Innospec Inc. (NASDAQ:IOSP) Q2 2023 Earnings Conference Call August 9, 2023 10:00 AM ET

Company Participants

David Jones - General Counsel & Chief Compliance Officer

Patrick Williams - President & CEO

Ian Cleminson - EVP & CFO

Conference Call Participants

Michael Harrison - Seaport Research

David Silver - CL King & Associates

Operator

Good day, and thank you for standing by. Welcome to the Innospec's Second Quarter 2023 Earnings Release and Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advice that today's conference is being recorded.

I’d now like to hand the conference over to the speaker today, David Jones. Please go ahead.

David Jones

Thank you. Welcome to Innospec's second quarter earnings call. This is David Jones, and I'm Innospec's General Counsel and Chief Compliance Officer. The earnings release for the quarter and this presentation are posted on the company's website.

During this call, we will make forward-looking statements, which are predictions, projections and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from anticipated results implied by such forward-looking statements. The risks and uncertainties are detailed in Innospec's 8-K, 10-Qs and other filings with the SEC. Please see the SEC's site and Innospec's site for these and related documents.

In our discussions today, we've also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in the earnings release. The non-GAAP financial measures should not be considered as a substitute for or prior to those prepared in accordance with GAAP. They are included as additional items to aid investor understanding of the company's performance in addition to the impact of these items and events had on financial results. With me today from Innospec are Patrick Williams, President and Chief Executive Officer; and Ian Cleminson, Executive Vice President and Chief Financial Officer.

And with that, I'll turn it over to you Patrick.

Patrick Williams

Thank you, David, and welcome, everyone to Innospec's second quarter 2023 conference call. Overall, this was another good quarter for Innospec. Excellent results in Oilfield Services continued to offset weaker activity in Performance Chemicals. In Field Specialties, we have taken a further charge to exit our trading relationship in Brazil, where inventory was misappropriated in the first quarter. Excluding this $8 million charge, which reduced our EPS by $0.21, our sales and EBITDA grew, and gross margins improved over the prior year.