PP imports to Kazakhstan rose by 32% and exports - by 25%

MOSCOW (MRC) -- Imports of polypropylene (PP) into Kazakhstan increased by 32% in 2014 and totalled 20,400 tonnes, whereas PP exports rose by a quarter to 22,200 tonnes, reported MRC analysts.

December PP imports ro Kazakhstan fell to 1,500 tonnes under the pressure of seasonal factors from 2,700 tonnes a month earlier. The overall imports of propylene polymers to the local market rose to 20,400 tonnes last year, whereas this figure was 15,500 tonnes a year ealier.

December imports of propylene homopolymer (homopolymer PP) totalled 1,300 tonnes versus 2,300 tonnes in November on the back of weaker demand from local producers of polypropylene bags. Last year's imports of homopolymer PP to Kazakhstan increased to 15,800 tonnes versus 10,400 tonnes a year earlier.

Last month's imports of propylene copolymer dropped to 250 tonnes from 400 tonnes in November. The overall imports of propylene copolymers were 4,600 tonnes over the stated period versus 5,100 tonnes a year earlier.

November PP exports from Kazakhstan fell to 715 tonnes because of the start-up of the granulation unit, but in December the local manufacturer increased export sales to 2,600 tonnes. Overall, 22,200 tonnes of homopolymer PP were exported to foreign markets in 2014, up by 25% year on year.
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MOSCOW (MRC) -- U.S. energy giant Chevron Corp. reported better-than-expected fourth quarter earnings on improved downstream results that saw refining margins climb on lower input costs. Earnings per share came in at USD1.85, well above the Zacks Consensus Estimate of USD1.67, said the company in its press release.

Chevron’s performance deteriorated from the year-ago profit of USD2.57 per share amid a plunge in oil prices. The company’s quarterly revenue moved down 17.9% year over year to USD46,088 million. However, it was enough to beat the Zacks Consensus Estimate of USD33,277 million.

Apart from the operational performance, Chevron also offered a glimpse of its 2015 capital spending plans. The company has pegged its capital budget at USD35 billion, down 13% from the USD40 billion it invested in 2014.

Chevron’s total production of crude oil and natural gas remained essentially unchanged from the year-earlier level at 2,582 thousand oil-equivalent barrels per day (MBOE/d). Though the U.S. output augmented 3.5% year over year, the company’s international operations (accounting for 74% of the total) registered a 0.9% fall in volumes.

Chevron’s downstream segment achieved earnings of USD1,518 million, considerably higher than the profit of USD390 million last year. The results were buoyed by higher refinery margins on the back of lower feedstock costs.

The second-largest U.S. oil company by market value after Exxon Mobil spent USD11,290 million in capital expenditures during the quarter. Approximately 91% of the total outlays pertained to upstream projects. As of Dec 31, 2014, the San Ramon, CA-based company had USD12,785 million in cash and total debt of USD27,818 million, with a debt-to-total capitalization ratio of about 15.2%. As part of the stock repurchase program, Chevron bought back USD1,250 million worth of shares in the fourth quarter.

Chevron currently carries a Zacks Rank N5 (Strong Sell), implying that it is expected to significantly underperform the broader U.S. equity market over the next one to three months.

The company also said its 50% stake at chemical firm Chevron Phillips Chemical Company had achieved start-up of what Chevron called the world’s largest on-purpose 1-hexene plant, as well as progressed construction of the company’s new ethane cracker and polyethylene units in Texas.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
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MOSCOW (MRC) -- DuPont Co., the chemical maker fighting Trian Fund Management’s slate of dissident directors, is cutting employee compensation as it struggles with earnings growth below the company’s long-term target, as per Hydrocarbonprocessing.

Chairman and CEO Ellen Kullman told employees this week that 2014 bonuses will be reduced and salary increases for 2015 won’t take effect until July 1, according to an internal memo distributed Tuesday, a copy of which was obtained by Bloomberg News.

"We set our targets and objectives, and our compensation is tied to the achievement of those targets," Kullman said in the memo. "It is important to recognize that in 2014, we did not meet all of our targets." Kullman, whose long-term goal is to increase annual earnings per share by 12%, posted a 3% increase for 2014 and forecast a 5% rise this year. She said she’ll cut USD1.3 billion in costs by the end of 2017, expanding and accelerating an earlier program.

The delay in merit raises is intended to "maintain our strong position" amid uncertain macroeconomic conditions, challenging agriculture markets and a stronger US dollar relative to other currencies, Kullman said in the memo.

Union members aren’t affected by the compensation cuts, said Jim Briggs, a United Steel Workers representative for DuPont employees at plants in Buffalo and Niagara Falls, New York.

Trian, co-founded by Nelson Peltz, says the company can cut as much as USD4 billion in costs. The New York-based investor is seeking four board seats and argues the 212-year-old company would be better managed if it were broken up.

While DuPont already plans this year to spin off the performance chemicals business, renamed Chemours, Trian advocates the rest of the company be split in two. One part would include the faster-growing agriculture and nutrition units and another would encompass more cyclical businesses.

Kullman is cutting costs as she repurchases more of the company’s stock to improve per-share earnings. A dividend of about USD4 billion from the anticipated spinoff of Chemours, will be used to buyback DuPont shares, the company said Tuesday. The buybacks would be in addition to a USD5 billion repurchase program announced a year ago.

Trian held a 2.7% stake in DuPont at the end of last year. DuPont shareholders will vote to select the board at the company’s annual meeting in April.

DuPont shareholders will vote to select the board at the company’s annual meeting in April.
DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
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MOSCOW (MRC) -- Eastman Chemical Co.reported a 95% plunge in profit for the fourth quarter from last year, as higher revenues were more than offset by one-time charges, said the company in its press release.

Kingsport, Tennessee-based Eastman Chemical's fourth-quarter net earnings were USD16 million or USD0.11 per share, down from USD346 million or USD2.22 per share in the year-ago period.

The latest quarter's results include a loss of USD1.35 per share related to mark-to-market pension and other postretirement benefit plans, additional costs of acquired inventories of USD0.07 per share, and acquisition transaction costs of USD0.11 per share.

The year-ago period results include, among other items, a gain of USD1.15 per share on mark-to-market pension and other postretirement benefit plans.

Excluding items, adjusted earnings for the latest quarter were USD1.64 per share, compared to USD1.35 per share last year. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of USD1.52 per share for the quarter.

Sales revenue for the quarter grew 4% to USD2.35 billion from USD2.27 billion in the year-ago period. Analysts had a consensus revenue estimate of USD2.34 billion for the quarter.

For fiscal 2014, net earnings attributable to Eastman stockholders declined to USD751 million or USD4.97 per share from USD1.17 billion or USD7.44 per share in the prior year. Adjusted earnings from continuing operations were USD7.07, compared to USD6.44 per share last year.

Sales revenue for the year grew 2% to USD9.53 billion from USD9.35 billion in the previous year. Street expected the company to earn USD6.94 per share for the year on revenues of USD9.56 billion.

Looking ahead to fiscal 2015, Eastman Chemical forecast adjusted earnings to be similar to 2014, when it reported USD7.07 per share. Analysts expect earnings of USD7.45 per share for the year.

As MRC wrote before, In December, Eastman acquired Taminco Corp, a specialty chemical company, and Commonwealth Laminating & Coating Inc, a specialty films business.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2013 revenues of approximately USD9.4 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,000 people around the world.
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MOSCOW (MRC) -- The Anglo Dutch energy giant Shell has announced that it is cutting investments over the next three years due to a drop in oil prices, reported Kuwait News Agency.

"We have curtailed over USD 15 billion of potential spending over the next three years. Shell has options to further reduce spending, but we are not over-reacting to current low oil prices and keeping our best opportunities on the table," said Shell's CEO, Ben van Beurden, in a statement.

"Given Shell's rich portfolio funnel and today's lower oil prices, investment levels are under severe pressure in the near term.

Today's lower prices are creating opportunities to reduce our own costs and to take costs out of the supply chain, where there is multi-billion dollar savings potential for Shell," he noted.

However, Van Beurden said that Shell had posted improved earnings and returns in 2014, including USD 25 billion of free cash flow, underpinning USD 15 billion of dividends and share buybacks.

As MRC wrote before, Qatar Petroleum and Shell have recently decided not to proceed with the proposed Al Karaana petrochemicals project, and to stop further work on the project. The decision came after a careful and thorough evaluation of commercial quotations from EPC (engineering, procurement and construction) bidders, which showed high capital costs rendering it commercially unfeasible, particularly in the current economic climate prevailing in the energy industry.

Besides, in early 2015, Sabic, the largest Saudi Arabian oil company, and Shell scrapped their petrochemical project in Saudi Arabia after nearly two years of research. New complex was supposed to produce styrene monomer, propylene oxide and polyols.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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