Dr. Josef Ertl to consult Vinnolit as Member of the Advisory Board

MOSCOW (MRC) -- Dr. Josef Ertl retired from his role as Managing Director and CEO of Vinnolit, which is part of Westlake, effective 31 October 2015. As previously announced, beginning 1 November 2015, his successor as Managing Director will be Dr. Karl-Martin Schellerer, as per Westlake's press release.

In the future, Dr. Ertl will consult Vinnolit as a Member of the Advisory Board, supporting Vinnolit in its strategic development.

"We are delighted that Dr. Ertl will continue to support Vinnolit as a Member of the Advisory Board. During his tenure, he has helped shape and build Vinnolit into the company that we know today and we look forward to this continued partnership," stated Albert Chao, President and CEO of Vinnolit?s parent company Westlake Chemical. "We are excited about the addition of Dr. Schellerer to our team and are confident that he will make important contributions to Vinnolit's ongoing growth and development."

As MRC wrote before, in early August 2014, Westlake Chemical Corporation closed the previously announced acquisition of German-based Vinnolit Holdings GmbH and its subsidiary companies from Advent International, a private equity firm. The Vinnolit acquisition includes six production facilities located in Burghausen, Gendorf, Cologne, Knapsack and Schkopau in Germany and Hillhouse in the United Kingdom. These operations have a combined annual capacity of 780 thousand metric tons of PVC, including specialty paste, thermoplastic specialties and suspension grades, 665 thousand metric tons of vinyl chloride monomer and 475 thousand metric tons of membrane grade caustic soda. Vinnolit has world class technical centers including a research and development facility in Gendorf and an applications laboratory in Burghausen.

With an annual capacity of 780,000 metric tonnes (1.7 billion lbs) Vinnolit, a Westlake company, is one of the leading PVC producers in Europe and, worldwide, is the market and technical leader in specialty PVC. Vinnolit produces and markets a wide range of PVC products covering all kinds of PVC applications, e.g. in the building & construction sector, in the automobile industry or in the medical sector. Whether the PVC is for flooring, wall covering, window profiles, pipes, rigid film, technical coatings, automotive sealants, cable sheathing or medical applications, Vinnolit is able to offer a suitable solution for all demands. Additionally Vinnolit produces and markets intermediates such as caustic soda, vinyl chloride and tin tetrachloride, which are required in the chemical industry as well as in many other branches.

Westlake Chemical Corporation is a 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

Westlake Chemical announces Q3 2015 earnings

MOSCOW (MRC) -- Westlake Chemical Corporation has reported net income for the third quarter of 2015 of USD183.6 million, or USD1.39 per diluted share, on net sales of USD1,188.0 million, as per the company's report.

This represents an increase in net income of USD15.8 million, or USD0.14 per diluted share, compared to the quarter ended September 30, 2014 net income of USD167.8 million, or USD1.25 per diluted share, on net sales of USD1,253.2 million.

Net income for the third quarter of 2015 was impacted by a lower effective tax rate and several plant outages as a result of maintenance turnaround activity.

Net sales for the third quarter of 2015 decreased by USD65.2 million compared to net sales for the third quarter of 2014, mainly due to lower sales prices for all our major products, partially offset by higher sales volumes for most of our major products and sales contributed by our specialty PVC resin business, Vinnolit, which we acquired on July 31, 2014.

Income from operations was USD254.0 million for the third quarter of 2015 as compared to USD306.8 million for the third quarter of 2014. The decrease in income from operations for the third quarter of 2015 was mainly attributable to lower integrated product margins, primarily as a result of lower sales prices in the third quarter of 2015, as compared to the prior-year period, and the lost sales, lower production rates, unabsorbed fixed manufacturing costs and other costs related to several maintenance turnarounds completed during the third quarter of 2015, partially offset by lower feedstock and energy costs, higher production rates at our Geismar, Louisiana chlor-alkali plant and the contribution from Vinnolit as compared to the third quarter of 2014.

Third quarter 2015 net income of USD183.6 million, or USD1.39 per diluted share, decreased by USD21.5 million from the USD205.1 million, or USD1.54 per diluted share, reported in the second quarter of 2015. Net income for the third quarter of 2015 was impacted by a lower effective tax rate and several plant outages as a result of maintenance turnaround activity.

Net sales in the third quarter of 2015 were USD1,188.0 million compared to net sales of USD1,185.0 million in the second quarter of 2015, an increase of USD3.0 million. The increase in sales was due to higher sales volumes for PVC and styrene, partially offset by lower sales prices for most of our major products and lower sales volumes for polyethylene.

Third quarter 2015 income from operations of USD254.0 million decreased USD41.4 million from the second quarter 2015 income from operations of USD295.4 million. The decrease was due to lower integrated olefins margins, primarily as a result of lower sales prices in the third quarter, and the lost sales, lower production rates, unabsorbed fixed manufacturing costs and other costs related to several maintenance turnarounds completed during the third quarter.

For the nine months ended September 30, 2015, net income was USD535.0 million, or USD4.02 per diluted share, on net sales of USD3,476.6 million. This represents an increase in net income of USD39.8 million, or USD0.33 per diluted share, from the nine months ended September 30, 2014 net income of USD495.2 million, or USD3.69 per diluted share, on net sales of USD3,279.5 million. Sales prices in the first nine months of 2015 were negatively impacted by the significant decline in crude oil prices.

As MRC informed previously, in December 2014, Technip was awarded a contract by Westlake Chemical to provide detailed engineering and procurement services to expand the recovery section of Westlake’s Petro 1 ethylene plant at its complex in Sulphur, Louisiana,

Westlake Chemical Corporation is a U.S. manufacturer and supplier of petrochemicals and polymers, headquartered in Houston, Texas. The range of company's products includes ethylene, polyethylene, styrene, propylene, caustics, polyvinyl chloride and plastic products. Westlake is one of the major ethylene producers in the US and its Calvert City operation is a large integrated PVC site.
MRC

Westlake Chemical Partners announces Q3 2015 distribution

MOSCOW (MRC) -- The Board of Directors of Westlake Chemical Partners GP LLC, the general partner of Westlake Chemical Partners LP, a Westlake company has declared a distribution of USD0.2994 per unit representing a 2.89% increase from the second quarter distribution, as per the company's press release.

This is the fifth distribution announced by the Partnership since its successful IPO closing on August 4, 2014. The distribution will be payable on November 27, 2015, to unit holders of record on November 9, 2015.

As MRC wrote before, in May 2014, Westlake Chemical Corp., the US plastics maker controlled by the billionaire Chao family, separated its ethylene assets into a tax-advantaged venture in which it planned to sell shares to the public. The master-limited partnership (MLP) includes three US ethylene plants and a 200-mile (322-km) ethylene pipeline.

Ethylene, the most common petrochemical, is used to make products from plastic bottles to autoparts and pipe.

Westlake Chemical Corporation is a 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

Olin reports 77.4% fall in Q3 net income on lower sales

MOSCOW (MRC) -- Olin Corp. reported Q3 EPS of USD0.33, may not compare the analyst estimate of USD0.42. Revenue for the quarter came in at USD594 million versus the consensus estimate of USD617.2 million, said the company in its press release.

Olin Corp. sees Q4 2014 EPS of USD0.20-USD0.25, versus the consensus of USD0.33.

"Fourth quarter 2014 net income is forecast to be in the USD0.20 to USD0.25 per diluted share range. Chlor Alkali fourth quarter 2014 earnings are expected to improve compared to the fourth quarter of 2013 due to higher volumes and lower operating costs, partially offset by lower ECU netbacks. Fourth quarter 2014 Chemical Distribution earnings are expected to improve from the fourth quarter of 2013.

Earnings in the Winchester segment are expected to decline from the record fourth quarter 2013 levels, but are expected to be similar to fourth quarter 2012 levels. Fourth quarter 2014 earnings are also expected to include pretax restructuring charges of approximately USD1 million. As a result of the continued weaker than expected chlorine and caustic soda demand and pricing, we have revised our full year adjusted EBITDA forecast to the USD345 million to USD365 million range."

As MRC informed earlier, in the early October, Dow Chemical announced the closing of the previously announced split-off transaction, resulting in the separation of a significant part of Dow’s chlor-alkali and downstream derivatives businesses and merger of these businesses with Olin Corporation to create an industry leader with revenues approaching USD7 billion.

Olin Corporation manufactures chemicals and ammunition products. The Company manufactures and sells chlorine, caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, sodium chlorate, bleach products, and potassium hydroxide. Olin also manufactures products that include sporting ammunition, reloading components, small caliber military ammunition and industrial cartridges.
MRC

Unipetrol declared force majeure in Litvinov still in force

MOSCOW (MRC) -- This notice follows our Notice of Occurrence and Continuance of Force majeure event dated 14 August 2015 in consequence of a serious accident in the production plant in Litvinov - Zaluzi, the Czech Republic, said the producer on its site.

As reported earlier, there were the subsequent unplanned shutdown of the petrochemical production in the production plant Litvinov - Zaluzi, particularly, the units such as, steam cracker (ethylene) unit, productions Polyethylene 1 and Polyethylene 2 and Polypropylene production unit, and a significant reduction of crude oil processing in the refinery in Litvinov - Zaluzi.

The above specified obstacle - a force majeure event - and its consequences specified in the Notice of Occurrence and Continuance of Force Majeure Event dated 14 August 2015 still continue and still make it impossible for Unipetrol to duly perform its obligations arising from contractual arrangements with its business partners.

Unipetrol is currently in a final phase of arranging repair works on the steam cracker unit that was affected by the above specified serious accident on 13 August 2015. Based on the company's current estimates, the steam cracker is expected to be restarted at minimum capacity utilization (approximately 65%) in July 2016, and the maximum capacity utilization is roughly expected to be achieved in October 2016. Current production at the Litvinov refinery continues running at a significantly reduced capacity and the Kralupy refinery continues running at the full capacity.

As MRC reported earlier, Unipetrol had already restarted its polymerization units at the Litvinov plant - polyethylene (PE) and polypropylene (PP) - at limited extent and for a temporary production thanks to external feedstock deliveries of ethylene and propylene.

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