Yahoo Finance Celanese (CE) Achieves Milestones in the Acetyl Chain Business
Celanese Corporation CE recently reached significant milestones at its facilities in Clear Lake, TX, and Nanjing, China. These achievements will enhance the competitive cost position, sustainability and operational flexibility of its Acetyl Chain (AC) business to meet future demand growth.
In March 2024, the company commenced operations at its new 1.3-million-ton Clear Lake acetic acid expansion, touted as the world's lowest-cost and lowest-carbon footprint acetic acid facility. This expansion builds upon the recent International Sustainability and Carbon Certification (ISCC) certified carbon capture and utilization (CCU) project, which expanded the capacity of the Fairway Methanol joint venture, effectively capturing 180 kt of CO2 industrial emissions. The resulting low-carbon methanol facilitates the production of low-carbon ECO-CC AC and Engineered Materials downstream products for various consumer applications.
A new vinyl acetate ethylene (VAE) unit has begun operations in Nanjing, accompanied by the completion of global, low-capital downstream redispersible polymer powders (RDP) debottlenecking projects. This VAE unit, with a capacity increase of 70 kt, strengthens the Acetyl Chain's ability to capitalize on its integrated product chain in the Asia region, meeting the rising regional demand for VAE and downstream RDP products effectively.
Celanese's subsidiary, Celanese (Nanjing) Chemical Co. Ltd., extended its CO Phase II contract with Nanjing Chengzhi Clean Energy Co., Ltd., ensuring a reliable long-term supply of carbon monoxide to its Nanjing facility. Carbon monoxide is a crucial feedstock in acetic acid production. This contract extension secures a stable supply for the facility's 1,200 kt acetic acid plant while enhancing operational flexibility.
Celanese, a key player in the chemical specialty space alongside Ecolab Inc. ECL, American Vanguard Corporation AVD and Ashland Inc. ASH, is pleased with these achievements, highlighting the collaborative efforts within the company and with key partners like Chengzhi. These investments enhance operational adaptability and position Celanese for significant earnings growth, with an anticipated increase of $100 million in adjusted EBIT to $1.4 billion. With these enhancements, the company is better equipped to meet customer needs through a versatile, cost-effective strategy, opening doors to enduring global and regional expansion opportunities.
Celanese, in its fourth-quarter call, projected adjusted earnings of $1.75-$2.00 per share for the first quarter of 2024, accounting for an estimated impact of approximately 30 cents from Mobility & Materials (M&M) amortization. The company foresees a substantial increase in earnings per share compared to the previous year, attributed to synergies captured from M&M, expansions in Clear Lake's acetic acid and methanol production and declined interest expenses due to deleveraging efforts and reduced inventory costs.
Ecolab projects a robust first-quarter performance for 2024, anticipating adjusted EPS between $1.27 and $1.37 per share, suggesting an increase of 44-56% from the previous year’s levels. For full-year 2024, Ecolab expects adjusted EPS to range between $6.10 and $6.50, indicating 17-25% growth from 2023 figures.
American Vanguard aims for a revenue increase of 8-12% in 2024, which is expected to yield an adjusted EBITDA of $70-$80 million. It remains focused on maintaining healthy gross profit margins, controlling operating expenses, and optimizing factory performance. The company anticipates achieving additional adjusted EBITDA of $15 million or more on a full-year basis through its business transformation initiative. This initiative encompasses operational, commercial, digital and administrative sub-initiatives to drive enhanced profitability and efficiency.
For the second quarter of fiscal 2024, Ashland projects an adjusted EBITDA in the range of $115 million to $125 million, with anticipated sales of between $565 million and $585 million. For the fiscal 2024, sales are expected in the range of $2.15-$2.25 billion, while adjusted EBITDA is forecast to be in the $460-$500 million range.
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