Tronox Limited (TROX) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $122 million, or $ 1 a share in the quarter, against a net loss of $90 million, or $0.78 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $16 million, or $0.14 a share from a loss of $76 million or $0.66 a share, a year ago.
Revenue during the quarter went up marginally by 2.43 percent to $548 million from $535 million in the previous year period. Gross margin for the quarter expanded 1231 basis points over the previous year period to 16.42 percent. Operating margin for the quarter period stood at positive 5.84 percent as compared to a negative 7.10 percent for the previous year period.
Operating income for the quarter was $32 million, compared with an operating loss of $38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $105 million compared with $60 million in the prior year period. At the same time, adjusted EBITDA margin improved 795 basis points in the quarter to 19.16 percent from 11.21 percent in the last year period.
Tom Casey, chairman and chief executive officer of Tronox, said: “Our fourth quarter performance provided a strong finish to 2016. Our revenue increased both year-on-year and compared to the seasonally stronger third quarter. Our adjusted EBITDA increased 75 percent from the fourth quarter 2015 and exceeded our third quarter performance by 7 percent. Our TiO2 and Alkali businesses combined to deliver $126 million of adjusted EBITDA and $100 million of free cash flow. Driving the performance in TiO2 were our highest fourth quarter and month of December pigment sales volumes on record, higher selling prices, which increased 1 percent sequentially and 7 percent above prior year and continued substantial cost reductions resulting from its Operational Excellence program. Alkali’s performance was driven by higher production volumes, lower operating costs and increased production efficiencies. Our cash generation performance further strengthened our balance sheet, as we closed the quarter with $248 million of cash on hand and liquidity of $533 million.”
Operating cash flow falls marginally
Tronox Limited has generated cash of $211 million from operating activities during the year, down 2.31 percent or $5 million, when compared with the last year. The company has spent $117 million cash to meet investing activities during the year as against cash outgo of $1,840 million in the last year. It has incurred net capital expenditure of $117 million on net basis during the year, down 38.42 percent or $73 million from year ago.
The company has spent $77 million cash to carry out financing activities during the year as against cash inflow of $603 million in the last year period.
Cash and cash equivalents stood at $248 million as on Dec. 31, 2016, up 8.30 percent or $19 million from $229 million on Dec. 31, 2015.
Working capital decreases marginally
Tronox Limited has witnessed a decline in the working capital over the last year. It stood at $731 million as at Dec. 31, 2016, down 2.92 percent or $22 million from $753 million on Dec. 31, 2015. Current ratio was at 2.40 as on Dec. 31, 2016, up from 2.37 on Dec. 31, 2015.
Debt remains almost stable
Tronox Limited has recorded a decline in total debt over the last one year. It stood at $3,054 million as on Dec. 31, 2016, down 0.72 percent or $22 million from $3,076 million on Dec. 31, 2015. Total debt was 61.70 percent of total assets as on Dec. 31, 2016, compared with 60.65 percent on Dec. 31, 2015. Debt to equity ratio was at 2.63 as on Dec. 31, 2016, down from 2.77 as on Dec. 31, 2015.
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