Dow posts lower profit, sales

MOSCOW (MRC) -- Dow Inc. reported lower quarterly profit and sales, citing a decline in global energy prices, said the company.

An oversupply of ethylene and polyethylene as well as the impact of U.S.-China trade tensions on demand for chemicals forced Dow in July to forecast lower-than-expected third-quarter revenue and cut its targets for full-year spending.

The company, which makes chemicals used in paints, cosmetics and plastics, said it had now saved about USD1.37 billion as part of a previously-announced cost reduction program, and had cut an additional USD40 million in expenses in the latest quarter.

Its main indicator of operating profit fell 32% to 91 cents per share but that was still 18 cents per share better than consensus forecasts.

It said sales volumes fell 2% in the third quarter, while prices declined 12%. Sales in EMEAI and the U.S. and Canada were down respectively 17.5% and 15.6%, while those in Asia-Pacific fell just 7.5%.

As MRC informed earlier, Dow Chemical's propylene dehydrogenation (PDH) unit in Freeport, Texas, is offline for a turnaround. Sources said the PDH unit went offline for scheduled maintenance September 26, and the work is expected to last 45-60 days. Originally, sources expected the turnaround to begin in early September, but then learned it had been delayed.

As MRC informed previously, Dow Chemical began major maintenance on the LHC 1 cracker at Terneuzen, Netherlands from 9 September, 2019. More than 1,500 extra employees from various external companies will carry out maintenance work in the subsequent period.

Propylene is a feedstock for producing polyprolypele (PP).

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Dow believes that plastic waste has value and can be transformed into new products and energy. In addition to plastic roads, Dow is working with key partners in South America to use recycled plastics to develop construction materials for schools in Colombia. Dow is also at the forefront of developing and scaling chemical recycling technology to take recycled plastic waste back to feedstock for the creation of new products. By reimagining new ways to reuse, recycle and repurpose plastic waste, Dow and its partners are leading the way in the development of innovative circular economy solutions.

MRC

MOSCOW (MRC) -- An information technology incident was hampering the Finnish and Baltic regional operations of Finnish refiner and biofuels specialist Neste on 14 October, 2019, reported S&P Global.

Now In a statement, the company, based near Helsinki and a major supplier to the Baltic region, said its production operations in Finland and the Baltic were being affected by an "extensive information system failure".

"The situation affects Neste Finland and Baltic process, tank and terminal areas, and causes delays in product distribution," Neste said. "The situation is being investigated together with our service providers."

It did not say whether it considered the incident a hostile attack, and did not immediately respond to a request for comment.

Neste operates the 260,000 b/d Porvoo refinery, incorporating the Naantali refinery, which produces conventional oil products and some renewable diesel refined from waste and residues.

It also has two dedicated renewable diesel refineries, in Rotterdam and Singapore, claiming to be the world's largest producer of diesel of this type, but these facilities did not appear to be affected by Monday's incident.

About three quarters of the crude oil processed at the company's Finnish facilities is Urals crude, which is delivered by tanker.

The company's conventional refined product volumes totaled 3.52 million mt in the second quarter. The Baltic region accounted for 58% of sales of the conventional fuel it produced in Q2, with 30% sold elsewhere in Europe and 11% in North America, it said in a July statement.

As MRC wrote previously, Neste Oyj and Borealis Polymers Oy, in co-operation with the energy companies Fortum Power and Heat Oy, Helen Oy, Vantaan Energia Oy and Porvoon Energia Oy - Borga Energi Ab, will conduct a preliminary study on recovering and utilizing excess heat generated at the Neste and Borealis industrial manufacturing facilities in Kilpilahti, of which Neste informed in its June 2018 press release. The study will focus on the technical and economic impacts of recovering excess heat at these facilities and recirculating it into district heating systems in Porvoo and the Helsinki metropolitan region.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Neste creates sustainable solutions for transport, business, and consumer needs. The company's wide range of renewable products enable our customers to reduce climate emissions. The company is the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. It is also a technologically advanced refiner of high-quality oil products.
MRC

MOSCOW (MRC) -- Russian crude producer Lukoil is in talks with Saudi Aramco on potential joint projects outside Russia and Saudi Arabia, including some in Africa, reported S&P Global with reference to CEO Vagit Alekperov's statement Wednesday on the sidelines of the Russia-Africa Summit in Sochi.

"We are constantly discussing joint opportunities with them, including their interest in third countries, in Africa, but this is still at the stage of studying and talks," Alekperov told reporters.

He added that the companies are not currently in talks over cooperation in Uzbekistan.

Alekperov said that Lukoil is also looking to increase its cooperation with Eni in the Republic of Congo.

Earlier this year Lukoil acquired a 25% stake in the Marine XII license offshore the Republic of Congo, on which Eni is operator and holds a 65% stake. State-owned company Societe Nationale des Petroles du Congo also holds a 10% interest in the project.

Alekperov added that the company assumes an oil price of around USD60/b in its budget and other economic parameters, and that African projects that the company is looking into are commercially viable at this price.

Lukoil is planning to sign new agreements with African partners during the summit, Alekperov said.

"These are, as a rule, offshore projects, plus a number of African countries asked us to study and give possible comments on downstream," he said.

Finally he said Lukoil was not in talks with Brazil's Petrobras over a stake in two production projects in Nigeria. Earlier this month the Nigerian Petroleum Ministry indicated that Lukoil was interested in taking over Petrobras' stakes.

According to ICIS-MRC Price report, Stavrolen (part of Lukoil), Russia's major polyolefins producer, has resumed its polypropylene (PP) production in Budennovsk after a long scheduled turnaround. The plant's customers said Stavrolen had fully resumed its PP production after the long scheduled maintenance by 15 October. The outage began on 6 September. The start-up of the plant"s high density polyethylene (HDPE) production will take place with a week delay.

Lukoil is one of the leading vertically integrated oil company in Russia. The main activities of the company include operations for exploration and production of oil and gas, production and sale of petroleum products. Lukoil is the second largest private oil Company worldwide by proven hydrocarbon reserves. In Lukoil structure includes one of the largest Russian and Ukrainian petrochemical industries Stavrolen and Karpatneftekhim.
MRC

MOSCOW (MRC) -- Covestro, part of the Bayer Group, has significantly increased its shipments of PC granules into Russia this year, according to MRC's DataScope report.

Thus, 8,600 tonnes of this producer's material were imported to the Russian market in the first three quarters of 2019, compared to 3,700 tonnes in January-September 2018, up by 2 times year on year.

The share of Covestro deliveries reached in January-September 2019 61% of the total imports from non-CIS countries versus 50% a year earlier.

Covestro's shipments into the country rose in September 2019 by 35% year on year to 1,100 tonnes from 780 tonnes in September 2018.
MRC

MOSCOW (MRC) -- Overall imports of PC granules to Russia (excluding shipments from Belarus) rose in the first three quarters of 2019 almost by 2 times year on year to 14,200 tonnes, according to MRC's DataScope report.

Imports of material into the country were at 7,400 tonnes in January-September 2018.

Extrusion grade PC accounted for 59% (8,370 tonnes) of the total shipments to the Russian Federation. Covestro (with the share of 61%) and Sabic Innovative Plastics (28%) were the main import suppliers of PC granules.

Last month, 2,800 tonnes of PC granules were imported into the country, which is the maximum level since the beginning of the year. Imports were 1,600 tonnes in September 2019.
MRC