Trinseo announces increase to quarterly dividend and new share repurchase program

MOSCOW (MRC) -- Trinseo, a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, has announced that its Board of Directors authorized the company to increase its quarterly dividend to USD0.36 per share, a 20% increase, as per the company's press release.

The dividend will be a cash distribution payable on July 25, 2017, to shareholders of record as of the close of business on July 11, 2017.

In addition, Trinseo’s Board of Directors authorized the repurchase of up to 2 million shares of the Company’s ordinary shares over the next 18 months. This authorization replaces the Company’s prior repurchase authorization.

"I am pleased with Trinseo’s continued commitment to balance investment opportunities with return of capital to shareholders through an increased dividend and the new share repurchase program," said Chris Pappas, President and CEO of Trinseo. "These programs underscore our confidence in our continued financial strength and the long-term outlook of our business."

As MRC informed before, Trinseo and its affiliate companies in Europe have announced price increases for all polystyrene (PS) and SAN grades. Effective July 4, 2017, or as existing contract terms allow, the contract and spot prices for the product listed below will increase as follows:

- STYRON general purpose polystyrene grades (GPPS) - by EUR45 per metric ton;
- STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR45 per metric ton;
- TYRIL SAN resins - by EUR25 per metric ton.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.7 billion in net sales in 2016, with 15 manufacturing sites around the world, and nearly 2,200 employees.
MRC

MOSCOW (MRC) -- Williams Partners L.P. has announced that it has completed the sale of all of its membership interest in Williams Olefins L.L.C., which owns an 88.46% undivided ownership interest in the Geismar, Louisiana, olefins plant and associated complex, to NOVA Chemicals for USD2.1 B in cash, subject to a working capital adjustment, reported Hydrocarbonprocessing.

Additionally, Williams Partners subsidiaries have entered into long-term supply and transportation agreements with NOVA Chemicals to provide feedstock to the Geismar olefins plant via Williams Partners’ ethane pipeline system in the US Gulf Coast. These agreements will secure a meaningful long-term fee-based revenue stream for the partnership.

"Completing this successful transaction represents another important step in our natural gas-focused business strategy to deliver predictable long-term growth as we reduce our commodity-margin exposure," said Alan Armstrong, chief executive officer of Williams Partners’ general partner. "Around 97% of our gross margins will now come from predictable fee-based sources, including the previously announced new long-term supply and transportation agreements with NOVA. We look forward to supporting NOVA’s strategy in the Gulf Coast with our highly reliable ethane pipeline system as part of this win-win transaction and agreement for both companies."

Williams Partners plans to use the cash proceeds from the Williams Olefins transaction to pay off its USD850 MM term loan and to fund a portion of the capital and investment expenditures that are a part of the partnership’s extensive growth portfolio. The Williams Companies, Inc. expects that for federal tax purposes, any taxable gain generated from the transaction will be sheltered by tax losses carried forward.

As MRC informed previously, for Nova Chemicals, this acquisition creates an opportunity to benefit from access to large US shale reserves while expanding its presence at the US Gulf Coast, a key component of the company’s long-term growth strategy, according to Todd Karran, Nova Chemicals’ president and chief executive officer.

Nova Chemical is one of the largest world's petrochemical companies, a manufacturer of polyethylene, styrene polymers, monomers, and many other related products.

Williams, headquartered in Tulsa, Okla., is one of the leading energy infrastructure companies in North America. It owns controlling interests in both Williams Partners L.P. and Access Midstream Partners, L.P. through its ownership of 100% of the general partner of each partnership. Additionally, Williams owns approximately 66% and 50% of the limited partner units of Williams Partners L.P. and Access Midstream Partners, L.P., respectively. On June 15, 2014 Williams proposed the merger of Williams Partners and Access Midstream Partners. The merger was approved by boards of each partnership and was closed in early 2015.
MRC

MOSCOW (MRC) — Saudi Aramco will meet the full August crude oil requirements of its customers in India and southeast Asia as well as four of its North Asian buyers, several sources with knowledge of the matter said on Tuesday, said Hydrocarbonprocessing.

This shows how Saudi Arabia, the world's biggest oil exporter, aims to retain market share in Asia, the region with the world's strongest demand growth. Saudi Arabia has been cutting exports to Europe and the United States to comply with a production cut deal by the Organization of the Petroleum Exporting Countries and some non-OPEC countries such as Russia.

For August, "there is no (supply) cut" even for heavier grades such as Arab Medium and Heavy crude to south Asian customers, one of the sources said. At least one of the North Asian buyers will also receive full supply of Arab Heavy crude that it has requested.

This marks a change from supply cuts to these buyers in the first half this year as Saudi Aramco cut output of cheaper heavy crude to meet its OPEC quota. Saudi Aramco is selling Arab Heavy crude in August at the narrowest discount in more than three years.

The OPEC cuts drove up prices of Middle East heavy-sour crude, or grades with a high sulfur content, pushing Asian refiners to seek substitutes from Russia, Africa and the United States. Last week, India bought its first ever US crude and its refiners plan to buy more.

Saudi continues to supply slightly more light oil to Japan, one of the sources said.

Saudi Arabia has increased its market share in Japan, its biggest Asian market, in the first half this year. Japan's imports of Saudi crude between January and June reached 1.3 MMbpd, 7.7% up on a year ago.
MRC

MOSCOW (MRC) -- Frames was awarded an order from CB&I and CTCI to design and supply an acid gas treatment unit for the Liwa Plastics Industries Complex (LPIC) in the Sultanate of Oman, said Hydrocarbonprocessing.

The unit, which is based on solid bed scavenger technology, will prevent hydrogen sulfide being emitted into the atmosphere. The acid gas treatment unit is part of Frames’ small-scale sulfur recovery portfolio, which features technologies suitable for the upstream, downstream and renewable energy industries. The unit is expected to be completed and handed over in the first half of 2018.

The LPIC project involves developing a new petrochemical complex—split into four EPC Packages—for the Oman Oil Refineries and Petroleum Industries Company (Orpic). Its primary goal is to further increase the value-added that can be derived from Omani crude oil and natural gas. It will also enable Oman to produce polyethylene for the first time.
MRC

MOSCOW (MRC) --NITC, Iran's leading oil tanker operator, said on Monday its shipments to Europe were increasing daily and the company plans to upgrade its fleet to support expansion, as per Hydrocarbonprocessing.

International sanctions on Iran were lifted in January 2016 and NITC is looking to come in from the cold after years of isolation.

Mohammad Reza Shams Dolatabadi, NITC's head of international affairs, told Reuters on the sidelines of an energy industry conference in Istanbul that the company aimed to replace some of its older tankers with new vessels.

"We have a plan for the renovation of our fleet and to buy new vessels. We’ll scrap some of our old vessels but we will not change our capacity," he said.

"We have a (renovation) plan for 5 yr, but (we are) still working to finalize that."

NITC's own operations were also hampered previously due to their difficulty in securing international insurance cover for their fleet and getting certification, a key requirement for access to many ports around the world, which tests the sea worthiness of ships.

Iran has steadily reconnected with buyers across Europe since sanctions were lifted and NITC expects to play a bigger role.

"We were active during the sanctions era in the Asian market, but we have started since last year to return to the European market as well," Dolatabadi said.

"Our ships are calling at many European ports, and the number of these shipments is increasing day by day."

He added that the company also planned to acquire liquefied natural gas (LNG) tankers, marking a new direction for the company.

"We are thinking of an LNG fleet in the future," he said.

"Iran has the largest gas reserves in the world. There are plans for production for liquefied gas, LNG, in the future. So due to that we are thinking about playing a part in the shipment of this product in the future. (It will come along) in the mid-term, three to five years," he said.

As MRC informed previously, on 3 July 2017, France's Total signed a deal with Tehran to develop phase 11 of Iran's South Pars, the world's largest gas field, marking the first major Western energy investment in the Islamic Republic since the lifting of sanctions against it. Total will be the operator with a 50.1 percent stake, alongside Chinese state-owned oil and gas company CNPC with 30%, and National Iranian Oil Co subsidiary Petropars with 19.9%.
MRC