Tronox Limited reported second quarter 2015 revenue of $617 million compared to $490 million in the second quarter 2014 and $385 million in the first quarter 2015. Adjusted EBITDA was $116 million, excluding $49 million of net lower of cost or market (LCM) charges, compared to $103 million, excluding net non-cash LCM credits of $5 million, in the year-ago quarter and $73 million, excluding net non-cash LCM charges of $9 million, in the prior quarter. Adjusted net loss attributable to Tronox Limited in the second quarter was $81 million, or $0.70 per diluted share, versus breakeven net income, or $0.00 per diluted share, in the year-ago quarter and a loss of $51 million, or $0.44 per diluted share, in the first quarter 2015.

Tom Casey, chairman and CEO of Tronox, said: “In our first quarter of operating two vertically integrated businesses, we delivered a high level of adjusted EBITDA and generated significant cash. Our two operating businesses, TiO2 and Alkali, generated adjusted EBITDA of $135 million in the quarter excluding net non-cash LCM charges. With that level of adjusted EBITDA, and after capital expenditures of $61 million, our businesses delivered $74 million of cash to the company. This quarter’s performance demonstrated our cash generation strength even under difficult market conditions in our TiO2 business. We are increasing our cash generation across the company, including reducing our operating costs and working capital. In the second quarter, we signed a contract with a non-pigment company to sell high-quality ilmenite that we had previously stockpiled in a transaction that will produce cash of approximately $35-37 million over the next six quarters. This is but one example of our heightened focus on cash generation.”

Casey continued: “Our TiO2 segment generated adjusted EBITDA of $85 million and delivered cash of $28 million in the second quarter, despite 5 percent lower average selling prices for pigment products compared to the first quarter. We have taken the appropriate steps in our pigment and feedstock operations to reduce production volumes to reduce inventory without affecting sales volumes, as demand will be met from reduced production levels and finished goods inventories. Our Alkali business continued its strong operating performance in its first quarter within Tronox, generating $50 million of adjusted EBITDA and delivering $46 million of cash. Alkali continues to operate in a sold-out mode driven by strong export demand growth and a continued recovery in the domestic market. The benefits of having Alkali in our portfolio are many, but its high cash generation is particularly valuable in this current period of depressed TiO2 conditions.”

Casey concluded: “With the cash generation strength of our operating businesses, coupled with our cash generation initiatives sourced from operating cost and working capital reductions, as well as capital expenditure reductions, we expect to generate positive free cash flow in 2016 after capital expenditures, interest expense and dividend payments. We intend to focus this cash surplus on deleveraging and providing for future growth of the company.”