Sibur says 2018 net profit down 8%, hit by weaker rouble

MOSCOW (MRC) -- Russia’s largest petrochemicals company, Sibur, suffered an almost 8% drop in net income last year to 110.8 billion roubles (USD1.7 billion), it said, citing currency weakness and a disposal that had boosted the previous year’s numbers, as per Reuters.

The weaker rouble, which increases debt held in other currencies, helped to lift Sibur’s net debt to 317.6 billion roubles, up by 20 percent from 2017.

Sibur has been preparing an initial public offering (IPO) that could raise as much as USD3 billion.

Businessman Leonid Mikhelson, the head of and a major shareholder in Russia’s largest gas producer Novatek, owns 48.5 percent of Sibur, which is the largest petrochemicals producer in Eastern Europe.

The company said 2018 earnings before interest, tax, depreciation and amortisation (EBITDA) rose last year by a quarter to 201 billion roubles, a record high, on revnue also up 25 percent at 568.65 billion roubles.
MRC

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus increased to about 99,500 tonnes in 2018, up 4.2% year on year, compared to the same period of 2018. The greatest increase in imports accounted for homopolymer PP, according to MRC DataScope.

December PP imports to Belarus were about 9,000 tonnes, compared to 7,600 tonnes a month earlier, local companies raised their purchasing of propylene homopolymers (homopolymer PP) in Russia. Total PP imports into the country reached 99,500 tonnes in 2018, compared with 95,500 tonnes year on year. The demand for homopolymer PP decreased, but demand for propylene copolymers decreased.

The structure of PP imports by grades looked the following way over the stated period.

December imports of homopolymer PP to the Belarusian market increased to 7,000 tonnes from 5,000 tonnes a month earlier, shipments of homopolymer PP from Russia decreased. Overall imports of homopolymer PP reached 69,100 tonnes in 2018, up by 7.4% year on year. Russian producers with the share of about 88% of the total shipments were the key suppliers.

December imports of propylene copolymers to Belarus were 2,000 tonnes versus 2,700 tonnes a month earlier, local companies decreased their procurement of injection moulding statistical copolymers (PP random copolymers) in Russia. Total imports of propylene copolymers in the country reached 30,300 tonnes in 2018, down 2.5% year on year.

MRC

MOSCOW (MRC) -- Russia's output of chemical products rose in January 2019 by 0.2% month on month. This figure increased by 2.7% in 2018, according to Rosstat's data.

According to the Federal Service of State Statistics, last month's production of basic chemicals increased by 0.2% from January 2019, up by 9.3% from December 2018. Last year, the output of chemical products and substances grew by 2.7%.

January ethylene imports was 275,000 tonnes from 274,000 tonnes and 278,000 tonnes in January and December 2018, respectively. 2.999,000 tonnes of ethylene were produced in 2018 in Russia.

Benzene production last month amounted to 122,000 tonnes against 130,800 tonnes and 124,000 tonnes in January and December a year earlier. Total production of this product for the entire last year reached 1.406,000 tonnes.

January production of sodium hydroxide (caustic soda) was 110,000 tonnes (100% of the basic substance) against 113,000 tonnes and 115,000 tonnes in January and December 2018. Overall output of caustic soda grew to 1.279,000 tonnes in January-December 2018, up by 6.3% year on year.

Last month's production of mineral fertilizers was 2,019,000 tonnes (in terms of 100% nutrients) versus 2.121,000 tonnes in January and December 2018. Overall, Russian plants produced over 22.870,000 tonnes of fertilizers last year.
MRC

MOSCOW (MRC) -- Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine's largest petrochemical plant, had resumed operations at its olefins complex by 20 February, after the forced outage, reported MRC.

A plant's source said Karpatneftekhim had resumed ethylene production by 20 February, after a long shutdown, which started on 12 January and was caused by a fire on the pipeline. The Ukrainian producer also launched its high density polyethylene (HDPE) production, which was shut along with the ethylene unit.

The plant's polyvinyl chloride (PVC) production was not shut and was partially supported by shipments of ethylene from Hungary.

As reported earlier, Karpatneftekhim resumed operations on 9 June 2017, after a five-year outage. Besides, the scheduled turnaround at the plant's HDPE and PVC production capacities was conducted last year, it began on 5 November and was quite long. Karpatneftekhim had resumed its PVC production by 7 December, the start-up of its HDPE production began 10 December.

Karpatneftekhim is one of the largest enterprises of Ukraine's petrochemical complex. Currently, the plant can produce annually 300,000 tonnes of PVC, 200,000 tonnes of caustic soda, about 180,000 tonnes of chlorine, as well as 250,000 tonnes of ethylene and 100,000 tonnes of polyethylene.
MRC

MOSCOW (MRC) -- Last year's imports of polyethylene (PE) into Kazakhstan grew in 2018 by 10% year on year, totalling 133,600 tonnes. Only shipments of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased, reported MRC analysts.

PE imports to Kazakhstan were 11,200 tonnes in December 2018, compared to 11,700 tonnes a month earlier, local companies reduced their purchases of HDPE in Russia. Overall PE imports totalled 133,600 tonnes in 2018, compared to 121,400 tonnes a year earlier. HDPE and LLDPE shipments increased, whereas demand for low density polyethylene (LDPE) subsided.

The structure of PE imports by grades looked the following way over the stated period.

December HDPE imports to Kazakhstan decreased to 8,300 tonnes from 9,300 tonnes a month earlier, local companies reduced their purchases of black pipe grade PE in Russia. Thus, last year's overall HDPE imports exceeded 105,200 tonnes, up by 14% year on year.

Purchasing of LDPE by local companies virtually remained in the last month of 2018 at the level of November, totalling 1,600 tonnes. Overall LDPE imports to Kazakhstan were 17,500 tonnes over the stated period, down by 19% year on year.

Purchasing of LLDPE by local companies was 10,800 tonnes in 2018, compared to 7,200 tonnes a year earlier.

MRC