We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Albemarle Corporation (ALB - Free Report) recently completed restructuring its MARBL joint venture with Mineral Resources Limited. This restructuring, announced earlier this year, has been closed after obtaining the necessary regulatory approvals.
As part of these revised agreements, the parties involved have worked to simplify their commercial arrangements. Consequently, Albemarle retains 100% ownership of the Kemerton lithium hydroxide processing facility in Australia. Furthermore, Albemarle maintains complete ownership of its Qinzhou and Meishan lithium processing facilities in China.
Notable points of the updated agreements include an economic effective date (EED) of Apr 1, 2022, and joint ownership of the Wodgina mine. Under this arrangement, Albemarle and Mineral Resources hold a 50% stake in the Wodgina mine, with Mineral Resources taking on the operator role.
Albemarle, which is among the prominent players in the chemical space along with Dow Inc. (DOW - Free Report) , Eastman Chemical Company (EMN - Free Report) and Celanese Corporation (CE - Free Report) , is expected to make a payment to Mineral Resources in the range of $380-$400 million. This amount covers various components, including the net consideration for estimated EED settlement adjustments and the remaining 15% ownership interest in the Kemerton facility.
Albemarle, in the second-quarter earnings call, raised its net sales and adjusted EBITDA outlook for 2023, anticipating net sales of $10.4-$11.5 billion due to rising lithium market prices and expecting a 40-55% year-over-year growth driven by the global shift to electric vehicles. Adjusted EBITDA is forecasted at $3.8-$4.4 billion, and adjusted earnings per share are expected to be in the range of $25.00-$29.50, reflecting a more optimistic outlook than earlier projections.
Another prominent chemical maker, Dow, continues to pursue cost savings and long-term strategic goals in a challenging economic environment for the second half of 2023. The company is progressing toward $1 billion in cost savings, and its disciplined capital allocation supports its "Decarbonize and Grow" strategy. For the third quarter, Dow expects net sales to be around $10.25-$10.75 billion.
Eastman Chemical lowered its demand growth forecast, anticipating stability in specific end markets for the latter half of 2023. It expects a decrease in adjusted EPS for the second half compared to the first half and predicts full-year 2023 EPS to be within the range of $6.50 to $7.00. The company is also targeting $1.4 billion in operating cash flow for the year.
Celanese forecasts adjusted earnings of $2-$2.50 per share for the third quarter of 2023, with an estimated 30 cents impact from M&M amortization. For the full year, the company expects adjusted earnings to be in the range of $9 to $10, which incorporates roughly $1.20 per share of M&M transaction amortization.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Albemarle (ALB) Completes MARBL Joint Venture Restructuring
Albemarle Corporation (ALB - Free Report) recently completed restructuring its MARBL joint venture with Mineral Resources Limited. This restructuring, announced earlier this year, has been closed after obtaining the necessary regulatory approvals.
As part of these revised agreements, the parties involved have worked to simplify their commercial arrangements. Consequently, Albemarle retains 100% ownership of the Kemerton lithium hydroxide processing facility in Australia. Furthermore, Albemarle maintains complete ownership of its Qinzhou and Meishan lithium processing facilities in China.
Notable points of the updated agreements include an economic effective date (EED) of Apr 1, 2022, and joint ownership of the Wodgina mine. Under this arrangement, Albemarle and Mineral Resources hold a 50% stake in the Wodgina mine, with Mineral Resources taking on the operator role.
Albemarle, which is among the prominent players in the chemical space along with Dow Inc. (DOW - Free Report) , Eastman Chemical Company (EMN - Free Report) and Celanese Corporation (CE - Free Report) , is expected to make a payment to Mineral Resources in the range of $380-$400 million. This amount covers various components, including the net consideration for estimated EED settlement adjustments and the remaining 15% ownership interest in the Kemerton facility.
Albemarle, in the second-quarter earnings call, raised its net sales and adjusted EBITDA outlook for 2023, anticipating net sales of $10.4-$11.5 billion due to rising lithium market prices and expecting a 40-55% year-over-year growth driven by the global shift to electric vehicles. Adjusted EBITDA is forecasted at $3.8-$4.4 billion, and adjusted earnings per share are expected to be in the range of $25.00-$29.50, reflecting a more optimistic outlook than earlier projections.
Another prominent chemical maker, Dow, continues to pursue cost savings and long-term strategic goals in a challenging economic environment for the second half of 2023. The company is progressing toward $1 billion in cost savings, and its disciplined capital allocation supports its "Decarbonize and Grow" strategy. For the third quarter, Dow expects net sales to be around $10.25-$10.75 billion.
Eastman Chemical lowered its demand growth forecast, anticipating stability in specific end markets for the latter half of 2023. It expects a decrease in adjusted EPS for the second half compared to the first half and predicts full-year 2023 EPS to be within the range of $6.50 to $7.00. The company is also targeting $1.4 billion in operating cash flow for the year.
Celanese forecasts adjusted earnings of $2-$2.50 per share for the third quarter of 2023, with an estimated 30 cents impact from M&M amortization. For the full year, the company expects adjusted earnings to be in the range of $9 to $10, which incorporates roughly $1.20 per share of M&M transaction amortization.