Linde increased profits and sales up 14% in Q4 2021

MOSCOW (MRC) -- Linde’s fourth-quarter 2021 adjusted operating profit rose by 14% year on year, driven by higher pricing, strong volumes and productivity initiatives, said the company.

Sales revenue was also up by 14% on higher pricing and volumes, mostly from the electronics, chemicals and energy end markets. "The Linde team delivered another quarter of record financial results by growing EPS [earnings per share] 20%, operating cash flow 33% and increasing ROC [return on capital] to 17.7% - all while positioning the company for future growth with a contractually secured project backlog of USD13bn," said CEO Steve Angel.

For the full year of 2021, sales increased by 13% to USD30.8bn while adjusted operating profit rose by 24% to USD7.2bn. Angel, who steps down as CEO next month, was optimistic on the company’s outlook. "Looking ahead, the economic outlook remains uncertain. However, I have confidence in our ability to grow EPS double-digit percent from our industry-leading supply network and project backlog," he said.

Linde has signed a long-term agreement with BASF to supply BASF’s planned hexamethylenediamine (HMDA) project in Chalampe, France, with hydrogen and steam. As part of the contract, Linde will design, build, own and operate a new hydrogen production facility at Chalampe, doubling its capacity there. The new Linde plant is expected onstream in the first half of 2024. Financial details were not disclosed.

We remind, BASF, SABIC and Linde have signed a joint agreement to develop and demonstrate solutions for electrically heated steam cracker furnaces. The partners have already jointly worked on concepts to use renewable electricity instead of the fossil fuel gas typically used for the heating process.

As per MRC, JSC SIBUR-Neftekhim and JSC Linde Gas Rus signed an agreement on the utilization of carbon dioxide formed in the technological process of SIBUR.

Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest hydrogen liquefaction capacity and gaseous hydrogen pipeline distribution system anywhere in the world. The company operates the world's first high-purity hydrogen storage cavern plus pipeline networks totaling approximately 1,000 kilometers globally, to reliably supply its customers. Linde is at the forefront in the transition to clean hydrogen and has installed 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest electrolysis technology through its world class engineering organization, key alliances and partnerships.
MRC

MOSCOW (MRC) -- Toyo Engineering Corporation has been awarded the project to construct a polyacetal (POM) plant in Nantong, China from a newly established Chinese subsidiary of Polyplastics Co., Ltd, according to Hydrocarbonprocessing.

Upon the high demand of POM in the market of China and Asia, Polyplastics Co., Ltd has decided to invest for the new construction of POM plant in China. Toyo’s extensive experience in China, and established performance led to receiving the order from the client.

Toyo intends to continuously support the customer’s investment in China, especially for the petrochemical, specialty chemicals products and fine chemicals fields.

As MRC reported earlier, in January 2021, Toyo Engineering and SCG Chemicals in Thailand entered into a MOU relating to the joint collaboration for improving the process of turning mixed post-consumer plastics into recycled feedstock for petrochemical businesses. The process is owned by Circular Plas (CirPlas), which SCG Chemicals hold a 60% stake. CirPlas has already operated the demonstration plant for the advanced recycling process in Rayong province, Thailand.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

1. Evergreen acquires two more PET recycling plants and expands capacities to meet stronger demand

MOSCOW (MRC) -- To meet growing demand, polyethylene terephthalate (PET) reclaimer Evergreen has recently bought a pair of facilities and added another extruder to an expansion project, according to Plastics Recysling Update. A plastics recycling and manufacturing company owned by The Sterling Group, Evergreen had a single facility in Clyde, Ohio in January 2021. It bought CarbonLite’s first PET recycling facility in Riverside, Calif. in May 2021 after CarbonLite filed for bankruptcy. Evergreen announced Feb. 9 that it purchased UltrePET in Albany, N.Y. and Novapet in Amherst, Nova Scotia, in November 2021. UltrePET, now named Evergreen Albany, and Novapet, now named Evergreen Amherst, were acquired from wTe Corp. The acquisitions will allow Evergreen to expand its overall production capacity from about 40 million pounds a year to 147 million pounds of food-grade RPET.

MRC

MOSCOW (MRC) -- Overall production of polyvinyl chloride (PVC) reached 87,100 tonnes in 2021, down by 3% year on year.
Three producers slightly decreased their output, according to MRC's ScanPlast report.

January output of unmixed PVC came close to the level of 87,100 tonnes against 89,800 tonnes and 88,400 tonnes in January and December a year earlier; three producers decreased production volumes. Overall output of polymer totalled 1,007,000 tonnes in 2021 versus 976,300 tonnes a year earlier.

The structure of PVC production by plants looked the following way over the stated period.

RusVinyl (joint venture of SIBUR and SolVin) produced a little less 30,700 tonnes of PVC in January, with about 2,500 tonnes of which accounted for emulsion polyvinyl chloride (EPVC), compared to 30,600 tonnes in January and 30,600 tonnes in December 2021. RusViny's overall PVC output reached 349,400 tonnes last year.

SayanskKhimPlast produced slightly less than 27,700 tonnes of suspension PVC (SPVC), compared to 27,900 tonnes in January and December last year. Total PVC production at SayanskKhimPlast in 2021 was 309,300 tonnes 2021.

Bashkir Soda Company (BSC) in the first month of the year produced about 21,300 tonnes against 23,500 tonnes and 22,900 tonnes in January and December last year. Total PVC production at Bashkir Soda Company in 2021 reached 268,200 tonnes.

Kaustik (Volgograd) last month seriously increased its capacity utilisation and produced slightly less than 7,500 tonnes of suspension PVC against 7,400 tonnes and 7,000 tonnes in January and December last year. The plant's overall output of PVC reached 80,300 tonnes in 2021.

MRC

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for February shipments to the CIS countries began late last week. The price of ethylene rose significantly in the region. However, European producers rolled over their January export PVC prices for February shipments, and in some cases, there were even a slight reduction, according to ICIS-MRC Price report.

The February contract price of ethylene was agreed up by EUR67,5/tonne from the previous month, which theoretically allows to talk about an increase of EUR34/tonne in the net cost of PVC production. But with global supply rising and prices falling in a number of the key export destinations, European suppliers are not considering price hikes. Most producers rolled over their January export PVC prices for February shipments, and only in a few cases, prices dropped by EUR10/tonne.

Since last November, the global availability of PVC has been gradually increasing. Suppliers of North American PVC began to enter the European and CIS markets more actively, whereas prices constantly decreased. Difficulties with maritime logistics remained, which negatively affected delivery times. But this factor faded into the background.

For a number of export destinations, it is increasingly difficult for European producers to maintain high prices, despite the growth in feedstock prices and electricity in the region. In February, European producers are trying to maintain their prices in the range of EUR1,640-1,710/tonne FCA for the CIS markets.

At the same time, it should be noted that PVC prices for shipments from the USA slumped again in February Thus, offer prices fell down to USD1,600/tonne CFR and lower.
MRC