Solvay Q3 net profit surges

Solvay SA, a Belgian chemical firm, on Thursday posted a surge in earnings for the third-quarter, helped by increased revenue driven by higher prices and sustained demand, said the company.

For the third-quarter, the company posted an underlying net profit of 509 million euros, higher than last year's 273 million euros.

Underlying EBITDA was at 917 million euros as against 599 million euros of last year. This increase was mainly driven by higher pricing which overcame the significant inflationary costs in the quarter.

Net sales were 3.609 billion euros, versus 2.573 billion euros, posted for the third-quarter of 2021.

As per MRC, Solvay is partnering with two companies to collect and re-use the limestone residues from its soda ash production in Rosignano, furthering the company’s commitment to continually optimize the efficiency and sustainability of its operations. Pending further tests, the new partnerships could accelerate the decrease of limestone residues released into the sea, building upon the action plan announced in September to invest in new technical solutions at the site.
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Celanese Corp. (CE) reported a profit for third quarter that decreased from last year and missed the Street estimates, said the company.

The company's bottom line totaled USD191 million, or USD1.75 per share. This compares with USD506 million, or USD4.56 per share, in last year's third quarter.

Excluding items, Celanese Corp. reported adjusted earnings of USD430 million or USD3.94 per share for the period.

Analysts on average had expected the company to earn USD3.98 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 1.3% to USD2.30 billion from USD2.27 billion last year.

We remind, Celanese has completed the USD11bn acquisition of DuPont’s Mobility & Materials (M&M) business. With the acquisition, announced in February 2022, Celanese obtains a broad portfolio of engineered thermoplastics and elastomers, brands and intellectual property, global production assets, and a “world-class organisation”, it said.

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INEOS Europe AG and Pacific Gas (Hong Kong) Holdings Co., Ltd, have signed long-term time charter agreements for four 99,000 cbm (cubic metre) VLECs (Very Large Ethane Carriers), said the company.

The deal will bring INEOS’ ethane fleet to 16 vessels, with eight VLEC and eight Dragon class ethane carriers. With these agreements, INEOS will have a total of six VLECs under time charter with Pacific Gas.

Several high profile dignitaries attended the signing ceremony, including: Jiang Guodong, Secretary of the Party Committee and Chairman of the Shandong Ocean Group; Yang Jincheng, General Manager and Deputy Secretary of the Party Group of CSSC; Xu Peilin, Vice President of INEOS Olefins and Polymers Asia; Wang Peng, President and Deputy Secretary of the Party Committee of SPDB Financial Leasing; Zhu Zhiqiang, General Manager of Shenzhen Capital Operation Group and Chairman of CIMC Leasing; and Zhang Lianhuai, President of CMB Leasing.

David Thompson, CEO of INEOS Trading & Shipping, said: “Earlier this year, INEOS and Pacific Gas launched the two largest VLECs in the world: the Pacific INEOS Belstaff, and the Pacific INEOS Grenadier. Today’s signing marks the next stage of our cooperation with Pacific Gas, and we look forward to working with them and the other valuable stakeholders in this exciting project."

Chairman Jiang Guodong said “This cooperation benefits from the mutual trust and support of all parties in the project. All parties will take this opportunity to work together and complement each other's advantages to create a new win-win cooperation in future."

The signing of the long-term time charter agreements for four 99,000 cubic meter VLEC vessels will take Pacific Gas’ ethane carrying capacity to the largest in the world.

We remind, INEOS O&P Europe has announced today a EUR30 MM investment in the conversion of its plant in Lillo, at the Port of Antwerp, to enable its existing capacity to produce either monomodal or bi-modal grades of high-density polyethylene (HDPE). This will allow INEOS to meet the strong demand for durable high-end applications such as cable ducts and pipes used to transport green energy sources such as renewable power and hydrogen, whilst enabling the business to follow market trends as society reduces single use packaging.
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Trinseo reported a Q3 net loss and lowered its guidance for the full year, said the company.

The company swung to a net loss because sales fell and costs rose. The company noted declines in sales volumes and customer destocking, particularly in Europe, as well as in consumer durables and building and construction.

Demand was weak because of geopolitical uncertainty in Europe, continued COVID lockdowns in China, a slowdown in US residential construction and minimal improvement in automobile production.

High energy prices in Europe increased uncertainty for Trinseo's customers and contributed to negative styrene margins throughout the quarter.

Trinseo's earnings took further hits from negative net timing and a one-time charge related to raw-material contract obligations and inventory write-downs.

Sales volumes fell because of weaker demand in construction, consumer electronics, health and automobiles. The segment could not fully pass through the rise in natural gas prices in Europe. In North America, demand was stable, with some weakening in construction markets.

Declines in sales volumes more than offset higher prices that Trinseo obtained by passing through higher costs for raw materials. The drop in volumes was pronounced in building and construction and appliances.

We remind, Trinseo said that it has begun an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany. The plant, which has a nameplate capacity of 300,000 tonnes/y, has generated negative profitability of around USD30 M over the last four quarters ending 2Q 2022.
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Westlake’s Q3 earnings before interest, tax, depreciation and amortisation (EBITDA) fell 25% year on year, the US-based chemical producer reported on Thursday, citing a number of reasons, said the company.

The year-on-year earnings decline was led the Performance and Essential Materials segment, which saw lower sales prices and lower integrated margins in polyethylene (PE) and polyvinyl chloride (PVC) resin, lower chlorovinyls production and sales volumes, as well as higher global fuel and power prices.

However, global sales prices for caustic soda rose, and PE sales volumes increased.

"The third quarter saw significant erosion in global macroeconomic indicators and sentiment,” said CEO Albert Chao. “The rapid rise in global fuel and power prices continued, which, along with inflationary pressures, impacted global demand across our businesses, and particularly our European operations,” he said.

“Significant economic headwinds and slowing industrial activity in Europe were compounded by lagging growth in Asia and a meaningful drop in residential construction activity in North America,” he said. “Combined, these effects led to diminished demand across our businesses and lower prices for many of our products," he said.

We remind, Westlake’s Q1 sales rose 72.1% year on year and net income more than tripled on strong demand and higher prices and margins. Significantly higher sales prices and margins across most of Westlake’s businesses, as well as contributions from recently acquired businesses, drove the Q1 results, it said. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 135% to USD1.3bn and the EBITDA margin rose to 32% from 23% in Q1 2021.

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