LyondellBasell earns USD1 bln in Q2-2019, profits dip almost 40%

MOSCOW (MRC) -- LyondellBasell's second quarter profits fell nearly 40% from the previous year as the petrochemical industry contends with lower prices, plentiful supplies and tariffs, as per the company's press release.

Earnings were at USD1 bln in Q2, down from nearly USD1.7 bln during the same period in 2018. Second quarter revenues fell 12% to about USD9 bln from USD10.2 bln a year earlier.

Meanwhile, the company's EBITDA was USD1.6 billion in the second quarter, an increase of 11% over the first quarter 2019.

The company increased our quarterly dividend to USD1.05 per share, the eleventh increase over the past 8 years. The issued dividends totaled USD388 million.

As MRC wrote previously, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 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, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies.
MRC

PE production in Russia rose by 1% in Jan-Jul 2019

MOSCOW (MRC) -- Russia's production of polyethylene (PE) totalled 1,085,600 tonnes in the first seven months of 2019, up by 1% year on year. At the same time, the output of exclusively linear low density polyethylene (LLDPE) increased, according to MRC's ScanPlast report.


July total PE production in Russia was 146,300 tonnes versus 167,200 tonnes a month earlier, lower production was caused by shutdowns for maintenance at Angarsk Polymers Plant and Gazprom neftekhim Salavat. Thus, overall PE output reached 1,085,600 tonnes in January-July 2019, compared to 1,071,200 tonnes a year earlier. LLDPE production increased significantly, whereas production of low density polyethylene (LDPE) and high density polyethylene (HDPE) showed a minimal decrease.

The PE production structure by grades looked the following way over the stated period.


Last month's HDPE output was 78,100 tonnes, which was virtually corresponded to the June figure. Overall HDPE production exceeded 564,500 tonnes in the first seven months of 2019, down by 1% year on year.

July LDPE output dropped to 49,300 tonnes from 57,000 tonnes a month earlier, the reduction in production was caused by the scheduled shutdowns for maintenance at the Angarsk and Salavat plants. Overall LDPE production reached 380,800 tonnes over the stated period, down by 1% year on year.

Last month's LLDPE output fell to 18,900 tonnes from 31,900 tonnes, Kazanorgsintez suspended its LLDPE production in July. The two plants' overall LLDPE production was 140,300 tonnes in January-July 2019, up by 23% year on year.

MRC

PP production in Russia grew by 3.1% in January-July

MOSCOW (MRC) -- Russia's overall production of polypropylene (PP) rose in the first seven months of 2019 by 3.1% year on year to 854,700 tonnes. Only one producers out of seven reduced the capacity utilisation, according to MRC ScanPlast.

Russia's PP production in July remained practically at the June level at about 122,700 tonnes. Russia's overall PP production reached 854,700 tonnes in January-July 2019, compared to 829,000 tonnes a year earlier. Only Poliom reduced production volume, and the largest increase in output was shown by NPP Neftekhimiya.

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

SIBUR Tobolsk reduced its capacity utilisation in July, its total production fell to 37,600 tonnes from 50,400 tonnes a month earlier. The Tobolsk plant's total PP production reached 287,000 tonnes in the first seven months of 2019, up by 5% year on year.

Poliom (Titan Group) last month produced about 18,900 tonnes of polypropylene, compared with 18,200 tonnes in June. Total PP production at the plant over the reported period was about 127,100 tonnes, down 1% year on year.

Nizhnekamskneftekhim produced 18,800 tonnes of propylene polymers in July versus 18,500 tonnes a month earlier. The Nizhnekamsk plant's overall output of polymer exceeded 124,700 tonnes in the first seven months of 2019, compared to 123,600 tonnes a year earlier.

Tomskneftekhim last month produced slightly more than 12,000 tonnes against 12,400 tonnes a month earlier. Total PP production by the producer increased to 86,800 tonnes in January-July 2019, up 4% year on year.

July PP production at Ufaorgsintez reached about 11,800 tonnes from 11,800 tonnes a month earlier. The Ufa plant's overall output of polymer reached 78,400 tonnes in January-July 2019, up 1% year on year.

NPP Neftekhimiya (Kapotnya) produced about 12,200 tonnes last month, compared to 9,600 tonnes in June. The plant's overall PP output reached 83,200 tonnes over the stated period, up by 7% year on year.

Stavrolen (LUKOIL) increased its capacity utilisation in July, the total production of propylene polymers was 11,400 tonnes versus 10,900 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers increased in the first seven months of 2019 to 67,500 tonnes from 64,300 tonnes a year earlier.

MRC

BASF launches Creation Center in China

MOSCOW (MRC) -- BASF has launched its Creation Center in Shanghai, China, bringing customers and BASF experts together to transform conceptual ideas into creative solutions, as per the company's press release.

The Creation Center in Shanghai, China was opened by Andy Postlethwaite (right), Senior Vice President, Performance Materials Asia Pacific, BASF, and Alexandre Dreyer, Leader Creation Center, Asia Pacific, BASF.

At the Creation Centers, equipped with world-class workshop facilities and interactive material showcases, BASF provides resources to discover, understand, and create new and improved products and solutions with BASF materials. Customers can explore innovative material solutions, use interactive digital tools such as a tablet device that enable them to learn about the materials, and participate in ideation and material consultancy workshops. Together with BASF experts, they can seamlessly collaborate from design development to advanced simulations through computer-aided engineering (CAE) through to advanced prototyping. In Asia, BASF also operates Creation Centers in Mumbai, India, and Yokohama, Japan.

As MRC wrote before, German chemicals giant BASF has warned profit would fall well below forecasts for the second quarter and full year, blaming a global economic slowdown and trade war between the United States and China.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

US fourth quarter plastics machinery sales up 8%

MOSCOW (MRC) -- North American shipments of primary plastics machinery were up 8% in the fourth quarter of 2018, according to figures released 22 Feb by the Plastics Industry Association's Committee on Equipment Statistics, said Plasticsnewseurope.

The preliminary estimate of shipments value for injection moulding machines and extrusion equipment in the fourth quarter was $376.9m (€332m) million, according to the association. Injection moulding shipments were up nearly 9%. Single-screw and twin-screw extruder shipments were up 4.6% and 1.5%, respectively.

Compared with the fourth quarter of 2017, the value of single-screw and twin-screw extruders jumped 33.7% and 52%, respectively. The value of injection moulding shipments dropped nearly 5% over the same period.

“We projected higher shipments for the fourth quarter and that's exactly what transpired,” Perc Pineda, chief economist for the association, said in a statement. “The increase is not due to inflationary pressures of the economy, which one tends to think about when dollar value increases, but purely an increase in the quantity of shipments.”

Unit shipments of injection moulding machines rose 2.7% in the fourth quarter, and single-screw and twin-screw extruders increased 5.6% and 16.1%, respectively, Pineda said.

“All told, quantity shipments of primary plastics machinery increased by 3.8% from the third quarter,” he said.

In the committee's fourth quarter survey of plastics machinery suppliers, 75% of respondents said they expect conditions to either improve or hold steady in the first quarter of 2019. Sixty-seven% of respondents expect the market to be steady to better in 2019.

Suppliers said Latin America and Mexico are growing export markets for plastics machinery. But ongoing trade tensions between the United States and China remain a concern in addition to a shakier economic performance in most of Europe, according to the survey.

Major end markets that continue to have strong demand, according to surveyed suppliers, are medical and packaging.
MRC