14 May 2008 17:45 [Source: ICIS news]
HOUSTON (ICIS news)--The performance products segment of US firm Hexion Specialty Chemicals is benefiting from increased oil production, an executive said on Wednesday.
The segment makes oilfield materials, for which demand is increasing, said William Carter, Hexion's chief financial officer.
For the first quarter, the segment reported $21m (€14m) in earnings before interest, taxes, depreciation and amortisation (EBITDA), up 17% year on year.
Carter attributed the segment's increase to higher rig counts, favourable pricing and strong oilfield demand in the US and Mexico.
Oil and natural-gas producers are increasingly relying on horizontal-drilling methods and deeper wells - all in order to meet rising global demand, Carter said.
Such drilling methods are increasing demand for the segment's products, Carter said.
The segment from other chemical companies have also benefited from rising oil demand.
WR Grace reported a pre-tax operating income of $62.3m for its catalyst and specialty materials division, up 14.5% year over year.
Grace attributed the increase to higher demand for catalysts and additives used by petroleum refiners.
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