Solvay posts strong financial results for 2021

MOSCOW (MRC) -- Sollvay's net sales for the full year 2021 were up +17% organically to EUR10.1 billion versus 2020, with 12% of the growth driven by volumes and 5% driven by pricing, as per the company's press release.

More than half of the full year impact from price initiatives were realized in Q4. Full year net sales were up +4.4% organically compared to 2019, reflecting continued momentum in key markets including auto and electronics. In the fourth quarter, net sales increased +22.4% versus 2020 and +17.1% versus 2019.

The acceleration of price increases largely offset a EUR465 million impact from variable cost inflation.
Structural cost savings for the full year 2021 amounted to EUR213 million, bringing total structural savings since 2019 to EUR390 million, or 80% of its targeted EUR500 million (annual run-rate) by the end of 2024.

Underlying EBITDA increased +27% versus full year 2020, setting a new record at EUR2,356 million. EBITDA was up +8% versus 2019, despite the slower recovery in the civil aero market, demonstrating good operating leverage. Underlying EBITDA margin rose to 23.3%, 160 basis points higher than 2020 despite the high inflationary environment. EBITDA in the fourth quarter grew +24% organically, or +19% excluding net EUR27 million of one-time gains.

Underlying net profit amounted to EUR1.0 billion, up 68.3% compared to 2020.

Strong free cash flow generation of EUR843 million reflecting higher profits and further working capital improvements which also enabled the funding of an increase in capital investments to EUR736 million for the year.

Continued strengthening of the balance sheet with reduced net debt (EUR249 million) and provisions (EUR487 million). This brings the leverage ratio to 1.7x, the lowest since 2015.

ROCE for 2021 reached a record level at 11.4% versus 6.9% in 2020 and 8.1% in 2019.
Total proposed dividend of €3.85 per share, reflects a EUR0.10 per share increase, subject to Shareholders’ approval.

Against an unprecedented inflationary cost environment, pricing actions in 2022 are expected to accelerate, and full year EBITDA is estimated to grow organically by mid-single digits. With the current cycle of growth investments underway, Free Cash Flow is estimated to exceed EUR650 million.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
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MOSCOW (MRC) -- A power outage has hit Vietnam's largest refinery, Nghi Son (NSRP), forcing some of its units to shut down, reported Reuters with reference to two sources familiar with the matters.

"The incident happened on Monday," one of the sources said without elaborating.

As MRC reported earlier, on 26 January, 2022, state oil firm PetroVietnam blamed NSRP for the recent production cut. State media had reported PetroVietnam had failed to make an early payment under a "Fuel Products Offtake Agreement" (FPOA) with the refinery, causing financial difficulties for Nghi Son. But PetroVietnam, which owns 25.1% of the 200,000 barrel-per-day refinery in Thanh Hoa province, insisted it was not to blame.

We remind that NSRP shut its new PP plant in Vietnam for maintenance on 24 August, 2021, instead of the initially scheduled date of 17 August, for approximately three weeks. The company decided to postpone the maintenance shutdown at this plant by one week from the previous schedule due to the COVID-19 related lockdown. Thus, the new PP plant came back on-line in mid-September, 2021.

We also remind that Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1% owned by Japan’s Idemitsu Kosan Co, 35.1% - by Kuwait Petroleum, 25.1% - by PetroVietnam and 4.7% - by Mitsui Chemicals Inc.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes in 2021, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
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MOSCOW (MRC) -- BASF, the world's petrochemical major, aims to display endless possibilities with innovative material solutions that improve energy efficiency, prolong product lifecycles, and enable recycling at CHINAPLAS 2022, according to SpecialChem.

Among the sustainable solutions to be shown at CHINAPLAS is IrgaCycle.

Enabling recycling by improving the properties of recycled plastics is IrgaCycle, a new range of additive solutions that can help increase the percentage of recycled content in several end-use applications such as packaging, automotive & mobility, and building and construction.

These solutions address specific quality issues associated with recycled resins, such as limited processability, poor long-term thermal stability, and insufficient protection from outdoor weathering.

A particular advantage of these blends lies in their ready-to-use product forms, which are easy to apply in the recycling steps. The granulated non-dusting product form ensures safe and easy dosage during converting or compounding of reclaimed material.

In so doing, BASF is helping to reduce, reuse, recycle and rethink plastics. BASF will also introduce new co-creation projects, a series of tech talks and provide updates on the start-up of its polyamide plant at the BASF Zhanjiang Verbund Site in 2022.

BASF will also exhibit a new grade of Ultradur polybutylene terephthalate (PBT), Elastollan Thermoplastic Polyurethane (TPU), polyurethane elastomer Cellasto, polyarylethersulfone Ultrason.

As MRC wrote before, Air Liquide, BASF and Shell are joining Calpine, Chevron, Dow, ExxonMobil, INEOS, Linde, LyondellBasell, Marathon Petroleum, NRG Energy, Phillips 66 and Valero to collectively evaluate and advance emissions reduction efforts in and around the Houston industrial area. Three additional companies have announced their support for exploring the implementation of large-scale carbon capture and storage (CCS) technology in and around the Houston industrial area. The 14 companies are evaluating how to use safe, proven CCS technology at Houston-area facilities that provide energy and products for modern life, including advanced manufacturing for plastics, packaging, motor fuels and power generation.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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1. Air Liquide 2021 net profit increases despite sharp jump in energy prices

MOSCOW (MRC) -- Air Liquide SA said Wednesday that 2021 net profit rose despite facing a sharp jump in energy prices, according to MarketWatch. Net profit for the year was EUR2.57 billion (USD2.92 billion), compared with EUR2.44 billion in 2020, the industrial-gases company said. Group revenue came to EUR23.34 billion, 14% higher than the previous year, after activities improved markedly across all areas, Air Liquide said. Net profit was a touch above of expectations of EUR2.56 billion, while revenue beat views of EUR23.13 billion, according to analysts' estimates provided by the company.

MRC

MOSCOW (MRC) -- JGC Holdings Corporation announced the launch of a joint research and development (R&D) program with Bridgestone Corporation, the National Institute of Advanced Industrial Science and Technology (AIST), Tohoku University, and ENEOS Corporation, said Hydrocarbonprocessing.

This program is aimed at developing chemical recycling technologies that utilize used tires to achieve high-yield production of isoprene, a raw material for synthetic rubber. By combining the expertise and technologies of industry leading companies and academic institutions, JGC Holdings and its partners are working to develop recycling technologies that will contribute to the realization of a more sustainable society and to conduct demonstrations for the social implementation of these technologies by 2030.

Tire demand is expected to grow in the future in conjunction with rising automobile and transportation demand. Synthetic rubber is one of the primary materials used when producing tires and is generally manufactured using petroleum. Used tires are also utilized as fuel mainly through thermal recovery technologies in Japan. At the same time, it is projected that society will come to face issues related to resource depletion and climate change triggered by increased CO2 emissions in the future.

To ensure that it can continue to supply tires in more sustainable manner, JGC Holdings, Bridgestone, AIST, Tohoku University, and ENEOS has teamed up to kick off a co-creative program for developing chemical recycling technologies of used tire that combine the expertise and technologies of companies and academic institutions. In this manner, JGC Holdings and its partners are working to contribute to increased resource recycling and carbon neutrality across the value chains of the tire and rubber industry and the petroleum and petrochemical industry.

The R&D program will promote the social implementation of technologies for high-yield production of isoprene by decomposing used tires with a specialized catalyst. JGC Holdings will be tasked with designing pilot plants while AIST, Tohoku University, and ENEOS will be responsible for the development of chemical recycling technologies of used tires and the related evaluation technologies. As the project leader, Bridgestone will play a central role in the project, guiding demonstrations for social implementation by utilizing its rubber R&D resources and expertise in the tire and rubber industry.

This program on "recycling technologies to achieve high-yield production by decomposing at low temperatures and depolymerization of used tires (brought by Bridgestone)" is one of two R&D projects under the initiative called "developing chemical product manufacturing technologies utilizing used tires" promoted by the New Energy and Industrial Technology Development Organization (NEDO) of Japan and adopted as part of "the Green Innovation Fund" of NEDO.

The Ministry of Economy, Trade and Industry of Japan decided to develop the Green Innovation Fund toward the goal of achieving carbon neutrality by 2050, the sustainability goal of Japanese government. The plan aims to accelerate structural transformation in energy and industry sector and innovation through ambitious investment. The Green Innovation Fund continuously supports companies and other organizations, which address challenges to achieve the goal as part of their business from R&D to demonstrations to social implementation of the outcomes for the coming ten years.

Through this program, JGC Holdings, AIST, Tohoku University, ENEOS, and Bridgestone seek to help increase synthetic rubber recycling and achieve carbon neutrality in the tire and rubber and the petroleum and petrochemical industries and to contribute to the realization of a more sustainable society.

As per MRC, Bridgestone plans to sell its China-based synthetic rubber business, Bridgestone (Huizhou) Synthetic Rubber Co., Ltd. (BSRC), to LCY Chemical Corp. Bridgestone Corp. is selling its synthetic rubber production business in China to Taipei-based materials and chemicals supplier LCY Corp., in line with the group's mid-term (2021-2023) business plan to ‘rebuild earning power’.

As per MRC, American Bridgestone Firestone, a subsidiary of Japan's Bridgestone Corporation, halted production at its Styrene Butadiene Rubber (SBR) plant in Lake Charles, Louisiana, USA on February 15 due to cold weather in the region. The company confirmed that the 134,000 tonnes BSK per year plant is out of service due to problems associated with extreme weather conditions in the US Gulf of Mexico. Although electricity was restored to the plant, cold weather and power outages in the area resulted in the cutoff of water and other circulation needed to keep the plant running.
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