Celanese raises August prices of acetate tow materials

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has announced t will increase the price of all acetate tow grades sold in the Middle East, as per the company's press release.

Thus, prices will go up by USD1.00/kg effective on all orders shipped on or after August 1, 2018, or as contracts otherwise allow.

As MRC informed before, Celanese Corporation announced that it will increase the price for emulsions sold in Europe. Effective July 1, 2017, or as contracts otherwise allow, the following price increases will apply:

- EVA - EUR75/tonne;
- VAM Homopolymers (PVAC) - EUR75/tonne;
- VAM Copolymers - EUR75/tonne;
- Pure Acrylics - EUR180/tonne.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,600 employees worldwide and had 2017 net sales of USD6.1 billion.
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MOSCOW (MRC) -- Higher oil prices and increased output boosted BP’s second-quarter profit to USD2.8 billion, four times that of a year earlier, as per Reuters.

The company also confirmed it would increase its quarterly dividend for the first time in nearly four years, offering 10.25 cents a share. BP is turning a corner after the slump in oil prices and as it gradually shakes off a USD65 billion bill for penalties and clean-up costs of the deadly 2010 Deepwater Horizon spill.

Underlying replacement cost profit, the company’s definition of net income, exceeded forecasts of USD2.7 billion, according to a company-provided survey of analysts.

It earned USD0.7 billion a year earlier and USD2.6 billion in the first quarter. First-half production rose to 3.662 million barrels of oil equivalent per day, including output at Rosneft, from 3.544 million barrels of oil equivalent per day a year earlier.

Benchmark Brent crude futures, currently over USD74 a barrel, have risen around 16 percent over the first half of 2018 and around 60 percent since June 30, 2017.

In its biggest deal in nearly 20 years, BP last week agreed to buy U.S. shale oil and gas assets from global miner BHP Billiton for USD10.5 billion, expanding the British oil major’s footprint in oil-rich onshore basins.

BP was also buying back shares to the tune of USD200 million in the first half of this year.

In the second quarter, it paid off USD700 million for the spill on a post-tax basis.

Gearing, the ratio between debt and BP’s market value, declined to 27.8 percent at the end of the quarter from 28.1 percent at the end of March. Net debt was USD39.3 billion at the end of June compared with USD40 billion at the end of March.
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MOSCOW (MRC) -- Evonik increased adjusted EBITDA to EUR742 million in the second quarter of 2018 (prior-year: EUR640 million), as per the company's press release.

All three chemical segments contributed with excellent operational business development: All three segments were able to increase their adjusted EBITDA as well as EBITDA margin compared to the same quarter of the previous year. Evonik thereby confirms the preliminary results pre-released on July 17.

Sales increased to EUR3.9 billion in the second quarter (prior-year: EUR3.6 billion), largely due to higher sales volumes and higher selling prices. Adjusted net income was EUR354 million, which corresponds to adjusted earnings per share of EUR0.76. The adjusted EBITDA margin improved to 19.2 percent, 1.5 percentage points higher than in the same period of the previous year.

Evonik is well on track in terms of free cash flow development. While free cash flow is usually negative in the second quarter because of variable compensation payments, it improved significantly by EUR248 million and was positive at EUR56 million (prior year: -EUR192 million). This was primarily due to improved operating income.

"We are pleased to confirm the strong results that we already pre-released," says Christian Kullmann, Chairman of the Executive Board. “The implementation of strategic measures and a higher awareness of cost is increasingly reflected in our operating business development and a significantly improved cash flow."

In the first half of the year 2018, Evonik generated sales of EUR7.5 billion and an adjusted EBITDA of EUR1.4 billion. Compared to the first half of 2017, sales rose by 4 percent, and adjusted EBITDA by 15 percent. The adjusted EBITDA margin rose from 17.0 to 18.8 percent. Free cash flow rose significantly in the first half to EUR140 million (prior year: -EUR135 million).

Based on its excellent performance in the first half of the year, Evonik increased its outlook for the fiscal year 2018 and is now expecting an adjusted EBITDA between EUR2.60 and EUR2.65 billion. The company had previously projected an adjusted EBITDA between EUR2.4 and EUR2.6 billion.

The outlook for free cash flow has also been increased. Evonik projects a noticeably higher free cash flow for the fiscal year 2018 compared to prior year (EUR511 million). The company had so far forecasted a free cash flow slightly above the level of 2017.

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MOSCOW (MRC) -- Seoul's LG Chem is planning to spend USD2.4-billion to expand its naphtha cracking center (NCC) and polyolefin (PO) plant in Yeosu, South Korea,, as per Apic-online.

The project, which will expand the NCC and PO facility by 800,000 t/y each, is expected to be completed in the second half of 2021.

Also, as part of the investment, the company said it will build a mass production complex in Dangjin, Chungnam Province, for "future promising materials," such as super insulation, light weight and high strength materials.

The expanded NCC will increase LG Chem's ethylene production capacity to 3.3-million t/y, making it the "largest" ethylene producer in Korea, the company noted.

As MRC informed earlier, in January 2016, LG Chem said it 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. In 2011, the chemical company said it would construct the complex near the western Kazakh city of Atyrau as part of a 50-50 joint venture with two Kazakh companies. The plan involved building ethylene and polyethylene plants with annual capacities of 840,000 tonnes and 800,000 tonnes, respectively. The project was announced in 2013.

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.
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MOSCOW (MRC) -- Taiwan’s state-owned CPC Corp has proposed to invest USD6.6 billion in a petrochemical project in Paradip, a seaport town in Odisha, reported Reuters with reference to the country’s oil minister.

The planned petrochemical project will use the feedstock produced at Indian Oil Corp’s refinery in Paradip, the minister tweeted after a meeting with a delegation led by CPC.

IOC, the country’s top refiner, operates a 300,000 barrels per day refinery at Paradip.

IOC chairman had said last year at a shareholder meeting that the company would invest 320 billion rupees (USD4.67 billion) over the next few years to augment its petrochemical capacity.

As MRC wrote before, in early December 2017, CPC Corporation resumed operations at its residue fluid catalytic cracker (RFCC) unit in Dalin following a turnaround. The unit was shut for maintenance in mid-September 2017. Located at Dalin in Kaohsiung, Taiwan, the RFCC has a production capacity of 400,000 mt/year.

CPC Corporation, Taiwan, is engaged in the exploration, production, refining, procurement, transportation, storage, and marketing of oil and gas. The company provides fuel oil, including automotive unleaded gasoline and diesel fuel, low-sulfur fuel oil, marine distillate fuels, marine residual fuels, and aviation fuel; petrochemicals, such as ethylene, propylene, butadiene, benzene, para-xylene, and ortho-xylene; liquefied petroleum gas products comprising liquefied petroleum gas, propane, butane, and a propane/butane mixture; lubricants, motor oil, industrial oil, grease, and marilube oil; SNC products, including petroleum ether, naphtha, toluene, xylene, crude octene, methyl alcohol, normal paraffin, viscosity-graded asphalt cement, and sulfur; and natural gas.
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