Oil & Gas Market Recovery and Performance Update
COVID-19 impact clear on shale, but remaining I&W
business areas continue to be resilient short and long-term
Municipal
Water
Treatment
Industrial
Water
Treatment
SHORT TERM IMPACT
OF COVID-19
Marginal drop in volumes due to lower activity mainly
in the hospitality industry
Temporarily lower industrial activity has decreased
chemical demand by 5-10%
LONG TERM IMPACT
OF COVID-19
Oil Sands
Tailings
Treatment
Volumes lower than expected for Kemira's end
market, expected to recover in 2021
EXPECTED CAGR
2020-2026*
Expected to grow with around GDP
No changes to previous views
3-4%
Expected to recover with economy and continue to
grow with around GDP
3-4%
No changes to previous views
No impact on the long-term tailings treatment
demand
8-9%
Chemically
Enhanced
Oil Recovery
(CEOR)
Shale
Oil & Gas
No impact on active projects and projects in planning
phase
Projects long-term in nature, project breaks
are expensive
Sharp drop in fracking activity leading to -70% of
Friction Reducer demand for 2020 compared to 2019
Market bottom in Q2 followed by modest sequential
pick-up during Q3
No impact expected
Industry expected to recover gradually by 2025
Shale role in future global oil supply to be confirmed
Kemira
APRIL 27, 2021
INVESTOR PRESENTATION
-15%
15-20%
*Kemira estimates
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