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MOSCOW (MRC) -- Huntsman says its
polyurethanes segment is performing well above expectations owing to continued
strength in construction-related markets, faster improvement in automotive
demand, and higher overall margins, reported Chemweek.
The company says third-quarter
results in its other segments are still roughly in line with previous
guidance.
During its second-quarter earnings call on 28 July, Huntsman
forecast a 30% year-over-year (YOY) decline in the segment’s third-quarter
adjusted EBITDA, but the company now expects a figure close to the year-ago
value of USD146 million.
During the second quarter of 2020, the
polyurethanes segment turned in adjusted EBITDA of USD31 million, down 80% YOY,
and revenue of USD730 million, down 28% YOY, both reflecting lower average
selling prices for methylene di-para-phenylene isocyanate (MDI) and lower
overall polyurethanes sales volumes.
As MRC informed before,
in January 2020, Indorama Ventures Public Company Limited (IVL), a global
chemical producer, completed its acquisition of Huntsman’s world-class
integrated oxides and derivative businesses, including a large flagship site on
the US Gulf Coast (USGC) at Port Neches, as well as Chocolate Bayou and Dayton
in Texas, Ankleshwar in India, and Botany in Australia.
The acquisition
is a profitable and growing end applications business along with unique products
and geographical profile among the crowded olefins space. It has a
well-integrated assets base with an extensive infrastructure and future
expansion possibilities. The area is adjacent to many USGC feedstock suppliers.
The cash value of USD2.0 billion makes it the largest acquisition by Indorama
Ventures ever and now our capital employed is nicely spread over plastic,
chemicals and fibers. The transaction value translates to an EV/EBITDA of ~5.7x
and is expected to add substantial synergies to Indorama’s existing 450kta
Ethane/Propane Cracker and our 550kta EO/EG. IVL will now be integrated from
Ethane to PET as well as the high-margin EO and PO derivative
businesses.
Ethylene and propylene are feedstocks for producing
polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report,
PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000
tonnes. High density polyethylene (HDPE) accounted for the main decrease in
imports. At the same time, PP imports into Russia rose in the first six months
of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer
(homopolymer PP) accounted for the main increase in imports.
Huntsman
Corporation is a publicly traded global manufacturer and marketer of
differentiated and specialty chemicals with 2019 revenues of more than USD7
billion. Its chemical products number in the thousands and are sold worldwide to
manufacturers serving a broad and diverse range of consumer and industrial end
markets. The company operate more than 75 manufacturing, R&D and operations
facilities in approximately 30 countries and employ approximately 10,000
associates within its four distinct business divisions. |
