• Mon. Nov 30th, 2020

Pharma Oracle

Evolving Today for better Tomorrow

Fast track runner: Huntsman Corporation (NYSE: HUN)

On Thursday, Huntsman Corporation stock identified change of -9.32% away from 52-week low price and recently located move of -44.23% off 52-week high price. It has market worth of $3345.53M and dividend yield of 4.54%. HUN stock has been recorded -32.18% away from 50 day moving average and -32.94% away from 200 day moving average. Moving closer, we can see that shares have been trading -25.66% off 20-day moving average.

Huntsman Corporation (HUN) recently stated fourth quarter 2019 results with revenues of $1,657M, net income of $308M, adjusted net income of $65M and adjusted EBITDA of $182M.

Peter R. Huntsman, Chairman, President and CEO, commented:

“2019 was a memorable year for Huntsman with several milestones achieved that importantly strengthened the Company for years to come.  The biggest milestone was the $2B divestiture of our Chemical Intermediates and Surfactants businesses, which importantly reduces our upstream footprint.  The proceeds from this sale have further fortified our investment grade balance sheet and enhances our ability to focus on and grow our core downstream businesses.  Additionally, we purchased the remaining 50% investment in our Maleic Anhydride joint venture from Sasol, we opened a new polyurethanes system house in Dubai, and in early December we reported the contract to acquire Icynene-Lapolla which will double the size of our existing high growth spray foam business.  We remained balanced in our capital allocation by repurchasing over $200M in stock and paying $150M in dividends to our shareholders.  Lastly, in the starting of 2019 we achieved our long-term goal to earn an investment grade rating.     

“Heading into 2020 we remain focused on what we can control, which will include investing both organically and through acquisitions into our downstream and specialty platforms, and being balanced in our approach to capital allocation, including maintaining a competitive dividend and ongoing opportunistic share repurchases.  The economic headwinds remain as we enter the year making earnings growth more of a challenge.  However, with our strengthened balance sheet and strong downstream platforms for further growth, I see far more opportunities than challenges before us as we pursue multiple opportunities to create further shareholder value.”

Liquidity, Capital Resources and Outstanding Debt

During the three months ended December 31, 2019, our free cash flow from continuing operations was $131M contrast to $154M in the previous year period.  As of December 31, 2019, we had $1,684M of combined cash and unused borrowing capacity.

During the three months ended December 31, 2019, we spent $93M on capital expenditures contrast to $103M in the same period of 2018.  In 2020, we expect to spend about $300M to $325M on capital expenditures, which includes about $80M for our new MDI splitter at our facility in Geismar, Louisiana.

During the three months ended December 31, 2019, we spent about $12M to repurchase about 0.5M shares.  As of the end of the fourth quarter 2019, we have about $516M remaining on our existing $1B multiyear share repurchase program.

Income Taxes

In the fourth quarter 2019, our adjusted effective tax rate was 25%. We expect our forward adjusted effective tax rate will be about 22% – 24%.

Huntsman Corporation noticed change of -11.45% to $14.31 along volume of 4768734 shares in recent session compared to an average volume of 2161.8K. HUN’s shares are at -37.65% for the quarter and driving a -41.40% return over the course of the past year and is now at -40.77% since this point in 2018.

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