Linde increases revenue and earnings again and raises its dividend

MOSCOW (MRC) -- The Linde Group announced financial results for 2013, with net profit increased 6.9% to EUR1.32bn, on the back of 5.2% increase in revenue, said the producer in its press-release.

In the 2013 financial year, Group revenue grew by 5.2% to EUR 16.655 bn. Exchange rate effects increasingly acted as a brake on revenue trends during the reporting period. After adjusting for these effects (which equate to revenue of EUR 656 m), the increase in revenue was 9.7%. US homecare company Lincare, acquired by Linde in August 2012, contributed EUR 1.563 bn to Group revenue.

Linde was able to reinforce its profitability at a high level and increased its Group operating profit in the 2013 financial year by 7.6 percent to EUR 3.966 bn. The Group operating margin rose to 23.8%, higher than the prior-year figure of 23.3 percent. Adverse currency fluctuations also had an impact on Group operating profit in 2013. The effect of these distortions was to reduce earnings by EUR 148 m. Without the distortions, Linde would have achieved a 12.1%increase in Group operating profit.

Earnings before taxes on income (EBT) rose by 3.5% to EUR 1.794 bn. Earnings after tax were EUR 1.430 bn. The amount attributable to Linde AG shareholders was EUR 1.317 bn, giving earnings per share of EUR 7.10.

Return on capital employed in the 2013 financial year was 9.7%. When comparing the figures for 2013 and 2012, it is important to note that many large-scale projects in the on-site business are still in the construction phase and were therefore not yet able to contribute to earnings.

Operating cash flow increased by 18% to EUR 3.144 bn (2012: EUR 2.664 bn). This significant rise was due mainly to the improvement in working capital.

As MRC wrote before, Linde Group has formed a joint venture with chemical company JSC KuibyshevAzot to build and operate a large ammonia plant at the Togliatti site in Russia's Samara region.

The Linde Group is a world leading gases and engineering company with around 63,000 employees in more than 100 countries worldwide.
MRC

MOSCOW (MRC) - A significant weakening of the Russian rouble and the weak demand led to a sharp reduction in the imports of linear low density polyethylene (LLDPE) to Russia, which decreased by 16% in January and February 2014, compared with the first two months in 2013, according to MRC DataScope.

Imports of linear polyethylene to Russia decreased to 24,600 tonnes in January and February of this year from 29,200 tonnes in January-February 2013. Such a significant decline in LLDPE imports resulted from the high prices (devaluation of the rouble against the dollar since the beginning of the year was 12%) and weaker demand from key customers - films producers. Some converters had to suspend all purchases.
Russia's demand for film LLDPE fell by 18% to 22,200 tonnes in the first two months of this year. Imports volumes from the key buyers - producers of stretch films fell to 8,500 tonnes in January and February 2014, from 14,000 tonnes over the first two months in 2013.

The growth in imports of linear polyethylene was seen only in two sectors of consumption: rotational moulding products and cable insulation.

Russia's imports of LLDPE to these sectors in the first two months of this year were 800 tonnes (275 tonnes in January and February 2013) and 320 tonnes (67 tonnes in January and February 2013), respectively.
Sluggish demand from local producers of films and a weak rouble will affect LLDPE imports volumes to Russia in the next few months.


MRC

MOSCOW (MRC) -- Foster Wheeler has been awarded contracts by South Korea's S-OIL Corp. for the front-end engineering design (FEED) for a residue upgrading project at the Onsan refinery in Ulsan, South Korea, reported Hydrocarbonprocessing with reference to officials' statement.

Foster Wheeler contract values were not disclosed and will be included in the company’s first-quarter 2014 bookings.

The upgrade of the refinery includes the addition of a residue hydrodesulfurization unit, a residue fluid catalytic cracker and multiple downstream upgrading units to enable the refinery to produce more higher-value products and, in particular, maximize production of polymer-grade propylene.

In addition to executing the FEED, Foster Wheeler will also prepare the tender for the engineering, procurement and construction (EPC) phase, procure long-lead items, evaluate the EPC bids, and prepare a cost estimate to support S-OIL’s final investment decision.

"This award illustrates our strategy to deploy our global network of operations, with our execution centers working together to support our clients through the entire lifecycle of their planned investments," said Roberto Penno, CEO of Foster Wheeler's global engineering and construction business.

As MRC informed earlier, S-Oil’s newly expanded Onsan Plant in Ulsan was officially opened in October 2011. The project, which doubled the plant’s petrochemicals production capacity to 1.7 mln tons, was completed in April and the expanded facility went into commercial operations in May.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has announced the appointment of Amy Hebert as vice president, Europe region, reported the company on its site.

Hebert joins Celanese from Albemarle Corporation where she most recently led the catalyst business as vice president, with overall responsibilities including creating and executing long-term business development strategies and managing the group's financial performance.

"Amy's leadership skills and industry knowledge will be an asset to our long-term success in Europe, which accounts for almost 40% of our global sales," said Mark Rohr, chairman and chief executive officer, Celanese Corporation. "In her new role in Europe, Hebert will be accountable for profitably growing Celanese's businesses in the region, optimizing manufacturing and maintaining cost competitiveness."

As MRC wrote previously, Celanese Corporation has recently announced that due to market conditions, including the global supply unavailability of vinyl acetate monomer, it will increase the price of Ateva EVA by USD0.06/pound, effective April 1, 2014, or as contracts allow, reported the company on its site.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has announced that due to market conditions, including the global supply unavailability of vinyl acetate monomer, it will increase the price of Ateva EVA by USD0.06/pound, effective April 1, 2014, or as contracts allow, reported the company on its site.

The above price increase is in addition to the price increase previously announced on January 9, 2014, of USD0.04/pound effective February 1, 2014, or as contracts allow.

As MRC informed earlier, Celanese Corporation also expanded its price increase to include all grades of Ateva EVA and low density polyethylene (LDPE).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
MRC