BP Q3 profit slumps

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

MOSCOW (MRC) -- Sasol Limited has announced the final approval of an USD8.1 billion ethane cracker and derivatives complex at its existing site in Lake Charles, Louisiana, reported the company on its site.

"Sasol’s decision to move forward with this project is a defining moment in our company’s history, and an important milestone in the execution of our growth strategy," said David Constable, President and Chief Executive Officer, Sasol Limited. "Once commissioned, this world-scale petrochemicals complex will roughly triple our chemical production capacity in the United States, enabling Sasol to further strengthen its position in a growing global chemicals market. The US Gulf Coast’s robust infrastructure for transporting and storing abundant, low-cost ethane was a key driver in our decision to invest in America."

At the heart of the project is an ethane cracker that will produce 1.5 million tons of ethylene annually, benefitting from significant economies of scale. The complex also includes six chemical manufacturing plants. Approximately 90% of the cracker’s ethylene output will be converted into a diverse slate of commodity and high-margin specialty chemicals for markets in which Sasol has a strong position, underpinned by collaborative customer relationships.

Sasol has selected Fluor Technip Integrated, a joint venture of two world-class firms, as the primary engineering, procurement, and construction management contractor for this project. Sasol’s project management team is also supported by WorleyParsons, who bring with them significant mega-project experience.

An additional USD800 million will be invested in infrastructure and utility improvements, as well as land acquisition, to establish the Lake Charles location as an integrated, multi-asset site that will enable growth for decades to come.

Sasol is well-advanced in raising the funds required for construction and will utilise a variety of international US dollar-based sources. Site preparation is underway, and the company expects that the facility will achieve beneficial operation in 2018.

As MRC informed previously, in August 2014, KBR was awarded a contract from Ineos and Sasol to provide engineering, procurement, and construction (EPC) services for a new high-density polyethylene (HDPE) facility to be located at Ineos' Battleground complex in La Porte, Texas. The new facility is designed to produce 470,000 tpy of bimodal HDPE using Innovene S process technology licensed from INEOS Technologies. The new, single-train facility will include new polymerization, pelletization, and railcar load-out facilities, plus upgrades to existing utilities and infrastructure.

Sasol Limited is an integrated energy and chemical company based in Johannesburg, South Africa. It develops and commercialises technologies, including synthetic fuels technologies, and produces different liquid fuels, chemicals and electricity.
MRC

MOSCOW (MRC) - Despite the anticipations of many market participants, prices for high density polyethylene (HDPE) did not increase in October in the Russian market. Scheduled maintenance works at Kazanorgsintez had no impact on the market, and sluggish demand resulted in a decline in prices in some sectors of consumption, according to ICIS-MRC Price Report.

Despite nearly two weeks shutdown of the Russia's largest HDPE producer Kazanorgsintez in October, prices did not increase. On the contrary, sluggish demand has led to the weakening of prices for film and pipe PE in the end of the month. Supply of blow moulding and injection moulding HDPE continued to be tight, but this factor did not have a serious impact on the market.

Demand for pipe HDPE was quite strong in September. Scheduled works of Kazanorgsintez and Nizhnekamskneftekhim made many converters to build up their stock inventories. Market activity has weakened in the pipe PE in October, as many companies did not buy PE, having large carryovers from September.

Supply of PE was more than enough this month, in particular natural PE100. As a result, prices for natural PE100 dropped to Rb80,000-81,500/tonne FCA, including VAT in the late October. Prices for black PE100 remained at the level of September.

There were practically no offers for film HDPE from Kazanorgsintez because of maintenance works, but this factor was offset by a large supplies from Nizhnekamskneftekhim and a seasonal decrease in demand. Many market participants reported a decline in prices in the late October, deals for Russian PE were heard in the range of Rb81,500-82,000/tonne FCA Nizhnekamsk, including VAT.

Prices for Middle Eastern film HDPE were on average at Rb83,000-85,000/tonne FCA, including VAT. Supply of Russian blow moulding HDPE was not resumed in the market this month. Kazanorgsintez because of the technical problems postponed the time of blow moulding PE shipments to the domestic market to the beginning of November, before that the first shipments expected to be done in the second decade of October.

Nevertheless, the low demand in this sector offset the absence of Russian HDPE in the market. Price offers for Middle Eastern PE were in the range of Rb84,000-87,000/tonne FCA St Petersburg, including VAT and Rb83,000-84,000/tonne FCA Astrakhan, including VAT.

The situation in the market of injection moulding HDPE was unusual. Supply of Russian injection moulding HDPE was tight in October, materials on the market for months was negligible, and was reduced to the PE with melt flow index (MFI) = 2 by production of Gazprom neftekhim Salavat. Imported material was sold in the first days of the month.
Situation is expected to be improved in the second half of November, when two Russian producers resume production of injection moulding HDPE - Gazprom neftekhim Salavat and Kazanorgsintez.
MRC

MOSCOW (MRC) -- Polymir, the only Belarusian producer of low density polyethylene (LDPE), resumed its production after an outage for maintenance, reported MRC analysts.

Polymir resumed operations at its second LDPE reactor on 25 October after a turnaround. The plant was shut down on 5 October, the outage lasted about three weeks. The second LDPE reactor's production capacity is 65,000 tonnes per year. Maintenance works at the plant's first stage were carried out in May 2014.

Polymir was founded in 1968. Technologies of the largest foreign firms from England, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), as well as developments of scientific research institutes of the CIS countries, were used in the process of the plant's production and technical facilities foundation. The plant's annual LDPE production capacity is 130,000 tonnes. Polymir's overall production totalled 82,100 tonnes over the first nine months of 2014.
MRC

MOSCOW (MRC) -- Swiss Solvay, a privately owned multinational chemicals company, has unveiled its breakthrough innovation for surface cleaning formulations, as per the company's statement.

While Mirapol Surf S polymers are a well-established range of polymers for hydrophilization of surfaces such as ceramic, glass, stainless steel, Solvay launches a unique technology enabling formulators to deliver the key benefits consumers now expect for even modern plastic surfaces.

With Mirapol Surf N, Solvay makes a step change in household cleaning making it effortless and longer-lasting.

Mirapol Surf N are natural-based polymers which hydrophilize plastic-derived surfaces, leading to spot-less cleaning, faster and uniform drying, and easier subsequent cleaning thanks to reduced soil adhesion.

Mirapol Surf N polymers were specifically designed to help gently clean and accelerate the drying of plastic kitchen surfaces, plastic dishware in dishwashers, plastic shower doors, etc. Mirapol Surf N key benefits can also be outside the house on whiteboards, lab benches and many other applications.

Mirapol Surf N HSC is suitable for plastic-coated surfaces in kitchens and bathrooms: the hydrophilization of the surface reduces soil adhesion, leaving it cleaner longer and making next time cleaning much easier and faster.

Mirapol Surf N ADW is suitable for Automatic Dish Wash: the hydrophilization of plastic dishware makes the drying faster and spot-free. No need to dry plastic boxes by hand at the end of the cycle.

As MRC wrote before, Solvay SA and Ineos Group AG have given a name to their chlorovinyls joint venture, Inovyn, as the two firms prepare the launch the company by the end of 2014. The new company will officially open following divestments by both companies required by the European Commission. Until completion, Solvay and Ineos will continue to run their businesses separately.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC