Latest news with #SebastianBray
Business Insider
a day ago
- Business
- Business Insider
Berenberg Bank Sticks to Its Hold Rating for Clariant AG (CLZNF)
Berenberg Bank analyst Sebastian Bray maintained a Hold rating on Clariant AG (CLZNF – Research Report) yesterday and set a price target of CHF9.00. The company's shares closed last Monday at $10.99. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Bray is an analyst with an average return of -0.7% and a 51.94% success rate. Bray covers the Basic Materials sector, focusing on stocks such as BASF SE, BASF SE, and Wacker Chemie AG. In addition to Berenberg Bank, Clariant AG also received a Hold from Morgan Stanley's Jonathan Chung in a report issued yesterday. However, on June 23, Kepler Capital maintained a Buy rating on Clariant AG (Other OTC: CLZNF). The company has a one-year high of $17.90 and a one-year low of $8.60. Currently, Clariant AG has an average volume of 3,905.
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Business Standard
12-05-2025
- Business
- Business Standard
Chemical giants weigh Europe exits amid soaring energy costs, Asian rivals
Several leading chemical manufacturers are reviewing their European operations and putting assets up for sale, as they grapple with high energy prices and intensifying global competition from modern facilities in Asia and West Asia, The Financial Times reported. Saudi chemical major Sabic is currently exploring strategic options for its European petrochemicals business, working with investment banks Lazard and Goldman Sachs, the news report said. The business, which is estimated to generate approximately $3 billion in annual revenue and around $250 million in Ebitda, could be sold, though no final decision has been made. Other industry leaders — including Dow, LyondellBasell, Shell and BP — are also considering divestitures or restructuring moves in the region as part of broader portfolio reviews. War-driven energy costs The shift comes in response to persistently high energy costs in Europe, aggravated by the fallout from Russia's invasion of Ukraine in 2022. At the same time, global chemical production capacity is expanding in regions with lower energy and feedstock costs. 'There's a lot of additional supply planned in geographies such as China and West Asia. Some management teams are looking at older European assets and thinking 'we are not so sure we can compete',' said Sebastian Bray, head of chemicals research at investment bank Berenberg, as quoted by the report. 'What was the decisive factor that made companies consider an exit from their assets? It was higher energy costs,' Bray added. Industry body warns of declining competitiveness The European Chemical Industry Council (Cefic) highlighted the severity of the situation earlier this year, noting that more than 11 million tonnes of production capacity had been earmarked for closure across 21 sites over the past two years. With gas prices still four to five times higher in Europe than in the US, Cefic has warned that the continent's chemical sector is 'under pressure' and has called for urgent intervention from EU authorities. Dow, LyondellBasell, Shell join strategic review wave Dow announced in October last year that it would initiate a strategic review of select European assets, particularly within its Polyurethanes business. 'Europe's regulatory environment has led to increasing challenges across many sectors and value chains,' said Dow CEO and chair Jim Fitterling during the company's third-quarter earnings call. In May last year, LyondellBasell also confirmed it was assessing the future of some of its European operations, following a similar rationale. Chemicals giant Ineos, led by Sir Jim Ratcliffe, has warned of the UK chemical industry's decline amid rising energy costs and green levies. 'We are witnessing the extinction of one of our major industries,' Ratcliffe told The Financial Times. In March, Ineos sold its composites unit to KPS Capital Partners for €1.7 billion, covering 17 global sites. Moves to secure alternative energy sources In pursuit of more reliable and affordable energy supplies, Ineos also signed an eight-year agreement last week with Covestro to source gas from the US, reflecting a broader trend among European players. 'A lot of people are looking at where things are and saying we've got some inefficient plants in Europe or isolated plants and they're trying to find a home for those,' said Alasdair Nisbet, chief executive of chemicals advisory firm Natrium Capital. 'You're seeing a rethinking of what is competitive.' Europe's energy crisis after Ukraine invasion The Russian invasion of Ukraine in February 2022 fundamentally disrupted Europe's energy landscape, triggering a sharp and sustained rise in energy prices across the continent. Prior to the war, Europe was heavily dependent on Russian energy, importing about 40 per cent of its natural gas and significant shares of oil and coal from Russia. The conflict and subsequent sanctions led to a dramatic reduction in Russian energy imports, with the share of Russian pipeline gas in EU imports dropping from over 50 per cent in 2021 to just 8 per cent by 2023, according to the European Council. This sudden loss of a primary supplier caused energy prices to soar. In the immediate aftermath, natural gas prices in Europe reached record highs, with the price of gas rising by 180 per cent and electricity prices for households in EU capitals increasing by 36 per cent between January 2021 and January 2025, Euronews reported. Although governments introduced measures to cushion the impact, prices remained elevated, aggravating the cost-of-living crisis and straining European industries. Efforts to diversify energy sources and accelerate the transition to renewables have helped stabilise prices somewhat, but costs remain above pre-war levels. The EU is now committed to ending its dependency on Russian energy entirely by 2027, but this transition poses significant challenges, including the risk of new dependencies and continued volatility in global energy markets, The Kyiv Independent reported.
