Eastman announces second-quarter 2022 financial results

Eastman reported a decline in Q2 gross profits as cost of sales outpaced sales during the quarter, said the company.

The company reaffirms guidance of USD9.50-USD10.00 adjusted EPS for 2022, building on strong underlying performance in the first half.

Eastman reaffirmed its 2022 guidance, which calls for adjusted earnings to be USD9.50-10.00/share, with operating cash flow around USD1.5bn.

"We are doing an outstanding job of implementing price increases to recover spread compression from significantly elevated costs of raw material, energy, distribution and other inflationary pressures," CEO Mark Costa said.

"We also expect to continue raising prices, particularly in our specialty product lines, in response to persistently high inflation," Costa said. The company said it continues to see strong performance in its chemical intermediates segment.

As per MRC, Eastman announced a planned increase of its Therminol 66 heat transfer fluid manufacturing capacity in Anniston, USA. The plant expansion is expected to be complete in 2024. With the expansion of its capacity for Therminol 66, Eastman increases its production volume for this heat transfer fluid in the US by 50?%. The expansion of the company’s plant in Annistion, USA, is expected to be completed in 2024.

Eastman is a multinational chemical company serving customers in approximately 100 countries. Sales in 2015 amounted to around USD9.6 Billion. The company is headquartered in Kingsport, Tennessee, USA. The company employs approximately 15 thousand people around the world.

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Celanese Corporation (CE) reported second-quarter earnings of USD434 mln, said the company.

On a per-share basis, the Irving, Texas-based company said it had profit of USD3.98. Earnings, adjusted for non-recurring costs and to account for discontinued operations, were USD4.99 per share.

The results topped Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of USD4.57 per share.

The chemical company posted revenue of USD2.49 billion in the period, also topping Street forecasts. Seven analysts surveyed by Zacks expected USD2.48 billion.

For the current quarter ending in October, Celanese expects its per-share earnings to range from USD4 to USD4.50.

Celanese shares have decreased 29% since the beginning of the year. Shares hit USD119.78, a fall of 22% in the last 12 months.

As MRC reported earlier, in H2, 2021, Celanese Corporation announced a force majeure (FM) in China for vinyl acetate monomer (VAM) shipments from its plant Nanjing, China. Celanese temporarily shut down its acetic anhydride and VAM production in Nanjing to comply with requirements of government departments in order to achieve dual energy consumption targets in the Jiangsu Province in 2021. Thus, its VAM plan with the capacity of 300,000 mt/year was shut on 17 September, 2021, and its resumed operations on 9 October, 2021.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 8,500 employees worldwide and had 2021 net sales of USD8.5 billion.
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China’s Wanhua Chemical said on Friday that its net profit in the first half of 2022 dropped by over 23% amid rising feedstock and energy costs, said the company.

Revenue increased by 31.7% on surging prices and sales. Feedstocks costs rose steeply. In the first six months, average prices of benzene and coal increased by 30% and 52% year on year, respectively. Contract prices of propane and butane were 47% and 54% higher than the same period in previous year.

Polyurethane (PU) sector saw rebounding operating rates and high inventories. Supply and demand were basically balanced, but demand growth slowed down amid rising costs, manufacturing slump and high inflation.

Petrochemicals faced squeezed margins. Prices of oil and gas rallied fast and were highly volatile, major overseas economies suffered from inflation pressure, while domestic downstream consumptions of petrochemicals were curbed or delayed by sporadic outbreaks of COVID-19.

We remind, Wanhua Chemical posted a 49.56% decrease in net profits in the first half of 2021, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Prices of pure methylene diphenyl diisocyanate (MDI), its major product, decreased to CNY15,800-CNY18,700 in the first half year from CNY23,700-CNY27,200 in the same period of 2019. Prices of petrochemical products the company makes also recorded a double-digit drop.
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Stavian Quang Yen Petrochemical Joint Stock Company, Quang Ninh Provincial People’s Committee and Bac Tien Phong Industrial Park Joint Stock Company have just signed a Memorandum of Understanding on Investment Cooperation (MoU) at the Quang Ninh Investment Promotion Conference in 2022, officially kicked off the project of Stavian Quang Yen petrochemical plant, said Vietnam postsen.

The project has an estimated investment capital of up to 1.5 billion USD, with a production scale of 600,000 tons of polypropylene/year. It is known that Polypropylene is an important input material for many manufacturing and manufacturing industries such as household appliances, automobiles, electronics, packaging production, packaging, supplies, medical equipment. … Therefore, when the factory comes into operation, it will attract and motivate investors in the manufacturing sector to invest in the locality later.

To ensure that the petrochemical plant operates safely, efficiently with high reliability and produces the best quality Polypropylene products, the project has selected the most advanced patented technologies in the field of Polypropylene production. currently include PDH technology from Honeywell UOP (USA) and PP technology from LyondellBasell (Italy).

In addition, the project also uses high-quality equipment from EU and G7 countries with a closed, automated, environmentally friendly technological process and reduces greenhouse gas emissions. Stavian Quang Yen Petrochemical Factory was built on an area of ??30ha in Bac Tien Phong Industrial Park, Tien Phong Commune, Quang Yen Town. The plant’s commercial operation is expected to begin in the fourth quarter of 2026.

It is known that the investor of Stavian Quang Yen Petrochemical Factory is Stavian Quang Yen Petrochemical Joint Stock Company, specializing in the production and trading of petrochemical products. The company was established by 2 main shareholders, Stavian Chemical Joint Stock Company (Stavian Chemical) and Yen Hung Liquid Port Joint Stock Company (YHLP).

We remind, Vietnamese petroleum imports rise in six-month period. According to details given by the General Department of Customs, June alone witnessed the country import 717,000 m3 of petroleum with a total value of USD812 million, a decline of 19% in volume and 9% in value over the previous month, said VOV. The department assessed that the Republic of Korea (RoK) was the largest supplier of petroleum to the country in the reviewed period, making up 40% of the total. In addition, the nation imported 1.9 million m3 of petroleum worth US$2 billion, up more than two fold in volume and 3.8 fold in value compared to the same period from last year.
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PetroChina Urumqi Petrochemical is planning to revamp and upgrade its refining facilities by adding some new refining as well as petrochemical units, said Reuters.

A 450,000 tonne/year polypropylene (PP), a 300,000 tonne/year styrene monomer (SM), a 200,000 tonne/year polystyrene (PS), and a 1.2m tonne/year purified phthalate acid (PTA) unit will be installed as the petrochemical part.

The refining part will mainly include a new 1.2m tonne/year solvent deasphalting (SDA), a 2.2m tonne/year fluid catalytic cracking (FCC), and a 1m tonne/year gas fractionation units.

The company is seeking environment approval for proceeding the project.

Urumqi Petrochemical currently runs 8.5m tonnes/year of refining and 1m tonnes/year of para-xylene capacities.

We remind, PetroChina has completed construction of two crude distillation units (CDUs) of its integrated refining and petrochemical complex at Jieyang in Guangdong province. The CDUs each can process 10m tonnes/year, or 200,000 bbl/day, of crude oil. Construction work of the complex, which houses a 400,000 bbl/day refinery, a 1.2m tonne/year cracker and a 2.6m tonne/year aromatics facility, has 98% completed.

PetroChina Urumqi Petrochemical Company Urumqi Complex is an active petrochemical complex located in Xinjiang, China. The complex started commercial operations in 1984 and currently has an active annual capacity of 3.8mtpa. Its capacity is expected to remain the same as 3.8mtpa in 2030. The plants in this complex are operated by Urumqi Petrochemical.
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