Commodities Mentioned:
PVC, Polypropylene, Polyethylene, Polystyrene, PET, MDI-polyurethanes, Propylene, Ethylene, Benzene, Methanol, VAM, Lithium, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha, Chlor-Vinyls, Butadiene, Paraxylene, MEG, PHA, Biofuels, Renewable Natural Gas, Ammonia, Toluene, Aviation Fuel
Companies Mentioned:
Enterprise Products, Flint Hills, LyondellBasell, Braskem, Dow, TPC Group, Invista, Kraton, BASF, Covestro, Huntsman, Shintech, Westlake, Formosa Plastics, Occidental, Johnson Matthey, Arkema, Ashland, Axalta, Element Solutions, Gevo, Incitec Pivot, Lenzing, PolyPlastics, Pulte, Sherwin-Williams, PPG, Symrise, Enbridge, Talos, Sinopec, Trinseo, DAK Americas, Casale, Repsol, Stolt-Nielsen, RPM, Nouryon, Bunge, Chevron, Shell, Merck KgaA, Celanese, Sibur, SABIC, Albemarle, Livent, SQM, ExxonMobil, LG Chem, Ballard Power, Herman Miller, United Airlines, Ford, CP Chemical, Aramco, Kinder Morgan, Permira, Mitsui Chemicals, Eneos, Petronas, Avantor, Polytek, Lummus, Petro Rabigh, Axpo Romania, Datang Duolun, Kemira, Solugen, CarbFix, Ineos, Toyota, Kroger, LG Electronics, Monolith Materials, Origin Materials, Danimer Scientific, Newlight Technologies, Nike, Borealis, Eastman, Ginkgo Bioworks, Specific Polymers, bp, Air Products, Air Liquide, Linde, Coca-Cola, Microsoft, Delta Airlines, VW
C-MACC Sunday Thematic & Weekly Recap 83
All Paths Lead To Consolidation for Big Energy and Chemicals
- The market response to the Chevron Gevo announcement supports the view that viable options for major companies to counter ESG trends are limited.
- The deal was perceived as good for Gevo and immaterial for Chevron. We discuss other ESG efforts, such as those from bp, that have seen no market appreciation.
- Some energy companies are too big to change quickly or meaningfully toward more ESG friendly businesses – some chemical and polymer companies are similar.
- Trimming valuable side businesses and pursuing large-scale mergers may be one of the only ways to unlock value – EBITDA from synergies vs than CAPEX/M&A.
- In the West, chemical producer profits are historically strong, providing a false sense of security. A “first-mover” large-scale merger today might gain support.
Last week we discussed 28 Chemicals and related products and 91 Companies.
See PDF below for all charts, tables and diagrams
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