May 12, 2021

Quality Carriers Sells to CSX

Tampa chemical trucking company sold to CSX in ‘game-changer’ shipping deal

Quality Carriers, which moves bulk chemicals across North America, will vastly expand the rail company’s shipping network.

By Jay CridlinPublished 3 hours agoUpdated 34 minutes ago

A Tampa chemical trucking company is being sold to railroad giant CSX Corp. in a deal expected to create a sprawling rails-to-roadways chemical distribution network across North America.

Quality Distribution, a privately held logistics and transportation company headquartered in downtown Tampa, is spinning off and selling its Quality Carriers arm, which operates North America’s largest shipping network for bulk liquid chemicals like fuels, acids and fertilizers.

Quality Carriers, whose fleet includes 2,500 drivers moving between more than 100 hubs and terminals throughout North America, will remain based in Tampa.

Terms of the sale were not disclosed. The deal is expected to close in late summer or early fall.

In statements released Wednesday, executives from both companies highlighted the scope and potential impact of the deal. The companies’ “unique and seamless rail-to-highway offering,” said Quality Controls president Randy Strutz, would be the “first of its kind,” said CSX president and CEO James Foote.

In a statement, Quality Distribution chairman and CEO Gary Enzor called the deal “a game-changer for our industry.”

“This transaction gives CSX and Quality Carriers the unique opportunity to offer a powerful combination of truck and rail solutions to customers, with the added benefit of maintaining QC’s headquarters in Tampa,” Enzor said.Related: $2 billion packaging company relocating HQ to Tampa, bringing 200 jobs

In a brief video addressed to Quality Carriers drivers, Strutz said the deal would lead to “more opportunities and more choices” for truckers who prefer both local and long-haul jobs.

As part of the deal, Quality Distribution will spin another subsidiary, Boasso Global, into its own standalone company, and cease using the Quality Distribution brand name. Boasso provides shipping services for bulk shipping containers through a network of hubs in North America and Europe. It will continue to be based in Tampa.

Company officials said 99 percent of Quality Distribution’s workforce will remain in place, with most changes taking place at the corporate management level. Enzor will step down as Quality Distribution’s chariman and CEO, but will remain on Boasso’s board of directors. Joe Troy, Boasso’s executive vice president and chief financial officer, will step up and become CEO.Related: Clearwater’s MarineMax buys Wisconsin yacht builder for $63 million

Founded in 1913 in Pennsylvania, Quality Distribution has been based in the Tampa Bay area for decades. In 2015, the company was sold for $800 million to private equity firm Apex Partners. The previous year, the company had reported $991.7 million in revenue and $20.6 million in net income.

Based in Jacksonville, CSX last year reported nearly $10.6 billion in revenue, including $2.3 billion from its chemical transportation business, the most of any sector. The company’s intermodal business, linking trains and trucks, represented around 16 percent of its overall revenue.

https://www.tampabay.com/news/business/2021/05/12/tampa-chemical-trucking-company-sold-to-csx-in-game-changer-shipping-deal/

May 12, 2021

Fallout from Indorama Fire

Indorama Force Majeure Notice . April 28th, 2021

In Pricing by PattyHMay 4, 2021

Dear Valued Customer:

Late last week we experienced a small fire at our manufacturing facility in Port Neches,
TX (the “Site”). While we are very fortunate to have contained the fire and experienced zero
personal injuries, we are forced to shut down a portion of our manufacturing facilities at the
Site. This shut down prevents us from performing as required under various manufacturing
and supply contracts. As a result, Indorama declares Force Majeure under all contracts
requiring Indorama to manufacture, supply or otherwise deliver:

(i) PROPYLENE OXIDE (ALL GRADES and SPECIFICATIONS);
(ii) PROPYLENE GLYCOL (ALL GRADES and SPECIFICATIONS); and
(iii) METHYL TERTIARY BUTYL ETHER – MTBE (collectively, “Products”).

This Force Majeure is effective as of April 28, 2021 at 10:50 p.m. Because the impact
of the fire is still unfolding, we are unable to estimate the duration or the impact of this Force
Majeure declaration. We will strive to promptly update you of all material developments as
soon as they occur and will notify you of any allocation impacting the manufacture, supply or
delivery of Products to you for the remainder of April into May, or longer, as applicable.
We expect to start up and resume operations as soon as reasonably practical, consistent
with our commitment to the safety of our employees and the communities in which we operate.

May 12, 2021

Fallout from Indorama Fire

Indorama Force Majeure Notice . April 28th, 2021

In Pricing by PattyHMay 4, 2021

Dear Valued Customer:

Late last week we experienced a small fire at our manufacturing facility in Port Neches,
TX (the “Site”). While we are very fortunate to have contained the fire and experienced zero
personal injuries, we are forced to shut down a portion of our manufacturing facilities at the
Site. This shut down prevents us from performing as required under various manufacturing
and supply contracts. As a result, Indorama declares Force Majeure under all contracts
requiring Indorama to manufacture, supply or otherwise deliver:

(i) PROPYLENE OXIDE (ALL GRADES and SPECIFICATIONS);
(ii) PROPYLENE GLYCOL (ALL GRADES and SPECIFICATIONS); and
(iii) METHYL TERTIARY BUTYL ETHER – MTBE (collectively, “Products”).

This Force Majeure is effective as of April 28, 2021 at 10:50 p.m. Because the impact
of the fire is still unfolding, we are unable to estimate the duration or the impact of this Force
Majeure declaration. We will strive to promptly update you of all material developments as
soon as they occur and will notify you of any allocation impacting the manufacture, supply or
delivery of Products to you for the remainder of April into May, or longer, as applicable.
We expect to start up and resume operations as soon as reasonably practical, consistent
with our commitment to the safety of our employees and the communities in which we operate.

May 7, 2021

LyondellBasell PO Results Hampered by Storm

Intermediates & Derivatives (I&D)– Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.

Three months ended March 31, 2021 versus three months ended December 31, 2020 – EBITDA decreased $14 million versus the fourth quarter 2020, excluding an unfavorable variance of $66 million due to LCM inventory benefits in the fourth quarter.  First quarter results increased approximately $50 million due to LIFO inventory valuation charges in the fourth quarter.  Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $35 million due to lower volumes driven by Texas weather events and planned maintenance partially offset by higher margins due to tight market supply.  Intermediate Chemicals results decreased about $55 million primarily due to a decrease in volumes driven by the weather events.  Oxyfuels & Related Products results increased approximately $25 million with higher margins benefiting from improving gasoline prices partially offset by lower volumes.

Three months ended March 31, 2021 versus three months ended March 31, 2020 – EBITDA decreased $99 million versus the first quarter 2020, excluding a favorable variance of $78 million due to LCM inventory charges in the first quarter 2020.  First quarter 2021 results benefited approximately $10 million due to an increase in the euro versus the U.S. dollar exchange rate relative to the first quarter 2020.  Compared with the prior period, Propylene Oxide & Derivatives results decreased about $25 million due to lower volumes driven by the weather events and planned maintenance partially offset by higher margins due to tight market supply.  Intermediate Chemicals results decreased approximately $20 million due to lower margins driven by higher feedstock costs and lower volumes.  Oxyfuels & Related Products results decreased approximately $70 million driven by lower margins and volumes. Volumes were lower driven by weather events and lower gasoline demand.  Equity income increased more than $10 million due to improved results at our joint venture in China.

https://lyondellbasell.mediaroom.com/index.php?s=43&item=1365

May 7, 2021

LyondellBasell PO Results Hampered by Storm

Intermediates & Derivatives (I&D)– Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.

Three months ended March 31, 2021 versus three months ended December 31, 2020 – EBITDA decreased $14 million versus the fourth quarter 2020, excluding an unfavorable variance of $66 million due to LCM inventory benefits in the fourth quarter.  First quarter results increased approximately $50 million due to LIFO inventory valuation charges in the fourth quarter.  Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $35 million due to lower volumes driven by Texas weather events and planned maintenance partially offset by higher margins due to tight market supply.  Intermediate Chemicals results decreased about $55 million primarily due to a decrease in volumes driven by the weather events.  Oxyfuels & Related Products results increased approximately $25 million with higher margins benefiting from improving gasoline prices partially offset by lower volumes.

Three months ended March 31, 2021 versus three months ended March 31, 2020 – EBITDA decreased $99 million versus the first quarter 2020, excluding a favorable variance of $78 million due to LCM inventory charges in the first quarter 2020.  First quarter 2021 results benefited approximately $10 million due to an increase in the euro versus the U.S. dollar exchange rate relative to the first quarter 2020.  Compared with the prior period, Propylene Oxide & Derivatives results decreased about $25 million due to lower volumes driven by the weather events and planned maintenance partially offset by higher margins due to tight market supply.  Intermediate Chemicals results decreased approximately $20 million due to lower margins driven by higher feedstock costs and lower volumes.  Oxyfuels & Related Products results decreased approximately $70 million driven by lower margins and volumes. Volumes were lower driven by weather events and lower gasoline demand.  Equity income increased more than $10 million due to improved results at our joint venture in China.

https://lyondellbasell.mediaroom.com/index.php?s=43&item=1365