Clariant’s first-quarter sales and earnings jumped, year on year, because of 16% higher selling prices and 14% higher volumes, said the company.
Sales came in at Swiss francs (Swfr) 1.26bn (USD1.26bn), up 25% year on year, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Swfr220m. The company delayed the publication of its Q1 results following an investigation into its accounting, now concluded.
The company's 16% increase in selling prices “in part addressed continued cost” inflation as energy and raw materials prices remained high during the first quarter. “Catalysis sales decreased by a slight 1% in local currency [Swiss francs], despite significantly higher Specialty Catalysts sales, which could not entirely counterbalance the weakness in parts of Petrochemicals and Syngas,” said Clariant. “Natural Resources sales increased by a resounding 31% in local currency with growth attributable to all three Business Units, especially Additives."
For the second quarter, the company said sales would decline, compared to the first quarter, due to seasonal impacts in key sectors such aviation and refinery. Year on year, however, sales are still expected to rise.
It added that in 2022, economic growth would be likely impacted by geopolitical conflicts, its suspension of business with Russia, and the resurgence of COVID-19 in China. “Clariant expects the high inflationary environment with regard to raw material, energy, and logistics cost as well as supply chain challenges to persist in the second half of 2022,” it concluded.
Chemicals equity analysts at Baader Bank said Clariant’s Q1 results were more positive than expected, with the company managing to keep its selling margins high while other companies in the petrochemicals space had suffered more from high raw material prices.
Lummus Technology announced it and its catalyst partner Clariant have been awarded a major contract by Fujian Meide to supply CATOFIN technology and catalysts for a new, world-scale propane dehydrogenation (PDH) unit in Fuzhou, China. Already operating one PDH unit at its Fuzhou petrochemical complex, Fujian Meide is now building one of the largest PDH units in the world and has selected the CATOFIN process and catalysts for the project's second phase. The new unit will produce 900,000 mtons of propylene annually and is scheduled to commence operation in 2023.
mrchub.com