Group 1 - The article provides an update on the Virtus Terranova U.S. Quality Momentum ETF (JOET), which has been assigned a Hold rating since November 2021 [1] Group 2 - Vasily Zyryanov focuses on identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations, particularly in the energy sector and other industries [2] - The analysis emphasizes the importance of Free Cash Flow and Return on Capital for deeper investment insights, beyond simple profit and sales analysis [2] - Zyryanov acknowledges that some growth stocks may deserve their premium valuations, highlighting the need for thorough investigation into market opinions [2]

Financial Data and Key Metrics Changes - The second quarter results were in line with expectations, showing a rebound in Advanced Materials, which offset sluggish construction activity and tariff uncertainties, particularly in polyurethanes [5][6] - Positive cash flow was generated in the second quarter, despite a $25 million EBITDA impact due to aggressive inventory and working capital management [7] Business Line Data and Key Metrics Changes - Advanced Materials showed normalized earnings, while construction activity remained weak, impacting overall performance [5][6] - Polyurethanes utilization rates were reported in the low to mid-80s percentile, with North America slightly higher than China [11][20] Market Data and Key Metrics Changes - Order books in July were described as stable, with customers ordering just in time due to low inventories [14][15] - The automotive sector in China continues to perform well, contrasting with struggles in Europe and North America [20][21] Company Strategy and Development Direction - The company remains focused on maintaining a strong balance sheet and prudent capital spending, emphasizing value creation over volume [6][8] - There is an ongoing review of the asset portfolio, with a focus on bolt-on acquisitions in Advanced Materials rather than in the more volatile polyurethane sector [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential improvements in construction and consumer confidence, particularly in the long term [6][30] - The impact of tariffs and trade disputes remains a concern, with management advocating for clarity in trade policies to reduce volatility [35][40] Other Important Information - The closure of the Maleka anhydride facility was attributed to a lack of competitiveness in the European market, with the decision made after exploring all options [58][59] - The company does not foresee new MDI plants being built under current market conditions, citing sufficient existing capacity [48][102] Q&A Session Summary Question: MDI utilization rates in the second quarter and expectations for the third quarter - Management indicated that the industry is operating in the low to mid-80s percentile, with North America slightly higher and China lower [11][20] Question: Update on order books in July - Management described the situation as stable, with customers ordering just in time due to low inventories [14][15] Question: Thoughts on the dividend - The board is carefully considering the dividend, focusing on cash generation and market conditions, with no immediate changes expected [26][30] Question: Impact of trade finality on customer behavior - Management noted that volatility is the primary concern, and customers prefer clarity in trade policies to stabilize purchasing behavior [35][40] Question: Future of the European footprint and MDI facility - Management believes the Rotterdam facility will remain competitive for several years, despite market challenges [60][61] Question: Price declines in polyurethanes - A 5% year-over-year price decline was noted, primarily driven by competitive dynamics in Europe [89] Question: Expectations for MTBE margins - Management indicated that MTBE typically performs best during driving seasons, but struggles are expected to continue through the end of the year [113]

Core Insights - LyondellBasell Industries N.V. (LYB) reported a significant decline in profit for Q2 2025, with earnings of $115 million or 34 cents per share, down 87.5% from $924 million or $2.82 per share a year ago [1] - Adjusted earnings were 62 cents, reflecting a 71.8% decrease from the previous year's figure of $2.20, and missed the Zacks Consensus Estimate of 87 cents [1][9] - Despite a drop in revenue across all segments, net sales of $7,658 million exceeded the Zacks Consensus Estimate of $7,405.6 million, but fell 11.7% from $8,678 million in the prior-year quarter [2] Segment Performance - The Olefins & Polyolefins — Americas segment saw revenues decline by 18.8% to $2,377 million, missing the consensus estimate of $2,731.5 million [3] - Olefins & Polyolefins — Europe, Asia, and international segment revenues decreased by 4.8% year over year to $2,704 million, surpassing the consensus estimate of $2,600 million [3] - In the Intermediates and Derivatives segment, sales were $2,275 million, down 18.6% year over year, missing the consensus estimate of $2,321.5 million [4] - Advanced Polymer Solutions revenues fell by 3.3% year over year to $917 million, also missing the consensus estimate of $926 million [4] - The Technology segment's revenues decreased by 13.8% to $137 million, lagging behind the consensus estimate of $145 million [4] Financial Overview - LYB generated $351 million in cash from operating activities during the quarter, with capital spending of $539 million and $536 million distributed to shareholders through dividends and share buybacks [5] - At the end of the quarter, LYB had $1.7 billion in cash and cash equivalents, along with $6.4 billion in total available liquidity [5] Future Outlook - For Q3, LyondellBasell expects improved North American integrated polyethylene margins due to completed maintenance and strong domestic demand, while European demand and favorable feedstock costs are anticipated to persist [6] - The company plans to operate its North American olefins and polyolefins assets at 85% capacity, European facilities at 75%, and Intermediates & Derivatives assets at 80% [7] - LYB is monitoring potential risks and opportunities related to shifting tariffs and global trade patterns [7] Stock Performance - Shares of LyondellBasell have decreased by 41% over the past year, compared to a 26.6% decline in the industry [10]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $731 million, a decrease of 11% year-over-year, driven by lower sales volumes and unfavorable zircon pricing [9][10] - Loss from operations was $35 million, with a net loss of $84 million, including $39 million of restructuring charges [9][10] - Adjusted EBITDA was $93 million, representing a 42% decline year-over-year, with an adjusted EBITDA margin of 12.7% [10][12] - Free cash flow was a use of $55 million, including $83 million of capital expenditures [10][12] Business Line Data and Key Metrics Changes - TiO2 revenues decreased by 10% year-over-year, driven by an 11% decrease in sales volume, partially offset by a 1% favorable exchange rate impact [10][11] - Zircon revenues decreased by 20% compared to the prior year, driven by a 10% decrease in both sales volumes and pricing [11][12] - Revenue from other products decreased by 7% year-over-year, primarily due to lower sales volumes of pig iron [11] Market Data and Key Metrics Changes - Volumes in Q2 were 2% lower sequentially and 11% lower year-over-year, reflecting weaker than usual seasonality [6][7] - North America saw a slight uptick in volume, but not in line with the normal coating season, while Europe, Middle East, and Africa experienced a volume decline due to a weaker market [35][36] - India showed early sales momentum following the implementation of duties, presenting a significant opportunity for sales volume growth [7][20] Company Strategy and Development Direction - The company is executing a disciplined strategy to manage the downturn and optimize earnings and cash, including a cost improvement program expected to deliver $125 million to $175 million in sustainable run rate savings by 2026 [8][19] - Capital expenditures are being further reduced, with a focus on maintaining critical investments while ensuring financial strength and long-term shareholder value [19][24] - The company aims to maintain market leadership and improve top-line performance while bolstering liquidity and enhancing financial flexibility [19][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter was impacted by weaker demand across most end markets, with macroeconomic pressures including elevated interest rates and tariff-related uncertainties [6][7] - The company updated its 2025 financial outlook, expecting revenue to be between $3 billion and $3.1 billion, with adjusted EBITDA projected at $410 million to $460 million [20][21] - Management expressed confidence in the company's ability to weather the downturn and emerge as a stronger competitor [25] Other Important Information - The company ended the quarter with total debt of $3.1 billion and net debt of $2.9 billion, with a net leverage ratio of 6.1 times [14][15] - Liquidity as of June 30 was $397 million, including $132 million in cash and cash equivalents [15][16] - The Board of Directors declared a $0.05 per share dividend for the third quarter, a reduction of 60% [19][24] Q&A Session Summary Question: What are the drivers for the full-year guidance range? - Management indicated that volume and price will largely determine whether they come at the higher or lower end of the guidance range [28][29] Question: Can you provide an update on rare earth activities? - Management confirmed ongoing work on rare earth opportunities, with potential sales in the fourth quarter [30][31] Question: What drove the sequential decline in TiO2 volumes? - The decline was attributed to a muted coating season in North America, with slight volume increases but not in line with expectations [35][36] Question: What are the implications of the capital expenditure reductions? - Management clarified that strategic investments in mining projects remain on track, while discretionary capital expenditures are being reduced [39][41] Question: How does the company view the competitive landscape in Europe and India? - Management noted competitive pressures in Europe but highlighted strength in India due to favorable trade agreements [110][111]

Shell's CEO pledges to turn around the company’s struggling chemicals business https://t.co/pZ1dlBEtbx ...

Market Overview - A-share market shows divergence with resource cyclical stocks experiencing significant pullback, causing the Shanghai Composite Index to fall below 3600 points; AI-related hardware and software sectors saw a collective rise, boosting the ChiNext Index [1][3] AI Sector Performance - AI-related hardware and software sectors, including liquid cooling servers, AI agents, and PCB, exhibited strong gains; leading AI server company, Industrial Fulian, hit the daily limit and reached a historical high with a market capitalization exceeding 700 billion yuan [3][10] - Notable stocks in the liquid cooling server concept include Sihuan New Materials, Yingweike, and Chunzong Technology, all achieving daily limit increases [5][6] Resource Sector Performance - Resource cyclical stocks, which led gains last week, faced high-level corrections; sectors such as steel, non-ferrous metals, and chemicals saw significant declines, with steel stocks dropping over 3% and individual stocks like Anyang Steel and Baosteel falling more than 5% [15][16] - In the futures market, several previously popular commodities, including glass and coking coal, dropped over 6%, while lithium carbonate fell by 6% [16][17] Regulatory Changes - The Dalian Commodity Exchange announced adjustments to trading limits for certain futures contracts, including industrial silicon, polysilicon, and lithium carbonate, to maintain market stability [17]

July 30, 2025 Safe Harbor Certain information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These statements include statements about Stepan Company's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, pro ...

Core Insights - Select Water Solutions achieved significant milestones in sustainability and operational growth in 2024, focusing on water recycling and environmental responsibility [1][2][3] Sustainability Achievements - In 2024, Select treated or recycled 20.0 billion gallons (477 million barrels) of produced water, marking a 9% increase from 2023 [1][4] - The company increased environmentally-responsible wastewater disposal volumes by 41% compared to 2023 [1][4] - Select reduced total Scope 1 and Scope 2 emissions by 8% year-over-year, supported by investments in infrastructure and fleet upgrades [1][4] Performance Against Targets - Select exceeded its annual water recycling target by 324% and employee safety target by 49% as part of its sustainability-linked credit facility [1][4] - The company achieved a total recordable incident rate (TRIR) of 0.54 and a lost time incident rate of 0.25 in 2024 [4] Future Goals - For 2025, Select established a target to increase recycled produced water volumes by 14% at fixed facilities, with an annual increase of 17.5% until reaching a target of 403 million barrels per year by 2029 [8] - The company aims to reduce TRIR by approximately 1.5% each year, outperforming the industry average by 35% by 2029 [8] Commitment to Stakeholders - Select's 2024 Sustainability Report emphasizes its dedication to environmental stewardship and sustainable development within its operational communities [4][5] - The company plans to continue regular reporting on its ESG policies and performance through its website and annual reports [5]

Summary of Conference Call on Chemicals Industry Industry Overview - The chemical cycle is entering a phase of potential recovery after experiencing one of the sharpest downcycles in 20 years, with a projected US$50 billion turnaround in assets driven by China's anti-involution and deflating investment cycle [1][2][3] - Investor sentiment towards the commodity chemical cycle is currently the most bearish seen in two decades, with equities priced at 0.5-0.7 times tangible book value, indicating a significant capacity reduction is already factored in [2][5] Key Companies and Ratings - Upgrades were made for several companies: - **PTT Global Chemicals** and **PETRONAS Chemicals** upgraded to Overweight (OW) - **Tata Chemicals** received a double upgrade to OW due to global capacity cutbacks and focus on self-help measures [4][7] - **United Tractors** was lifted to Equal Weight (EW), while **IRPC** remains Underweight (UW) due to high cash costs and a challenging balance sheet [4] Market Dynamics - The current downcycle is characterized by reduced utilization rates, with production outside China at 2016 lows and an average utilization rate of 75%, with some companies experiencing rates as low as 50% [2][3] - The recovery is expected to be driven by increased utilization as companies in the coverage remain lower on the cash cost curve and benefit from good domestic/regional consumption [3][11] Financial Metrics - The EV/EBITDA multiple has been raised to 8.5x for below midcycle 2026 estimates, indicating stable pricing and margins for olefins in 2025, with improvements noted for HDPE/LDPE, PVC, and Paraxylene [5][11] - Industry EBITDA per ton for Asia is approximately 50% below the last downcycle, suggesting limited downside and peak oversupply [5] Supply and Demand Factors - China's anti-involution is expected to slow capacity growth by 25% from 2025 to 2028, which is seen as a positive development to address the supply glut [3] - Permanent closures and reduced utilization outside of China are anticipated to help restore balance in the market [3] Cost Structure and Feedstock Changes - The US shale revolution is positively impacting Asia, with a projected 20-25% reduction in operating costs as US ethane gains a larger share of the feedstock mix [2][22] - Companies are increasingly resorting to cheaper ethane feedstock to tackle lower product spreads, enhancing their competitive position [23][24] Capacity Adjustments - Global petrochemical capacity has seen cutbacks amid industry headwinds and muted profitability, with several companies announcing permanent closures and temporary halts in production [20][21] - The total book value in the coverage could see a re-rating as the cycle turns, with significant contributions from major players like Reliance Industries, Indian Oil Corp, and Tata Chemicals [18] Conclusion - The chemicals industry is poised for a potential recovery, driven by strategic capacity adjustments, improved cost structures, and favorable market dynamics. The focus on self-help measures and the impact of US ethane on operating costs are critical factors to watch in the coming years [1][2][3][4][5]

Group 1 - LyondellBasell Industries N.V. (NYSE: LYB) is set to report its earnings on August 1st before the market opens, with investors closely monitoring the results due to the contentious nature of LYB stock [1] - The upcoming earnings report is significant for investors as it may influence stock performance and investor sentiment towards the company [1] Group 2 - The investing group Ian's Insider Corner offers features such as a Weekend Digest, trade alerts, and direct access to insights from the leader, Ian Bezek [2] - Ian Bezek has a background as a hedge fund analyst and has conducted extensive research in Latin American markets, focusing on high-quality growth stocks [3]