Hungary refiner MOL targets downstream M&A, seeks 10% expansion

MOSCOW (MRC) -- Mol Nyrt., the Hungarian oil refiner which posted its biggest quarterly loss in more than five years, is seeking to raise production by 10% this year and resume acquisitions after crude prices slumped, reported Hydrocarbonprocessing.

"We will assess every downstream acquisition possibility in the region" and "I hope we can make announcements in this respect this year," Ferenc Horvath, Mol’s executive vice president in charge of refining and marketing, said in an interview Tuesday.

The company seeks to raise the amount of retail products it sells in central and eastern Europe to 5.4 billion liters a year by 2017 from 4.3 billion liters, Horvath said.

Hungary’s largest listed company had a 68.6 billion forint (USD254 million) net loss in the three months ending December, compared with a 5.2 billion forint profit a year earlier, it said in a regulatory statement on Tuesday. One-time items, including the revaluation of oil reserves, caused the loss, the results showed. Mol’s stock rose after the company said it plans to raise upstream output by about 10% to as much as 110,000 bpd of oil equivalent in 2015.

Mol is looking to expand production and acquisitions after facing dwindling reserves in eastern Europe, a civil war in Syria disrupting its operations and an almost 50% decline in oil prices last year.

The company expects downstream earnings before interest, taxes, depreciation and amortization to increase to between USD1.3 billion to USD1.4 billion/year by 2017 from USD870 million in 2014 as a result of an efficiency improvement program starting in 2015, Horvath said. The company seeks to generate close to USD900 million in normalized cash flow in three years, he added.

As MRC informed earlier, MOL is applying its squeeze-out right for shares of petrochemicals company TVK, a Hungarian manufacturer of olefins and polyolefins such as polyethylene and polypropylene. The agency added that MOL wound up a voluntary public purchase offer for the shares on Friday, raising its stake in TVK from 94.86% to 99.1%, providing all preconditions were met.

MOL previously said Hungarian authorities had dismissed the allegations against MOL, which now holds a 49.1% share of INA. Hungary's government holds a 24.6% stake in MOL.
MRC

MOSCOW (MRC) - Regular export sales of low density polyethylene (LDPE) by Polymir (Naftan, Belarus) production were held on 10, March. Buying activity in the auction was low, but prices continued to rise for some regions, according ICIS-MRC Price Report.

The electronic export sales of LDPE were held on the United Trading Site at "Belneftekhim". LDPE was produced by Polymir, subsidiary of "Naftan". Buying activity was low at the auction, despite the quite acceptable level of starting prices. By the end of the sales prices rose to the level of EUR1,055/tonne FCA Novopolotsk. Total volume of March LDPE put up for electronic sales was 3,000 tonnes, of which 1,400 tonnes for deliveries to Russia and 1,600 tonnes for deliveries to other countries.

Demand from foreign markets was low, however LDPE prices in the end of sales increased for all countries except Russia. Deals were done in the range of EUR1,020-1,050/tonne FCA Novopolotsk, whereas two weeks ago they had been done in the range EUR880-1,000/tonne FCA Novopolotsk.

There was practically no demand from Russian companies because of the high level of starting prices and lower domestic prices. So, prices remained at the starting level: Rb67,200/tonne FCA Novopolotsk, for 158 LDPE.
MRC

MOSCOW (MRC) -- Taiyo Petrochemical is likely to shut its styrene monomer (SM) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Japan informed that the plant was is likely to be taken off-stream in October 2015. It is likely to remain shut for around one month.

Located at Ube in Japan, the plant has a production capacity of 370,000 mt/year.

As MRC informed previously, Taiyo Petrochemical took off-stream its SM plant in Ube for maintenance in September 2014. The shutdown lasted for around 30 days.

We also remind that Grand Pacific Petrochemical Corp is likely to shut its SM plant for maintenance turnaround in November 2015. It is likely to remain off-stream for around one month. Located in Tashe, Taiwan, the plant has a production capacity of 140,000 mt/year.
MRC

MOSCOW (MRC) -- TPSC Asia will be shutting its polystyrene (PS) plant on schedule for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Singapore informed that the plant will be shut in mid-April 2015. It will remain off-stream for around one month.

Located in Singapore, the plant has a production capacity of 100,000 mt/year.

We remind that, as MRC wrote before, Hong Kong Petrochemical is likely to shut its PS plant for maintenance turnaround in Q1, 2015. Located in Yuen Long industrial estate, Hong Kong, the plant has a production capacity of 140,000 mt/year.

Besides, French Total, Europe’s third-largest oil company, is in plans to start a new PS plant in China in September 2015. To be located at Ningbo, China, the plant is expected to have a production capacity of 200,000 mt/year.
MRC

MOSCOW (MRC) -- PlastiComp Inc., a global leader in long fiber thermoplastic (LFT) materials and technologies, and Xenia, a materials development company specializing in carbon fiber reinforced thermoplastic composites, said the producer in the press release.

As part of the partnership, Xenia will develop innovative solutions based on PlastiComp’s Complet long carbon fiber reinforced thermoplastic composites and Xenia’s XECARB short carbon fiber reinforced thermoplastic composites for the European market.

Injection moldable Complet long fiber composite pellets from PlastiComp are available with 15-50% carbon fiber in thermoplastic polymers from polypropylene to PEEK. Composite formulations can be custom engineered to include wear reduction, electrical conductivity, and flame retardant functions in addition to long fiber structural reinforcement. Continuous fiber reinforced tapes are available in 0.5 to 7.5 cm widths in the same polymer range as pellet products.

PlastiComp recently developed a line of hybrid long glass+carbon fiber composites that combine long glass and carbon fiber together into a single ready-to-mold pellet. Hybrid products are available with variable combinations of the fiber types to bridge the performance gap between using either of these two fibers alone, they also lower the entry cost for adopting carbon fiber technology by reducing the quantity of carbon fiber needed to obtain high-performance properties.

Xenia engineers and manufactures reinforced thermoplastic composites for structural applications used in the most advanced fields. They combine reinforcing fibers, such as carbon or aramid, with functional additives, such as PTFE, to improve the mechanical and tribological properties of thermoplastic polymers. Xenia compounds fiber reinforcement with thermoplastic elastomers for applications where flexibility, resistance to fatigue, and impact are required or with stiffer engineering thermoplastic polymers, such as PA, PPS, PPA, or PEEK, for heavy duty, high-performance, and high temperature environments. Their products are highly recommended for the replacement of metals in applications ranging from industrial, transportation, oil and gas, agriculture, to technical sports.

As MRC wrote before, Royal DSM signed a partnership agreement with PlastiComp, Inc., based in Winona, Minnesota, USA, to develop new innovative bio-based Long Fiber Thermoplastic (LFT) composite materials for the automotive and other performance-driven markets.

PlastiComp, Inc. is a globally recognized leader in long-fiber reinforced composite thermoplastics, providing, as well as developing the marketability of, long-fiber reinforced thermoplastic (LFT), direct long-fiber reinforced thermoplastic (D-LFT), and direct-glass mat thermoplastic (D-GMT) technologies.
MRC