LG Chem posts record-breaking sales in Q1

MOSCOW (MRC) -- LG Chem said that it posted 796.9 billion won (USD698 million) in operating profit, a 74 percent rise on-year, said Koreaherald.

It also posted 6.4 trillion won in sales, a 33 percent increase, for the same period. The battery firm said the strong earnings were brought about by the record-breaking operating revenue in its basic material business, the turnaround in its information electronics materials and profit increases in its life science unit.

Its basic material unit posted 4.4 trillion won in sales and 733 billion won in operating income, a 28 percent and 57 percent on-year increase, respectively, due to clients’ growing need to secure inventory in a strong oil price environment and good performance in the Chinese market.

"The stable performance is expected to continue as the favorable market situation of basic materials is predicted to continue in the second quarter," a LG Chem spokesperson said.

As MRC informed earlier, LG Chem had decided to drop a plan to jointly build a USD4.2-billion petrochemical complex in Kazakhstan, citing a prolonged slump in oil prices and a sharp increase in facility investments.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Dutch paint and chemicals giant Akzo Nobel NV AKZA reported a flat net profit for the first quarter of 2017, while guiding for higher profitability during the full year, said the company on its site.

Net profit for the period ended March was 240 million euros (USD257.5 million), on par with net profit during the same period a year earlier.

The company said it expects earnings before interest and taxes to be roughly EUR100 million higher than in 2016, which came in at EUR1.5 billion (USD1.61 billion).

Quarterly revenue rose 7% to EUR3.67 billion, mainly as a result of higher volumes and acquisitions.

As MRC wrote earlier, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings. The transaction included relevant technologies, patents and trademarks, as well as two manufacturing plants in the United Kingdom and South Africa.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.

MRC

MOSCOW (MRC) -- Saudi Arabia aims to produce 10% of its power from renewable sources in the next six years as it pushes ahead with a multi-billion-dollar plan to diversify its energy mix and free up more crude oil for export, said Reuters.

The drive by the world's top oil exporter will see the kingdom developing 30 solar and wind projects by 2023 to boost its electricity generation and reduce crude oil burning. Saudi Arabia is targeting 9.5 gigawatt (GW) of renewable energy by 2023. The renewables initiative involves investment estimated between USD30 B and USD50 B.

Saudi Energy Minister Khalid al-Falih kicked off the massive renewable program in Riyadh on Monday by announcing the beginning of the bidding process for a 300 MW solar power project, which is expected to come online by 2018-2019. "The energy mix to produce electricity will change, today the kingdom uses large quantities of oil liquids, including crude, fuel oil and diesel," Falih said. "So the percentage of renewable energy by 2023 (will be) 10% of total installed capacity in the kingdom."

Under an economic reform program launched last year, known as Vision 2030, Saudi Arabia is seeking to use non-oil means to generate much of its additional future energy needs to avoid running down oil resources and diversify its economy.

The kingdom is restructuring its energy sector as part of Vision 2030 and a focus on renewable projects is a pillar of this transformation as it would help develop the private sector and create thousands of jobs.

"Since the restructuring of the energy sector ... one of our key priorities is to engage with the private sector," Falih said, adding he was confident the program would be delivered.

Saudi Arabia has short-listed 27 companies for its solar power project and 24 firms for its wind project, the energy ministry said last week. France's EDF Energies Nouvelles, Japanese companies Marubeni Corp and Mitsui & Co and Saudi Acwa Power are among the firms which have qualified to bid for the 300 MW solar PV project in Sakaka, the al-Jouf Province in the north of the kingdom.

Abu Dhabi Future Energy Company (Masdar), GE, Marubeni Corporation, Mitsui & Co., JGC Corp, SNC Lavalin Arabia and Iberdrola Renovables Energia are among those qualified to bid for the 400 MW wind farm project in Midyan in the northwest.

The kingdom also plans to launch a second bidding round for 400 MW of wind power at a project in Domat al-Jandal in al-Jouf Province by the fourth quarter of this year, which will be followed by 620 MW of solar power, Turki Shehri, head of the renewable energy project development office at the energy ministry told reporters on Monday. "This will come in stages. It (wind power project) will come in the fourth quarter of this year with Domat al-Jandal, and then the 620 MW (solar) will come immediately after that in phases," he said.

The projects will be tendered on a build, operate and own basis, meaning the companies which win the projects will retain ownership for 20 years for the solar plants and 25 years for the wind, Shehri said. State oil giant Saudi Aramco would be interested in investing in the second bidding round for renewable projects as it aims to play a major role in the sector, Abdulaziz al-Judaimi, senior vice president for downstream at Aramco said.

Aramco, which is preparing to list up to 5% of its shares by next year, has created a department for renewables within the company to develop wind and solar projects.
MRC

MOSCOW (MRC) -- March output of the main products from polymers and rubber in Russia grew by 7.1% year on year, whereas output of these products increased by 4.8% in the first quarter of 2017, reported MRC analysts.

According to the Russian Federal State Statistics Service, March production of plastic pipes, hoses and fittings rose to 38,100 tonnes, up by 24.6% from a month earlier. Overall output of these polymer products reached 94,200 tonnes in the first quarter of 2017, down by 5.6% year on year.

Last month's production of unreinforced and non-combined films was 90,200 tonnes versus 77,300 in February. Output of film products grew by 7.4% year on year over the stated period, totalling 230,300 tonnes.

March production of boards, sheets and non-porous sheets rose to 28,000 tonnes, compared to 27,000 tonnes a month earlier. Overall output of these products grew to 76,800 tonnes in January-March 2017, up by 9.8% year on year.

Last month's production of boards, sheets and porous polymer films was 20,000 tonnes, whereas this figure was 17,400 tonnes a months earlier. Total production of these polymer products dropped by 5.6% year on year in the first three months of 2017 to 52,500 tonnes.

March production of plastic windows and window sills remained at the level of February, totalling about 1.2 million square metres. Output of these products was slightly less than 3.2 million square metres in the first three months of 2017, down by 8% year on year.

Last month's production of plastic door blocks and doorsteps rose to 67,300 square metres, compared to 62,100 square metres in February. Overall output of these polymer products fell by 7% year on year in January-March 2017 to 177,100 square metres.
MRC

MOSCOW (MRC) -- Yunlin County government has conditionally approved a one-year extension of 8 operating licenses for using bituminous coal and petroleum coke at the Sixth Naphtha Cracking Complex run by Formosa Plastics Group (FPG) in the Mailiao Township of the southern county, as per Plastemart.

Of the eight operating permits, six were renewed to allow five sets of cogeneration facilities and one petrochemical production line at the No. 3 plant in the complex to burn bituminous coal and another two renewed to permit the use of petroleum coke at the No. 1 plant.

After screening applications filed by the FPG to renew the operating permits based on relevant environmental rules and regulations, the county government approved the renewal on the condition that FPG carry out a seasonal pollution emission reduction project from October to next March and march toward the use of clean or renewable energy according to a top official with the county's Environmental Protection Bureau.

Lin Chang-chao, director of the bureau, said that the county government had asked FPG to gradually reduce the use of bituminous coal at its naphtha cracking plants since 2015, with the reduction amount totaling 2,312,726 metric tons over a period of two years, for a reduction rate of 14.1%.

As MRC informed earlier, in July 2015, Formosa Plastics Corporation, U.S.A. unveiled its plans to build a new, state-of- the-art polypropylene (PP) production line at its Point Comfort, Texas site. This will be the first new PP production to be built in the US in many years. It continues the company’s longstanding commitments to its customers, its employees and the communities in which it operates. No details on the plant’s investment, capacity, technology, construction or anticipated completion/startup was released then.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
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