Akzo Nobel Q2 profit misses forecasts, Burgmans to resign

MOSCOW (MRC) -- Dutch paintmaker Akzo Nobel, grappling with the consequences of rebuffing a 26.3 billion euro (USD30.63 billion) takeover bid by U.S. rival PPG Industries, on Tuesday announced earnings below market expectations and said Chairman Antony Burgmans will resign at the end of his term in April 2018, as per Reuters.

Akzo said its core profit in the second quarter fell 6 percent to 461 million euros, due to weak demand in various markets and higher raw material costs.

Analysts polled by Reuters had forecast operating profit, excluding incidental items, of 496 million euros. Akzo Nobel reaffirmed its promise of better results, made when it rejected the bid by PPG earlier this year, a move which drew strong criticism from major shareholders.

Disgruntled shareholders, led by activist hedge fund Elliott Advisors, have been pushing for a shareholders meeting to vote on the position of Chairman Antony Burgmans, who they see as the mastermind of Akzo's refusal to talk to PPG.

Akzo said in a statement that Burgmans would step down when his current term ends in April 2018. Plans to spin off its Speciality Chemicals division were on track, the company added.

Last week, the maker of Dulux paints said it would replace chief executive Ton Buechner with chemicals division head Thierry Vanlancker, after Buechner abruptly resigned due to health reasons.

An extraordinary shareholders meeting was scheduled for Sept. 8 to vote on the appointment of Vanlancker and provide further explanations about its refusal of PPG and seek approval for the spin off of the special chemical business, it said.

Akzo Nobel said it has created a committee devoted to improving relations with its shareholders, with a team from JP Morgan Cazenove appointed as advisors.

As MRC informed earlier, AkzoNobel announced the acquisition of UK-based Flexcrete Technologies Ltd and an agreement to acquire French manufacturer Disa Technology (Disatech).

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) — The Saudi Aramco Mobile Refinery (SAMREF) at Yanbu is operating normally after a fire hit a power transformer at the gate of the facility on Saturday, a spokesman for a Saudi government body was quoted as saying on the state news agency Reuters.

Operations are ongoing and have not been affected by the incident, which happened due to hot weather, Abdulrahman Al-Abdulqader, the spokesman for the Royal Commission for Jubail and Yanbu, which manages and operates industrial cities in Saudi Arabia. The fire broke out at 21:22 local time, according to the spokesman.

SAMREF is a JV between Saudi Aramco and US ExxonMobil which operates the 400,000-bpd crude oil refinery in Yanbu on the Red Sea coast of Saudi Arabia.

A SAMREF spokesman could not be immediately reached for comment.
MRC

MOSCOW (MRC) — India has decided to set up a panel headed by Finance Minister Arun Jaitley to expedite the sale of government's stake in refiner Hindustan Petroleum Corp to explorer Oil and Natural Gas Corp, Oil Minister Dharmendra Pradhan said, as per Indiatimes.

The Indian cabinet last week decided to sell the government's 51.1% stake in refiner and fuel retailer HPCL to oil producer ONGC. The panel "will help in taking quick decision with regard to the timing, price, terms and conditions and other related issues to the transaction," Pradhan told lawmakers in a statement.

Pradhan reiterated that the integration of the two companies will be completed in the current fiscal year. Post-acquisition by ONGC, HPCL can still retain its brand identity, he said.

The acquisition will help create a vertically integrated 'oil major' with a presence across the hydrocarbon chain. ONGC's margins have been hit by falling oil prices while improved gross refining margins and rising local fuel sales have help boost profits of HPCL.

"This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralize the impact of global crude oil price volatility," Pradhan said.
MRC

MOSCOW (MRC) -- The Siam Cement Public Co. Ltd (SCC) has announced that its wholly-owned subsidiary, Vina SCG Chemicals Co. Ltd (VSCG), will proceed with the investment in Long Son Petrochemicals Co. Ltd (LSP), said Plastemart.

The final contract signing is expected to be in H2-17, with commercial operation expected to commence in H1-22. The total project cost is estimated at USD5.4 bln and financing will be with a combination of foreign denominated debt and equity at 60:40.

LSP is positioned as Vietnam’s first petrochemicals complex. The project possesses competitive aspects ranging from integration, economies of scale, and flexible feedstock. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included at approximately 30% of the total investment cost.

At the heart of the project is a 1 million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tpy depending on the feedstock mix. LSP’s technology will be comprised of proven processes from leading world class licensors. The feedstock will consist of locally sourced ethane, and imported propane and naphtha, on secured contracts and at competitive market prices. This will facilitate the highly flexible cracker that is able to utilise gas up to 80% for cost optimisation. Furthermore, the downstream polyolefins operations will be of similar scale to the cracker, consisting of high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP) plants.

MRC

MOSCOW (MRC) -- The Port of Corpus Christi announced the approval of a long-term lease agreement with Maverick Terminals Corpus LLC, a subsidiary of Howard Energy Partners, said Hydrocarbonprocessing.

The 30-yr lease agreement was approved unanimously by port commissioners for approximately 41 acres of land on the north side of the Corpus Christi Ship Channel in the Inner Harbor.

With the growth in both Eagle Ford and Permian Basin productions and the growing global energy demand in general and in particular in Mexico, Corpus Christi is fast emerging as the Energy Port of the Americas. As the largest refining center in close proximity to Mexico Corpus Christi continues to see large investments in supporting the transportation of US energy to Mexican consumers. Howard Energy Partners, a full-service midstream company based in San Antonio, has emerged as a strong player in the energy space and continues to demonstrate leadership in developing projects on both sides of the border.

Howard Energy Partners plans to design, construct, and operate a rail terminal, and a petroleum and petroleum products storage facility on the leased property. Further, Howard Energy Partners intends for this facility to connect with its proposed Dos Aguilas pipeline to Monterrey, Mexico. As part of the lease agreement terms the Port of Corpus Christi Authority will design and construct a new oil dock, Oil Dock 20.

The Oil Dock 20 facility will initially serve Mexico’s transportation fuel demands by rail with an estimated target of at least two to three unit trains per week. Once the Dos Aguilas pipeline is permitted, constructed, and in-service, significantly more volume is anticipated. Further, the Oil Dock 20 is targeting crude exports to international markets and will have Suez-max capability.
MRC