The Urethane Blog
Everchem Updates
VOLUME XXI
September 14, 2023
Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more
February 22, 2024
Adnoc to Progress in Covestro Talks Ahead of Potential Bump
Eyk Henning and Dinesh Nair, Bloomberg News
Colored foam samples made from toluene diisocyanate (TDI) sit in this arranged photograph at the Covestro AG chemical park in Dormagen, Germany, on Wednesday, May 9, 2018. Bayer AG sold its remaining stake in Covestro, raising 2.2 billion euros ($2.6 billion) as the German drugmaker closes in on the planned $66 billion purchase of genetically modified seeds supplier Monsanto Co. Photographer: Dario Pignatelli/Bloomberg , Bloomberg
(Bloomberg) — Abu Dhabi National Oil Co. is inching toward an improved bid for Covestro AG after finding a potential way to resolve the impasse over its €11.3 billion ($12.1 billion) pursuit of the German chemical maker, people familiar with the matter said.
Adnoc is working with a consulting firm that’s sent dozens of questions to Covestro about the details of its operations, according to the people. The responses could give the Abu Dhabi-based energy giant enough information to improve its bid to slightly more than €60 per share, the people said, asking not to be identified because the information is private.
Shares of Covestro jumped as much as 8.1% in late Frankfurt trading Thursday. They were up 4.8% at 5:35 p.m. in Germany, giving the company a market value of about €9.4 billion.
In December, Adnoc improved its non-binding offer to €60 per share, up from previous proposals of €57 and €55, Bloomberg News has reported. The latest increase wasn’t enough to win over some parts of Covestro’s supervisory board, which thus hasn’t granted Adnoc full access to its data room, the people said.
While Adnoc executives were struggling to justify another bump without access to proper due diligence, Covestro’s responses to the latest questions may help bridge the gap, the people said. It’s still unclear how much Adnoc may be willing to increase its bid and whether it will be enough to win over Covestro.
Deliberations are ongoing, and there’s no certainty they will lead to a deal. Representatives for Adnoc and Covestro declined to comment.
Adnoc has been pursuing Covestro since the middle of last year, part of the Abu Dhabi company’s push to diversify internationally. Its overtures come as the European chemical industry struggles with the region’s anemic growth and a weaker-than-expected rebound in China.
Producers including Lanxess AG and BASF SE warned of disappointing earnings last year. Covestro will announce its full-year results on Feb. 29, when investors also expect it to provide an outlook for the current year and beyond.
Covestro indicated in November it’s on track to generate about €1.4 billion in earnings before interest, taxes, depreciation and amortization in 2024, well below the €2.8 billion it said it could achieve under average market conditions.
(Updates with share movement in third paragraph.)
https://www.bnnbloomberg.ca/adnoc-to-progress-in-covestro-talks-ahead-of-potential-bump-1.2038028
February 22, 2024
Huntsman Announces Fourth Quarter 2023 Earnings
February 21, 2024 4:45pm EST
Fourth Quarter Highlights
- Fourth quarter 2023 net loss attributable to Huntsman of $71 million compared to a net loss of $91 million in the prior year period; fourth quarter 2023 diluted loss per share of $0.41 compared to a diluted loss per share $0.48 in the prior year period.
- Fourth quarter 2023 adjusted net loss attributable to Huntsman of $36 million compared to adjusted net income of $8 million in the prior year period; fourth quarter 2023 adjusted diluted loss per share of $0.21 compared to adjusted diluted income per share of $0.04 in the prior year period.
- Fourth quarter 2023 adjusted EBITDA of $44 million compared to $87 million in the prior year period.
- Fourth quarter 2023 net cash provided by operating activities from continuing operations was $166 million. Free cash flow from continuing operations was $83 million for the fourth quarter 2023 compared to $211 million in the prior year period.
- Repurchased approximately 2.1 million shares for approximately $50 million in the fourth quarter 2023.
- The Board of Directors approved a 5% increase to the quarterly dividend.
| Three months ended | Twelve months ended | |||||||
| December 31, | December 31, | |||||||
| In millions, except per share amounts | 2023 | 2022 | 2023 | 2022 | ||||
| Revenues | $ 1,403 | $ 1,650 | $ 6,111 | $ 8,023 | ||||
| Net (loss) income attributable to Huntsman Corporation | $ (71) | $ (91) | $ 101 | $ 460 | ||||
| Adjusted net (loss) income (1) | $ (36) | $ 8 | $ 67 | $ 636 | ||||
| Diluted (loss) income per share | $ (0.41) | $ (0.48) | $ 0.57 | $ 2.27 | ||||
| Adjusted diluted (loss) income per share(1) | $ (0.21) | $ 0.04 | $ 0.37 | $ 3.13 | ||||
| Adjusted EBITDA(1) | $ 44 | $ 87 | $ 472 | $ 1,155 | ||||
| Net cash provided by operating activities from continuing operations | $ 166 | $ 297 | $ 251 | $ 892 | ||||
| Free cash flow from continuing operations(2) | $ 83 | $ 211 | $ 21 | $ 620 | ||||
| See end of press release for footnote explanations and reconciliations of non-GAAP measures. |
THE WOODLANDS, Texas, Feb. 21, 2024 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2023 results with revenues of $1,403 million, net loss attributable to Huntsman of $71 million, adjusted net loss attributable to Huntsman of $36 million and adjusted EBITDA of $44 million.
Peter R. Huntsman, Chairman, President, and CEO, commented:
“In early 2024 we have seen a moderate improvement from the lows experienced in the fourth quarter 2023, and while we are yet to see a clear inflexion point in demand, we remain positive about the future. We are well positioned to benefit significantly from volume leverage once our end markets improve and as we continue to control our cost base. While the exact timing of a recovery remains uncertain, we are confident that construction spending and industrial activity in our core markets will return to past cycle averages and the world will continue to value energy efficiency and light weighting which impacts two-thirds of our total sales.
“The portfolio changes we have made over the past several years have placed Huntsman in a position to withstand one of the toughest demand environments we have seen in well over a decade. The financial strength of our Company remains our priority as we consider both internal and external investments as well as returning cash to shareholders through our dividend and buybacks.”
Segment Analysis for 4Q23 Compared to 4Q22
Polyurethanes
The decrease in revenues in our Polyurethanes segment for the three months ended December 31, 2023 compared to the same period of 2022 was primarily due to lower MDI average selling prices and lower sales volumes combined with an adverse sales mix. MDI average selling prices decreased due to less favorable supply and demand dynamics. Sales volumes decreased primarily due to an unplanned outage impact in our Rotterdam facility. The decrease in segment adjusted EBITDA was primarily due to lower MDI margins.
February 22, 2024
Delivery of containership capacity hits record levels Global container capacity is set to expand by 10% this year over 2023 despite expectations that vessel recycling will hit records levels. The amount of capacity delivered last year is staggering — some 2.2 million TEUs of vessel capacity came out of shipyards in 2023. Another 1.6 million TEUs of capacity are on the way. Other key metrics from orderbooks, along with additional global shipping charts, are on Gateway. 
February 19, 2024
Olin taps LyondellBasell executive Lane as new President/CEO, succeeding Sutton
Feb. 19, 2024 8:14 PM ETOlin Corporation (OLN) StockLYBBy: Carl Surran, SA News Editor
Olin (NYSE:OLN) said Monday it named LyondellBaseel (LYB) executive Kenneth Lane as its new President and CEO effective March 18, when Scott Sutton will step down from those positions; no explanation was given for Sutton’s departure.
Lane was Executive VP of Global Olefins and Polyolefins at LyondellBasell (LYB), which he joined in 2019 after serving BASF for 13 years and holding executive positions across a wide range of businesses including Polyurethanes, Monomers and Catalysts; previously, he had spent time at BP Chemicals and Amoco Chemical.
Kim Foley will assume Lane’s previous role at LyondellBasell (LYB) after serving as Senior VP of Global Engineering, Turnarounds and Health, Safety and Environment.
February 18, 2024
Buy a Refrigerator in 1926 (Click on the link to see a short from the silent screen era)
[Theater commercial–electric refrigerators]. Buy an electric refrigerator
Video Player
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No polyethylene food wrap back then! My Grandfather sold appliances to local stores as an employee of the electric company in Iowa. It was a pull through to get more people using electricity. Times have changed!
Enjoy
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