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Williams expects final bids on sale of Geismar cracker in late 1Q
HOUSTON, February 15, 2017 (PCW) – Williams on Wednesday said it expects final bids for the sale of its 2.06 billion lbs/yr Geismar olefins unit late in the first quarter.
In its fourth quarter earnings release, Williams added that the sale was “positively progressing.”
“Williams expects to raise more than $2 billion in after-tax proceeds from planned asset monetizations of Geismar and other select assets which are not core to our strategy,” the company stated. “We expect proceeds from these monetizations will be used for additional debt reduction and to fund capital and investment expenditures.”
Last September, Williams announced it was looking at a tolling agreement or an outright sale of the plant.
Also on Wednesday, Williams reported a 4Q net loss of $15 million. In 4Q 2015, the company reported a net loss of $715 million. The improvement was attributed to the absence of a $1.1 billion pre-tax impairment of goodwill and $698 million of lower pre-tax impairments of investments and other assets.
Williams’ NGL & Petchem Services segment reported 4Q modified earnings loss of $11 million, compared to the $70 million loss seen in the year-ago period. The improvement was due to the absence of a $64 million write-off in 2015 of project development costs for an olefins pipeline project. -- Samantha Hartke