Eastman chemical profit rises 11%

MOSCOW (MRC) -- Eastman Chemical Co. said its second-quarter earnings rose 11% as the chemical and materials company reported improved sales across most of its major business segments that offset weakness at its specialty fluids and intermediates segment, said The Wall Street Journal.

Eastman, which makes chemicals, plastics and synthetic fibers, has continued to grow through acquisitions. Eastman in June completed its acquisition of the assets of BP PLC's global aviation turbine engine oil unit. The company's deal for Commonwealth Laminating & Coating Inc., a maker of window films and specialty films for the automotive, architectural and protective applications markets, is expected to close in the second half of the year. Commonwealth will become part of Eastman's advanced materials segment.

In the latest quarter, the company's specialty fluids and intermediates segment reported lower sales and adjusted operating earnings, partly the result of an unplanned shutdown at its Kingsport, Tenn., operations and a decrease in sales volume resulting from a first-quarter weather-related outage at the Longview, Texas, site.

Eastman Chemical reported a profit of USD292 million, or USD1.93 a share, up from USD264 million, or USD1.69 a share, a year earlier. Excluding acquisition impacts and other items, adjusted earnings from continuing operations rose to USD1.92 from USD1.80. Revenue increased 0.8% to USD2.46 billion.

As MRC wrote before, earlier this year, Eastman Chemical Company, a global specialty chemical company, enhanced its medical packaging portfolio with Eastalite copolyester, the company’s first opaque offering, which is styrene-free and can be a sustainable alternative to high-impact polystyrene (HIPS).

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC

Tobolsk-Polymer resumed PP production

MOSCOW (MRC) -- Tobolsk-Polymer (SIBUR group), Russia's largest polypropylene (PP) producer, has resumed production after a scheduled shutdown for maintenance, reported MRC analysts.

Yesterday, on 31 August, 2014, Tobolsk-Polymer resumed its PP production after the scheduled outage for a turnaround. Maintenance works at the plant started on 30 June 2014.

As reported earlier, Tobolsk-Polymer was the first Russian PP producer of polypropylene that shut down its production for maintenance. Tomskneftekhim with the annual capacity of 140,000 tonnes stopped its production for a turnaround on 20 July, Ufaorgsintez and Poliom intend to shut down their production from mid-August.

LLC "Tobolsk-Polymer" is a subsidiary of SIBUR and Russia's largest construction project of a modern PP complex with the production capacity of 500,000 tonnes per year. It is located in the industrial zone of Tobolsk, at the production site of Tobolsk-Neftekhim.
MRC

BP reports rising profit, warns that further Russian sanctions may hurt

MOSCOW (MRC) -- BP, the UK oil company with the single-biggest foreign investment in Russia, warned that more sanctions against the country could hurt its business, said Hydrocarbonprocessing.

BP, with a 20% stake in OAO Rosneft, stands to lose the most from further sanctions in response to Russia’s annexation of Crimea. The European Union and the US are acting to intensify punitive measures aimed at key sectors of the economy -- finance, defense and energy.

"Any future erosion of our relationship with Rosneft, or the impact of further economic sanctions, could adversely impact our business and strategic objectives in Russia, the level of our income, production and reserves, our investment in Rosneft and our reputation," BP said in an earnings statement.

BP reported a 34% increase in second-quarter profit, beating analyst estimates, including USD1 billion underlying net income from Rosneft. That compares with USD218 million from the Russian company a year earlier. BP received a USD690 million dividend from Rosneft last week and doesn’t expect this to be at risk next year. Its stake is worth USD15 billion.

"To date, these sanctions have had no material adverse impact on BP or Ruhr Oel GmbH," a joint refining venture between BP and Rosneft, it said. "However, BP will continue to keep this under review."

EU governments agreed Tuesday in Brussels to bar Russian state-owned banks from selling shares or bonds in Europe and restricted the export of equipment to modernize the oil industry, a key prop for Russia’s economy, two EU officials told reporters.

A Dutch court ruled Monday in favor of former Yukos Oil Co. officials, ordering Russia to pay USD50 billion for seizing what was once the country’s largest oil producer. The decision risks dragging Rosneft and natural gas exporter OAO Gazprom into extended legal wrangling. The state-run companies may be targeted because they were beneficiaries of expropriated Yukos assets. "We are monitoring events in Russia,” CEO Bob Dudley, who was re-elected to the Rosneft board in June, said at a media briefing in London. “Sanctions are a matter for governments to resolve through dialog and diplomacy."

Earnings adjusted for one-time items and inventory changes rose to USD3.6 billion from USD2.7 billion a year earlier, the London-based company said in the statement. That beat the USD3.4 billion average estimate of 13 analysts in a Bloomberg News survey. While total energy production declined because of disposals, the company brought online projects with better returns, it said. US output rose 28% in the quarter from a year earlier, boosted by new assets in the Gulf of Mexico.

As MRC wrote before, BP Zhuhai is in plans to start a new purified terephthalic acid (PTA) plant in China. A Polymerupdate source in China informed that the plant is likely to start in Q4, 2014. The exact start-up schedule of the plant could not be ascertained. To be located in Zhuhai province, China, the plant will have a production capacity of 1.25 million mt/year.

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

LDPE prices in Russia hit the historical record high

MOSCOW (MRC) - Low density polyethylene (LDPE) prices in Russia increased to record high on scheduled maintenance works at Gazprom neftekhim Salavat and Tomskneftekhim, reaching Rb80,000/tonne this week, said MRC analysts.

July is traditionally difficult month for Russian LDPE buyers. The market was seriously affected in June by maintenance works at Gazprom neftekhim Salavat and Tomskneftekhim, as well as reduced capacity utilisation at Kazanorgsintez this year because of ethylene shortage.

As a consequence, LDPE supply was significantly tight, with price offers exceeded Rb76,000/tonne. Deals for LDPE in the spot market reduced a minimum in the late July because of tight supply. Price offers for 158 PE reached Rb76,000-76,500/tonne FCA, including VAT. LDPE prices for shrinkable films production reached Rb77,000/tonne FCA, including VAT.

Tomskneftekhim announced an increase in PE prices this week of Rb1,000/tonne. Ufaorgsintez will announce its contract LDPE prices for the first half of August delivery this week.

The availability of LDPE in Russia will improve not earlier than in October.

Angarsk Polymers Plant has also shut its PE capacities for scheduled maintenance, although this producer is mostly export-oriented, the shortage of the producer's PE in some regions will be offset by the material from other local plants.

Ufaorgsintez will shut its capacities for a month long turnaround, which will go in two stages, on 15, August.

Kazanorgsintez will shut its LDPE capacities for two weeks maintenances in the second half of September.

These factors (maintenance works) will result in a certain shortage of LDPE in the Russian market in the next couple of months.

MRC

SIBUR reduces export EPS prices

MOSCOW (MRC) -- SIBUR has informed its customers that its has reduced its export expandable polystyrene (EPS) prices for August shipments, according to ICIS-MRC Price report.

Buyers in foreign markets said offer prices of Russian EPS of SIBUR dropped to USD30/tonne for all contract shipments in August. The price cut was caused by devaluation of the rouble against the dollar in July, as well as weaker demand for EPS in Ukraine amid stronger demand for Chinese EPS.

According to MRC ScanPlast report, SIBUR-Khimprom produced 47,630 tonnes of EPS in the first half of 2014, down by 3% year on year. SIBUR-Khimprom is the largest EPS producer in Russia and the CIS countries.
MRC