Patrick Williams: A lot of it is product differentiation mix, focused on raw materials an expansion of the business and that continues to happen in that business that we are discussing today. It’s been about, that’s a difficult business in this environment. But our group and the one thing about fuel specialties is when you get into a high inflationary and a recessionary environment, you don’t really see the high negativity you do in most consumer-facing markets. This is one of those and all of our folks in that business have done a really good job managing their way through it. And we’re starting to see some improvement in total volumes as well, which is key to the business.
Michael Harrison: All right. And then the last question for me is kind of more on the guidance front. I guess as you roll up your expectations for the different segments. Any thoughts on what that could imply for EPS in Q1 and I guess in 2024, compared to the 609 you did this year, this past year?
Ian Cleminson: So just thinking about Q1, the consensus out there is around about a $1 and $0.60, I believe. And we’ll be, we expect to be around about $1.60 for the first quarter. As we move into 2024 in full throttle, where our expectation is our oilfield business somewhere between $15 million to $20 million of operating income each quarter. We’re targeting close to $20 million a quarter in Performance Chemicals. And the full year for Fuel specialties should be broadly similar to where it was for this year around about $125 million once you take out the Brazil inventory write-offs. So, you wrap all together and I think you basically come out with a number that’s pretty close to the full-year consensus from our analysts. So, we’d be guiding people for Q1 and for the full year that the numbers that they have are about right, and we can continue to update you as we move through the year.
Operator: We are now going to proceed with our next question. And the question comes from the line of Jonathan Tanwanteng from CJS Securities. Please ask your question.
Jonathan Tanwanteng : Thanks for the follow-up. Just wanted to ask what was the legacy that you dealt with in corporate expenses in the quarter and kind of help me understand the details there?
Ian Cleminson: Yes, Jon, that’s sort of the remediation charges one of our sites where the operations have closed and we’ve just had some changes to scope and costs and it’s a legacy item for us. So, it’s not part of our continuing operations.
Jonathan Tanwanteng: Okay. And was that a TEL business or is that something else?
Ian Cleminson: Yes, you’re correct. It was the old Octane analysis business.
Jonathan Tanwanteng: Okay. Great. And then going forward, you obviously still have a fantastic cash position despite the acquisition raising the dividend. What are your expectations just in terms of use of cash in priority for capital allocation?
Patrick Williams: Jon, I don’t think it changes. The focus is still to increase the dividend that we as we continue to do, focused on organic growth as the market’s rebound and we’re starting to see that. And additionally, continue to look at M&A that fit our portfolio. We made a really nice acquisition in South America. We think there’s a few of those out there that really fit us from a geographic standpoint or a product portfolio, and we’ll continue to look at those acquisitions as we move forward. Number one priority right now is to make sure we integrate the acquisition we just made, and get the synergies and get the growth out of it that we’re expecting. But those are really the three-core use of cash remain the same as they have for a period of time.
Jonathan Tanwanteng: And just one housekeeping question. What’s the run rate corporate expense that you’re expecting going forward?
Ian Cleminson: For the full year, I think it’s going to be somewhere closer to sort of $55 million this year, John.
Jonathan Tanwanteng: 55?
Ian Cleminson: Yes.
Jonathan Tanwanteng: Great.
Operator: We have no further questions at this time. I will now hand back to Mr. Patrick Williams for closing remarks.
Patrick Williams : Thank you all for joining us today and thanks to all our shareholders, customers and Innospec employees for your interest and support. If you have any further questions about Innospec or matters discussed today, please give us a call. We look forward to meeting up with you again to discuss our first quarter 2024 results in May. Have a great day.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect your lines. Thank you.
