US chemical producer OxyChem is maintaining expectations for demand growth in its key sectors this year and remains committed to its profit guidance despite various market challenges.
OxyChem during its first quarter earnings call today said its full-year profit guidance is $900mn-$1bn, roughly in line with the $1bn midpoint guidance for 2025 it expected during its 2024 fourth quarter earnings call.
The company said the performance of its chemical sector exceeded expectations for the first quarter, although winter weather disrupted production and stoked higher operating costs during the three-month period. Sales revenue totaled $1.19bn in the first quarter, less than 1pc higher than a year earlier.
The company expects domestic polyvinyl chloride (PVC) consumption to grow by 4-5pc in 2025 from last year, while higher costs associated with first quarter disruptions were now over.
But the company added there is still uncertainty around how demand, costs, and prices will overlap during the months ahead.
Challenges to PVC prices persist because of China's increasing dominance in the global market. China's global PVC market share grew from virtually nothing in 2020 to roughly 30pc in 2024 as producers sold overbuilt domestic supply, OxyChem said.
China's increased presence in the export market weighed on global PVC export prices, which eventually pressured domestic US contract prices, the company added. OxyChem anticipates caustic soda demand will mirror last year, but recent expansions in the wider industry could pressure prices.
OxyChem reported a $185mn profit for the first quarter, 27pc lower than the same quarter a year earlier despite higher sales revenue.
