Borealis posts improved Q3 net profit in a market that remains soft

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, recorded a net profit of EUR 131 million for the third quarter of 2013 compared to EUR 129 million in the same quarter in 2012, reported the company.

The improvement in net profit in the third quarter versus the second quarter of 2013 was driven by continued good results in Base Chemicals and an improved result for Polyolefins despite a continuing soft market. The fertilizer business delivered a lower result in the third quarter due to operational challenges and some weakening of the market environment. Borouge continued its good performance and delivered a strong result. Net debt decreased in Q3 2013 with Borealis’ financial position remaining strong reflected in a gearing (net debt/equity) of 47% at the end of the quarter.

Borouge continued to perform well during the quarter, with the expansion of its plant in Abu Dhabi gaining momentum as preparations begin for a start-up in 2014. In line with its commitment to advancing sustainability in the petrochemicals industry, Borouge achieved Responsible Care 14001 certification for its entire global operations, being the first company in the Gulf to do so.

"We are pleased with our results during the third quarter, although we were held back because of some plant operability issues in the ammonia area," states Mark Garrett, Borealis Chief Executive. "We will continue our work to optimise our European Polyolefin business and assets in order to improve our profitability and grow in these volatile markets. We will take the necessary decisions now, always in line with our values, to be fit for the future. At the same time, we will continue to optimise and expand our fertilizer business, in order to create a more diversified business portfolio whilst also supporting the further growth and development of Borouge."

As MRC informed previously, earlier this year, Borealis and Borouge, the world's leading providers of innovative, value-creating solutions for the wire and cable industry, announced the dedicated roll-out of the technology platform Borlink in Russia. Key innovations of Borlink include a tailor-made high pressure (HP) process for the production of high purity low density polyethylene (LDPE) base polymers with superior electrical properties and the introduction of a closed or controlled loop (from monomer to final packaging) which avoids contaminants and ensures homogenous and high-quality, clean compounds.

Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. Borealis is headquartered in Vienna, Austria, and operates in over 120 countries with around 5,300 employees worldwide, generating EUR7.5 billion in sales revenue in 2012.
MRC

MOSCOW (MRC) -- BP has unveiled two new technologies for the production of key petrochemical feedstocks, said Plastemart.

SaaBre, is a new route for the production of acetic acid from syngas and Hummingbird directly converts ethanol to ethylene through dehydration. Both SaaBre and Hummingbird were developed over a number of years at BP’s advanced laboratories at the Hull Research and Technology Centre, alongside its acetic acid manufacturing site, Europe’s largest, at Saltend, Hull in the UK. BP says is actively exploring options for commercializing both technologies.

SaaBre’s breakthrough is a process for the conversion of synthesis gascarbon monoxide (CO) and hydrogen derived from hydrocarbons such as natural gas directly to acetic acid in a proprietary, integrated three-step process that avoids the need to purify CO or purchase methanol. BP says SaaBre is expected to deliver a significant reduction in variable manufacturing costs, and lead to capital efficiencies, compared to the carbonylation of methanol route, which has been the leading technology for several decades.

Acetic acid is a versatile intermediate chemical, used in a variety of products, such as paints, adhesives and solvents, as well as in the production of purified terephthalic acid (PTA), used extensively in polyester manufacture. "SaaBre is the most significant development for acetic acid production in 40 years and adds to our portfolio of leading technologies," said Nick Elmslie, CEO of BP’s global petrochemicals business.

Hummingbird is a newly-developed proprietary process by which ethanol is dehydrated to produce ethylene, a fundamental building block for the plastics and other petrochemical industries. The new technology is lower cost and simpler compared to existing ethanol to ethylene technologies.

As MRC wrote before, BP PLC is seeking to sell its US. wind energy business as part of efforts to refocus on oil and gas and position the company for growth in the future. BP has built one of the largest wind businesses in the USA. As such, any subsequent divestment will be the subject to attractive offers being received, according to BP's statement.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- A fire at a pipeline owned by US supermajor Chevron was "getting smaller" on Friday as some evacuated residents of the rural town near the explosion were escorted home before leaving again, said Upstreamonline.

The pipeline fire near Milford, Texas, started after an excavation crew accidentally drilled into the 10-inch line that was carrying liquid petroleum gas. Flames and a thick cloud of smoke shot into the air, but there were no injuries.

Hundreds of Milford residents were asked to evacutate. Some of those who had were accompanied by Ellis County Sheriff's deputies to retrieve medication or check on pets, but were only allowed to stay for a brief period.

The company is concerned that air quality and potential explosions on another pipeline could still pose a danger to residents. About three dozen evacuees were staying at a shelter set up by the American Red Cross in nearby Italy, Texas.

Chevron crews continued to work on Friday to plug the LPG pipeline. They are hoping the fire will burn itself out without any further incidents. Chevron hopes to have the line capped by late Friday.

Jim Barnum, general manager of operations for the Chevron Pipeline Company, issued an apology on Friday on behalf of the company. "The number one goal for all involved is the protection of life," he said. Barnum said the fire is shrinking.

In Mississippi, a fire broke out early Friday morning at a cracking unit at Chevron's 330,000-barrel-per-day refinery in Pascagoula, killing one worker.

The plant's emergency teams put out the fire, which started at 2 am local time. The refinery appeared to have been undergoing some maintenance work before the fire, according to energy intelligence group Genscape.

Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC

MOSCOW (MRC) -- Saudi Arabian Yanbu National Petrochemical Co (Yansab) has restarted its petrochemicals complex after a three-week maintenance shutdown, as per Plastemart.

The complex was shut on October 23 due to a problem with a water cooling network. Yansab estimated the financial loss due to the outage at around SR 90 mln (USD24 mln), which it said would be reflected in the fourth-quarter results.

As MRC wrote previously, Saudi Arabia's Yanbu National Petrochemical Co. has reported a doubling of its third-quarter net profit, attributing the rise to increased production and sales as well as higher prices for its products. Yansab made SR864.8 million (USD230.6 million) in the three-month period to 30 September, up from SR435.7 million during the same timeframe in 2012.

Yansab (Yanbu National Petrochemical Co.), a joint-stock company, is 51%-owned by petrochemical giant Saudi Basic Industries Corp (SABIC). Yansab produces 400,000 tonnes/year each of high density PE (HDPE), linear low density PE (LLDPE) and polypropylene (PP).
MRC

MOSCOW (MRC) -- The Polish company Grupa LOTOS S.A. has selected Axens to provide the technology license for a new Coker Naphtha Hydrotreater at its Gdansk refinery, said Plastemart.

This contract is part of the Gdansk refinery development and modernization program based on heavy residue coking technology.

The two-step Coker Naphtha Hydrotreating Unit, with a capacity of 152,000 tpa, is being designed to produce naphtha quality for petrochemical use.

"Axens’ technology turned out to be the best one among those evaluated. This technology which meets our objectives is both simple and energy efficient" said Grzegorz Zgoda, Project Manager in Grupa LOTOS S.A. Axens has extensive experience in the diolefin hydrogenation and hydrodesulfurization of cracked naphtha (FCC, Coker, Visbreaker, Steam-Cracker). Drawing on this large expertise, Axens offers a very efficient and commercially proven process with a choice of specific catalysts and operating conditions to ensure meeting the product specifications while maximizing the catalyst cycle length.

As MRC wrote previously, Poland's state-controlled refiner Grupa LOTOS along with chemical producer Zaklady Azotowe Tarnow will construct a petrochemical plant in the country. The project will cost 5-6 billion zlotys (USD1.6-1.9 billion) and its construction is scheduled to begin in 2014 or 2015. The plant should be ready by 2018. The new plant would be adjacent to the Gdansk-based Lotos refinery and would use its products.

Grupa LOTOS is one of the largest companies in Poland. It is an oil company operating both in Poland and abroad, whose business consists in the extraction and processing of crude oil, as well as wholesale and retail sale of high-quality petroleum products. Apart from Grupa LOTOS, which manages the refinery in Gdansk, the LOTOS Group currently comprises 15 other companies operating under the LOTOS name. One of them is based in Lithuania and another one in Norway.
MRC