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Released October 23, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Dow Chemical Company (NYSE:DOW) (Midland, Michigan) will wind down its capital expenditures as its massive U.S. Gulf Coast and Saudi Arabian project investments begin to start up this quarter, top executives with the chemicals producer said Thursday. Dow reported its third-quarter 2015 net income increased nearly 47% to $1.38 billion, from $937 million in the same quarter a year earlier. Industrial Info is tracking 109 active Dow Chemical projects worth $8.15 billion.
"Our capex will be ranged down to near depredation levels over the next two years," said Chief Executive Officer Andrew Liveris during the company's earnings conference call, adding, "We anticipate no new mega projects during these next five years." Dow expects 2015 capital expenditures to total $3.9 billion.
Industrial Info is tracking Dow's $1.7 billion ethylene unit addition at its Oyster Creek facility in Freeport, Texas, where construction kicked off in mid-2014. The ethane-fed cracker will be able to produce 2.6 billion pounds per year of ethylene. Completion is set for May 2017. For related information, see April 24, 2015, article - Dow Chemical Benefits from Demand, Selloffs in First Quarter, Sets 2015 Capex at $3.9 Billion.
Dow also announced plans to reduce ownership in its Kuwaiti joint ventures, including MEGlobal, which will build a monoethylene glycol plant at a yet-to-be announced location on the U.S. Gulf Coast. EQUATE Petrochemical Company (Kuwait) will acquire the MEGlobal joint venture from Dow and Petrochemical Industries Company of Kuwait for $3.2 billion, of which Dow will receive $1.5 billion. The acquisition is expected to close by year-end 2015.
In addition, Dow is examining strategic options for its AgroSciences segment, including a potential sale of the business, and is looking at the future of silicon product maker Dow Corning, which is equally owned by Dow and Corning Incorporated (NYSE:GLW) (Corning, New York). Liveris would not rule out acquisition of a Corning's share of the company as an option.
For the third quarter, Dow reported $12.04 billion in net sales, compared with $14.41 billion in third-quarter 2014. Dow executives said the 16% drop in sales revenue was caused by pricing and currency exchange. Sales volume rose 2%. The third quarter also included a net gain of $621 million from Dow's sale of its AgroFresh post-harvest specialty chemical business.
Looking to the fourth quarter, Chief Financial Officer Howard Ungerleider said revenue will be lower by between $1.3 billion and $1.8 billion, mainly as a result of its recent divestitures, including its chlorine products, Angus and sodium borohydride businesses.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
"Our capex will be ranged down to near depredation levels over the next two years," said Chief Executive Officer Andrew Liveris during the company's earnings conference call, adding, "We anticipate no new mega projects during these next five years." Dow expects 2015 capital expenditures to total $3.9 billion.
Industrial Info is tracking Dow's $1.7 billion ethylene unit addition at its Oyster Creek facility in Freeport, Texas, where construction kicked off in mid-2014. The ethane-fed cracker will be able to produce 2.6 billion pounds per year of ethylene. Completion is set for May 2017. For related information, see April 24, 2015, article - Dow Chemical Benefits from Demand, Selloffs in First Quarter, Sets 2015 Capex at $3.9 Billion.
Dow also announced plans to reduce ownership in its Kuwaiti joint ventures, including MEGlobal, which will build a monoethylene glycol plant at a yet-to-be announced location on the U.S. Gulf Coast. EQUATE Petrochemical Company (Kuwait) will acquire the MEGlobal joint venture from Dow and Petrochemical Industries Company of Kuwait for $3.2 billion, of which Dow will receive $1.5 billion. The acquisition is expected to close by year-end 2015.
In addition, Dow is examining strategic options for its AgroSciences segment, including a potential sale of the business, and is looking at the future of silicon product maker Dow Corning, which is equally owned by Dow and Corning Incorporated (NYSE:GLW) (Corning, New York). Liveris would not rule out acquisition of a Corning's share of the company as an option.
For the third quarter, Dow reported $12.04 billion in net sales, compared with $14.41 billion in third-quarter 2014. Dow executives said the 16% drop in sales revenue was caused by pricing and currency exchange. Sales volume rose 2%. The third quarter also included a net gain of $621 million from Dow's sale of its AgroFresh post-harvest specialty chemical business.
Looking to the fourth quarter, Chief Financial Officer Howard Ungerleider said revenue will be lower by between $1.3 billion and $1.8 billion, mainly as a result of its recent divestitures, including its chlorine products, Angus and sodium borohydride businesses.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
