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Researched by Industrial Info Resources (Sugar Land, Texas)--Dow Incorporated (NYSE:DOW) (Midland, Michigan) has increased its capital expenditure (capex) budget for 2022 by $600 million from 2021, to between $2.2 billion and $2.3 billion--nearly half of which is allocated for maintenance turnarounds.
"In terms of our capital allocation framework, safely and reliably operating our plants is number one. So to do that, we have about $1.3 billion of turnaround expenses this year," said Howard Ungerleider, Dow's president and chief financial officer, during the company's recent first-quarter earnings conference call.
Dow will finish an estimated $50 million, second-quarter turnaround of the 1.1 million-pound-per-year Light Hydrocarbon (LHC) 2 Unit at its Plaquemine Chemicals plant in Louisiana later this month, in addition to three other turnarounds--on the benzene-toluene-xylene (BTX) unit and trains 1 and 3 on the Polyethylene C unit. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the detailed project reports.
Meanwhile, the company is gearing up for third-quarter maintenance on the 1.61 billion pound-per-year LHC 7 ethylene unit at its Freeport Plant B in Texas, plus supporting equipment and area utilities, and fourth-quarter maintenance on the Copolymer Unit C at its Dow Sabine River Works plant in Orange, Texas. Subscribers can see reports on the LHC and copolymer turnarounds.
Industrial Info is tracking a total of $15 billion in active projects for Dow worldwide. Subscribers can click here for a full list.
Most of the project activity--an estimated $12 billion--is tied up in a planned net-zero ethylene and derivatives complex in Alberta, Canada. On the most-recent earnings call, Dow Chief Executive Officer James Fitterling gave an update on the project, saying the company is "progressing engineering and development activities ... This year, we plan to complete our partner agreements, which will put us on track for regulatory approval and a final investment decision in 2023." Subscribers can click here for the unconfirmed project report.
Also during the conference call, Fitterling said Dow will help diversify Europe's energy supply by purchasing a minority stake in the Hanseatic Energy Hub, a new liquefied natural gas (LNG) terminal in Stade, Germany, which "will satisfy up to 15% of Germany's current natural gas demand, helping enable a stable, cost-effective and sustainable supply of energy to Europe in support of the region's economy." Kickoff is expected in second-quarter 2023, with completion in 2026. Subscribers can see information on the LNG terminal, as well as the addition of a related pipeline and offloading facility.
Dow's first-quarter revenue jumped 28% to $15.26 billion, from $11.88 billion in 2021's first quarter, driven by gains in all segments, businesses and regions, according to the company's earnings-related press release. Meanwhile, on a generally accepted accounting principles (GAAP) basis, Dow reported net earnings of $1.57 billion, up from $1 billion year over year.
Regarding the second quarter, Ungerleider expects "ongoing underlying demand strength across both consumer and industrial end markets."
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.
"In terms of our capital allocation framework, safely and reliably operating our plants is number one. So to do that, we have about $1.3 billion of turnaround expenses this year," said Howard Ungerleider, Dow's president and chief financial officer, during the company's recent first-quarter earnings conference call.
Dow will finish an estimated $50 million, second-quarter turnaround of the 1.1 million-pound-per-year Light Hydrocarbon (LHC) 2 Unit at its Plaquemine Chemicals plant in Louisiana later this month, in addition to three other turnarounds--on the benzene-toluene-xylene (BTX) unit and trains 1 and 3 on the Polyethylene C unit. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the detailed project reports.
Meanwhile, the company is gearing up for third-quarter maintenance on the 1.61 billion pound-per-year LHC 7 ethylene unit at its Freeport Plant B in Texas, plus supporting equipment and area utilities, and fourth-quarter maintenance on the Copolymer Unit C at its Dow Sabine River Works plant in Orange, Texas. Subscribers can see reports on the LHC and copolymer turnarounds.
Industrial Info is tracking a total of $15 billion in active projects for Dow worldwide. Subscribers can click here for a full list.
Most of the project activity--an estimated $12 billion--is tied up in a planned net-zero ethylene and derivatives complex in Alberta, Canada. On the most-recent earnings call, Dow Chief Executive Officer James Fitterling gave an update on the project, saying the company is "progressing engineering and development activities ... This year, we plan to complete our partner agreements, which will put us on track for regulatory approval and a final investment decision in 2023." Subscribers can click here for the unconfirmed project report.
Also during the conference call, Fitterling said Dow will help diversify Europe's energy supply by purchasing a minority stake in the Hanseatic Energy Hub, a new liquefied natural gas (LNG) terminal in Stade, Germany, which "will satisfy up to 15% of Germany's current natural gas demand, helping enable a stable, cost-effective and sustainable supply of energy to Europe in support of the region's economy." Kickoff is expected in second-quarter 2023, with completion in 2026. Subscribers can see information on the LNG terminal, as well as the addition of a related pipeline and offloading facility.
Dow's first-quarter revenue jumped 28% to $15.26 billion, from $11.88 billion in 2021's first quarter, driven by gains in all segments, businesses and regions, according to the company's earnings-related press release. Meanwhile, on a generally accepted accounting principles (GAAP) basis, Dow reported net earnings of $1.57 billion, up from $1 billion year over year.
Regarding the second quarter, Ungerleider expects "ongoing underlying demand strength across both consumer and industrial end markets."
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.
