The Urethane Blog

Everchem Updates

VOLUME XXI

September 14, 2023

Everchem’s Closers Only Club

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 14, 2020

Rhine River Water Issues

Reduced loading rates as Rhine levels dwindle

Author: Tom Brown

2020/01/22

LONDON (ICIS)–Falling water levels on key chemicals shipping route the River Rhine have resulted in reduced loading rates for vessels and the prospect of higher transportation costs for materials, sources and water agencies said on Wednesday.

Water levels at the Kaub measuring point near Frankfurt, Germany, have dwindled steadily since late 2019 in the absence of heavy rainfall, to around 120cm on Wednesday morning local time.

Water levels of below a metre at the Kaub point represent the onset of more extreme difficulties in navigating large freight vessels along the river, and there are already substantial restrictions on loading levels, according to a production source.

“Rhine water levels are low and we are seeing 20% under-load on gas barges and about 50% under-load on liquids [such as] aromatics,” it said.

According to German water agency projections,  water levels are expected to dwindle to 100cm or slightly below by the weekend in the absence of any improvement in conditions.

Source: Rhine Shipping Authority

The extent of the restrictions on loading and the resulting surcharges depend on what part of the river, which threads through much of mainland northwest Europe, ships are passing through, according to another.

Kaub is a noted choke point for freight, meaning that vessels headed for Ludwigshafen or Basel are likely to pay heavier fees, and that deliveries in and out of the BASF verbund site in the region are likely to be higher.

“For barges [with] destinations… in the upper Rhine, freight surcharges should be more modest since the water level is better,” the source added.

Soils in the Rhine’s catchment areas have yet to recover from a dry 2019, meaning that a large proportion of what rainfall there has been is retained in the soil, according to a spokesperson at the Rhine Shipping Authority.

Ice run-off from the Alps will be insufficient to replenish water levels, meaning that shipping conditions are likely to worsen until a patch of heavy sustained rainfall.

“The Rhine water levels will keep on falling slowly until significant rainfall will occur. Traffic is going on normally although with reduced loading,” the spokesperson added.

https://www.icis.com/explore/resources/news/2020/01/22/10460890/reduced-loading-rates-as-rhine-levels-dwindle?utm_source=February+20+View&utm_campaign=The+View+feb+2020&utm_medium=email

February 14, 2020

Rhine River Water Issues

Reduced loading rates as Rhine levels dwindle

Author: Tom Brown

2020/01/22

LONDON (ICIS)–Falling water levels on key chemicals shipping route the River Rhine have resulted in reduced loading rates for vessels and the prospect of higher transportation costs for materials, sources and water agencies said on Wednesday.

Water levels at the Kaub measuring point near Frankfurt, Germany, have dwindled steadily since late 2019 in the absence of heavy rainfall, to around 120cm on Wednesday morning local time.

Water levels of below a metre at the Kaub point represent the onset of more extreme difficulties in navigating large freight vessels along the river, and there are already substantial restrictions on loading levels, according to a production source.

“Rhine water levels are low and we are seeing 20% under-load on gas barges and about 50% under-load on liquids [such as] aromatics,” it said.

According to German water agency projections,  water levels are expected to dwindle to 100cm or slightly below by the weekend in the absence of any improvement in conditions.

Source: Rhine Shipping Authority

The extent of the restrictions on loading and the resulting surcharges depend on what part of the river, which threads through much of mainland northwest Europe, ships are passing through, according to another.

Kaub is a noted choke point for freight, meaning that vessels headed for Ludwigshafen or Basel are likely to pay heavier fees, and that deliveries in and out of the BASF verbund site in the region are likely to be higher.

“For barges [with] destinations… in the upper Rhine, freight surcharges should be more modest since the water level is better,” the source added.

Soils in the Rhine’s catchment areas have yet to recover from a dry 2019, meaning that a large proportion of what rainfall there has been is retained in the soil, according to a spokesperson at the Rhine Shipping Authority.

Ice run-off from the Alps will be insufficient to replenish water levels, meaning that shipping conditions are likely to worsen until a patch of heavy sustained rainfall.

“The Rhine water levels will keep on falling slowly until significant rainfall will occur. Traffic is going on normally although with reduced loading,” the spokesperson added.

https://www.icis.com/explore/resources/news/2020/01/22/10460890/reduced-loading-rates-as-rhine-levels-dwindle?utm_source=February+20+View&utm_campaign=The+View+feb+2020&utm_medium=email

February 13, 2020

Huntsman Quarterly Results

Huntsman Announces Full Year 2019 Earnings; Another Year of Strong Cash Flow Generation

THE WOODLANDS, Texas, Feb. 13, 2020 /PRNewswire/ —

Full Year 2019 and Fourth Quarter Highlights

  • 2019 net income of $598 million compared to $650 million in the prior year period; 2019 diluted earnings per share of $2.44 compared to $1.39 in the prior year period.
  • 2019 adjusted net income of $353 million compared to $642 million in the prior year period; 2019 adjusted diluted earnings per share of $1.53 compared to $2.66 in the prior year period.
  • 2019 adjusted EBITDA $846 million compared to $1,161 million in the prior year
  • Fourth quarter 2019 net income of $308 million compared to a net loss of $315 million in the prior year period; fourth quarter 2019 diluted earnings per share of $1.34 compared to a loss per share of $1.43 in the prior year period.
  • Fourth quarter 2019 adjusted net income of $65 million compared to $90 million in the prior year period; fourth quarter 2019 adjusted diluted earnings per share of $0.29 compared to $0.38 in the prior year period.
  • Fourth quarter 2019 adjusted EBITDA of $182 million compared to $207 million in the prior year period.
  • 2019 net cash provided by operating activities from continuing operations of $656 million. 2019 free cash flow from continuing operations was $389 million.
  • Balance sheet remains strong with total Company net debt leverage of 1.7x; proforma net debt leverage for the proceeds from the Chemical Intermediates and Surfactants sale that closed on January 3, 2020 is 0.4x.
  • 2019 share repurchases of approximately 10.1 million shares for approximately $208 million.
  • Previously announced acquisition of Icynene-Lapolla, a spray polyurethane foam business, is now on track to close in the first quarter of 2020.

 

Three months ended

Twelve months ended

December 31,

December 31,

In millions, except per share amounts

2019

2018

2019

2018

Revenues

$    1,657

$    1,821

$    6,797

$    7,604

Net income (loss)

$       308

$      (315)

$       598

$       650

Adjusted net income(1)

$         65

$          90

$       353

$       642

Diluted income (loss) per share

$      1.34

$     (1.43)

$      2.44

$      1.39

Adjusted diluted income per share(1)

$      0.29

$      0.38

$      1.53

$      2.66

Adjusted EBITDA(1)

$       182

$       207

$       846

$     1,161

Net cash provided by operating activities from continuing operations

$       222

$       258

$       656

$       704

Free cash flow from continuing operations(2)

$       131

$       154

$       389

$       454

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2019 results with revenues of $1,657 million, net income of $308 million, adjusted net income of $65 million and adjusted EBITDA of $182 million.

Peter R. Huntsman, Chairman, President and CEO, commented:

“2019 was a memorable year for Huntsman with several milestones achieved that significantly strengthened the Company for years to come.  The biggest milestone was the $2 billion divestiture of our Chemical Intermediates and Surfactants businesses, which significantly reduces our upstream footprint.  The proceeds from this sale have further fortified our investment grade balance sheet and enhances our ability to focus on and grow our core downstream businesses.  Additionally, we acquired the remaining 50% investment in our Maleic Anhydride joint venture from Sasol, we opened a new polyurethanes system house in Dubai, and in early December we announced the agreement to acquire Icynene-Lapolla which will double the size of our existing high growth spray foam business.  We remained balanced in our capital allocation by repurchasing over $200 million in stock and paying $150 million in dividends to our shareholders.  Lastly, in the beginning of 2019 we achieved our long-term goal to earn an investment grade rating.     

“Heading into 2020 we remain focused on what we can control, which will include investing both organically and through acquisitions into our downstream and specialty platforms, and being balanced in our approach to capital allocation, including maintaining a competitive dividend and ongoing opportunistic share repurchases.  The economic headwinds remain as we enter the year making earnings growth more of a challenge.  However, with our strengthened balance sheet and strong downstream platforms for further growth, I see far more opportunities than challenges before us as we pursue multiple opportunities to create further shareholder value.”

Segment Analysis for 4Q19 Compared to 4Q18

Polyurethanes

The decrease in revenue in our Polyurethanes segment for the three months ended December 31, 2019 compared to the same period in 2018 was primarily due to lower MDI average selling prices, partially offset by higher sales volumes.  MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe.  MDI sales volumes increased primarily due to higher demand across most major markets.  The decrease in segment adjusted EBITDA was primarily due to lower MDI margins driven by lower MDI pricing partially offset with higher MDI sales volumes.

https://ir.huntsman.com/news-releases/detail/427/huntsman-announces-full-year-2019-earnings-another-year-of

February 13, 2020

Huntsman Quarterly Results

Huntsman Announces Full Year 2019 Earnings; Another Year of Strong Cash Flow Generation

THE WOODLANDS, Texas, Feb. 13, 2020 /PRNewswire/ —

Full Year 2019 and Fourth Quarter Highlights

  • 2019 net income of $598 million compared to $650 million in the prior year period; 2019 diluted earnings per share of $2.44 compared to $1.39 in the prior year period.
  • 2019 adjusted net income of $353 million compared to $642 million in the prior year period; 2019 adjusted diluted earnings per share of $1.53 compared to $2.66 in the prior year period.
  • 2019 adjusted EBITDA $846 million compared to $1,161 million in the prior year
  • Fourth quarter 2019 net income of $308 million compared to a net loss of $315 million in the prior year period; fourth quarter 2019 diluted earnings per share of $1.34 compared to a loss per share of $1.43 in the prior year period.
  • Fourth quarter 2019 adjusted net income of $65 million compared to $90 million in the prior year period; fourth quarter 2019 adjusted diluted earnings per share of $0.29 compared to $0.38 in the prior year period.
  • Fourth quarter 2019 adjusted EBITDA of $182 million compared to $207 million in the prior year period.
  • 2019 net cash provided by operating activities from continuing operations of $656 million. 2019 free cash flow from continuing operations was $389 million.
  • Balance sheet remains strong with total Company net debt leverage of 1.7x; proforma net debt leverage for the proceeds from the Chemical Intermediates and Surfactants sale that closed on January 3, 2020 is 0.4x.
  • 2019 share repurchases of approximately 10.1 million shares for approximately $208 million.
  • Previously announced acquisition of Icynene-Lapolla, a spray polyurethane foam business, is now on track to close in the first quarter of 2020.

 

Three months ended

Twelve months ended

December 31,

December 31,

In millions, except per share amounts

2019

2018

2019

2018

Revenues

$    1,657

$    1,821

$    6,797

$    7,604

Net income (loss)

$       308

$      (315)

$       598

$       650

Adjusted net income(1)

$         65

$          90

$       353

$       642

Diluted income (loss) per share

$      1.34

$     (1.43)

$      2.44

$      1.39

Adjusted diluted income per share(1)

$      0.29

$      0.38

$      1.53

$      2.66

Adjusted EBITDA(1)

$       182

$       207

$       846

$     1,161

Net cash provided by operating activities from continuing operations

$       222

$       258

$       656

$       704

Free cash flow from continuing operations(2)

$       131

$       154

$       389

$       454

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Huntsman Corporation (NYSE: HUN) today reported fourth quarter 2019 results with revenues of $1,657 million, net income of $308 million, adjusted net income of $65 million and adjusted EBITDA of $182 million.

Peter R. Huntsman, Chairman, President and CEO, commented:

“2019 was a memorable year for Huntsman with several milestones achieved that significantly strengthened the Company for years to come.  The biggest milestone was the $2 billion divestiture of our Chemical Intermediates and Surfactants businesses, which significantly reduces our upstream footprint.  The proceeds from this sale have further fortified our investment grade balance sheet and enhances our ability to focus on and grow our core downstream businesses.  Additionally, we acquired the remaining 50% investment in our Maleic Anhydride joint venture from Sasol, we opened a new polyurethanes system house in Dubai, and in early December we announced the agreement to acquire Icynene-Lapolla which will double the size of our existing high growth spray foam business.  We remained balanced in our capital allocation by repurchasing over $200 million in stock and paying $150 million in dividends to our shareholders.  Lastly, in the beginning of 2019 we achieved our long-term goal to earn an investment grade rating.     

“Heading into 2020 we remain focused on what we can control, which will include investing both organically and through acquisitions into our downstream and specialty platforms, and being balanced in our approach to capital allocation, including maintaining a competitive dividend and ongoing opportunistic share repurchases.  The economic headwinds remain as we enter the year making earnings growth more of a challenge.  However, with our strengthened balance sheet and strong downstream platforms for further growth, I see far more opportunities than challenges before us as we pursue multiple opportunities to create further shareholder value.”

Segment Analysis for 4Q19 Compared to 4Q18

Polyurethanes

The decrease in revenue in our Polyurethanes segment for the three months ended December 31, 2019 compared to the same period in 2018 was primarily due to lower MDI average selling prices, partially offset by higher sales volumes.  MDI average selling prices decreased primarily due to a decline in component MDI selling prices in China and Europe.  MDI sales volumes increased primarily due to higher demand across most major markets.  The decrease in segment adjusted EBITDA was primarily due to lower MDI margins driven by lower MDI pricing partially offset with higher MDI sales volumes.

https://ir.huntsman.com/news-releases/detail/427/huntsman-announces-full-year-2019-earnings-another-year-of

February 12, 2020

New Foam Plant in Belarus

Polish investor to start making polyurethane foam in Brest Oblast

An archive photo

An archive photo

BREST, 7 February (BelTA) – The Pinsk City Executive Committee and a Polish investor have signed an agreement of intent to set up an enterprise to make polyurethane foam, BelTA learned from First Deputy Chairman of the Pinsk City Executive Committee Mikhail Samolazov.

The official said: “As we were looking for the necessary site, the investor vowed to invest at least €5 million and create at least 50 jobs. We suggested a former manufacturing site of the Pinsk construction industry factory, which has territories to spare after restructuring. All the necessary infrastructure is available at the site. The investor shows a strong interest in developing this site.”

In order to start the new enterprise, the investor intends to buy the suggested manufacturing site as large as 14,000m2 and a finished-products warehouse of roughly the same size via an auction. The documents are being drawn now. The auction is supposed to take place in H1 2020 in accordance with the agreement.

Most of the Pinsk-made polyurethane foam will be sold to Belarusian companies, in particular, furniture manufacturers. The possibility of exporting polyurethane foam to neighboring regions of Ukraine and Russia is under consideration. It is unprofitable to transport polyurethane foam over long distances.

Mikhail Samolazov noted that the local authorities can offer investors at least eight industrial sites with access to the power grid and the natural gas distribution grid, with water supply and other utility lines.

In 2019 Pinsk raised over Br528.4 million in fixed-capital investments, including Br20.1 million in foreign investments. Almost half of the money was invested in modernization – the renewal of machines, equipment, and means of transportation.

https://eng.belta.by/economics/view/polish-investor-to-start-making-polyurethane-foam-in-brest-oblast-127923-2020/