US Olin Q2 chlor-alkali earnings down 33% on maintenance costs

26 July 2013 00:01  [Source: ICIS news]

HOUSTON (ICIS)--Olin's chlor-alkali segment earnings for 2Q 2013 were $50.2m (€38.2m), down 33% from the $75.0m during the same period in 2012, US-based petrochemcial producer said on Thursday.

The company attributed the loss to higher maintenance costs associated with planned outages, reduced sales of hydrochloric acid and higher electricity costs due to increase natural gas prices.

Olin announced a 2Q income of $43.7m, down 8.2% from the $47.6m income the company posted in the same period in 2012.

The company had sales of $652.2m in the second quarter, compared with $508.7m in the second quarter of 2012.

Chlor-alkali product sales for 2Q 2013 sales were $367m, compared with $363.2m in the same period of 2012. Chlorine and caustic soda volumes increased less than 1% compared to 2Q 2012 levels, while hydrochloric acid volumes declined 2%, the company said.

“Sales of chlorine and caustic soda and ECU (electrochemical unit) pricing in the second quarter of 2013 were similar to second quarter 2012 levels. The contribution to earnings from hydrochloric acid sales declined approximately $6m during the second quarter of 2013 compared to the near record quarterly level in the second quarter of 2012,” president and CEO Joseph Rupp said.

Rupp said third-quarter 2013 chlor-alkali earnings are expected to improved on higher ECU pricing, record levels of bleach sales, and an approximately $10m favorable customer contract settlement.

($1 = €0.76)

Follow Ken Fountain (@ICIS_Ken) on Twitter.

By: Ken Fountain

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