THE WOODLANDS, Texas,
Sept. 18, 2017 /PRNewswire/
-- As previously announced, Huntsman Corporation's (NYSE: HUN)
operations in the Texas Gulf Coast region were temporarily impacted
by Hurricane Harvey. These sites are currently in various stages of
operations or startup and will resume full operations as
engineering and safety checks are completed and raw materials
become available.
Despite Hurricane Harvey, Huntsman expects strong total third
quarter results that are better than second quarter results, after
excluding the Pigments and Additives division, which will now be
reported in discontinued operations. This is primarily due to
the strength of the global Polyurethanes business as well as the
continued recovery of the Performance Products business.
Additionally, as a result of Harvey, the planned Port Neches turnaround will carry into
October, in effect shifting the estimated adjusted EBITDA impact of
approximately $15 million to $20
million from third quarter to fourth quarter.
The Hurricane Harvey impact to third quarter adjusted EBITDA is
currently estimated to be approximately $35
million to $40 million. Divisionally, the
impacts of Hurricane Harvey will mostly be in the Performance
Products segment, which recently declared force majeure on ethylene
oxide, ethylene glycol, ethanolamines, and select other ethylene
oxide derivative products. Inclusive in this hurricane impact
there will be some effect in the Polyurethanes segment as a result
of the temporary shutdown of our PO/MTBE operations located at our
Port Neches, Texas
site.
Peter Huntsman, President and
CEO, commented:
"Hurricane Harvey was a devastating storm that caused
widespread flooding in the Texas Gulf Coast region and displaced
many from their homes. Those impacts are still being felt
today. Our first priority has always been to ensure the safety and
wellbeing of our associates, their families, the communities in
which our plants sit and our operations. I am pleased to
report that all of our associates are safe. We continue to support
our employees whose homes were significantly impacted by flooding
and need help getting their lives back to normal.
"While our operations in the region were temporarily
disrupted, there was no significant damage to any of our
manufacturing sites and, except for the planned turnaround at our
Port Neches, Texas facility, all
are either now operating or are in the process of returning to
normal operations. We are proactively pursuing the turnaround at
Port Neches to minimize the amount
of downtime and return supply to our customers.
"Importantly, I am pleased with the strong business results
that allow us to mitigate these losses such that our total adjusted
EBITDA outlook for the third quarter is better than second
quarter."
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and
specialty chemicals with 2016 revenues of approximately
$10 billion. Our chemical
products number in the thousands and are sold worldwide to
manufacturers serving a broad and diverse range of consumer and
industrial end markets. We operate more than 75 manufacturing,
R&D and operations facilities in over 30 countries and employ
approximately 10,000 associates within our four distinct business
divisions. For more information about Huntsman, please visit the
company's website at www.huntsman.com.
Social Media:
Twitter:
twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward Looking Statements:
Statements in this
release that are not historical are forward-looking statements.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, volatile global economic conditions,
cyclical and volatile product markets, disruptions in production at
manufacturing facilities, reorganization or restructuring of
Huntsman's operations, the ability to implement cost reductions and
manufacturing optimization improvements in Huntsman businesses, to
consummate or achieve the expected benefits of the proposed
transaction with Clariant and to realize anticipated cost savings,
and other financial, economic, competitive, environmental,
political, legal, regulatory and technological factors. The company
assumes no obligation to provide revisions to any forward-looking
statements should circumstances change, except as otherwise
required by applicable laws.
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SOURCE Huntsman Corporation