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MOSCOW (MRC) -- Stepan reports net
income of USD30.9 million, up 40.4% year-on-year (YOY) on higher demand for
cleaning products amid the COVID-19 pandemic and an insurance recovery related
to a power outage in early 2020. Adjusted earnings of USD1.42/share was 29.1%
higher YOY and beat the analysts’ consensus estimate of USD1.08, as reported by
Refinitiv (New York), said Chemweek.
Net
sales increased 11.2% YOY, to USD494.7 million. Surfactant operating income was
USD43.3 million versus USD33.9 million in the prior year. This increase was
primarily attributable to an 8% increase in global sales volume as well as
improved product and customer mix. The sales volume growth was principally
due to higher demand for cleaning, disinfection and personal wash products as a
result of COVID-19.
Polymer operating income was USD22.8 million versus
USD11.4 million in the prior year. This increase was mostly attributable to an
insurance recovery related to the first quarter 2020 Millsdale, IL plant power
outage and a 7% increase in global Polymer sales volume versus prior year.
Global rigid polyol volume growth of 10%, principally in Europe, more than
offset lower demand within the phthalic anhydride business.
Specialty
Product net sales were USD19.6 million, a 6% increase YOY. Sales volume
was down 1% between quarters and operating income improved 2%.
Stepan
expects surfactant volumes in consumer end markets to remain strong and for
volumes to agricultural and oilfield markets to improve slightly in 2021. Global
demand for rigid polyols has slowly begun to recover from delays and
cancellation related to the pandemic, and a modest pace for recovery is expected
to continue in 2021. “Despite recent challenges, we believe the long-term
prospects for rigid polyols remain attractive as energy conservation efforts and
more stringent building codes should increase demand,” says F. Quinn Stepan,
Jr., Chairman and Chief Executive Officer. “We believe our acquisition of
INVISTA's aromatic polyester polyol business and two manufacturing sites
positions us to meet long term demand growth. We anticipate our Specialty
Product business results will improve slightly year-over-year."
As MRC informed before,
Stepan conducted planned maintenance at its 90,000 tonnes/year phthalic
anhydride (PA) plant Millsdale, Illinois, US, from early October to end-October,
2020.
Phthalic anhydride is widely used in for the production of paints
and varnishes and plasticizers for PVC products. In a small amount it is used in
the manufacture of rubber products, tires. In addition, it is used in the light,
pharmaceutical and electrical industries.
We remind that
Russia's output of chemical products rose in November 2020 by 9.5% year on year.
At the same time, production of basic chemicals increased in the first eleven
months of 2020 by 6.6% year on year, according to Rosstat's data. According to
the Federal State Statistics Service of the Russian Federation, polymers in
primary form accounted for the greatest increase in the January-November 2020
output. November production of polymers in primary form rose to 896,000 tonnes
from 852,000 tonnes in October. Overall output of polymers in primary form
totalled 9,240,000 tonnes over the stated period, up by 17.1% year on
year. |
