Mexichem posted Q4 results

MOSCOW (MRC) -- Mexichem announced its unaudited results for the fourth quarter of 2018 and full-year 2018, said the company.

The figures have been prepared in accordance with International Financial Reporting Standards, having U.S. dollars as the functional and reporting currency. All comparisons are made against the same period of the prior year except for Netafim’s Q1 2017 P&L figures, which are not included in the comparisons. However, proforma financials are included in this report in Appendix I.

Unless specified to the contrary, all figures are in millions. In the comments in this report, we will refer to the term Organic Basis or Organically, which excludes: i) Netafim’s results for the quarter; and ii) the related expenses of the CADE and Netafim Ltd. acquisition. For the full-year 2018 numbers, Mexichem also excludes a Brazilian tax legal settlement benefit. The FX translation effect numbers, which are numbers on a constant currency basis or without the FX translation effects, do not includes any positive or negative effect from Venezuela due to the uncertainties of the economic fundamentals of its FX market and due that any effect is not material for the whole Company’s results. In some cases, numbers and percentages have been rounded and may not add up.

During the fourth quarter of 2018, Mexichem posted a 15% year-over-year (YOY) increase in net sales to USD1.69 billion, and a 129% YOY increase in net majority income to USD32 million. Mexichem also reported consolidated net income of USD46 million, compared to a loss of USD22 million reported during last years fourth quarter.

This was a challenging quarter due to market conditions and some movements in certain variables in our Vinyl business, but despite these challenges, we were able to achieve our full-year EBITDA guidance while we continue to advance on the execution of our long-term strategy, said Daniel Mart­nez-Valle, Mexichem CEO. During this transformation journey, Mexichem has been working closely with our partners and customers across all our business groups to identify opportunities and provide innovative, best-for-world solutions to solve them. Our full-year earnings success proves we are on the right track.
MRC

MOSCOW (MRC) - Production of polypropylene (PP) in Russia decreased to about 100,900 tonne in January 2019, down 23% year on year, compared to the same period of 2018. A significant increase in production volumes showed two plants, according to MRC ScanPlast report.

January PP production in the country fell to 100,900 tonnes, compared with 131,300 tonnes in January 2018; SIBUR Tobolsk and Stavrolen decreased their capacity utilisation significantly. Total PP production in Russia exceeded 1.370,500 mln tonnes in 2018.

The structure of PP production by plants looked the following way over the stated period.

Last month, due to technical problems, SIBUR Tobolsk worked with reduced capacity utilisation, the total production decreased to 18,600 tonnes against 47,700 tonnes a year earlier. Total PP production at SIBUR Tobolsk in 2018 reached 436,100 tonnes.

Poliom (Titan Group) last month produced about 19,300 tonnes of polypropylene, compared with 18,500 tonnes in January 2018. Total PP production at Poliom plant in 2018 was about 214,200 tonnes.

Nizhnekamskneftekhim produced 18,400 tonnes of propylene polymers in January versus 18,300 tonnes a month earlier. Nizhnekamskneftekhim's production of polymer rose to 215,800 tonnes in 2018.

Tomskneftekhim last month produced about 12,600 tonnes against 12,700 tonnes in January 2018. Total PP production at the plant in 2018 was about 141,300 tonnes.

January PP production at Ufaorgsintez reached about 11,700 tonnes from 11,600 tonnes a month earlier. Ufaorgsintez's production of polymer did not exceed to 119,300 tonnes in 2018.

Neftekhimiya (Kapotnya) last month produced about 12,500 tonnes of PP, compared with 12,300 tonnes in January 2018. The plant's overall production reached 131,400 tonnes last year.

Stavrolen (LUKOIL) produced slightly more than 7,800 tonnes of PP in January against 10,200 tonnes year on year. The Budenovsk plant's overall production of propylene polymers reached 111,800 tonnes last year.

MRC

MOSCOW (MRC) -- BASF has expanded its pipeline of solutions for agriculture significantly and by 2028, will launch innovations with projected peak sales of more than EUR6 billion, said the company.

The pipeline contains a wealth of chemical and biological crop protection products, seeds and traits, as well as digital solutions. This will further strengthen the company’s leading position in innovative and sustainable agriculture. BASF’s innovation pipeline demonstrates tangible progress based on continuous investment in research and development, the integration of acquired businesses and strong partnerships. In 2019, BASF will spend around €900 million on R&D for agricultural solutions.

"We provide farmers with a full toolbox of innovative technologies, solutions and know-how, helping them develop their businesses successfully while addressing the demands of the food value chain," said Markus Heldt, President of BASF’s Agricultural Solutions division. “We are actively steering our current and future portfolio towards more sustainable solutions. Sustainability is firmly embedded in our entire R&D decision process, from early research to product development. This enables us to develop highly-effective, innovative compounds that benefit farmers, society and the planet."

Feeding the world’s growing population, while facing challenges such as unpredictable weather, efficient control of diseases and pests, scarcity of natural resources and available farmland, makes the need for innovation even more essential. These global trends are influencing food security and the overall sustainability of food and agricultural systems. BASF’s state-of-the-art innovation pipeline offers farmers new technologies and solutions in all key crops and regions to rise to these challenges.

An example of BASF’s innovation strength is its research and development for soybean production. One of the most important and in-demand crops in agriculture and trade, soybeans make a vital contribution to global food and feed supply. BASF has developed innovative solutions for soybean farmers to gain high yield and quality including:

BASF’s new soybean seed with the LibertyLinkGT27TM trait platform allows farmers to apply Liberty® herbicide, glyphosate, and pending regulatory approval, a new mode of action herbicide for post-emergence weed control. This innovative soybean technology will be available to farmers under BASF’s Credenz brand and licensee brands. The launch is planned for 2020.

As a corresponding disease and pest management tool, the company offers ILeVO® nematicide/fungicide seed treatment. It is the only product on the U.S. market that provides effective protection against Sudden Death Syndrome (SDS) and nematodes in the seed zone, resulting in healthier plants and higher yield potential. A further registration is anticipated in Brazil by 2020.

To ensure that farmers worldwide continue to have access to effective weed management, BASF has developed Tirexor® herbicide. This new active ingredient has been specifically designed to control resistant weeds including key grass and broadleaf weeds. The company submitted a regulatory dossier for this new herbicide in Australia and North America in 2018. Pending regulatory approvals, BASF expects first market introductions of Tirexor-based products in Australia in 2020.

To further expand its insecticide portfolio and offer additional solutions to farmers, BASF has co-developed Broflanilide with Mitsui Chemicals Agro, Inc. This active ingredient is a powerful and versatile new mode of action insecticide to control chewing pests. Initial market launches are expected in 2020.

BASF offers a similarly diverse and promising innovation pipeline across the entire crop cycle for further important crops such as canola, wheat, rice, as well as fruit and vegetables. The recently acquired businesses have significantly enlarged the scope of the company’s innovation platform, enabling BASF to offer even more comprehensive crop solutions and provide farmers with a real choice in a consolidated industry.
MRC

MOSCOW (MRC) -- German pharmaceutical giant Bayer announced on Wednesday its sales in the fourth quarter of fiscal 2018 stood at EUR11 billion, marking a 28% increase compared to the same three-month period a year ago, said the company.

However, the company reported a loss of EUR4 per share on a net loss of EUR3.92 billion. The number of employees rose by 17% to reach a total of 116,998.

For the whole of fiscal 2018, sales were up by 13% to reach EUR39.59 billion, while net income fell by 77% to hit EUR1.69 billion. The company earned EUR1.80 per share for the full year, 78% less than in 2017.

"Over recent years we have systematically developed into a focused life science company, clearly aligned to the megatrends in health and agriculture and united under the strong umbrella brand Bayer," said Werner Bauman, Bayer's chairman, while also pointing out the company acquisition of Covestro, which "has lifted us to the number one position in this market."
MRC

MOSCOW (MRC) -- LyondellBasell, the world’s largest licensor of polyolefin technologies, has announced HPCL-Mittal Energy Limited (HMEL) has selected LyondellBasell’s fifth-generation Spheripol polypropylene (PP) process technology for a 500 KT per year plant in Bathinda, India, as per Hydrocarbonprocessing.

"Recognized companies such as HMEL select the Spheripol process because of the technology’s low capital and operating costs, broad product capability and excellent operability,” said Jim Seward, vice president technology business and sustainability at LyondellBasell. “The Spheripol process has maintained its leadership over two decades through continuous process and product innovation."

Seward added, "The selection of Spheripol technology allows customers to enhance and diversify significantly their PP target product portfolio."

Spheripol is the leading PP process technology with more than 25 million tons of licensed capacity. The latest fifth generation Spheripol includes process improvements that further maximize operational efficiency.

LyondellBasell is a leading licensor of polypropylene and polyethylene technologies with more than 280 polyolefin process licenses.

As MRC reported earlier, in October 2018, Yantai Wanhua Chemical Group selected technology from LyondellBasell for a new high-density polyethylene (HDPE) plant and PP unit in Yantai City, Shandong Province, China. The complex will include a 350,000-t/y HDPE plant, based on LyondellBasell's Hostalen ACP process technology, and a 300,000-t/y PP unit, which will utilize LyondelBasell's 5th generation Spheripol PP process technology. Cost of the project and a schedule were not given.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC