Westlake Chemical Q3 2019 earnings top estimates, sales lag

MOSCOW (MRC) -- Westlake Chemical Corporation saw lower profits in the third quarter of 2019, hurt by reduced sales prices for its major products, as per the company's press release.

The chemical maker posted a profit of USD158 million or USD1.22 per share for the quarter, down around 49% from USD308 million or USD2.35 it earned in the year-ago quarter. However, earnings topped the Zacks Consensus Estimate of USD1.02.

Sales fell roughly 8% year over year to USD2,066 million. The figure also missed the Zacks Consensus Estimate of USD2,131.4 million.

Lower global sales prices for key products due to trade uncertainties and a slower global economic growth were, in part, masked by reduced ethane feedstock and fuel costs.

Sales in the Olefins segment fell 17% year over year to USD448 million in the quarter. Operating income in the segment tumbled roughly 43% to USD92 million. The decline was mainly due to reduced sales prices for major products resulting from higher olefins production.

The Vinyls segment generated sales of USD1,618 million, down around 6% year over year. Operating income in the segment was USD153 million, down around 39% year over year. The decline was caused by reduced sales prices for caustic soda and PVC (polyvinyl chloride) resin.

Westlake Chemical ended the quarter with cash and cash equivalents of USD1,437 million, up around 82% year over year. Long-term debt was USD3,424 million, up 28% year over year.

Westlake Chemical noted that it is facing challenges from a difficult pricing environment due to slower global growth as a result of trade tensions. Amid this backdrop, the company remains focused on controlling costs and investing in a number of initiatives globally which it expects to boost long-term value for shareholders.

Shares of Westlake Chemical have lost 6.2% in a year’s time compared with the industry’s 15.9% decline.

In February 2018, as MRC informed before, Westlake Chemical announced plans to expand its capacities for the production of PVC and VCM at three of its chemical facilities. Two of the plants are located in Germany (Burghausen, Gendorf) and one is located in Geismar, Louisiana. The expansions in Burghausen and Geismar are expected to be completed in 2019. The Gendorf expansions are expected to be completed in 2020 and 2021.

According to MRC's ScanPlast report, Russia's overall PVC production reached 809,000 tonnes in the first ten months of 2019, up by 3% year on year. At the same time, not all Russian producers raised their output.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

Milliken PP clarifier recognized by APR for recyclability

MOSCOW (MRC) -- Milliken Chemical (Spartanburg, South Carolina) says its clarifying agent for polypropylene (PP), Millad NX 8000, has received Critical Guidance Recognition from the Association of Plastics Recyclers (APR) for its compatibility with plastic packaging recycling, according to Chemweek.

Milliken says the product is the first and, to date, only PP clarifying agent to be so recognized.

Allen Jacoby, senior vice president/plastics additives at Milliken, says Millad NX 8000 supports customer sustainability efforts not only by virtue of its recycling characteristics, but also because PP resin that includes the agent can be processed at lower temperatures than PP using traditional clarifiers.

"Its environmental advantages are helping to drive strong global demand," he says, noting that the company is building a new manufacturing plant that will boost its Millad NX 8000 capacity by 50% when it goes online next year.

As MRC wrote before, at this spring’s Hispack 2018 trade fair in Spain, Milliken Chemical showcased containers of NX UltraClear polypropylene made using its Millad NX 8000 clarifier, and highlighted why that material is the preferred solution for packaging.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Milliken is an innovation company that has been exploring, discovering, and creating ways to enhance people’s lives since 1865. The company creates coatings, specialty chemicals, and advanced additive and colorant technologies that transform the way we experience products from automotive plastics to children's art supplies.
MRC

Natural Farm collaborates with Braskem to package dog food in PE bioplastic

MOSCOW (MRC) -- Braskem, the largest polyolefins producer in the Americas and leading producer of biopolymers in the world, and Natural Farm, a leading provider of 100% natural pet food based in Atlanta, has recently announced the adoption of Braskem's I'm greenTM Polyethylene (PE) bioplastic for the consumer packaging of its Natural Farm'sTM line of high-quality pet food products, as per Plastemart.

Marcus Maximo, Founder and CEO of Natural Farm stated, "Natural Farm was founded on a passion for dogs and the love we share with our pets. Our mission is to provide the highest quality, all-natural chews for dogs of all shapes and sizes. We're delighted that as well as preparing the highest quality dog treats, we're equally focused on being responsible environmental stewards. We're excited to have found the perfect partner with Braskem and its I'm greenTM PE bioplastic, allowing Natural Farm so ensure we're being socially responsible with our packaging."

Natural Farm is one of the few companies in the pet retail space who own and operate their own facility and only source products from their own factory. This self-sufficiency gives Natural Farm unparalleled control and supervision at every stage of product manufacturing. The Natural Farm commitment stretches from its fields to its packaging, consistently supporting its people and the local communities where they live and operate. This spirit of "Care, Quality, and Transparency" extends to everything Natural Farm creates through its 360 Degree Plan towards sustainability. This includes integrating 51% bio-based, fossil fuel-free and fully recyclable, I'm green PE bioplastic into its packaging. Natural Farm also donates a portion of its proceeds to helping animals in local community shelters.

Joe Jankowski, commercial Manager for Braskem's Renewables team in North America, commented, "Natural Farm's dedication to providing high-quality pet food and their commitment to doing so in a responsible, eco-friendly manner makes Natural Farm a perfect match for Braskem's I'm greenTM PE bioplastic."

Cultivation of sugarcane used in the production of I'm greenTM Polyethylene captures carbon dioxide (CO2) and releases oxygen (O2), which means Braskem's bioplastic has a negative carbon footprint. From a cradle-to-gate life-cycle perspective, every 1kg of I'm greenTM PE used in the production process equates to 3.09 kg of CO2 captured from the atmosphere. I'm greenTM PE is part of Braskem's broader commitment to a more circular economy as well as more sustainable solutions for society as a whole.

As MRC informed earlier, in October 2019, Braskem, formally launched its new I'm green TM Recycled polypropylene (PP) in the United States. The roll-out of Braskem's new I'm green TM Recycled polypropylene represents one of the first new offerings under the expanded I'm green TM product portfolio.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

EPS imports to Belarus up 4% in Jan-Sep 2019

MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) into Belarus rose in the first three quarters of 2019 by 4% year on year, totalling 9,600 tonnes, according to MRC's DataScope report.


September EPS imports into the country grew by 2% from August to 1,210 tonnes from 1,190 tonnes. Imports of material to the Republic of Belarus were 1,130 tonnes in September 2018.

Russia is the main EPS importer to Belarus.

Imports of Russian material to the Belarusian market fell in the first nine months of 2019 by 15% year on year: from 7,200 tonnes in January-September 2018 to 6,100 tonnes. The share of EPS imports from Russia in the total shipments to the country also decreased in the first three quarters of 2019 to 63% from 72% a year earlier.

Shipments of Russian EPS to the region were 812 tonnes in September versus 834 tonnes in August, whereas imports of material were 788 tonnes in September 2018.

MRC

HIPS and GPPS imports to Belarus rise by 12% in Jan-Sep 2019

MOSCOW (MRC) -- Overall imports of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Belarus grew in the first three quarters of 2019 by 12% year on year to 28,800 tonnes, according to MRC's DataScope report.

This figure was at 25,800 tonnes in January-September 2018.


GPPS and HIPS imports from Russia into the country accounted for 81% of the total imports in the first nine months of 2019 or 23,500 tonnes, up by 2,700 tonnes year on year.

Imports of material to the Belarusian market did not change significantly in September, totalling 3,400 tonnes, as a year earlier. September GPPS and HIPS shipments into the country dropped by 4% from August 2019 (3,600 tonnes).

September 2019 imports of Russian material into Belarus decreased by 4% year on year to 2,900 tonnes from 3,000 tonnes a year earlier, August 2019 shipments were 2,900 tonnes.

MRC