There are few companies with more at stake from Russian natural-gas flows into Germany than the chemicals sector.
(Reuters) -German speciality chemicals maker Lanxess on Thursday said a potential embargo on Russian gas would weigh on its production and core profit this year, after releasing upbeat guidance for the current quarter. The Cologne-based group said a complete freeze on Russian gas imports would have an estimated direct negative effect of 80 million to 120 million euros ($85-$127 million) per year on its adjusted core profit (EBITDA), though the indirect effects were unquantifiable. Lanxess, which makes high-end speciality chemicals such as additives, lubricants, flame retardants and plastics, expects a second-quarter core profit of 280 million to 350 million euros, compared with 277 million last year, as it intends to keep passing on higher raw material and energy costs in all segments.
Standard Lithium (NYSEMKT: SLI) continued its rocky ride, crashing on Monday after a choppy last week. As of 2:30 p.m. ET Nov. 22, Standard Lithium stock was trading down 10% as the spat between the company and a short-seller got even uglier. On Nov. 18, Blue Orca announced it was short Standard Lithium stock and went on to release a short-seller report containing some nerve-wracking points against the company.