MOSCOW (MRC) -- Albemarle has reported fourth-quarter net income down 6.4% year-on-year (YOY), to USD84.6 million, while net sales declined 11.4%, to USD879.1 million, according to Chemweek.
Adjusted earnings were down 32.4% YOY, to USD1.17/share, short of analysts’ consensus estimate of USD1.30/share, as reported by Refinitiv (New York, New York). Lower YOY results in catalysts and lithium drove the declines, partly offset by improved results in bromine. Adjusted EBITDA was down 25.0% YOY, to USD221.1 million.
Results have improved sequentially, however, and the company’s fourth-quarter adjusted EBITDA exceeded expectations, says Albemarle CEO Kent Masters. “As we continue to rebound from last year's pandemic-related lows, we are accelerating high-return growth in our Lithium and Bromine businesses and maintaining our focus on operational discipline to drive cost and efficiency improvements,” Masters says.
Lithium segment sales fell 12.8% YOY, to USD358.6 million, while segment adjusted EBITDA was down 12.8%, to USD122.1 million. Lower YOY prices were partly offset by higher volumes. Restarts in North America and operating efficiencies are expected improve full-year volumes for 2021.
Bromine specialties segment sales grew 8.2% YOY, to USD263.4 million, while segment adjusted EBITDA increased 10.2%, to USD87.9 million. A rebound in demand following COVID-19 lows drove results higher. Results are expected to improve further this year due to a continued demand rebound and “positive long-term trends in electronics and automotive end markets,” Albemarle says.
Catalyst segment sales declined 30.7% YOY, to USD195.7 million, while segment adjusted EBITDA declined 71.3%, to USD22.1 million. Volumes fell YOY for fluid catalytic cracking (FCC) and hydroprocessing catalysts, although FCC catalyst volumes rose sequentially. Catalysts results are expected to flat for full-year 2021, due to changes in customer order patterns in North America.
As MRC reported earlier, in April 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation. The acquired business primarily develops and manufactures proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators used in the production of plastic resins. The transaction also includes a comprehensive series of highly optimized Ziegler-Natta catalysts for polyethylene production. The acquisition includes production plants in Baton Rouge, LA and Yeosu, South Korea; R&D and pilot plant capabilities; and an extensive portfolio of intellectual property.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
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