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NGLs Week

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Petchems stocks post mixed results at height of earnings season: PCW index

HOUSTON, February 4, 2016 (PCW) –- Petchems companies’ stocks proved a mixed bag Thursday as economic indicators provided conflicting direction.

Although crude oil was softer, dipping briefly below the $30/bbl mark mid-week, a weaker US dollar against the Euro and stronger showings in the Dow Jones Industrial Average and S&P 500 Index provided bullish support for some companies.

The aromatics/refinery sector proved to be the most vulnerable to crude’s $2/bbl loss week-on-week with its average stock price down $1.26, or 2.19%, to $56.45/share. Marathon Petroleum’s 13.13% stock price decline yanked the group lower as it reported on Wednesday that its net profit fell about 77% during the fourth quarter.

The vinyls sector saw the week’s biggest increase as its average stock price rose $1.36, or 4.55%, to $31.35/share. Axiall’s meteoric stock price gains of 96.43% during the week brought the entire segment higher. Ever since Axiall rejected Westlake Chemical’s $2 billion buyout bid, Axiall’s stock price has been on the rise amid heavy trading as major shareholders contended the offer was less than adequate.

The olefins/polyolefins sector was next with its average stock price up $2.09, or 3.97%, to $54.61/share. Dow and DuPont’s stock prices saw weekly gains of 14% and 13.6% as both companies reported earnings that beat Street estimate. Dow also reported its 4Q net income rose quarter-over-quarter. Additionally, Dow’s current CEO Andrew Liveris announced he would be leaving the company by 2Q 2017, a move that emboldened market players who had attributed Dow’s weaker performance over the past few year to Liveris.

Finally, the midstream sector saw its average stock price slip $0.05, or 0.23%, to $19.95/share. Energy Transfer Partners’ 11% decline in its stock price offset gains from other companies in the segment. Ratings agencies early during the week lower ETP’s credit rating. -- Samantha Hartke

*Index components:

Weekly Stock Price Index
  This Week Last Week Difference % Difference
Midstream Average 19.95 19.99 -0.05 -0.23
Olefins/Polyolefins Average 54.61 52.52 2.09 3.97
Aros/Refinery Average 56.45 57.71 -1.26 -2.19
Vinyls Average 31.35 29.98 1.36 4.55
Major Economic Indicators
  This Week Last Week Difference % Difference
EUR/USD 1.12 1.09 0.03 2.45
Dow Jones Indices 16416.58 16069.64 346.94 2.16
S&P 500 1915.45 1893.36 22.09 1.17
WTI crude 31.72 33.22 -1.50 -4.52