MOSCOW (MRC) -- German chemical company Wacker Chemie AG said its third-quarter net income plunged to EUR58.2 million from EUR119.0 million reported last year. Earnings per share were EUR1.21 , compared to EUR2.43 in the prior year, said the company in its press release.
Sales climbed 10.2% to EUR1.358 billion from EUR1.232 billion in the prior year, with all divisions generating year-over-year sales increases.
Looking ahead, Wacker Chemie said group net income is projected to be somewhat lower than last year.
The company expects a slight rise in EBITDA on a comparable basis.
The company expects full-year 2015 group sales to grow by around 10%, if economic conditions do not weaken further.
In Q3 2015, WACKER POLYMERS posted total sales of EUR313.0 million (Q3 2014: EUR288.0 million), up almost 9 percent. Significantly higher volumes overall and positive exchange-rate effects were factors in this rise. The division’s sales were nearly 1 percent below the previous quarter (EUR314.6 million). Marginally lower average prices relative to the preceding quarter played a role here. WACKER POLYMERS’ EBITDA increased considerably between July and September 2015 both year over year and compared with Q2 2015. Year over year, EBITDA climbed some 34 percent to EUR64.7 million (Q3 2014: EUR48.2 million), with sales gains being one of the main reasons for this growth, and higher capacity utilization and lower raw-material costs also playing a role. WACKER POLYMERS beat its prior-quarter EBITDA figure of EUR56.8 million by around 14 percent. The EBITDA margin for the third quarter of 2015 was 20.7 percent, after 16.7 percent a year ago and 18.1 percent in Q2 2015.
As MRC reported earlier, Wacker Chemie AG launched its new production plant for ethylene-vinyl-acetate copolymer (EVA) dispersions at its Ulsan site in South Korea. The additional 40,000 tonnes from the second reactor line increases the site's EVA-dispersion capacity to a total of 90,000 tonnes per year. The production capacity of the site, thus, almost doubled, making the plant complex one of the biggest of its kind in South Korea.
Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MOSCOW (MRC) -- State Oil Co. of Azerbaijan Republic (SOCAR) has let a contract to Axens SA, Rueil-Malmaison, France, to build diesel fuel and gasoline hydrotreating units as part of the company’s ongoing modernization and expansion program at its Heydar Aliyev (formerly New Baku) refinery at Baku in Azerbaijan, said Ogj.
The companies signed a contract for the new units on Oct. 28 in Baku, SOCAR said. Axens’ scope of work under the contract will include delivery of construction and technology licensing for the two hydrotreaters, according to Rovnag Abdullayev, SOCAR’s president. A value of the contract was not disclosed.
In addition to the diesel fuel and gasoline hydrotreating units, the modernization program at Heydar Aliyev will involve construction of several other new units, including a bitumen plant, amine-treating units, and an LPG Merox unit, Abdullayev said at the contract-signing ceremony.
Most recently, SOCAR finalized a contract with Austria’s Porner Ingenieur GMBH to provide basic design works for the proposed 400,000-tonne/year grassroots bitumen plant, with Fluor Corp. to serve as contractor on the project (OGJ Online, Oct. 23, 2015; Sept. 18, 2015).
The new bitumen plant, which comes as part of the refinery’s reconstruction and modernization, is due to be commissioned in 2018. Designed to be implemented in stages during 2015-19, the refinery’s modernization and upgrading program also includes plans to renovate the refinery’s primary crude processing, catalytic cracking, and catalytic reforming units.
Once completed, the Heydar Aliyev overhaul will increase the refinery’s crude processing capacity to about 7.5 million tpy from its current 6 million-tpy capacity, resulting in 100% production of fuels that meet Euro-5 quality standards as well as high-quality raw feedstock to be transported via pipeline to an associated ethylene and polyethylene plant operated by SOCAR subsidiary Azerikimya Production Union.
The revamp program follows the Jan. 1 shutdown and subsequent merger of processing activities at SOCAR’s Azerneftyag refinery with those of the nearby Heydar Aliyev refinery as part of the company’s plan to eliminate economically inefficient production activities and management structures associated with the operation of two separate refineries.
As MRC informed earlier, INEOS Technologies is pleased to announce that it has licensed its Innovene S Process for the manufacture of medium density and high density polyethylene to SOCAR Polymer for their HDPE project in the Chemical Industrial Park located in Sumgait, Azerbaijan.
SOCAR Polymer is a subsidiary of the State Oil Company of the Azerbaijan Republic (SOCAR). The entity was formed at the end of 2013 to run investments at the Sumgait Chemical Industrial Park, a production park which intends to become a chemical hub in central Asia.
MOSCOW (MRC) -- Bashkir company "Gazprom neftekhim Salavat", one of the largest Russian petrochemical producers, has suspended its high density polyethylene (HDPE) production, according to ICIS-MRC Price reports.
Gazprom neftekhim Salavat shut down its HDPE production on 27 October because of technical issues, said the company's customers. At the same time, the reasons of the outage, as well as its duration, were not reported. The Salavat plant's annual HDPE production capacity is 120,000 tonnes.
It is also worth noting that there have been problems at Kazanorgsintez's HDPE production since the end of last week. The Kazan plant had to temporarily restrict its HDPE output because of problems with ethylene and at the plant's granulation units.
There were no reports about problems at other Russian HDPE producers (Stavrolen and Nizhnekamskneftekhim).
JSC "Gazprom neftekhim Salavat" (formerly JSC "Salavatnefteorgsintez") is one of Russia"s major petrochemical complexes. The company was integrated into JSC "Gazprom" system. The concentration of the full cycle of hydrocarbon processing, petrochemistry and mineral fertilizer production on the one site is the main advantage of GNS. The company comprises oil refinery, chemical plant, gas&chemical plant and monomer plant. The list of manufactured commodity products now includes more than 140 items, including 76 items of the main products: motor gasoline, diesel fuel, kerosene, fuel oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrene, silica gel and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols, and amines, a wide range of plastic consumer goods, surfactants and others.