Sumitomo Chemical announces financial results for FY14

MOSCOW (MRC) -- The business environment surrounding the Sumitomo Chemical Group was good during the twelve months ended 31 March 2015 (FY14), although there were areas with sluggish market conditions and weak shipment volumes, said the company.

Under these circumstances, the Sumitomo Chemical Group undertook group wide efforts to improve business performance by increasing selling prices and expanding sales volumes, as well as by cutting costs through thorough streamlining. As a result, the group’s sales for FY14 increased by JPY132.9 billion compared with the previous fiscal year, to JPY2,376.7 billion. The group posted operating income of JPY127.3 billion, ordinary income of JPY157.4 billion and net income of JPY52.2 billion, all representing increases from the previous fiscal year.

Market prices for petrochemical products dropped due to lower feedstock prices in the second half of FY14. Market prices for synthetic resins also fell, but shipments from Singapore and Japan increased. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales increased by JPY14.1 billion compared with the previous fiscal year, to JPY806.2 billion, and operating income grew by JPY16.3 billion, to JPY21.2 billion.

The company decided to pay a year end dividend of JPY3 per share. As a result, the company’s annual dividend for fiscal 2014 was JPY9 per share, including an interim dividend of JPY6 per share, unchanged from the previous fiscal year.

Operating cash flow in FY14 increased by JPY66.5 billion compared with the previous fiscal year, to JPY260.9 billion, due to an increase in income before income taxes and collection of money advanced relating to Petro Rabigh's Rabigh Phase II Project. Cash flow from investing activities was negative JPY56.6 billion, a decrease in cash outflows of JPY78.5 billion compared to the previous fiscal year, due to a decrease in payments for purchase of fixed asset. This resulted in free cash flow of JPY204.2 billion for FY14, compared with JPY59.2 billion for the previous fiscal year. Cash flow from financing activities was negative JPY151.5 billion. The balance of cash and cash equivalents at the end of the fiscal year increased by JPY69.7 billion over the previous year, to JPY202.0 billion.

For FY15, the company forecasts that sales will decrease by 5.3%, to JPY2,250.0 billion, while operating income and ordinary income are projected to be JPY145.0 billion and JPY160.0 billion respectively and net income to be JPY80.0 billion, assuming an exchange rate of JPY115.0/US$ and a naphtha price of JPY47 000/kl.

As MRC informed earlier, Sumitomo Chemical will permanently wind up the operations of an ethylene plant at its Chiba Works in Ichihara, Chiba, in or before September 2015, following a decline in domestic demand for ethylene derivative.

Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.
MRC

MOSCOW (MRC) -- DuPont Co.’s army of retail shareholders proved decisive in the defeat of veteran activist investor Nelson Peltz’s attempt to get on the board and split up the 212-year-old chemical company, said Hydrocarbonprocessing.

All DuPont’s director nominees were elected, it said Wednesday at its annual meeting in Wilmington, Delaware. Peltz’s Trian Fund Management, which had sought four board seats, said the vote was "close." The final count hasn’t been disclosed. DuPont shares fell as much as 7%.

The outcome is a decisive victory for DuPont CEO Ellen Kullman following a five-month-long proxy fight. Both tried to muster votes via advertisements in local and national media. About one-third of DuPont shareholders are private individuals such as retired former employees, compared with about 10% at most other companies, the company said last month.

"We got retail investors’ attention this time," Kullman told reporters at DuPont’s Chestnut Run Plaza office complex after Wednesday’s meeting was adjourned. While such shareholders rarely vote, when they do they’re usually supportive of incumbent management, she said.

Peltz, 72, told reporters separately that Trian had support from some institutional investors but it could have done better with retail shareholders and index funds.

DuPont "clearly did a better job with the retail shareholder who clearly doesn’t understand the issues," he said. "They did a better job scaring people."

Trian had spent much of the past two years criticizing DuPont’s financial performance, arguing that the company was too complex and bureaucratic and would be better off split into two. The failure of its DuPont campaign is the first since Peltz’s firm was established a decade ago.

As MRC informed earlier, DuPont Co. said first-quarter profit declined from the previous year, as revenues dropped amid adverse currency and decreased volumes. The company now expects higher-than-previously estimated negative currency impact in 2015, and as a result sees full year earnings at the low end of its prior outlook.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
MRC

MOSCOW (MRC) -- PTT PCL, Thailand's largest energy firm, said its first-quarter net profit fell 21 percent year-on-year, but rebounded from a loss in the previous quarter due to the improved performance of its refinery business, said Reuters.

State-controlled PTT posted a net profit of 22.6 billion baht (USD670 million), higher than the average 20.8 billion forecast by 11 analysts polled by Reuters.

The result compared with a net profit of 28.5 billion baht a year earlier and a loss of 26.6 billion in the previous quarter.

First-quarter sales revenue dropped 25 percent on year to 515 billion baht, hit by lower average selling prices after declines in global crude oil prices, it said in a statement.

PTT booked a gain of 1.9 billion baht on its investments in petrochemical and refinery affiliates, up from 1.2 billion baht a year earlier, thanks to a better performance of in refining and a higher run rate, it said.

Declines in global oil prices prompted PTT to reduce its five-year investment plan to 299 billion baht from 327 billion baht to reflect global economic uncertainty.

As MRC informed earlier, PTT Global Chemical PCL is studying several options for supplying sufficient raw material to its petrochemical plants, including imports of oil feedstocks after declines in global crude prices. The move is part of a plan to cope with a potential drop in domestic natural gas supply after Thailand's government put bidding for new oil and gas concessions on hold.

PTT Global Chemical is the flagship petrochemical company of the PTT Group. PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.

MRC

MOSCOW (MRC) - Ufaorgsintez owned by "United Petrochemical Company" (JSC) announced a decrease in the prices of low density polyethylene (LDPE) of roubles (Rb) 6,000 - 7,000/tonne, according to ICIS-MRC Price Report.

According to the company's customers, the producer reduced prices for the entire range of its polyethylene (PE) from 14, May. Prices of LDPE for general purpose films production were cut by Rb7,000/tonne, compared with the level on 15 April. Prices of LDPE for shrinkable films production were cut by Rb6,000/tonne.

Customers explained the price rise by the weaker demand in the market, which reached a peak in the last week of April. The unprecedented shortage of LDPE in the last month has led to record levels of prices in the spot market; deals for small volumes exceeded the level of Rb100,000/tonne FCA, including VAT.

Prices for polypropylene (PP) remained steady in comparison with the prices on 15, April.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. As of January 22, 2010, Ufaorgsintez OAO operates as a subsidiary of Bashneft Joint Stock Oil Company. "United Petrochemical Company" (UPC) owns 87.76% of Ufaorgsintez"s registered capital. Bashneft sold Ufaorgsintez"s stake to UPC in May 2013. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, polyvinyl chloride and polyethylene items, thinners, and dilutants. UPC owns 87.76% of the share capital Ufaorgsintez. In May 2013 Bashneft sold shares Ufaorgsintez "Joint Petrochemical Company."

According MRC ScanPlast, total PE and PP production at Ufaorgsintez was 24,800 tonnes and 31,700 tonnes in the first three months of 2015, respectively.
MRC

MOSCOW (MRC) - Russia's imports of linear low density polyethylene (LLDPE) in the first four months of this year decreased to 59,800 tonnes, down 9% year on year on the back of export quota restrictions at the majority of external suppliers and weaker consumption in some sectors, according to MRC DataScope.

April LLDPE imports in the country increased to 16,100 tonnes, compared with 15,700 tonnes in March because of stronger supply of PE for rotational moulding products and for the cable insulation. Total LLDPE imports in Russia were 59,800 tonnes in January - April 2015, compared with 65,600 tonnes year on year.

Russia's LLDPE imports reduced because of the limited export quotas at the European and Middle Eastern producers and the significant decline in demand in some sectors of consumption. Structure of LLDPE supply over the reported period looked as follows.

April imports of film LLDPE remained practically at the March level at 13,600 tonnes. Total imports of film LLDPE in Russia in the first four months of the year were 52,300 tonnes, compared with 57,700 tonnes year on year. The reduction in LLDPE imports into the country over the reported period occurred for the Russian producers of multilayer films.

April imports of LLDPE for overall products by rotational moulding production increased to about 830 tonnes, compared with 556 tonnes in March. Total imports of LLDPE for overall products by rotational moulding production in January-April decreased to 1,900 tonnes, compared with 3,200 tonnes year on year.

Russia's LLDPE imports in other sectors of consumption in April also increased on a seasonal factor to about 1,700 tonnes. Total LLDPE imports in January-April grew to 5,600 tonnes, compared with 4,600 tonnes year on year because of the stronger demand from the producers of laminated paper.

MRC