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Released July 29, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Honeywell International (NASDAQ:HON) (Charlotte, North Carolina) is optimistic about its outlook for the remainder of the year, despite economic headwinds such as inflation and the loss of subsidiary UOP's profitable Russian business. The company aims to develop its future role in booming markets such as liquefied natural gas (LNG) and propane dehydrogenation (PDH). Industrial Info is tracking $15 billion worth of projects globally featuring Honeywell's services, including nearly $5 billion worth in North America.
"While we recognize macro crosscurrents are clouding the global economic growth outlook, we remain confident in our demand outlook for the back half of the year, with orders up 12% year-over-year and closing backlog of $29.5 billion, up 12% year-over-year, led by our long-cycle businesses, which will help drive growth for quarters to come," said Darius Adamczyk, the chief executive officer of Honeywell, in a quarterly earnings-related conference call.
Click on the image at right for a graph detailing active global projects involving Honeywell, by industry sector.
Adamczyk was particularly upbeat about Honeywell's emerging opportunities in the liquefied natural gas (LNG) market, where its technology is being proposed for big- ticket projects such as Freeport LNG's (Houston, Texas) 5.1 million-metric-ton-per-year Train IV at its LNG complex in Quintana, Texas, and Texas LNG Limited's $1.5 billion second train at its LNG Liquefaction Plant in Brownsville, Texas, which is expected to produce 2 million metric tons per year. Both projects are in their design phases and unlikely to kick off before late 2023 and 2024, respectively, but are among those brightening Honeywell's outlook. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed reports on the Freeport and Texas LNG projects.
"What we're excited about is the LNG cycle," Adamczyk said in the conference call. "I mean, you see that investment taking place. You see it in the Middle East. You see it in the U.S. We are participating in it. UOP is participating. We had some very robust bookings that you saw in the second quarter. We actually expect more robust bookings in the second half of the year, and we're very much part of that LNG cycle."
Honeywell's Performance Materials and Technologies segment, which handles most of the company's chemicals-related business, reported strong sales growth during the second quarter, partly due to strong petrochemical catalyst shipments. Among Honeywell's most visible projects is Enterprise Products Partners LP's (NYSE:EPD) (Houston, Texas) $1.2 billion Propane Dehydrogenation (PDH) Unit 2 addition at its NGL Fractionator Complex in Mont Belvieu, Texas, for which subsidiary Honeywell UOP Russell LLC is providing catalysts and other technology. Unit 2 is expected to produce 1.65 billion pounds per year of propylene.
UOP Russell is providing similar technological support for Inter Pipeline Limited's (Calgary, Alberta) $1.77 billion propane dehydrogenation (PDH) plant at its Heartland Petrochemical Complex in Fort Saskatchewan, Alberta, which is designed to produce 1.1 billion pounds per year of propylene. It is expected to finish construction before the end of the current quarter, while Enterprise's Mont Belvieu project is expected to wrap up a little more than one year from now; both projects faced delays in 2020 and 2021 related to the COVID-19 pandemic. Subscribers can read detailed reports on the Mont Belvieu and Heartland projects.
"We continue to see strength in our higher-margin catalyst business, which grew more than 20% and helped to offset lower equipment volume due to timing of larger projects," said Greg Lewis, the chief financial officer of Honeywell, in the earnings call.
End-users for propylene products include manufacturers of household products, including furniture, carpets and upholstery. Honeywell itself is among the end users for polyethylene, another chemical product in high demand. The company is proposing a three-phase expansion to its synthetic fiber plant in Colonial Heights, Virginia, which manufactures ultra-high molecular weight polyethylene fibers used in products ranging from military and aeronautical equipment to sporting goods. Work on all three phases is currently slated to wrap up by mid-2025, if the project is approved. Subscribers can read detailed reports on Phase I, Phase II and Phase III.
Honeywell also is preparing to begin a $154 million expansion of its South Works plant in Baton Rouge, Louisiana, intended to double production of its "Solstice ze" product, which is used in household items ranging from insulation to refrigeration. Solstice ze is based on hydrofluoro-olefin (HFO) technology, which Honeywell says reduces customers' carbon footprints. Subscribers can learn more from Industrial Info's project report.
Honeywell has tightened its full-year sales outlook to between $35.5 billion and $36.1 billion, compared with its February estimate of $35.4 billion to $36.4 billion. This represents growth from 2021 of 5% to 7%, or "7% to 9%, excluding the one-point impact of COVID-driven mask sales declines and one-point impact of lost Russian sales," according to the company.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects involving Honeywell.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
"While we recognize macro crosscurrents are clouding the global economic growth outlook, we remain confident in our demand outlook for the back half of the year, with orders up 12% year-over-year and closing backlog of $29.5 billion, up 12% year-over-year, led by our long-cycle businesses, which will help drive growth for quarters to come," said Darius Adamczyk, the chief executive officer of Honeywell, in a quarterly earnings-related conference call.
Click on the image at right for a graph detailing active global projects involving Honeywell, by industry sector.Adamczyk was particularly upbeat about Honeywell's emerging opportunities in the liquefied natural gas (LNG) market, where its technology is being proposed for big- ticket projects such as Freeport LNG's (Houston, Texas) 5.1 million-metric-ton-per-year Train IV at its LNG complex in Quintana, Texas, and Texas LNG Limited's $1.5 billion second train at its LNG Liquefaction Plant in Brownsville, Texas, which is expected to produce 2 million metric tons per year. Both projects are in their design phases and unlikely to kick off before late 2023 and 2024, respectively, but are among those brightening Honeywell's outlook. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can read detailed reports on the Freeport and Texas LNG projects.
"What we're excited about is the LNG cycle," Adamczyk said in the conference call. "I mean, you see that investment taking place. You see it in the Middle East. You see it in the U.S. We are participating in it. UOP is participating. We had some very robust bookings that you saw in the second quarter. We actually expect more robust bookings in the second half of the year, and we're very much part of that LNG cycle."
Honeywell's Performance Materials and Technologies segment, which handles most of the company's chemicals-related business, reported strong sales growth during the second quarter, partly due to strong petrochemical catalyst shipments. Among Honeywell's most visible projects is Enterprise Products Partners LP's (NYSE:EPD) (Houston, Texas) $1.2 billion Propane Dehydrogenation (PDH) Unit 2 addition at its NGL Fractionator Complex in Mont Belvieu, Texas, for which subsidiary Honeywell UOP Russell LLC is providing catalysts and other technology. Unit 2 is expected to produce 1.65 billion pounds per year of propylene.
UOP Russell is providing similar technological support for Inter Pipeline Limited's (Calgary, Alberta) $1.77 billion propane dehydrogenation (PDH) plant at its Heartland Petrochemical Complex in Fort Saskatchewan, Alberta, which is designed to produce 1.1 billion pounds per year of propylene. It is expected to finish construction before the end of the current quarter, while Enterprise's Mont Belvieu project is expected to wrap up a little more than one year from now; both projects faced delays in 2020 and 2021 related to the COVID-19 pandemic. Subscribers can read detailed reports on the Mont Belvieu and Heartland projects.
"We continue to see strength in our higher-margin catalyst business, which grew more than 20% and helped to offset lower equipment volume due to timing of larger projects," said Greg Lewis, the chief financial officer of Honeywell, in the earnings call.
End-users for propylene products include manufacturers of household products, including furniture, carpets and upholstery. Honeywell itself is among the end users for polyethylene, another chemical product in high demand. The company is proposing a three-phase expansion to its synthetic fiber plant in Colonial Heights, Virginia, which manufactures ultra-high molecular weight polyethylene fibers used in products ranging from military and aeronautical equipment to sporting goods. Work on all three phases is currently slated to wrap up by mid-2025, if the project is approved. Subscribers can read detailed reports on Phase I, Phase II and Phase III.
Honeywell also is preparing to begin a $154 million expansion of its South Works plant in Baton Rouge, Louisiana, intended to double production of its "Solstice ze" product, which is used in household items ranging from insulation to refrigeration. Solstice ze is based on hydrofluoro-olefin (HFO) technology, which Honeywell says reduces customers' carbon footprints. Subscribers can learn more from Industrial Info's project report.
Honeywell has tightened its full-year sales outlook to between $35.5 billion and $36.1 billion, compared with its February estimate of $35.4 billion to $36.4 billion. This represents growth from 2021 of 5% to 7%, or "7% to 9%, excluding the one-point impact of COVID-driven mask sales declines and one-point impact of lost Russian sales," according to the company.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects involving Honeywell.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
