KeyBanc expects winter storm Enzo to impact Q1 earnings of chemical companies

Eastman Chemical Co

23/01/2025 14:38

** KeyBanc Capital Markets expects commodity petrochemicals
markets to tighten in the U.S. as a result of winter storm Enzo,
at least for one to two months
    ** Brokerage says immediate effect will likely be
operational earnings headwinds from unplanned outages for Dow
 DOW.N , LyondellBasell  LYB.N , Westlake  WLK.N  and Olin Corp
 OLN.N  in Q1, and from higher cost of feedstocks and energy
    ** Adds medium-term effect of the storm may also be muted by
potential trade frictions with Canada and Mexico, both important
destinations for the U.S. petrochemicals exports
    ** KeyBanc expects companies to face logistical challenges
in Q1 as a result of port closures and atypical snow conditions
in the region
    ** However, brokerage also sees storm as a modest upside
risk to coatings raw materials prices and costs of other
specialty chemicals producers such as Axalta Coating Systems
 AXTA.N , PPG Industries  PPG.N , RPM International  RPM.N ,
Sherwin-Williams  SHW.N , Celanese Corp  CE.N  and Eastman
Chemical  EMN.N  

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))