Mitsui Chemicals net profit up 70.3% last year

MOSCOW (MRC) -- Mitsui Chemicals’ net profit for the fiscal year ending March 2021 posted 70.3% growth despite lower sales, as profitability of its basic materials business benefited from better overseas markets, said the company.

Lower group sales were attributed to declines in product prices, dragged down by falls in values of naphtha and other raw materials and fuel amid the coronavirus pandemic. Its basic materials segment reported a 12.6% year-on-year decline in sales to Y541.4bn, but operating income before special items more than doubled to Y19.6bn from Y9.4bn in the previous fiscal year “due to improved overseas market".

Mitsui Chemicals said that operating rates at its naphtha crackers were lower than the previous fiscal year due to decreased demand for downstream products, caused by the impact of the coronavirus. “Performance of polypropylene was affected by slowing demand for automotive products. For bisphenol A (BPA) and acetone, the overseas market was at a higher level than the previous fiscal year,” the Japanese producer said.

For the current fiscal year ending March 2022, Mitsui Chemicals is projecting higher earnings, in line with the global economic recovery from a pandemic-induced slump in 2020. Basic materials should be able to generate sales of Y635bn and yield an operating profit before special items of Y36bn, based on the company’s forecasts.

“In the chemical industry, although demand is expected to expand due to signs of economic recovery, chemical companies should remain vigilant regarding fluctuations of raw materials and other chemical product markets,” it said.

As per MRC, Kumho Mitsui Chemicals Inc. said it will invest about 400 billion won (USD358.1 million) to expand its chemical manufacturing factory in South Korea's southwestern region. The joint venture between Korean synthetic rubber maker Kumho Petrochemical and Mitsui Chemicals of Japan said its shareholders approved the investment plan to scale up a methylene diphenyl diisocyanate (MDI) factory in Yeosu, 455 kilometers southwest of Seoul.

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to MRC ScanPlast report, Russia's overall estimated consumption of PC granules grew in the Russian market by 27% year on year in January-February 2021 (excluding imports and exports to/from Belarus) to 16,000 tonnes, compared to 12,600 tonnes a year earlier.
MRC

MOSCOW (MRC) -- A fire in four oil pipelines that feed Aqaba refinery has been put out, reported Reuters with reference to Jordan's state news agency.

Jordan security added the fire was extinguishe before it reached crude oil storages, and it won’t affect gas supplies to any part of Jordan.

There were no injuries.

We remind that, as MRC informed earlier, on 7 April, 2021, a major fire broke out at an oil refinery run by Petroleos Mexicanos (Pemex) in the eastern city of Minatitlan in the southern state of Veracruz. According to media reports and Mexico's safety, the blaze started at this refinery, one of six operated by Pemex, which has a capacity of up to 285,000 barrels per day, on Wednesday afternoon.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business, said the company.

PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

This acquisition serves as a catalyst for helping Trinseo transform into a higher margin, less cyclical solutions provider. The transformative nature of the transaction will accelerate investments in growth opportunities for Trinseo’s Engineered Materials business globally; the transaction is also expected to generate approximately USD50 million of annual synergies. Additionally, the PMMA business is a strategic fit in that, in combination with Trinseo’s existing portfolio, it enhances Trinseo’s ability to provide solutions to customers in profitable markets. With future investments, there will be the opportunity to leverage Trinseo’s global presence to provide solutions to its existing customers in Asia Pacific where Trinseo has a significant presence.

"Today is a special day. I am thrilled to welcome our new colleagues and customers to the Trinseo family, as we embark on this transformation journey together,” said Frank Bozich, Trinseo President and Chief Executive Officer. “This journey will bring us closer to our customers; create a more sustainable, environmentally-friendly footprint; and shorten the cycles of innovation that accelerate the process of bringing new, industry-leading solutions to market."

As per MRC, Trinseo reported a first-quarter net income, up from a loss reported during the same time in 2020 because sales rose faster than costs. The following shows the company's Q1 performance. Figures are in millions of dollars. Trinseo attributed the rise in revenue to higher volumes in all of its segments except for Feedstocks. Prices also rose, mostly because of Trinseo passing through higher costs for raw materials.

It was reported before, Trinseo will build a full commercial scale polystyrene (PS) recycling plant in Tessenderlo, Belgium that is expected to be operation in 2023. The company will use depolymerisation which breaks down polymers into their precursors to chemically recycle the material. The recycled PS will have identical properties with virgin PS.

According to ICIS-MRC Price report, in Russia, Nizhnekamskneftekhim's PS prices remained unchanged in May. Prices of Nizhnekamskneftekhim's GPPS were in the range of roubles (Rb) 192,000-203,000/tonne, CPT Moscow, including VAT, whereas HIPS prices were at Rb196,000-207,000/tonne CPT Moscow, including VAT. At the same time, May prices of Penoplex's material fell by Rb15,000/tonne to Rb204,000-206,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

MOSCOW (MRC) - The Tatarstan Arbitration Court at the meeting appointed Nizhnekamskneftekhim (NKNKH) a fine of 150 thousand rubles for deviations from the project during the construction of two facilities of the ethylene (olefin) complex, Interfax reports.

"To partially satisfy Rostekhnadzor's application. To bring Nizhnekamskneftekhim to responsibility under Part 2 of Article 9.4 of the Code of Administrative Offenses of the Russian Federation. To impose an administrative penalty below the lower limit for an administrative fine, in the amount of 150 thousand rubles," the judge said. Representatives of Rostekhnadzor asked the court to impose a penalty on the enterprise in the form of administrative suspension of construction.

For their part, the representatives of NKNK, recognizing the fact of violations, asked the court to impose a fine. According to them, the corrected design of one of the two objects that caused criticism - the hot overpass has already passed the state examination, and there is confidence that a positive conclusion will be received on the updated design of the second object - stacks for pipelines. At the same time, they noted that, at the behest of Rostekhnadzor, the construction has been stopped since March 19, and, thus, even before the court's decision, the company was actually punished by the suspension of construction activities.

Earlier it was reported that the Volga department of Rostechnadzor, during an unscheduled inspection in February-March 2021, revealed violations of the requirements for urban planning activities during the construction of two facilities of the EP-600 ethylene plant, currently the largest investment project of NKNKH.

The construction of an ethylene complex at Nizhnekamskneftekhim is one of the largest industrial construction projects in Tatarstan at the present time. At the NKNK site, a complex is being built to process almost 1.8 million tons of straight-run gasoline per year. In addition to 600 thousand tons of ethylene, the production is planned to receive 273,000 tonnes of propylene, 250,000 tonnes of benzene, 88,000 tonnes of butadiene. NKNK will receive money for Ethylene-600 from Deutsche Bank AG, with which it entered into a long-term loan agreement for EUR807 mln in 2018 (Rb71.5 bn at the current exchange rate). In general, the project was then estimated at Rb234 bn.

The German company Linde is engaged in the design and delivery of the equipment, the construction and installation work is carried out by the specialists of the general contractor - the Turkish company Gemont LLC. In February, TAIF reported that pits were dug at the site by 85%, piles were hammered by 97%, and reinforced concrete structures were installed by 52%. The complex is planned to be commissioned in 2023.

PJSC "Nizhnekamskneftekhim" (NKNKH) is one of the largest Russian producers of petrochemical products. The production complex of the company includes ten factories of the main production and ten departments (railway transport, main ethylene pipelines, etc.). NKNKh produces over 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is part of TAIF Group. SIBUR has decided to implement plans to merge the petrochemical business with the Tatarstan TAIF group. As a result, the merged company SIBUR will enter the TOP-5 world producers of polyolefins and rubbers.
MRC

1. Marathon posts smaller-than-expected Q1 loss helped by higher refining margins and COVID-19 vaccine rollouts

MOSCOW (MRC) -- US refiner Marathon Petroleum Corp has reported a smaller-than-expected first quarter loss helped by a jump in refining margin and COVID-19 vaccine rollouts, which drove a rebound in fuel demand, according to Hydrocarbonprocessing. The mass public vaccinations and easing travel restrictions over the last few months have helped fuel demand tick up from the record lows hit last year, lifting the outlook for refiners. Marathon, which generated positive adjusted core earnings in its refining and marketing business for the first time since the pandemic began, saw its refining and marketing margins grow over 66% to USD10.16 per barrel from the previous quarter.


MRC