Sipchem Q3 net profit falls on lower selling prices

Sahara International Petrochemical Co.’s (Sipchem) Q3 2022 net profit of SAR 774.4 million beat SNB Capital’s forecasts of SAR 656 million, but missed average analyst expectations of SAR 852 million, SNB Capital said in a recent note, said Argaam.

The company’s debts decreased by SAR 1.1 billion since the end of 2021 to reach SAR 4.3 billion currently. Its debt ratio improved to 24%.

SNB Capital added that its outlook for Sipchem is positive in the short-to-medium term, due to the company’s unique portfolio.

The research firm recommended an “Overweight” rating on the stock with a target price (TP) of SAR 63.1.

We remind, Sahara International Petrochemical Co's (Sipchem) net profit rose by 52.2% year on year in the second quarter on the back of higher selling prices for most of the company’s products. The increase in product prices also contributed to the 13.7% year-on-year increase in gross profit in the second quarter, the company said in a filing to the Saudi bourse, Tadawul. The company's second-quarter net profit growth was also supported by the decrease in finance costs due to reduction of loans when compared with the same period of last year.
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Wanhua Chemical brought online its No 2 methyl methacrylate (MMA) unit at around end September, with a capacity of 80,000 tonnes/year, said the company.

The company also started up its new PMMA manufacturing unit, accounting for 160,000 tonnes/year, in around July-August this year.

The new MMA unit pushes up China’s total MMA capacity to 2.085m tonnes/year.

We remind, Wanhua Chemical is planning to increase capacity of its polycarbonate (PC) plant at Yantai in Shandong province by 140,000 tonne/year to 340,000 tonne/year. The expansion will be carried out through reengineering its existing 200,000 tonne/year PC project at the site. The company is currently seeking environmental approval for the plan.

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Eni confirmed it is conducting a feasibility study with the intention to build a new biorefinery in Livorno, Italy, said the company.

Hydrotreated vegetable oil (HVO), which is produced by hydrogenating vegetable oils, will be the primary biofuel produced at the planned biorefinery. Three new plants are being planned for the biorefinery, including a biogenic feedstock pre-treatment unit, a 500,000 tonne/year Ecofining plant and a plant to produce hydrogen from methane gas.

Biorefineries transform waste raw materials, residues and waste resulting from the processing of vegetable products and oils from crops into transport biofuels such as HVO and sustainable aviation fuel (SAF), as well as bio-LPG and bio-naphtha for use in the chemical industry.

Recently revised EU biofuel mandates featured both HVO and SAF consumption targets under transport fuels. “The coexistence of bio and traditional plants has been successfully tested with the recent production of Eni Biojet in Livorno, the first SAF exclusively from waste raw materials, animal fats and used vegetable oils thanks to the synergy with Eni's bio-refinery in Gela. Our goal is to increase the availability of decarbonised and sustainable products to our customers and to meet our scope 3 emission reduction targets,” declared Giuseppe Ricci, Chief Operating Officer of Eni’s Energy Evolution.

The design of the Livorno plants is expected to be finalised by 2023, with construction potentially being conducted by 2025. Local institutions and trade unions are expected to carry out discussions with ENI officials to produce an “inclusive industrial relations model”, according to ENI. The company recently began importing vegetable oil from Kenya to its biorefinery in Gela, Italy.

We remind, Eni informs that it has acquired the company Export LNG Ltd, which owns the Tango FLNG floating liquefaction facility, from Exmar group. The facility will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources. The Tango FLNG, built in 2017, has a treatment capacity of approximately 3 million standard cubic meters/day and an LNG production capacity of approximately 0.6 million tons per year (about 1 billion standard cubic meters/year). The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favour the development and enhancement of Eni's equity gas by accelerating production start-up time.
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Mitsui Chemicals has signed an agreement with Singapore-based Shell Eastern Petroleum on the supply of ethylene derived from plastic waste, which will in turn be used to produce polyethylene (PE), said the Japanese producer.

Mitsui Chemicals subsidiary Prime Polymer Co "will begin efforts toward the production of chemically recycled polyethylene derived from plastic waste via subsidiary Prime Evolue Singapore", it said in a statement. "Prime Evolue Singapore will leverage this ethylene to supply plastic waste-derived circular polyethylene as a new part of the Evolue lineup it manufactures and sells," Mitsui Chemicals said.

Shell is currently building a new 50,000 tonne/year pyrolysis oil upgrader unit at its manufacturing site on Pulau Bukom in Singapore. The upgrader unit - slated to start production in 2023 - improves the quality of pyrolysis oil, a liquid made from hard-to-recycle plastic waste that would have gone into a landfill, and turns it into a chemical feedstock.

International Sustainability and Carbon Certification (ISCC), a globally applicable sustainability certification system, has issued Shell’s plastic-waste-derived ethylene ISCC PLUS certification, which finds wide use as a system for certifying biomass-based and recycled raw materials, according to Mitsui Chemicals.

Prime Evolue Singapore currently runs a 300,000 tonnes/year linear low density PE plant in Singapore, according to the ICIS Supply and Demand database. Mitsui Chemicals is looking to achieve carbon neutrality by 2050 through a two-pronged approach that combines recycling with a biomass transition for chemicals and plastics.

"The recycling of plastic waste is expected to be a crucial strategic element in the push for such a circular economy. Going forward, Mitsui Chemicals and Prime Polymer will continue to make ardent efforts on the fronts of both recycling and biomass," Mitsui Chemicals added.

On Sep 14, 2022, Mitsui Chemicals has asked Shell Catalysts & Technologies (SC&T) for its Shell S-896 catalyst, which is expected to provide important economic benefits from raw material (ethylene) savings and also help the organization meet the decarbonization goals for their ethylene oxide (EO) refinery in Osaka, Japan.
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MRC --Trelleborg Sealing Solutions expands its unique capabilities in engineered performance polymer solutions, through its investment in the High-Performance Thermoplastics Technology and Development Center, located in Denver, Colorado, US. The center delivers custom value-added capabilities for sealing, cushioning, and protection, using thermoplastics to replace metal components, said Hydrocarbonprocessing.

This reduces mass and weight, eliminates corrosion, improves reliability and lowers maintenance requirements. Brian Richards, Director of Global R&D Business Development, says: “Our unique portfolio and knowledge of diverse markets and solutions enables us to maximize the value we create for our customers.

They need a partner that has the right people, resources, and passion for solutions in a complex world. Trelleborg’s High-Performance Thermoplastics Technology and Development Center partners with customers globally on their complex challenges to simplify them and add real value. With such a wide variety of material options, choosing an experienced partner like Trelleborg is essential, with our expertise and resources reducing time-to-market when developing new products and keeping pace with accelerating innovation cycles."

Previously expensive to produce, advances in manufacturing, part simulation, and material development make thermoplastic composites viable for an increasing number of applications, offering greater design flexibility than thermoset composites and metals. This makes it easier to meet application requirements, while optimizing strength-to-weight ratios and physical properties.

Trelleborg’s High-Performance Thermoplastics Technology and Development Center offers custom thermoplastic materials, compounds, and geometries to meet specific application requirements. This includes products with enhanced corrosion and fire resistance, and specialized compounds that can withstand challenging or niche environments for longer periods of time. Innovative manufacturing processes at the center enable production of smaller and more complex shapes, leading to reduced-size components or multiple functions combined into one solution.

In addition, the center provides customers with access to Trelleborg’s extensive R&D resources, including simulation (mold flow and stress/strain), tribology testing, material analysis including DSC (Digital Scanning Calorimetry), TGA (Thermal Gravimetric Analysis), DMA (Dynamic Mechanical Analysis), microscopy, SEM (Scanning Electron Microscopy), and compositional analysis and operational testing.

Richards, adds: “Our thermoplastic composites offer customers products that are multifunctional, add or enhance properties or consolidate parts. Thermoplastic composites are significantly lighter, with half the density of aluminum and a sixth of steel yet are strong with high impact resistance allowing them to replace structural elements.

We remind, Trelleborg’s applied technologies operation inaugurated its new purpose built facility in Retford, England, further enhancing its polyurethane manufacturing capabilities. "The new facility will be a Center of Excellence for Trelleborg’s diversified polyurethane component manufacturing, bringing together experience, innovation and technology under one roof," the company said in a press release.

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