2 Min Read
March 1 (Reuters) - Specialty chemical maker Elementis Plc reported a more than 22 percent fall in full-year profit on Wednesday as currency impact weighed on its chromium business while low oil prices hurt its energy unit.
However, Elementis expects a modest recovery in the energy business this year as crude prices stabilize and as oil companies put more rigs back to work, Chief Executive Paul Waterman said.
The company, which makes additives used in oilfields, industrial coatings and cosmetics, said 2016 sales in the energy unit fell 16 percent on constant currencies, due to weak oil prices, although the second half saw some recovery in volumes.
Crude prices have largely held above $50 per barrel since the world's top oil exporters, both OPEC and non-OPEC, agreed to cut supplies in late November.
"It feels like there is a bit of growth in 2017 (in the energy business)," Waterman told Reuters.
The company, which is buying U.S.-based SummitReheis for an enterprise value of $360 million to expand its personal care chemicals business, said it expected the deal to close by mid-2017.
Elementis said its adjusted profit before tax fell to $89.7 million in the year ended Dec. 31, from $115.2 million, a year earlier.
The company's stock was down 3.5 percent at 288.80 pence in morning trading. (Reporting by Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri)