OREANDA-NEWS. Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2016 results with revenues of $2,395 million, net income of $137 million and adjusted EBITDA of $256 million.

Peter R. Huntsman, our President and CEO, commented: “At the beginning of 2016, we announced our intent to generate more than $350 million of free cash flow. We delivered a record $686 million of free cash flow in 2016, including $117 million during the fourth quarter. We used this cash, together with proceeds from the sale of our European surfactants business, to repay $560 million in debt, significantly strengthening our balance sheet. “As I look at the past year, I am impressed by the quality of earnings that our businesses have achieved and how we are positioned moving into 2017. MDI urethanes continues to show steady and impressive growth, with differentiated MDI sales volumes growing 6% compared to last year and representing 85% of MDI urethanes EBITDA. Advanced Materials and Textile Effects have become solid performers with steady and modestly improving earnings. Our Performance Products business is poised for recovery in 2017. As TiO2 prices have rebounded, our Pigments and Additives division saw earnings double from 2015 and we expect earnings to improve meaningfully in 2017, due largely to price increases in TiO2 and the cumulative benefits of restructuring. “We are also delivering on our commitment to separate the TiO2 business through the spin-off of Venator. We continue to make steady progress with the IRS to allow Huntsman to retain a 40% economic interest in Venator.”

Segment Analysis for 4Q16 Compared to 4Q15 Polyurethanes The increase in revenues in our Polyurethanes division for the three months ended December 31, 2016 compared to the same period in 2015 was primarily due to higher MDI average selling prices and higher MDI sales volumes. MDI average selling prices increased sharply in Asia primarily as a result of a competitor’s outage. MDI sales volumes increased primarily due to higher demand in the Americas region. The decrease in adjusted EBITDA was primarily due to lower MTBE margins, partially offset by higher MDI margins and sales volumes. Three months ended Twelve months ended December 31, September 30, December 31, In millions, except per share amounts 2016 2015 2016 2016 2015 Revenues $ 2,332 2,395 $ 2,363 $ 9,657 $ 10,299 $ Net income $ 9 137 $ 64 $ 357 $ 126 $ Adjusted net income(1) $ 124 72 $ 91 $ 377 $ 492 $ Diluted income per share $ 0.02 0.53 $ 0.23 $ 1.36 $ 0.38 $ Adjusted diluted income per share(1) $ 0.51 0.30 $ 0.38 $ 1.57 $ 2.00 $ Adjusted EBITDA(1) $ 240 256 $ 272 $ 1,127 $ 1,221 $ Net cash provided by operating activities 240 $ 188 $ 405 $ 1,088 $ 575 $ Free cash flow(3) $ (29) 117 $ 300 $ 686 $ (30) $ See end of press release for footnote explanations - 3 - Performance Products The decrease in revenues in our Performance Products division for the three months ended December 31, 2016 compared to the same period in 2015 was primarily due to lower average selling prices. Average selling prices decreased primarily in response to lower raw material costs and competitive market conditions. The decrease in adjusted EBITDA was primarily due to lower margins in our amines and maleic anhydride businesses. Advanced Materials The decrease in revenues in our Advanced Materials division for the three months ended December 31, 2016 compared to the same period in 2015 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to soft demand for low value business in our coatings and construction market, partially offset by growth in our electrical and electronic markets. Average selling prices decreased primarily as a result of lower raw material costs. Adjusted EBITDA increased as lower costs for raw materials and fixed costs more than offset lower sales volumes and lower average selling prices. Textile Effects Revenues in our Textile Effects division for the three months ended December 31, 2016 compared to the same period in 2015 were essentially flat as lower local currency average selling prices were offset by higher sales volumes. Average selling prices decreased primarily due to lower raw material costs. Sales volumes increased in in Asia, Europe and South America. The increase in adjusted EBITDA was primarily due to higher volumes and lower raw material costs. Pigments and Additives The increase in revenues in our Pigments and Additives division for the three months ended December 31, 2016 compared to the same period in 2015 was due to higher average selling prices and higher volumes. Average selling prices increased primarily due to improved business conditions for titanium dioxide. Sales volumes increased broadly across all of the business. The increase in adjusted EBITDA was primarily due to higher average selling prices for titanium dioxide and lower costs resulting from restructuring savings. Corporate, LIFO and Other Adjusted EBITDA from Corporate, LIFO and Other decreased by $14 million to a loss of $52 million for the three months ended December 31, 2016 compared to a loss of $38 million for the same period in 2015. The decrease in adjusted EBITDA was primarily the result of an increase in LIFO inventory valuation expense and an increase in unallocated foreign currency exchange losses.

Liquidity, Capital Resources and Outstanding Debt As of December 31, 2016, we had $1,208 million of combined cash and unused borrowing capacity compared to $1,023 million as of December 31, 2015. We repaid $560 million in debt during 2016, including an early repayment of $260 million on our 2015 Extended Term Loan B on December 30, 2016. During 2016 we spent $421 million on capital expenditures compared to $663 million in 2015. We expect to spend approximately $400 million annually on capital expenditures in 2017.