Cosmo Films stock hits new high after announcing BOPP expansion and first interim dividend

MOSCOW (MRC) -- Cosmo Films Limited, a Global Leader in Films for Packaging, Labelling, Lamination and Synthetic Paper and an emerging player in Specialty Chemicals, Polymers & Pet care today announced expansion by setting up the world’s largest BOPP film production line at Aurangabad with annual rated capacity of 67,000 MT, said the company.

The BOPP line will require investment of about Rs. 350 crores to be funded through internal accruals and debts and is expected to be commencing commercial production within FY 2024-25. Backed by strong financial performance, the Company has also declared first interim dividend of Rs 25 per share for FY2021-22.

Commenting on Company’s performance Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said “With current capacity expected to produce primarily speciality films (80%+) in next two years and projected BOPP film demand growth in India, the Company planned capacity expansion which will be world’s largest production line with annual rated capacity of 67,000 MT with lowest cost of production.

The Company has also recently launched ZIGLY – India’s first tech-enabled integrated pet-care platform – through the launch of its website and the opening of its flagship experience center in New Delhi. Other growth plans i.e. Specialized BOPET line, focused towards growing specialty sales, expanding into Cosmo Specialty Chemicals are progressing well in line with the plan."

As MRC informed earlier, Cosmo Films introduced BOPP based heat resistant (HR) films. The films have been engineered to work as printing layer replacing BOPET film in multi-layer laminates for various packaging applications in both food and non-food segments. The company has also launched a barrier version of the film.

According to MRC's ScanPlast report, Russia's PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Established in 1981 and founded by Mr. Ashok Jaipuria, Cosmo Films today is a global leader in specialty films for packaging, lamination, labeling and synthetic paper. With engineering of innovative products and sustainability solutions, Cosmo Films over the years has been partnering with worlds’ leading F&B and personal care brands and packaging & printing converters to enhance the end consumer experience. Its customer base is spread in more than 100 countries with sales & manufacturing units in India and Korea and additionally sales & distribution base in Japan, USA, Canada and Europe. The Company is strategically expanding beyond Films into Specialty Chemicals & Polymers as well as Pet care business.
MRC

MOSCOW (MRC) -- Mitsubishi Corp and Shell Canada Products, by its managing partner, Shell Canada Limited (Shell Canada) have signed a Memorandum of Understanding (MoU) relating to the production of low-carbon hydrogen through the use of carbon capture and storage (CCS) near Edmonton, Canada, according to JapanToday.

Mitsubishi Corp said it aims to build and start-up the low-carbon hydrogen facility near the Shell Energy and Chemicals Park Scotford towards the latter half of this decade, and Shell would provide CO2 storage via the proposed Polaris CCS project. The low-carbon hydrogen, commonly called blue hydrogen, would be produced via a natural gas feedstock and exported mainly to the Japanese market to produce clean energy.

"Shell is leveraging our global leadership in carbon capture and storage to help produce the low-carbon products our customers need to move through an accelerated energy transition," said Mark Pattenden, Senior Vice President of Chemicals and Products Canada. "This opportunity is in line with our vision to create a world-class site to provide customers with lower-carbon fuels, products and carbon storage."

The first phase of the project aims to produce approximately 165,000 tons per annum of hydrogen with upside to increase production depending on considerations over future phases. The hydrogen would be converted to low-carbon ammonia for export to Asian market(s).

The project would be built near the Edmonton region, which this year was announced as Canada's first hydrogen hub. The location was chosen due to availability of abundant natural gas resources, proven CO2 storage capacity, and shared infrastructure opportunities.

As MRC reported previously, in July 2021, Royal Dutch Shell agreed to sell its stake in eastern German refinery PCK Schwedt, the latest in a string of refinery disposals as part of the Anglo-Dutch company's energy transition strategy. Shell said in a statement that it will sell its 37.5% share in the refinery for an undisclosed sum to Vienna-based Alcmene GmbH, part of the Liwathon Group, an integrated logistics and investment business headquartered in Estonia. The deal is expected to close in the second half of 2021, pending approval by cartel authorities and its partners, Russia's Rosneft and Italy's Eni.

We remind that Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC

MOSCOW (MRC) -- Rosneft became the only Russian oil and gas company announced as Global Compact LEAD in the area of sustainable development due to ongoing commitment to the United Nations Global Compact and its Ten Principles for responsible business, said the company.

The announcement of Rosneft Global Compact LEAD took place within the framework of the 76th session of the General Assembly of the United Nations. Rosneft was identified as being among the most highly-engaged participants of the world’s largest corporate sustainability initiative. In 2021, only 37 companies, out of which four companies belong to the oil and gas business, were assigned the Global Compact LEAD status.

Sanda Ojiambo, CEO and Executive Director of the UN Global Compact, said, “LEAD companies represent the highest level of engagement with the UN Global Compact. More than ever before, the world needs businesses of all sizes — like the ones announced as LEAD today — that continuously work to improve their sustainability performance and take action to build a better world."

“Recognition as a Global Compact LEAD participant confirms Rosneft’s reputation of a company with high standards of corporate responsibility, and a superior asset portfolio that ensures sustainable economic development with a minimal environmental footprint,” – said Igor Sechin, Rosneft Chief Executive Officer. Mr Sechin reminded that Rosneft was the first Russian company that publicly confirmed its commitment to the 17 Sustainable Development Goals of the United Nations, and integrated them into the corporate strategy.

Mr Sechin noted that Rosneft is the largest taxpayer of the Russian Federation, and plays a strategically important systemic role in the Russian energy industry and national economy on the whole, accounting for about four percent of Russia’s gross domestic product. For over ten years, Rosneft has been sharing the sustainable development principles of the United Nations Global Compact, and, through its operations, promoting development of the global economy based on the principles of equity, equality, and effective climate action.

Rosneft has demonstrated its commitment to the UN Global Compact this year by participating in Action Platforms on Sustainable Finance and Sustainable Ocean Business. Each UN Global Compact Action Platform convenes business, Global Compact Local Networks, leading experts, civil society, Governments and UN partners to solve complex and interconnected issues and innovate around the Sustainable Development Goals.

Rosneft planned to build an oil refining and petrochemical complex in the Primorsky Territory in two stages - oil refining with a capacity of 12 m tonnes per year and petrochemicals with a capacity of 3.4 m tonnes per year.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.
MRC

1. Exports grew in August in Japan although COVID-19 hits supply chains

MOSCOW (MRC) -- Japan’s exports extended double-digit gains in August, led by strong shipments of chip manufacturing equipment, although the pace of growth weakened as COVID-19 hit key Asian supply chains and slowed factory production, said Reuters. The trade growth is unlikely to dispel worries about the outlook for Japan’s economy, which has not yet recovered to pre-pandemic levels after taking an enormous hit from a collapse in global trade in the first quarter of 2020. Exports rose 26.2% in August compared with the same month a year earlier, the Ministry of Finance said on Thursday, marking the sixth straight month of double-digit growth as strong demand for chip-making equipment offset slowing U.S and European Union-bound shipments of cars.

MRC

MOSCOW (MRC) -- Crude oil futures moved lower during mid-afternoon trade in Asia Sept. 20 as supply concerns subsided on an increase in the US rig count amid recovery in the Gulf of Mexico, and as investors awaited the US Federal Reserve meeting in coming days for more pricing cues, reported S&P Global.

At 2 pm Singapore time (0600 GMT), the ICE November Brent futures contract was down 39 cents (0.52%) from the previous close at USD74.95/b, while the NYMEX October light sweet crude contract was down 47 cents (0.65%) at USD71.50/b.

"After a fourth weekly gain, crude prices slumped after oil rig counts delivered their biggest increase in a month and as risk aversion sent the dollar higher," said Edward Moya, OANDA's senior market analyst, the Americas, in a note.

Supply woes seem to be easing as Baker Hughes reported the US oil and gas rig count, a gauge of future output, at 512 Sept. 17, adding nine rigs in the past week and taking the total to the highest since April 2020.

Production and refining capacities in the Gulf of Mexico continue to push toward full recovery. The US Bureau of Safety and Environmental Enforcement reported Sept. 17 that 422,078 b/d or 23.19% of the Gulf's oil production remains offline, and 765,540 b/d or 34.43% of gas production - figures that were much improved from last week, when 66.36% of oil production and 75.55% of gas production was offline.

A stronger dollar also placed downward pressure on prices. At 2 pm Singapore time (0600 GMT), the ICE US Dollar Index was trading at 93.295, up 0.128% from the previous close. A stronger dollar results in dollar-denominated assets like oil futures becoming less attractive to investors holding foreign currencies, thus lowering demand for these assets.

The market will be closely watching the US Federal Open Market Committee meeting over Sept. 21-22 for clues on the pace of the Federal Reserve's tapering of its bond buying program. Fed Chairman Jerome Powell signaled last month that it would be appropriate for the tapering to occur by the end of this year, which would buoy interest rates and strengthen the US dollar, putting downward pressure on energy prices.

As informed earlier, Shell said earlier this month it observed damage from Hurricane Ida to its transfer station West Delta-143 offshore facilities in the Gulf of Mexico. West Delta-143 serves as the transfer station for all production from its assets in the Mars corridor in the Mississippi Canyon area of the Gulf of Mexico to onshore crude terminals. Shell said then it was not yet safe to send personnel offshore to learn the full extent of the damage and estimate the effect on production.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC