Nizhnekamskneftekhim net profit up by more than 8 times in H1 2021

MOSCOW (MRC) -- The financial and production indicators of PJSC "Nizhnekamskneftekhim" (NKNKh, part of the TAIF) grew rapidly in the first half of 2021. Thus, NKNK's net profit increased by more than 8 times over the stated period to Rb24.9 bln from Rb2.9 bln a year earlier, reported Realnoe Vremya.

It should be noted that in 2019, the company's net profit before the introduction of restrictions during the pandemic was Rb23.7 bln.

The company's revenue for the first six months of 2021 was Rb118.2 bln versus Rb67.1 bln a year earlier. Gross profit rose to Rb38 bln, up by Rb21.6 bln from the first half of 2020 (Rb16.5 bln).

Sales profit rose to Rb29 bln from Rb9.4 bln in 2020.

Nizhnekamskneftekhim turned out to be one of the leaders in terms of industrial growth dynamics. The output of the company's products grew by 15.5% in the first half of 2021, compared to the pandemic period. "This is due to the recovery of the global economy and the growing demand for polymer products in the world, "said Rafinat Yarullin, Director General of OAO Tatneftekhiminvest-holding, at one of the meetings.

Thus, PJSC "Nizhnekamskneftekhim" produced 1.35 mln tons of marketable products of all types in the first six months of 2021. The plant's overall production increased by 170,000 tonnes (20%) year on year.

The output of rubbers rose by 74,000 tonnes year on year in the first half of 2021. Overall, 336,400 tonnes of rubbers were produced at the plant in January-June 2021, compared to 262,700 tonnes a year earlier. The output of plastics was 357,400 tonnes.

According to experts, the positive production and financial results of NKNKh were achieved due to the favourable situation in the global markets.

"This year, world prices for most grades of polymers have renewed their historic highs. Domestic prices went up, following the global prices. Wholesale prices for motor fuels, polymers, rubbers grew by 13%-50%. Large-scale chemical plants expect the maximum level of revenues, profits and taxes, "noted R. Yarullin.

Analysts predict Nizhnekamskneftekhim's strong performance in the future, already due to growing production amid a recovery in demand for petrochemical products and an expansion of the product range.

As reported earlier, Nizhnekamskneftekhim continues construction of the Ethylene-600 olefin complex in accordance with the schedule, despite the claims of Rostekhnadzor due to the adjustment of the project documentation, the general director of the company Ayrat Safin said in April 2021 at the international forum on energy efficiency and ecology in Kazan.

The construction of the olefin complex is carried out within the framework of a memorandum of strategic cooperation concluded in June 2017 between TAIF Group, which includes Nizhnekamskneftekhim, and the German company Linde AG. The basic agreement on the design, supply of equipment and provision of services for the commissioning of the first stage of the future plant was signed between Nizhnekamskneftekhim and the Linde Engineering division. In February 2019, a contract for construction and installation works was signed with the Turkish company Gemont.

As MRC informed previously, NKNKh's revenue totalled Rb153.989 bln in 2020, down by Rb24.981 bln yera on year. The spread of the new coronavirus infection had a significant impact on the financial performance of Nizhnekamskneftekhim. Quarantines have been introduced in many countries of the world, restrictions have negatively affected economic growth and demand and, as a result, economic results.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

PJSC "Nizhnekamskneftekhim" (NKNKh) is one of the largest Russian manufacturers of petrochemical products. The industrial complex of the company includes ten major production plants and ten departments (Railway Transport, Ethylene pipelines, etc..). NKNKh produces more than 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is a member of TAIF Group of Companies.
MRC

MOSCOW (MRC) -- KBR and Petron Scientech Inc. (PSI) have announced they have signed an alliance agreement to license differentiated, energy-efficient, and sustainable technologies for renewable chemicals production, as per KBR's press release.

Under this agreement, KBR will be the exclusive licensor for PSI’s Ethylene Oxide/Ethylene Glycol (K-MEG), Alcohol Dehydration (K-SEET) and Maleic Anhydride (Max-Leic) technologies, which are used to convert ethanol into ethylene and further derivative chemicals used in a wide range of industry and consumer products.

PSI has developed these technologies over the past 30 years and is recognized as a leader in renewable ethanol and ethylene value chains and biorefineries. KBR will license these technologies and provide engineering services for new biorefineries as well as integrating the technologies in existing refineries and petrochemical plants to offer sustainable alternatives.

As MRC reported earlier, in July 2021, KBR was awarded technology licensing contracts by PKN Orlen for KBR's leading Solvent Deasphalting (SDA) and Residue Fluid Catalytic Cracking (RFCC) technologies as part of PKN's Bottom-of-the-Barrel project for its Plock Refinery in Poland.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Petron Scientech Inc, (PSI) based in Princeton, New Jersey, is a leader in the field of integrated and hybrid biorefineries, production of ethanol from first and second generation feedstocks for gasoline additive, and industrial conversion of renewable ethanol into a variety of important chemical building blocks specifically, higher alcohols, bio ethylene, bio ethylene oxide (EO), bio ethylene glycols (MEG) and other ethylene applications.

KBR delivers science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long- term operations and maintenance services to ensure consistent delivery with predictable results.
MRC

MOSCOW (MRC) -- McDermott International has announced a contract award for the engineering, procurement, construction and commissioning (EPCC) of a new naptha hydrotreating unit and a new isomerization unit with associated facilities for the Barauni Refinery Expansion Project in Bihar, India, for Indian Oil Corporation Limited, said the company on its site.

"We welcome the opportunity to work on the expansion of the Barauni Refinery," said Mahesh Swaminathan, Senior Vice President, Asia Pacific. "Evolving the configuration will maximize output, ensure compliance with stringent emissions and quality standards and help meet the increasing energy requirements of India's domestic market."

The units treat heavy naphtha streams by removing sulphur, nitrogen and metal compounds to produce Bharat Stage-6 compliant gasoline. Bharat Stage-6 compliance produces a cleaner fuel to meet high emissions standards.

"This is our second award for the Barauni Refinery Expansion Project, which will bring great synergies for the scopes throughout project execution," said Neeraj Agrawal, McDermott's Country Manager, India. "McDermott supports the Make in India initiative with our local engineering and project execution capability and we look forward to applying this expertise to these projects."

The project will be executed from McDermott's Gurgaon office in India with support from teams in Perth, Australia, and Brno, Czech Republic. The scope includes project management, residual process design, detailed engineering, procurement, fabrication, inspection, transportation, installation, construction and all processes through to mechanical completion and commissioning. The work will commence in the third quarter of 2021.

As MRC reported earlier, in July 2021, McDermott International, Ltd announced it was awarded an engineering and procurement contract for a spent caustic treatment solution on the Gas Chemical Complex (GCC) project from Heat Transfer Technologies DMCC (HTT). The GCC project is owned by Baltic Chemical Plant LLC, a subsidiary of RusGazDobycha. It is the largest polyethylene (PE) integration project in the world and is located near Russia's shores in the Gulf of Finland.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased.

McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
MRC

MOSCOW (MRC) -- Solvay has announced the launch of a new grade of KetaSpire PEEK, KT-850 SCF 30, designed for precision brake system and e-mobility electronic pump components, as per the company's press release.

Carbon fiber filled PEEK has traditionally been used for anti-lock brake system (ABS) and electronic stability control (ESC) components, such as tappets, poppets and plungers. The new KT-850 SCF 30 grade enables further metal (aluminum) replacement by improving the flow characteristics of the material and the surface finish of parts.

ABS/ESC plungers play a critical role in the function of the system’s hydraulic unit. The system combines an electronic pump, an electronic control unit (ECU), valves which control braking pressure at the wheels, and sensors that measure the speed of the wheels. The plunger is responsible for operating the valve’s movement by controlling the brake fluid supply.

Replacing metal with polymeric plungers requires a material like KetaSpire KT-850 SCF 30 which provides a balance of high performance properties including coefficient of friction, mechanical strength, dimensional tolerance control, and sealing capability.

“The new carbon-filled KetaSpire PEEK grade comes at a critical time when manufacturers are looking for enhanced sealing and mechanical performance. This means it is a real solution for the e-mobility market and we are proud it is part of our complete range of high-performance solutions for brake systems,” states Brian Baleno, Head of Marketing - Transportation at Solvay’s Materials Segment. “The specialized portfolio also includes Amodel PPA for ABS/ESC pistons, motor end caps, solenoids, brake booster sensors, and e-parking brake housings; Ryton PPS for brake pistons and valve housings, and Fomblin PFPE for electric parking brake lubricants.”

As part of Solvay’s One Planet commitment to sustainability, the company utilizes 100% renewable electricity in the production of its PEEK, PPA and PPS base polymers in the United States, and is the only manufacturing company among the Top 10 Corporate Solar Users in the ranking of the Solar Energy Industries Association.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

According to MRC's ScanPlast report, consumption increased in the Russian acrylonitrile-butadiene-styrene (ABS) sector this year. Overall ABS consumption totalled 26,710 tonnes in January-May 2021, up by 60% year on year.
May ABS consumption was 5,320 tonnes versus 2,980 tonnes a year earlier.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
MRC

MOScOW (MRC) -- LANXESS, specialty chemicals company, announced that Michael Ertl (54) will take over as head of the Inorganic Pigments (IPG) business unit with immediate effect, according to Indian CHEMICAL Nes.

He will be responsible for the specialty chemicals company’s global business with inorganic color pigments, which are used primarily in the construction industry. Ertl succeeds Holger Hueppeler (53), who heads the newly formed Flavors & Fragrances (F&F) business unit at LANXESS following the successfully completed acquisition of Emerald Kalama Chemical.

Ertl joined Bayer AG in 1992 as a divisional engineer after studying process engineering at RWTH Aachen University and then held various managerial positions in the Technology Division. In 2005, he took over as head of the internal management consultancy Operational Excellence at LANXESS. Three years later, he moved to Aliseca GmbH, where he served as department head and site manager Krefeld-Uerdingen. In 2013, he took over as head of the LANXESS Chempark Office in Leverkusen. Since October 2015, Ertl has headed the Benzyl Products and Inorganic Acids business line within the Advanced Industrial Intermediates business unit.

The IPG business unit is part of LANXESS's Advanced Intermediates segment, which achieved sales of around two billion euros in fiscal 2020. IPG operates its largest site in Krefeld-Uerdingen and also has additional sites in Porto Feliz (Brazil), Starpointe Burgettstown (USA), Branston (UK), Vilassar de Mar (Spain), Sydney (Australia) and Ningbo (China).

As MRC reported earlier, in April 2021, LANXESS expanded its Colortherm Yellow pigment range for heat-resistant high-performance plastics. Two new inorganic yellow pigments are now available, namely Colortherm Yellow 5 and Colortherm Yellow 26.

We remind that Russia's output of chemical products rose in June 2021 by 10.2% year on year. However, production of basic chemicals increased year on year by 8.2% in the first six months of 2021. according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary forms and synthetic rubbers accounted for the greatest increase in the output in January-June 2021.

LANXESS is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
MRC