Venator Materials PLC (NYSE:VNTR) reported Q4 EPS of ($0.20), $0.27 better than the analyst estimate of ($0.47). Revenue for the quarter came in at $366 million versus the consensus estimate of $374.7 million.
Strategic Operational and Capital Structure Review
We are undertaking an in-depth strategic review of our business to improve our operations, strengthen our liquidity position, and establish a sustainable capital structure. We have appointed Moelis & Company and Kirkland & Ellis as respective financial and legal advisors, in addition to Alvarez & Marsal as the previously engaged operational advisor, to assist with strategic review and engagement with stakeholders.
We continue to operate our Scarlino TiO2 facility at one third of its 80,000 ton nameplate capacity to reduce the rate at which the remaining gypsum capacity is consumed. At the current operating rate, we will soon have insufficient capacity for the gypsum produced and as a consequence expect to stop production during the second quarter of 2023. If we do not receive approvals for additional gypsum storage capacity by the end of the first quarter of 2023, we may permanently close the site and subsequently incur associated site closure costs.
Following the COVID-19 pandemic and ongoing weak demand in Asia there has been lower demand for our fibers and active materials TiO2 products which are manufactured at our 50,000 ton Duisburg TiO2 facility. This manufacturing site has been significantly impacted by higher inflationary costs resulting in unsustainably low TiO2 contribution margins. We have taken steps to reduce the economic impact on our business by shutting down the site during the fourth quarter of 2022 and first quarter of 2023 and by furloughing most of our employees at the site. We are in the process of restarting production for both TiO2 and functional additives in the first quarter of 2023, however we do not believe it is economically viable to continue TiO2 production longer term. We therefore intend to permanently close TiO2 production at our Duisburg site unless economic conditions meaningfully improve. As a result, we will engage with the relevant works council when required. We intend to transfer the production of certain specialty TiO2 products to other sites with lower manufacturing costs.
Along with our advisors, we have commenced discussions with key stakeholders, as we evaluate all options to establish a sustainable capital structure. We welcome continued dialogue with our shareholders and debtholders on supporting Venator through this process. In the event that the strategic review concludes there is a need for deleveraging and/or equitization of part of Venator's debt, this will very likely result in material dilution of the existing share capital.