Rain Industries spurts after US subsidiary resumes CPC operations

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Rain Industries soared over 6% after the company said its US-based subsidiary, Rain Carbon, has resumed calcined petroleum coke (CPC) production at three of its US facilities. The company is a vertically integrated global producer of a diversified portfolio of products that are essential raw materials. It operates in three business segments: Carbon, Advanced Materials and Cement. The scrip traded 6.15% higher at Rs 243.50 at around 10.15 am (IST). On the other hand, the benchmark BSE Sensex was down 75 points, or 0.13%, at 58,174 at around the same time.

“The restart process has begun at a fourth plant that was impacted by Hurricane Ida, which hit the Gulf Coast on August 29,” the company said in a statement.

Gerry Sweeney, president of Rain Carbon, said, “I am pleased to report that the Chalmette and Gramercy plants in Louisiana are again producing CPC and their terminals have also returned to operation. The company’s Purvis calcination plant in Mississippi was unaffected other than a short outage while the category 4 storm passed. Our fourth calcination facility that went offline due to the hurricane – the Norco plant in Louisiana – has begun the heat-up process, and we expect to resume CPC production there in the coming days.”

“Given the widespread flooding and wind damage, the company is closely monitoring refinery restart plans and their ability to resume the supply of green petroleum coke feedstock. We are also tracking navigation issues associated with the waterways that could impact barge shipments of raw materials to our calcination facilities or CPC deliveries to our customers – and we are working closely with our customers to minimize any impacts to them,” Sweeney added.

Rain Industries’ consolidated net profit surged 672.4% to Rs 265.80 crore on a 54.3% jump in net sales to Rs 3,643.47 crore in Q1 June 2021 over Q1 June 2020.