Q4 2024 Innospec Inc Earnings Call

February 19, 2025

Operator: I'd now like to hand the conference over to your first speaker today, David Jones, General Counsel.

Now like to hand, the conference over to your first Speaker today, David Jones General Counsel. Please go ahead.

David Jones: Thank you.

David Jones: Welcome to Innospec's earnings call. This is David Jones. I'm Innospec's General Counsel and Chief Compliance Officer.

Thank you welcome to <unk> earnings call. This is David Jones, I'm, <unk> General Counsel and Chief compliance Officer.

David Jones: Earnings released for this presentation is posted on the company's website. During this call, we will make forward-looking statements, which are predictions about future events. These statements are based on current expectations and assumptions that are subject to risk and uncertainties that could cause actual results to differ materially from the anticipated results implied by such forward-looking statements. The risk and uncertainties are detailed in Innospec's 10-K, 10-Q, and other filings with the SEC.

The earnings release for this presentation, that's posted on the company's website.

During this call we will make forward looking statements, which are predictions about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause <unk> actual results could differ materially from the anticipated results implied by such forward looking statements. The risks and uncertainties are detailed in <unk> 10-K, 10-Q and other.

Fillings with the SEC.

David Jones: Please see the SEC site and Innospec site for these and related documents.

Please see the SEC site inspect site for these and related documents.

David Jones: In today's presentation, we have also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in earnings release. The non-GAAP financial measure should not be considered as substitute for or superior to those prepared in accordance with GAAP. They are included as additional items to aid investors' understanding of the company's performance in addition to the impact these items had on financial results.

In today's presentation. We have also included non-GAAP financial measures a reconciliation to the most directly comparable GAAP financial measure is contained in the earnings release Tanaka.

The non-GAAP financial measures should not be considered as such a thing for or superior to those prepared in accordance with GAAP.

They are included as additional items to aid investors understanding of the company's performance. In addition to the impact of these items had on financial results.

David Jones: With me today from Innospec are Patrick Williams, President and Chief Executive Officer, and Ian Cleminson, Executive Vice President and Chief Financial Officer.

Speaker Change: With me today from an aspect are Patrick Williams, President and Chief Executive Officer, and Ian Clements and Executive Vice President and Chief Financial Officer, and with that I'll turn it over to you Patrick Thank.

David Jones: And with that, I turn it over to you, Patrick.

Patrick Williams: Thank you, David, and welcome everyone to Innospec fourth quarter and full year 2024 conference call. This was another good quarter for Innospec as we exceeded earnings expectations despite the reduced oil field services activity in Latin America. In Performance Chemicals, we delivered double-digit operating income growth over the fourth quarter last year, driven by improved sales and margins. We have a balanced pipeline of growth opportunities across our global personal care, home care, agriculture, construction, and other industrial markets. In addition, the integration and performance of our recent QGP acquisition in Brazil is proceeding to plan and is supporting not only performance chemicals, but also fuel specialties growth opportunities in the region.

Speaker Change: Thank you David welcome everyone to inspect fourth quarter and full year 2024 conference call.

Speaker Change: This was another good quarter for <unk> as we exceeded earnings expectations. Despite the reduced oilfield services activity in Latin America.

Speaker Change: In performance chemicals, we delivered double digit operating income growth over the fourth quarter last year, driven by improved sales and margins.

Speaker Change: We have a balanced pipeline of growth opportunities across our global personal care home care agriculture, construction and other industrial markets.

Additionally, the integration and performance of our recent Q G. P acquisition in Brazil is proceeding to plan and are supporting not only performance chemicals, but also fuel specialties growth opportunities in the region.

Patrick Williams: Moving into 2025, we continue to target operating income and margin improvement to levels consistent with full year 2022. In fuel specialties, operating income increased 7% over the same quarter last year and operating margin improved to just below our target of 19 to 21%. We remain focused on further margin improvement in parallel with top-line growth. With our industry leading innovation and customer service capabilities, we are well positioned to continue advancing our global customers initiatives. Our technology will continue to focus on cleaner fuels, lowering emissions, and improving efficiency in traditional, renewable, and non-fuel applications.

Speaker Change: Moving into 2025, we continue to target operating income and margin improvement to levels consistent with full year 2022.

Speaker Change: In fuel specialties operating income increased 7% over the same quarter last year and operating margin improved to just below our target of 19% to 21%.

Speaker Change: We remain focused on further margin improvement in parallel with top line growth.

Speaker Change: With our industry, leading innovation and customer service capabilities, we are well positioned to continue advancing our global customers initiatives.

Speaker Change: Our technology will continue to focus on cleaner fuels.

Speaker Change: I already mentioned and proven efficiency than traditional renewable non fuel applications.

Patrick Williams: In oil field services, as expected, results were similar to the third quarter with no recovering Latin America production chemical activity. We currently do not expect this activity to resume in the near term. In 2025, we remain focused on continuing to drive sequential quarterly improvements in our core businesses, including U.S. completions and production, DRA, and the Middle East.

Speaker Change: In oilfield services as expected results were similar to the third quarter.

Speaker Change: Recovery in Latin America production chemical activity.

Speaker Change: Currently do not expect this activity to resume in the near term.

Speaker Change: 2025, we remain focused on continuing to drive sequential quarterly improvements in our core businesses, including U S completions and production DRA and the middle East.

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

Speaker Change: Now I will turn the call to inclement Central review, our financial results in more detail then I will return with some concluding comments after that Eni will take your questions.

Ian Cleminson: Thanks, Patrick. Turning to slide 7 in the presentation, the company's total revenues for the fourth quarter were $466.8 million, a 6% decrease from $494.7 million a year ago. Overall gross margin decreased by 2.3 percentage points from last year to 29.2 percent. Adjusted EBITDA for the quarter was £56.6 million compared to £61.6 million last year.

Speaker Change: Thanks, Patrick.

Speaker Change: Turning to slide seven in the presentation. The Companys total revenues for the fourth quarter were $466 8, million% to 6% decrease from $494 7 million a year ago.

Speaker Change: Overall gross margin decreased by three three percentage points from last year to 29, 3%.

Speaker Change: Adjusted adjusted EBIT EBITDA for the quarter was $56 6 million compared to $61 6 million last year.

Ian Cleminson: In the fourth quarter, the company concluded the buyout of the UK pension scheme and incurred a non-cash settlement charge of £155.6 million. And consequently, there was a net loss for the quarter of £70.4 million. Adjusting for this, the net income was £46.3 million compared to £37.8 million a year ago. Our gap loss per share of $2.80, including special items, the net effect of which decreased our fourth quarter earnings by $4.21 per share. A year ago, we reported gap earnings per share of $1.51, which included the negative impact on special items of $0.33 per share. Excluding special items in both years, our adjusted EPS for the quarter was $1.41 compared to $1.84 a year ago.

Speaker Change: In the fourth quarter. The company concluded the buyouts of the U K pension scheme and incurred a noncash settlement charge of $155 6 million and consequently that was a net loss for the quarter of $74 million.

Speaker Change: Adjusting for this the net income was $46 3 million compared to $37 8 million a year ago.

Speaker Change: Our GAAP loss per share of $2 87, including special items, the net effect of which decreased our fourth quarter earnings by $4 21 per share.

Speaker Change: Year ago, we reported GAAP earnings per share of $1.51, which included the negative impact from special items of 33 per share.

Speaker Change: Excluding special items in both years, our adjusted EPS for the quarter with $1 41 compared.

Speaker Change: Compared to $1.84 a year ago.

Ian Cleminson: For the full year, total revenues of £1.85 billion decreased 5% from £1.95 billion in 2023. Adjusted EBITDA for the year was £225.2 million, compared to £216 million in 2023. And net income adjusted for the pension settlement was £152.3 million, compared to £139.1 million a year ago. Our full year gap earnings per share were $1.42, including special items, which decreased our full year earnings by $4.50 per share. In 2023, we reported gap earnings per share of $5.56 per share, which included negative impact from special items of 53 cents per share. Excluding special items in both years, our adjusted EPS for the year was $5.92 compared to $6.09 a year ago.

Speaker Change: For the full year total revenues of $1 85 billion decreased 5% from $1 95 billion in 2023.

Speaker Change: Adjusted EBITDA for the year was $225 3 million compared to $260 million in 2023.

Speaker Change: Net income adjusted for the pension settlements was $152 3 million compared to $139 4 million a year ago.

Speaker Change: Our full year GAAP earnings per share were $1 42 status, including special items, which decreased our full year earnings by $4 50 per share.

Speaker Change: In 2023, we reported GAAP earnings per share of $5 56 per share, which includes the negative impact from special items of <unk> 53 per share.

Speaker Change: Excluding special items in both years, our adjusted EPS for the year was $5 92.

Speaker Change: Compared to $6 nine.

Speaker Change: A year ago.

Ian Cleminson: Turning to slide 8, revenues in performance chemicals for the fourth quarter were £169.2 million, up 23% from last year's £137.2 million. A negative price mix of 2% was offset by acquisition growth of 7%, volume growth of 17% and a positive currency impact of 1%. Gross margins of 22.7% were up 1.4 percentage points from last year and operating income increased 14% to £20.6 million. For the full year, revenues of £653.7m were up 16% from last year's £561.6m and operating income increased by 52% to £82.9m.

Speaker Change: Turning to slide eight revenues in performance chemicals for the fourth quarter were $169 2 million up 23% from last year's $137 2 million.

Speaker Change: And negative price mix of 3% was offset by acquisition growth of 7% volume growth of 17% and a positive currency impacts of 1%.

Speaker Change: Gross margins of 23, 7%.

Speaker Change: One four percentage points from last year, and operating income increased 14% to $20 6 million.

Speaker Change: For the full year revenues of $653 7 million were up 16% from last year's $561 6 million and operating income increased by 53% agency $30 9 million.

Ian Cleminson: Moving on to slide 9, revenues in fuel specialties for the fourth quarter were $191.8 million, up 5% on the $182.1 million reported a year ago. Volumes increased by 9% and a positive currency impact of 1%, offset a negative price mix of 5%. Fuel Specialty's gross margins are 34.4%, improved by 1.5 percentage points from 32.9% last year, and operating income increased 7% to £34.9 million. For the full year, revenues were up 1% to £701.1 million and operating income increased 18% to £129.6 million. Adjusting to the impact of non-recurring Brazil inventory charges in 2023, full year operating income grew by 4%.

Speaker Change: Moving on to slide nine.

Speaker Change: In fuel specialties for the fourth quarter were $191 8 million up 5% on the $183 1 million reported a year ago.

Speaker Change: Volumes increased by 9% and a positive currency impact of 1% offset a negative price mix of 5%.

Speaker Change: Fuel specialties gross margins of 34, 4% improved by one five percentage points from 33, 9% last year and operating income increased 7% to $34 9 million.

Speaker Change: For the full year revenues were up 1% seven to $701 1 million and operating income increased 18% to $129 6 million.

Speaker Change: Adjusting for the impact of nonrecurring, Brazil inventory charges in 2023 full year operating income grew by 4%.

Ian Cleminson: Moving on to slide 10, revenues in oilfield services for the quarter were £105.8 million, down 40% from £175.4 million in the fourth quarter last year. Gross margins of 30.1% were down 7.9 percentage points on last year's 38% and operating income of £7.5 million was down 59% from £18.3 million a year ago. For the full year, revenues of £490.6 million were down 29% from last year's £691.3 million and operating income decreased 51% to £38.8 million. Excluding the Latin American production activity, our core business has grown sales and operating income year over year. Our expectation for 2025 is that we will see further sequential improvements in the core oil field business.

Speaker Change: Moving onto slide seven revenues in oilfield services for the quarter were $105 7 million down 40% from $175 4 million in the fourth quarter last year.

Speaker Change: Gross margins at 31% were down seven nine percentage points on last year is 38% and operating income of $7 5 million was down 59% from $18 3 million a year ago.

Speaker Change: For the full year revenues of $496 million were down 29% from last year's $691 3 million and operating income decreased to 51% to $38 8 million.

Speaker Change: Excluding the Latin American production activity, our core business is growing sales and operating income year over year.

Speaker Change: Our expectation for 2025 is that we will see further sequential improvements in the core oilfield business.

Ian Cleminson: Turning to slide 11, corporate costs of £20.6 million decreased by £3.8 million from last year, which included £1.3 million relating to acquisition costs. The full year adjusted effective tax rate was 26.4% compared to 23% last year due to the geographical mix of taxable profits. For 2025, we expect the full year effective tax rate to be around 27%.

Speaker Change: Turning to slide 11, corporate costs were $20 6 million decreased by $3 $8 million from last year, which included $1 3 million relating to acquisition costs.

Speaker Change: Full year adjusted effective tax rate was 26, 4% compared to 23% last year due to the geographical mix of taxable profits.

Speaker Change: For 2025, we expect our full year effective tax rate should be around 27%.

Ian Cleminson: Moving on to slide 12, cash generated from operations in the quarter was £25.7 million before capital expenditures of £20.6 million. In the quarter, we paid the previously announced semi-annual dividend of 79 cents per common share. This brought the total dividend for the full year to $1.55 per share, a 10% increase over 2023. For the full year, cash from operations after capital expenditures was £122.7 million compared to £130.2 million in 2023.

Speaker Change: We began to slide 12 cash generated from operations in the quarter was $25 7 million before capital expenditures of $20 6 million.

Speaker Change: In the quarter, we paid the previously previously announced semiannual dividend of 79 per common share.

Speaker Change: This brought the total dividend for the full year to $1 55 per share at.

Speaker Change: At 7% increase over the 2023.

Speaker Change: For the full year cash from operations after capital expenditures was $123 7 million compared to $133 million in 2023.

Ian Cleminson: As of December 31st, 2024, Innospec had £289.2 million in cash and cash equivalents and no debt.

Speaker Change: As of December 31, 2024, and <unk> hundred $89 3 million in cash and cash equivalents and no debt.

Patrick Williams: And now I'll turn it back over to Patrick for some final comments.

Patrick Williams: Thanks Ian. Innospec achieved another good set of results over the quarter and full year. Strengthened performance chemicals and fuel specialties continue to offset lower results in oil field services.

Patrick Williams: Thanks Ian.

Patrick Williams: <unk> achieved another good set of results for the quarter and full year.

Patrick Williams: Strength in performance chemicals, and fuel specialties continue to offset lower results in oilfield services.

Patrick Williams: Our 2025 outlook remains for continued growth in performance, chemicals and fuel specialties, along with the sequential quarterly recovery in oilfield services. In all, our businesses remain focused to deliver best-in-class surface active chemistry technologies and technical service to our global customers. Our opportunity pipeline continues to focus on technologies that lower emissions, enable cleaner formulations, and increase operating efficiency. We view these as long-term customer priorities in all our markets.

Patrick Williams: Our 2025 outlook remains for continued growth and performance chemicals and fuel specialties, along with the sequential quarterly coverage in oilfield services.

Patrick Williams: In all our businesses, we remain focused to deliver best in class surface acid chemistry technologies.

Patrick Williams: And technical service to our global customers.

Patrick Williams: Our opportunity pipeline continues to focus on technologies that lower emissions and neighbor cleaner formulations and increased operating efficiencies.

Patrick Williams: We view these as long term customer priorities in all our markets.

Patrick Williams: Operating cash generation was positive in the quarter, and our net cash position closed with over $289 million. continue to have significant flexibility and balance sheet strength for further M&A, dividend growth, share repurchases, and organic investment.

Patrick Williams: Operating cash generation was positive in the quarter and our net cash position close with over $289 million.

Patrick Williams: We continue to have significant flexibility and balance sheet strength for further M&A dividend growth share repurchases and organic investment.

Operator: Now I will turn the call over to the operator, and Ian and I will take your questions.

Patrick Williams: Now I'll turn the call over to the operator, and Ian I will take your questions.

Operator: Thank you.

Operator: As a reminder to ask a question you will need to press star 11 on your telephone keypad and wait for your name to be announced. To withdraw your question please press star 11 again.

Patrick Williams: Thank you.

Speaker Change: To ask a question you will need to press star one on your telephone keypad and wait for your name to be announced to withdraw your question. Please press star one again.

Operator: We will now proceed with our first Please stand by.

Patrick Williams: We will now proceed with us.

Speaker Change: Please standby.

Jonathan Tanwanteng: And the first question comes from Jon Tanwanteng from CJS Securities.

Speaker Change: And the first question comes from John ton, one Tang from the J.

John ton: Hey, D. J S Securities. Please go ahead. Your line is now open.

Jonathan Tanwanteng: Please go ahead, your line is now open.

Jonathan Tanwanteng: Good morning. Thank you for taking my questions and congrats on the next quarter. My first one is...

John ton: Good morning, Thank you for taking my questions and congrats on a nice quarter.

Patrick Williams: Thank you, Joe. My first one is, could you just talk about the year-over-year volume increases in both the fuels and the chemical segment? Were those just easy comps, or were there timing factors, or was there just a significant improvement in the underlying runway?

Speaker Change: My first one is thank you Joe.

Speaker Change: My first one is that could you just talk about the year over year volume increases in both the fuels and the chemical segment.

Speaker Change: Were those just easy comps or were there timing factors or theyre, just a significant improvement in the underlying run rate demand there.

Patrick Williams: I think it was a significant improvement. It was projects that we had, organic-based projects that came to fruition, market conditions stabilized for us. and we continue to grow in our customer base. So I think it was overall just a general improvement.

Speaker Change: I think there was a significant improvement.

Speaker Change: Projects that we had organic based projects that came to fruition.

Speaker Change: Market conditions stabilized for us.

Speaker Change: And we continue to growth our costs growing our customer base. So I think it was overall just general improvement.

Jonathan Tanwanteng: Got it.

Jonathan Tanwanteng: And the sustainability of that demand into into Q1, have you seen those trends continue?

Speaker Change: Got it and the sustainability of that demand into into Q1 have you seen those trends continue.

Patrick Williams: We have. So far we have, Jon.

Speaker Change: We have so far we have John got.

Jonathan Tanwanteng: Got it. And the margin, obviously, in fuel specialties was pretty outstanding.

Speaker Change: Got it and the margin obviously in fuel specialties was it was pretty outstanding or do you think that is maintainable are sustainable for the future.

Patrick Williams: Do you think that is maintainable or sustainable? Yeah, I'd probably hold the same margins that we held in the quarter.

Speaker Change: Yes, I would probably have all the same margins that we held.

Speaker Change: In the quarter.

Patrick Williams: Got it. And then just on the oil field segment, you mentioned that you don't expect your, um, you know, that large customer to come back in the coming quarters. I'm wondering what your long term expectation for that customer is. If maybe, you know, um, six months down the line, a year down the line, you think they might Yeah, I think you probably answered I you know, we're probably thinking a second part of the year. second half of the year, I should say. You know, we know what's going on internally. It's very political right now. There's been articles out about some of the crude coming out of it, the heavy crude with all the water in it.

Speaker Change: Got it and then just.

Speaker Change: On an oilfield segment, you mentioned that you don't expect here.

Speaker Change: Or that large customer to come back in the coming quarters I'm wondering what your long term expectation for our customers is maybe.

Speaker Change: Six months down the line or Youre down line do you think they might come back.

Speaker Change: I think you probably answered we're probably sink in a second.

Speaker Change: Part of the year.

Speaker Change: Second half of the year I should say.

Speaker Change: We know what's going on internally, it's very political rate out.

Speaker Change: There's been articles out about somebody.

Speaker Change: Coming out of its hit the heavy crude with all the water in the U S refineries not taken or being able to handle that crude. So we know at some point in time, John Theyre going to have to come back it's function of wind and so what volume I do know if they come back is probably going to be at a lower volume.

Patrick Williams: U.S. refineries not taking or being able to handle that crude. So we know at some point in time, John, they're going to have to come back as a function of wind and to what volume. I do know if they come back, it's probably going to be at a lower volume, but that's okay.

Patrick Williams: I think that our technology is, in my opinion, the best technology in the marketplace to treat those crudes. And we're there. We're ready. It's just a function of timing, in my opinion.

Speaker Change: But that's okay, I think that our technologies.

Speaker Change: In my opinion, the best technology in the marketplace to treat those crudes.

Speaker Change: And we're there we're ready.

Speaker Change: It's a function of timing in my opinion.

Patrick Williams: Got it. Is there a risk that the refineries retool to use different kinds of foods in the market? No, they could treat it at U.S.

Speaker Change: Got it is there a risk that the refineries retool to use a different kinds of foods.

Speaker Change: In the market.

Speaker Change: That happens.

Patrick Williams: refineries, but there's so much water in that food right now that it's very expensive to do. You know, we could use our products that we probably use in Mexico at U.S. refineries to help them, and that's part of the plan is to have a dual attack there because we can definitely help the U.S. refineries that are taking that heavy crude. And so we are talking to them. Again, I think it's just a function of timing. It's just a lot of water in their crude, and the U.S. refineries aren't really prepared to take on that much water.

Speaker Change: They traded at U S refineries, but theres, so much water and that crude right now that it's very expensive to do we could use our products that we probably used in Mexico at U S refineries to help them and Thats part of the plan is to have a dual attack there.

Speaker Change: We could definitely helped the U S refineries that are taken that heavy crude.

Speaker Change: And so we are talking to them.

Speaker Change: Again, I think it's just a function of timing it shipped a lot of water in their crude.

Speaker Change: U S refineries arent really prepared to take on that much water.

Jonathan Tanwanteng: Got it, okay.

Speaker Change: Got it okay.

Jonathan Tanwanteng: Ian, just one housekeeping item. You had a pension settlement charged in the quarter. Can you just give a little color and details around that? Did you spend any cash? you know, what are the, what's the pension liability going for?

Speaker Change: Ian just one housekeeping item you had a pension settlement charge in the quarter can you just give a little color and details around that.

Speaker Change: Did you spend any cash in.

Speaker Change: What are the what's the pension liabilities going forward here.

Ian Cleminson: Yeah, sure, Jon. So we flagged this probably about two years ago that we were heading towards this point. We concluded the buyout in the fourth quarter. Essentially, what that does is then removes the company's obligation to provide the cost of the pension scheme, and it removes all those legislation changes, risks of investment returns, assumptions on inflation and such things. They're all now removed from the company's balance sheet.

John: Yes, sure John So reflect this probably about two years ago.

John: We were heading towards these points, we concluded the buyouts in the fourth quarter.

John: Essentially what that does that and removes the companys obligation.

John: So the cost of the pension scheme.

John: And it removes all those legislation changes risks could investment returns.

John: Assumptions on inflation and so as things that all now removed from the Companys balance sheet. So this is actually a very positive thing for us.

Ian Cleminson: So this is actually a very positive thing for us. Part of the U.S. GAAP accounting was to recycle all those historic gains and losses that were in the reserves back into the income statement. That gave us $155 million charge. We've adjusted that out in the quarter. So this is a non-cash charge.

John: Parts of the U S. GAAP accounting was to recycle all those historic gains unless that were in the reserves back into the income statement.

John: It was 155 million charge, we've adjusted the ounce in the quarter.

John: So this is a noncash charge it was a one off events as we move into 2025. The one thing that is going to be slightly different process that in 2020 for what we have.

Ian Cleminson: It was a one-off event. As we move into 2025, the one thing that is going to be slightly different for us is that in 2024, we had a service credit flowing through our other income line, below operating income. That's about $7.2 million. We won't have that credit flowing through in 2025. So there's a 22-cent headwind there as we head into this year. That's the only impact that we've got ongoing. Everything else is pretty much wrapped up now.

John: This credit flowing through our other income line.

John: Operating income that's about $7 million, we won't have that credit flowing through in 2025. So these are 22, some headwind as we head into this year as the only impact that we've got ongoing epic analysis pretty much wraps up now there'll be no ongoing costs no ongoing charges are increasing can stay.

Ian Cleminson: There'll be no ongoing costs, no ongoing charges running through the income statement.

John: <unk>.

Jonathan Tanwanteng: Got it. Thank you.

John: Got it thank you.

Ian Cleminson: No problem. Thank you.

John: No problem.

John: Thank you.

Operator: Once again to ask a question you will need to press star 11 on your telephone keypad and wait for your name to be announced. To withdraw your question please press star 11 again.

Speaker Change: Again to ask a question you will need to press star one one on your telephone keypad and wait for your name to be announced to withdraw your question. Please press star one again.

Patrick Williams: As there are no further questions on the phone lines, I would now like to hand back to Patrick Williams for any closing remarks.

Speaker Change: As there are no further questions on the phone lines I would now like to hand back to Patrick Williams for any closing remarks.

Patrick Williams: Thank you all for joining us today, and thanks to all our shareholders, customers, and Innospec employees for your interest and support. If you have any further questions about Innospec or matters discussed today, please give us a call.

Patrick Williams: Thank you all for joining us today, and thanks to all our shareholders customers and inspect employees for your interest and support.

Patrick Williams: Any further questions about inspect bar matters discussed today, please give us a call. We look forward to meeting up with you again to discuss our first quarter 2025 results in May have a great day.

Patrick Williams: We look forward to meeting up with you again to discuss our first quarter 2025 results in May. Have a great day.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Patrick Williams: This concludes today's conference call. Thank you for participating you may now disconnect.

Patrick Williams: Okay.