DSM reports Q3 2014 results

MOSCOW (MRC) -- Royal DSM N.V., a Dutch Life Sciences and Materials Sciences company, reported a sharp decline in third-quarter net profit, despite strong performance in all segments, said the company in its press release.

Looking ahead, the company said its full-year 2014 outlook is in line with current market expectations. For the third quarter, net profit decreased 21% to 93 million euros from 117 million euros last year. Net earnings per share was 0.51 euros, down from 0.65 euros in the previous year.

The company noted that the prior year figures were restated for the impact of the termination of proportional consolidation for joint ventures as from 1 Jan 2014 onward. Net profit from continuing operations dropped 10% to 121 million euros or 0.69 euro per share, while core net profit, which excluded certain items, dropped 3% to 141 million euros or 0.81 euro per share.

Earnings before interest, tax, depreciation and amortization or EBITDA from continuing operations, before exceptional items, was 315 million euros, 5% lower than 331 million euros last year.

Net sales for the quarter declined 1% to 2.323 billion euros from 2.354 billion euros last year, on the absence of last year's sales from discontinued operations. On an organic basis, sales grew 5% from last year with improved results in all segments.

As MRC wrote before, Royal DSM signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota / USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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MOSCOW (MRC) -- Technip announced that it has entered into a contract to supply its proprietary ethylene technology and process design package (PDP) for a world-class grassroots ethane cracker for the proposed ASCENT (Appalachian Shale Cracker Enterprise) petrochemical complex currently being evaluated by Odebrecht and Braskem in Parkersburg, West Virginia, USA, said Downstreamtoday.

Using ethane from shale gas, this cracker will produce ethylene to be used in polyethylene plants. Technip’s operating centers in Houston, Texas and Claremont, California, USA, and Rome, Italy, will execute this initial project phase.

Stan Knez, Senior Vice President of Technip Stone & Webster Process Technology, commented: "We are pleased to reinforce our long-term relationship with Odebrecht and Braskem by providing a leading technology and PDP for this world-scale cracker. As the largest ethylene licensor and contractor, Technip looks forward to bringing its experience to this important project in the Appalachian region."

Technip, in a joint venture with Odebrecht and ICA Fluor, is also providing engineering, procurement and construction services for the Etileno XXI petrochemical complex in Mexico, which is being built by Braskem-IDESA and is expected to be commissioned in 2015. The complex will include an ethane cracker with annual production capacity of 1.05 Mt of ethylene that will be used to produce two grades of polyethylene (PE), with two high-density polyethylene (HDPE) lines totaling 750,000 tpa and one conventional low-density (LDPE) line of 300,000 tpa.

Technip is leveraging a wide portfolio of market-leading onshore technologies.

Braskem is the leading producer of thermoplastic resins in Latin America and the US, following its purchase of polypropylene assets of Dow Chemical. The company serves 70% of Brazilian demand in PP, PE and PVC resins, but foreign resin imports have gained Brazilian market share in recent years. Brazil's annual consumption of PP is estimated at 1.4 million tons this year.

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MOSCOW (MRC) -- Ineos Olefins & Polymers Europe has confirmed that it has reached an agreement with Evergas to order an additional two state-of-the-art ethane vessels, known as "Dragon Class" ships, to bring US ethane from shale gas to its manufacturing plants in Scotland and Norway, said the producer on its site.

The increased order raises the Ineos fleet to 8 Dragon Ships. This comes as construction of an ethane terminal starts at Grangemouth (Scotland) and another nears completion at Rafnes (Norway).

At Grangemouth construction of a new ethane import terminal and storage tank and infrastructure is well under way and should be completed in 2016. At Rafnes in Norway, both a new ethane storage tank and terminal, are approaching completion in time to be fully operational in 2015.

Thus, the increased order for new ethane carriers will satisfy the demand from Ineos crackers at Grangemouth and Rafnes.

David Thompson, Chief Operating Office Ineos Trading & Shipping says: "This exciting news is another important milestone in our plan to bring the benefits of US shale economics to our European sites. The ethane that we are bringing to our sites from the US is essential to these plants. As the most competitive feedstock in Europe and will be transformational for our operations. The two additional “Dragon Ships” mean we can transport sufficient volumes of ethane to meet the demands of our manufacturing sites and continue to take advantage of significant cost benefits."

As MRC reported earlier, in early 2013, Ineos Europe entered into 15-years shipping agreements with Evergas for the transportation of ethane into Europe from the US Mariner East project. Investment in a supply of US ethane is vital to secure the long-term competitiveness and sustainability of gas crackers that so far have relied on declining and expensive volumes from the North Sea.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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MOSCOW (MRC) -- Valero Energy Corp. said its third-quarter earnings more than tripled, as the company’s refining and ethanol segments posted sharply results, said the Wall Street Journal.

Valero posted a profit of USD1.06 billion, or USD2 a share, up from USD312 million, or 57 cents a share, a year earlier.

Revenue fell 4.8% to USD34.41 billion but still topped the USD31.6 billion analysts polled by Thomson Reuters had projected.

Valero said its refining segment’s throughput volumes averaged 2.8 million barrels a day, an increase of 42,000 barrels a day from a year earlier. Operating income in the unit more than doubled to USD1.66 billion from USD600 million a year earlier, reflecting higher volumes and increased availability of North American light crude oil on the Gulf Coast.

Chief Executive Joe Gorder said the company added capacity in the quarter with the completion of a 70,000-barrels-a-day rail unloading facility in Port Arthur, Texas.

In the ethanol segment, operating income surged 75.2% to USD198 million, helped by lower corn costs and increased volumes.

Valero said total costs and expenses fell 8% in the quarter to USD32.7 billion.

As MRC informed before, in July 2014 Valero Energy Partners LP approved the acquisition from certain subsidiaries of Valero Energy Corporation of the McKee Crude System, Three Rivers Crude System, and Wynnewood Products System for total consideration of USD154 million.

Valero Energy Partners LP is a fee-based, growth-oriented, traditional master limited partnership formed by Valero Energy Corporation to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. With headquarters in San Antonio, the Partnership's assets include crude oil and refined petroleum products pipeline and terminal systems in the Gulf Coast and Mid-Continent regions of the United States that are integral to the operations of several of Valero's refineries.
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MOSCOW (MRC) -- Westlake Chemical Corp. reported a decline in its third-quarter profit to USD167.8 million or USD1.25 per share from USD170.3 million or USD1.27 per share last year, said Rttnews.

The company's earnings were affected by Westlake Chemical Partners formation and initial public offering costs and Vinnolit acquisition-related costs of USD21.6 million, after tax, an elevated effective tax rate and several unplanned outages.

On average, 10 analysts polled by Thomson Reuters expected earnings of USD1.56 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales rose to USD1.25 billion from USD1.00 billion last year, while analysts were looking for sales of USD1.19 billion.

The sales growth was mainly attributable to sales contributed by Vinnolit, which the firm had acquired in July.

Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVC building products including pipe and specialty components, windows and fence.
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