Honeywell

Electrical
12900
NYSE:HON
USA
Honeywell

Iranian oil, gas, petrochemical and power industries services company Petrokalooj cites Honeywell as a supplier on its website.

--

According to its Annual report filed with the SEC for fiscal year 2018: "Following our completion of the wind-down activities authorized by OFAC after the United States’ withdrawal from the Joint Comprehensive Plan of Action, we have now ceased doing business in Iran."

--

"Honeywell has booked around $115 million of revenues from Iran through its non-U. S. subsidiaries since the beginning of 2016, largely in the past year, according to regulatory filings. Unless Honeywell is able to fulfill $100 million in current contracts by early November, it could lose future potential revenue, given that the firm indicated in its SEC disclosures that those contracts aren’t yet completed. U.S.-based Honeywell spokeswoman Victoria Streitfeld said the company and its non-U. S. subsidiaries “operate within the parameters of all applicable U.S. and international regulations and will continue to do so.”" (5/31/2018).

--

In the fiscal year ended December 31, 2017, the non-U.S. subsidiaries of our UOP business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:
 

  • Delivered services to Iranian counterparties pursuant to new and existing contracts, which resulted in revenue of approximately $54.2 million (expected total value of these contracts is approximately $81.2 million).
  • Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new and existing contracts, which resulted in revenue of approximately $1.8 million (expected total value of these contracts is approximately $3.5 million).
  • In the fiscal year ended December 31, 2017, the non-U.S. subsidiaries of our Process Solutions business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:
  • Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new contracts, which resulted in revenue of approximately $1.4 million (expected total value of these contracts is approximately $6.9 million).
  • Sold approximately $0.4 million of non-U.S. origin products to distributors (including an Iranian distributor) for use in the gas distribution sector in Iran.  

--

In 2017 the U.S. state of California identified Honeywell as a company under review for potentially having subsidiaries that have contracted to sell gas meters and absorbents for end use in the Iranian petrochemical industry.

--

In 2017 the U.S. state of Michigan listed Honeywell on its Iran restricted companies list rendering Honeywell ineligible for investment and/or state contracting.

--

According to its Annual Report filed with the SEC for fiscal year 2017: "In the fiscal year ended December 31, 2017, the non-U.S. subsidiaries of our UOP business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:    

  • Delivered services to Iranian counterparties pursuant to new and existing contracts, which resulted in revenue of approximately $54.2 million (expected total value of these contracts is approximately $81.2 million).
  • Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new and existing contracts, which resulted in revenue of approximately $1.8 million (expected total value of these contracts is approximately $3.5 million).
  • In the fiscal year ended December 31, 2017, the non-U.S. subsidiaries of our Process Solutions business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:  
  • Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new contracts, which resulted in revenue of approximately $1.4 million (expected total value of these contracts is approximately $6.9 million).
  • Sold approximately $0.4 million of non-U.S. origin products to distributors (including an Iranian distributor) for use in the gas distribution sector in Iran.

We intend to continue doing business in Iran under General Licenses H and I or under a specific license issued by OFAC, and otherwise in compliance with all applicable laws. Such activities may require additional disclosure pursuant to Section 13(r) of the Act."

--

"A new round of talks between Iran and UOP LLC Petroleum industry company of America has kicked off over investment and supply of new technologies. Association of Petrochemical Industry Corporations (APIC) announced that a fresh round of negotiations has begun between Iran’s petrochemical officials and three major American and European petrochemical companies with the main axes of talks being construction of new polymer units, knowledge and technology transfer as well as issuance of license for new petchem plans. On the sidelines of K Trade Fair 2016, the world's premier fair for the plastics and rubber industry in Germany, high ranking officials of Iran’s petrochemical industry held meetings with authorities of France’s Total and Air Liquide as well as America’s UOP, formerly known as Universal Oil Products." (Mehr News, "US petchem giant ready to return to Iran," 10/24/2016).

--

According to its Annual Report filed with the SEC for fiscal year 2016: "In the three months ended December 31, 2016, the UOP business, part of Performance Materials and Technologies, engaged in the following activities related to Iran’s oil, gas and/or petrochemical sectors:

  • Settled outstanding claims with Iranian counterparties under contracts originally entered into in compliance with then-applicable sanctions laws. Revenue in the three months ended December 31, 2016 from these settlements was approximately $28.6 million.
  • Delivered services to Iranian counterparties pursuant to new and existing contracts, which resulted in revenue of approximately $1.3 million in the three months ended December 31, 2016, (expected total value of these contracts is approximately $4.2 million).
  • Sold non-U.S. origin products to non-U.S. third-parties for end-use in Iran pursuant to new and existing contracts, which resulted in revenue of approximately $0.1 million in the three months ended December 31, 2016 (expected total value of these contracts is approximately $0.9 million).

In the three months ended December 31, 2016, the Process Solutions business, part of Performance Materials and Technologies, sold approximately $1.7 million of non-U.S. origin products to distributors (including an Iranian distributor) for use in the gas distribution sector in Iran.

In the three months ended December 31, 2016, the Industrial Safety business, part of Safety and Productivity Solutions, sold approximately $0.1 million of non-U.S. origin products to a non-U.S. distributor for use in the oil sector in Iran.

In addition to the activities described above, we previously disclosed in our periodic reports activities, transactions or dealings relating to Iran occurring in the first, second and third quarters of 2016. Our non-U.S. subsidiaries intend to continue doing business in Iran under General License H in compliance with all applicable laws, which sales may require additional disclosure pursuant to Section 13(r) of the Act."

--

According to its Annual Report filed with the SEC for fiscal year 2015: "A non-U.S. wholly-owned subsidiary of Honeywell (the Non-U.S. Subsidiary) inadvertently made four ground shipments of low value, non-U.S. items from Turkey to Uzbekistan from December 2013 to 
March 2014 that transited through Iran en route to Uzbekistan on trucks operated by a third party transportation vendor (the Vendor) retained by the Non-U.S. Subsidiary. The Non-U.S. Subsidiary hired the Vendor to facilitate shipment and the Vendor further engaged a trucking company to provide surface transport. The Vendor proposed the transport route for the shipment. The shipment of the items via Iran occurred inadvertently as a result of non-U.S. person employees approving the transport route proposed by the Vendor. Honeywell disclosed these past transactions voluntarily to the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).

The Non-U.S. Subsidiary did not pay, directly or indirectly, any duties or taxes to the Government of Iran as a result of these shipments because the shipments were made under TIR (Transports Internationaux Routiers) Carnets, a treaty system which allows for the transport of merchandise through contracting parties from the customs office of departure to the customs office of destination without payment of customs duties/taxes in transiting countries. Further, the Non-U.S. Subsidiary made all payments for shipping services to the Vendor on a flat-fee basis at a rate of $11,800 per shipment, and the Non- U.S. Subsidiary did not reimburse the Vendor for any fees or other expenses incurred in Iran."

--

“U.S. company, UOP, has not delivered a special catalyst to Iran's Isfahan Refinery under pressures as a result of sanctions imposed on Iran's oil sector. Abbas Kazemi, Managing director of National Iranian Oil Refining and Distribution Company, said that Iranian producers have been participating to produce the catalyst inside the country, Iran's Mehr news agency reported on May 20. The catalyst will be used in producing high-quality gasoline by the refinery, he noted…According to media reports, currently, some 6,000 tons of the catalysts is being used in the country per year. Iran imports some $2 billion worth of catalysts, additives, and equipment from European and Asian countries annually.” (Trend, “U.S. company shuns selling catalyst to Iranian refinery,” 5/20/14)

--

According to its Annual report filed with the SEC for fiscal year 2012: "The Company and its subsidiaries have a current policy not to conduct business with Iran." 

--

"Shell and UOP LLC, a unit of U.S.-based Honeywell International Inc., were among the companies named in the report published today by the state-run news agency." (Bloomberg, "Shell, UOP Among Companies Put on Blacklist by Iran, Mehr Says," 1/6/2012)

--

"A pressure group, United Against Nuclear Iran (UANI), is urging industrial conglomerate Honeywell International Inc to stop selling security technology to Iran, the group said on Thursday.


Honeywell security products can be used for surveillance of oil pipelines and nuclear reactors, UANI said in a letter faxed to Honeywell it provided exclusively to Reuters.

The sale of security technology, via a British subsidiary, violates company guidelines for business conduct, UANI said, adding it may sue or pressure the New York Stock Exchange to delist Honeywell if the company continues operations in Iran.

In response, Honeywell said it made a commitment not to undertake new projects in Iran, but is fulfilling its contractual obligations in accordance with U.S. and EU laws and regulations.

'Should the U.S. Congress pass a law that prohibits subsidiaries of U.S. companies from doing business in Iran, Honeywell will comply fully as it does with all other laws in the countries in which it operates,' the company said in a statement.

Honeywell shares were up 0.5 percent at $45.49 in afternoon trading on the New York Stock Exchange.

TARGETING IRAN'S OIL INDUSTRY

New York-based UANI has pressured industrial companies to stop serving Iran's energy sector. The group has said Ingersoll-Rand Plc, General Electric Co, Huntsman Corp and Caterpillar Inc have agreed to sever ties with Iran.

'In the face of overwhelming bipartisan support in the U.S. Congress to economically isolate Iran's oil and natural gas industry, Honeywell continues to make key contributions to the development of Iran's oil industry,' UANI President Mark Wallace said in a letter to Honeywell Chairman and CEO David Cote.

UANI said Honeywell regulatory filings have provided "zero disclosure" about dealings with Iran.

The group's website lists 200 companies targeted over their dealings with Iran, which it argues is developing a secret nuclear weapon and sponsors terrorism.

Its list includes names such as Royal-Dutch Shell Plc, Hewlett-Packard Co, Advanced Micro Devices Inc and Coca-Cola Co. (Reuters, "
U.S. Group Targets Honeywell Over Iran," 4/8/10)

--

"Honeywell acquired 100 percent ownership of Universal Oil Products (UOP), based in Des Plaines, Ill., in 2005. UOP has a British subsidiary that conducts business in Iran; it is part of a consortium with Axens, Technip, Sinopec Engineering Inc. and several Iranian firms that is expanding and upgrading the Arak Refinery in Iran. The project, budgeted to cost $3.7 billion, could nearly triple gasoline production, from 34,000 to 100,000 barrels per day, according to various news reports and FACTS Global Energy, an expert in the industry. Honeywell is a top federal contractor, and UOP recently won a $25 million grant to help develop renewable energy sources. In a statement, the company said that in early 2009 it committed to the State Department that it would not undertake any new projects in Iran, but that it is fulfilling its contractual obligations relating to the Arak refinery. 'Should the U.S. Congress pass a law that prohibits subsidiaries of U.S. companies from doing business in Iran, Honeywell will comply fully,' the statement said." From 2000 through March 2010, Honeywell has been the recipient of $12.9 billion in U.S. federal funds. (
The New York Times, "Profiting from Iran, and the U.S.", 3/6/10)

"As disclosed in our Annual Report on Form 10 K filed on February 8, 2019, we have ceased doing business in Iran." (12/29/2019)

--

Response - “We want to make clear that Honeywell’s activities in Iran in no way impact our strong jobs record in the United States…With regards to our activities in Iran, Honeywell complies with all U.S. laws and with all laws in every country we operate.” (2017)

--
UANI has launched a campaign to pressure Honeywell to stop selling security technologies to Iran in addition to halting its oil projects in the country: