MOSCOW (MRC) -- Huntsman reported a net loss of USD59m for the second quarter of 2020 compared with net income of USD118m in the equivalent period last year, said the company.
Sales were down 30%, at USD1.247bn. The coronavirus crisis severely impacted volumes in the quarter and prices fell on lower raw material costs. The company said its balance sheet remains strong with a net leverage of 1.5 times and total liquidity of approximately USD2.6bn.
"We were fortunate to have been more prepared than ever as we entered the second quarter in an unprecedented global economic crisis, with little to no visibility,” said CEO Peter Huntsman. “With our transformed balance sheet, there was no need to access capital markets."
Sales volumes were down sharply in all the company’s operating segments, and by as much as 48% in Textile Effects and 31% in Advanced Materials. Volumes were down 16% in Polyurethanes but earnings before interest, tax, depreciation and amortisation (EBITDA) were down 80% for the segment. EBITDA for Huntsman’s third largest business, Advanced Materials, slumped 45%. Second-quarter adjusted EBITDA for the company as a whole was USD54m, down from USD245m in the prior year period.
“While the ongoing related global effects of COVID-19 remain uncertain and visibility continues to be poor, we see improving trends within most of our major markets and are optimistic that the worst of this economic slowdown is behind us," Peter Huntsman said.
The company expects to reach targeted USD100m cost savings, including savings related to recent acquisitions, by the end of 2021.
As MRC reported previously, in April 2020, to further aid in the fight against the COVID-19 pandemic, LyondellBasell (LBI) donated a key ingredient to Huntsman Corporation to produce hand sanitizer for US first responders.
We remind that, in January 2020, Indorama Ventures Public Company Limited (IVL), a global chemical producer, completed its acquisition of Huntsman’s world-class integrated oxides and derivative businesses, including a large flagship site on the US Gulf Coast (USGC) at Port Neches, as well as Chocolate Bayou and Dayton in Texas, Ankleshwar in India, and Botany in Australia, as per IVL's press release.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.