Sasol posts 6pc rise in earnings

MOSCOW (MRC) -- Petrochemicals Company Sasol reported a 6% rise in first-half earnings after higher sales and chemical prices helped offset the impact of falling oil prices, said Customstoday.

The company said headline earnings per share rose to R32, the middle of the range it flagged to the market. Sasol also cuts its interim dividend by 12.5%, a move it had previously signalled, to save cash in a volatile environment.
Sasol, the world’s top maker of motor fuel from coal, said it had changed its progressive dividend policy to a more fluid payout based on headline earnings. It declared an interim dividend of R7 per share.

"They didn’t want to make the first reduction to the dividend too aggressive because they wanted to give the market a bit more confidence," said Nedbank Capital analyst Mohamed Kharva.

Sasol shares rose 1% to R400 on Monday but they have lost about 36% of their value from all-time highs in June 2014. The company said it expected various initiatives to result in savings of R4bn (USD332m) "by financial year 2016 off a 2013 cost base".

Sasol, which makes about 40% of its earnings from oil, said it expects the average Brent crude oil price to be at least 30% lower in the second half of its financial year compared to the first. Brent crude fell 19% in the reporting period.

The weakness of the rand boosted profit as the company pays its costs in rands while selling its products in dollars.
Brent crude oil, in oversupply, fell to USD59 a barrel on Monday. But it rose by almost a third between January and February on the back of Middle East supply disruptions, strong winter demand and high refinery margins.

As MRC informed before, KBR was awarded a contract from INEOS and Sasol to provide engineering, procurement, and construction (EPC) services for a new high-density polyethylene (HDPE) facility to be located at INEOS's Battleground complex in La Porte, Texas.

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) - Production of high density polyethylene (HDPE) in Russia decreased to 143,000 tonne in January-February 2015, down 28% year on year. The decrease in HDPE production resulted from a long time shutdown of Stavrolen, according to MRC ScanPlast.

February HDPE production in the country fell to 70,000 tonnes, compared to 73,000 tonnes a month earlier, because of the calendar factor.
Russian producers this year have increased the level of capacity utilisation, however, this factor can not compensate for the long time shutdown of the second largest HDPE producer in Russia - Stavrolen. Structure of HDPE production over the reported period looked as follows.

Russia's largest producer of polyethylene - Kazanorgsintez increased its capacity utilisation in February, having produced 45,200 tonnes of HDPE in February 2015, compared with 44,800 tonnes in January. The producer's HDPE production over two months exceeded 90,000 tonnes, compared with 85,100 tonnes in the same period of 2014.

Nizhnekamskneftehim last month produced 17,200 tonnes HDPE, compared with 18,800 tonnes a month earlier. Total HDPE production over two the first two months of the year at the plant was about 36,000 tonnes, compared with 33,700 tonnes year on year.
"Gazprom neftekhim Salavat" in February had to shut its HDPE production on technical problems; last month's HDPE productin at the plant decreased to 7,600 tonnes, compared with 9,400 tonnes in January. The producer's HDPE production over the first two months of the year was 17,000 tonnes, which is close to the output in the same time a year earlier.

As it was written earlier, Stavrolen because of the accident in the workshop production of ethylene on 26, February, had to suspend production of polyethylene. According to unofficial information, the company plans to resume production of HDPE in April of this year.
Its annual production capacity is 300,000 tonnes.
MRC

MOSCOW (MRC) -- Royal DSM, the Life Sciences and Materials Sciences company, and CVC Capital Partners (CVC), one of the world’s leading investment advisory firms, has announced a partnership for DSM’s activities in Polymer Intermediates (caprolactam and acrylonitrile) and Composite Resins through the formation of a new company, provisionally called NewCo, reported DSM on its site.

Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board of Royal DSM said: "This proposed transaction delivers on the strategic actions DSM announced for these businesses in November 2014 and is a decisive step in further optimizing our portfolio and reducing our cyclicality. We have found a good partner in CVC after a careful process in which we evaluated all options. We believe the partnership with CVC is the best way forward for these businesses. NewCo will operate as an independent, dedicated company under the leadership of CVC. DSM can now focus fully on improving the operational performance of its Nutrition and Performance Materials businesses as well as benefitting from the future value creation in this new venture. This transaction is geared towards value creation for these businesses and is consistent with our commitment to continue to generate value for our stakeholders and deliver on our strategy."

For DSM, this proposed transaction is a logical step in the execution of its strategy as Polymer Intermediates (caprolactam, acrylonitrile) and Composite Resins no longer fit with its more resilient portfolio in Nutrition and Performance Materials. The partnership with CVC allows DSM to further reduce the cyclicality of its portfolio, secure a long-term competitive supply position of caprolactam for DSM Engineering Plastics and fully focus on the Nutrition, Performance Materials and Innovation activities complemented by accelerated actions to improve efficiencies and reduce costs.

As a 35% shareholder in NewCo, DSM will be able to benefit from any improvements in the businesses that will become part of NewCo.

NewCo will continue to supply at least 80% of DSM Engineering Plastics’ caprolactam needs in Europe and North America for the coming 15 years via a drawing rights contract, effectively maintaining DSM Engineering Plastics’ backward integration. In China DSM Engineering Plastics will continue to be supplied by NewCo as today. This secures an ongoing strategic and competitive position for the polyamide 6 business in which DSM is a global leader.

NewCo will operate as an independent company with three business units: caprolactam, acrylonitrile and composite resins. Pro-forma third party sales of NewCo amounted to EUR2.1 billion in 2014 with an EBITDA of EUR106 million, excluding non-controlling interests (DNCC, JDR and Sitech) of €19 million and including the caprolactam licensing income.

As MRC reported earlier, in October 2014, 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.

CVC Capital Partners (CVC) is one of the world's leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of over 20 offices and over 300 employees throughout Europe, Asia and the US. Currently, CVC manages funds on behalf of over 300 investors from North America, Europe, Asia and the Middle East, who entrust their capital to CVC for periods of 10 years or more.

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.
MRC

MOSCOW (MRC) -- Kronos Worldwide, Inc. reported net income for the fourth quarter of 2014 of USD19.9 mln, compared to USD2.9 million, in the fourth quarter of 2013.

For the full year of 2014, Kronos Worldwide reported net income of USD99.2 million, compared to a net loss of USD102.0 million in 2013. Comparability of the Company's results for the fourth quarter periods was impacted by improved income from operations in 2014, principally due to lower raw materials costs and higher production and sales volumes, partially offset by lower average TiO2 selling prices in 2014, as discussed further below.

Comparability of the full year periods was impacted by improved income from operations in 2014, principally due to lower raw materials costs and higher production volumes, partially offset by lower average TiO2 selling prices in 2014. Comparability of the Company's results was also impacted by unabsorbed fixed production and other costs recognized in the 2013 periods associated with the labor lockout at our Canadian plant in the second half of 2013. In addition, comparability of the Company's results was impacted by a litigation settlement charge in the third quarter of 2013.

Net sales of USD373.5 million in the fourth quarter of 2014 were USD4.9 million, or 1%, higher than in the fourth quarter of 2013. Net sales of USD1,651.9 million in the full year of 2014 were USD80.5 million, or 5%, lower than in the full year 2013. Net sales increased in the fourth quarter of 2014 as compared to the fourth quarter of 2013 primarily due to higher sales volumes largely offset by lower average TiO2 selling prices. Net sales decreased in the full year of 2014 primarily due to lower average TiO2 selling prices.

The Company's average TiO2 selling prices decreased 10% in the fourth quarter of 2014 as compared to the fourth quarter of 2013, and decreased 6% for the full year as compared to 2013. The Company's average TiO2 selling prices at the end of 2014 were 9% lower than at the end of 2013, with lower prices in all major markets, most notably in certain export markets. TiO2 sales volumes in the fourth quarter of 2014 were 14% higher than in the fourth quarter of 2013, while sales volumes for the full year 2014 remained relatively stable compared to 2013 as slightly higher sales in Europe were offset by lower sales in certain export markets. Fluctuations in currency exchange rates also impacted net sales comparisons, decreasing net sales by approximately USD11 million in the fourth quarter and increasing net sales by approximately USD12 million in the full year 2014 as compared to the comparable periods in 2013. The table at the end of this press release shows how each of these items impacted the overall change in sales.

As MRC informed before, Kronos and Polyalt, major players in the Russian sheet polycarbonate (PC) market, which formed Scientific and Production Association in January 2014, plan to increase their production and to expand its product range at the Moscow plant.

Kronos Worldwide, Inc (Kronos) is one of the largest producers of titanium dioxide pigment (TiO2). The company produces more than 40 grades of TiO2. The company deliveres TiO2 to more than 100 countries in the world, but most of them are supplied to Europe and North America.

MRC

MOSCOW (MRC) -- Dow Chemical Company has signed a long-term agreement with a new wind farm, currently under development in South Texas by a subsidiary of Bordas Wind Energy, LLC, a joint venture between MAP and Enerverse, LLC., said the company in its press release.

The wind farm, to be complete in first quarter 2016, will span nearly 35,000 acres, and will supply Dow’s Freeport Texas Manufacturing facility with 200 MW of wind power annually, equivalent to the amount of electricity needed to power more than 55,000 homes. As a direct result, Dow is the first company in the U.S. to power a manufacturing site with renewable energy at this scale, and will become the third largest corporate purchaser of wind energy in the United States. As one of the largest industrial energy consumers in the world, Dow has consistently been on the forefront of new energy technology improvements. Dow is on track to meet its 2025 renewable energy goal as part of its Sustainability Goal commitments.

As MRC informed before, Dow Chemical Company in partnership with its joint venture, DowAksa, and a consortium of composites-related businesses, academic leaders and government organizations, is pleased to have been selected by the Obama Administration to establish the Institute for Advanced Composites Manufacturing Innovation (IACMI).

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC