MALVERN, PA — PQ Group Holdings Inc. (NYSE: PQG) this week announced certain preliminary results from continuing operations1 for the first quarter ended March 31, 2021.
Sales2 are estimated to be in the range of $123 million to $127 million versus $126 million and Zeolyst Joint Venture sales of $28 million to $30 million versus $32 million in the same period in 2020. Higher Silica Catalysts sales were more than offset by an estimated $6 million impact to the Refining Services business from the severe Texas storm. Operating income is estimated in the range of $1 million to $3 million versus $12 million3 in the same period a year ago. Adjusted EBITDA is estimated to be in the range of $40 million to $42 million versus $49 million3 from the same period a year ago, largely due to an estimated $9 million impact from the Texas storm, which reduced sales volumes and increased maintenance costs for repairs. From the mid-point of the range, the Company estimates that the storm negatively impacted PQ’s sales and Adjusted EBITDA by approximately 5% and 18%, respectively, as compared to the first quarter of last year.
“We delivered strong operational and financial performance in the first quarter, underscoring the resilience and criticality of our products and services to meet recovery trends we are seeing across our customer base. Absent the storm, our results would have exceeded the first quarter of last year, which was prior to the effects of the pandemic,” said Belgacem Chariag, PQ Chairman, President and Chief Executive Officer. “Our portfolio transformation is nearly complete and we have advanced our strategic objective to become a pure-play catalysts and services company with leading growth and margins.”
1 Continuing operations for 2020 and 2021 include the Company’s Refining Services and Catalysts businesses
2 GAAP sales only; Excludes proportionate 50 percent share of Zeolyst Joint Venture sales
3 Subject to finalization of discontinued operations for the Performance Chemicals segment
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