Company News
February 15, 2021
Propylene Oxide in Korea
S-Oil expected to continue recovery this year
신문5면 1단 기사입력 2021.02.14. 오후 4:42 최종수정 2021.02.14. 오후 4:45 기사원문스크랩 좋아요 좋아요 평가하기 2 댓글 글자 크기 변경하기인쇄하기 보내기 
S-Oil’s residue upgrading facility (S-Oil)
S-Oil, South Korea’s No. 3 refiner, is expected to see an improvement in profits this year, continuing a recovery momentum from the final quarter of 2020, according to the industry sources Sunday.
S-Oil said the company expects a recovery based on the increasing profitability of the company’s petrochemical products, including propylene oxide and polypropylene.
S-Oil noted the company plans to increase production capacity for propylene oxide through which the company managed to offset the weak refining margin in the last quarter.
During the October-December period, S-Oil’s refining business posted an operating loss of 89.7 billion won. However, the company’s petrochemical and lube oil units posted 72.7 billion won and 110 billion won of operating profits.
S-Oil was the only refiner — among four local refiners in the nation — that avoided plunging into the red.
Increasing profitability of propylene oxide, in particular, helped the company, the firm said.
The price of propylene oxide per metric ton in the fourth quarter last year reached an all-time high since December 2014, increasing 85 percent to reach $1,098 from $595 in the previous quarter.
The refiner said it plans to add its production capacity for propylene oxide by 30,000-40,000 tons to maximize profits from the petrochemical product.
The company also anticipated a recovery in refining margins in the wake of the global rollout of COVID-19 vaccines, which will boost travel demand worldwide.
According to Meritz Securities here, S-Oil’s operating profit this year is expected to hit 1.02 trillion won, turning around from the operating loss of 1.08 trillion won in 2020.
By Shim Woo-hyun (ws@heraldcorp.com)
February 15, 2021
Propylene Oxide in Korea
S-Oil expected to continue recovery this year
신문5면 1단 기사입력 2021.02.14. 오후 4:42 최종수정 2021.02.14. 오후 4:45 기사원문스크랩 좋아요 좋아요 평가하기 2 댓글 글자 크기 변경하기인쇄하기 보내기 S-Oil’s residue upgrading facility (S-Oil)
S-Oil, South Korea’s No. 3 refiner, is expected to see an improvement in profits this year, continuing a recovery momentum from the final quarter of 2020, according to the industry sources Sunday.
S-Oil said the company expects a recovery based on the increasing profitability of the company’s petrochemical products, including propylene oxide and polypropylene.
S-Oil noted the company plans to increase production capacity for propylene oxide through which the company managed to offset the weak refining margin in the last quarter.
During the October-December period, S-Oil’s refining business posted an operating loss of 89.7 billion won. However, the company’s petrochemical and lube oil units posted 72.7 billion won and 110 billion won of operating profits.
S-Oil was the only refiner — among four local refiners in the nation — that avoided plunging into the red.
Increasing profitability of propylene oxide, in particular, helped the company, the firm said.
The price of propylene oxide per metric ton in the fourth quarter last year reached an all-time high since December 2014, increasing 85 percent to reach $1,098 from $595 in the previous quarter.
The refiner said it plans to add its production capacity for propylene oxide by 30,000-40,000 tons to maximize profits from the petrochemical product.
The company also anticipated a recovery in refining margins in the wake of the global rollout of COVID-19 vaccines, which will boost travel demand worldwide.
According to Meritz Securities here, S-Oil’s operating profit this year is expected to hit 1.02 trillion won, turning around from the operating loss of 1.08 trillion won in 2020.
By Shim Woo-hyun (ws@heraldcorp.com)
February 12, 2021
Lyondell Raises Glycol Prices
February 12, 2021
Subject: Lyondell Chemical Company; Propylene Glycol Price Increase
Dear Valued Customer,
Effective March 1, 2021 or as contracts allow, Lyondell Chemical Company (“Lyondell”) is increasing off list prices for all grades of Propylene Glycol in North America and South America per the following:
Propylene Glycol Industrial Grade (PGI) $0.20/lb
Propylene Glycol USP/EP Grade (PG USP/EP) $0.20/lb
Di-Propylene Glycol Industrial Grade (DPGI) $0.22/lb
Di-Propylene Glycol Fragrance Grade (DPGF) $0.22/lb
Tri-Propylene Glycol (TPG) $0.24/lb
Tri-Propylene Glycol Acrylate Grade (TPGA) $0.24/lb
This price increase is in addition to the previous price increase of $0.04/lb for all Propylene Glycol grades, effective February 15, 2021, announced by Lyondell.
Our acceptance of orders submitted prior to the increase date will be subject to our ability to supply. We appreciate the confidence you have placed in us as a supplier, and we look forward to our continuing business relationship. As always, your account manager is available to work
with you or answer any questions you may have.
February 12, 2021
Lyondell Raises Glycol Prices
February 12, 2021
Subject: Lyondell Chemical Company; Propylene Glycol Price Increase
Dear Valued Customer,
Effective March 1, 2021 or as contracts allow, Lyondell Chemical Company (“Lyondell”) is increasing off list prices for all grades of Propylene Glycol in North America and South America per the following:
Propylene Glycol Industrial Grade (PGI) $0.20/lb
Propylene Glycol USP/EP Grade (PG USP/EP) $0.20/lb
Di-Propylene Glycol Industrial Grade (DPGI) $0.22/lb
Di-Propylene Glycol Fragrance Grade (DPGF) $0.22/lb
Tri-Propylene Glycol (TPG) $0.24/lb
Tri-Propylene Glycol Acrylate Grade (TPGA) $0.24/lb
This price increase is in addition to the previous price increase of $0.04/lb for all Propylene Glycol grades, effective February 15, 2021, announced by Lyondell.
Our acceptance of orders submitted prior to the increase date will be subject to our ability to supply. We appreciate the confidence you have placed in us as a supplier, and we look forward to our continuing business relationship. As always, your account manager is available to work
with you or answer any questions you may have.
February 12, 2021
Huntsman Posts Solid Quarter
Huntsman Announces Fourth Quarter and Full Year 2020 Earnings; Strong Recovery with Solid Cash Flow
Download as PDF February 12, 2021 6:00am EST
THE WOODLANDS, Texas, Feb. 12, 2021 /PRNewswire/ —
Fourth Quarter Highlights
- Fourth quarter 2020 net income of $360 million compared to net income of $308 million in the prior year period; fourth quarter 2020 diluted earnings per share of $1.54 compared to diluted earnings per share of $1.34 in the prior year period.
- Fourth quarter 2020 adjusted net income of $113 million compared to adjusted net income of $65 million in the prior year period; fourth quarter 2020 adjusted diluted earnings per share of $0.51 compared to adjusted diluted earnings per share of $0.29 in the prior year period.
- Fourth quarter 2020 adjusted EBITDA of $240 million compared to adjusted EBITDA of $182 million in the prior year period.
- Fourth quarter 2020 net cash provided by operating activities from continuing operations was $167 million. Free cash flow from continuing operations was $88 million for the fourth quarter 2020 and adjusted free cash flow from continuing operations was $157 million.
- Balance sheet remains strong with a net leverage of 0.8x and total liquidity is approximately $3 billion. On January 15, 2021 we redeemed in full €445 million (approximately $541 million) in aggregate principle amount of our 5.125% Senior notes due 2021 at par from available cash.
- Completed the sale of Venator Materials PLC ordinary shares to funds advised by SK Capital on December 23, 2020. Together with estimated cash tax savings of approximately $150 million, which this transaction facilitated, secured an aggregate total cash benefit of approximately $250 million.
- Announced the acquisition of Gabriel Performance Products within our Advanced Materials segment for $250 million on December 7, 2020, which was completed on January 15, 2021.
- In our Company wide optimization efforts, we are now targeting annualized savings and acquisition integration synergies in excess of $120 million, to be achieved by mid-2023. $27 million of targeted annualized savings achieved in 2020.
Peter R. Huntsman, Chairman, President and CEO, commented:
“In the midst of a very challenging 2020, our commitment was to emerge stronger and better. I am very pleased to report that we were able to exceed our expectations. Our fourth quarter adjusted EBITDA significantly exceeded our fourth quarter of a year ago, even despite a lagging recovery in Aerospace. We also delivered a solid fourth quarter and full year free cash flow, beyond what we anticipated. We had added three highly complementary, differentiated businesses to our core portfolio, and are on track to deliver on over $40 million of annualized related synergies. Together with our cost realignment and business optimization plans, we target in excess of $120 million of annualized benefits by mid-2023. Our balance sheet remains very strong. While we are prepared for macro uncertainties to continue in 2021, we see steady improvements over 2020 in most of our core markets and we remain totally committed to creating value for our shareholders.”
Segment Analysis for 4Q20 Compared to 4Q19
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended December 31, 2020 compared to the same period in 2019 was primarily due to higher MDI average selling prices, partially offset by lower sales volumes. Both differentiated and component MDI average selling prices increased primarily in China and Europe. MDI sales volumes decreased primarily due to unplanned supplier outages. The increase in segment adjusted EBITDA was primarily due to higher MDI margins driven by higher MDI pricing, partially offset by lower MDI sales volumes.
Advanced Materials
The decrease in revenues in our Advanced Materials segment for the three months ended December 31, 2020 compared to the same period in 2019 was primarily due to lower sales volumes, predominantly due to weakness in our aerospace and commodity markets. Sales volumes decreased across most markets primarily due to economic slowdown and customer destocking. Segment adjusted EBITDA decreased due to lower sales volumes, partially offset by lower fixed costs. The adjusted EBITDA contribution from our recent acquisition of CVC Thermoset Specialties was offset by the lost adjusted EBITDA from the divestiture of our India-based DIY consumer adhesives business.
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