wrapped in up now division. costs

income associated octane the that's statement. is environment corporate the year. So about basically is is which million impacts. And charge, with small a of But costs. income That we There statement statement. income will hit a depreciation through how don't provision. that's any expect other future still charge comes accretion our $X that, outside in the shown that there But no on costs

Chris Shaw

running business the specialties then, costs is got as But Great. fuel it right? the still folded in

Patrick Williams

the Yes. sector. as That's produce for of part still now fuel aviation has it always We octane specialties been.

Chris Shaw

yes. So

then means all. are for just East remind much total? pretty know in good the you approximately oilfield were now outside making that margins fuel is how the how in North of But me, progress Good Middle I America? job much you and of the business in there. Could specialties. So

Patrick Williams

small. pretty still It's Yes.

would say, South in the business XX%. it's business have areas of East world, China. we But Middle others in got I and have We America some and probably

Chris Shaw

already, Okay. term hit like on down question. Great. term long a with longer And things of pile to this is stories. makeup of people kind and more getting are are broader, obviously then a negative businesses sometimes When

growth going GDP and you than saying in do geographic are expansion. know oilfield shortly it more has of to at think? to of the fuel like transportation rates thought. specialties is are trying what's is even a as on people mean services. oilfield am a term, we to I and happen, basis are specialties to perhaps lot little exposed But growing fuel that not and previously but than you fuel some guess a cars more going obviously that above? demand seems say I run How aggressive people transportation product gong mature. lot or over I longer also expansion So moving lower think see GDP demand that to I exactly if you electric still to very on How that's be or do fuel a

impact that? guys would chemicals are know response the thinking demand. obviously How a longer about business I you bit that So of obviously all performance term. a to that is

me So what can, just tell are? thoughts I what or your you guess,

Patrick Williams


look think the are I you going period longer at specialties, short little not fuel EVs out. if to of affect for demand whatsoever a That's time.

Chris Shaw


Patrick Williams

What's demand strictly affecting COVID is now. right

have see as QX, knows so time, Who from in to into And we get see that happen But were to increase were see we we increase the to we like QX over to back pandemic QX. do you going what's XXXX. the demand over levels I will control see they demand are now. starting think, this going starting increase, come

light it's plus. And still, for thing think the conversion great a that business it's and very GDP good one asset So about remains is good. rate the I got as is us, it and margins

it's a the off demand it with So pandemic. the going And in. great issue. to Again, supply markets business with is be what's on based strictly

that back it business think But again, they take to levels. and time. going a remain will XXXX just I to strong come So some will It's way. it's

obviously have, have that's looking we in And performance now all the think you I of place. that runway the have we we technology technology based an right organic area a an because of big off look growth standpoint. acquisitive from if chemicals, that are we all there at

there base performance strong So in chemicals.

DRA you back. at If oilfield, you basically things and East. Middle come will look it's And see

come starting in wells back see market. U.S. the We online are to

bit. bit as well. to a little The starting a see increased drilling We come little are back rigs

three And but so Middle like the more, before, are the quarters, cyclicality to portfolio in we stated of that we are are I see out say, adding DRA, back well in and improvement, as the East. demand a of doing come be are bigger overall we we And take and should as going in see the volume expansion think starting you the U.S. to business, in speak the is which more in the chemicals. have our we oilfield as four we both to being going to see next lot markets a you done as over oilfield for I those or growth

Chris Shaw

Great. Thanks guys.

Patrick Williams

welcome. are You


Thank you.

question. of Your next line question CJS your comes Securities. Jon Tanwanteng from from ask the Please

Your now open. is line

Jon Tanwanteng

guys. Hi

mentioned Just when quick number Patrick, right to understand now, I do you are to wondering a And things I couple was returning expect one. XXXX twice levels. murky follow-ups. you that hitting? of number that two, new stuff volumes old demand or on that's reengaging to your how that's expectations perhaps is of just much or are? that opposed old maybe whether as actually what And coming GDI and IMO be DRA?

Patrick Williams

focus. to of IMO fact and at due a GDI anybody been Sure. just pandemic and of been standstill, have kind the the as well its' really not

Jon, the are again, start control it going that think to back this on all to pick travel. when up. and think you back again, it But I letting of some second wave. of GDI XXXX start again to When But people depends are you going I get the XXXX, and come see And of levels. get will up that's seeing and back IMO and some type to should out levels. start in going XXXX when will time

it's So get to we interesting to going watch, suspect we expect that to be we levels. and XXXX but will

Jon Tanwanteng

the were stuff and given savings, changes puts levels these other Or your And your be structurally, mix there that to around? in they cost earnings and those going as takes at same are XXXX? will

Patrick Williams

light a at XXXX seen. looking are correct. get haven't are big remains commercial we for would that term at that's crude say, Again, we something Right and yes, fuels. that the we we technology I near talked right now are which to we I get back are about fuels have looking And And in we heavy here we hopefully, the if to be to is will and with fuels. into crude DRA think business. thing levels, looking into in the now, that just other for

Jon Tanwanteng

you. Got Patrick. Thank helpful, it. That's


[Operator Instructions].

Silver the line King. comes of Please sir. question next ahead, David Your C.L. from from go

David Silver

I for that advance big have couple in you warn a just will kind I questions Thanks. of Okay. you. picture of

just the But estimate the the Thanks only as accuracy for the mean, a worse was it's morning preface, presidential than okay. that election. and pollsters the my people laughing. current of of earnings of prediction next So on for that election on my thinking leadership probably I after future of one about candidates, might now is the turn opinions while the feel how years four the both fracking, candidates and differing was this

But emerges, to very on who your It's Who is there going you two race. two exploration candidates. might from here. have tight very in United So the different to happen what's Patrick, knows depending perspectives, in a States. rooms approaches oil back the

perspective, I forward? it's that early, services paid And a how I you think out your bit to the or mean, but Thank practical mean, turn I horizon of corners. in based the whatnot, And activity oilfield you look are might drilling very and do are So over of range your kind around know on thinking look I affect going the you how what possibilities you. couple for get terms, the politically? about days from domestic that? mean how next activities

Patrick Williams

that the got business to question. always only U.S. that Good When Yes. have the to and way have of do take is you you expand cyclicality out look to outside it. this And we at said

or driven we developed Mexico, that's we and why that's And that's into so South why we it are us, went which Middle was strategically own America, politically our that it are why DRA. was into whether driven, East into for we

what take federal on into way that's out and starts strategically for to also fight and the to it's says fracking off the whichever it So gets on comes a in President office, back he on cutting land. Biden if us, way

federal years lot If already have the in three the a probably in, have of been land. permitting been I lands would say, of at federal to two for permits bases, grandfathered grandfathered look you

it awfully So for can negatively difficult would it be it, they it's to business. before this take effects but years stop going them,

permit will land their You to land people federal private After have drill a on they land land. federal federal on they and gravitate. that will on just go off move not lot of that's land, of

think to affect don't I So it's negatively se. per us, going

on backtracked set not we diversified we it should business I which to that to is two office. affect that gets don't for and make least I And portfolio. at overall, done. he But fracking going you three can, this if still he in If well have what think think, years, completely says the he that's to, not we up have Biden ban sure are

David Silver

Okay. on to have and I The And a mandates how Thank traction apologize if of IMO you one. be did bore want us I one that question development smaller part XXXX your could know bigger additives I whether but is bore missed your you. portfolio would I quick that then this, the maybe and market, one for again just product much update and fuel getting? new of give a solutions smaller

Patrick Williams

every it's But issues. by, gaining but traction, as it's getting small. definitely It's Yes. month have they goes

typically fuel whenever have And it. issue, additive cures an you is so what

So it's a small part now. of our business

We take haven't just is some big sales, we going It seen take to increase to the going it's time. It's in time. like anticipate. there, just

David Silver

big kind of kind of again, final And the question, another question. ESG, it Great. Okay. do is of issue to then softer picture okay. with has kind And

TEL difference Board tetraethyl become the in point opposed things, avgas focus give mean, safety some alone. your sale benefits making of from that many the are know does health XXX% this those tetraethyl a reached that noticed I types you? where And to on that of or or more it XXX% I it consider development. benefits. automobiles a that environmental and you kind are lead think in business? is and level. think, was from from have a it's any, personally, now of thing final automotive investment ESG now way? any with just the except me of from there the corporate including on maybe of inflection at the to of just the us don't you for And TEL But you I to has I world companies, to to going either have. different socially you just major transition corporate the standing world you investors Can regulatory two side, that side, or does an conscious my business sense TEL funds requirement are as might as of adding What if out of uses? the number is for now there, increasing is but a other issues the nice And for out on lead quarter business, it So a a many allow make of cite And Does of a I out are pure founded Innospec and ago, automotive of out give you responsibility, company

Patrick Williams

it then Sure. talk award will et pick got about EcoVadis, cetera. and from don't Ian, the gold up we why you I

Ian Cleminson


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improve a lot we it So it related, efficiency the what do helps green, environment. of is is

have would it look awful you And you I into dig an than go lot. encourage do we to to with happy would deeper, that and that you. if would more So be to a we like do report.

Patrick Williams

gold add year think from this for more overall last EcoVadis, And year. it Yes. than to have this an too, we much saying, stringent to was you to at just was perspective that is got have again I what got Ian is look which the is

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and to So definitely importantly high it is investors. everybody more on

And responsibility really ESG market. this it's whole on so driving sustainability really just whole driving it's whole market be this focused the and and us, not to

David Silver

I appreciate Great. very Thanks much. that. Okay.

Patrick Williams

problem. No


you. Thank

questions. go Williams, please ahead. further no have We Patrick

Patrick Williams

all you today Thank and and to joining for your customers shareholders, thanks employees for support. Innospec all our and interest

XXXX February. us please look have you further We to questions discuss up a forward again you with If about any a in give QX to great day. discussed call. matters Innospec meeting results or today, Have our


that Ladies gentlemen, conclude for participating. Thank conference for does and your today. you

You you. now Thank all disconnect. may