Arkema invests in US polymer resins start-up

MOSCOW (MRC) -- Arkema leads the Series B investment in Adaptive3D, an innovative company and premium additive manufacturing photopolymer resin supplier, said Chemweek.

This investment complements our expertise in UV liquid resin material design and our commitment to accelerate 3D printing manufacturing technology development. Adaptive3D, through cutting-edge technologies, offers solutions enabling soft and elastomer end-products. The start-up sells photopolymer resins to enable additive manufacturing of tough, strain-tolerant, tear-resistant rubbers. Adaptive3D printable photo-resins are optimized for high-throughput manufacturing of functional complex 3-dimensional plastic and rubber parts in a wide range of applications in the consumer goods, healthcare, industrial, transportation and oil and gas markets.

Through its Sartomer’s activity and its pioneering N3xtDimension® range of advanced UV curable liquid resins, Arkema and Adaptive3D have already succeeded in many technical and commercial developments. With this announcement, the companies aim to partner across the end points of an additive manufacturing ecosystem, from new material development, scaled specialty resin manufacturing, to functional end-use parts, to deliver market leading materials solutions at scale. Arkema, specializing in many other material technologies like photoinitiators and thio-based materials, can further enhance Adaptive3D product offerings through custom solutions.

With this investment in Adaptive3D, Arkema takes a new milestone that will create exciting opportunities for new applications in footwear, medical, automotive and electronic appliances, among others. With materials developed to best meet market needs, both consumers and producers stand to benefit from the specialty and sustainable high-performance solutions developed by Arkema and Adaptive3D.

Challenging the aging model of injection-molded rubbers, Adaptive3D is now scaling production and distribution to deliver shelf-stable, print-stable, one-part photoresins that yield superior, manufactured end parts. Our resins enable customers to topologically optimize and micro-architect their polymeric products to provide a sustainable competitive advantage now."

"Arkema is a global leader in supplying specialty materials to enable sustainable, innovative solutions to manufacturing technologies. Adaptive3D photo-resins, based on Arkema materials and now validated in the market, further our customer-focused mission to reach into new application spaces. Adaptive3D delivers compelling materials properties with an ease of printing and post processing—a great step forward for the whole additive manufacturing field."

As MRC reported earlier, Arkema said in June, 2020, that it had finalized the divestment of its functional polyolefins business to SK Global Chemical. The divestment was announced last year. Arkema says the sale forms part of its strategy to refocus the group’s activities on specialty materials.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.
MRC

Pemex reported smaller Q3 comprehensive loss

MOSCOW (MRC) -- Mexican state energy producer Pemex reported a smaller Q3 comprehensive loss because of a decline in pension costs as well as favourable exchange rates and a rise in income from financial derivatives, said producer.

The three were more than enough to offset a decline in revenue, which fell faster than costs. The following table shows the financial performance of the company.

If pensions and conversion effects are excluded, then Pemex would have reported a Q3 net income of Ps1.41bn, up from a net loss of Ps87.9bn. The conversion effects lower the value of Pemex's peso investments in subsidiary companies. Although Pemex reported a net income under this measure, its gross profit still fell by 44%, reflecting a drop in sales.

Revenue fell because of a drop in oil exports caused by the coronavirus and a decline in global prices for hydrocarbons. Oil production fell because a collision with the Olympic Future tanker triggered an emergency shutdown in Pemex's floating production, storage, and offloading (FPSO) system.

The shutdown lowered oil production by 59,000 bbl/day in July. In August, oil production fell by 9,000 bbl/day because of what Pemex called a sanitary contingency that was caused by the coronavirus.

Oil production is important for Mexico's petrochemical industry because its crackers rely on ethane as a feedstock for its crackers. The majority of Mexico's ethane is extracted from the associated gas produced from its oil wells.

Third-quarter production of ethane and other natural gas liquids (NGLs) fell to 208,000 bbl/day, the lowest since at least the third quarter of 2008. For comparison, Pemex produced nearly 400,000 bbl/day in 2010.

Because Mexico relies so heavily on ethane as a feedstock for its crackers, it is especially dependent on refineries to provide its petrochemical industry with domestic sources of propylene, benzene, toluene and mixed xylenes (MX).

As MRC informed earlier, Pemex is advancing a refinery rehabilitation program that will enable it to process 1.2 million b/d of crude oil by the end of 2020 and evaluating a reconfiguration of its petrochemical facility at Cangrejera, Mexico, into what would be its eighth refinery.

We also remind that in 2016, Pemex shut its steam cracker at its Cangrejera complex for maintenance on February 15. The cracker was idle for about 14 days. The conducted repairs at the cracker were a part of planned maintenance.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Pemex, Mexican Petroleum, is a Mexican state-owned petroleum company. Pemex has a total asset worth of USD415.75 billion, and is the world's second largest non-publicly listed company by total market value, and Latin America's second largest enterprise by annual revenue as of 2009. Company produces such polymers, as polyethylene (PE), polypropylene (PP), polystyrene (PS).

MRC

Saudi Aramco downstream segment swings to loss, includes Sabic results for first time

MOSCOW (MRC) -- Saudi Aramco’s downstream business, which includes the company’s refining and chemicals segments, has swung to an EBIT loss of 2.98 billion Saudi riyals (USD795 million) in the third quarter from a profit of SR3.00 billion in the prior-year period, according to Chemweek.

The year-on-year (YOY) decline “reflects a challenging market environment that continues to weaken refining and chemicals margins,” it says. The negative result also widens from an EBIT loss in the second quarter of SR1.29 billion.

Aramco, which does not break out its chemicals earnings separately, says the downstream result for the first time incorporates a full quarter of earnings from Sabic, following the closing of its USD69.1-billion acquisition of a controlling 70% ownership stake in June. “Integration with Sabic continues to progress and drives forward the downstream strategy of creating value from integration across the hydrocarbon value chain,” Aramco says. Sabic last week reported a net profit of SR1.09 billion for the third quarter, up 47% YOY.

Downstream capital expenditures (capex) for the third quarter totaled SR6.16 billion, down from SR6.44 billion a year earlier, with the decrease partially offset by the inclusion of Sabic’s capex. Aramco’s gross refining capacity in the quarter was 6.4 million b/d of crude, up 1.0 million b/d YOY.

Group net income for the third quarter was down over 44% YOY to SR44.21 billion (USD11.8 billion), beating the company-provided analyst consensus estimate of USD10.6 billion, but up on Aramco’s second-quarter group net income of SR24.62 billion. The company’s nine-month net income declined over 48% YOY to SR131.31 billion. For the first nine months of the year, Aramco’s downstream segment consumed 39.5% of the company’s crude oil production, slightly up compared with the prior-year period.

The company “saw early signs of a recovery in the third quarter due to improved economic activity, despite the headwinds facing global energy markets,” says president and CEO Amin Nasser. “Aramco’s integration with Sabic is proceeding as planned.” The company will continue to adopt a “disciplined and flexible approach to capital allocation in the face of market volatility. We are confident in Aramco’s ability to manage through these challenging times and deliver on our objectives,” he says.

Aramco also says it will maintain its commitment to its shareholders by declaring a dividend of USD18.75 billion for the third quarter, matching what it paid in the second quarter.

As MRC wrote before, Saudi Aramco and Saudi Basic Industries Corporation (SABIC) have decided to reevaluate their crude-oil-to-chemicals project in Yanbu on the kingdom's west coast, according to an Oct. 18 statement on the Tadawul stock exchange, as they slash spending due to low prices. The USD20 billion project may be downsized to use Aramco's existing facilities in the port city, instead of building a new plant, the statement posted by SABIC said.

We remind that in June, Aramco said it had completed the share acquisition of a 70% stake in SABIC from the Public Investment Fund, the sovereign wealth fund of Saudi Arabia, for a total purchase price of Riyals 259.125 billion (USD69.1 billion). Combined, in 2019 Aramco and SABIC recorded petrochemicals production volume of nearly 90 million mt, including agri-nutrient and specialty products.

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

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco"s value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC

Borealis net profit dips, flags sequential upturn despite low prices, margins

MOSCOW (MRC) -- Borealis (Vienna, Austria) reports a 21% decline year on year (YOY) in net profit to EUR163 million (USD191 million) for the third quarter of 2020, but flags a sequential rise in earnings of EUR99 million compared to the second quarter, said the company.

The result is a “clear improvement” sequentially despite continued low prices and margins, reflecting solid demand in many sectors, says CEO Alfred Stern, talking exclusively to CW today. Net sales fell 16% to EUR1.63 billion compared to the prior-year period, but again were up on the second quarter’s figure of EUR1.53 billion.

The lower result YOY was achieved “in the face of difficult market conditions, characterized by low product prices and reduced demand in some sectors due to the coronavirus pandemic,” according to the company. A lower integrated polyolefins margin and less favorable fertilizer environment drove the decline in profit compared to last year, it says. This was despite a YOY rise in polyolefins sales volumes, it adds.

Performance at its Borouge joint venture (JV) with Abu Dhabi National Oil Co. (Adnoc) also showed improvement over the second quarter, but was down on the prior-year period due to lower polyolefins prices and the weaker market environment, Borealis says.

Significant progress was made during the third quarter at the company’s strategic growth projects despite the impact of the COVID-19 pandemic, including its Baystar 50/50 JV with Total in Texas, its propane dehydrogenation (PDH) plant in Kallo, Belgium, and its Borouge polypropylene Borstar PP5 plant, which is part of its Borouge 3 complex at Ruwais, UAE. The 750,000-metric tons/year PDH plant at Kallo is due online towards the end of 2022, while the Baystar steam cracker and the 500,000-metric tons/year Borstar-process plants are expected online in the first and third quarters of 2021, respectively, according to Stern.

The proposed Borouge 4 project at Ruwais, meanwhile, is still scheduled for completion before the end of 2025, with the front end engineering and design (FEED) phase to be finished by the end of 2021 when a final investment decision (FID) will then be made, Stern says. The complex will include a mixed-feed cracker with an estimated capacity for 1.8 million metric tons/year (MMt/y) of ethylene, and a total production capacity of 3.3 MMt/y of olefins and aromatics, using feedstock supplied by Adnoc. The project, if it proceeds to completion, would more than double Borouge’s current polyolefins capacity to over 10 MMt/y.

Looking ahead, Stern says that although Borealis does see “some price improvements, particularly in Asia and the US,” the outlook remains uncertain due to volatile feedstock prices and rising numbers of COVID-19 cases, “especially in Europe.” Stern remains “optimistic” about the future demand outlook globally, although growth rates for polyolefins “will come down,” he notes.

As MRC informed earlier, OMV, the international integrated oil and gas company headquartered in Vienna and Mubadala Investment Company, the Abu Dhabi-based strategic investment company, have today completed the transaction for OMV to acquire an additional 39% stake in Borealis, a leading, global chemicals company, from Mubadala.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Mars and Huhtamaki join SABIC nitiative for pet food packaging based on certified circular polypropylene

MOSCOW (MRC) -- SABIC announced that biaxially oriented polypropylene (BOPP) film based on the company’s certified circular PP from feedstock recycling of used plastics will be introduced in primary pet food brand packaging by Mars, said the company.

The BOPP film structures are manufactured by Huhtamaki, a key supplier of sustainable packaging solutions to customers around the world. The joint initiative will help the partners implement their ambitious targets of reducing the volume of fossil-sourced plastics and accelerate the transition to a more circular plastics economy.

Following a successful pilot phase in 2020, Mars will incorporate certified circular PP polymer from SABIC’s TRUCIRCLE™ portfolio in the primary packaging of some of its popular pet food brands. The certified circular PP food-grade material is produced through the feedstock recycling of low quality, used mixed plastic that could otherwise be destined for incineration or landfill. It takes difficult to recycle used plastic back to the molecular level through a process called pyrolysis. This technology breaks down used plastic by heating it at a very high temperature in an oxygen-free environment, producing pyrolysis oil. SABIC uses pyrolysis oil coming from UK-based Plastic Energy’s proprietary advanced recycling technology that enters the production chain just like fossil-based feedstock to deliver new materials that can address strict quality requirements, such as certain hygiene standards for food packaging. The resulting PP polymer is verified and authenticated under the International Sustainability and Carbon Certification (ISCC PLUS) scheme, which uses a mass balance approach. SABIC’s certified circular products from our TRUCIRCLE portfolio offer a carbon footprint reduction of 2kgs of CO2 for every kilogram of polymer produced based on the diversion of post-consumer used plastic from incineration.

Likewise, while Mars is piloting the use of SABIC recycled content in Europe in 2020, the company plans to increase volumes used in 2021 with ambitions to other brands. Mars sees this as a major step in the company’s sustainability strategy, which is targeting the use of 30 percent recycled content across their packaging portfolio and a 25 percent reduction of virgin plastic by 2025.

With its TRUCIRCLE portfolio, SABIC is capturing great value from sources like animal-free bio-based feedstock and post-consumer recycle, which have traditionally been ignored or discarded. The ISCC PLUS accredited materials offer drop-in solutions for replacing fossil-based plastics in the packaging industry without compromising product purity and food safety. Moreover, BOPP film using certified circular PP polymer from SABIC offers an excellent balance of stiffness and toughness as well as barrier and hot-fill properties. It can be used for a wide range of flexible applications, from labels and tape to packaging pouches and bags in areas such as confectionery, snacks, baked goods, dried fruits, pasta, fresh food, and pet care products.

SABIC’s TRUCIRCLE offering spans from design for recyclability services and mechanically recycled materials to certified circular products from feedstock recycling of used plastics as well as certified renewable polymers from bio-based feedstock. Third-party ISCC PLUS certification ensures that the mass balance accounting of the company’s circular polymer products follows predefined and transparent rules. In addition, it provides traceability along the entire supply chain from the feedstock to the final product.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC