Grace expects $8 mn earnings impact from Middle East feedstock disruption

Grace expects $8 mn earnings impact from Middle East feedstock disruption

7:27 AM, 9th October 2019
W.R. Grace & Co logo

COLUMBIA, US: W.R. Grace & Co commented on earnings effect of the temporary feedstock disruptions due to attacks on oil and gas production facilities in the Middle East. The company said that its fourth quarter and full-year 2019 outcome was impacted from this incident.

The company expects order cancellations and order delays resulting in an impact between $7 - $8 million on Q4 and full-year 2019 earnings., also adding that it does not expect this to have any impact to third quarter earnings.

“Following the September attacks, certain of our petrochemical and refining customers experienced reduced feedstock supply and temporarily reduced their operating rates and catalyst usage,” said Hudson La Force, Grace’s President and CEO

“Over the past two weeks, we have worked diligently with our customers to determine the immediate and ongoing impact of the incident on their operations. Based on information available to us at this time, including discussions with customers and the public statements of officials in the region, we expect some impact to sales and earnings in the fourth quarter, but we are confident this impact will be temporary. Importantly, the underlying fundamentals of our business in the region remain positive,” added La Force.

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