Innospec and IJM Announce New Partnership to Strengthen Protection for Palm Oil Workers in Southeast Asia

ENGLEWOOD, Colo., June 05, 2024 (GLOBE NEWSWIRE) -- Innospec Inc. (NASDAQ:IOSP), a global leader in specialty chemicals, is proud to announce that its Performance Chemicals business has entered into a social partnership with International Justice Mission (IJM).   IJM is a global nonprofit organization working with local authorities in 33 communities to combat modern slavery and violence against women, rescuing and restoring victims, holding perpetrators accountable, and strengthening the local public justice systems to build a safe future that lasts.

The partnership will focus on addressing the pressing issue of forced labor and labor trafficking in the Southeast Asia palm oil sector. By addressing the root causes of modern slavery and empowering key stakeholders, the collaboration will strengthen protection for palm oil workers and represents a significant step in the fight against forced labor.

As members of the Roundtable on Sustainable Palm Oil (RSPO) since 2013 and Action for Sustainable Derivatives (ASD) since 2020, Innospec has had a long-term commitment to source palm-based raw materials responsibly. Aligning to IJM's mission will help Innospec to enhance this commitment, and ensure our products comply with the company's NDPE (no Deforestation, no Peat, no Exploitation) policy.

Bruce McDonald, President of Performance Chemicals at Innospec said, "As a global specialty chemical company, that uses palm based raw materials in some of our products, we recognize the important role we must play in driving the protection of workers in the palm oil industry. This is why we are excited to support IJM's mission in combatting modern slavery through the prevention of worker exploitation. We are passionate about IJM's work to create systemic change by strengthening justice systems and are excited about the positive impact we can bring about in the palm oil industry through this partnership."

Andrey Sawchenko, Regional Vice President, Forced Labor Programs said, "Palm oil is used widely in personal care and household products such as shampoos, shower gels and detergents. Consumers, enjoying the benefit of these items, are likely not aware that forced labor slavery is a real possibility for some workers in this industry. This reality makes the partnership between Innospec and IJM – who share a common goal of combating instances of this illegality within the palm industry – an urgent and critical collaboration. Our partnership provides some of the crucial resources needed to strengthen worker access to remedy if needed, and boosts collaboration with local authorities to protect workers long term."

Use of Non-GAAP Financial Measures

The information presented in this press release includes financial measures that are not calculated or presented in accordance with Generally Accepted Accounting Principles in the United States (GAAP). These non-GAAP financial measures comprise adjusted EBITDA, income before income taxes excluding special items, net income excluding special items and related per share amounts together with net cash. Adjusted EBITDA is net income per our consolidated financial statements adjusted for the exclusion of interest income, net, income taxes, depreciation and amortization, foreign currency exchange gains, legacy costs of closed operations and adjustment to fair value of contingent consideration. Income before income taxes, net income and diluted EPS, excluding special items, per our consolidated financial statements are adjusted for the exclusion of amortization of acquired intangible assets, foreign currency exchange gains, legacy costs of closed operations, adjustment to fair value of contingent consideration and adjustment of income tax provisions. Net cash is cash and cash equivalents less total debt. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are provided herein and in the schedules below. The Company believes that such non-GAAP financial measures provide useful information to investors and may assist them in evaluating the Company's underlying performance and identifying operating trends. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and the Company has determined that it is appropriate to make this data available to all investors. While the Company believes that such measures are useful in evaluating the Company's performance, investors should not consider them to be a substitute for financial measures prepared in accordance with GAAP. In addition, these non-GAAP financial measures may differ from similarly titled non-GAAP financial measures used by other companies and do not provide a comparable view of the Company's performance relative to other companies in similar industries. Management uses adjusted EPS (the most directly comparable GAAP financial measure for which is GAAP EPS) and adjusted net income and adjusted EBITDA (the most directly comparable GAAP financial measure for which is GAAP net income) to allocate resources and evaluate the performance of the Company's operations. Management believes the most directly comparable GAAP financial measure is GAAP net income and has provided a reconciliation of adjusted EBITDA and net income excluding special items, and related per share amounts, to GAAP net income herein and in the schedules below.

About Innospec Inc.

Innospec Inc. is an international specialty chemicals company with approximately 2,400 employees in 22 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific.  The Performance Chemicals business creates innovative technology-based solutions for our customers in the Personal Care, Home Care, Agrochemical, Mining and Industrial markets. The Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions. Oilfield Services provides specialty chemicals to all elements of the oil and gas exploration and production industry. 

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Such forward-looking statements include statements (covered by words like "expects," "estimates," "anticipates," "may," "could," "believes," "feels," "plans," "intends" or similar words or expressions, for example) which relate to earnings, growth potential, operating performance, events or developments that we expect or anticipate will or may occur in the future. Although forward-looking statements are believed by management to be reasonable when made, they are subject to certain risks, uncertainties and assumptions, and our actual performance or results may differ materially from these forward-looking statements. Additional information regarding risks, uncertainties and assumptions relating to Innospec and affecting our business operations and prospects are described in Innospec's Annual Report on Form 10-K for the year ended December 31, 2023 and other reports filed with the U.S. Securities and Exchange Commission. You are urged to review our discussion of risks and uncertainties that could cause actual results to differ from forward-looking statements under the heading "Risk Factors" in such reports. Innospec undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:

Corbin Barnes

Innospec Inc.

+44-151-355-3611

[email protected]