Borealis' operating profit declines 85% in 2009

March 24 (plasteurope) -- Operating profit of polyolefins group Borealis sank 85% to EUR 24m in 2009. Net income of EUR 38m (EUR 239m) was diminished by nearly the same margin. The poor full-year figures primarily reflect losses in the first half. Business began to turn around in Q3, and Q4 saw a swing to a positive operating result of EUR 11m after a loss of EUR 199m in the 2008 period.

Although the 2009 financial result was ⌠lower than we expected, CEO Mark Garrett called it ⌠an outstanding achievement in light of the recession.

MRC

MRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE в─⌠ 8.7%);
polypropylene в─⌠ 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene в─⌠ 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.

March 24 (yarnsandfibers) -- Royal Dutch Shell PLC said Wednesday that it has successfully started up its new ethylene plant at Shell Eastern Petrochemicals Complex in Singapore on schedule.

The plant, with an annual production capacity of 800,000 metric tons of ethylene, produced on-specification ethylene March 22, it said in a statement.

Shell previously said the ethylene plant would begin operations in the first quarter of 2010.

While about half of the ethylene will serve as feedstock for the company's monoethylene glycol plant that was commissioned in November on Singapore's Jurong Island, most of the remainder will likely be sold, increasing regional ethylene supply.

The ethylene plant will feed mainly on hydrowax, a form of residual fuel, while also taking in heavy gasoil, liquefied petroleum gas, and small portions of naphtha, all of with will be mainly available from Shell's existing 500,000-barrel-a-day refinery on Bukom Island, Shell officials have said.

MRC

March 24 (plastemart) -- Production at Sinopec Maoming Petrochemical Corp's ethylene facility was at a standstill for a period of two months. The ethylene facility was shut for regular maintenance and equipment repairs in January and February, resulting in large revenue loss. The company lost production of 19,000 tons of ethylene and suffered a loss in profits of 150 mln yuan. The facility has restarted after the shutdown. After revamp, Sinopec Maoming aims to reach a record-high monthly production of 100,000 tons of ethylene in March. This rebound is fueled by the recovery of the manufacturing industry in the Pearl River Delta.

Fifteen new storage tanks with capacity of 125,000 cu m of oil will hold a combined 2 million tons of crude oil by H2-2011, doubling storage in Maoming to 4 mln tons. The expanded storage capacity will help China ride out crude oil price fluctuations and aid in securing petroleum supply in Guangdong province, a key manufacturing hubs.

The comprehensive facility includes a modern dock, crude oil loading and unloading at sea and a railway transport system.

MRC

Since the beginning of February, HDPE prices in Russia have not changed seriously and vary within the range of RUB50.000-51.500/mt, including VAT, FCA. The most serious oversupply is observed in the markets of injection moulding and blown HDPE; demand for pipe-grade polyethylene is still low.

Last year, Russian producers were exporting excess polyethylene volumes. However, weak demand in foreign markets led to the decrease in exports in February down to 14.7 kt.

HDPE demand is also very weak in Europe. In March, European producers failed to raise contract prices. Producers might cut down output in April to balance the market.

The Asian HDPE market is undergoing a depression period. Demand for imported polyethylene is at a nearly zero level in many regional markets; needs are fully met by domestic production. At the beginning of the month, prices fell by USD50-80/mt.

MRC

For more detailed information on the polyethylene market see Price Report.

March 23 (plasteurope) -- The new olefine and polyolefine complex operated by Borouge is set to begin operations in mid-2010, as planned. The joint venture between Borealis and the Abu Dhabi National Oil Company will triple the capacity of Borouge's Ruwais (UAE) complex to 2m t/y of PE and PP.

With capacities of 1.4m t/y of ethylene, 540,000 t/y of PE and 800,000 t/y of PP, ⌠Borouge 2 will complement the group's existing capacity of 600,000 t/y of PE.

MRC

MRC Reference

Borealis. The share in the Russian market in 2008:

polyethylene - 4.1% (including HDPE - 4.7%, LLDPE - 8.7%);
polypropylene - 3.2% (PP-impact - 7.5%).

Annual sales growth in Russia over the last 5 years:
polyethylene - 11%;
polypropylene - 6%.

Leader in polymers processing technologies:
extrusion coating;
cable extrusion;
injection molding.