Innospec Inc. (NASDAQ:IOSP) Q1 2023 Results Conference Call May 4, 2023 9:00 AM ET

Company Participants

David Jones - General Counsel and Chief Compliance Officer

Patrick Williams - President and CEO

Ian Cleminson - EVP and CFO

Conference Call Participants

Michael Harrison - Seaport Research

Lee Jagoda - CGS Securities

David Silver - CL King & Associates

Operator

Good day, ladies and gentlemen, and welcome to Innospec's First Quarter 2022 Earnings Release and Conference Call. [Operator's Instruction]

I would now like to turn the conference over to your speaker today, David Jones, General Counsel. Please go ahead, sir.

David Jones

Thank you. Welcome to Innospec's first quarter earnings call. 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 the anticipated results implied by such forward-looking statements. The risks and uncertainties are detailed in Innospec's 10-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 discussion 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 superior to those prepared in accordance with GAAP. They are included as additional items to aid in better understanding of the company's performance in addition to the impact that 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 First Quarter 2023 Conference Call. I am pleased to present another [indiscernible] results for Innospec. Our balance portfolio again delivered strong outlining results this quarter. Sales growth and margin improvement in oilfield services partially offset lower activity in Performance Chemicals and a $7.4 million misappropriation of inventory in Fuel Specialties. As expected, this was a soft quarter for Performance Chemicals. Weaker demand and customer destocking efforts continue to negatively impact volumes and margins in the quarter. In the near term, we believe that economic uncertainty will remain a headwind. However, we see no change in our customers' medium- to long-term plans to shift to more mild and natural formulations.