MOSCOW (MRC) -- Royal DSM N.V., a Life Sciences and Materials Sciences company, said its first-quarter EBITDA from continuing operations increased 19 percent to 296 million euros from 248 million euros in the prior year, as per Nasdaq.
Sales from continuing operations for the quarter were 1.913 billion euros, up 1 percent from last year's 1.886 billion euros in the year-ago period, due to 5 percent higher volumes, offset by 3 percent lower prices and 2 percent negative foreign exchange effects. Organic growth was 2 percent.
Looking ahead, DSM maintained its full-year outlook. The company aims to deliver increased full-year EBITDA and ROCE in line with the targets set out in its "Strategy 2018: Driving Profitable Growth".
We remind that, as MRC informed before, in May 2015, Royal DSM partnered with U.S. chemical maker Ascend Performance Materials Inc. to supply compounds based on polyamide 66 (PA66). Under the agreement, Houston, Tex.-based Ascend becomes the strategic supplier to DSM for PA66 base-polymer used as raw material for Akulon PA66 compounds for engineering plastics applications. In addition, DSM will distribute Ascend’s portfolio of PA66 compounds sold under the brand name Vydyne.
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.
MOSCOW (MRC) -- Moody's Investors Service has today confirmed the Ba1 corporate family ratings (CFRs) and Ba1-PD probability of default ratings (PDRs) of major Russia-based fertilizer producer, OJSC PhosAgro, and Russian gas processing and petrochemical business, Sibur Holding, PJSC.
The outlook is negative on these ratings. At the same time, Moody's confirmed the Ba2 CFR and Ba2-PD PDR of leading potash producer, Uralkali PJSC. The ratings outlook is stable.
Confirmation of the ratings of PhosAgro, Sibur and Uralkali reflects Moody's view that the companies' businesses remain sufficiently resilient to Russia's weakening economy and finances on the back of their strong export potential, sustainably low-cost position and high margins, which are helped by the rouble depreciation and solid liquidity.
At the same time, Moody's notes that the companies' resilience does have its limits given that their assets are concentrated in Russia and the alignment of the Russian country ceiling for foreign currency debt with the sovereign rating.
Even for these companies, which have effectively dealt with their medium-term foreign currency refinancing needs, a severe deterioration of the operating environment in Russia and increasing pressures at the sovereign level might lead to a substantial weakening in their credit profiles.
Country risk combined with the companies' exposure to the weak global commodity markets and some company specific issues, like Sibur's large-scale investment projects resulting in limited credit headroom and Uralkali's higher corporate government risk, will pressure the companies' ratings in the next 12-18 months.
The negative outlook on the companies' ratings is in line with the negative outlook on the sovereign rating. A potential downgrade of Russia's sovereign rating may result in the lowering of the country's foreign and/or local currency bond ceiling and, as a result downgrades of the companies' ratings.
The negative outlook on Sibur's ratings also takes into account a delay in the company's deleveraging as it makes significant investments as part of its ZapSibNeftekhim project.
ZapSibNeftekhim's project is designed to operate a steam cracker (by Linde AG, Germany) with a capacity of 1.5 mtpa of ethylene, around 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF), along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene (by INEOS, UK) and a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands).
SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.