Unipetrol posted Q4 loss

MOSCOW (MRC) -- In Q4 of last year, Unipetrol continued in very good results from the previous period and confirmed a significant improvement of its operating indicators and also profitability, said the company in its press-release.

Company recorded operational profit (EBITDA LIFO) of CZK 2.618 bn. Net profit reached CZK 598 m. Revenues increased y/y by 15% to CZK 28.939 bn in 4Q14. During the last three months of 2014, Unipetrol managed to maintain a very high utilization of its production units. Refinery utilization has reached the level of 88%, within the petrochemical production steam-cracker unit was utilized at the level of 90%.

In the downstream segment, that combines refinery and petrochemical segments, the company recorded EBITDA LIFO of CZK 2.330 bn in 4Q14. The results in the segment was positively influenced by better margins (both refining and petrochemical) supported by profound decline of crude oil prices, development of FX – weaker exchange rate of CZK against USD and higher sales volumes. Grey zone reduction on the fuel market had a positive impact on sales volumes and margins. Last but not least, positive result of the downstream segment has been affected by lower energy costs thanks to significantly lower crude oil price and ongoing projects within the Operational Excellence. On the other hand, results of the segment were negatively affected by inventory revaluation effect (-775 m CZK) or refining assets impairment of CZK -151 m.

Operational profit EBITDA LIFO in the petrochemical part of downstream segment amounted at CZK 2.213 bn in 4Q14. Company recorded a sales increase of petrochemical products to 439kt in Q4 (+4% y/y), caused by higher market demand. Increase in market demand was driven by lower price level due to steep decline of crude oil price. The sales of polyethylene increased by 13% and of polypropylene by 12%.

Financial results for 2014 were significantly affected by accounting of several one-off accounting items. The most significant of these items was the impairment of refining assets (-4.721 bn CZK) in the second quarter of the year. Without the one-off effects, the Unipetrol Group would post a net profit of 2.094 bn CZK for last year, with their inclusion company managed to reduce the net loss to -556 m CZK (-1.396 bn in 2013).

The revenues of the company Unipetrol grew by 25% y/y and amounted to 124.229 bn CZK. This increase was supported by the finalization of purchase of Shell's stake in Ceska rafinerska and related increase of refinery capacity. In the second half of year 2014, Unipetrol also significantly increased sales across all segments of its business. In 2014, the company achieved operational profit before interests, taxes, depreciation and amortization (EBITDA LIFO) of 3.102 bn CZK. During the year, the company continued in implementation of projects in improving of the Operational Excellence, with the positive effect on operational profit of 1.062 bn.

As MRC reported earlier, last year, Unipetrol acquired technology and production rights for a new polyethylene unit and wants to pick a contractor for the project in the first half of 2014. The company, after posting net losses in 2011 and 2012, laid out plans to invest almost USD1 billion over the next five years and make its petrochemical segment the biggest contributor to profit.

Unipetrol expects petrochemicals to become the largest source of revenue for the company in 2013-2017. Unipetrol wants to use the favourable market conditions to reinforce its position on the petrochemical market and optimise its operations.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.

MRC

MOSCOW (MRC) -- Japanese plastic foam manufacturer JSP Corp. is investing USD15.2 million in factories in China and Thailand to make expanded polypropylene, to meet what it said is increased demand for light-weighting of cars and for the appliance and electronics industries, as per Dongguan Informer.

The new investments are the latest in a series of new plants the Tokyo-based company has set up globally. Thus, in the first half of 2014, it announced an USD8.2 million factory outside Detroit for cross-linked expanded PE sheet foam, and the opening of a large EPP plant in Japan, its third in its home country.

The new investment in China, in the city of Wuhan, Hebei Province, will be JSP’s fourth plant in that country when it opens in early 2017. The USD10.1 million factory will have a capacity of 3,000 tons per year of the JSP’s Arpro-brand EPP materials.

"Automakers in China are expected to rapidly lower the weight of vehicles as increasingly strict fuel efficiency requirements are implemented," JSP said. "Furthermore, demand for home appliances is expected to grow along with personal income. Due to this outlook, demand for Arpro is likely to continue increasing in China."

Wuhan is a large car making center in China. The company said the new location will help it reduce shipping costs and meet "strong" economic growth in central and southwestern China.

The company also has facilities in Wuxi, Jiangsu province; Dongguan, Guangdong province and the city of Chongqing. The Wuhan factory will give it capacity of 24,000 tons of EPP in China.

The new Thai facility, in an industrial estate about 18 miles east of Bangkok, will be smaller than the Chinese facility, with a capacity of 1,800 tons of Arpro when it opens in January 2016.

The USD5.1 million investment is designed to serve the global auto industry’s factories in Thailand, as well as the sizable concentration of electronics manufacturers in the 10-nation Association of Southeast Asian Nations region.

"Most of the ASEAN production operations of Japanese automakers are located in Thailand," the company said. "In recent years, the ASEAN region is one of the few areas of the world with high prospects for strong economic growth. Economies are growing rapidly in Thailand and Indonesia as well as in many other countries in this region."

We remind that, as MRC wrote before, in 2014, Oriental Energy started a new polypropylene (PP) plant in China. Located in Zhangjiagang, China, the plant will have a production capacity of 400,000 mt/year.
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MOSCOW (MRC) -- Shaoxing Sanyuan Petrochemical has taken off-stream a propane dehydrogenation (PDH) unit owing to technical issues, reported Apic-online.

A Polymerupdate source in China informed that the unit is off-stream since early this week. A restart schedule for the unit could not be determined.

Located in Zhejiang province, China, the unit has a propylene capacity of 450,000 mt/year.

As MRC informed previously, in late December 2014, Honeywell's UOP announced that China had commissioned the first of 14 planned propylene production units, using technology from UOP to help close the global propylene supply and demand gap.

Thus, China’s Petrochemical Co. became the first Chinese producer to start production of propylene using UOP C3 Oleflex process technology, which efficiently produces propylene from propane. China’s Zhejiang Satellite Petrochemical Co. became the first Chinese producer to start production of propylene using UOP C3 Oleflex process technology, which efficiently produces propylene from propane.
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MOSCOW (MRC) -- Siam Styrene Monomer Co Ltd is likely to shut its styrene monomer (SM) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Thailand informed that the plant is likely to be shut in Q1, 2015. A definite schedule for the shutdown could not be ascertained.

Located at Map Ta Phut in Thailand, the plant has a production capacity of 300,000 mt/year.

Besides, Taiwan Styrene Monomer Corp (TSMC) is in plans to undertake a maintenance turnaround at its SM plant in Taiwan in Q3, 2015. It is likely to remain off-stream for around one month.Located at Linyuan in Kaohsiung, Taiwan, the plant has a production capacity of 180,000 mt/year.

We remind that, as MRC informed previously, Asahi Kasei Chemical is likely to shut its SM plant in Japan for maintenance turnaround in mid-September 2015. It is likely to remain off-stream for around one month. Located at Mizushima in Japan, the plant has a production capacity of 390,000 mt/year.
MRC

MOSCOW (MRC) -- Celanese Corp. (CE) on Thursday reported a fourth-quarter loss of USD84 million, after reporting a profit in the same period a year earlier, as per the company's press-release.

The Irving, Texas-based company said it had a loss of 55 cents per share. Earnings, adjusted for non-recurring costs and to account for discontinued operations, were USD1.28 per share.

The results exceeded Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of USD1.19 per share.

The chemical company posted revenue of USD1.56 billion in the period, which did not meet Street forecasts. Analysts expected USD1.69 billion, according to Zacks.

For the year, the company reported profit of USD624 million, or USD4 per share. Revenue was reported as USD6.8 billion.

Celanese expects full-year earnings in the range of USD5 to USD5.50 per share.

Celanese shares have declined 2.5 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit USD58.46, a rise of 6 percent in the last 12 months.

As MRC informed earlier, Celanese Corporation has recently introduced a range of detectable polymer technologies that can help original equipment manufacturers (OEMs) and suppliers ensure products contain components and parts that meet their material specifications.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Texas, Celanese employs approximately 7,400 employees worldwide and had 2013 net sales of USD6.5 billion.
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