London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

Arkema Q3 net income falls

November 12/2020

MOSCOW (MRC) -- Arkema's net income fell in the third quarter as earnings dropped amid lower volumes and prices at its intermediates unit, the French company said. 

The company reported a strong improvement in the Group's volumes compared to the second quarter and excellent cash generation in an environment that remains uncertain.

Arkema noted sales of EUR1.9 billion (EUR2.2 billion in Q3'19): 9% decline at constant scope and currency (-18% in Q2'20), in line with the guidance of around -10% issued end July. There was a negative volume effect of 4.4%. The company reported EBITDA of EUR307 million (EUR385 million in Q3'19) and EBITDA margin of 16.1%.

Net debt was down 265 million on June 30, 2020, at EUR1,869 million including hybrid bonds (EUR2,470 million on Sept. 30, 2019). Arkema reported the successful issuance of the Group's first-ever green bond for a total amount of EUR300 million dedicated to financing the growth project in bio-based polyamides in Singapore.

"After a second quarter marked by the development of the COVID-19 health crisis, global demand recovered in the third quarter and was supported in particular by the strong improvement of market segments linked to construction. Group volumes reflect a clear rebound compared to the previous quarter," chairman and CEO Thierry Le Henaff said. "In a context that remains volatile and uncertain, Arkema continues to demonstrate its solidity thanks to the responsiveness and daily commitment of its teams.

"Specialty Materials, which now account for 83% of Group sales, showed a good level of resilience given the current environment. The Group continued to roll out its cost reduction initiatives and to strictly adapt its working capital. The high level of cash generation in the third quarter enabled us to further strengthen our balance sheet structure."
 
Demand in the third quarter was supported in particular by the rebound in the construction and decorative paints markets, which started in June, growth in batteries, and a sequential improvement in the automotive sector toward the end of the quarter.

The 4.5% negative price effect was due mainly to the impact of lower propylene prices in Coating Solutions and continued challenging market conditions in Intermediates.

As MRC reported earlier, Arkema said in June, 2020, that it had finalized the divestment of its functional polyolefins business to SK Global Chemical. The divestment was announced last year. Arkema says the sale forms part of its strategy to refocus the groups activities on specialty materials.

As per MRC, Arkema wins the 2020 Pierre Potier Prize for its Elium liquid thermoplastic resin for wind turbines Elium,liquid thermoplastic resin, a breakthrough innovation in the composites market that enables the manufacture of 100% recyclable wind turbine blades.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, PP, PE, neftegaz, petrochemistry, Arkema.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe