The company attributed the full-year operating profit increase mainly to increased selling prices, partially offset by higher raw material and operating costs. Shipments – mostly of lubricant additives – decreased 3%, NewMarket said. Supply chain disruptions and new sanctions introduced during 2022 as a result of the Russia-Ukraine war were deemed the primary contributors to the decline in shipments.

Fourth quarter sales for the segment increased 19% year to year to $680.3 million. For the full year, sales rose 18% to $2.8 billion.

NewMarket Chairman and CEO Thomas Gottwald said in the company’s earnings news release that the past three years saw unprecedented disruptions to the industry, including the COVID-19 pandemic’s impacts, worldwide supply chain disruptions, inflation and the Russia-Ukraine war.

“Accordingly, we believe that it is useful to compare our results to 2019, the last full year before these factors,” he said. For the company’s petroleum additives business, operating profit in 2022, compared to 2019, was 5% higher, sales were up 26% and shipments were 3% higher.

“While our efforts to resolve supply chain issues to better meet our customers’ growing needs have shown improvement, we are still challenged by the inflationary environment and rising operating costs that we expect to continue into 2023,” Gottwald said. “Margin recovery and cost control will remain priorities throughout 2023.”

Richmond, Virginia-headquartered NewMarket reported $90.5 million in net income for the quarter, or $9.26 per share, a 426% jump from $17.2 million, or $1.65 per share. For 2022, net income rose 46% to $279.5 million, or $27.77 per share, improving from $190.9 million, or $17.71 per share.