MOSCOW (MRC) -- US-based styrenics producer Trinseo reported a first-quarter net income, up from a loss reported during the same time in 2020 because sales rose faster than costs, said the company.
The following shows the company's Q1 performance. Figures are in millions of dollars. Trinseo attributed the rise in revenue to higher volumes in all of its segments except for Feedstocks. Prices also rose, mostly because of Trinseo passing through higher costs for raw materials.
Income rose mainly because of higher margins, primarily in Trinseo's Base Plastics, Polystyrene and Feedstocks segment. In Feedstocks, March styrene margins reached their highest levels in more than 20 years.
Revenue for Latex Binders rose mainly because the company passed through higher costs in raw materials. Sales volumes rose for textile; board and specialty paper; and coatings, adhesives, sealants and elastomers (CASE). These were partially offset by declines in graphical paper.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell because lower margins more than offset higher volumes. Trinseo attributed the lower margins to a lag between product prices and sharply increasing styrene costs.
Synthetic Rubber sales rose mainly because of higher volumes, particularly for solution styrene butadiene rubber (SSBR). Volumes for SSBR rose because of Trinseo growth programmes and the continued recovery in demand for tyres. Revenue for Polystyrene rose because the company passed through higher costs for styrene. Volumes rose because of higher demand for appliances and consumer electronics.
It was reported before, Trinseo will build a full commercial scale polystyrene (PS) recycling plant in Tessenderlo, Belgium that is expected to be operation in 2023. The company will use depolymerisation which breaks down polymers into their precursors to chemically recycle the material. The recycled PS will have identical properties with virgin PS.
According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 192,000-203,000/tonne, CPT Moscow, including VAT, whereas HIPS prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.
Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC