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Released February 16, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Chemicals producer Huntsman Corporation (NYSE:HUN) (The Woodlands, Texas) benefited from stronger selling prices in 2016 that supported $400 million in planned capital expenditures for 2017, as well as a major spinoff that will affect a large portion of its business. Industrial Info is tracking more than $717 million in active projects involving Huntsman.
The company expects to spend about $400 million in 2017. Huntsman reported capital expenditures of $421 million for 2016, compared with $663 million in 2015. Net income for 2016 was $357 million, compared with $126 million in 2015. Revenues stood at $9.66 billion, a 6.23% decrease.
Stronger selling prices for methylene diphenyl diisocyanate (MDI) was one driver of Huntsman's 2016 gains, which bodes well for subsidiary Rubicon LLC's proposed MDI unit addition at its Rubicon chemical facility in Geismar, Louisiana. The new unit would significantly boost capacity at the facility, although other locations are being considered for the addition. For more information, including estimated investment values and capacity growth, see Industrial Info's project report.
Also at the Geismar facility, Rubicon is at work on a $60 million debottlenecking and capacity expansion for MDI products through process upgrades, equipment additions and related modifications. Industrial Info also is tracking more than $70 million in planned quarterly turnarounds at the Geismar facility over the next two years. For more information, see Industrial Info's project report on the debottlenecking and expansion.
"As I look at the past year, I am impressed by the quality of earnings that our businesses have achieved and how we are positioned moving into 2017," said Peter Huntsman, the president and chief executive officer of Huntsman, in a quarterly earnings press release. "MDI urethanes continues to show steady and impressive growth, with differentiated MDI sales volumes growing 6% compared to last year and representing 85% of MDI urethanes EBITDA. Advanced Materials and Textile Effects have become solid performers, with steady and modestly improving earnings. Our Performance Products business is poised for recovery in 2017."
Huntsman also is proposing a polyetheramines unit expansion at a facility in Conroe, Texas, which would grow the unit at least 20% to boost production capacity, particularly for Surfonamine. For more information, see Industrial Info's project report.
Huntsman's biggest move in the near-term is its proposed spinoff of its pigments business in the second quarter. The new company, which would be named Venator, is currently valued at more than $2 billion and would focus on titanium dioxide (TiO2).
"We are delivering on our commitment to separate the TiO2 business through the spin-off of Venator," Huntsman said in the press release. "We continue to make steady progress with the IRS to allow Huntsman to retain a 40% economic interest in Venator." Huntsman also noted that TiO2 prices rebounded in 2016, doubling earnings in the Pigments and Additives segment from 2015, with further improvement expected in 2017.
Industrial Info is tracking $59 million in TiO2-related Huntsman projects, including two in Europe: $3 million in upgrades at the Scarlino Titanium Dioxide facility in Grosseto, Italy, and a proposed modernization at the Duisburg Chemical Complex in Duisburg, Germany. Both projects are aimed at reducing emissions and boosting efficiency, so as to coincide with planned turnarounds. For more information, see Industrial Info's project reports on the Italian and German plans.
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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The company expects to spend about $400 million in 2017. Huntsman reported capital expenditures of $421 million for 2016, compared with $663 million in 2015. Net income for 2016 was $357 million, compared with $126 million in 2015. Revenues stood at $9.66 billion, a 6.23% decrease.
Stronger selling prices for methylene diphenyl diisocyanate (MDI) was one driver of Huntsman's 2016 gains, which bodes well for subsidiary Rubicon LLC's proposed MDI unit addition at its Rubicon chemical facility in Geismar, Louisiana. The new unit would significantly boost capacity at the facility, although other locations are being considered for the addition. For more information, including estimated investment values and capacity growth, see Industrial Info's project report.
Also at the Geismar facility, Rubicon is at work on a $60 million debottlenecking and capacity expansion for MDI products through process upgrades, equipment additions and related modifications. Industrial Info also is tracking more than $70 million in planned quarterly turnarounds at the Geismar facility over the next two years. For more information, see Industrial Info's project report on the debottlenecking and expansion.
"As I look at the past year, I am impressed by the quality of earnings that our businesses have achieved and how we are positioned moving into 2017," said Peter Huntsman, the president and chief executive officer of Huntsman, in a quarterly earnings press release. "MDI urethanes continues to show steady and impressive growth, with differentiated MDI sales volumes growing 6% compared to last year and representing 85% of MDI urethanes EBITDA. Advanced Materials and Textile Effects have become solid performers, with steady and modestly improving earnings. Our Performance Products business is poised for recovery in 2017."
Huntsman also is proposing a polyetheramines unit expansion at a facility in Conroe, Texas, which would grow the unit at least 20% to boost production capacity, particularly for Surfonamine. For more information, see Industrial Info's project report.
Huntsman's biggest move in the near-term is its proposed spinoff of its pigments business in the second quarter. The new company, which would be named Venator, is currently valued at more than $2 billion and would focus on titanium dioxide (TiO2).
"We are delivering on our commitment to separate the TiO2 business through the spin-off of Venator," Huntsman said in the press release. "We continue to make steady progress with the IRS to allow Huntsman to retain a 40% economic interest in Venator." Huntsman also noted that TiO2 prices rebounded in 2016, doubling earnings in the Pigments and Additives segment from 2015, with further improvement expected in 2017.
Industrial Info is tracking $59 million in TiO2-related Huntsman projects, including two in Europe: $3 million in upgrades at the Scarlino Titanium Dioxide facility in Grosseto, Italy, and a proposed modernization at the Duisburg Chemical Complex in Duisburg, Germany. Both projects are aimed at reducing emissions and boosting efficiency, so as to coincide with planned turnarounds. For more information, see Industrial Info's project reports on the Italian and German plans.
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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
