PetroChina Q3 net profit falls 6.2%

MOSCOW (MRC) -- Net profits of PetroChina Company Ltd, China's largest oil and gas producer, edged up 0.8% year on year to 96.05 billion yuan (USD15.64 billion) in the first three quarters of 2014, said Chinadaily.

The pace was much slower than a 4% growth in the first half of this year.

During the first nine months, business revenue rose 4.3% to 1.75 trillion yuan, according to the company's quarterly report filed with the Shanghai Stock Exchange.

The company's slow profit growth was mainly attributable to a weak third quarter, when international oil prices declined. Its profits in the exploration and production sector dropped in the third quarter, and losses were seen in petrochemical businesses.

It produced 700 million barrels of crude oil in the first nine months, up 0.3% year on year, while its production of natural gas for sales rose 7.1% from a year earlier, according to the report.

As MRC wrote before, PetroChina plans to spend more than 10 billion yuan (USD1.6 billion) on shale gas this year. PetroChina's decision to triple its shale gas spending from expenditures on the unconventional fuel over the past few years comes just months after Sinopec lifted hopes that China is near a breakthrough by announcing a commercial find.

PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.

MRC

MOSCOW (MRC) -- Silicone manufacturer Momentive Performance Materials Inc. (MPM) announced that it has emerged from Chapter 11 and completed its restructuring plan, said Usglassmag.

According to court documents, the U.S. Bankruptcy Court for the Southern District of New York entered an order on September 11 confirming the "Joint Chapter 11 Plan of Reorganizing for Momentive Performance Materials Inc. and Its Affiliated Debtors, dated September 3, 2014."

The effective date of the plan, according to a notice issued by the court, was October 24 at 4 p.m.

With a healthy balance sheet, the company claims it has liquidity of approximately USD360 million and a "free cash flow profile that will allow MPM to invest in its leading technology portfolio and global operations."

MPM filed for Chapter 11 bankruptcy on April 13, 2014. According to court documents, estimated assets and liabilities were both listed at more than USD1 billion. The 50 largest unsecured creditors listed included GE Capital Equity Investments, The Bank of New York Mellon, Nippon Kasei Chemicals Co. Ltd., BASF Corp. and Praxair Inc.

"We appreciate the support of our lenders throughout this transformational process and would like to thank our valued customers, suppliers and employees for their steadfast commitment to MPM," says Jack Boss, MPM’s interim chief executive officer and president. "We believe we are well positioned for future success and excited by the opportunities afforded to us by our new capital structure."

Post-emergence, MPM says it will have an independent senior management team and board of directors from Momentive Specialty Chemicals Inc. (MSC). According to the company, the shared services agreement between MPM and MSC will remain in place.

As MRC wrote earlier, Momentive and OAO Shchekinoazot, a large Russian industrial chemicals producer, formed a joint venture company to manufacture resins for the forest products and construction markets.

Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 70-year heritage of being first to market with performance applications for major industries that support and improve everyday life. Momentive Performance Materials Inc. is an indirect wholly-owned subsidiary of Momentive Performance Materials Holdings LLC.
MRC

MOSCOW (MRC) - Imports of polyethylene in Kazakhstan decreased by 9% in the first nine months of the year.
Demand for high density polyethylene (HDPE) has weakened over the reported period, while demand for other PE grades increased significantly, according to MRC.

PE imports in Kazakhstan increased to 13,700 tonnes in September, from 11,700 tonnes in August. Total PE imports in the country decreased to 80,300 tonnes in January - September 2014, compared with 88,600 tonnes year on year. Demand for pipe HDPE reduced by 18% over the reported period, while demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) continued to rise.

Structure of PE supply in the country in the reporting period was as follows. September HDPE imports in Kazakhstan grew to 10,600 tonnes, compared with 9,200 tonnes in August, on the back of increase in pipe PE supply from Russian and Asian producers. Total HDPE imports in Kazakhstan decreased to 61,000 tonnes in the first nine months of this year, compared with 74,400 tonnes year on year.

Market participants said the biggest reduction in demand for HDPE occurred for pipe grades. Reduced investment in infrastructure, currency devaluation and the cancellation of preferential treatment of imports of steel pipe HDPE were the main reasons for the decline in demand in this sector.

September LDPE imports in the country decreased to 1,750 tonnes, compared with 2,100 tonnes in August. September shipments were under the pressure of a seasonal factor. Total imports of LDPE in January - September 2014 in the country were 15,100 tonnes, compared with 11,300 tonnes year on year. Key suppliers of LDPE in the country were Russian producers with a share in total supplies about 95%.

September LLDPE imports in Kazakhstan grew to 1,400 tonnes in September, compared with 400 tonnes in August; some market participants said that HDPE was imported as LLDPE because import duties for HDPE is 6.5% and LLDPE - 0%. Imports of LLDPE in the country were 4,200 tonnes in the first nine months of the year, up 43% year on year. Key suppliers of PE in the country were producers from Asia and Uzbekistan.



MRC

MOSCOW (MRC) -- SIBUR, Russia's largest expandable polystyrene (EPS) producer, has raised its contract prices for the domestic market for November EPS shipments, according to ICIS-MRC Price report.

November offer price of the plant (SIBUR-Khimprom) will be increased by Rb2,000/tonne, including VAT, from October. The price rise was expected by market players and was caused by higher prices of imported EPS on the back of the depreciation of the Russian rouble against the US dollar and the euro.

Buyers of Russian EPS said the plant's export prices in dollars remained the same for November shipments to the foreign markets. At the same time, SIBUR might reduce its export shipments in November because of stronger demand for polymer in the local market.
MRC

MOSCOW (MRC) -- Kuraray, Japanese manufacturer of performance-based polymer and synthetic chemistry technologies, has reached an agreement to sell its European polyvinyl butyral (PVB) film business, formerly owned by DuPont, to GVC SA for an enterprise value of about EUR12-million, reported the company on its site.

The sale includes a PVB production facility in Uentrop, Germany, and a research and development center in Mechelen, Belgium. Subject to customary regulatory approvals and European Commission (EC) approval, the transaction is expected to close in January 2015.

The transaction was a result of the EC's conditional approval of Kuraray's acquisition of DuPont's Glass Laminating Solutions/Vinyls business.

As MRC wrote before, in June 2013, Kuraray successfully completed its acquisition of DuPont Glass Laminating Solutions/Vinyls, a segment of DuPont Packaging & Industrial Polymers. The USD543-million acquisition will double the size of Kuraray’s presence in the United States, Central and South America. The companies announced about this deal back in 2013.

DuPont is an American chemical company that was founded in July 1802. It is the world's ninth largest chemical company based on revenue in 2012. DuPont developed many polymers such as Vespel, neoprene, nylon, Corian, Teflon, Mylar, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona and Lycra. DuPont developed Freon (chlorofluorocarbons) for the refrigerant industry, and later more environmentally friendly refrigerants. It developed synthetic pigments and paints including ChromaFlair.
MRC