Clariant determined the need for a restatement of the financial statements and corrections to the quarterly reporting

Clariant determined the need for a restatement of the financial statements and corrections to the quarterly reporting

Clariant, a focused, sustainable, and innovative specialty chemical company, today announced that the investigation of accounting issues related to provisions and accruals (as disclosed by Clariant on 14 February 2022) conducted by independent advisors and external counsel (Deloitte and Gibson, Dunn & Crutcher), has been concluded, said the company.

After reviewing the results of the investigation, the Board of Directors has determined the need for a restatement of the 2020 financial statements and corrections to the quarterly reporting of key financial data for 2020 and 2021.

"We appreciate that our employees brought this matter to our attention, and I am glad that we have now concluded the investigation and can leave this matter behind us. As part of our purpose-led strategy, it remains our utmost priority at Clariant to continue to strengthen a culture built on the highest ethical standards. Following a thorough investigation, we have closely reviewed its results and are committed to further strengthening our controls and processes,” said Conrad Keijzer, Clariant’s Chief Executive Officer.

The identified deviations from previously reported figures resulting from the restatement of the 2020 financial statements are due to over- or understated provisions or accruals. The preliminary corrected 2020 figures result in a continuing operations EBITDA of CHF 597 million compared to the previously reported CHF 578 million and a corresponding EBITDA margin of 15.5 % compared to the previously reported 15.0 %. The preliminary figures 2020 and 2021 are subject to the processing of the financial restatement bookings in Clariant’s accounting systems and completion of the external audit, hence minor deviations might occur.

Based on preliminary, unaudited figures, Clariant currently expects a Full Year 2021 continuing operations EBITDA of CHF 708 million and a corresponding EBITDA margin of 16.2 %, in line with the guidance confirmed on 14 February 2022. The results of the investigation have no impact on the sales, cash and cash equivalents figures reported in 2020 and 2021.

As MRC wrote previously, Clariant has recently announced that its StyroMax UL3 catalyst is demonstrating successful results at Risun’s new styrene monomer (SM) plant located in Tangshan, China.

We remind that in October 2020, Clariant announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
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Avient to acquire DSM Dyneema business

Avient to acquire DSM Dyneema business

US polymer and materials company Avient has agreed to acquire DSM's protective materials business for USD1.485bn in a deal expected to close later this year, said the company.

DSM's protective materials activities mainly consist of the Dyneema fibre business. The planned acquisition includes six production facilities, four R&D centres and about 1,000 employees around the world. The business' 2022 sales and earnings before interest, tax, depreciation and amortisation (EBITDA) are estimated at USD415m and USD130m, respectively.

The addition of the Dyneema portfolio would raise Avient's material offerings “to the highest levels on the performance spectrum of composites and engineered fibres," said CEO Robert Patterson. In conjunction with the planned acquisition, Avient plans to explore a sale of its distribution business.

The divestment of the distribution business would allow Avient to remain "modestly levered" at 2.9x adjusted EBITDA while also expanding adjusted EBITDA margins from 12% to 18%, Patterson said. Also on Wednesday, Avient reported that its Q1 sales rose 11% to USD1.3bn, with sales growth in nearly all end markets.

We remind, DSM Engineering Materials, a division of Dutch chemical maker DSM, has partnered with Ford Motor Co. and cable component maker HellermannTyton for an award-winning new auto part made from recycled ocean plastic.

Also, Royal DSM has started a review of strategic options for its materials businesses, including the possibility of selling them.

DSM Engineering Materials is a business group of Royal DSM.
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Enterprise and OLCV sign letter of intent for Texas Gulf Coast CO2 transportation and sequestration project

Enterprise and OLCV sign letter of intent for Texas Gulf Coast CO2 transportation and sequestration project

Enterprise Products Operating LLC, a subsidiary of Enterprise Products Partners L.P. (EPD), and Oxy Low Carbon Ventures, LLC (OLCV), a subsidiary of Occidental (OXY), have announced they have executed a letter of intent to work toward a potential carbon dioxide (CO2) transportation and sequestration solution for the Texas Gulf Coast, according to BusinessWire.

The joint project would initially be focused on providing services to emitters in the industrial corridors from the greater Houston to Beaumont/Port Arthur areas. The initiative would combine Enterprise’s leadership position in the midstream energy sector with OLCV’s extensive experience in subsurface characterization and CO2 sequestration.

“We believe that our low-carbon strategy enhances Oxy’s business value and creates a path to net zero for ourselves while providing organizations everywhere with the tools they need to achieve net-zero or net-negative emissions.”

Enterprise would develop the CO2 aggregation and transportation network utilizing a combination of new and existing pipelines along its expansive Gulf Coast footprint. OLCV, through its 1PointFive business unit, is developing sequestration hubs on the Gulf Coast and across the US, some of which are expected to be anchored by direct air capture (“DAC”) facilities. The hubs will provide access to high quality pore space and efficient transportation infrastructure, bringing more options to emitters looking to explore viable carbon management strategies. Enterprise and OLCV have begun exploring the commercialization of the potential joint service offering with customers.

“For many years, Enterprise and Oxy have successfully collaborated in developing traditional oil and gas projects,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “We are excited to evolve that relationship with OLCV to provide reliable and cost-efficient CO2 transportation and sequestration services to advance a low-carbon economy for the energy capital of the world.”

As MRC wrote before, last year, Enterprise Products Partners reported flaring at its propane dehydration, or PDH, unit in Mont Belvieu, Texas. According to the filing made public Aug. 10, the 750,000 mt/year PDH unit was shut down following a leak on Aug. 9. Sources confirmed on Aug. 10 that the unit was offline, but did not give an estimated timeframe of when the unit is expected to come back online.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, 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.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.

Oxy Low Carbon Ventures (OLCV) is a subsidiary of Occidental (Oxy), an international energy company with assets primarily in the United States, the Middle East and North Africa. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy’s business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally. Visit Carbon Innovation on oxy.com for more information.
MRC

Indonesian Bumi Resources, U.S. Air Products to start JV in May

Indonesian Bumi Resources, U.S. Air Products to start JV in May

A unit of Indonesia's biggest coal miner PT Bumi Resources and U.S. firm Air Products and Chemicals Inc will jointly invest in a methanol facility, said Reuters.

Bumi's Kaltim Prima Coal will build the facility in Bengalon, East Kalimantan, with an annual capacity to produce 1.8 MM tons of methanol, director Dileep Srivastava told Reuters. He added the joint venture company will invest "around USD2-B all in". Indonesia's investment minister, Bahlil Lahadalia, said the two companies aim to break ground in May, while Srivastava said the facility is expected to come online by 2025 or 2026.

Air Products did not immediately respond to requests for comment. In 2020, the company announced it had signed a definitive agreement with Bumi's parent Bakrie Group and PT Ithaca Resources for a USD2-B "world-scale coal-to-methanol production facility".

Bumi said in 2020 it was looking into investing USD1-B in a coal gasification project, to comply with the Indonesian government's ambition of processing its natural resources domestically.

As MRC reported previously, earlier this month, Air Products announced that it had acquired Air Liquide’s industrial gases business in the UAE, including liquid bulk, packaged gases and specialty gases; and Air Liquide’s majority share in MECD, which owns and operates a liquid CO2 production facility in Bahrain.

And in March, 2022, Italian oil and gas company Eni and Air Liquide entered into a collaboration agreement aimed at assessing decarbonization solutions in the Mediterranean region of Europe, focusing on hard-to-abate industrial sectors. The two companies join forces to enable CO2 capture, aggregation, transport and permanent storage.

We remind that Eni is evaluating conversion of its Livorno refinery in northwest Italy into a biorefinery, as part of the Italian company's wider strategy to make its activities more environmentally sustainable. Eni has already converted two of its Italian refineries and is looking to almost double its biorefining capacity to around 2 million mt/year by 2024, and expand this to at least five times by 2050, as part of its pledge to achieve complete carbon neutrality by 2050.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

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.
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Cepsa's earnings up in Q1 2022 on high crude oil prices and stronger refining margins

Cepsa's earnings up in Q1 2022 on high crude oil prices and stronger refining margins

Cepsa reported a net income at current cost of supply of EUR58 MM (USD61.97 MM) in the first quarter, up by 9.4% year on year, pushed by high crude prices and stronger refining margins, reported Reuters.

Along with sharply higher crude prices, the value of refined products like gasoline and petrochemicals have been soaring globally, fueled by a strong post-pandemic recovery and most recently by the conflict in Ukraine.

Cepsa's refining margin expanded to USD2.5 a barrel in the first quarter from USD1.9 a barrel a year earlier, the company said, despite higher prices for natural gas, which is a primary feedstock for refineries,

Core earnings before interest, taxes, depreciation and amortization (EBITDA) at current cost of supply for the first quarter came in at 605 MM euros, an 86.7% increase compared with the same period last year.

As MRC wrote before, in December 2020, driven by a shared vision of sustainability and strong collaboration, DSM, SABIC, Cepsa, Fibrant, and Viscofan together created a multi-barrier casing for meat products made via advanced recycling of post-consumer plastics.

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.

Cepsa is a Spanish petrochemical company. Full name Compania Espanola de Petroleos S.A. The company is headquartered in Madrid. Refining is one of the main activities of CEPSA. The production of asphalt and other road surfaces is another of the company's core activities; nine CEPSA factories are engaged in the production of these products.
MRC