Celanese (CE) Starts Carbon Capture & Utilization Operations
Celanese Corporation CE stated that, as part of its Fairway Methanol joint venture with Mitsui & Co., Ltd., it has started operating a carbon capture and utilization (CCU) project at Clear Lake, TX. An estimated 130,000 metric tons of low-carbon methanol will be produced annually by the project, together with the capture of 180,000 metric tons of CO2 industrial emissions.
Celanese is actively utilizing CCU to provide low-carbon alternatives for its Acetyl Chain and Engineered Materials products in an effort to assist clients worldwide in meeting the increasing need for more circular and sustainable solutions. To be launched under the ECO-CC brand, the products will receive transparent support via life cycle evaluation and mass balance tracking procedures.
The company's globally integrated value chain positions it to supply a wide range of solutions with carbon capture content across both its integrated Acetyl Chain and additional methanol-derived products such as acetyl copolymers.
CCU captures CO2 industrial emissions from both Celanese and third-party sources and uses reduced-carbon-intensity hydrogen to chemically transform the acquired CO2 into a methanol building block used in downstream production. This low-carbon input is subsequently utilized to minimize traditional fossil fuel-based raw materials and can aid in the production of a wide range of end products across the majority of key industries. Third-party sources account for 80% of the CO2 waste recovered.
Shares of Celanese have gained 23.9% over the past year compared with a 18% rise of its industry.
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Celanese, on its third-quarter call, said that it expects adjusted earnings in the range of $2.10-$2.50 per share for the fourth quarter of 2023. The projection includes the expected roughly 30 cents impact from the M&M amortization. For the full year, Celanese anticipates adjusted earnings at the bottom end of the guidance of $9-$10, which includes approximately $1.20 per share of M&M transaction amortization.
Celanese Corporation Price and Consensus
Celanese Corporation price-consensus-chart | Celanese Corporation Quote
Zacks Rank & Key Picks
Celanese currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include The Andersons Inc. ANDE, Cal-Maine Foods Inc. CALM and Steel Dynamics Inc. STLD.
Andersons currently carries a Zacks Rank #1 (Strong Buy). ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. The company’s shares have surged 55.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CalMaine Foods currently carries a Zacks Rank #1. CALM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 131.5%. The company’s shares have jumped 1.6% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ current-year earnings has been revised upward by 4.3% in the past 60 days. It currently carries a Zacks Rank #1. Steel Dynamics delivered a trailing four-quarter earnings surprise of roughly 6.5%, on average. STLD shares are up around 5.8% in a year.
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