Olin Corp Q4 net profit falls 48.2%, sales down 11%

MOSCOW (MRC) -- Olin Corporation announced today that its fourth quarter 2014 net income was USD12.8 million, or USD0.16 per diluted share, which compares to USD24.7 million, or USD0.31 per diluted share, in the fourth quarter of 2013, as per company's press release.

Sales in the fourth quarter of 2014 were USD499.8 million compared to USD562.1 million in the fourth quarter of 2013. Full year 2014 income from continuing operations was USD105.0 million, or USD1.32 per diluted share, which compares to USD178.6 million, or USD2.21 per diluted share, in 2013. Sales in 2014 were USD2.2 billion compared to USD2.5 billion in 2013.

Fourth quarter 2014 results included USD11.2 million of pretax restructuring charges, primarily related to the decision to permanently close approximately 50% of the chlor alkali capacity at the Becancour, Canada facility. Fourth quarter 2013 earnings included a USD6.5 million pretax gain associated with the sale of a joint venture interest, USD4.0 million of favorable tax adjustments and USD1.4 million of pretax restructuring charges.

"Winchester's fourth quarter 2014 commercial volumes and segment earnings reached the second highest fourth quarter levels ever. During the fourth quarter of 2014, the Chlor Alkali business experienced lower chlorine and caustic soda shipments and ECU netbacks, reflecting lower caustic soda prices, compared to the fourth quarter of 2013. Fourth quarter 2014 Chemical Distribution segment earnings were comparable to the fourth quarter of 2013.

"First quarter 2015 net income is forecast to be in the USD0.20 to USD0.25 per diluted share range. Chlor Alkali first quarter 2015 earnings are expected to be similar to the fourth quarter of 2014 reflecting higher ECU netbacks and higher volumes offset by higher operating costs. Earnings in the Winchester segment are expected to be slightly lower than first quarter 2013 levels. First quarter 2015 Chemical Distribution earnings are expected to improve from the fourth quarter of 2014. First quarter 2015 earnings are also expected to include pretax restructuring charges of approximately USD1 million."

As MRC wrote before, Olin Corp. will permanently close part of its Becancour, Quebec, chemical plant that had already been shut down since June. The Clayton-based maker of chemicals and ammunition, which also owns 9 chemical plants in the U.S., said the move would reduce the Canadian plant's chlor alkali capacity by 185,000 tons.

Olin Corporation manufactures chemicals and ammunition products. The Company manufactures and sells chlorine, caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, sodium chlorate, bleach products, and potassium hydroxide. Olin also manufactures products that include sporting ammunition, reloading components, small caliber military ammunition and industrial cartridges.
MRC

Guangzhou Tosoh to shut PVC plant in China for maintenance

MOSCOW (MRC) -- Guangzhou Tosoh is on track to shut a polyvinyl chloride (PVC) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in China informed that the plant will be shut on February 27, 2015. It is likely to remain off-stream for around one month.

Located in Guangzhou, China, the plant has a production capacity of 250,000 mt/year.

We remind that, as MRC reported before, on 9 October 2014, Inner Mongolia Yili shut its PVC plant in China for maintenance turnaround. It remained off-stream for around one month. Located at Erdos in Inner Mongolia, the plant has a production capacity of 500,000 mt/year.

Besides, earlier last year, Formosa Plastics Corp (FPC) shut down its PVC plant in China for maintenance turnaround on September 9, 2014. It was planned to remain shut for around one month. Located at Ningbo in Zhejiang province of China, the plant has a production capacity of 400,000 mt/year.
MRC

Marathon defers Garyville refinery upgrader plans, citing market conditions

MOSCOW (MRC) -- Marathon Petroleum is delaying the final investment decision (FID) on its planned residual oil upgrader expansion at its 522,000-bpd Garyville refinery in Louisiana, said Hydrocarbonprocessing.

"We believe this project has great potential returns, but we are deferring a final investment decision as we further evaluate the implications of current market conditions on the project," CEO Gary R. Heminger said in a statement issued with regards to the company's 2015 capital investment plan.

The company's investment plan of USD2.53 billion includes USD1.28 billion for its refining and marketing segment and USD659 million for its pipeline transportation business.

Within the refining business, roughly USD235 million is earmarked for midstream investments and USD370 million for refining margin enhancement projects.

"Our focus for refining in 2015 is to invest in projects that enhance our overall return," Heminger said.

"For example, we are continuing to invest in projects to improve connectivity between our Galveston Bay and Texas City refineries, which will allow us to realize additional synergies through the integration of these two refineries."

As MRC wrote earlier, Marathon Petroleum has closed its transaction with BP to purchase several assets, including the 451,000 bpd refinery located in Texas City, Texas.

Marathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Poland, Angola and Iraqi Kurdistan.

MRC

Huntsman to expand capacity of Singapore polyetheramines plant

MOSCOW (MRC) -- Huntsman has announced it will begin construction on a 25,000 t capacity expansion programme at its world-scale polyetheramine facility in Singapore in the first half of 2015, taking the annual total capacity to 50,000 tons, according to GV.

Huntsman said it is investing USD 100 million for this latest expansion at its Jurong Island facility, which will also include backward integration to produce polyethers from locally sourced feedstocks. This project is intended to help the company meet growing global demand for polyetheramines. Construction of the new facilities is expected to be completed in the second half of 2016.

"We expect demand for our amines products to increase across all regions over the next decade, particularly in Asia-Pacific - where volume is set to grow by at least 10 % per year," noted Huntsman President and CEO, Peter R. Huntsman.

"Combined with our other existing polyetheramine manufacturing facilities in Conroe, Texas, and Llanelli, Wales, the expansion at our Jurong site will help us respond more quickly to customer demand, not only in the rapidly growing Asia market, but also around the globe," Stu Monteith, President of Huntsman's Performance Products division added.

As MRC wrote before, last year, the performance products division of Huntsman expanded its global polyetheramines (PEA) capacity by nearly 15% as a result of debottlenecking three of its PEA manufacturing plants globally. Expansion was done in the Americas, Europe and Asia. The company's projects at its Conroe, Texas (US), Llanelli, Wales (UK) and Singapore sites had become fully operational by May 2014.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

Prices of pipe grade HDPE rose in Russia

MOSCOW (MRC) -- Prices of pipe grade high density polyethylene (HDPE) grew in the Russian market in February, despite weak seasonal demand, according to ICIS-MRC Price report.

Prices of both natural PE 100 and black PE 100 rose. Thus, prices of pipe grade PE for converters increased by Rb2,000-3,000/tonne, depending on the producer, the price rise was largely caused by the increased production costs.

February offer prices of natural PE 100 were heard in the Russian market in the range of Rb84,000-86,500/tonne FCA, including VAT, whereas January deals were done in the range of Rb81,000-84,500/tonne FCA, including VAT.

Deals for February shipments of black PE100 were done in the spot market at an average of Rb88,000-89,000/tonne FCA, including VAT. Some market participants reported limited PE shipments by Kazanorgsintez.

Buying activity was low in the pipe grade PE market on the back of seasonal factors, a problem with creding financing (increased interest rates on loans and difficulty in obtaining loans) also aggravated the situation for local converters.
MRC