David Silver: Okay. And then maybe just a somewhat broader question about resourcing or supporting your growth. But when I read through the press release, Patrick, I think you made kind of constructive comments near term, medium term about each of your 3 segments. I’d just like to hone in on two of them, personal — Performance Chemicals and Oilfield. But those are areas, I think, where to meet the new higher level of demand that you’re set up for, you would need new — additional resourcing in terms of maybe not just personnel, but logistics, maybe some technical support, et cetera. How do you think Innospec is positioned here right now for the higher growth or higher level of business you anticipate over, let’s say, the next 6 to 12 months? And maybe just a comment on talent acquisition and being able to get the people that you think you need to meet customer requirements?
Patrick Williams: Sure, David. Yes, it’s a good question. I think we’re well positioned right now for the current growth that we’re starting to see in all the businesses. I think, as you just alluded to, when you start moving up to the full $70 million expansion of what that means in revenue and what that means in technical service, supply chain, customer support, et cetera, you will have to bring some people on. We’re constantly looking at talent depending on where we’re going to place that talent and what our needs are. I think we’ve been a fairly attractive company to work for because we have a strong balance sheet, because we really work with incoming talent to train them into not only this business, but what the needs are for the future of the company and where they fit in for the future of the company.
So we do a lot of things in regard to attracting talent. The good thing right now is we’re very well set. It would be very minimal, the amount of people that we would need for the current growth rates that we’re looking at. So it’s not like we’re having to go out there and blanket the field to look at multiple people. It’s a pretty limited amount of people that we’re looking at to add on.
David Silver: Okay. And then maybe just a couple of smaller or more focused questions, and then I’ll get back in queue. But one or two of my companies have had kind of a bit of a margin squeeze here, not so much from a management business perspective, but from an accounting perspective. And I guess it’s maybe a FIFO versus LIFO issue, but those that have used FIFO have found that running maybe the costs from 60 to 90 days ago through the income statement and pairing it up with maybe the lower price points today, maybe on a cost plus or a fixed margin arrangement, have led to a little bit of a squeeze from an accounting perspective here. And I just wanted to ask you about that, if that’s an issue with your company or whether you think the current level of pricing is pretty well paired up with the accounting per unit cost items? Maybe just I will stop there?
Ian Cleminson: Yes, David, we’re pretty well paired up. And we have seen some pressure in our Fuel Specialties and our Performance Chemicals business, where we’ve probably carried a little bit more inventory than we would like. We’re working hard on lowering those levels of inventory. We’re still seeing inflationary pressure though. Prices are not coming down across the board. Inflation is still there, and that’s still putting cost pressure across the business, but what’s pleasing for us is that the way the business is managing the way through that. You’ve seen improved gross margins in Fuel Specialties this quarter, and you’ve seen improved gross margins in Performance Chemicals. In fact, Performance Chemicals tipped over 20% for the first time this year.
So we’re managing our inventory. We’re managing our inventory volumes and our pricing well. Fuel Specialties is well understood in terms of the delay and the lag in pricing that we have, so we’re not overly concerned. We just want to make sure that we’re not carrying too much inventory for various reasons. But it’s not been a huge burden for [indiscernible] it’s something that we do watch very carefully, David.
David Silver: Okay. Very good. And then maybe one last one, again, on Fuel Specialties here. But — I may have missed this, but I believe in your prepared remarks, there was not really a mention of the role of aviation fuel additives as part of your overall mix, and maybe as a source of gross margins being a little bit below your target range. But maybe just an update on how that portion of your Fuel Specialties mix is progressing? And then also maybe just a comment on some of the newer initiatives, stationary power, et cetera?
Patrick Williams: Yes. I mean, is a very small portion of Fuel Specialties, and it gets smaller as we move forward. There is a lot of heat going on in regards to getting out of low lead gasoline, small aircraft. But we’ve been seeing that for years, so it’s really nothing new. Now do I think it could come before 2030 or 2032? It could. We’re well prepared for it. But thankfully, it’s a very, very small portion of Fuel Specialties. But we’ll do what the industry needs. We’ll supply the product as they need, and obviously, we’ll take it out in the market when it’s time. But I think we’re well positioned to deal with AvTEL . It’s not as big of a product line in Fuel Specialties as we move forward. In Fuel Specialties, as you just said, is moving into greener paths, and that’s where our focus is in this business.
Operator: [Operator Instructions]. The next question comes from the line of Jon Tanwanteng from CJS Securities.
Jonathan Tanwanteng: I was just trying to get a little more color on your fuel additives. Volume down 4% this quarter, down substantially more in the first half. I’m just wondering, are you selling to end demand at this point? Have you lost share? Or is this just where the market is? And kind of what you expect going forward just from a volume perspective?
Patrick Williams: No, just for the market. We really haven’t lost any market share. I mean it’s just — this business just ebbs and flows. And as we always say it’s not recessionary proof, but it’s almost recessionary proof. We’ll have the ups and downs in quarters, but it’s not necessarily that we’ve lost any big customers.
Jonathan Tanwanteng: Okay. Great. And then is there any update on the potential recoveries from the Brazilian issue you had earlier this year?
Patrick Williams: Not really. We’re going through the legalities of — trying through the insurance and some civil and criminal legalities over in Brazil. We’ve replaced the individuals that were in charge of that business and we’ve got new individuals running it, and we’re off to the races and getting things fixed and improved.
