Lanxess to maintain a constant dividend

MOSCOW (MRC) -- Specialty chemicals company Lanxess intends to pay a dividend constant with that of the prior year, as per the company's press release.

The Board of Management of the Cologne-based enterprise plans to propose to the Annual Stockholders' Meeting on May 13, 2015, that a dividend of EUR 0.50 per share be paid for fiscal 2014. This would result in a total dividend payout of around EUR 46 million. The proposal remains subject to the approval of the Supervisory Board.

"Despite the challenges it faces, Lanxess is still following a consistent dividend policy. Even as we work on our realignment, we intend to give our shareholders an appropriate share in our company's success," said Matthias Zachert, Chairman of the Board of Management of Lanxess AG.

Key factors underlying this decision were that Lanxess was able to reduce its net financial liabilities faster than expected in 2014, to around EUR 1.3 billion, and that it has a very sound liquidity position. "We are making good progress with our realignment. Year on year, we have increased earnings and also substantially reduced our debt by around EUR 400 million," continued Zachert.

As MRC reported earlier, in January 2015, Lanxess Corporation added two new highly concentrated antioxidants to its existing range of biodiesel stabilizers. The new products - Baynox Ultra and Baynox Cargo - were introduced to the US market at the National Biodiesel Conference & Expo January 19-22 in Fort Worth, Texas.

Lanxess is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and about 16,700 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

MOSCOW (MRC) -- Indorama Ventures clocked a reported earnings hike of 12% from 2013 in full year of 2014, said Fibre2fashion.

Indorama Ventures, which turned 25 this year, said its reported earnings after extraordinary and non-cash items in 2014 amounted to THB 1.48 billion, up 12% over 2013.

However, the company reported full year core earnings of THB 5.1 billion, an increase of 146% as against 2013. "The company’s strategic focus on developing a high value-added (HVA) portfolio has started to bring in rewards," CEO Aloke Lohia said.

In the same period, core EBITDA expanded by a massive 30% over its previous year at the petrochemicals manufacturer. Cash from operations in 2014 stood at THB 22.4 billion, once again a massive expansion of 114 per cent from 2013. The impact of crude oil prices falling, leading to inventory write-downs in the fourth quarter, has seen benefits in improvements to its cash flow as it used less working capital on lower prices.

Volumes at the IVL Guangdong PET plant, its state-of-the-art polyester fibres plant and at Polychem (CP4) in Indonesia have increased in the year under review. Indorama has also achieved better utilisation of other assets, such as in Poland by enhancing its capacity.

The Company expects to close a deal to acquire Performance Fibers Asia in China soon, and thereby gain synergies with its current platform of superior auto sector assets in Europe.

Another acquisition, Polyplex in Turkey, will allow it to consolidate the Southeast European market for PET and provide greater volumes in our key markets.

Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.

MRC

МОSCOW (MRC) -- Westlake Chemical Corp. (WLK ) reported that fourth-quarter net income increased to a record USD183.29 million or USD1.37 per share from USD170.3 million or USD1.27 per share in the prior-year quarter, said the producer.

Results for the latest quarter include a negative impact of USD0.03 per share, as a result of an impairment of an equity investment. On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of USD1.38 per share for the quarter.

Sales for the quarter increased to USD1.14 billion from USD951.63 million in the same quarter last year, while analysts were looking for sales of USD1.18 billion.

The group’s income from operations stood at $302.4m in the fourth quarter compared with $257.6m in the same period in 2013, primarily due to higher integrated vinyls margins, largely because of "lower feedstock costs resulting from the expansion and conversion of its Calvert City, Kentucky ethylene plant from propane to ethane feedstock."

For the whole year, net income in 2014 was USD678.5m, representing an increase of USD68.1m from 2013 net income. The company said net income was negatively impacted by costs aggregating to approximately USD26.0m related to Westlake Partners' initial public and the Vinnolit acquisition, and the non-recurring state tax items which increased the 2014 tax provision by USD14.8m.

Net sales of USD4.42bn in 2014 increased from USD3.76bn reported in 2013. This increase was primarily due to sales contributed by Vinnolit and Westlake’s North American Specialty Products (NASP) PVC pipe business, higher sales prices for most major products and higher ethylene, caustic and polyethylene sales volumes.

Westlake Chemical Corporation is an international 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.
MRC

MOSCOW (MRC) - Russian producers of suspension polyvinyl chloride (SPVC) plan to increase contract prices for March delivery by Rb4,000-5,000/tonne, compared with the level in February, according to ICIS-MRC Price Report.

Negotiations on Russian PVC for March delivery have begun this week. Expectedly producers aimed to increase contract prices by Rb4,000-5,000/tonne on the back of the shortage of imported material.

Contracts for Russian SPVC for March delivery were discussed in the range of Rb58,000-60,000/tonne CPT Moscow, including VAT. While the February deals in most cases were done in the range of Rb54,000-55,000/tonne CPT Moscow, including VAT.

Converters reported that they had to accept further price increase because of the imports shortage. Russian rouble strengthened against the dollar in February, which led to a slightly decrease in prices of imported PVC. In particular, with the new exchange rate of the dollar the price for Chinese acetylene PVC with delivery to the central part in Russia was about Rb66,000/tonne, including VAT, which was still much higher than even the March price level for Russian PVC.

Demand for SPVC improved in March on the back of building up stock inventories of "inexpensive PVC." This trend began back in January and February, when the volume of purchases several times exceeded the volumes of processing.
MRC

MOSCOW (MRC) -- RT Global Resources, a unit of a state-owned Russian company whose head is subject to European Union sanctions, won a contract to build an oil refinery in Uganda, said Hydrocarbonprocessing.

RT Global beat a group led by South Korea’s SK Engineering and Construction Co. after both made final offers in January, Uganda’s Kampala-based Energy Ministry said on Tuesday in an e- mailed statement. The project could cost USD4 billion, the ministry said in November.

The government will start negotiations next month with RT Global on a project that includes a 205-kilometer (127-mile) oil-product pipeline. The winning bidder will hold a 60% stake in the 60,000-bpd refinery, while Uganda has the option of selling part of its 40% interest to the neighboring states of Kenya, Tanzania, Rwanda and Burundi.

"The objective of these negotiations is to conclude the project agreements to the satisfaction of government and the lead investor," Fred Kaliisa-Kabagambe, the energy ministry’s permanent secretary, said in the statement. A joint-venture between the government and the RT Global-led group will organize project finance and engineering, the ministry said.

Other companies in the group include Telconet Capital, VTB Capital, Tatneft JSC and GS Engineering & Construction Corp., the government said. Sergei Chemezov, CEO of Rostec Corp., which controls RT Global, was added to a list in September of those people affected by EU sanctions against Russia.

Tullow Oil, China’s Cnooc, and Total are jointly developing an estimated 6.5 billion bbl of resources near Uganda’s border with the Democratic Republic of Congo. Output from the fields may start by 2018, according to the government.
MRC