Synthomer sees 110% earnings jump over 2020

LONDON—Synthomer P.L.C. has seen a 110-percent year-on-year jump in earnings to $680 million (£522 million) in 2021, greatly boosted by its performance elastomers business unit.

Group sales rose 47 percent to $3 billion during the period, helped by "exceptional COVID demand" in the nitrile butadiene rubber latex market, said Synthomer in a March 3 statement.

Performance elastomers' earnings rose 137 percent to $416 million, with record performance from NBR latex unit and improving styrene butadiene rubber (SBR) latex market.

Synthomer said that its NBR latex volumes reached record level in the first half of the year, which was followed by "a softer second half."

The company expects to complete its 60-kiloton-per-annum (ktpa) expansion in Malaysia in the first quarter of 2022.

In addition, the construction of the new 200 ktpa NBR latex plant in Asia is set to be completed by 2024.

In terms of outlook, the London group said NBR latex margins have normalized to pre-COVID-19 levels, and the company does not expect any "pandemic premium" this year.

Year-to-date, Synthomer added, NBR latex demand remains subdued due to "high inventory levels of medical gloves and reduced demand."

However, the group expects trading conditions in NBR latex to normalize by the end of the first half of the year with market growth returning to 2019 levels in the second half.

With regards to the ongoing conflict in eastern Europe, the group said it had "very limited exposure" to Russia and Ukraine, with both countries accounting for less than 1 percent of group revenue.

"We continue to carefully monitor the situation and its potential implications on our business," it said.