SIPCHEM net profit rises 11% to SR473.8 million

MOSCOW (MRC) -- Saudi International Petrochemical Co. (SIPCHEM) today reported net profit of SR473.8 million for the nine months ended September 30 this year, representing 11.82% increase over the same period of last year, said Gulfbase.

The increase in net profit during nine months of 2014 is due to increase in some of company’s products prices.

Earnings per share was SR 1.29 compared with SR 1.15 per share for the same period last year.

SIPCHEM operating profit increased by 13.5% to SR 917 million during first nine months of year 2014 compared to SR 808 million of the same period last year.

SIPCHEM said it has registered a net profit of SR160.6 million in the third quarter 2014 compared to a net profit of SR 185.2 million in the same period last year, reflecting a decrease of 13.28%. Decrease in Net profit is due to decrease in production quantities and accordingly sales quantities due to unplanned shutdown of Methanol plant and planned shutdown of Butandiol plant during the third quarter of current year which was announced in TADAWUL site on 24-07-2014 and 31-08-2014 in addition to the increase in feedstock prices (Butane and Ethylene).

As MRC wrote before, in late 2013, Saudi International Petrochemical Co. (SIPCHEM) said it expects to sign a share-swap merger agreement with Sahara (SPC) Petrochemicals Co. in the first half of 2014, seeking to create a company with about USD5 billion in market value.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

MOSCOW (MRC) -- A flame-retardant and glass fiber-reinforced polyamide (PA), the new Ultramid A3U42G6, is now part of BASF’s plastics portfolio, as per the company's statement.

This light colorable grade features easy processing with reduced deposit formation and corrosivity. Thus, it increases the durability of plasticizing units and injection molds and helps reducing production stoppages due to service and maintenance.

The new material meets UL 94 requirements for the V-0 flammability class at wall thicknesses as low as 0.4 millimeters. Its thermal ageing resistance has been considerably improved over that of well-known glass fiber-filled polyamide grades. With an RTI for dielectric strength (UL 746B) of 140 C at a wall thickness of 0.4 millimeters and even 150 C at thicknesses starting at 0.75 millimeters, the new Ultramid A3U42G6 is especially well suited for use at higher temperatures.

The new flame retardant system shows no migration effects and thus ensures component surfaces of higher quality. It also contains no halogen or antimony components. This allows favorable smoke density and toxicity values to be attained and also complies with the WEEE and ROHS directives.

Reinforced with 30% glass fibers, Ultramid A3U42G6 possesses the good mechanical properties typical of polyamides, and can be marked by laser, when colored black. This new grade is especially suitable for connectors and thermally stressed industrial automation applications such as switchgears and contactors. Effective immediately, the material is available in commercial volumes and with extensive supporting data.

We remind that, as MRC reported earlier, BASF, the German chemicals giant, and Archroma have recently agreed on the sale of BASF’s global textile chemicals business to Archroma, a supplier of specialty chemicals to the textile, paper and emulsions industries. Archroma is a portfolio company of SK Capital Partners, a private investment firm with focus on the specialty materials, chemicals and healthcare sectors. It is planned to integrate the business into the Archroma Textile Chemicals Specialties business. Currently, the textile chemicals business is part of BASF’s Performance Chemicals division.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Pamplona Capital Management LLP dropped plans to buy Innovia Films Ltd., which supplies materials for banknotes, as the buyout firm’s ties to a Russian billionaire raised concerns from the Bank of England and Bank of Canada, said Bloomberg, citing people with knowledge of the matter.

Arle Capital Partners entered into exclusive talks with Pamplona, which is backed by Mikhail Fridman, about the sale of Innovia for about 500 million euros (USD641 million) in November last year, said two people, who asked not to be identified because the talks were private.

Following the agreement a number of customers at the Wigton, England-based company’s bank-note division -- including central banks in Australia and Canada -- expressed concerns over it being owned by Pamplona, the people said. Officials at the Bank of England, which agreed in March to use Innovia’s materials for its polymer notes, also raised objections, they said.

Pamplona’s cornerstone investor is Alfa Group, according to the company’s website. Fridman, 50, who has a net worth of USD13.5 billion and is the majority shareholder of Alfa Group, according to data compiled by Bloomberg Billionaires, is currently facing regulatory delays to his bid to buy German utility RWE AG’s oil and gas arm, RWE Dea AG.

While tensions between Russia and Western governments have been building since the end of last year over its military and territorial dispute with Ukraine, the banks’ concerns were raised before trade sanctions were imposed on the country in March, the people said. Neither Fridman nor the companies he controls are subject to any restrictions.

Pamplona chose to back out of the deal in the first quarter of 2014, the people said. Arle formed a consortium of investors to buy out the company’s existing backers in April, according to a statement.

Spokesmen for Arle, the Bank of Canada, Pamplona and the Reserve Bank of Australia declined to comment. A Bank of England spokeswoman said the U.K. central bank doesn’t comment on the commercial activities of third parties. Representatives for Innovia and for Mikhail Fridman didn’t respond to requests for comment.

MRC

MOSCOW (MRC) - Calculated consumption of suspension polyvinyl chloride (SPVC) in Russia decreased by 8% in the first nine months of 2014.
Demand for PVC has declined in all sectors of consumption, according to a survey MRC ScanPlast.

Russia's supplies of PVC foe the first time in this year exceeded 100,000 tonnes in September, on the back of the increase in production and imports. Total calculated consumption (production + imports - exports) decreased to 691,700 tonnes in January - September this year, compared with 754,500 tonnes year on year. Demand for PVC declined by 5-10% depending on the consumption sector.

Russian producers managed to increase PVC output over the reported period to 457,300 tonnes, up 3% year on year. Increase in production figures showed Bashkir Soda Company (due to capacity expansion) and Kaustik (Volgograd), as well as RusVinil, which launched PVC production in mid-September.

Russia's PVC imports has decreased to 236,600 tonnes in the first nine months of the year, down 24% year because of a weaker demand from converters and rouble devaluation. PVC supplies from Europe and the United States have significantly decreased, while Chinese producers managed to increase their PVC shipments in Russia. PVC imports in Russia is expected to go down further this year as well as next year on the launch of RusVinil and expectations of further decline in demand for finished products made of PVC.

PVC export from Russia was practically absent because of a lack of capacities; PVC exports from Russia were less than 3,000 tonnes in the first nine months of the year, which made about 1% from the total PVC production in the country over the reported period. Demand for suspension PVC declined in all sectors of consumption.

According to official data of Rosstat, the production of plastic windows and window sills in the nine months of the year decreased to about 187.7 mln sq. m, down 7% year on year. A similar situation was seen in the markets of PVC pipes and plastic compounds, there was also a reduction in demand for finished products made from 5% to 10%.


MRC

MOSCOW (MRC) -- Bashkir Soda Company, Russia's third largest polyvinyl chloride (PVC) producer after RusVinyl and Sayanskkhimplast, resumed its PVC production after an outage for maintenance, according to ICIS-MRC Price report.

The plant had resumed production of material by Monday, 20 October, after nearly a two-week turnaround. The plant was shut down on 5 October, its annual production capacity is 230,000 tonnes.

As reported earlier, Kaustik (Volgograd) plans to resume its production after maintenance works before the end of this week, the plant shut down its PVC production with the annual production capacity of 90,000 tonnes on 3 October.

Open Joint Stock Company "Bashkir Soda Company" OJSC ("BSC") was formed in May 2013 by merging the two companies: JSC "Soda" and JSC "Kaustik". To date, JSC "BSC" is one of the largest chemical complexes in Russia. The plant's main products are caustic soda and chlorine, soda ash, sodium bicarbonate, PVC, cable compounds, hydrochloric acid, corrosion inhibitors, wood-polymer composite, calcium chloride, terephthaloyl chloride and other chemical products. The overall PVC production increased to 172,200 tonnes over the first nine months of 2014 from 155,700 tonnes a year earlier.
MRC