Olin Corp. sees Q2 adjusted EBITDA reduced by approximately $45M
Olin Corporation announced an updated outlook for the second quarter 2017. Olin's second quarter adjusted EBITDA will be reduced by approximately $45M due to the combined impact from an extended vinyl chloride monomer (VCM) plant turnaround and an unplanned Bisphenol A plant outage. For full year 2017, Olin is reiterating the annual adjusted EBITDA forecast of $1B with upside opportunities and downside risks of approximately 5%. During the second quarter, the planned VCM plant 40-day maintenance turnaround at the Freeport, Texas facility required an extension of approximately four weeks. This maintenance turnaround is performed once every three years. In addition, the Bisphenol A plant at the Freeport epoxy facility experienced an unplanned outage. This epoxy outage lasted approximately three weeks. Both the VCM plant and the Bisphenol A plant have returned to normal operations. Olin expects second half 2017 adjusted EBITDA to be significantly higher than the first half 2017 levels. The second half 2017 adjusted EBITDA is forecast to benefit from reduced maintenance turnaround activity compared to the first half levels. This benefit is expected to be approximately $90M-$100M. The Chlor Alkali Products and Vinyls business is forecast to benefit in second half 2017 from seasonally stronger demand, improved caustic soda and chlorine prices and lower ethylene costs. The second half 2017 Epoxy results are expected to benefit from lower raw material costs than were experienced in the first half 2017. In the second half 2017, Winchester will benefit from the seasonally strong third quarter commercial ammunition demand and an expected improvement in military sales.