Innospec Inc.

Thank you. This is David Jones. The earnings released for the quarter and this presentation are posted on the company's website. During this call, we will make forward-looking statements, which are predictions, projections, and other statements about future events. These statements are based on current expectations and assumptions that are subject to risk and uncertainties that could cause actual results to differ materially from the anticipated results implied by such forward-looking statements. The risk and uncertainties are detailed and introspect 10-K, 10-Qs, and other filings with the SEC. Please see the SEC site and InnoSpec site for these and related documents. In our discussions today, we've also included non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure is contained in the earnings release. The non-GAAP financial measure should not be considered as a substitute for or superior to those prepared in accordance with GAAP. They're included as additional items to aid investor understanding of the company's performance in addition to the impact that such items and events had on financial results. With me today from InnoSpec are Patrick Williams, President and Chief Executive Officer, and Ian Clementson, Executive Vice President and Chief Financial Officer. And with that, I'll turn it over to you, Patrick.

Thank you, David, and welcome everyone to InnoSpec's third quarter 2022 conference call. This was an excellent quarter for InnoSpec. Volume and price mix improvements drove strong sales growth in all businesses. We delivered a 60% increase in operating income and margins expanded. Over 80% of our gross profit in the quarter came from business outside of Europe where recessionary pressures are more prevalent. We believe we are well positioned for both an end market and geographic perspective to navigate continued expected headwinds. In performance chemicals, strong personal care growth continued to offset weaker demand in smaller segments like our European home care. Overall volumes and price mix both improved in the quarter and operating income was up 43%. We do not see any change in our customers' drive towards higher performance and cleaner formulations. Major customer projects continue to move forward, and we remain cautiously optimistic that we can achieve mid-single-digit volume growth and steady growth margins through the expected recessionary headwinds in 2023. To support additional contracted demand, we expect to complete the majority of our $70 million capacity expansion over the coming year. In fuel specialties, operating income grew by 5% over last year. We expect this business to be relatively resilient through any near-term economic weakness. In addition, we continue to see potential for gross margin improvement as inflation normalizes and demand for a higher margin jet fuel out of us continues to recover. Over the medium to long term, we will continue to capitalize on sustainability themes, which are opening doors for new applications with our technologies and clean fuels higher efficiency engines, and non-engine applications. We expect momentum to build in these areas as customers continue to look for cost-effective technologies that improve productivity and decrease emissions. In oilfield services, strong orders in our production chemicals business combined with further improvements in our other oilfield segments drove sharp increase in operating income. We expect reduced activity in the coming quarters versus this extremely strong third quarter. However, we continue to make progress towards a return to 2019 full-year operating income levels within the next two years. Now I will turn the call over to Ian, who will review our financial results in more detail. Then I will return with some concluding comments. After that, Ian and I will take your questions.

Thanks, Patrick. Turning to slide seven in the presentation. the company's total revenues for the third quarter were 513 million, a 36% increase from 376.1 million a year ago. Overall gross margin increased slightly by 0.4 percentage points from last year to 30.4%. EBITDA for the quarter was 59.2 million compared to 41.4 million last year, and net income for the quarter was 38.7 million compared to 23.4 million a year ago. Our gap earnings per share were $1.55 including special items, the net effect of which decreased our third quarter earnings by 19 cents per share. A year ago, we reported gap earnings per share of 94 cents, which included the negative impact from special items of 21 cents per share. Excluding special items in both years, our adjusted EPS for the quarter was $1.74 compared to $1.15 a year ago. Turning to slide eight, revenues in performance chemicals for the third quarter were 159.7 million, up 20% from last year's 132.8 million. Volumes grew 4% as strong growth in personal care volumes offset volume decline in our other European markets, while a positive price mix of 26% was offset by an adverse currency impact of 10%. Gross margins of 24.5% were unchanged from last year, and operating income increased 43% from a year ago to 25.4 million. Moving on to slide nine, revenues in fuel specialties for the third quarter were 178.7 million, 14% higher than the 156.4 million reported a year ago. A favorable price mix of 30% offset a reduction in volumes of 6% and a negative currency impact of 10%. Fuel Specialty's gross margins of 29.9% were 1.5 percentage points below last year and will remain at the lower end of our expected range until inflation moderates. Operating income increased 5% from last year to 27.9 million. Moving on to slide 10, Revenues in oilfield services for the quarter were 174.6 million, approximately double the 86.9 million in the third quarter last year, as very strong orders in production chemicals and a continued sequential recovery in other segments drove a sharp improvement. Gross margins of 36.4% were up half a percentage point on last year, and operating income of 14.2 million was an 11.5 million improvement from a year ago. Turning to slide 11, corporate costs for the quarter was £17.4 million compared with £15.7 million a year ago, due mainly to higher performance-related remuneration accruals. The adjusted effective tax rate for the quarter was 20.1% compared to 22.3% last year as a consequence of the geographical location of taxable profits. Moving on to slide 12, Cash generation for the quarter was $39.8 million before capital expenditures of $9.7 million. As of September 30, 2022, Innspec had $100 million in cash and cash equivalents and no debt. And now I'll turn it back over to Patrick for some final comments.