BASF earnings expected down

MOSCOW (MRC) -- BASF’s Q1 2023 earnings are expected to fall by almost 32% year on year, beating analysts’ consensus forecasts, while net income for the period is expected to be firmer as a result of impairments on oil and gas joint venture Wintershall Dea in early 2022, said the company.

Q1 sales are expected to have dropped substantially below analysts’ forecasts as a result of “considerably” lower volumes, the Germany-headquartered chemicals major said in a preliminary results statement.

Q1 earnings before interest and taxes (EBIT) and special items is also expected to surpass analysts’ projections despite the year-on-year fall, with the company’s agricultural solutions and chemicals, materials and surface technologies divisions both performing more strongly than expected.

BASF’s industrial solutions and nutrition and care segments are both expected to undershoot market expectations, the company added.

The company booked a EUR1.1bn charge on its majority stake in Wintershall during the first three months of 2022 in the wake of the onset of Russia’s invasion of Ukraine and the German government’s move to freeze approvals for the Nord Stream 2 pipeline.

BASF will release its finalised Q1 results on 27 April.

We remind, BASF announced that it has received the International Sustainability and Carbon Certification (ISCC) PLUS for certain grades of plastic additives produced at its manufacturing sites in Kaisten, Switzerland and McIntosh, Alabama, United States.

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MOSOCW (MRC) -- BASF announced that it has received the International Sustainability and Carbon Certification (ISCC) PLUS for certain grades of plastic additives produced at its manufacturing sites in Kaisten, Switzerland and McIntosh, Alabama, United States, said the company.

This certification will enable BASF to offer more sustainable grades of its core plastic additives with a reduced Product Carbon Footprint (PCF) through the use of renewable raw materials in a mass balance approach. An ISCC PLUS certification covers the entire value chain and ensures the use of renewable materials. It is an internationally recognized certification process for the mass balance methodology.

This certification paves the way for BASF to offer mass balance certificates for certain products to its plastic additives customers. As part of the mass balance certification, a chain of custody must be demonstrated from the input of renewable raw materials to the final sale product with sustainability claims. The company’s manufacturing sites in Switzerland and the United States are the two pilot sites for this certification as part of a global implementation.

“We are the first plastic additives supplier to offer a selected range of biomass balance certified antioxidants as an extension of our VALERAS portfolio. Our customers now have a choice of more sustainable antioxidants that are produced using responsibly sourced and renewable materials instead of fossil resources without compromising their high functional performance,” said Dr. Achim Sties, Senior Vice President, Plastic Additives, BASF. “As we continue the journey with our customers and partners to create new value for plastics, we focus on driving innovations that make a significant contribution to sustainability."

We remind, BASF will establish compounding capacities for its certified compostable biopolymer ecovio in Shanghai, China, said the company. Upon the successful completion of qualification trials, commercial material quantities will be available for customers throughout the region Asia-Pacific from mid-2023.

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MOSCOW (MRC) -- Maire Tecnimont S.p.A. announces that, through its subsidiary NextChem Holding S.p.A., it has finalized the acquisition of an 83.5% stake of Conser, a technology licensor and process engineering design company based in Rome, Italy, as already announced on January 23, 2023, said Hydrocarbonprocessing.

The purchase price is approximately EUR35.8 MM, of which EUR28.4 MM paid upfront and EUR7.4 MM deferred and subject to certain conditions. The agreement provides also an earn-out clause based on the achievement of specific operating results relating to FY 2023 and 2024 as well as put and call options on the remaining 16.5% stake exercisable within the next three years.

With this acquisition, MAIRE strengthens its leadership in the energy transition and circular economy field, adding innovative and sustainable technologies for biodegradable plastics intermediates and high value-added specialty chemicals to its portfolio. These technologies may be exploited in new markets thanks to MAIRE’s global commercial network and integrated project execution capability. Further growth opportunities may come from the development of a fully biodegradable or bio-based polymer, in line with the decarbonization strategy undertaken by the Group.

Founded more than 50 years ago, Conser can rely on an extremely diverse portfolio of technology patents dedicated to the energy transition and added-value specialty chemicals processes, including cost-effective and process-flexible technologies for maleic anhydride, butanediol and dimethyl succinate, which are crucial building blocks for the production of biodegradable plastics. Given their excellent biodegradation properties, these plastics show very promising prospects driven by a growing demand, especially in Asia. Conser’s portfolio also includes technologies for fine chemistry for lithium battery production, and bio-based derivatives (plant glycerin). In 2023 Conser is expected to generate operating results (EBITDA) in the range of EUR13-15 MM and to post a net cash position of over EUR10 mln.

Conser has been advised by FAI ADVISORY and by law firm Foschiani of Rome, while MAIRE has been supported by its internal M&A, legal and corporate affairs teams.

We remind, Maire Tecnimont S.p.A. announces that, through its subsidiary NextChem Holding S.p.A., it is expanding into the high-value derivates and biodegradable plastic by-products licensing markets with the acquisition of an 83,5% stake of Conser, a technology licensor and process engineering design company based in Rome, Italy.

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MOSCOW (MRC) -- Axens has acquired stakes in the BioTJet project, the aim of which is to build and operate the largest European Sustainable Aviation Fuel (SAF) production unit using the Fischer-Tropsch process, relying on the BioTfueL technology, said Hydrocarbonprocessing.

This unit will be built in France and will be started up by 2027. BioTfueL is an advanced biofuel production technology using the thermochemical route, developed and proven within the framework of the eponymous project from 2010 to 2021. The BioTfueL process, includes Gasel, a technology suite licensed by Axens, used to produce high quality renewable fuels by the Fischer Tropsch process.

Within the framework of the BioTJet project, Axens is surrounded by its partners, Elyse Energy, Avril, IFP Energies nouvelles through its investment subsidiary IFP Investissements, and Bionext, and is thus part of the European energy transition strategy in line with the ambitious objectives of decarbonization of the aviation sector.

Axens is supporting the development of the BioTJet project above and beyond the conventional role of licensor, equipment, catalyst and adsorbent supplier, by becoming a shareholder and partner of the BioTJet project company. Axens’ equity investment in an industrial scale project marks a key milestone for the commercial development of BioTfueL.

The BioTJet project will make it possible to process a broad spectrum of lignocellulosic biomasses, which do not compete with food uses, in a chain combining torrefaction, gasification and Fischer Tropsch synthesis, for the production of SAF and by-products such as sustainable naphtha.

The BioTJet project has received support from the ADEME (The French Agency for Ecological Transition) as part of the France 2030’s 4th Investments for the Future Program, through the Call for Proposals for the "Development of a French Sustainable Aviation Fuel production sector". A final investment decision is expected end 2024 for a start up by 2027.

We remind, Axens (Rueil-Malmaison, France) announced that earlier this year it demonstrated the successful start-up of the first ethanol-to-ethylene pilot plant based on Axens Atol technology with Sumitomo Chemical, which is going on the waste-to-polyolefins project in Japan. At full rollout, this project will attain the production of waste-based polyolefin at industrial scale, representing a step forward towards a circular economy based on renewable carbon.

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MOSOCW (MRC) -- Kevin O’Leary, star of “Shark Tank” and chairman of O’Leary Ventures announced his plans to build a USD14 bn oil refinery with the goal of reigniting America’s energy independence, said Hydrocarbonprocessing.

On a recent episode of Fox News’ “The Big Money Show”, O’Leary stated "I'm at that stage in my life where I want to do something big. And the task that I've decided I'm going to take on is, I'm going to build a refinery in America. I'm going to do it,"

"It's going to cost about USD14 billion," he explained. "I'm going to syndicate that debt and that equity. I'm going to find a state that wants to work with me. I'm going to get a permit and we're going to do the right thing for America. We have to have more refineries."

O’Leary later continued, "The Middle East, that produces most of the world's oil, has already told every economy, including ours: do not depend on us in perpetuity for your energy; if you can find your way to energy independence, you do it and in fact, we'll invest in it for you because we have to supply energy to the entire world," O'Leary said. "Unfortunately, no matter how much you think we're getting off hydrocarbons, it's not going to happen for 50 years."

"At the end of the day, we can make our own energy here very clean. We haven't built a refinery in America in decades because we can't permit it," the "Shark Tank" star said. Responding to a question from the audience, O’Leary went on to note that America’s energy independence is a “top-three election issue”.

We remind, Axens has acquired stakes in the BioTJet project, the aim of which is to build and operate the largest European Sustainable Aviation Fuel (SAF) production unit using the Fischer-Tropsch process, relying on the BioTfueL technology. This unit will be built in France and will be started up by 2027.

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