MOSCOW (MRC) -- Cepsa’s chemicals division third-quarter earnings fell 6%, quarter on quarter, on the back of falling margins in phenol and acetone and lower solvents output, said the company.
Year on year, however, earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose sharply compared with Q3 2020, when Spain was only emerging from one of the strictest lockdowns in Europe to contain the pandemic.
The company did not disclose sales figures. Cepsa is privately owned by The Carlyle Group and Abu Dhabi's investment fund Mubadala and it is not bound by financial reporting like publicly listed companies are.
"When compared to Q2 2021, (chemicals division) EBITDA was 6% lower due to a deterioration in margins in the phenol/acetone market and lower results in the solvent segment as a consequence of the reduction of production loads by refining customers," said Cepsa.
"These impacts were partially offset by the strong performance of the LAB (linear alkylbenzene) segment (22% versus Q2 2021) derived from higher sales and margins, and the increase in production volumes after the change to Detal technology at the Puente Mayorga (Spain) plant."
Cepsa said during the third quarter it had started producing LAB, a chemical used in detergents, using vegetable oils as feedstock. Overall, the company sales volumes stood 15% lower than its pre-pandemic sales volumes, it said.
As it was written earlier, Cepsa is exploring a sale of its chemicals business under a strategic review as it seeks to raise funds to accelerate its transition to clean energy. Cepsa is working with Citi to identify possible buyers for the division which is valued at up to 3 billion euros (USD3.5 billion), the sources said, cautioning that discussions were at a preliminary stage and no deal was certain.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
Cepsa is a Spanish petrochemical company. Full name Compania Espanola de Petroleos S.A. The company is headquartered in Madrid. Refining is one of the main activities of CEPSA. The production of asphalt and other road surfaces is another of the company's core activities; nine CEPSA factories are engaged in the production of these products.
MRC