Oxea, a global supplier of Oxo Intermediates and Oxo Derivatives, today announced for the first quarter of 2013 a strong earnings increase compared with the first quarter of 2012. Adjusted EBITDA increased from €45 million in Q1 2012 to 53 million in Q1 2013 (+18%), the third best quarterly result of Oxea since its inception in 2007. While revenues were stable compared with the corresponding period of the prior year, Oxea was able to increase margins as a result of continuous product portfolio optimization, successful implementation of cost reduction measures and a strong pricing discipline.

During the first quarter of 2013, Oxea completed the ramp-up phase of the new second production facility for Specialty Esters in Oberhausen after its start-up of operations at the end of 2012. The third production unit for Carboxylic Acids in Oberhausen was mechanically completed at the end of April and is scheduled to be in operation prior to the 5-year turnaround at the Oberhausen site, which will start at the end of this month. Both investments will render a further significant contribution to Oxea's earnings in the near future.

In the first quarter of 2013, Oxea again generated strong free cash flows. Cash provided by operating activities was €40 million (Q1 2012: 42 million) despite the necessary build-up of Trade Working Capital prior to the start of the 5-year turnaround at the Oberhausen site. Oxea's strong earnings and cash flow position, bolstered by the two new derivatives production facilities, has put Oxea in a position to refinance the existing Senior Secured Notes at more favourable terms.

In order to take advantage of the current favourable market conditions, Oxea is currently planning to refinance the existing Senior Secured Notes in mid July 2013 after the expiration of the call protection period.

Net sales

Net sales for the three months ended March 31, 2013 of €72.6 million were in line with the corresponding period of the prior year. Overall, volumes were 5kt (-1.6%) lower compared with Q1 2012 mainly driven by volume slippages into the next month. Oxo Intermediates volumes were down by 2.8% and Oxo Derivatives volumes traded 2.0% higher. Of our revenues for the three months ended March 31, 2013, €180 million resulted from sales in Europe, 118 million resulted from sales in North America, and €74 million resulted from sales in the rest of the world, as compared to 188 million, 120 million, and €63 million, respectively, in the prior year period.

Gross profit

Gross profit for the three months ended March 31, 2013 amounted to €54.6 million compared with €47.2 million in Q1 2012 mainly due to improved margins.

Other operating income/(expense)

Net other operating income for the three months ended March 31, 2013 of €1.8 million was in line with the corresponding period of the prior year.

Operating profit

Operating profit for the three months ended March 31, 2013 was €45.9 million compared with 37.9 million in the corresponding prior year period, primarily as a result of higher gross profit and lower SG&A expense as explained above.

Financial result

Net financial expense for the three months ended March 31, 2013 was €11.3 million compared with €13.0 million in Q1 2012 mainly due to exchange rate losses in the prior year period.

Net income

Net income for the three months ended March 31, 2013 was €21.4 million compared with 16.1 million in the corresponding period of the prior year mainly driven by the higher operating profit as mentioned above.

Adjusted EBITDA

Adjusted EBITDA for the three months ended March 31, 2013 was €52.6 million compared with 44.5 million in the corresponding period of the prior year mainly driven by improved margins as explained above.