Huntsman Announces Update on the Hurricane Ida Impact to its Operations

Rhea-AI Summary

Huntsman Corporation (HUN) reported that Hurricane Ida did not significantly damage its Geismar, Louisiana manufacturing facility. Operations were safely shut down prior to the hurricane's arrival, and preparations for a gradual restart are underway. The company expects that any EBITDA impacts from the hurricane will be mitigated by strong performance in its Performance Products division and MDI markets in Europe and Asia. The anticipated production resumption timeline is this weekend, with increased rates expected next week.

Positive

• No significant damage reported at Geismar facility from Hurricane Ida.
• Production restarts planned for this weekend, with increased rates next week.
• Strength in Performance Products division expected to offset EBITDA impact.

Negative

• None.

THE WOODLANDS, Texas, Sept. 7, 2021 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today disclosed that Hurricane Ida caused no significant damage to its Geismar, Louisiana manufacturing facility.  The Geismar facility manufactures products for Huntsman's Polyurethanes and Performance Products divisions and all units were shutdown orderly and safely before Hurricane Ida made landfall. Site personnel are currently preparing the production units for restart. The precise timing of the restart of each unit is dependent on the availability of utilities and the ability of other third-party suppliers to restart their respective operations.  Currently, the Company's best estimate is that production comes back online slowly this coming weekend with an increase in rates next week. Under this timeline, the Company currently anticipates that the estimated impact from Hurricane Ida to third quarter 2021 EBITDA will be offset by strength in the broader Performance Products division and the European and Asian MDI markets.

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2020 revenues of approximately $6 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:
Twitter: www.twitter.com/Huntsman_Corp 
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman

Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

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SOURCE Huntsman Corporation

FAQ

What was the impact of Hurricane Ida on Huntsman Corporation operations?

Huntsman reported no significant damage to its Geismar facility from Hurricane Ida.

When will Huntsman Corporation resume production after Hurricane Ida?

Production at the Geismar facility is expected to restart this weekend.

How will Hurricane Ida affect Huntsman's third-quarter EBITDA?

Huntsman anticipates that the impact on EBITDA will be offset by strength in the Performance Products division.