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Celanese (CE) Offers Low-Carbon Products Under DOE Program

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Celanese Corporation (CE - Free Report) stated that the U.S. Department of Energy ("DOE")'s Office of Fossil Energy and Carbon Management has approved it as a Utilization Procurement Grants (UP Grants) vendor. Celanese is currently the only producer of low-carbon acetic acid under the ECO-CC product name, enabling the company to assist municipalities in meeting the growing need for more sustainable and circular solutions.

As the U.S. economy transitions to a lower carbon future, the DOE is working with states, local governments, public utilities and agencies to purchase commercial or industrial products obtained from anthropogenic carbon emissions.

Celanese low carbon acetic acid, using the ECO-CC product name, is made utilizing carbon capture and utilization (CCU) technology. These product offerings have shown significant net reductions in life cycle greenhouse gas emissions and have passed a rigorous DOE examination of their life cycle analyses. As a UP Grants vendor, Celanese has already begun collaborating with value-chain partners to expand product utilization prospects to eligible U.S. government institutions around the country.

ECO-CC solutions are particularly positioned to help UP Grants qualifying companies lower their carbon footprint in applications such as waste-water treatment, de-icing, fertilizer and interior painting, among others. By using recycled CO2 as a raw material, CE unlocks the opportunities to offer lower carbon footprint options with carbon capture content across more than 90% of its Acetyl Chain product offerings.

Shares of Celanese have gained 24.2% over the past year compared with 17.8% rise of its industry.

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Celanese, on its third-quarter call, said that it expects adjusted earnings in the range of $2.10-$2.50 per share for the fourth quarter of 2023. The projection includes the expected roughly 30 cents impact from the M&M amortization. For the full year, Celanese anticipates adjusted earnings at the bottom end of its guidance of $9-$10, which includes approximately $1.20 per share of M&M transaction amortization.

Zacks Rank & Other Key Picks

Celanese currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include United States Steel Corporation (X - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Alpha Metallurgical Resources Inc. (AMR - Free Report) .

United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 61.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 26.4% in the past year.

The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1.  AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 135.8% in a year.

 

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