Stepan profits surge 40.4% YOY on cleaning products demand, insurance payment

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.
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MOSCOW (MRC) -- Henkel says it has entered a research partnership with North Carolina State (NC State) University’s Future Renewable Electric Energy Delivery and Management (FREEDM) Systems Engineering Research Center, to study the impact of materials technology on power electronics applications, said Chemweek.

Henkel has joined the research center as an associate member and will also leverage services from NC State’s Packaging Research in Electronic Energy Systems (PREES) lab facilities as part of the agreement, the company says.

“The demands on power electronics across many applications are immense,” says Justin Kolbe, director/market strategy for Henkel’s power and industrial automation business. “The often-contradictory objectives of increased power densities, high reliability, expansive functionality, and cost efficiency are driving new approaches to systems design."

Henkel believes relationships with academia have broad benefit, facilitating acceleration of market-ready solutions for some of the industry’s most significant challenges, and says it has partnered with the university on various projects in the past. “Most recently, Henkel’s team provided specialized materials that enabled us to meet aggressive targets in the design of a high-power electric vehicle fast charger. We see many areas such as this where our relationship can bring notable results,” says Iqbal Husain, professor of electrical engineering and director at FREEDM, noting the new association marks a more formal collaboration.

As MRC informed earlier, Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that Henkel Adhesives Technologies has officially inaugurated its new production facility in Kurkumbh, India.

Henkel are also partnering with Borealis and plastics solutions company Borouge to develop flexible packaging solutions for detergents containing both virgin polyethylene (PE) and high amounts of post-consumer recyclate (PCR) in efforts to increase sustainability.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
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MOSCOW (MRC) -- Honeywell announced that Shandong Yulong Petrochemical Co. has selected Honeywell UOP?s advanced platforming and aromatics technologies for its 20,000-t/y integrated refining and petrochemical complex in Longkou, Shandong Province, China, according to Apic-online.

The complex will include a UOP naphtha Unionfining unit and CCR Platforming technology to convert naphtha into high-octane gasoline and aromatics. It will also include a UOP Olefin Removal Process, UOP Sulfolane technology for aromatics extraction, Isomar isomerization technology and Tatoray technology for toluene disproportionation.

Once complete, the complex will produce 3-million t/y of mixed aromatics. Value of the contract and a schedule for the project were not given.

UOP will provide a range of technology licenses, engineering design, key equipment and state-of-the-art catalysts and adsorbents, operator training, and technical services for start-up and continuing operations.

The complex will also include two mixed feed ethylene crackers, two polypropylene (PP) lines, and ethylbenzene and styrene monomer plants.

As MRC reported earlier, in November, 2020, Honeywell announced Zhenhua Petrochemical Co. Ltd will use Honeywell UOP’s C3 Oleflex technology for propane dehydrogenation to process 1 million metric tons per year of polymer-grade propylene for a proposed plant in Dongying City, Shandong Province, China.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

MOSCOW (MRC) -- LyondellBasell and Covestro have declared force majeure on styrene supplies from their joint venture propylene oxide-styrene monomer (POSM) plant at Maasvlakte, Netherlands, reported Chemweek with reference to a customer notification.

“We regret to inform you that on 10 February 2021, a mechanical failure caused a shutdown of our POSM plant at Maasvlakte. Investigation on the root cause is in progress,” the producers say. “As a result, we are currently unable to meet our supply obligations for styrene monomer. Accordingly, we must declare a force majeure event per our agreement for the supply of styrene monomer, effective 11 February 2021,” the notification states.

The site at Maasvlakte produces 680,000 metric tons/year of styrene and 313,000 metric tons/year of propylene oxide (PO). Market sources suggested force majeure was also declared on PO supplies, but LyondellBasell did not comment on any such declaration at the plant.

“At Maasvlakte, we have safely contained the release. Cleanup efforts are in progress. I don’t have any other updates; as it is our company policy not to comment on our communication with our customers, I cannot answer your question,” a spokesperson said on Friday.

Operator LyondellBasell started up the POSM plant in 2003. LyondellBasell and Covestro each hold a 50% share in the JV facility.

OPIS is an IHS Markit company.

As MRC wrote previously, LyondellBasell (Houston, Texas), one of the largest plastics, chemicals and refining companies in the world, reports fourth-quarter net income of USD855 million, up 40% year-over-year (YOY) from USD612 million on higher polyolefin volumes and margins. A USD147 million non-cash, lower-of-cost-or-market (LCM) inventory valuation benefit increased net income by USD119 million, or USD0.36 per share. Sales totaled USD7.937 billion, down 3.0% YOY from USD8.179 billion. Adjusted earnings per share of USD2.19 increased 15% YOY from USD1.91 and beat the consensus of USD1.31 as compiled by Zacks Investment Research.

Styrene is the main feedstock for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption ofPS and styrene plastics totalled 520,630 tonnes in 2020, which corresponded to the same figure a year earlier. December estimated consumption of PS and styrene plastics grew by 5% year on year to 47,490 tonnes.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges, like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year.
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1. Woodside aims to seal LNG plant stake sale ahead of USD11-B gas project go-ahead

MOSCOW (MRC) - Woodside Petroleum expects strong buyer interest in the sale of a share of a new production unit at its Pluto LNG plant, top executives said on Thursday, a precondition for a planned USD11 B expansion at its Scarborough gas and Pluto project, said Reuters. The renewed push by Australia's biggest independent gas producer on the 8-MMtpy expansion project comes after last year's COVID-19 induced collapse in oil and gas prices drove its underlying annual profit down 58% to USD447 MM. The result was well short of analysts' forecasts, which sent its shares down as much as 3.7% after the result was released on Thursday. Woodside is looking to sell a 50% stake in the new production unit, or train, at the Pluto LNG plant in Western Australia, which will be fed with gas from the Scarborough project. Selling a stake would be key to avoiding a capital raising or a credit downgrade.



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