Q3 net profit at SABIC dips 4.5%

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), one of the world's largest petrochemicals groups and the Gulf's largest listed company, reported a 4.5 percent drop in third-quarter net income on Sunday, missing analysts' forecasts, said Reuters.

It earned 6.18 billion riyals (USD1.65 billion) in the quarter, compared to 6.47 billion riyals in the year-earlier period, SABIC reported in a bourse statement.

SABIC, which is 70 percent state-owned, attributed the fall in profits to a drop in sales and other income, although its cost of financing was lower.

Earnings were below the average forecast of nine analysts polled by Reuters, who had predicted a quarterly profit of 6.63 billion riyals.

The company's results are closely tied to global economic growth because its products - plastics, fertilisers and metals - are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.

SABIC chief executive Mohamed al-Mady said in July that the outlook for petrochemical demand over the next three years was positive and there was room for prices to rise.

As MRC wrote before, SABIC and Royal Dutch Shell have shelved plans to expand an existing petrochemical joint venture in Saudi Arabia as the results of feasibility studies were not encouraging. The two partners in the joint project, known as SADAF joint venture in Jubail, on the Gulf coast of Saudi Arabia, first announced plans to explore an expansion of their petrochemical plant in 2012.

Saudi Basic Industries Corporation (SABIC) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Wintershall (part of BASF), Germany’s largest internationally active crude oil and natural gas producer, has closed sale of VNG shares to EWE. The transaction closure means EWE Aktiengesellschaft takes over the 15.79% share of Wintershall Holding GmbH in the East German company Verbundnetz Gas AG (VNG), reported BASF on its site.

The competition authorities, the boards of both companies and the VNG shareholders’ meeting had previously approved the transaction. The transaction will be executed with payment of the purchase price of EUR320 million and will be financially effective retroactively to January 1, 2014. Wintershall and EWE already agreed on the sale in March 2014.

Wintershall is increasingly concentrating on the upstream sector and is therefore divesting its own natural gas trading and storage business. The handover of the VNG shares is part of this strategy. In 2015 Wintershall intends to expand its global oil and gas production to 160 million barrels of oil equivalent. This represents an increase in production of more than half within one decade.

As MRC wrote before, in late 2013, Wintershall Holding announced that it would sell some non-operated assets in the North Sea to Hungary's MOL group (MGYOY) to focus on its own exploration and production activities in the region. The transaction garnered USD375 million for Wintershall and the deal was closed in the first quarter of 2014, pending regulatory approval.

Wintershall Holding GmbH, based in Kassel, Germany, is a wholly-owned subsidiary of BASF in Ludwigshafen. The company has been active in the extraction of natural resources for 120 years, and in the exploration and production of crude oil and natural gas for over 80 years. Wintershall focuses on selected core regions where the company has built up a high level of regional and technological expertise. These are Europe, Russia, North Africa, South America, and increasingly the Middle East region.
MRC

MOSCOW (MRC) -- Westlake Chemical Corporation, the US plastics maker controlled by the billionaire Chao family, has announced that it held a dedication ceremony to celebrate the expansion of its Calvert City, Kentucky Vinyls Complex, as per the company's press release.

This ceremony was attended by The Honorable Steve Beshear, Governor of Kentucky, James Chao, Chairman of the Board of Westlake Chemical and Albert Chao, President and CEO of Westlake Chemical. They were joined by various state and local officials, local industry guests and executives and employees of the company.

"We have enjoyed a long and rewarding relationship with Kentucky, operating since 1990 in Calvert City," said Westlake Chemicals President and CEO Albert Chao. "Our Kentucky operations are a vital hub for our enterprise and over the years, we have invested approximately USD1 billion at Calvert City."

Westlake Chemical has spent in excess of USD300 million into the overall expansion project. This investment included expanding ethylene production capacity and converting its feedstock from propane to ethane to leverage low cost ethane being developed in regional shale gas areas. Additionally, PVC resin capacity was increased to meet the growing demands of global customers.

Westlake Chemical's Calvert City facility employs approximately 400 employees along with 150 core contractors and has been in operation for nearly 25 years.

We remind that, as MRC reported earlier, in May 2014, Westlake Chemical Corp. separated its ethylene assets into a tax-advantaged venture in which it plans to sell shares to the public. The master-limited partnership (MLP) includes three US ethylene plants and a 200-mile (322-km) ethylene pipeline. Ethylene, the most common petrochemical, is used to make products from plastic bottles to autoparts and pipe.

Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVC building products including pipe and specialty components, windows and fence.
mrcpalst.com

MOSCOW (MRC) -- Sahara Petrochemical Co. made SAR 17.1 million net earnings in the third quarter of 2014, plunging 88.48% y/y from SAR 148.4 million and 90.76% q/q from SAR 185 million, said 4-traders.

The nine-month net profit fell 24.59% to SAR 302 million, compared with SAR 400.5 million in the year-ago period.

The company ascribed the fall in profit to the decline in production and sales due to the planned shutdown of Saudi Ethylene & Polyethylene Co. (associate company) which lasted for 24 days as announced earlier, also the emergency shutdown of Al Waha plant (an affiliate company) as announced earlier. In addition, the reason of the decrease in Q3 profit y/y was the decline of production and prices of products of companies that entered to commercial operation phase recently. The companies are: Saudi Acrylic Acid plant (SAAC) and Sahara and Maaden Petrochemical Company

As MRC wrote before, Sahara Petrochemical Co., the Saudi Arabia-based firm which announced plans to merge with Saudi International Petrochemical Co. (Sipchem), has earned net profit of SR578.7 million in 2013, registering a growth of 183% compared to net profit of SR204.4 million in 2012.

Sahara Petrochemical is involved in building and operating petrochemical projects, especially propylene, polypropylene, ethylene and mixed polyethylene industries.

MRC

MOSCOW (MRC) -- European oil giant BP Plc (BP.L,BP_UN.TO: Quote,BP: Quote) reported a sharp plunge in third-quarter 2014 pre-tax profit to USD2.61 billion, from USD5.17 billion last year, said the company.

For the quarter, profit attributable to BP shareholders fell to USD1.29 billion from USD3.5 billion for the same period in 2013.

Third-quarter replacement cost profit totaled USD2.385 billion, versus the prior year's USD3.18 billion. After adjusting for a net charge for non-operating items of USD798 million and net favorable fair value accounting effects of USD146 million (both on a post-tax basis), underlying replacement cost profit was USD3.04 billion for the quarter, compared with USD3.69 billion a year ago.

Quarterly sales and other operating revenues dropped year-over-year to USD93.9 billion from USD96.6 billion.

Additionally, the company announced a quarterly dividend of 10.00 cents per ordinary share or USD0.600 per ADS, which is expected to be paid on December 19, 2014. The corresponding amount in sterling would be announced on December 8, 2014.

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