Sibur reports higher first-quarter petchem revenue helped by currency depreciation, favorable markets

MOSCOW (MRC) -- Sibur (Moscow), Russia’s largest integrated petrochemical company, has announced its first-quarter 2016 results with petrochemical revenue rising 15.7% year-on-year (YOY), to 48.6 billion Russian rubles (USD758.3 million) on a strong performance across all petrochemical product groups, particularly higher sales of basic polymers, as per company's press release.

The company has also increased sales of certain intermediates and chemicals on higher production compared with the first quarter of 2015.

In the first quarter of 2016, revenue from sales of petrochemical products increased by 15.7% year-on-year to RR 48,607 million on strong performance across all petrochemicals product groups. The growth was primarily attributable to higher sales of basic polymers. We increased sales of certain intermediates and other chemicals on higher production as compared to the first quarter of 2015. Growth in revenues from sales of plastics and organic synthesis products was largely attributable to higher BOPP-film sales. Increase in revenues from synthetic rubbers was largely a result of completed homologation of thermoplastic elastomers with key clients. Russian rouble depreciation strongly supported our petrochemicals products sales.

Total debt: a 14.2% decrease vs. 31 December 2015 to RR 392,267 million was attributable to the repayment of debt denominated primarily in foreign currencies, as well as to Russian rouble appreciation as RR/USD rate decreased by 7.2% to 67.6076 as of 31 March 2016 from 72.8827 as of 31 December 2015.

Net debt: a 4.3% increase vs. 31 December 2015 to RR 297,373 million, which was attributable to financing of ZapSibNeftekhim capital expenditures from the sources provided by the National Wealth Fund.

Credit lines: RR 277,479 million available under existing credit facilities denominated in Russian roubles, US dollars and euros, both short- and long-term, of which an equivalent of RR 164,113 million committed.

As MRC infromed earlier, Sibur is in talks with shareholder Sinopec about investing in a planned gas chemical plant in Russia's Far East. Sibur plans to buy gas from fields which Russia's Gazprom will develop in Eastern Siberia.

Sibur is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.
MRC

MOSCOW (MRC) - Imports of polyethylene (PE) into Ukraine increased to 106,700 tonnes in the first five months of 2016, up 38% compared to the same period of 2015. The greatest increase in demand occurred for high density polyethylene (HDPE), according to MRC DataScope.

May PE imports into Ukraine reduced significantly, but still significantly exceeded actual consumption. May imports of polyethylene dropped to 19,200 tonnes compared to 24,800 tonnes in April, most of the reduction in supply accounted for HDPE. Total PE imports into the country grew to 106,700 tonnes in January - May 2016, compared with 77,300 tonnes year on year.

Structure of PE imports over the reported period was as follows.

May imports of HDPE into the country decreased to 8,700 tonnes, compared with 13,300 tonnes in April. Local companies reduced the volume of purchases of all HDPE grades. In general, HDPE imports into the country exceeded 52,000 tonnes in January - May of this year, compared with 33,300 tonnes in the same time a year earlier.

May imports of low density polyethylene (LDPE) into Ukraine decreased to 3,600 tonnes in May because of the limited export quotas from Russian and Belarusian producers compared with 5,000 tonnes in April. Total LDPE imports into Ukraine were 26,400 tonnes in the first five months of the year, up 9% year on year.

May imports of linear low density polyethylene (LLDPE) into the country were about 5,500 tonnes, which was close to the previous month level. In general, January - May LLDPE imports into Ukraine increased to 23,800 tonnes compared with 16,600 tonnes year on year.

Import other types of polyethylene, including EVA for the period under review amounted to slightly more than 4,400 tonnes against 3,200 a year earlier.


MRC

MOSCOW (MRC) -- Evonik is conducting research into biodegradable high-strength composites, which could potentially replace metal in implants used for the internal fixation of fractured bones, said the company on its site.

Implants play a key role in supporting bones until they heal. Today’s metallic devices typically remain in the body for the rest of the patient’s life or require additional surgery for removal. By contrast, devices made with Evonik’s new composites will be absorbed by the body gradually once the bone healing process has taken place. These materials consist of polymers and of substances that naturally occur in bones. Evonik’s research is still in its early stages - however, the possible benefits for patients are already clear. Patients will no longer need to undergo additional surgical procedures to remove the implanted devices. Specific device designs may also help bones regenerate faster.

The project is one of a number currently being conducted at the Medical Devices Project House in Birmingham, Alabama, USA, which employs a team of more than 20 experts. Its mission is to develop new medical technology solutions and materials, with a particular emphasis on implants.

Medical device manufacturers use Resomer polymers marketed by Evonik’s healthcare business line to make bioabsorbable screws, pins and small plates. These are primarily used for torn ligaments in the knee or shoulder, and for fixation of smaller bones in fingers or the face.

As MRC informed earlier, Evonik Industries recently started operating a thin-film composites plant to coat membranes for use in organic solvent nanofiltration and gas separation at its Marl site in Germany.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

MRC

MOSCOW (MRC) -- Braskem Idesa, the 75-25 joint venture of Braskem and Idesa (Mexico City), will officially inaugurate Ethylene XXI, its petrochemical complex at Nanchital, Mexico, this week, said Chemweek.

"Production in Mexico raises Braskem to a new level," said Fernando Musa, CEO of Braskem, during a press conference in Mexico City on Monday evening. "We have broadened the reach of our operations."

The USD5.2-billion complex consists of an ethane cracker and three downstream polyethylene (PE) units with total production capacity of 1.05 million m.t./year. The downstream complex consists of two high-density PE (HDPE) production units and one low-density (LDPE) unit.

Half of the total output to be marketed will initially be allocated to Mexico with the rest exported to markets including North America, Central America, Europe, and potentially Asia, Musa said. However, over the next 3-5 years, the plan is for 80-90% of the total production to be sold to the domestic market, Musa said. Mexico currently imports more than 60% of its PE consumption. Braskem expects Mexico's PE demand to grow on average 3-4% over the next few years, above the 2.5-3% anticipated growth rate of the Mexican economy.

The Ethylene XXI cracker's feedstock needs are being met under a 20-year ethane supply agreement with Petroleos Mexicanos (Pemex). Braskem Idesa started HDPE production at the site in April and the LDPE plant is expected to be up and running by 22 June, said Roberto Bischoff, CEO of Braskem Idesa.

Braskem Idesa does not have plans to expand at this time, but production could potentially be hiked if additional feedstock is made available locally. "First tenders for exploration have taken place under Mexico's energy reform, however the potential for new exploration to turn up new raw material supplies is still unknown," Bischoff added.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC

MOSCOW (MRC) -- Thailand's Map Ta Phut Olefins Company (part of SCG Chemicals) has sold two July-loading solvent-MX cargoes of 2,000 mt each after restarting its aromatics plant earlier this week, sources close to the company said late Thursday, reported Apic-online.

The plant was shut two weeks ago due to a problem with the hydrogenation unit, the source said, adding that the issue had since been resolved.

The plant was now running at "close to 100%" of capacity, the source said.

The shutdown had no impact on the plant's July production, the source said, pointing to the the two cargoes sold this week.

The plant has the capacity to produce 150,000 mt/year of benzene, 70,000 mt/year of toluene and 70,000 mt/year of mixed xylenes.

Map Ta Phut Olefins Co. is 67% owned by SCG Chemicals.

As MRC wrote previously, Siam Cement Group (SCG) Chemicals' subsidiary plans to invest in a new grade of high value added (HVA) polyethylene (PE), with commercial production beginning by the end of the year, said SCG President Chonlanat Yanaranop earlier this month. SCG plans to submit a proposal at next month's board meeting for the project, Chonlanat said. No other details were given.

SCG Chemicals is a subsidiary of SCG and is one of SCG’s 3 core businesses consisting of Chemicals, Paper and Cement-Building Materials. SCG embarked upon the chemicals business in 1989. At present, SCG Chemicals manufactures and supplies a full range of petrochemical products ranging from upstream petrochemicals such as Olefins, intermediate petrochemicals such as Styrene Monomer, PTA, and MMA, to downstream petrochemicals such as Polyethylene, Polypropylene, Polyvinyl Chloride, and Polystyrene resins. SCG Chemicals is now one of the largest integrated petrochemical companies in Thailand and a key industry leader in the Asia-Pacific region.
MRC