COVID-19 - News digest as of 18.08.2020

1. Rosneft income falls 77%, revenue down 51% in 2Q20

MOSCOW (MRC) -- Russian oil giant Rosneft saw its net income decrease by 77.8% and revenue decline by 51.3% in the second quarter of 2020, from the same quarter of last year, according to its financial results statement released on Friday. The company's net income attributable to Rosneft shareholders in the April-June period of 2020 came at 43 billion rubles (USD590 million), down from 194 billion rubles (USD2.66 billion) in the same period of 2019. The firm had a revenue of approximately 1.04 trillion rubles (USD14.22 billion) in the second quarter of this year, which was down from 2.135 trillion rubles (USD29.23 billion) the same quarter of last year. “The reporting period was characterized by unprecedented macroeconomic conditions including a sharp reduction of prices due to failing demand on the back of COVID-19 pandemic and lower production volumes due to realization of the new OPEC+ agreement," Rosneft Chairman and CEO Igor Sechin said in the statement.



MRC

MOSCOW (MRC) -- Ukraine's polypropylene (PP) imports totalled about 75,600 tonnes in January-July of this year, down 4% year on year.
All PP grades accounted for the decrease in shipments, according to a MRC's DataScope report.

July imports rose to 14,400 tonnes against 13,400 tonnes a month earlier under the pressure of the seasonal factor and the relaxation of quarantine restrictions. Overall imports of propylene polymers reached 75,600 tonnes in January-July 2020, compared to 79,000 tonnes a year earlier. Demand for all grades of propylene polymers decreased, but propylene block copolymers (PP block copolymers) accounted for the largest reduction.

The structure of PP imports by grades looked the following way over the stated period.
July imports of homopolymers of propylene to the Ukrainian market grew to 11,100 tonnes from 10,900 tonnes a month earlier, local companies increased purchasing of homopolymer PP raffia in Russia. Total homopolymer PP imports were 59,100 tonnes in January-July, compared to 61,500 tonnes a year earlier.

July imports of PP block copolymers into the country amounted to a little more than 1,400 tonnes compared to 1,500 tonnes in June, local companies decreased the volume of purchases of pipe polypropylene. Over the reporting period, about 7,100 tonnes of propylene block copolymers were imported against 7,500 tonnes for the same period in 2019.


July PP random copolymers imports increased to 1,700 tonnes from 700 tonnes a month earlier, local companies raised their purchasing of pipe PP random copolymers. Overall PP random copolymers imports reached 8,300 tonnes in January-July 2020, compared to 8,900 tonnes a year earlier.

Overall imports of other propylene copolymers totalled slightly over 1,100 tonnes over the stated period.

MRC

MOSCOW (MRC) -- Stavrolen, a major producer of polyolefins in Russia, had resumed its polypropylene (PP) production by the end of last week after a long forced shutdown, reported MRC analysts.

The plant's clients said Stavrolen had resumed its PP production by last weekend after the forced outage due to technical issues. In fact, the plant did not produce PP for almost one month, the forced shutdown began on 16 July. Shipments of the product to consumers will begin this week.

Stavrolen's (part of Lukoil) annual capacity of PP and high density polyethylene (HDPE) production is 120,000 and 300,000 tonnes, respectively.

It is also worth noting that Tomskneftekhim, Ufaorgsintez and Poliom will shut down their production capacities for scheduled turnarounds in September. The outage at these plants will be short and will last for about two weeks.
MRC

MOSCOW (MRC) -- Gazprom neftekhim Salavat has restarted its low density polyethylene (LDPE) production after a scheduled maintenance, reported MRC analysts.

The plant's customers said Gazprom neftekhim Salavat resumed its LDPE production on 10 August after the scheduled turnaround. The outage lasted slightly longer than originally planned. LDPE production capacities were shut for the turnaround on 1 July.

As reported earlier, Angarsk Polymers Plant (Rosneft) shut its LDPE production capacities for an unscheduled maintenance on 10 August due to problems at the ethylene unit.

OAO "Gazprom neftekhim Salavat" (formerly OAO "Salavatnefteorgsintez") is one of the leading petrochemical companies in Russia, carrying out a full cycle of processing hydrocarbon material. The list of products manufactured by the plant includes more than 140 items, including 76 grades of the main products: gasoline, diesel fuel, kerosene, fuel oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrenes, silica gels and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols and amines, a wide range of household products made of plastics, surfactants and much more.
MRC

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) into Kazakhstan increased to about 29,800 tonnes in January-June 2020, up 27% compared with the same time a year earlier, according to MRC analysts.

Demand for PVC increased from local companies in June under the pressure of seasonal factors, and June imports of unmixed PVC were 5,800 tonnes versus 5,400 tonnes a month earlier. Thus, overall imports of PVC reached 29,800 tonnes in January-June 2020, compared to 23,500 tonnes a year earlier.

It is also worth adding that such a significant increase in this year's imports was caused by a further resale of PVC to Russia. Due to the geographical position, the main suppliers of PVC to Kazakhstan were Chinese producers, with the share of about 84% of the local market over the stated period.

Russia was the second largest PVC supplier, shipments of Russian PVC reached 4,700 tonnes over the stated period.

MRC