First Quarter Earnings Bump for Afton

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First Quarter Earnings Bump for Afton

Afton Chemical achieved a 14% increase in first-quarter operating profit, primarily due to lower costs that overcame a dip in sales revenue.

The company, which is NewMarket Corp.’s petroleum additives segment, had $150.9 million in operating profit for the quarter ended March 31, improving from $132.1 million in the same period last year.

“The increase in petroleum additives operating profit was mainly due to lower raw material and operating costs, partially offset by lower selling prices and product mix,” NewMarket said in its earnings release. “We are seeing evidence that out efforts to control operating costs are taking hold. Managing our operating costs, our inventory levels and our portfolio profitability will remain priorities throughout 2024.”

Petroleum additives segment net sales revenue declined to $677.3 million, a 3% decrease from $700 million in the first quarter of 2023. Shipments were up 5%, with increases in both lubricant additives and fuel additives across all regions except Latin America, which reported a decrease in lube additive shipments.

The petroleum additives segment earns most of its money from lubricant additives. It includes fuel additives supplier Ethyl Corp. but mostly consists of Afton.

Parent company NewMarket, based in Richmond, Virginia, reported net income of $107.7 million, or $11.23 per diluted share, improving from $97.6 million net income, or $10.09 per diluted share.

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