Westlake announces record second quarter 2014 income from operations

MOSCOW (MRC) -- Westlake Chemical Corp reported that its second-quarter net income was USD169.44 million or USD1.26 per share, compared to prior year's net income of USD145.82 million or USD1.09 per share, said the company in its press release.

On average, six analysts polled by Thomson Reuters expected earnings of USD1.44 per share for the quarter. Analysts' estimates typically exclude special items.

The profit was benefited primarily from improved olefins integrated product margins, as higher sales prices more than offset the increase in feedstock and energy costs, and higher olefins sales volumes.

Net sales for the second quarter of 2014 increased to USD998.58 million from last year's USD939.05 million. Analysts expected sales of USD1.06 billion.

The sales growth was mainly attributable to higher sales prices for most of the firm's major Olefins products and higher sales volumes for polyethylene, styrene and caustic soda. These were partially offset by lower sales volumes for PVC resin and ethylene co-products.

Earnings before interest expense, income taxes, depreciation and amortization or EBITDA was USD319.9 million, compared to USD275.3 million in 2013.

Westlake Chemical Corporation, is a vertically integrated manufacturer and marketer of basic chemicals, vinyls, polymers and fabricated building products. The Company's products include some of the widely used chemicals in the world, which are fundamental to many diverse consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, residential and commercial construction as well as other durable and non-durable goods. In July 2014, the Company acquired Vinnolit Holdings GmbH and its subsidiary companies from Advent International.MRC

MOSCOW (MRC) -- Serbia opened an investigation into the sale of Naftna Industrija Srbija to OAO Gazprom Neft five years after the government signed a 30-year energy pact with Russia that ceded control over its oil and gas market, said Hydrocarbonprocessing.

Interior Minister Nebojsa Stefanovic "formed a special investigation team to examine all the facts and circumstances related to the privatization of Naftna Industrija Srbije," his ministry said by e-mail. Novi Sad-based NIS referred all questions to the governments of Russia and Serbia.

Gazprom Neft’s press service wasn’t immediately available for comment.

The sale is coming under scrutiny as Premier Aleksandar Vucic faces growing pressure from opposition parties to disclose details of contracts his government reached with investors from the United Arab Emirates since 2012, including a deal to transfer 49% in Air Serbia AD to Etihad Airways. Both NIS and Air Serbia are part of strategic partnership accords Serbia has with Russia and the UAE.

Serbia sealed the agreement to sell its only refiner amid a gas dispute between Russia and Ukraine in late 2008 and early the following year. It sold a 51% stake in NIS to Gazprom Neft for 400 million euros (USD536 million) in 2009, when the company had 993.8 million euros in capital.

The sale also gave the oil-production arm of OAO Gazprom 51% in a local gas company in charge of South Stream construction through Serbia.

Gazprom Neft invested 500 million euros in NIS upgrades during the following three years.

The sale was approved by Premier Mirko Cvetkovic, whose ruling coalition in 2008-2012 included the Democratic Party of former President Boris Tadic and the Socialists of former Serbian strongman Slobodan Milosevic.
MRC

MOSCOW (MRC) -- The weakening of the rouble against the dollar at the end of last week boosted prices of Chinese acetylene polyvinyl chloride (PVC) in the Russian market. At the same time, supply of polymer by traders is tight, according to ICIS-MRC Price report.

Export prices of acetylene PVC in China have remained the same for the last three months. However, the August depreciation of the rouble against the dollar led to an increase of, at least, Rb1,000/tonne in prices of Chinese material in the Russian market. Some traders said they do not rule out the fact that they will sell out all their quantities by the second half of the month on the backk of stronger demand for PVC from converters.

Traders announced a rise in spot prices of Chinese acetylene PVC late last week to Rb49,500-50,000/tonne, CPT Moscow, including VAT, for K=65. Offer prices of the deficient resin with K=70 reached Rb53,000/tonne, CPT Moscow, including VAT.

Higher contract prices and tight supply of Russian PVC in August forced many converters to completely shift to purchasing Chinese acetylene resin. As a consequence, demand for resin exceeds supply at present, some traders said. It is also possible that PVC stocks will completely run out at traders' warehouses by the end of the month.
MRC

MOSCOW (MRC) -- BP Amoco is operating one of two chemical production units at its Berkeley County plant after a USD25 million fire Saturday, reported The Post and Courier.

The oil and chemical giant on the Cooper River suffered extensive damage to a compressor building in the early-afternoon blaze that was brought under control in about 45 minutes. No one was injured.

BP spokesman Scott Dean said the company shut down one of the two purified terephthalic acid, or TPA, production units as a result of the fire.

"BP is assessing the extent of damage to the compressor building and working to get the unit safely restarted," Dean said. "The rest of the Cooper River plant continues to operate and produce TPA for customers."

TPA is used in polyester fibers, paint, pharmaceuticals and various other applications.

As MRC wrote previously, European oil giant BP Plc.'s profit before taxation for the second quarter of 2014 increased to USD5.15 billion from USD4.12 billion in the year ago quarter. Quarterly profit attributable to shareholders grew to USD3.37 billion from last year's USD2.04 billion, with earnings per ADS improving to USD1.09 from USD0.64 in the previous 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

MOSCOW (MRC) - Russia's imports of expandable polystyrene (EPS) decreased by 9% in January-July 2014 compared to the same time a year earlier, according to MRC ScanPlast.

Total EPS imports in Russia exceeded 37,000 tonnes over the reporting period. The greatest demand in the current year has occurred for the Chinese grades of EPS-F-SA by Loyal production, with 8,000 tonnes imported in January-July 2014. The second position took F-MS grade by Loyal production, with about 7.600 tonnes imported in January-July 2014.
The decline in imports contributed to the increase in demand for Russian EPS, which is traditionally cheaper than imports, leading to a shortage of the material in the country in the spring and early summer.

Imports of EPS increased in July. Russia's EPS imports were 9,300 tonnes in July, up 1,200 tonnes from the June's level.

Russian companies expectedly increased their EPS purchases this summer on the back of the shortage of domestic production. The increase of EPS imports in June and July helped reduce the acute shortage of the material in the Russian market.
MRC