IVL achieves USD1.7 billion in sales in Q2 2012

(ivl) -- Indorama Ventures Public Company Limited (IVL), the world’s leading vertically integrated Polyester Value Chain producer, achieved consolidated sales of USD1,741 million in the second quarter of 2012 (Q2/2012) and a core EBITDA of USD151 million and core net profit after tax and minority of USD 54 million.

This strong result under current economic conditions was driven partially by volume growth of 13% over Q1 2012, from 1.19 million tons to 1.35 million tons, which has translated into 80% growth of the core EBITDA and 227% growth in core Earning Per Share (EPS).

The recent acquisition of Old World, now renamed Indorama Ventures (Oxide & Glycols) in North America in April 2012 has added a new line of business to IVL and has enabled the group to integrate into MEG (a major feedstock for making Polyester products) for the first time, making IVL the only global polyester producer with integration into both PTA and MEG.

With the acquisition, IVL also gained about 30% market share of merchant PEO (Purified Ethylene Oxide) in North America. Indorama Ventures (Oxide and Glycols) Limited has been incorporated for the first time in IVL in Q2/2012 and is one of the key drivers of earnings growth in the period.

IVL achieved a Core EBITDA per ton of USD 112 in Q2/2012 compared with USD 71 in Q1/2012. The segment EBITDA increased across all platforms with the addition of new businesses. Regionally, North America remained the top performer while Europe was slightly weaker but not significantly so.

IVL net operating debt to equity is 1.1 times in Q2/2012 following the acquisition of Indorama Ventures (Oxide and Glycols) Limited in April 2012, which is higher than the 0.6 times at the end of year 2011.
MRC

(Platts)-- Brazilian petrochemical producer Braskem reported a net loss of Reais 1.03 billion (USD510 million) in the second quarter of this year, compared to a net profit of Reais 420 million (USD208 million) in Q2 2011, due to net financial expenses resulting from the depreciation of the Brazilian real against the US dollar, the company said Tuesday.

In Q2, EBITDA dropped 36.33% to Reais 845 million (USD418 million), from Reais 1.2 billion (USD569 million), the company said in an earnings report.

"Demand for petrochemicals remained depressed, driven by the continued downturn in the world economy, which continues to be influenced by uncertainties concerning Europe's financial crisis and the lower growth of China's economy," the company said.

Braskem's export revenues in Q2 fell by 4% on year to USD2.1 billion, due to a 51% reduction in resale volumes, but were up 1% from the first quarter due to higher PP sales in the US, the company said.

Brazilian demand for thermoplastic resins in Q2 came to 1.1 billion mt, 5% down from Q2 2011.

MRC

(upstreamonline) -- Russian independent Lukoil has reportedly lost out to a four-member consortium including ExxonMobil and Shell in a competition for the rights to explore Ukraine’s Black Sea Skifska play.

The country’s environment and natural resources minister Eduard Stavitsky told journalists in Kiev that the joint bid had been chosen, according to Reuters.

The supermajor duo had entered a bid for the acreage along with OMV majority-owned Petrom of Romania and domestic player Nadra Ukrainy. The Skifska field purportedly has a potential yield of 3 billion to 4 billion cubic metres.

The minimum investment for the field in the first phase is USD198 million, according to the Ukrainian News Agency.

The consortium would be required to lodge a signing bonus of USD296 million within ten days of signing a production sharing agreement, the agency added.

No bids were received for a second field at Foroska, which has pulled, Ukrainian officials revealed earlier this month.

Ukraine, which wants to increase its energy independence from Russia, invited bids last June for potential partners for the two fields.

As part of its energy strategy, in May Ukraine picked Shell and Chevron as partners in projects to explore and develop two potentially large shale gas fields at Yuzivska and Olesska respectively.

Ukraine imports about two-thirds of its gas from Russia at a price that has been rising steadily for the last few years.
MRC

(hydrocarbonprocessing) -- Under the five-year deal, Jacobs will provide services ranging from feasibility studies and small plant modifications to discrete projects for Shell major refining and chemical sites in Pernis, The Netherlands, and Rhineland, Germany. The contract has an option to be renewed for five additional years.

Jacobs Engineering Group was awarded a five-year enterprise frame agreement from Shell Global Solutions to provide engineering and project management services to Shell's European downstream assets, the companies said on Tuesday.

The contract has an option to be renewed for an additional five years and/or to be extended to other Shell businesses such as upstream, and beyond Europe to the Middle East and Africa.

Under the deal, Jacobs will provide services ranging from feasibility studies and small plant modifications to discrete projects for Shell's major refining and chemical sites in Pernis, The Netherlands, and Rhineland, Germany.

"We are extremely proud to be selected for this important program of work for Shell," said Jacobs vice president Robert Matha.

MRC

(Business Journal) -- Braskem Ethylene XXI Project (Mexico) earth moving works have entered the final phase and work has already begun on construction and purchasing equipment with longer delivery lead times, with the complex's start-up in 2015 on schedule.

In line with its strategy to become more competitive and diversify its raw material sourcing, Braskem has implemented some actions to strengthen its position in the U.S. market, which included the acquisition of the propylene splitter assets at the Marcus Hook refinery and the strengthening of its long term commercial partnership with Enterprise Products for the supply of propylene through various contracts with terms in excess of 15 years.

Braskem returned to capital markets once again in July 2012 to raise USD250 million with a yield of 6.98% p.a. through the reopening of its 2041 bond issue. The objective is to take advantage of the opportunity in the market and prepay its short-and medium-term debt.
MRC