Indorama Ventures reports lower profit on higher volume

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced its third quarter 2020 financial results, said the company.

Reported net profit is THB 380 million in 3Q20 and THB 1,104 million for 9M20. Our performance this year provided us significant insights into the growth of the future market, while the company remains on a path towards enhanced incremental performance progress, from 4% ROCE towards our target ROCE of 15% by 2023.

In 3Q20 we delivered record sales volume of 3.6 million tonnes, registering growth of 18% year-on-year (YoY). Sales volume grew to 3.2 million tonnes, or 4% YoY on a comparable basis. This continuous volume growth is a clear indication of the resilient nature of the company’s products and the global access we have to our customers.
IVL achieved an operating cash flow of USD 354 million in 3Q2020 while operating cash flow for 9M20 was USD994 million, thus providing us ample liquidity of USD 2.5 billion in cash and cash equivalents as well as unused credit lines.
Project Olympus (a business transformation and cost excellence project) delivered a savings of USD 21 million in 3Q20 and USD 64 million in 9M20. Our full year budget of USD 76 million in savings is expected to exceed targets by over 15% in 2020 with relentless focus on multiple initiatives.

IVL has embarked in 2020 on a transformation journey that will enhance its business excellence and aims to deliver US$ 582 million of additional, sustainable, EBITDA by 2023. This target has been expanded from the US$ 352 million announced at our Capital Markets Day at the start of 2020 after a rigorous analysis process and the support of relevant domain experts to validate our operating teams’ initiatives in all of our three major business segments globally.

We are making progress towards our ESG targets and our pledge to recycle 750,000 tonnes of post-consumer PET, with a commitment of USD 1.5 billion towards our ESG and recycling infrastructure globally by 2025.
We have strengthened our leadership and recruited both digital and Lean Six Sigma function leaders to support technological adaption across IVL.

IVL is well on its way to implement S4 Hana (ERP) across our global operations and introduced a Global Business Service (GBS) office which will hallmark the delivery of our transformation journey.

As MRC informed earlier, Indorama Ventures Sines, a subsidiary of the world leader in the production of polyethylene terephthalate (PET) - Indorama Ventures Company Ltd (IVL), plans to halt production at the refined terephthalic acid (TPA) plant in Sines (Sines, Portugal) in mid-November to conduct planned preventive measures. Repair work at this enterprise with a capacity of 700,000 tonnes/year of TPA per year will continue for one month. Thus, this plant should return to work in mid-December this year.

As per ICIS-MRC Price Report, buying activity has improved in the Russian market of PET chips this week. Most producers reported a limited volume of free PET in the spot market. Converters' opinions regarding November demand in the preforms market differed. Some of them reported good sales, while others reported that demand was low and they have to sell preforms at a price close to their cost.

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
MRC

MOSCOW (MRC) -- Polyethylene (PE) imports into Kazakhstan dropped in the first nine months of 2020 by 12% year on year, totalling 139,300 tonnes. High density polyethylene (HDPE) accounted for the greatest increase in shipments, according to MRC's DataScope report.

September PE imports to Kazakhstan reached 12,200 tonnes versus 17,700 tonnes a month earlier, local companies reduced their purchases in Russia and Uzbekistan because of restrictions from local producers. Overall PE imports totalled 139,300 tonnes in the first nine months of 2020, compared to 124,100 tonnes a year earlier. Purchases of HDPE increased significantly, whereas imports of low density polyethylene (LDPE) decreased.

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

September HPE imports fell to 9,800 tonnes from 14,700 tonnes, Russian and Uzbek producers significantly restricted their export sales. Overall HDPE imports totalled 115,200 tonnes in the first nine months of 2020, up by 19% year on year.

September LDPE imports dropped to 900 tonnes from 1,300 tonnes in August, several Russian producers simultaneously reduced their shipments because of scheduled turnarounds. Overall LDPE imports reached 14,100 tonnes over the stated period, down by 22% year on year.

September linear low density polyethylene (LLDPE) imports reached 1,500 tonnes versus 1,700 tonnes a month earlier. Overall LLDPE imports reached 10,000 tonnes in January-September 2020, up by 7% year on year.

MRC

MOSCOW (MRC) -- Baker Hughes has announced it is acquiring Compact Carbon Capture (3C), a pioneering technology development company specializing in carbon capture solutions, said Hydrocarbonprocessing.

The acquisition underpins Baker Hughes’ strategic commitment to lead in the energy transition by providing decarbonization solutions for carbon-intensive industries, including oil and gas and broader industrial operations.

The advancement of carbon capture technology solutions is widely considered critical to delivering the additional CO2 emissions reduction needed to meet global 2050 climate targets. In the energy and industrial sectors, carbon capture technology is among the most viable decarbonization paths for both retrofitting existing assets as well as for greenfield projects. 3C’s technology can address CO2 capture from different emission sources and can contribute significantly to the decarbonization of customers’ operations.

3C’s technology differs from traditional carbon capture solvent-based solutions by using rotating beds instead of static columns, effectively distributing solvents in a compact and modularized format. The rotating bed technology enhances the carbon capture process resulting in up to 75% smaller footprint and lower capital expenditures. In addition, 3C’s modular and scalable configuration can be easily deployed into existing brownfield applications and can be optimized for a broad range of capacity and applications, including offshore and industrial emitters.

Baker Hughes’ 100+ years of rotating equipment expertise, including in modularized and decarbonization process solutions, will provide an unmatched opportunity to scale and commercialize 3C’s technology. As part of the agreement, Baker Hughes will accelerate the development of the technology, leading to commercial deployment for customers globally.

"The addition of 3C to our energy technology portfolio complements our strategy, technology and manufacturing strengths in the area of carbon capture,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “This agreement highlights our deliberate and disciplined approach to invest in the energy transition. We are positioning our portfolio for new energy frontiers, and we believe there will be strong growth potential of carbon capture for both industrial applications and oil and gas projects. By incubating 3C’s technology, we can develop a roadmap to provide one of the industry’s lowest cost per ton carbon capture solutions."

“Our technology plays an important role in the energy transition, and we believe this agreement with Baker Hughes is the right step to grow,” said Torleif Madsen, CEO of 3C. “As we focus on our long-term vision to develop the world’s leading carbon capture offerings, we will leverage Baker Hughes’ strong brand and technology position in the energy industry to further expand our solution by complementing it with world-class turbomachinery and process solutions and access to a global customer base. This is an immense opportunity and we are proud to join the Baker Hughes team."

The acquisition further complements the existing Baker Hughes CCUS portfolio offering, which includes turbomachinery, solvent-based state of the art capture processes (CAP), well construction and management for CO2 storage, and advanced digital monitoring solutions. The agreement includes all intellectual property, personnel and commercial agreements. ABG Sundal Collier acted as advisors to 3C.

As MRC informed earlier, crude prices rose in mid-morning trade in Asia Nov. 16, as the market was comforted by the strong possibility that any new lockdowns in the US will be less severe than the nationwide lockdowns seen in spring, with the signing of the Regional Comprehensive Economic Partnership (RCEP) also providing a boost to sentiment.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, announced Somos QuickGen 500, a game-changing, fast-printing, general purpose engineered resin for digital light processing (DLP) and liquid crystal display (LCD) 3D printing, said the company.

The company continues to expand its materials offerings with this flexible DLP/LCD resin. With fast print speeds, DLP and LCD 3D printing technology offers quick and accurate results. Paired with low capital investment costs, companies looking to switch from traditional to additive manufacturing – and looking to manufacture locally – can more quickly and easily adopt 3D printing with DLP and LCD printing.

DSM introduces Somos® QuickGen 500, DSM's engineered acrylate resin for DLP and LCD printing. DSM's acrylate materials include elements specifically developed by DSM making them engineered resins vs. other acrylate resins on the market.

Somos® QuickGen 500 is the go-to resin for functional and general prototyping needs. The time and cost savings offered by DLP or LCD printing due to its printing speed compared to other technologies, paired with Somos® QuickGen 500's competitive print speeds and price point, make the material a game changer. Its performance offers those using DLP and LCD printing increased productivity while cutting time and costs.

A colorless resin, Somos® QuickGen 500 has a print speed 2x faster than similar materials. Easy to print, the resin prints with accuracy and is ideal for functional and general prototypes, semi-flexible applications, applications with detailed features and – due to its translucency – fluid flow analysis.

Somos® QuickGen 500 offers unique flexibility; it is more flexible than other resins, but stiffer than elastomers, offering both flexibility and spring back. It performs consistently independent of how quickly force or strain are applied, unlike many flexible materials that show greater influence from the rate of applied force.

DSM worked with their ecosystem partner, San Francisco based company Origin, and the developer of Origin One, an open industrial 3D printer with transformative material development tools to develop and test Somos® QuickGen 500. The combination of DSM's materials science and Origin's open system platform allowed for the rapid development of this new material.

Chris Prucha, Founder and CEO, Origin: "With the introduction of Somos® QuickGen 500, our industry now has a material that pushes the boundaries of 3D Printing, enabling high performance, fast printing, economical parts. This would not have been possible without the combination of material innovation, open material development technology, and tight collaboration between our two companies."

Geoff Gardner, Innovations Director Additive Manufacturing at DSM: "We're excited to expand our materials portfolio with Somos® QuickGen 500, an engineered resin boasting fast print speeds at an economical cost. DSM continues supporting all manufacturing needs with high performance materials for all 3D printing technologies."

As MRC informed earlier, Royal DSM (Netherlands) announced an agreement to sell its resin and functional materials business units and related businesses DSM Resins & Functional Materials (RFM) to Covestro AG (Germany) for EUR1.6 billion.

As MRC informed earlier, DSM formed a 50/50 joint venture (JV) with VDL Groep (Eindhoven, Netherlands), called Dutch PPE Solutions, to produce medical facemasks and establish the first permanent production of critical facemask components in the Netherlands. The companies are investing several million euros to purchase manufacturing equipment and build manufacturing facilities to produce meltblown polypropylene (PP), the critical material layer in medical facemasks that filters viruses, and make medical masks.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

MOSCOW (MRC) - Imports of polypropylene (PP) into Belarus increased to about 83,900 tonnes in first nine months of this year, up 3% year on year, compared to the same period of 2019. The greatest increase in imports accounted for homopolymer PP, according to MRC DataScope.

September PP imports to Belarus rose to 11,600 tonnes, whereas this figure was 9,500 tonnes a month earlier, local companies raised their purchasing of all propylene polymers in Europe and Russia. Total PP imports into the country reached 83,900 tonnes in January - September, compared with 81,500 tonnes year on year. The demand for homopolymer PP increased, but demand for propylene copolymers decreased.

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

September imports of homopolymer PP reached 8,300 tonnes versus 7,100 tonnes a month earlier, purchases of injection moulding homopolymer PP in Europe and Russia increased. Overall imports of homopolymer PP reached 61,300 tonnes in the first nine months of 2020, up by 12% year on year.

September imports of propylene copolymers to Belarus were about 3,300 tonnes versus 2,300 tonnes a month earlier, local companies increased significantly their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian and Middle Eastern producers.

Thus, overall imports of propylene copolymers reached 22,600 tonnes in January-September 2020, down by 16% year on year.

MRC