NOTE 2 – SEGMENT REPORTING The Company reports its financial performance based on three reportable segments, which are Performance Chemicals, Fuel Specialties and Oilfield Services. The Chief Operating Decision Maker (“CODM”) is the President and Chief Executive Officer (the Principal Executive Officer). The CODM evaluates the performance of the Company’s segments and makes strategic decisions relating to the Company's allocation of resources, based on the segments' gross profit and operating income. The following table analyzes sales and other financial information by the Company’s reportable segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Net Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
Personal Care |
|
$ |
111.9 |
|
|
$ |
105.0 |
|
|
$ |
209.1 |
|
|
$ |
205.5 |
|
Home Care |
|
|
31.7 |
|
|
|
26.1 |
|
|
|
62.5 |
|
|
|
52.4 |
|
Other |
|
|
46.7 |
|
|
|
42.7 |
|
|
|
88.1 |
|
|
|
84.3 |
|
Performance Chemicals |
|
|
190.3 |
|
|
|
173.8 |
|
|
|
359.7 |
|
|
|
342.2 |
|
Refinery and Performance |
|
|
127.3 |
|
|
|
112.8 |
|
|
|
258.2 |
|
|
|
242.2 |
|
Other |
|
|
58.4 |
|
|
|
52.3 |
|
|
|
109.1 |
|
|
|
93.2 |
|
Fuel Specialties |
|
|
185.7 |
|
|
|
165.1 |
|
|
|
367.3 |
|
|
|
335.4 |
|
Oilfield Services |
|
|
115.4 |
|
|
|
100.8 |
|
|
|
217.6 |
|
|
|
202.9 |
|
|
|
$ |
491.4 |
|
|
$ |
439.7 |
|
|
$ |
944.6 |
|
|
$ |
880.5 |
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
Performance Chemicals |
|
$ |
33.0 |
|
|
$ |
30.5 |
|
|
$ |
61.4 |
|
|
$ |
65.8 |
|
Fuel Specialties |
|
|
68.0 |
|
|
|
62.9 |
|
|
|
132.3 |
|
|
|
123.7 |
|
Oilfield Services |
|
|
37.3 |
|
|
|
29.8 |
|
|
|
68.1 |
|
|
|
58.8 |
|
Total gross profit |
|
$ |
138.3 |
|
|
$ |
123.2 |
|
|
$ |
261.8 |
|
|
$ |
248.3 |
|
Operating income/(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
Performance Chemicals |
|
$ |
16.4 |
|
|
$ |
14.3 |
|
|
$ |
27.1 |
|
|
$ |
34.1 |
|
Fuel Specialties |
|
|
36.3 |
|
|
|
35.4 |
|
|
|
74.1 |
|
|
|
72.3 |
|
Oilfield Services |
|
|
8.7 |
|
|
|
6.2 |
|
|
|
14.3 |
|
|
|
10.3 |
|
Corporate costs |
|
|
(21.6 |
) |
|
|
(20.9 |
) |
|
|
(43.9 |
) |
|
|
(38.6 |
) |
Adjustment to fair value of contingent consideration |
|
|
(0.1 |
) |
|
|
(0.8 |
) |
|
|
4.6 |
|
|
|
(1.5 |
) |
Profit on disposal of property, plant and equipment |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
Total operating income |
|
$ |
39.7 |
|
|
$ |
34.3 |
|
|
$ |
76.2 |
|
|
$ |
76.8 |
|
The difference between net sales and gross profit is defined as cost of goods sold. The difference between segmental gross profit and operating income/(expense) is split between selling, general and administrative expenses and research and development expenses.
The following table analyzes cost of goods sold by the Company’s reportable segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Performance Chemicals |
|
$ |
157.3 |
|
|
$ |
143.3 |
|
|
$ |
298.3 |
|
|
$ |
276.4 |
|
Fuel Specialties |
|
|
117.7 |
|
|
|
102.2 |
|
|
|
235.0 |
|
|
|
211.7 |
|
Oilfield Services |
|
|
78.1 |
|
|
|
71.0 |
|
|
|
149.5 |
|
|
|
144.1 |
|
Total cost of goods sold |
|
$ |
353.1 |
|
|
$ |
316.5 |
|
|
$ |
682.8 |
|
|
$ |
632.2 |
|
The following table analyzes selling, general and administrative expenses and research and development expenses by the Company’s reportable segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Performance Chemicals |
|
$ |
16.6 |
|
|
$ |
16.2 |
|
|
$ |
34.3 |
|
|
$ |
31.7 |
|
Fuel Specialties |
|
|
31.7 |
|
|
|
27.5 |
|
|
|
58.2 |
|
|
|
51.4 |
|
Oilfield Services |
|
|
28.6 |
|
|
|
23.6 |
|
|
|
53.8 |
|
|
|
48.5 |
|
Corporate |
|
|
21.6 |
|
|
|
20.9 |
|
|
|
43.9 |
|
|
|
38.6 |
|
Total selling, general and administrative expenses and research and development expenses |
|
$ |
98.5 |
|
|
$ |
88.2 |
|
|
$ |
190.2 |
|
|
$ |
170.2 |
|
|