Mexichem Q3 net income rises 2% amid currency volatility

МОSCOW (MRC) -- Mexichem announced its unaudited results for the 3Q15 and Nine Months of 2015, as per Streetinsider.

Revenue and EBITDA growth figures do not reflect the underlying demand for Mexichem’s products that enabled us to report improved EBITDA margins in this year’s third quarter. The effect of currency translations reduced revenues by USD157 million in this year’s third quarter, shaving approximately 12 percentage points from our reported year-on-year revenue comparisons.

Vinyl Business Group succeeded in reporting double digit revenue growth and more than doubling their EBITDA results compared to the similar period last year. EBITDA margin for that Business Group expanded by over 700 basis points, benefitting from significant PMV production growth, the addition of Vestolit and lower input costs that offset part of the impact of lower PVC selling prices tied to the decline in oil prices. In particular, we were pleased with the more than 40% increase in VCM production volume from our PMV joint venture, which forms part of the foundation of our vertical integration strategy. PMV production levels resulted in positive EBITDA for the third quarter, a significant recovery from the comparable period last year. It is noteworthy to mention that this is the first quarter since the startup of our PMV JV in which both Mexichem’s former operations and Pemex’s former operations were profitable.

Mexichem’s net debt to EBITDA ratio at quarter end was 2.1, stable with this year’s second quarter, and we expect to be closer to 2.0 by the end of this year. Joint venture capital expenditures related to the construction of our Ingleside Texas-based ethylene cracker with OxyChem, represented approximately 60% of third quarter capital spending and continued to progress on schedule and on budget. Investments in our PMV joint venture accounted for 7% of our third quarter capex and the remaining 33% was spent on maintenance and certain quick return organic growth projects.

Revenues in 3Q15 increased USD17 million, or 1%, year-on-year to USD1.4 billion, due to a combination of acquisition and organic growth. Specifically, 3Q15 year-on-year revenue growth resulted from an increase of USD59 million, or 12%, in Vinyl Group sales driven by the consolidation of Vestolit, and the positive performance of PMV (JV with Pemex) and USD152 million additional revenues in our Fluent Group coming from the consolidation of Dura-Line. Those increases were offset by an aggregate decline of USD174 million in the reported revenues of Fluent Europe and Fluent Latam, mainly related to the appreciation of the US dollar against the Euro and almost all the currencies in Latin America combined with a decline in revenues from Venezuela of USD21 million as a result of the reevaluation of our operations at a currency rate of 198 bolivars per dollar.

On a constant currency basis and excluding PMV and Venezuela, total third quarter 2015 sales would have increased USD174 million or 12% year-on-year. Foreign currency translations reduced total sales by USD157 million, lowering reported sales in Fluent, Fluor and Vinyl by USD149 million, USD5 million, and USD3 million, respectively.

Revenues for 9M15 increased USD196 million, or 5%, year-on-year to USD4.4 billion, due to a combination of acquisition and organic growth. On a constant currency basis and excluding PMV and Venezuela, total sales would have increased 16% year-on-year.

Mexichem’s presence in the United States has significantly increased following the Dura-Line acquisition, representing 17% of sales in 3Q15 compared to 11% in 3Q14. In 3Q15, Brazil represented 6% of total sales (3% of EBITDA).

As MRC informed earlier, Mexichem, Mexican PVC and specialty chemicals maker, has announced that it completed the acquisition of Vestolit GmbH on 1 December 2014.

Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin AmericaпїЅs largest manufacturer of PVC pipe, vinyl resins and compounds. The company has annual revenues of more than USD5 billion and has been listed on the Mexican Stock Exchange for more than 30 years.
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MOSCOW (MRC) -- Technip has been awarded by Tecnicas Reunidas a significant contract to supply three hydrogen reformers as part of the hydrogen production facility at Petronas’ refinery and petrochemical integrated development (RAPID) project located in the state of Johor, Malaysia, said the company on its site.

As the heart of the hydrogen plant, the reformers will produce 344,500 Nm3/h of hydrogen and syngas products. It will supply high-quality export steam to the refinery steam network. The supply of the reformers is based on Technip’s proprietary top-fired steam methane reforming technology. The reformers are expected to come on-stream in 2018.

RAPID is Petronas’ largest green-field downstream undertaking in Malaysia, and along with its six major associated facilities, forms the Pengerang Integrated Complex (PIC). The associated facilities are the Pengerang co-generation Plant, LNG re-gasification terminal, air separation unit, raw water supply project, the liquid bulk terminal and the central and shared utilities and facilities.

Early involvement represents a strategic focus for Technip. Prior to the supply of the hydrogen reformers, Technip was involved in the front-end engineering design for the RAPID project.

The reformer project will be executed by Technip’s office in Zoetermeer, the Netherlands. With more than 260 hydrogen production units licensed worldwide, Technip has been consistently recognized as the market leader in this technological field.

"We are delighted that our proprietary steam methane reforming technology has been selected for this Petronas RAPID site, which will be one of the largest hydrogen and syngas production facilities in the Asia Pacific region," said Stan Knez, president of Technip Stone & Webster Process Technology.

As MRC informed earlier, Technip has been awarded a contract by Westlake Chemical to provide detailed engineering and procurement services to expand the recovery section of Westlake’s Petro 1 ethylene plant at its complex in Sulphur, Louisiana.

Technip is a world leader in project management, engineering and construction for the energy industry.
From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 37,500 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges. Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
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MOSCOW (MRC) -- BASF, the world's petrochemical major has committed itself to spend a total of at least EUR6 billion on investments, upgrading and maintenance measures between 2016 and 2020 at the Ludwigshafen site, as part of a new agreement, as per the company's press release.

Last week, the company and employee representatives at BASF SE in Ludwigshafen signed a new site agreement. The agreement, titled "Meeting the challenges of constant change together," applies to the approximately 36,000 employees of BASF SE at the site. It will run for five years (from January 1, 2016 until December 31, 2020) and follows on from the existing site agreement, which expires at the end of 2015.

The company will continue to forgo forced redundancies for the duration of the agreement.

Furthermore, BASF SE "Economic and social changes are occurring ever faster and are becoming less and less predictable. With the new site agreement, we are creating a framework that offers both flexibility and reliability and will enable the Ludwigshafen site to remain competitive - now and in the future. We rely on our team of dedicated and skilled employees and we will continue to substantially invest in the largest, integrated Verbund site of BASF Group in the coming years," said Margret Suckale, member of the Board of Executive Directors of BASF SE.

As MRC wrote before, BASF is significantly expanding its production capacity for about 20 specialty amines at its Verbund site in Ludwigshafen. BASF says it will invest a double-digit million euro amount in expanding current production facilities, which are planned to go on stream gradually by early 2017. The specialty amines are especially used for the manufacturing of coatings, lubricants, crop protection products and pharmaceuticals.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of over EUR74 billion in 2014 and over 113,000 employees as of the end of the year.
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MOSCOW (MRC) -- BASF has strengthened its comprehensive range of amines with a new product: the cycloaliphatic diamine Methylcyclohexyldiamine (MCDA), which the company markets under the brand name Baxxodur EC210, as per the company's press release.

Used as an aminic hardener in epoxy resin-based systems (epoxy systems), Baxxodur EC210 improves, for example, the manufacturing of rotor blades for wind power plants and coatings for industrial floors and bridges. BASF is currently researching additional application areas of Baxxodur EC210.

Baxxodur EC210 is higher yielding, lower viscous, and can be processed longer than comparable products. Furthermore BASF’s customers from the composite and construction industry also like the delivery reliability that the company offers due to its backward integration. BASF produces Baxxodur EC210 at its Ludwigshafen site in Germany. The product is available in commercial quantities.

With about 200 different amines, BASF has the world’s most diverse portfolio of this type of chemical intermediates. Along with alkyl-, alkanol- and alkoxyalkylamines, the company offers heterocyclic and aromatic as well as specialty amines. The range is completed by an expanding portfolio of chiral amines of high optical and chemical purity. The versatile products are used mainly to manufacture process chemicals, pharmaceuticals and crop protection products, as well as cosmetic products and detergents. They also serve to produce coatings, special plastics, composites and special fibers.

As MRC wrote before, BASF will expand its emollients and waxes production capacity with a new plant at its site in Jinshan, Shanghai. The investment, complementing the current production of wax esters, emulsifiers and primary surfactants in Jinshan, will further enhance BASF’s local production and better serve the growing personal care market in Asia Pacific.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of over EUR74 billion in 2014 and over 113,000 employees as of the end of the year.
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MOSCOW (MRC) -- Nippon Shokubai Europe has awarded a detailed engineering, procurement and construction management contract to Jacobs Engineering for the planned expansion of a superabsorbent polymer (SAP) plant and the construction of a new acrylic acid (AA) facility at Nippon's site in Zwijndrecht, Belgium, as per GV.

The EUR350-million project involves increasing SAP production capacity by 100,000 t/y and building a new 100,000-t/y AA unit. Expansion of the SAP plant will raise Nippon's total SAP capacity in Belgium to 160,000 t/y.

Mechanical completion is expected in October 2017 and commercial operations are planned for May 2018.

Upon completion of the project, the Nippon Shokubai group's global SAP capacity will be increased to 710,000 t/y and global AA capacity will be raised to 880,000 t/y. Value of Jacob's contract was not disclosed.

As MRC wrote previously, in summer 2013, Nippon Shokubai received a new "lift of restrictions," allowing the company to resume production at a second acrylic acid unit at its Himeji complex in Japan. Two separate explosions at its Himeji site in September 2012 forced the company to stop production of acrylic acid and superabsorbent polymers and resulted in the suspension of most operations at Himeji.

Nippon Shokubai produces one fifth of the global volume of superabsorbent polymers and it is one of the world's biggest makers of acrylic acid, the main ingredient of a resin called SAP, which is used in diapers
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