<b>The performance of isocyanate enterprises declined in the third quarter</b>

As the global economic environment becomes increasingly severe, its impact on various enterprises is also gradually emerging, and isocyanate enterprises are no exception. Recently, various listed companies have successively released their third quarter reports. Due to the decline in MDI and TDI this year, the isocyanate unit revenue of each company has increased compared with last year. Different degrees of decline, the specific quarterly report is as follows:

1. BASF: BASF Group's sales increased in the third quarter of 2018, and revenue decreased year-on-year

In the third quarter of 2018, the BASF Group's sales increased by 8% year-on-year to 15.6 billion euros, mainly due to higher selling prices in all business areas. Higher sales volumes and the acquisition of Bayer's business in August 2018 also contributed to the sales growth, but unfavorable currency factors offset the growth momentum. Operating income before special items (EBIT) decreased by EUR 232 million year-on-year to EUR 1.5 billion, mainly due to a significantly lower contribution from the Chemicals business area. EBIT before special items in the Functional Materials & Solutions and Agricultural Solutions segments also fell sharply, while earnings in the Performance Products segment fell slightly, partly offset by higher earnings in the Other segments.

Sales in the Chemicals business area amounted to 4.3 billion euros, an increase of 7 percent compared to the same period last year. This was primarily due to higher selling prices across all businesses, especially petrochemicals. Third-quarter EBIT before special items of EUR 851 million was EUR 251 million lower than in the strong third quarter of 2017, driven primarily by Isocyanates in the Monomers business unit and steam cracking in the Petrochemicals business unit Reduced product profits. Sales were also affected by the unfavorable factors brought about by the increase in fixed costs, mainly maintenance costs. This effect was not offset by higher sales in the Intermediates business unit.

Read the original text: https://www.basf.com/cn/zh/company/news-and-media/news-releases/global/2018/10/p-18-343.html

2. Covestro: The market environment is constantly challenging, and Covestro maintains stable performance

Despite the increasingly challenging market environment, Covestro continued its positive performance from 2018 and achieved solid results in the third quarter. Thanks to the increase in sales price and sales volume, the group's sales in the third quarter increased by 4.8% year-on-year to 3.7 billion euros. Core business volumes rose slightly by 0.2%, unchanged from the same period last year, despite constrained product availability. Group earnings before interest, taxes, depreciation, and amortization (EBITDA) were also at the same level as in the previous year at EUR 859 million. The lower margin in the Polyurethanes segment was offset by a higher margin in the Polycarbonates segment. Net profit rose 1.0 percent to 496 million euros. Earnings per share rose 6.6 percent to 2.59 euros, thanks to an ongoing share buyback program. Free operating cash flow (FOCF) fell by 12.2% to EUR 578 million due to higher investments.

In the third quarter, the sales of the polyurethane business segment decreased slightly by 1.2% to 1.849 billion euros. Declines in EMLA (Europe, Middle East, Africa and Latin America ex-Mexico) and Asia Pacific were offset by growth in the NAFTA (United States, Canada and Mexico) region. Reasons for the decline include price changes, currency effects and unplanned factory shutdowns. Core business volumes in the Polyurethanes business segment fell by 2.0 percent. EBITDA in the business segment fell by 21.5 percent to 432 million euros. The main reason is the increase in the purchase price of raw materials.

Read the original text: https://www.covestro.cn/zh-cn/media/news-releases/2018/solid-results-in-an-increasingly-challenging-market-environment

3. Wanhua Chemical: The price of polymeric MDI is under pressure, EPS0.76 in the third quarter:

Single-quarter EPS0.76 yuan: the company announced the 2018Q3 quarterly report and operating data. During the reporting period, it achieved revenue of 45.923 billion yuan, a year-on-year increase of 9.37%; net profit attributable to the parent company was 9.021 billion yuan, a year-on-year increase of 15.49%; RMB, a year-on-year increase of 9.23%, EPS3.30 yuan, operating net cash flow of 155.19 yuan. Single Q3 achieved revenue of 15.869 billion yuan, a year-on-year increase of 9.19%; net profit attributable to the parent company was 2.071 billion yuan, a year-on-year decrease of 29.79%; single-quarter EPS was 0.76 yuan.

Production and sales decreased month-on-month, and polyurethane business revenue declined: From the perspective of production and sales, the polyurethane series of Q3 company decreased by 8.53% and 5.69% month-on-month, the petrochemical series decreased by 11.12% and 2.31% month-on-month, and the fine chemicals and new materials series decreased by 24.99% month-on-month and 4.68%; in terms of revenue, the polyurethane series fell by 13.34% month-on-month due to the fall in MDI prices, the petrochemical series increased by 12.52% month-on-month due to the rise in crude oil prices, and the fine chemicals and new material series fell by 6.12% month-on-month.

Read the original text: http://notice.10jqka.com.cn/api/pdf/2741825e5d836b3e.pdf

4. Cangzhou Dahua: revenue declined slightly in the third quarter

Cangzhou Dahua (stock code: 600230) recently announced the third quarter report of 2018, showing that during the reporting period (January-September 2018), it achieved revenue of 3.55 billion yuan, an increase of 13.47% over the same period last year; The net profit of shareholders of listed companies was 1.029 billion yuan, an increase of 6.63% over the same period last year; the basic earnings per share was 2.4981 yuan per share, compared with 2.3428 yuan per share in the same period last year. As of September 30, 2018, the total assets of Cangzhou Dahua were 4.741 billion yuan, an increase of 9.14% over the end of the previous year; the net cash flow from operating activities was 1.029 billion yuan in the current period, compared with 971 million yuan in the same period last year.

From the perspective of the third quarter, due to the price drop of TDI, Cangzhou Dahua achieved a revenue of 1.056 billion, a slight decrease of 0.3%, while Rising crude oil prices drove up raw material costs, resulting in a 19% year-on-year decline in net profit in the third quarter to 280 million yuan.

Read the original text: http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2018/2018-10/2018-10-26/4821962.PDF

Remarks: As of press time, the Huntsman quarterly report has not yet been released, so it is not included in this article.

2017 is a big year for polyurethane, and the overall economic situation this year is poor, and it is normal for the company's performance to shrink compared with last year. Next, as new global isocyanate production capacity is gradually put into production, competition will only become more intense, which may bring Changes in the industry landscape.