Our aim is to bring Creative Energy to Important Issues, and create value for clients in business/functional leadership roles, by personally assisting them to develop and implement robust strategies that deliver sustainable profit
Chemical Market Analysis
Market analysis. We provide detailed analysis of petrochemical markets, including price forecasts, for major companies and international banks. This analysis is supported by our comprehensive database of plant capacities and new projects, and our historical pricing database which goes back to the 1970s. Our aim is to help clients to better understand and manage the commercial and financial risks created by today’s more volatile markets. ‘You did a first-rate job, and your conclusions were well received by our Board.’ Head of Procurement.
Strategic advice. We assist companies to develop and implement robust strategies for sustained success:
- We advised a leading Asian company on their strategic options for the future development of their petchem business. This included an in-depth assessment of their current business, and relative competitive position, as well as a detailed implementation plan for future growth. ‘We are grateful for your expertise’, VP, Business Development.
- We acted as commercial advisers for two major petchem and refining/petchem projects in the Middle East. Our role covered all aspects of the projects, including feedstock selection, plant configuration and operations, through to product marketing and sales. ‘We relied on your active participation and guidance’ CEO.
- We developed an innovative procurement strategy, based on likely changes in supply/demand balances for the major petrochemical products, and assisted with its successful implementation. ‘Your involvement identified valuable short-term opportunities for us, within a robust longer-term framework.’ Purchasing Director.
Feedstocks for Profit. This Study provided a comprehensive analysis of the outlook for the global petrochemical industry to 2020. It included three Scenarios for companies to use when assessing the outlook, including a Base Case, Boom Returns, and Global Downturn.
Pricing for Profit. We published an influential multi-client Study analysing the likely impact of a high oil price environment on the major petchem products, and proposing strategies to enable pricing to become a core competence.
‘Financial Times’ global pension fund investment strategy competition. We won an Individual prize (against entries from pension funds managing £3.5 trillion of assets), setting out new ideas to help fund managers actively assist company managements to build earnings for the future, and move away from purely financial monitoring. IeC showed ‘clear professional understanding and definition of how investment activity can reward responsible and reduce irresponsible corporate behaviour’. Judges’ comments
Conferences. We run a very successful series of Conferences each year with ICIS, covering key challenges facing the chemical industry. The Global Conference takes place in November. ‘Topics and lengths of speeches, speakers and organisation very good’, TOTAL Petrochemicals. ‘The overall conference was a fantastic seminar, it also provided good opportunities for meeting people’, Galp.
Some examples of where we have been active:
Major global company. We led a successful £400m business restructuring. This involved undertaking detailed industry/market analysis to develop a series of strategic options, gaining approval for the preferred option to be taken forward, and participating in the negotiations that then took place to implement it. The process resulted in a 22% jump in the company’s share price on the day that the restructuring agreement was announced.
Major global company. We undertook a programme of work to enable a company to renegotiate a loss-making major contract, which they had inherited as part of an acquisition. This was a multi-year contract, with an annual value of over $250m. Our market knowledge, and industry expertise, enabled us to propose a novel way forward. This was then successfully negotiated and implemented, providing our client with a major financial benefit for the rest of the contract period.
Specialties company. We developed a strategy to restructure a loss-making €50m business, which had production facilities in Europe, N America and Asia. This involved making a number of major operational changes, as well as changing the product portfolio and commercial strategy. The business was successfully turned round from an €8m loss to a €10m profit, and maintained this improvement during the next downturn.
New opportunities: ChemConnect. We launched this innovative online trading platform in Europe and raised $27m from BP, BASF, Bayer, Borealis, DSM, EniChem, ICI and Repsol to support its growth. ChemConnect was later acquired by the Intercontinental Exchange.