AkzoNobel publishes Q1 results

(akzonobel) -- Akzo Nobel N.V. (AkzoNobel) reported a 6 percent increase in first quarter revenue compared with the same period in 2011, mainly driven by pricing actions to offset higher raw material costs. The EBITDA for Q1 was 3 percent lower at EUR423 million, due to weaker end markets and cost inflation. The company also announced that its global performance improvement program is on track.

Overall raw material prices remain a challenge. Looking forward, the company expects the higher oil and TiO2 prices on average to have an inflationary impact.

Cash from operating activities was impacted by a one-time pension payment and the seasonal build-up of operating working capital.

Decorative Paints achieved a revenue increase of 4 percent in the first quarter, primarily driven by margin management in weak markets. Lower volumes impacted EBITDA, particularly in North America which benefited last year from a one-time positive customer load-in. Restructuring and cost reduction actions are underway in Europe and North America to offset weaker demand.

In Performance Coatings, revenue increased 11 percent and EBITDA was up 15 percent compared with the previous year. Industrial Coatings - boosted by acquisition activity - achieved the strongest growth, followed by Marine and Protective Coatings. Although overall activity levels were flat, there was significant variability between individual segments.

MRC

(foxbusiness) -- Poland's largest refiner PKN Orlen SA (PKN.WA) expects its first-quarter operating profit to reach about 900 million zlotys (USD282 million), down 33% from a year earlier, the company said Thursday in a preliminary estimate of its earnings.

PKN Orlen said the impact of higher sales volumes offset the negative impact of the tough macroeconomic environment in which Europe's refineries now operate.

Higher crude oil prices, which increased the value of PKN Orlen's mandatory oil reserves, are expected to increase operating profit by about PLN700 million, PKN Orlen said.

Sales volumes rose 2% on the year, boosted by retail sales and sales of petrochemicals.

Throughput of crude rose 4% on the year in the first quarter, driven by increased utilization at PKN's Plock refinery, mainly its PX/PTA petrochemical complex, and its Czech unit Unipetrol.

MRC

(Reuters) - Czech downstream oil group Unipetrol expects to post a small first-quarter operating loss as a fall in margins year-on-year outweighed the positive impact of currency moves and operations with CO2 allowances, it said on Thursday.

The company, majority owned by Poland's PKN Orlen, said it did not book any one-off charges or gains in the first three months of the year.

It said operations with CO2 allowances helped to raise operating profit by roughly 155 million crowns in the first quarter while exchange rate changes provided a 156-million-crown boost.

Unipetrol reported an operating loss of 5.94 billion crowns in the fourth quarter of 2011 due to impairment charges.

MRC

(trend) -- SOCAR plans by 2014 to launch polypropylene and low density polyethylene production, SOCAR head Rovnag Abdullayev told reporters.

"Currently, the design work is being carried out as part of creation of shops for the production of polypropylene and low density polyethylene," said Abdullayev. He said the new facility will allow SOCAR to provide raw material to new chemical industrial park to be established in Sumgayit.

"The company is now working with the Ministry of Economic Development of Azerbaijan on a project to create a new park," said the SOCAR head. In particular, SOCAR has been working to clean up territory which is on the balance of the Azerkimya production association, set aside for the park.

Upon the completion of this work, the area will be transferred to the Economic Development Ministry. Small enterprises for the production of the final chemical products will be created in this area.

The purpose of the chemical park is development of small chemistry, in particular the production of the final chemical products ranging from packaging to plastics.

The placement of the new park on the territory of the production association is appropriate in terms of proximity to major chemical companies so that these small enterprises will be able to partially or completely use products manufactured by enterprises that are part of Azerkimya. Smaller enterprises will also be able to purchase raw materials, both in the new complex on the oil and gas processing and production of petrochemical products and import products or technologies needed for them.

MRC

MOSCOW (MRC) -- In Q1, the volume of chemical production in Russia fell by 0.6%, the output of resin and plastic products grew by 2.8%, according to MRC analysts.

In March, the volume of chemical production in Russia grew by 1% year on year, according to Rosstat. In Q1, the production of chemicals fell by 0.6%. The largest decline in output fell on propylene, polypropylene and polyethylene (due to the accident at Stavrolen) and mineral fertilizers.

Last month, the production of mineral fertilizers (in terms of 100% of the basic substance) made 1,568 tonnes, 14% up than in February. In Q1, the production of mineral fertilizers decreased by 8% year on year. The production of caustic soda (in terms of 100% the basic substance) in March reached 94,800 tonnes. Over the first three months, of production of caustic soda rose by 8.2%.

In March, the production of ethylene and propylene made 202,000 tonnes and 96,800 tonnes, respectively. In January-March, the total production of ethylene and propylene decreased by 8% and 15% respectively year on year. The decline in production was due to an accident at Stavrolen in December. The production of styrene made 46,500 tonnes, styrene production grew by 0.9%.
The production of polyethylene, polypropylene, polystyrene and polyvinyl chloride last month reached 126,000 tonnes, 52,900 tonnes, 27,100 tonnes and 63,700 tonnes, respectively. In Q1, the production large volume polymers in Russia fell by 4%.

In March, the output of plastic products grew by 2.3% year on year. Production of pipes, fittings and hoses increased to 35,600 tonnes; plates, films and sheets unreinforced - to 66,900 tonnes; plates, films and porous sheets - to 13,500 tonnes, windows, boxes and polymer window sills - to 1.4 million sq.m.

In general, over the first three months, the production of plastic products increased by 3%. The production of pipes, fittings and hoses made 99,100 tonnes (up 7%), plates, films and sheets unreinforced - 170,200 tonnes (up 4%), plates, films and porous sheets -36,900 tonnes (up 20%); windows, boxes, polymer window sills - 3.2 million square meters (up 22%).

MRC