Specialty chemical company
) recently entered into an agreement with Pertamina - the
state-owned energy company of Indonesia - for the development of
fuel ethanol projects.
As per the agreement, Pertamina will collaborate exclusively with
Celanese to jointly develop synthetic fuel ethanol in Indonesia by
deploying Celanese's proprietary TCX ethanol process technology.
Celanese TCX Technology is an innovative ethanol production process
that helps meet transportation fuel needs by converting domestic
natural gas and coal feedstocks to liquid fuel.
Celanese will be working with Pertamina to meet Indonesia's growing
need for liquid transportation fuel for the development of new
energy sources. One of the priorities of Pertamina is to support
the government of Indonesia to secure and manage energy resources
to cater to the rising demand of people, as well as creating job
and employment opportunities. Celanese and Pertamina will work
together to define potential supply arrangements, production
locations and distribution strategies.
The U.S. government and major U.S.-based companies are also
extending their support for the development of Indonesia. Celanese
remains encouraged by the country's stand in expanding its economic
and business interests in Indonesia to promote infrastructure
development and investments.
Last month, Celanese released its second quarter 2012 results.
The company's adjusted earnings (excluding one-time charges) of
$1.47 per share were down from $1.66 a year ago. However, it marked
the second highest quarterly adjusted earnings in the company's
history. Earnings also exceeded the Zacks Consensus Estimate of
$1.40 per share. Profit, as reported, rose 3.4% year over year to
$210 million or $1.31 per share.
Sales for the quarter were $1,675 million, down 4% year over year
and missing the Zacks Consensus Estimate of $1,765 million. The
decline was due to lower pricing in the company's acetyl
intermediates business, a weakened European economy and slower
growth in Asia.
Celanese expects challenging economic conditions to prevail in
Europe and the current growth rates in Asia to continue for the
rest of 2012. As such, the company expects earnings per share in
the second half of 2012 to be slightly lower than the first half of
Celanese, which competes with
), currently retains a Zacks #3 Rank, reflecting a short-term (1 to
3 months) Hold rating. We have a long-term (more than 6 months)
Neutral recommendation on the stock.
BASF SE (BASFY): Free Stock Analysis Report
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