Axiall reports Q2 2014 results

MOSOCW (MRC) -- The company reported net sales of USD1,236.9 million for the second quarter of 2014, compared to net sales of USD1,272.8 million reported for the second quarter of 2013, as per the company's press release.

The company reported net income attributable to Axiall of USD27.2 million, or USD0.38 diluted earnings per share, for the second quarter of 2014, compared to net income attributable to Axiall of USD72.8 million, or USD1.03 diluted earnings per share, for the second quarter of 2013.

The company reported adjusted net income of USD33.5 million and adjusted earnings per share of USD0.48 for the second quarter of 2014, compared to adjusted net income of USD84.0 million and adjusted earnings per share of USD1.19 for the second quarter of 2013.

The company reported adjusted EBITDA of USD128.1 million for the second quarter of 2014, compared to adjusted EBITDA of USD197.9 million for the second quarter of the prior year.

"Our second-quarter results were primarily impacted by lower ECU values and the unplanned outage at our PHH VCM facility," President and CEO Paul Carrico said. "In our Building Products segment, we experienced a normal seasonal increase in sales volumes but continued to see weaker Canadian sales and the impact of a weaker Canadian dollar during the period. Additionally, our Aromatics results are lower than the second quarter of 2013 due to lower operating rates and lower margins.

"Our top priority remains the safe, reliable operation of our plants, and we have taken clear steps to reinforce operational excellence throughout our organization," Carrico said.

In the Chlorovinyls segment, second-quarter 2014 net sales were USD777.9 million compared to USD801.8 million during the second quarter of 2013. The 3% decrease was principally due to substantially lower ECU pricing and lower sales volumes due to the PHH VCM facility outage which began in December 2013, partially offset by higher PVC pricing.

As MRC reported earlier, in December 2013, Axiall Corp. said it is considering building a USD3 billion ethane cracker and chemical plant somewhere in Louisiana. The Atlanta-based chemical manufacturer would invest USD1 billion of its own money, while an unnamed partner would put in USD2 billion. The plant could open in 2018, creating 225 permanent jobs.

Axiall Corporation is a leading integrated chemicals and building products company. Axiall, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers.
MRC

MOSCOW (MRC) -- While differentials to the US have not changed from July to August, Saudi Aramco has reduced its differentials for other destinations, especially Europe, reported Hydrocarbonprocessing with reference to the US Energy Information Administration's (EIA) statement.

Aramco sells its oil to long-term customers at an official selling price (OSP). Saudi Aramco adjusts the OSP monthly based on specific conditions in different regions of the world, the EIA explained.

But European refiners could be getting better discounts, the EIA reported in its "Today in Energy" brief.

"According to Arab Oil & Gas, these reductions reflect the anticipated reopening of the Ras Lanuf and Es Sider terminals in Libya, which could increase that country's crude oil exports by 500,000 bpd," the EIA wrote. "They also reflect the intention for Saudi oil to remain competitive in southern European markets."

Saudi Aramco's OSP is calculated on a differential to a crude benchmark based on destination and crude quality, taking into account product yields and local market conditions. Each month, Aramco publishes these differentials, which determine the OSP for the following month.

As MRC informed earlier, Saudi Aramco and Sumitomo Chemical will transfer ownership of a planned 32 billion riyal (USD8.5 bln) petrochemical facility to their joint venture PetroRabigh. The new facility, known as Rabigh II, is to be built as an expansion of PetroRabigh's existing petrochemical plant, increasing output and introducing higher-margin products.

We remind that, in May, 2014, Saudi Aramco Products Trading Co., the fuel marketing unit of Saudi Arabia’s state oil producer, started selling products of an affiliated petrochemicals maker. Aramco Trading will sell products including polypropylene and polyethylene made by Rabigh Refining & Petrochemicals Co.

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

MOSCOW (MRC) -- Ningxia Yinglite has shut a polyvinyl chloride (PVC) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in China informed that the plant was shut on August 12, 2014. It is likely to remain off-stream for around one week.

Located at Ningxia in China, the plant has a production capacity of 120,000 mt/year.

As MRC reported previously, Henan Jiyuan Fangsheng Chemical restarted its PVC plant following maintenance turnaround in early August 2014. It was shut on July 8, 2014 for maintenance turnaround. Located in Henan province, China, the plant has a production capacity of 100,000 mt/year.

We remind that Xinjiang Zhongtai Chemical shut down two PVC plants for maintenance turnaround in July 2014. The duration of the shutdown could not be ascertained. Located in Xinjiang, China, the plants have a combined production capacity of 800,000 mt/year.
MRC

MOSCOW (MRC) -- Romanian insolvent chemical producer Oltchim Ramnicu Valcea on Wednesday said its loss narrowed 22% to RON 115.2 millio (EUR25.97 million) in the first half, from RON147.5 million a year earlier. Oltchim is currently at 22% of capacity, compared to 18% last year, said Business-review.

Turnover increased by 30%, from RON 208.7 million in the first half of 2013 to RON 271 million (EUR 60.7 million) in the first six months of 2014, according to a report from the chemical producer. The turnover increase is due to exports going up 51% to RON 185.79 million, while sales stagnated at RON 85 million.

Debts also inched up since the end of last year, by RON 20 million, to RON 3.63 billion.

Oltchim entered insolvency in January 2013. On Thursday, the managers announced they will again put up Oltchim SPV for sale, the company that owns the chemical producer’s assets. The new sale attempt will take place on December 15.

Oltchim's main products include polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.
MRC

MOSCOW (MRC) -- Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is likely to shut its No 1 styrene monomer (SM) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Japan informed that the plant will be shut in end-August 2014. It is likely to remain off-stream for around one month.

Located in Tokuyama, Japan, the plant has a production capacity of 120,000 mt/year.

As MRC wrote previously, Idemitsu SM (Malaysia), an affiliate of Idemitsu Kosan, is likely to shut its styrene monomer (SM) plant for maintenance in August 2014. It is likely to remain shut for around one month. Located at Pasir Gudang in Malaysia, the SM plant has a production capacity of 600,000 mt/year.

Idemitsu Kosan is a Japanese petroleum company. It owns and operates oil platforms, refineries and produces and sells petroleum, oils and petrochemical products. The company runs two petrochemical plants in Chiba and Tokuyama. The two naphtha crackers can produce up to 997,000 tonnes of ethylene per year.
MRC