LyondellBasell nixes master-limited partnership

MOSCOW (MRC) -- LyondellBasell Industries, the world’s largest producer of polypropylene (PP) plastic, ruled out separating some of its assets into a tax-advantaged master-limited partnership -- for now, said Hydrocarbonprocessing.

After 18 months of study, management concluded that concerns about adding a so-called MLP outweigh the potential benefits, Sergey Vasnetsov, a senior vice president, said on a webcast of the company’s investor day in New York. LyondellBasell, which is based in Rotterdam and run from Houston, could re-evaluate its position in the future, he said.

"We are not closing the door completely," Vasnetsov said. LyondellBasell had discussed the possibility of creating an MLP since a 2012 ruling by the Internal Revenue Service cleared the way for competitor Westlake Chemical to create the tax-advantaged structure for its ethylene assets. MLPs are common in the energy-pipeline industry and generally eliminate income taxes at the corporate level.

Transferring assets such as ethylene and methanol plants, as well as the Houston refinery, to an MLP would add volatility to LyondellBasell earnings, Vasnetsov said. The MLP would be small-scale relative to the current company, which is currently generating "prolific" free cash flow and has access to inexpensive debt, he said.

LyondellBasell plans to use free cash for share buybacks and gradual dividend increases that benefit shareholders in the near term rather than investing in big capital projects such a new ethylene plant, Vasnetsov said. While the company regularly evaluates acquisition opportunities, no large deals are planned currently, he said.

Nearly USD2 billion in expanded and new plants being built from 2012 to 2019 could add as much as USD1.8 billion to annual earnings before interest, taxes, depreciation and amortization, the company said in a slide presentation. That includes about USD550 million in Ebitda from a planned propylene oxide plant and a similar amount from three ethylene expansions that haven’t yet started.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) -- Axiall Corporation reported net sales of USD947.6 million for the first quarter of 2015, compared to net sales of USD993.7 million for the first quarter of 2014, said the company.

The company reported a net loss attributable to Axiall of USD10.6 million, or a USD0.15 loss per diluted share, for the first quarter of 2015, compared to a net loss attributable to Axiall of USD11.6 million, or USD0.17 loss per diluted share, for the first quarter of 2014.

The company reported an Adjusted Net Loss of USD3.6 million and an Adjusted Loss Per Share of USD0.05 for the first quarter of 2015, compared to an Adjusted Net Loss of USD5.3 million and an Adjusted Loss Per Share of USD0.08 for the first quarter of 2014. The company reported Adjusted EBITDA of USD83.2 million for the first quarter of 2015, compared to Adjusted EBITDA of USD67.6 million for the first quarter of 2014.

"Our first-quarter results were primarily driven by higher operating rates and lower ethylene and natural gas costs compared to the first quarter of last year. The benefit from these impacts was partially offset by lower caustic and vinyl prices," said President and CEO Paul Carrico. "In our Building Products segment, we experienced volume growth in both the U.S. and Canadian markets, but this was more than offset by the impact of a weaker Canadian dollar compared to the same period last year."

In the Chlorovinyls segment, first quarter 2015 net sales were USD648.4 million compared to USD682.2 million during the first quarter of 2014. This net sales decrease was primarily due to lower vinyl prices, driven by lower feedstock pricing; and lower ECU values, especially with respect to caustic soda pricing. These unfavorable factors were partially offset by higher operating rates and related sales volumes, as the first quarter of 2014 was impacted by an extended outage at our PHH VCM manufacturing facility.

As MRC informed earlier, Axiall continues to pursue its proposed 1 mln tpa ethane cracker in Louisiana. This is to meet the company's requirement for cheap ethylene to remain competitive in the chlorovinyls business.

Axiall Corporation is a leading integrated chemicals and building products company. Headquartered in Atlanta, Georgia, Axiall has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers.
MRC

MOSCOW (MRC) -- Al Waha Petrochemical has restarted its polypropylene (PP) plant, according to Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant restarted over the weekend. It was shut for maintenance turnaround.

Located at Al-Jubail in Saudi Arabia, the plant has a production capacity of 450,000 mt/year.

As MRC informed previously, the world-scale petrochemical complex in Jubail Industrial City in Saudi Arabia has a capacity of 467,000 of propylene utilising oleflex technology, which serves as a feedstock for the 450,000 PP unit. The plant is considered to be largest, producing high-quality polypropylene using LBI's technology, sphereizone.

Al Waha Petrochemicals Company is owned by Sahara Petrochemicals Company, which holds 75% of its share capital with LyondelBasell owning 25%.
MRC

MOSCOW (MRC) -- Dutch chemicals and polymers maker LyondellBasell Industries, the world’s biggest maker of polypropylene plastic, has reported that first-quarter net income increased to USD1.16 billion or USD2.41 per share from USD944 million or USD1.72 per share in the prior-year quarter, as per RTT News.

Income from continuing operations grew to USD1.17 billion or USD2.42 per share from USD943 million or USD1.72 per share last year.

Results for the latest quarter include a USD92 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment (USD58 million after tax).

Excluding items, adjusted income from continuing operations was USD1.23 billion or USD2.54 per share, compared to USD943 million or USD1.72 per share in the year-ago quarter.

Sales and other operating revenues for the quarter declined to USD8.19 billion from USD11.14 billion in the same quarter last year. Analysts expected revenue of USD9.48 billion for the quarter.

Looking ahead, CEO Bob Patel said, "Planned and unplanned industry downtime has continued to support polyolefins pricing. Additionally, in the U.S., NGL feedstock inventories stand at or near record levels, production has remained strong, and NGL prices are low. During the quarter, we expect our Intermediate and Derivatives segment to benefit from normal seasonal trends. Thus far, Refining industry spreads have declined versus the first quarter but remain healthy."

As MRC informed previously, in November 2014, LyondellBasell Industries said "tight" markets for its products may stall the narrower margins that it expects will ultimately come from lower oil prices.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) -- Equate Petrochemical Company, Kuwait’s first international petrochemical joint-venture, has taken off-stream its No.2 monoethylene glycol (MEG) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Kuwait informed that the plant was shut on April 25, 2015. The plant is likely to restart early next week.

Located in Shuaiba, Kuwait, the plant has a production capacity of 650,000 mt/year.

As MRC informed earlier, in late 2014 - early 2015, Equate successfully entered its final stage of the turnaround’s operations relevant to a number of industrial units for ethylene, polyethylene and ethylene glycol.

Established in 1995, EQUATE Petrochemical Company is an international joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Commencing production in 1997, EQUATE is the single operator of a fully integrated world-scale manufacturing facility producing over 5 million tons annually of high-quality petrochemical products which are marketed throughout the Middle East, Asia, Africa and Europe.
MRC