Shipper Brenntag boost
May / June 2016
New distribution partner for Chemtura
Chemtura Corporation has chosen Azelis Americas as its sole distributor for its pre-polymer urethanes , curatives and polyester polyols product lines in North America . Effective from late July 2016 , Chemtura will expand its relationship with Azelis Americas in addition to the current urethanes surface coatings portfolio . Bill Wallace , business director for the Americas , said that “ Chemtura is committed to enabling our customers ’ growth , hence consolidating our distribution channel with Azelis makes sense given its world-class technical capabilities and supply chain expertise allowing Chemtura to serve all market segments more efficiently .” Chemtura will thus discontinue its relationship with AdipreneDirect in North America . “ Our intent is to provide customers with plenty of advance notice of the change in our distribution channel , so they can connect with Azelis Americas and prepare for a smooth transition ,” added Bill Perry , Chemtura ’ s North America distribution channel manager . “ We ’ re asking customers in the United States and Canada to continue to work with AdipreneDirect as they normally would through July 25 , before the changeover to Azelis Americas .” During this time , Azelis Americas will be proactively contacting customers to help facilitate the transition .
Shipper Brenntag boost
Brenntag posted strong profit growth in the first quarter of 2016 . Acquired companies , diversification and overall market position offset weaknesses in the oil & gas sector and the North American industrial environment , the chemicals distribution specialist said . The quarterly results were over all in line with Brenntag ’ s own expectations . Sales were on the same level of the prior-year quarter at € 2,580million (+ 0.2 percent as reported ). The company posted a strong performance in terms of the key indicator gross profit which climbed to € 586.6 million , a significant increase of 5.3 percent as reported (+ 6.2 % on a constant currency basis ). Operating EBITDA was down 1.5 percent ( -0.7 percent on constant currency ) to € 192.1 million . It was negatively affected primarily by the underlying weakness in the North American oil & gas business sector . Profit after tax reached € 66 million in the first quarter and thus fell short of the prior year figure of € 91.2 million . The decrease was mainly attributable to a one-time effect resulting from the devaluation of the local currency in Venezuela in the first quarter of this year . This translated into earnings per share of € 0.43 . At € 131.2 million , free cash flow was strong . As expected , it was below the very good prior year figure of € 161 million .
BULKDISTRIBUTOR
Brenntag CEO Steven Holland commented : “ Overall , the first quarter of 2016 went as we expected . In particular , the strong gross profit performance shows that Brenntag Group as a whole has excellent market access and strategically is very well positioned . In North America , our business was once again strongly impacted by sustained low demand , especially from the oil & gas sector in the face of a persistently low oil price . The significant currency devaluation reduced earnings in Venezuela to zero . Integrating the most recent acquisitions has high priority and we expect them to make steadily increasing contributions to earnings performance .”
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Norfolk Southern awards
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orfolk Southern has awarded 60 chemical customers its Thoroughbred Chemical Safety Award for 2015 . The companies safely transported on Norfolk Southern ’ s rail lines 224,660 carloads of chemical product that the federal government regulates as hazardous . Norfolk Southern developed the safety award 20 years ago to recognise customers for their safe handling of chemical shipments . The award goes to chemical manufacturers and plants that ship at least 1,000 carloads of hazardous products over the railroad without a single incident for the year . In 2015 , 55 companies shipping 213,150 carloads and five plants handling 11,510 carloads achieved the standard . Of particular note are four customers that , collectively , safely shipped nearly 88,000 carloads : MarkWest Energy Partners ; Olin Chlor Alkali Logistics ; Bridger Logistics ; and Buckeye Partners . Transported primarily in customer-owned or leased tank cars , the regulated products include crude petroleum , ethanol , fertilisers , and industrial chemicals used to manufacture consumer goods . Customers receiving the Thoroughbred Chemical Safety Award for safe shipping in 2015 are : Abengoa Bioenergy ; Altex Energy ; Apex Terminal ; ArcelorMittal USA ; Axeon Specialty Products ; Axiall Corp ; BASF Corp ; Bridger Logistics ; Buckeye Partners ; Cargill ; CF Industries ; Chemtrade Logistics ; Covestro ; Delaware City Refining ; Eastman Chemical ; Elbow River Marketing ; ERCO Worldwide ; ExxonMobil Chemical Co ; Flint Hill Resources ; Formosa Plastics Corp ; Granite Falls Energy ; Green Plains ; Hunt Refining ; Lima Refining ; Invista ; Kemira Chemicals ; Kemira Water Solutions ; Kinder Morgan Terminals ; Linde ; Louis Dreyfus Commodities ; Marathon Petroleum ; MarkWest Energy Partners ; Mercuria Commodities Canada ; Midwest Terminals of Toledo ; NorFalco Sales ; Nova Chemicals ; Nucor Corp ; Occidental Chemical ; Olin Chlor Alkali Logistics ; One Earth Energy ; Pacific Ethanol Pekin ; Paulsboro Refining ; PCS Phosphate ; Phillips 66 ; Plains Marketing ; POET Ethanol Products ; Procter & Gamble ; Shell Canada Ltd ; Siouxland Energy & Livestock Cooperative ; Southwest Iowa Renewable Energy ; Sunbelt Chlor Alkali ; Sunoco Partners Marketing & Terminals ; The International Group ; United Energy Trading ; United Refining ; Valero Energy ; and Vopak Terminal Savannah .
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