SIBUR to pay dividends for year 2020 at Rb13.17 per share

MOSCOW (MRC) -- The shareholders of SIBUR, the largest petrochemical holding in Russia and Eastern Europe, at the annual general meeting of April 13, approved the payment of the final dividends for 2020 in the amount of Rb28.69 billion, the company said.

Thus, dividends will be paid at the rate of Rb13.17 per share.

At the same time, taking into account the previously paid dividends for the first half of 2020 in the amount of Rb12.482 billion. the total amount of dividends for the last year will be about Rb41.17 billion, at the rate of Rb18.9 per one ordinary share.

"Thus, 35% of the adjusted IFRS net profit for the first half of 2020 is directed to dividends and, in line with the newly adopted dividend policy, 50% of the adjusted IFRS net income - for the second half of 2020," SIBUR emphasizes.

The date on which the list of shareholders entitled to receive dividends is drawn up is April 19.

As MRC reported earlier, in March, 2021, SIBUR made changes to its dividend policy. The company raised the minimum dividend payout to 50% from 35% of the adjusted net income in accordance with International Financial Reporting Standards (IFRS). The new policy will begin to apply from reporting periods beginning July 1, 2020.

We remind that SIBUR Holding's revenue decreased by 1.6% last year and to Rb523 billion. At the same time, SIBUR increased EBITDA to Rb179 billion, up by 5.4% year on year.

We also remind that in December 2020, SIBUR Holding chose Spheripol LyondellBasell polyolefin technology for its Amur Gas Chemical Complex (AGHK), which is under construction. The technological process will be used at a polypropylene (PP) plant with a capacity of 400,000 mt/year, which will be built in the town of Svobodny, Amur Region.

According to MRC's ScanPlast, Russia's overall PP production increased by 31% year on year in 2020, totalling about 1,883,000 tonnes. The main increase in production was provided by ZapSibNeftekhim.

SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.
MRC

MOSCOW (MRC) -- Kuraray America, a subsidiary of the Kuraray Group and one of the leading international companies in the production of specialty chemicals, fibers, resins and elastomers, has resumed operations at its vinyl acetate monomer (VAM) plant in La Porte, Texas, USA, reported Rubber&Plastics News.

This plant with the capacity of 335,000 mt/year was shut in mid-February because of the unprecedently low temperatures in the region and was restarted on 2 April, 2021.

Meanwhile, production is still suspended on some lines of this plant, but on which lines, it is not specified.

As MRC reported earlier, Kuraray America last shut its VAM plnat in La Porte for a one-month scheduled maintenance in October 2019.

VAM is the main raw material for the production of ethylene-vinyl-acetate (EVA).

According to MRC's DataScope report, February EVA imports to Russia rose by 1,44% year on year to 3,14 tonnes from 3,10 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation grew in January-February 2021 by 0,68% year on year to 6,230 tonnes (6,190 tonnes a year earlier).

iKuraray America is one of the world's largest specialty chemicals, fibers, resins and elastomers companies. The company's manufacturing facilities are located in Houston, Texas.
MRC

MOSCOW (MRC) -- All three crackers in Texas of petrochemical producer Formosa Plastics USA, part of Taiiwan's Formosa Petrochemical, are now operating, reported S&P Global with reference to sources familiar with company operations' confirmation April 12.

Formosa Plastics USA has restarted its 900,000 mt/year cracker at its Texas complex after completing a turnaround. .
The company launched the turnaround after restarting its 1.2 million mt/year cracker, the largest at the site, and a smaller 750,000 mt/year unit after sustained subfreezing temperatures forced widespread petrochemical shutdowns along the US Gulf Coast in mid-February.

The smallest cracker had already been shut for much of 2020, and its restart prompted Formosa to move ahead with the planned turnaround on the middle-sized facility.

As MRC informed previously, Formosa Plastics Company (FPC), also part of Formosa Petrochemical, unexpectedly took off-stream its No. 1 cracker in Mailiao, Taiwan on 12 April 2021 due to an unspecified technical issue. Market sources said the cracker with an annual capacity of 700,000 tons of ethylene and 350,000 tons of propylene would remain offline for 7 to 10 days.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, PP shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company's plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- The Supervisory Board of OMV Aktiengesellschaft, the international, integrated oil, gas and chemical company headquartered in Vienna, has appointed Martijn van Koten (51) as the new Executive Board member responsible for the Refining division of OMV Aktiengesellschaft, as per the company's press release.

Martijn van Koten has accepted the appointment. He will assume the position depending on his availability, at the latest with effect from July 1, 2021 for a three-year period, with an extension option for further two years, subject to mutual consent. Martijn van Koten is currently working as Executive Board Member for Base Chemicals and Operations at Borealis AG.

The reorganization of the OMV Group approved by the Supervisory Board came into force on April 1, 2021, involving splitting and expanding the former area of Refining & Petrochemical Operations into two areas: Refining and Chemicals & Materials.

This structural change facilitates the forward integration in the chemicals sector that has been underway ever since OMV acquired a majority stake in Borealis. With this change, OMV is consistently positioned across the entirety of its expanded value chain and can bundle all relevant responsibilities for petrochemicals and chemicals in a single board division.

As MRC wrote before, OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
MRC

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, has selected HSBC and Morgan Stanley to work on the planned initial public offering (IPO) of its specialty chemicals business, reported ArabNews with reference to two sources familiar with the matter.

SABIC hired Saudi investment bank NCB Capital earlier this year to work on the public share sale, which sources said could raise several hundred million dollars.

The specialty chemicals business brings in about USD2 billion in sales each year for SABIC, which is controlled by state oil company Aramco, one of the sources, and a third source, said. The unit produces speciality engineering thermoplastic resins and compounds, composites, thermosets and additives, according to its website.

The country had a flurry of public offerings last year as companies tap into Saudi demand for shares since oil giant Aramco’s record IPO in 2019. Saudi Arabia is encouraging more companies to list in a bid to deepen its capital markets under reforms aimed at reducing its reliance on oil.

As MRC informed earlier, SABIC, a global leader in the chemical industry, is looking at converting plastic waste into a form of oil as part of its circular economy push and also plans to establish its first chemical recycling project after signing an initial agreement with Saudi Investment Recycling Company (SIRC), a unit of the Public Investment Fund.

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC