Unipetrol net profit reached USD64.5million in Q3 2014

MOSCOW (MRC) -- In Q3 2014 Unipetrol Group posted very good results and significantly increased its profitability, as per the company's statement.

Company recorded operational profit (EBITDA LIFO) of CZK 2.304 bn. Net profit reached CZK 1.399 bn(USD64.5million). Revenues increased y/y by 37% to CZK 34.041 bn in 3Q14.

"Very good results in the third quarter were affected by significant improvement in refining margins which were the highest since the beginning of 2013, and an increase also in the petchem margin. Important is, that we managed to take advantage of positive macroeconomic conditions through very reliable production and higher sales volumes across all segments," says CEO and Chairman of the Board of Directors of Unipetrol Marek Switajewski.

Operational profit EBITDA LIFO in the petrochemical part of downstream segment amounted at CZK 1.336 bn in 3Q14. Company recorded a sales increase of petrochemical products to 449kt in Q3 (+23% y/y). Higher sales were driven by very good market demand and production without limitations. Steam-cracker utilization ratio reached 89% in Q3. The sales of polyethylene increased by 25% and of polypropylene by 32%. On the other hand renewable energy charges (OZE) continues to burden results of the petrochemical business.

As MRC reported earlier, last year, Unipetrol acquired technology and production rights for a new polyethylene unit and wants to pick a contractor for the project in the first half of 2014. The company, after posting net losses in 2011 and 2012, laid out plans to invest almost USD1 billion over the next five years and make its petrochemical segment the biggest contributor to profit.

Unipetrol expects petrochemicals to become the largest source of revenue for the company in 2013-2017. Unipetrol wants to use the favourable market conditions to reinforce its position on the petrochemical market and optimise its operations.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.
MRC

MOSCOW (MRC) -- Two top executives at Moscow’s Vnukovo airport have tendered their resignations and Russian investigators detained four more employees following a plane crash that killed the head of Total, reported Hydrocarbonprocessing.

Vnukovo general director Andrey Dyakov and his deputy Sergey Solntsev resigned following the Oct. 20 crash that killed Total CEO Christophe de Margerie, according to an e-mailed statement from the airport.

Russia’s Investigative Committee detained two air traffic controllers, a flight operations officer and the head airfield-service engineer in connection with the accident, in addition to the driver of a snowplow the plane hit, it said on its website.

De Margerie was one of Russia’s most outspoken supporters in the European business community, and condemned US and European Union sanctions on the country as "unfair and unproductive" hours before the crash, which also killed three crew members on board the private jet.

Total, France’s largest company by sales, appointed its refining chief Patrick Pouyanne as his replacement.

A Moscow court condoned the arrest of Vladimir Martynenko, the driver of a snowplow that collided with de Margerie’s plane on a runway at Vnukovo, RIA Novosti reported from the courtroom.

The Investigative Committee alleges the driver was drunk, a charge his lawyer, Alexander Karabanov, denies.

As MRC wrote before, Total in September said its joint venture with Russia’s Lukoil, to explore shale oil in western Siberia, had ground to a halt as a result of western sanctions.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announces it has secured financing for Borealis investment in research and development on plastic materials at several of its facilities, said the company.

The KfW IPEX-Bank loan of EUR 75 million will run parallel with the EUR 150 million European Investment Bank (EIB) financing package announced earlier this year. The new agreement was signed by the two parties in Frankfurt on 14 October 2014.

The KfW IPEX-Bank loan supports Borealis investment in its European innovation centres. As a programme spanning several years, the project will continue to focus primarily on product innovation in the area of advanced polymers.

"For Borealis, the cooperation with KfW IPEX-Bank represents another milestone in its continuous investment in research and development in Europe", says Jan-Martin Nufer, Borealis Director Treasury & Funding. We are delighted to work once more with KfW as an excellent partner for the financing of our innovation centers."

Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW's promotional mission. It is represented in the most important economic and financial centres across the globe.

As MRC wroet before, Jacobs Engineering Group received a contract from Borealis to provide engineering, procurement, project management and construction management services for a project to increase cross-linked polyethylene (XLPE) capacity at its manufacturing site in Stenungsund, Sweden.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. This year, Borealis already celebrates its 20th anniversary. With headquarters in Vienna, Austria, Borealis currently employs around 6,400 and operates in over 120 countries. It generated EUR 8.1 billion in sales revenue in 2013. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% owned by OMV, the leading energy group in the European growth belt. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC).
MRC

MOSCOW (MRC) -- SIBUR, a Russian petrochemical company, Songwon International AG a European branch of Songwon Industrial Co. Ltd, South Korea, and UTS, a Swedish-Russian distribution company, signed a long-term cooperation agreement to supply additives used for polymer production and processing at SIBUR’s production facilities, as per SIBUR.

Under the agreement Songwon in collaboration with its Distributor UTS will provide SIBUR with additives, used in polypropylene, polyethylene, -rubbers, thermoplastic rubbers and PVC. Adding stabilisers during production helps improve the quality of end products and protect polymers from temperature, mechanical stress, UV radiation and further exposures. Songwon will also provide technical support for the stabilisers in end-use applications.

As part of the agreement, the parties will also engage in developing and implementing joint projects aimed to improve polymer properties. Some of the projects will rely on the capabilities of Songwon’s R&D Centre in South Korea.
The agreement will be effective until the end of 2015.

In 2014, SIBUR's NIOST opened Polyolefin Additives Certification Centre, with the opening ceremony attended by representatives of Songwon as additive producer.

SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry. As of 30 June 2014, SIBUR operated 26 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 26,000 personnel.

Russian-Swedish distribution company "United Trading Company" (UTS/ETC) started it’s activity in CIS in May 1994. Nowadays UTS is a Group of Companies with offices and warehouses in several cities of Russia, Ukraine, Kazakhstan, Belarus, Sweden, Holland and China. The major activity of the Group is export&import of chemical raw materials and construction products. Import of Special chemicals and distribution in CIS countries forms more than 80% of theGroup’s business.

Songwon Industrial Co., Ltd. is the 2nd largest manufacturer of polymer stabilizers in the world with an almost 50 year history of breakthrough solutions. Songwon provides added-value products and innovative solutions to the plastics industry. The company’s extensive product portfolio includes polymer stabilizers, alkylphenols and alkylcresols, PVC stabilizers, plasticizers, tin intermediates, polyurethanes, SAP and flocculants.

MRC

MOSCOW (MRC) -- The output of basic polyamide 6 (PA 6) in Russia reached 107,000 tonnes over the first three quarters of 2014, up by 8% year on year, according to MRC ScanPlast report.

Along with increased production, imports of pure PA 6 to foreign markets from Russia rose by 17% over the stated period to almost 77,000 tonnes. Shipments to China increased by 16% (to 33,600 tonnes), to India - by 52% (to 14,300 tonnes), to Turkey - by 20% (up to 11,000 tonnes).

The textile sector accounted for the greates consumption of PA 6 in the domestic market. Overall, consumption of the textile industry was 100.9% over the first three quarters of 2014.

KuibyshevAzot with the annual production capacity of 120,000 tonnes is Russia' key PA 6 producer. The plant produces PA 6 grades for processing as per yarns and fibers technologies, as well as for compounding and moulding. KuibyshevAzot mostly focuses on polyamide shipments to foreign markets. About 70% of the plant's production quantities are exported.

MRC