Trinseo reported Q1 net income

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

Shell forms alliance with Arbios Biotech in pursuit of a low-carbon intensity, circular-economy focused biorefinery

MOSCOW (MRC) -- Shell Catalysts & Technologies and Arbios Biotech, a joint venture between Licella and Canfor, have formed a new global alliance aimed at utilizing SC&T’s upgrading technology capability in the pursuit of a low-carbon intensity, circular-economy focused biorefinery, according to Hydrocarbonprocessing.

Arbios Biotech was formed to commercialise Licella’s Cat-HTR platform, a globally leading hydrothermal liquefaction (HTL) technology, for various forms of wood and post-consumer biomass around the world, particularly in North America, South America and Europe. The Cat-HTR uses near or at supercritical water to create high-quality biocrude, a renewable and sustainable bio oil for the circular economy.

This alliance between Arbios Biotech and SC&T anticipates that Shell upgrader units will work in concert with commercial Cat-HTR plants, strategically located near aggregated post-consumer biomass feedstock sources. By linking SC&T upgrader units with Cat-HTR plants, Arbios Biotech would have the capability to upgrade biocrude to finished products in one continuous, efficient process.

As MRC reported before, US refiner HollyFrontier Corp said last Tuesday it would purchase a 149,000-bpd refinery in Washington from Shell as part of the European company"s strategy to reduce its global refinery footprint.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Nouryon to spin out base chems business into separate company

MOSCOW (MRC) -- Nouryon intends to spin out its base chemicals business Nobian, said the company.

Nouryon announced its intention to spin off its base chemicals business, Nobian, into a separate company that will remain under the ownership of Nouryon’s equity owners, The Carlyle Group and GIC.

The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its debt with proceeds received from planned external financing by Nobian.

"In 2020, Nouryon announced a new company strategy to grow our leading positions and exceed our customers’ expectations by delivering innovative, sustainable solutions that meet society’s everyday needs. This intended spin-out is a logical next step for Nouryon and Nobian,” said Charlie Shaver, chairman and CEO of Nouryon. “The separation will create two powerful, best-in-class companies, each owned by Carlyle and GIC, and each with a compelling and distinct strategic focus."

Following the intended separation, Nobian’s Board of Directors will be comprised of members from Carlyle, GIC and Nouryon’s executive leadership team.

Nobian’s board of directors will be made up of members from Carlyle, GIC and Nouryon’s executive leadership team, with Nouryon providing support across functionalities to assist with the transition.

As per MRC, Nobian (formerly Nouryon), the world's largest manufacturer of paints and varnishes and specialty chemicals, announced force majeure on January 20 for the supply of caustic soda from its plant in Rotterdam (Rotterdam, The Netherlands) due to equipment breakdown. The resumption of Nobian's chlorine and caustic soda production in Rotterdam was delayed due to unforeseen production problems, resulting in a caustic soda force majeure announcement on April 28 amid critically low stocks.

Earlier it was reported that the March production of sodium hydroxide (caustic soda) amounted to 118 thousand tons (100% of the main substance) against 98.4 thousand tons a month earlier. In the first three months of the year, the total production of caustic soda amounted to 329.4 thousand tons, which is 0.7% less than the same indicator of the previous year.

Nouryon was officially formed in October 2018 after separating from AkzoNobel. The company manufactures everyday products, such as paper, plastics, building materials, food, pharmaceuticals, and personal care items. The company operates in over 80 countries around the world and its portfolio of industry-leading brands includes Eka, Dissolvine, Trigonox and Berol.
MRC

Trinseo to build PS recycling plant in Belgium

MOSCOW (MRC) - Trinseo (formerly Styron), a large European polymer manufacturer, is planning to build a polystyrene (PS) processing plant in Tessenderloo, Belgium, which is expected to start operating in 2023, the company said in a statement.

It is noted that the company will use depolymerization technology, which breaks down polymers for chemical processing of the material. Recycled polystyrene will have identical properties to virgin polystyrene.

Trinseo is currently working in partnership with Germany's INEOS Styrolution and UK-based Recycling Technologies on the construction of a recycled polystyrene plant in the UK, to be launched in 2022.

INEOS Styrolution also plans to build its own polystyrene processing plant in Wingles, France. Recycling Technologies has been selected as the supplier of technology for the processing of polystyrene.

As per MRC, Trinseo raises May PS, ABS and SAN prices in Europe.

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

U.S. EPA to scrutinize the so-called small refinery exemption program

MOSCOW (MRC) -- The U.S. Environmental Protection Agency is handing over to the Government Accountability Office information on oil refiners that petitioned for exemptions to biofuel blending mandates, in an effort to help the government watchdog investigate the exemption program, said Hydrocarbonprocessing.

The move shows the Biden administration's willingness to help scrutinize the so-called small refinery exemption program, which had expanded dramatically during former President Donald Trump's term. The disclosed confidential information will include all documents, information and data related to small refinery exemption petitions received by the EPA from the program since its inception, according to a notice on Wednesday in the Federal Register.

Under U.S. law, oil refiners must blend billions of gallons of biofuels into the nation's fuel pool, or buy credits from those that do. Refiners can apply for exemptions if they can prove the requirements would do them financial harm.

The exemptions have sparked controversy between oil and corn groups. Corn and biofuel groups say that the exemptions hurt demand for their fuel, while oil refiners reject that claim and say the exemptions are necessary to keep small refiners in business.

GAO announced in January 2020 that it would review the EPA's approval of small refinery exemptions under the Renewable Fuel Standard, including viability scores given to the applications by the Energy Department, which helps advise EPA on the program.

GAO launched the investigation after a request to do so from Democratic and Republican representatives from corn-growing states such as Illinois, Iowa and other states. The Renewable Fuels Association, a biofuel trade group, cheered the news.

"We applaud the new leadership at EPA for providing the requested information to GAO, and we thank Administrator (Michael) Regan for taking another important step toward restoring the integrity of the RFS program," said RFA President Geoff Cooper.

As MRC informed earlier, Marathon Petroleum is at an impasse in negotiations with the local Teamsters union at its 104,000 barrel-per-day St. Paul Park, Minnesota, refinery. Marathon said in a letter dated April 29 the two parties are at an impasse with respect to "non-starter" proposals made by the union and other proposals made in the refiner's last, best and final offer the union in March.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC