Latest news with #Path2Zero
Yahoo
5 days ago
- Business
- Yahoo
DOW Agrees to Divest 50% Ownership in DowAksa Joint Venture
Dow Inc. DOW signed an agreement to sell its 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to the other 50% joint venture partner, Aksa Akrilik Kimya Sanayii A.S. The sale proceeds are estimated to be $125 million, which will be used to support DOW's balanced capital allocation approach. This reflects an enterprise value of around 10x the estimated 2025 operating EBITDA. The sale of the stake in the joint venture created in 2012 is expected to close in the third quarter of 2025. DOW's decision to exit is rooted in its best-owner mindset strategy of focusing on its core, high-value downstream businesses. DOW stock has lost 47.1% over the past year compared with the industry's 24.9% decline. Image Source: Zacks Investment Research Dow, on its first-quarter call, said that it remains committed to disciplined execution and increased actions to boost profitability and support cash flow. It continues to take actions to address heightened macroeconomic and geopolitical uncertainties. Dow has delayed the construction of the Fort Saskatchewan Path2Zero project amid the prevailing market conditions. Also, it is expanding the earlier announced review of European assets, mainly in polyurethanes, to address the challenging demand conditions and regulatory environment in the region. These new and earlier announced actions are expected to deliver roughly $6 billion in cash support. DOW currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Basic Materials space are Akzo Nobel N.V. AKZOY, Newmont Corporation NEM and Balchem Corporation BCPC. While AKZOY and NEM currently sport a Zacks Rank #1 (Strong Buy) each, BCPC carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Akzo Nobel's current-year earnings is pegged at $1.64 per share, implying a 17.14% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once. The Zacks Consensus Estimate for NEM's current-year earnings is pegged at $3.92 per share, indicating a 12.64% year-over-year earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 32.41%. NEM's shares have gained 40.1% in the past year. The Zacks Consensus Estimate for BCPC's 2025 earnings is pegged at $5.15 per share, indicating a rise of 31% from year-ago levels. The company's earnings beat the consensus estimate in two of the trailing four quarters while missing the rest. Its shares have gained 8.8% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dow Inc. (DOW) : Free Stock Analysis Report Newmont Corporation (NEM) : Free Stock Analysis Report Akzo Nobel NV (AKZOY) : Free Stock Analysis Report Balchem Corporation (BCPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Winnipeg Free Press
09-05-2025
- Business
- Winnipeg Free Press
Pembina Pipeline sees enough demand for potential expansion to Cedar LNG project
CALGARY – The chief executive of Pembina Pipeline Corp. says he believes there will be enough demand to support an expansion to the Cedar LNG project on the B.C. coast as it looks to sign on more shippers for the first phase now in early construction. Pembina has shortlisted the preferred counterparties, and has begun negotiating definitive agreements, Scott Burrows told analysts on a conference call Friday to discuss his company's first-quarter results. 'They're big, complicated agreements. We'll do the right deal for Pembina, not the fastest deal for Pembina,' he said. The US$4-billion floating liquefied natural gas export terminal in Kitimat, B.C., is a partnership between Pembina and the Haisla Nation. The first phase of the project was given the green light almost a year ago and is on track to come into service in late 2028. The cargoes of LNG — gas that has been chilled into a liquid state so it can be transported overseas on specialized tankers — will be bound for high-demand Asian markets. ARC Resources Ltd. is to supply gas for about half of the plant's capacity from the Montney shale in northeastern B.C. and northwestern Alberta. Pembina has been looking to contract out its 1.5-millon-tonne-per-year share of capacity, and Burrows said talks are going well. Based on conversations around bringing more producers into the first phase, Burrows said it appears a second phase would be welcome. 'Certainly the gas demand is there,' he said. 'Based on early-stage negotiations on Cedar capacity, we believe there is demand for a Cedar 2.' A question mark, however, would be whether there would be enough pipeline capacity to get the gas from inland to the coast, he added. There are two other B.C. LNG projects in the works. Also in Kitimat, LNG Canada, a partnership between Shell and four Asian partners, is slated to start delivering shipments in the next few months. Meanwhile, Woodfibre LNG, owned by Pacific Energy Corp. and Enbridge Inc., is being built near Squamish, B.C., and is on track to be complete in 2027. Also Friday, Pembina said it is not seeing a significant near-term financial impact related to Dow Inc.'s delay of a net-zero petrochemical project northeast of Edmonton. Dow said last month it is still committed to the nearly $9-billion Path2Zero project in Fort Saskatchewan, Alta., but that it has decided to push back the timeline due to weak market conditions. Pembina was to supply and transport ethane to the project. 'To date, Pembina has not spent material capital to support the ethane supply agreement and will continue to progress these projects, but may now have more time available to execute them,' Burrows said. On Thursday, Pembina reported earnings of $502 million for the three months ended March 31, up from $438 million during the same period of 2024. That amounted to 80 cents per diluted share versus 73 cents a year earlier. Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. Revenue was $2.28 billion, an increase from $1.54 billion. The Calgary-based company says it doesn't expect any impact from U.S. tariffs on energy imports this year given much of its business is under contract. It says it has also not seen any significant decline in activity from producers in Western Canada who use Pembina's system to get their oil and gas to market. This report by The Canadian Press was first published May 9, 2025. Companies in this story: (TSX: PPL)
Globe and Mail
28-04-2025
- Business
- Globe and Mail
Dow Inc. (DOW) Halts $9 Billion Petrochemical Project in Canada
U.S. chemical giant Dow Inc. (DOW) has paused construction of a $9 billion net-zero petrochemical project in Canada, citing weak market conditions. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Formerly known as the 'Dow Chemical Company,' the Michigan-based concern is one of the three largest chemical producers in the world. It previously committed to build the 'Path2Zero project' in the western Canadian province of Alberta, which is the center of Canada's oil and gas industry. However, after a 'comprehensive review,' Dow says that it has decided to push back the timeline for the project. No new timeline for its completion has been announced. Management at Dow says it is adjusting to what is sees as a 'lower-for-longer earnings environment' in coming quarters due to macro-economic and market uncertainty caused by U.S. trade tariffs. Job Losses As such, management at Dow says they won't need the Canadian project's output as early as thought and will pause construction on the petrochemical plant until market conditions improve. The delay means that Dow won't be spending $1 billion in Canada this year. The project was expected to create 5,000 jobs in Alberta during the construction phase and about 450 full-time jobs once the plant was operational. Dow previously said that the massive Canadian project would be the world's first net-zero greenhouse gas emission petrochemical plant. DOW stock has declined 25% so far this year. Is DOW Stock a Buy? The stock of Dow Chemical has a consensus Hold rating among 16 Wall Street analysts. That rating is based on three Buy, 11 Hold, and two Sell recommendations issued in the last three months. The average DOW price target of $34.87 implies 17.68% upside from current levels. Disclaimer & Disclosure Report an Issue
Edmonton Journal
24-04-2025
- Business
- Edmonton Journal
Dow delays construction of Path2Zero project in Fort Saskatchewan
Amid global economic uncertainty and an ever-changing geopolitical landscape, Dow's Q1 earnings report signals a slowdown in spending. Dow chairman and CEO Jim Fitterling announces the $8.8 billion DOW Path2Zero Fort Saskatchewan project on Nov. 29, 2023. Photo by David Bloom / Postmedia, file Dow Inc. delayed the construction of its Path2Zero project in Fort Saskatchewan to reduce spending while trying to manage a downcycle in the market. In its quarterly earnings report released Thursday, Dow announced that it would be cutting its spending to help ride out a downturn in the market. Part of its spending cuts include an expanded review of its European assets (primarily in polyurethanes), and a pause in construction of its Path2Zero project in Alberta's Industrial Heartland in Fort Saskatchewan, northeast of Edmonton. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by David Staples, Keith Gerein and others, Oilers news from Cult of Hockey, Ask EJ Anything features, the Noon News Roundup and Under the Dome newsletters. Unlimited online access to Edmonton Journal and 15 news sites with one account. Edmonton Journal ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by David Staples, Keith Gerein and others, Oilers news from Cult of Hockey, Ask EJ Anything features, the Noon News Roundup and Under the Dome newsletters. Unlimited online access to Edmonton Journal and 15 news sites with one account. Edmonton Journal ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Although it has put a pause on construction, Dow says it remains committed to its Path2Zero project 'and the growth upside it will enable.' The announcement comes amid broad market volatility, fuelled by tariffs being imposed by U.S. President Donald Trump. This year to date, Dow shares were down over 9.6 points (more than 24 per cent), reaching a low of US$25.81 on April 8 — the same week Trump's tariffs cratered markets around the world. 'Markets worldwide are awaiting additional clarity into how the tariff and global trade negotiations will land. In the meantime, we remain focused on managing a disciplined and balanced capital allocation approach over the cycle,' said Dow chairman and CEO Jim Fitterling. The decision knocks $1 billion off of Dow's original enterprise capital spending to $2.5 billion from $3.5 billion. The Path2Zero project scope is significant, aiming to become the world's first net-zero ethylene cracking facility. Once complete, Dow said it would decarbonize 20 per cent of its global ethylene capacity, while increasing its polyethylene supply by roughly 15 per cent. Get the latest headlines, breaking news and columns. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. In all, it's expected to produce and supply about 3.2 million metric tons of certified low- or zero-carbon emissions for polyethylene and ethylene derivates for Dow's customers and partners around the world — all of which is a boon for the company. Perhaps more important in the short term to the region, however, is the estimated 4,500 to 5,500 jobs the project will create during peak construction and the 400-500 full-time jobs once operational. Dow didn't say in the report when it might resume construction on the project. Energy and Minerals Minister Brian Jean was not available for an interview on the announcement, but his office said it is encouraged that the area is still a priority for Dow. ' We are encouraged to hear that Dow continues to see this as a key corporate priority and that construction work remains ongoing, even if they are slowing down construction at the Path2Zero growth project in 2025,' said the minister's office. In addition, the minister's office also underscored the importance of the Path2Zero project for the province. This advertisement has not loaded yet, but your article continues below. ' This project is very important for Alberta and our economy, and for proving that Alberta is the best place in the world to build low emissions energy and petrochemical projects.' Dow's decision on the Fort Saskatchewan project comes alongside other cost-saving measures being taken by the company to reduce spending. Besides the Path2Zero delay and extended review of its European assets, Dow also sold a minority stake in select Gulf Coast infrastructure that is anticipated to close in May, and is expected by the company to generate proceeds of up to $3 billion. It's also expecting more than $1 billion from Nova Chemicals Corp., based in Alberta, following a 2019 court ruling by the Court of Queen's Bench of Alberta for damages incurred in 2012. In all, Dow said its actions aim to deliver roughly $6 billion in 'near-term cash support' that will enable the company to ride out the ongoing economic and geopolitical uncertainty. Read More Bookmark our website and support our journalism: Don't miss the news you need to know — add and to your bookmarks and sign up for our newsletters here. You can also support our journalism by becoming a digital subscriber. Subscribers gain unlimited access to The Edmonton Journal, Edmonton Sun, National Post and 13 other Canadian news sites. Support us by subscribing today: The Edmonton Journal | The Edmonton Sun. Sports Sports Sports Local News Edmonton Oilers
Global News
24-04-2025
- Business
- Global News
Dow pauses work on $11.6B Alberta net-zero petrochemical site due to economic uncertainty
Dow Chemical has paused construction on its $11.6-billion net-zero petrochemical project northeast of Edmonton due to the uncertain economic state of the world. The company said Thursday it is delaying construction of its Path2Zero project in the Industrial Heartland to match market conditions, which Dow said should save the company about $1 billion. The Dow project involves an expansion and retrofit of Dow's existing manufacturing site along the North Saskatchewan River north of Fort Saskatchewan. The project was to include the building of a new hydrogen-fuelled ethylene cracker, as well as carbon capture and off-site sequestration. 'Dow is reprofiling the spending and pace of significant portions of the project as low GDP growth continues to impact our industry. The increased macroeconomic and geopolitical volatility are expected to persist in the near-term,' the company said in a statement to Global News. Story continues below advertisement 'As a result, we are slowing down field mobilization to match market timing and preserve cash until we see demand conditions improve.' Tweet This Click to share quote on Twitter: "As a result, we are slowing down field mobilization to match market timing and preserve cash until we see demand conditions improve." View image in full screen A rendering of the Dow Chemical Path2Zero net-zero petrochemical project in the Industrial Heartland. Credit: Dow Chemical It's not surprising amid the ongoing tariff moves being made by U.S. President Donald Trump and how the world markets have responded, according to economic experts. 'The Trump tariffs have thrown a wrench into a lot Canadian business plans where you have to make decisions that will have consequences for decades to come,' said Concordia University economist and Alberta resident Moshe Lander. 'When you're seeing the market go up and down, when you don't know where the tariffs are coming or going, you can imagine, then, a business is going to say, 'Wait, I want to sit this one out and make sure that what I think is a profitable investment is going to be a profitable investment' — and when you have the White House doing 180s on a day-to-day basis and then sometimes that 180 is doubling down on something they said previously, his is not at all surprising. Story continues below advertisement 'These are some of the consequences of tariff wars beyond just what it might mean for consumers.' Tweet This Click to share quote on Twitter: "These are some of the consequences of tariff wars beyond just what it might mean for consumers." The project was first announced in 2021, given the go-ahead after being fully financed in 2023, and construction began in 2024. The first phase was set to start up in 2027 and the second in 2029. 1:41 Major petrochemical investment announced in Alberta Dow said it will complete home office (engineering and procurement) work to enhance construction readiness and in the coming weeks, the project's leadership will take time to look at the impact of the decision to pause further work. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'The long-term strategic rationale of the Path2Zero project remains strong and we are committed to completing this project,' Dow said in its statement Thursday. Lander said that statement should be taken with a grain of salt. Story continues below advertisement 'What are they going to say? 'We're only committed if things work out well, otherwise thanks but no thanks?' Of course they have to say, because in the event that they do proceed, they need to have the goodwill of the provincial government, of the local population, and of workers that would want to come work for a company that has to sunshine and happiness. Not negativity and pessimism,' he said. When announced two years ago, Dow's Path2Zero facility was billed as the world's first net-zero Scope 1 and 2 greenhouse gas emissions-integrated ethylene cracker and derivatives site. 1:57 Major net-zero project announced for Alberta's industrial heartland The project aimed to convert cracker off-gas into hydrogen as a clean fuel to be used in ethylene production. Carbon dioxide was to be captured on-site and then transported to be stored by adjacent partners. The project was expected to increase the U.S. chemical company's polyethylene capacity by two million tonnes per year and decarbonize its global ethylene capacity by 20 per cent. Story continues below advertisement Lander said with all the oil and gas knowledge and expertise accumulated in Alberta over the past century, a project of this nature would have been a great step in advancing the industry in the net-zero direction the world is moving. 'This is the type of thing that would be great for Alberta, great for the capital region, but it's also one of those things that its circumstances beyond our control, and there's only so much politicking that the premier can do,' Lander said. 'There's only so many trips she can make on taxpayer money down to the U.S. to try and elicit some sort of exemption, and there's so much threatening she can do of the federal government, whichever party it is.' Lander said Dow's move may prompt companies involved in less profitable or riskier endeavours to follow suite in pausing plans. 'Projects could get cancelled, that might have been in the offing, or existing projects might get suspended on the grounds that there was an assumption maybe something was going to happen in the marketplace that is no longer happening,' Lander said. 'It has consequences that reverberate beyond just this one project.' Tweet This Click to share quote on Twitter: "It has consequences that reverberate beyond just this one project." The Alberta government said the Dow facility would produce 3.2 million metric tonnes of polyethylene and ethylene derivatives. Story continues below advertisement 1:54 Alberta premier speaks on future of Industrial Heartland It was to provide up to 8,000 jobs during construction and 500 full-time jobs one it opened. Lander predicts the project will only resume if the global economy becomes more stable. 'The reality is at the end of the day, it's a for-profit firm. What speaks louder to me than anything else is not some press release, but the bottom line is the financials,' Lander said. 'If there's no profits to be had, I can guarantee you they are no more committed to Edmonton than to any other place in North America.' Two federal tax credits — the carbon capture, utilization and storage investment tax credit as well as the clean hydrogen investment tax credit — were to provide up to $400 million in support of the project and were delivered upfront 'to get shovels in the ground,' MP Chrystia Freeland said at the time in 2023. Story continues below advertisement The province also provided a 12 per cent grant worth $1.8 billion to the project through the Alberta Petrochemicals Incentive Program. The energy minister's office said the pause is a business decision and all related questions should be directed to Dow. 'We are encouraged to hear that Dow continues to see this as a key corporate priority and that construction work remains ongoing, even if they are slowing down construction at the Path2Zero growth project in 2025,' the province said, adding the the project is very important for Alberta and the economy. 2:07 Alberta group eyes area north of Edmonton as kick-off point for clean energy industry Last May, Canadian Utilities Ltd., a subsidiary of Calgary-based holding company ATCO Ltd., announced plans to build a new, $2-billion pipeline to supply natural gas to the Path2Zero facility. The project was to be the largest-ever energy infrastructure project by an ATCO Energy Systems company. Story continues below advertisement The new pipeline, called Yellowhead Mainline, will be around 200 km long and will run from the hamlet of Peers in west-central Alberta to the northeast Edmonton area. It was expected to have the capacity to deliver one billion cubic feet per day of natural gas. Construction on the new pipeline was expected to begin in 2026, Canadian Utilities said, with the aim to be operational in the fourth quarter of 2027. Global News has reached out to ATCO to find out if Dow's decision to halt construction will also affect the Yellowhead Mainline. This story will be updated if a response is received. — with files from Amanda Stephenson and Bill Graveland, The Canadian Press
