[FEBRUARY 2023] What’s up with the Chemical Industry!

Hi there guys!

As promised, I’ll be sending you a monthly e-mail to summarize all relevant News in the Chemical Engineering World! I hope you like this take on chemical engineering news, content, courses, professional advise and more tips!

In the meantime, I’ll be structuring these newsletters as follows… if you have any recommendation, please reply to this e-mail and let me know! I’m exploring so I’m very open for adding/removing content to this monthly newsletter.

  • Chemical Industry News
  • Chemical Industry Stocks & Markets
  • What’s up with Social Media Trends
  • Product of the Month

Chemical Industry News

This is what you may have missed from the Chemical Industry!

Short News

  • Ohio train derailment raises more questions Scientists and residents ask about the testing behind official assurances.(Read More)
  • BASF is cutting back at its main site in Germany. The company says high energy prices are forcing it to shut plants at its Ludwigshafen complex. (Read More)

  • As you may know, I’m a great fan of BP’s Energy Review Report, and this is important: Energy Institute takes over BP’s Statistical Review of World Energy (Read More)
  • Carbon Removal from Oceans: MIT Breakthrough: How To Efficiently Remove Carbon Dioxide From the Ocean. (Read More)
  • Important: New energy and net zero department created as BEIS dissolved. (Read More)

Chemical Industry Stocks & Markets

[DISCLAIMER: This is NOT a financial recommendation. All investment and financial decisions you make, should be done with a certified professional . This is just for informational purposes]

As you may have seen already, the Markets are still low, and it doesn’t seem to see the end of the tunnel. Make no worries, as with any economic drawback, ther will be a time in which the market will recover eventually. For now, I wanted to pay extra attention to the following:

ETF worth checking out (containing Air Products Only)

  • IYM iShares U.S. Basic Materials ETF with yty earnings of 7.42%
  • UYM ProShares Ultra Basic Materials with yty earnings of 5.82%
  • VAW Vanguard Materials ETF with yty 5.69%

Raw materials and Basic Chemicals are a good place to “hide” while inflation is hitting high rates.

Chemical Company Stocks

  • BASF (OTCQX:BASFY) has a P/E of 9.4, strong fundamentals and a wide moat, eing the largest chemical company in the world.
    • BASF pays a big dividend, which it has increased regularly, and has a stellar dividend track record.
    • The current geopolitical turmoil in Europe persists, but gas prices have dropped significantly, making BASF more competitive again.
    • The DCF analysis shows a slight undervaluation for BASF.
    • This, combined with the strong fundamentals, the attractive valuation and gas prices dropping, make it a solid ‘Buy’.
    • Continue reading: Read Article & this one
  • BAYER: The Roundup acquisition has cost Bayer AG billions in lawsuits;
    • however, this seems to be coming to an end as the company has been winning most cases recently.
    • Bayer boasts a strong and improving balance sheet with a P/B ratio of just 1.26 and IP with a strong moat.
    • Furthermore, earnings and free cash flow are rising.
    • The DCF analysis shows that a conservative intrinsic value for BAYZF stock is in the region of €66.
    • Bayer is a classic turnaround story in the making and receives a ‘Buy’ rating.
    • Continue reading: (Read more)

  • EVONIK: Evonik Is Significantly Undervalued With A Double-Digit Potential Upside. Read more
  • EASTMAN: Eastman Chemical’s Huge Cash Flows And Buyback Support Much Higher Stock Price Read more

About Social Media

This is a curated list of the most relevant content (video, blog, newsletter, twit, etc.) related to the chemical industry. I think they are quite worth checking out:

  • e-mail (Newsletter): For sure TheColumn‘s newsletter is a must for any ChemE! Go check it out!
  • YouTube: Fracking for Clean Energy (wait, what?). A great intro to Fracking, Geothermal Energy and more!
  • Instagram: Hank Green‘s content is just great, its all about science and the little details as well as fun facts!
  • TikTok: Check out my account, I’ve set a challenge (Post 1 tiktok video a day). Lots of meme and some engineering content!
  • Twitter: If you are into Chemical news via TT, the Chemical Journal may be a great fit for you!

Product of the Month

 This month we explore the Oil & Gas Bundle, which includes a quick Review of the Oil & Gas Industry, Energy Trends for 2023, Petroleum Refining and Petrochemicals Industry.

Final thoughts

The disruption of 2020-2022 has formed a stage for the coming transformation for the chemical industry.

It has become critical for companies to address supply chain vulnerabilities, even while addressing the imperative for decarbonization and circularity.

Chemical companies in the United States have emerged from 2022 well positioned to take advantage of these changes by using their strong balance sheets and financial discipline. They have the means to adjust their portfolios, retool their supply chains, and anticipate evolving customer preferences in the coming year.

The decisions taken by these companies in 2023 could set the pace for this systemic change which would be great to see how it develops, especially as a young Chemical Engineer!

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That will be it guys! I hope you enjoyed this quick summary of Deloitte’s Report.

Is there anything in especial that you liked the most? or Maybe you are not quite into the new trends? Let me know in the comments or via e-mail!

Enroll for More News & Trends!​