Sahara Petrochemical increases net profit by 183% in 2013

MOSCOW (MRC) -- Sahara Petrochemical Co., the Saudi Arabia-based firm which last month announced plans to merge with Saudi International Petrochemical Co. (Sipchem) in the first half of this year, has earned net profit of SR578.7 million in 2013, registering a growth of 183% compared to net profit of SR204.4 million in 2012, as per Ein News.

In the fourth quarter of 2013, Sahara made a net profit of SR178.2 million, showing an increase of 176% over profit of SR64.5 million in the corresponding quarter of 2012, the company said in a statement to Saudi Stock Exchange.

The major improvement in Al Waha plant performances (an affiliate of Sahara) and the diversity of product grades produced led to the increase in sales. In addition, the increase in sale prices and lower feedstock prices, and the improvement in the results from associates were the reasons cited by the company for increases in its annual and quarterly net profits.

As MRC wrote previously, in December, 2013, Saudi International Petrochemical Co. (SIPCHEM) unveiled its plans to sign a share-swap merger agreement with Sahara (SPC) Petrochemicals Co. in the first half of 2014, seeking to create a company with about USD5 billion in market value.

Sahara Petrochemical is involved in building and operating petrochemical projects, especially propylene, polypropylene, ethylene and mixed polyethylene industries.
MRC

MOSCOW (MRC) -- The performance products division of Huntsman will expand its global polyetheramines (PEA) capacity by a minimum of 15% as a result of debottlenecking three of its PEA manufacturing plants globally, reported Hydrocarbonprocessing with reference to the company's announcement.

The financial investment and capacity were not disclosed.

Expansion is currently underway in the Americas, Europe and Asia. The company expects projects at its Conroe, Texas (US), Llanelli, Wales (UK) and Singapore sites to be fully operational by May 2014.

"In addition to an increase in capacity, these debottlenecking projects will enhance Huntsman's manufacturing flexibility globally," said Stu Monteith, president of Huntsman's performance products business. "No disruptions in production are expected during this period."

Polyetheramines improve the performance of epoxy systems that are used in industrial and decorative coatings and sports equipment such as tennis racquets, skis and hockey sticks.

With new amine applications emerging frequently, Huntsman says it is forecasting significant mid-term growth in the sector.

As MRC informed earlier, last year, Huntsman Corp. signed a definitive agreement to acquire Oxid LP, a privately-held manufacturer and marketer of specialty urethane polyols based in Houston, Texas. Oxid's polyols are a key component in the production of energy-saving polyurethane insulation products that are used in residential and commercial construction.

Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC

MOSCOW (MRC) -- Sanction-relief measures will allow EU-based companies to buy, import, insure and transport petrochemicals from Iran- all prohibited since 2012, according to Plastemart.

The European Union is set to temporarily ease restrictions on Iranian exports of petrochemical products, but a prohibition to sell technologies related to the sector into the Islamic Republic will remain in place.

As MRC informed previously, in early June 2013, the US announced new sanctions against Iran by identifying eight Iranian petrochemical companies it claims to be owned or controlled by the Iranian government, namely Bou Ali Sina Petrochemical Company, Mobin Petrochemical Company, Nouri Petrochemical Company, Pars Petrochemical Company, Shahid Tondgouyan Petrochemical Company, Shazand Petrochemical Company, Tabriz Petrochemical Company and Bandar Imam Petrochemical Company, on May 31, 2013.

The US also imposed separate sanctions on two companies, Niksima Food and Beverage JLT, a frozen yogurt company based in the United Arab Emirates and Jam Petrochemical Company, an Iranian manufacturer and seller of petrochemical products, suggesting that Niksima received payments on behalf of Jam Petrochemical Company.

The US and the European Union imposed new sanctions against Iran’s oil and financial sectors in order to prevent other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

Besides, in early 2013, United Against Nuclear Iran (UANI) asked South African energy giant Sasol to immediately declare an end to its business in Iran and take the steps necessary to complete such an exit. Sasol maintains an active presence in Iran through the Arya Sasol Polymer Company (ASPC), which operates two polyethylene plants in Iran. The company is a USD900 million joint venture between Sasol and Iran's state-owned National Petrochemical Company (NPC).
MRC

MOSCOW (MRC) -- Chengdu Huarong Chemical has shut a polyvinyl chloride (PVC) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in China informed that the plant was shut on January 15, 2014. It is likely to remain off-stream for around one month.

Located in Sichuan province, China, the plant has a production capacity of 80,000 mt/year.

As MRC wrote before, Erdos Chlor-Alkali restarted its PVC plant in China on December 15, 2013. The plant was shut for maintenance turnaround. Located in Inner Mongolia, the plant has a production capacity of 300,000 mt/year.

Another Chinese petrochemical producer - Jining Gold Power restarted its PVC plant in early December, following maintenance turnaround. It was shut on November 5, 2013. Located in Shandong province, China, the plant has a production capacity of 300,000 mt/year.

Besides, Tosoh Guangzhou shut its PVC plant for maintenance turnaround on November 16, 2013. The closure was due to shortage of feedstock. Located in Guangzhou, China, the plant has a production capacity of 220,000 mt/year.
MRC

MOSCOW (MRC) -- Vetek signed a long term contract with Vitol to supply vacuum gasoil produced by the Odessa Oil Refinery, said Hydrocarbonprocessing.

Also, Vetek signed a long term contract with Trafigura for the supply of high sulfur fuel oil produced by the Odessa Oil Refinery.

The main type of crude oil used by the Odessa Refinery is the Urals one, which is shipped from Sheskharis terminal, from the port of Novorossiysk.

Deals with crude oil are done in cooperation with trade financing from the Russian bank VTB.

In the nearest future, the Odessa Oil Refinery will increase the level of processing and, as a result, the volume of crude oil purchases. As MRC informed before, the refinery, with a capacity of 3.9 million tpy, has been idle since the end of 2010. As MRC reported previously, Odessa refinery with the capacity of 2.8 million tonnes per year was stopped in October 2010 due to the economic situation in the Ukrainian oil market and changes in the oil supply chain. Lukoil management repeatedly discussed with the Ukrainian Government the removal of technical barriers to launch Odessa refinery.

Vetek is a Ukrainian gas trader owned by Ukrainian businessman Serhiy Kurchenko, Ukrainian media has reported, citing company statements.
MRC