Sasol boosts first-half headline earnings 6%

MOSCOW (MRC) -- SASOL reported a 6% increase in first-half headline earnings per share to R32, buoyed by higher sales and chemical prices, said the producer in its press release.

A weaker rand helped cushion the effect of lower oil prices on its earnings. Sales of performance chemicals were up 5% and sales of base chemicals rose 1% in the same period.

Earnings per share increased 53% to R32.04 but due to net once-off charges, movements in share-based payment expense and lower unrealised profit in inventory, earnings attributable to shareholders decreased 23%. Sasol said it was implementing previous signalled plans to revise its dividend policy to a dividend cover range, which would be based on headline earnings per share.

To save cash in a volatile environment, the petrochemical giant reduced its interim dividend by 12.5% to R7 per share. Sasol’s annual costs savings target increased to at least R4.3bn. The company was planning to conserve between R30bn and R50bn over 30 months, using December 31 2014 as a baseline to fend off lower oil prices.

Profit from operations in the six months to December was up 39% to R30bn, boosted by a strong performance from regional operating hubs and chemicals and base chemicals strategic business units. Sasol president and CEO David Constable said: "The changes made to our business since 2011 have resulted in a more effective and cost-conscious organisation.

"With oil prices moving dramatically lower over the last six months the management team has formulated a comprehensive response plan to conserve cash and further refine our organisational structures and near-term strategies," he said. Mr Constable also said it could expand its USD8.9bn cracker project in Louisiana, depending on market conditions.

Sasol is going ahead with its cracker, which takes ethane, a component of natural gas, and turns it into ethylene, used in the manufacture of plastic products. But it has delayed the final investment decision on the GTL plant in Louisiana, which will cost up to USD14 bn, because of the low oil price.

Last month, Sasol said it would delay a decision on a USD14 billion gas-to-liquids facility in Lake Charles, La., due to low oil prices.

Sasol Limited is an integrated energy and chemical company based in Johannesburg, South Africa. It develops and commercialises technologies, including synthetic fuels technologies, and produces different liquid fuels, chemicals and electricity.
MRC

MOSCOW (MRC) -- Dow Automotive Systems, a business unit of The Dow Chemical Company, is proud to be the structural adhesives supplier for the 2015 Ford F-150, which launched in November, reported Dow on its site.

With a front-end, cab, box and tailgate made out of aluminum alloy and a frame made out of high-strength, lightweight steel, the F-150 utilizes BETAMATE structural adhesives for durability, weight reduction and improved manufacturing efficiencies. This technology demonstrates Dow’s commitment to supplying solutions that meet specific customer needs and product specifications.

"Dow Automotive Systems has worked closely with Ford to customize an adhesive solution for the F-150 that supports their specifications for design, manufacturing and sustainability," said Steve Henderson, president, Dow Automotive Systems. "This type of collaboration delivers great results. We can tailor materials like adhesives to meet very specific targets and support a wide range of objectives across the entire vehicle platform. The Ford F-150 is an exciting demonstration of the strength of aluminum in meeting lightweight objectives and is an impressive industry milestone."

In addition to supplying BETMATE adhesives for use in structural applications in the Ford F-150, Dow Automotive is also the supplier of BETASEAL glass bonding adhesives, which is the windshield bonding material in the F-150.

As MRC informed previously, in February 2015, The Dow Chemical Company announced the completed sale of Angus Chemical Company to Golden Gate Capital. The company finalized the divestiture of its Sodium Borohydride business to Vertellus Performance Chemicals LLC and certain of its affiliates.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. EBITDA was up 15% in 4Q at USD2.4 bn. Net profits were down 24% at USD734. Dow's sales in 4Q were unchanged on a year earlier at USD14.38 bn.
MRC

MOSCOW (MRC) -- Barito Pacific's subsidiary Chandra Asri Petrochemical (CAP) is reportedly planning to build a naphtha refinery at its Cilegon complex in Banten, Indonesia, with an estimated investment of USD740m, said Chemicals-technology.

The company is now undertaking a one year preliminary study for the proposed project, which would reduce its reliance on naptha imports. CAP corporate relations vice-president Suhat Miyarso was quoted by Jakarta Post as saying: "We are going to build a mini-refinery for naphtha production in 2018, with preliminary studies starting this year."

Planned to be located on an 80ha area, the refinery is expected to produce 100,000 barrels of condensate a day, the equivalent of producing 2.5 million tonnes (Mt) of naphtha a year. "The refinery is expected to produce 100,000 barrels of condensate a day."

The company plans to use 1.3Mt of naphtha as feedstock to produce olefins. It currently imports 1.7Mt of naphtha a year from Middle Eastern countries and Singapore. CAP plans to finance the preliminary study using USD250m funds allocated for capital expenditure this year.

The funds will also be used to finalise the USD380m expansion of a naphtha cracker at the Cilegon complex to increase ethylene production capacity to 860,000 kilotonnes. It will also facilitate construction of a synthetic rubber plant in partnership with French firm, Michelin.

The rubber plant is expected to produce 100,000t of butadiene, a raw material for styrene butadiene rubber, acrylonitrile butadiene system and styrene butadiene latex. The upgraded naphtha cracker and butadiene plant are expected to commence operations next year.

As MRC wrote before, Moody's Investors Service, changed the outlook of Chandra Asri Petrochemical Tbk (CAP), the country’s largest petrochemical producer, to stable from negative. Concurrently, Moody's affirmed CAP's B2 corporate family rating (CFR).

Chandra Asri Petrochemical (CAP) is the largest vertically integrated petrochemical company in Indonesia with facilities located in Ciwandan, Cilegon and Puloampel, Serang in Banten Province. CAP is Indonesia's premier petrochemical plant incorporating world-class, state-of-the-art technology and supporting facilities. At the heart of CAP lies the Lummus Naphtha Cracker producing high quality Ethylene, Propylene, Mixed C4, and Pyrolysis Gasoline (Py-Gas) for the Indonesian as well as regional export markets.
MRC

MOSCOW (MRC) -- Evonik Industries, a leading specialty chemicals manufacturer, has appointed BCD Chemie GmbH as the new distributor for DEGALAN products in coating and ink applications in Switzerland, as per the company's press release.

BCD Chemie GmbH, based in Hamburg (Germany) is the successor of Rohm Schweiz GmbH and will become the exclusive distribution partner for DEGALAN in Switzerland.

DEGALAN products offer convincing benefits in all applications where the main priorities are unsurpassed weather resistance, colorfastness, high brilliance, hardness and scratch resistance.

For decades, BCD Chemie has concentrated on marketing and distribution of industrial and speciality chemicals and is one of the leading suppliers in this segment.

As MRC wrote before, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC

MOSCOW (MRC) -- Ineos has announced a deal to acquire a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences), reported the company on its site.

This consists of a 60% interest in three Petroleum Exploration & Development Licences (PEDL’s 145, 193 and EXL273) and a 50% interest in a further four licences (PEDL’s 147, 184, 189 and 190).

In Scotland, Ineos will acquire IGas’ entire interest in PEDL 133 (the Grangemouth licence) which will give the company 100% ownership of this asset.

In addition, Ineos has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL’s 012 and 200).

Gary Haywood, CEO of Ienos Upstream, says "This is a great opportunity to acquire some first class assets that have the potential to yield significant quantities of gas in the future. INEOS believes that an indigenous shale gas industry will transform UK manufacturing, and that we can extract the gas safely and responsibly. We are pleased to have agreed this deal with IGas. Ineos’s scale, asset position across the UK, US shale gas expertise, and our expertise in managing oil and gas facilities will be a great match with IGas’s existing onshore asset base, and significant exploration and production capability".

Ineos is paying IGas a cash sum of GBP30 million and additionally committing to fund a two phase work programme of up to GBP138 million to develop the sites. IGas will reimburse its share of the work programme to Ineos upon commencement of commercial production.

Gary Haywood also adds, "This is a further significant step for Ineos in its plan to become the biggest player in the UK shale gas industry. We believe shale gas could revolutionise UK manufacturing and Ineos has the resources to make it happen, the skills to extract the gas safely and the vision to realise that everyone must share in the rewards for UK shale gas to be successfully developed".

As MRC wrote before, in october 2014, Ineos Upstream Limited signed an agreement with Reach Coal Seam Gas Limited (Reach CSG) to acquire an 80% interest in Petroleum Exploration and Development Licence (PEDL) 162, in the Midland Valley of Scotland.

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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