IOSP
#Yes.
I wouldn't say prices to go up, <UNK>.
What I would say is that as the volume goes up, because of the fact that you're not tracking an SAR cost directly to your volume cost, that you will start seeing better operating margins, not necessarily better gross margins.
That's correct.
You know, I would say obviously if oil prices start dropping back down below that $45 level, you could see some volume movements.
But I think on a pricing ---+ from a ---+ from a gross margin standpoint we're still pretty steady there.
It would be more of a volume impact than it would anything else.
Yes, <UNK>, this is <UNK>.
I think you started to say we didn't really experience that much price pressure.
If you look back the our gross margins in our oil field business over the last four to six quarters, we have been really disciplined in maintaining prices and maintaining gross margins.
So I think the point <UNK> is making is that we've already got that discipline built in.
As volumes increase we will get more operating leverage out of the business.
No.
I'd keep it probably where it is, <UNK>.
Which segment are you talking about, <UNK>.
Sorry, I missed that.
For us the negative mix would mean we're selling at a different proportion of lower-margin business.
Are you referring to oil field here, <UNK>.
Because we didn't have a negative mix in oil field so I guess I'm a little confused, <UNK>, to the question.
We had a little negative mix in fuels but not in oil field.
(Multiple Speakers).
No problem, <UNK>.
Yes.
That's a great question.
You know, obviously when we looked at buying it, it was more for our Personal Care and Home Care sector.
As we got into the business and started looking at the technology trees, we realized a lot of the technologies they have internally and a lot of technology they were working on for quite some time fit other aspects of our portfolio.
So they have technology that goes into the oil field, they have some technology that goes in the AG market, some other areas.
And I think like ---+ as well along that we found it to be a very, very good group of people, very professional, willing to really go the extra effort to build this business.
I think when we start looking at culture and you start looking at purchasing companies one of the first things you look at, what's the culture like.
Because if you have to constantly change culture your going to be chasing your tail constantly.
For us, we felt like the culture fit.
We feel they got a great product line.
We feel like with the right attention that we can really build this business even further than we anticipated.
Sure.
Yes.
We're looking in mostly tuck-in.
We don't need a structural change.
And I think if you look at what other business arrangements be, it could be a situation where we do a joint venture in another country to get a geographical expansion.
It could be a product joint venture.
It could be a shared technology.
So there's multiple ways you can go without always spending money to buy somebody.
That's where I think the creative minds come in and grow this business and that's how we have constantly grown it.
I don't have to go out and buy constantly to grow.
I can do it other means and ways.
Thank you, <UNK>.
Thanks, <UNK>.
Good morning, <UNK>.
Yes.
If you look at our business Fuel Specialties we sell to the mining industry.
So naturally when we bought the Huntsman business and realized a very small portion of their portfolio does sell into the ag, chem and mined market so there are some natural just adjacent markets we could take it into.
Now, the purchase was more for the home care, Personal Care, but these are some adjacent markets that have great products.
The mulsifiers, demulsifiers, products that go into markets we are already very aware of and some of the markets we are already in just not with this specific product line.
So it is an area that we can expand into.
What do you mean by on the market, <UNK>.
Sorry.
They'll sell into a company who makes fertilizers, they'll sell the molecules who then sell it on to the customer.
Yeah.
You won't see us do that.
Thank you.
Thank you all for joining us today.
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 on this call, please give us a call.
We look forward to meeting up with you again to discuss our Q1 results in 2019 in May.
Thanks.
Bye-bye.
