Danimer Scientific (DNMR) Expands Partnership With CPChem
Danimer Scientific, Inc. DNMR has announced that it is extending its partnership with Chevron Phillips Chemical ("CPChem") to explore several high-volume polymer applications using Rinnovo materials.
CPChem provides polymers and petrochemical products employed in manufacturing processes around the world. It is owned by Chevron Corporation CVX and Phillips 66 PSX. It was established in July 2000 by merging the chemicals operations of Chevron and Phillips.
Danimer Scientific and CPChem previously announced a collaboration in which Danimer Scientific was evaluating the use of CPChem's loop slurry reactor design to establish a continuous reactor system in the Rinnovo production process. This time, the companies intend to explore the development and commercialization of Rinnovo-based cast extrusion films, blown extrusion films, injection molded parts, and rotational molded parts.
Rinnovo is a polyhydroxyalkanoate synthesized from lactones utilizing Danimer Scientific's unique Novo22 catalyst technology. It can be used in the production of biodegradable alternatives to standard plastics.
Opened in 1950, CPChem’s Research and Technology lab in Bartlesville contains first-class research equipment, allowing for the rapid testing of products across various processing conditions. This collaboration will accelerate the adoption of Rinnovo materials in high-volume applications, lowering the cost to serve the key markets.
Danimer Scientific is committed to developing more sustainable, natural methods of producing plastic products. This collaboration is in line with that commitment.
The company reported an adjusted loss of 38 cents per share in the second quarter of 2023, wider than the Zacks Consensus Estimate of a loss of 36 cents. It reported an adjusted loss of 30 cents per share in the prior-year quarter. Danimer Scientific posted revenues of $12.87 million for the quarter ended June 2023.
Price Performance
Shares of Danimer Scientific have lost 47.9% in the past year against the industry's growth of 16%.
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Zacks Rank & Another Stock to Consider
Danimer Scientific currently carries a Zacks Rank #2 (Buy).
Another top-ranked stock from the Industrial Products sector is Caterpillar Inc. CAT. CAT sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved north by 11.4% in the past 60 days. Its shares gained 51.6% in the last year.
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