Trinseo, a global materials company and manufacturer of plastics and latex binders, expects that the net income from continuing operations of $1 million to $3 million and Adjusted EBITDA of $129 million to $135 million for its fourth quarter 2021 financial results.

Net income from continuing operations and Adjusted EBITDA estimates include a pre-tax favorable net timing impact of $7 million from increasing costs of raw materials.

In comparison to the company’s guidance midpoint, the quarter’s operational results include a negative pre-tax impact of approximately $30 million from an extremely sharp rise in European natural gas prices during the latter part of the quarter as well as a negative pre-tax impact of approximately $20 million from lost styrene production at its Terneuzen styrene monomer site caused by an upstream force majeure.

“While we implemented pricing actions in the fourth quarter, these were unable to keep pace with the unprecedented rise in natural gas prices that occurred late in the quarter. Despite this and the Terneuzen outage, we were still able to generate significant cash and returns to shareholders during the fourth quarter, while continuing on our path of transformation via the completion of our sale of the Synthetic Rubber business and the acquisition of plastics recycler Heathland,” said Frank Bozich, Trinseo’s President and Chief Executive Officer.

The Company also announced that it expects full year 2022 net income from continuing operations of between $294 million and $332 million and Adjusted EBITDA of between $700 million and $750 million.

Bozich continued, “In the first quarter we are seeing continued strong end-market demand and significantly lower European natural gas prices. While we expect the Terneuzen styrene monomer outage to persist into February, we anticipate a much lower financial impact from this in comparison to the fourth quarter. These factors, combined with the pricing actions we’ve already taken, give us confidence in a strong first quarter to start 2022.”