Evonik held its own in difficult 2013

MOSCOW (MRC) - Evonik has performed well in an difficult business environment last year, the German specialty chemical group's largest shareholder said Reuters.

Evonik, a maker of animal feed additives, acrylic glass and super-absorbents for diapers, "held up very well" last year, the head of state-backed trust RAG, Werner Mueller, told journalists at an event late on Thursday.

The trust currently holds about two thirds of Evonik, which is Germany's second-largest chemicals maker after BASF and which is due to report full-year earnings on March 7.

Mueller said the RAG foundation was too highly exposed to the chemicals industry.

"It would not be unreasonable to lower this risk," he said. He added, however, that there were not immediate plans to lower RAG's stake in Evonik.

We remind that, as MRC reported earlier, in 2013, Evonik launched a new generation of PVC plasticizers under the ELATUR product brand. With this strategic portfolio expansion, Evonik is consistently developing its range of sustainable plasticizers. Plasticizers from Evonik are primarily used in the plastics, automotive, and construction industry.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.
MRC

MOSCOW (MRC) -- Belarus decreased by 8% in 2013, with main decrease occurred for high-density polyethylene (HDPE) and linear polyethylene (LLDPE), according to MRC DataScope report.

Total imports of polyethylene to Belarus fell to 106,000 tonnes in 2013, compared with 114,800 tonnes in 2012 . Demand grew only for HDPE , while LDPE and LLDPE markets showed negative results. Structure of las year's PE imports was as follows.

Last year, imports of LDPE and LLDPE decreased to 46,400 tonnes, from 60,000 tonnes in 2012. Such a serious reduction in import volumes resulted from weaker demand and reimport stoppage of Middle Eastern LLDPE to Russia.

Key suppliers of LDPE and LLDPE to Belarus last year were Saudi Arabia and Russia, with 25,800 tonnes and 7,000 tonnes delivered respectively.

Belarus's imports of HDPE rose to 59,700 tonnes in 2013, from 54,900 tonnes in 2012 because of stronger demand in all sectors of consumption. Key HDPE suppliers to Belarus last year were Russia and Saudi Arabia, with 32,000 tonnes and 10,000 tonnes respectively delivered respectively.

MRC

MOSCOW (MRC) -- Austrian oil and gas group OMV said unrest in Libya and Yemen as well as low refining margins and gas prices cut fourth-quarter adjusted operating profit by 54%, said Reuters.

However, the company, which is investing heavily in exploration and production (E&P) while struggling with weak demand in Europe, confirmed a 2014 production target despite the volatile security situation in North Africa and the Middle East.

Earnings before interest and tax (EBIT) adjusted for special items and inventory effects, or clean EBIT, was EUR444 million (USD611 million), missing analysts' average estimate of 461 million, according to Thomson Reuters data.

But OMV said it was well placed after buying 2.65 billion euros' worth of assets from Norway's Statoil last year to balance risks in North Africa, and an interim deal to pay Gazprom long-term gas prices closer to market prices.

OMV has historically agreed prices with Gazprom that were indexed to rising oil prices while spot market gas prices have fallen.

In E&P, which accounts for more than half of OMV's operating profit, clean EBIT fell 63% to EUR257 million, mainly due to lower sales from Libya and to a field shutting for refurbishment in New Zealand.

OMV said it expected its refining margins to remain under pressure this year and said economic volatility in Turkey was challenging the profitability of its Petrol Ofisi Turkish filling stations and lubricants unit.

In Gas and Power, OMV raised its clean EBIT by 35% to EUR80 million thanks to the Gazprom deal, which was backdated to April 1, as well as a similar long-term gas-supply contract renegotiation with Statoil.

OMV said it would continue renegotiations with Gazprom to try to achieve full market-based pricing for the contracts.
MRC

MOSCOW (MRC) -- Tensar officially opened the new manufacturing facility in St Petersburg, Russia, said the producer in its press release.

The new 1billion rouble state-of-the-art facility reinforces Tensar’s market-leading position in soil-reinforcement and subgrade stabilisation technologies. Tensar’s innovative products and expertise have proved popular with specifiers in Russia and Central Asia for over 15 years.

The new plant will better service this demand, locally manufacturing Tensar’s range of geogrids, including the patented TriAx used to stabilise road construction over soft soils and optimise pavement design for roads, ports and airfields. Large quantities of Tensar’s geogrid products were used to construct roads over difficult ground in preparation for the Sochi Olympics.

Tensar, whose UK operation is located in Blackburn, Lancashire, is aiming for a majority share of the geogrid market in the region within its first year, with the plant able to produce an impressive 3,000 tonnes of geogrid per year at full capacity.

Tensar is the majority shareholder in this joint venture, with remaining investment coming from Russian joint venture partners.

MRC