The Woodlands, Texas – Third quarter sales at Huntsman were up by 51% to $2.3bn and drove adjusted EBITDA up by 97.3% to $371m in the third quarter of 2021 up 51.3% on the same period last year.
Tight raw materials helped Huntsman in Q3 2021
'We are pleased with the strong earnings we delivered in the third quarter,’ said CEO Peter Huntsman. ‘Despite pockets of disruption in our supply chain and cost inflation, we see strong pent-up demand across most of our businesses with favourable pricing dynamics.'
In the company's polyurethanes business, sales rose by 49.9% between the third quarter of 2020 and the third quarter of 2021. At $1403m, this was up from $936m in the equivalent period in 2020.
Adjusted EBITDA in the division rose 57.7% at $246m in the third quarter of 2021. This compares with $156m in the equivalent period in 2020.
MDI prices rose in all regions, and Huntsman said it sold more because of strong demand driven by recovery from coronavirus slowdowns, although this was partly offset by the impact of Hurricane Ida on the plant in Geismar, Louisiana. Higher prices fed through to higher earnings.
Huntsman also won an arbitration dispute with Albemarle. Three judges found that Albemarle – and its predecessor Rockwood – had defrauded Huntsman in connection with the sale of its pigments business in 2014, and breached the contract under which it was sold. Huntsman won $600m in damages and, after lawyers’ fees, expects to net more than $400m. Albemarle could appeal against the decision in a New York court.