Novatek in profits hike

MOSCOW (MRC) -- Russian largest independent gas producer Novatek boosted its second-quarter net profit by 20%, beating consensus, on the back of higher output and prices, said Upstreamonline.

The company reported profit attributable to shareholders of 11.6 billion roubles (USD353 million), versus 9.6 billion roubles a year earlier, as oil and gas sales rose 29% year on year to 57.9 billion roubles.

A Reuters poll of analysts showed an average forecast of 11.1 billion roubles in second-quarter net profit and revenue of 57.7 billion roubles.

Novatek attributed increased gas sales to higher production from its Yurkharovskoye field as well as a greater number of purchase deals.

As MRC wrote before, Novatek has joined the Polish gas market, purchasing storage facilities and a retail network for liquified petroleum gas from Statoil Fuel & Retail Polska. The new assets will allow Novatek to tap enter an LPG market worth an estimated EUR300m per year. Local subsidiary Novatek Polska announced the purchase, but did not disclose financial details. The distribution network includes 300 stations.

Novatek is Russia's largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, Novatek is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Its upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 90% of Russia's natural gas production and approximately 17% of the world's gas production. Novatek is an open joint stock company established under the laws of the Russian Federation.
MRC

MOSCOW (MRC) -- AkzoNobel announced that it has received a binding offer for the purchase of its Building Adhesives business by Sika AG for EUR260 million. Building Adhesives generated annual revenues of EUR185 million in 2012, said AkzoNobel.

The transaction, which is expected to be completed in the fourth quarter of this year subject to regular consultation with employee representatives, will see all of Building Adhesives’ approximately 550 employees as well as its two manufacturing facilities in Rosendahl (Germany) and Damville (France) and its products and brands transfer to Swiss-based Sika AG.

The intended sale of Building Adhesives follows a strategic review of the business’ fit within AkzoNobel’s portfolio. Building Adhesives is a standalone business within AkzoNobel’s Decorative Paints business area, primarily serving the professional market in North Western Europe with a portfolio of brands and products including floor and wall leveling compounds, floor adhesives, tile setting, sealants and floor finishes. Its respected brands include Schonox, Casco, Cegecol, Synteko and EriKeeper. AkzoNobel’s Wood Finishes and Adhesives business (which also operates under the Casco brand) is not the subject of this offer.

"We want to focus our Decorative Paints business at AkzoNobel on the strong strategic paint positions we have in Europe and the growth markets of Asia and South America," commented AkzoNobel CEO Ton Buchner. "The intended sale of Building Adhesives is in line with this strategy. In Sika, with its portfolio of businesses in this industry, we are pleased to have found a good future home for this business."

As MRC wrote before, Akzo Nobel N.V. reported a 4% decrease in revenues in the second quarter compared with the same period last year. Operating income for Q2 was 17% lower at EUR322 million. Net income attributable to shareholders for the quarter rose to EUR429 million, buoyed by recognition of a deferred tax asset and profit on the divestment of Decorative Paints North America.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

МOSCOW (MRC) --Russian economic growth probably accelerated for the first time in six quarters, suggesting domestic demand is strong enough to help the economy ride out its steepest slowdown in four years, said Bloomberg.
Gross domestic product expanded 2% in the April to June period from a year earlier, according to the median estimate of 19 economists in a Bloomberg survey. That compares with the Economy Ministry’s projection for a 1.9%increase and exceeds the 1.6% advance in the first quarter that beat initial estimates. The Federal Statistics Service in Moscow will publish the data today at 4 p.m.

The economy is struggling with the drag created by weaker global demand for commodities, putting pressure on President Vladimir Putin’s allies as they prepare for next month’s elections in major cities including Moscow and Yekaterinburg. The government last month approved a stimulus plan, including measures to cut the cost of loans to businesses.

Economic growth has slowed every quarter since the final three months of 2011 as investment slumped and the government slowed spending increases following Putin’s re-election in March 2012. Trade has also weakened, with Russia’s surplus narrowing 11% in the first half from a year earlier, according to Federal Customs Service data.

Retail sales, a gauge of the household consumption that accounts for about half Russia’s economy, have continued to grow, although at a slower pace than in the first quarter. That has supported companies including OAO Magnit, the country’s largest food retailer, which more than doubled its first-half dividend this month.

Estimates in the Bloomberg survey ranged from 1.4% to 2.4%. Investors may be expecting an acceleration to about 1.9%, which was the government’s first estimate, according to Alfa Bank.

MRC

MOSCOW (MRC) -- Foster Wheeler AG subsidiary of its Global Engineering and Construction Group has been awarded an engineering, procurement and construction (EPC) contract by Enterprise Products Operating LLC, a subsidiary of Enterprise Products Partners L.P., for a propane dehydrogenation unit (PDH) and associated power, utilities and infrastructure at Mont Belvieu, Texas, U.S., said Plastemart.

The contract value was not disclosed. An initial release of engineering and procurement services, made under Foster Wheeler's Master Services Agreement with Enterprise, will be included in the company's second-quarter 2013 bookings. The balance of the EPC work will be booked with the execution of this EPC contract and will be included in the company's third-quarter 2013 bookings. The construction phase of the project will be executed through Foster Wheeler's combined use of direct-hire labor and subcontractors.

The award for this world-scale project is clear evidence of our ability to be a major player in the U.S. chemicals market, reflecting our extensive chemicals expertise and confirming our EPC project execution capability," said Umberto della Sala, President and Chief Operating Officer of Foster Wheeler AG. "It is a significant step forward in the expansion of our relationship with Enterprise, and we are focused on delivering world-class performance to meet our client's business objectives."

As MRC wrote before, Foster Wheeler has signed an evergreen agreement with Valero Energy for the provision of home office engineering and project support services to Valero’s Pembroke refinery and other facilities in the UK. The terms of the agreement were not disclosed, and bookings will be recorded as work is released by Valero.

Foster Wheeler AG is a global conglomerate with its principal executive offices in Geneva, Switzerland and its registered office in Baar, Canton of Zug, Switzerland. It is focused on Engineering, Procurement, and Construction and on power.
MRC

МОSCOW (MRC) -- Technip was awarded an engineering, design and procurement contract from Shaanxi LNG Investment & Development Co. worth EUR35 million for a mid-scale liquefied natural gas (LNG) plant, said Hydrocarbonprocessing.

The plant will be located in the Yangling demonstration area in China's Shaanxi Province.

The contract covers the conceptual engineering study, the basic engineering design (BED) for its processes, BED and detailed design of the LNG storage tank, as well as procurement for key equipment including the main cryogenic heat exchanger, the mix refrigerant compressor, the boil-off gas compressor and the cryogenic control valves, among others.

The LNG plant will have a capacity of 500,000 tpy and will be based on an Air Products liquefaction process.

Technip’s operating centers in Shanghai, China, and Kuala Lumpur, Malaysia, are executing the project, which is scheduled to be completed by mid-2014.

This project acknowledges Technip’s historical and unique LNG expertise, according to the company, but also reinforces its continuous involvement in the growing mid-scale LNG market in China.

As MRC wrote before, Technip, a world leader in project management, engineering and construction for the energy industry, has signed two agreements with State Corporation Russian Technologies (Rostec). The agreements aim at manufacturing flexible pipes and umbilicals in Russia, for the Arctic region and the Black Sea oil fields, as well as at the construction and renovation of refining and petrochemical units in Russia.

Technip is a world leader in project management, engineering and construction for the energy industry. Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
MRC