Global manufacturer and marketer of differentiated chemicals, Huntsman Corporation has said that fall in crude oil prices will prove to be beneficial to Huntsman over the long term.
In a statement, Huntsman CEO Peter Huntsman said, “In an environment where oil prices are sustainably low, Huntsman Corporation will emphatically be a beneficiary over the long term, since many of our raw materials are derived from the oil refining process.”
Peter Huntsman issued this statement in response to inquiries regarding the business impact of lower priced oil on Huntsman, as crude oil prices have declined from US $112 per barrel in June 2014 to $50 now.
He added, “We expect our margins to improve as the cost of our raw materials decrease and also expect a meaningful working capital release, which will help strengthen our balance sheet.”
“Lower priced oil should provide more discretionary spending for consumers; approximately one third of our business is consumer oriented,” he informed.
Since Huntsman has a number of growth projects underway, it expects its business to improve throughout 2015.
Huntsman Corporation posted 2013 revenues of approximately $13 billion including the acquisition of Rockwood’s performance additives and TiO2 businesses.
It operates more than 100 manufacturing and R&D facilities in more than 30 countries and employs approximately 15,000 associates within its five distinct business divisions. (AR)
Fibre2fashion News Desk - India