The Urethane Blog
Everchem Updates
VOLUME XXI
September 14, 2023
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February 3, 2021
Petrochemical & Refined Products Services – Gross operating margin for the Petrochemical & Refined Products Services segment increased 27 percent, or $63 million to $297 million for the fourth quarter of 2020 from $234 million for the fourth quarter of 2019. Total segment pipeline transportation volumes were up 19 percent to 867 MBPD this quarter versus 729 MBPD for the same quarter in 2019, and marine terminal volumes were up 20 percent to 297 MBPD this quarter compared to the same quarter of 2019.
The partnership’s propylene business reported a $91 million increase in gross operating margin to a record $169 million for the fourth quarter of 2020. Total propylene production volumes increased 17 percent to 104 MBPD for the fourth quarter of 2020 from 89 MBPD in the fourth quarter of 2019. Enterprise’s propylene production facilities located at Mont Belvieu, which includes its propylene fractionators and propane dehydrogenation (“PDH”) unit, contributed $85 million to the quarterly increase in gross operating margin, including $30 million from the PDH facility. This increase was primarily due to higher sales margins, higher average fees, lower maintenance expenses related to the propylene fractionation facilities and an 8 MBPD increase in propylene production from the PDH facility, which on average operated at its nameplate capacity of 25 MBPD for the fourth quarter of 2020. Higher average export fees led to a $3 million increase in gross operating margin from the propylene export terminals, which benefited from a 26 percent increase in export volumes to 24 MBPD in the fourth quarter of 2020 as compared to the fourth quarter of 2019.
Gross operating margin from ethylene exports, pipelines, and related services increased $11 million this quarter compared to the fourth quarter of 2019. The partnership’s ethylene export marine terminal, which was placed into partial service in December 2019 and full service in December 2020, had gross operating margin of $5 million in the fourth quarter of 2020 on loading volumes of 12 MBPD net to our 50 percent interest at the terminal.
Enterprise’s refined products pipeline and related activities reported a $14 million decrease in gross operating margin for the fourth quarter of 2020 compared to the fourth quarter of 2019, primarily due to an $18 million decrease in gross operating margin from our TE Products Pipeline System, primarily due to a 22 MBPD reduction in NGL transportation volumes and lower deficiency fees that were partially offset by higher refined products fees.
Gross operating margin from Enterprise’s octane enhancement, isobutane dehydrogenation (“iBDH”) and related operations for the fourth quarter of 2020 decreased $19 million as a result of lower average sales margins, partially offset by higher sales volumes and lower maintenance expenses.
The partnership’s PDH and octane enhancement facilities are scheduled for planned turnarounds during the first quarter of 2021. We expect these plants to be out of service for approximately 45 days and 24 days, respectively, during the first quarter, with completion of the octane enhancement turnaround expected in April 2021. In addition, we expect to incur approximately $115 million of sustaining capital expenditures associated with these turnarounds in 2021.
https://www.businesswire.com/news/home/20210203005280/en/Enterprise-Reports-2020-Results
February 2, 2021
February 1, 2021
The Urethane industry has continued to experience raw material price increases along with significant product shortages. MDI, along with Polyol and fire retardants have had several price increases over the past several
months. SES has absorbed these and other increases that have resulted in a significant increase in our product costing. In addition to the severity of the increases, the industry is also burdened with significant supply shortages and logistical challenges. SES will continue to work hard to provide you with quality products in a timely manner.
SES must now implement an increase of $0.10/lb effective February 15, 2021 on all SES products shipped after February 12, 2021. This increase will be reflected on all orders shipped after Monday, February 15, 2021.
We continue to value your business and will continue to invest in resources to support your growth and performance in the industry.
Should you have any questions regarding your account or desire more details regarding the increases, please discuss with your account representative. Thank you for your continued support.
February 2, 2021
February 1, 2021
The Urethane industry has continued to experience raw material price increases along with significant product shortages. MDI, along with Polyol and fire retardants have had several price increases over the past several
months. SES has absorbed these and other increases that have resulted in a significant increase in our product costing. In addition to the severity of the increases, the industry is also burdened with significant supply shortages and logistical challenges. SES will continue to work hard to provide you with quality products in a timely manner.
SES must now implement an increase of $0.10/lb effective February 15, 2021 on all SES products shipped after February 12, 2021. This increase will be reflected on all orders shipped after Monday, February 15, 2021.
We continue to value your business and will continue to invest in resources to support your growth and performance in the industry.
Should you have any questions regarding your account or desire more details regarding the increases, please discuss with your account representative. Thank you for your continued support.
February 2, 2021
Tosoh Reports Its Consolidated Results for the First Nine Months of Fiscal 2021
February 02, 2021 –
Tokyo, Japan— Tosoh Corporation is pleased to announce its cumulative consolidated results for the first three quarters of its 2021 fiscal year, from April 1, 2020, to December 31, 2020.
The company’s consolidated net sales for the nine-month period under review were ¥516.6 billion (US$4.9 billion), down ¥75.1 billion, or 12.7%, from the same period of fiscal 2020. The drop in net sales was attributable to a global-scale contraction in demand caused by the spread of the coronavirus and the resulting sharp decline in naphtha and overseas market conditions.
Operating income likewise decreased, ¥15.2 billion, or 23.1%, to ¥50.6 billion (US$476.9 million), from the same period one year earlier. This decrease was due to a decrease in sales volume, and a deterioration in the difference between product receipt and payment due to falling prices for raw materials and fuel.
Ordinary income decreased, ¥18.9 billion, or 26.9%, compared with the same period in fiscal 2020, to ¥51.2 billion (US$482.6 million). A decrease in insurance income was the main factor behind the drop in ordinary income. Profit attributable to owners of the parent company, in turn, fell ¥11.7 billion, or 25.4%, to ¥34.5 billion (US$325.2 million).
During the first nine months of Tosoh’s 2021 fiscal year, the Japanese economy experienced a rapid decline in demand domestically and overseas. This was caused by restrictions on economic and social activity brought about by the spread of the coronavirus. Although there were indications of a gradual upturn in economic activity from summer onward, the outlook for the economy remained uncertain, as the number of people newly infected with the coronavirus rose rapidly in various parts of Japan from the end of 2020. Turning to the global economy, the momentum of coronavirus infection shows no signs of abating, with highly infectious variants having been identified mainly in Europe. The coronavirus continues to cause considerable damage to the societies and economies of countries around the world, giving rise to concerns of a prolonged economic downturn.
Chlor-alkali Group
The Chlor-alkali Group’s net sales amounted to ¥190.7 billion (US$1.8 billion), a decrease of ¥33.0 billion, or 14.7%, compared with the same nine-month period in fiscal 2020. Group operating income also decreased, ¥1.3 billion, or 5.9%, to ¥20.5 billion (US$193.2 million), due to decreased shipments of urethane raw materials and vinyl chloride resin, and a deterioration in the difference between product receipts and payments caused by falling prices of raw materials such as naphtha.
Shipments of caustic soda, primarily for export, were essentially the same as during the corresponding period a year earlier, but product prices fell to reflect the decline in overseas market conditions. Shipments of vinyl chloride monomer (VCM) increased due to increased production volume, while poor market conditions abroad contributed to driving VCM product prices down. Domestic and export shipments of PVC resin decreased due to demand being suppressed by the spread of the coronavirus.
Domestic and export shipments of cement fell due to sluggish demand.
Shipments of methylene diphenyl diisocyanate (MDI), both domestically and overseas, decreased due to the spread of the coronavirus driving demand downward. And product prices fell to reflect a decline in overseas market conditions.
Specialty Group
Net sales by the Specialty Group decreased ¥6.7 billion, or 4.8%, to ¥132.8 billion (US$1.2 billion), compared with the first three quarters of the previous fiscal year. Specialty Group operating income decreased to ¥18.0 billion (US$169.6 million), a decline of ¥5.0 billion, or 21.6%. The decrease was attributable largely to the impact caused by the spread of the coronavirus.
Shipments of ethyleneamine decreased both domestically and overseas because of the spread of the coronavirus suppressing demand.
Among the group’s separation-related products, shipments of liquid chromatography packing materials, primarily to Europe and the United States, increased. Meanwhile, the group’s diagnostic-related products saw a decline in shipments of in vitro diagnostic reagents, to Europe, the United States, and China.
High-silica zeolite shipments, too, decreased, mainly for automotive exhaust gas catalysts. This was the result of sluggish demand caused by the spread of the coronavirus. Shipments of zirconia for decorative applications increased, as did shipments of silica glass, the latter driven by robust demand from the semiconductor market. Domestic and export shipments of electrolytic manganese dioxide for dry cells increased.
February 2, 2021
Tosoh Reports Its Consolidated Results for the First Nine Months of Fiscal 2021
February 02, 2021 –
Tokyo, Japan— Tosoh Corporation is pleased to announce its cumulative consolidated results for the first three quarters of its 2021 fiscal year, from April 1, 2020, to December 31, 2020.
The company’s consolidated net sales for the nine-month period under review were ¥516.6 billion (US$4.9 billion), down ¥75.1 billion, or 12.7%, from the same period of fiscal 2020. The drop in net sales was attributable to a global-scale contraction in demand caused by the spread of the coronavirus and the resulting sharp decline in naphtha and overseas market conditions.
Operating income likewise decreased, ¥15.2 billion, or 23.1%, to ¥50.6 billion (US$476.9 million), from the same period one year earlier. This decrease was due to a decrease in sales volume, and a deterioration in the difference between product receipt and payment due to falling prices for raw materials and fuel.
Ordinary income decreased, ¥18.9 billion, or 26.9%, compared with the same period in fiscal 2020, to ¥51.2 billion (US$482.6 million). A decrease in insurance income was the main factor behind the drop in ordinary income. Profit attributable to owners of the parent company, in turn, fell ¥11.7 billion, or 25.4%, to ¥34.5 billion (US$325.2 million).
During the first nine months of Tosoh’s 2021 fiscal year, the Japanese economy experienced a rapid decline in demand domestically and overseas. This was caused by restrictions on economic and social activity brought about by the spread of the coronavirus. Although there were indications of a gradual upturn in economic activity from summer onward, the outlook for the economy remained uncertain, as the number of people newly infected with the coronavirus rose rapidly in various parts of Japan from the end of 2020. Turning to the global economy, the momentum of coronavirus infection shows no signs of abating, with highly infectious variants having been identified mainly in Europe. The coronavirus continues to cause considerable damage to the societies and economies of countries around the world, giving rise to concerns of a prolonged economic downturn.
Chlor-alkali Group
The Chlor-alkali Group’s net sales amounted to ¥190.7 billion (US$1.8 billion), a decrease of ¥33.0 billion, or 14.7%, compared with the same nine-month period in fiscal 2020. Group operating income also decreased, ¥1.3 billion, or 5.9%, to ¥20.5 billion (US$193.2 million), due to decreased shipments of urethane raw materials and vinyl chloride resin, and a deterioration in the difference between product receipts and payments caused by falling prices of raw materials such as naphtha.
Shipments of caustic soda, primarily for export, were essentially the same as during the corresponding period a year earlier, but product prices fell to reflect the decline in overseas market conditions. Shipments of vinyl chloride monomer (VCM) increased due to increased production volume, while poor market conditions abroad contributed to driving VCM product prices down. Domestic and export shipments of PVC resin decreased due to demand being suppressed by the spread of the coronavirus.
Domestic and export shipments of cement fell due to sluggish demand.
Shipments of methylene diphenyl diisocyanate (MDI), both domestically and overseas, decreased due to the spread of the coronavirus driving demand downward. And product prices fell to reflect a decline in overseas market conditions.
Specialty Group
Net sales by the Specialty Group decreased ¥6.7 billion, or 4.8%, to ¥132.8 billion (US$1.2 billion), compared with the first three quarters of the previous fiscal year. Specialty Group operating income decreased to ¥18.0 billion (US$169.6 million), a decline of ¥5.0 billion, or 21.6%. The decrease was attributable largely to the impact caused by the spread of the coronavirus.
Shipments of ethyleneamine decreased both domestically and overseas because of the spread of the coronavirus suppressing demand.
Among the group’s separation-related products, shipments of liquid chromatography packing materials, primarily to Europe and the United States, increased. Meanwhile, the group’s diagnostic-related products saw a decline in shipments of in vitro diagnostic reagents, to Europe, the United States, and China.
High-silica zeolite shipments, too, decreased, mainly for automotive exhaust gas catalysts. This was the result of sluggish demand caused by the spread of the coronavirus. Shipments of zirconia for decorative applications increased, as did shipments of silica glass, the latter driven by robust demand from the semiconductor market. Domestic and export shipments of electrolytic manganese dioxide for dry cells increased.
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