Hungarian MOL posts Q3 profit as upstream, refining improve

MOSCOW (MRC) -- Hungarian oil group MOL Plc reported a net profit for the third quarter, helped by strong results in its downstream business, growth in its upstream production and a weak forint that offset fall in crude prices, said Reuters.

MOL operates refineries in Hungary, Slovakia and Croatia. It also has exploration and production assets in the North Sea and countries including Pakistan, Iraq, and Russia.

Net profit was 28.5 billion forints (USD115.1 million) in the third quarter compared with a loss of 30 billion forints in the same period of 2013 and a net profit of 24 billion forints in the second quarter. The company's so called clean EBITDA (earnings before interest, tax, depreciation and amortisation) rose 18% to 163.9 billion forints, versus the 145.9 billion forint estimate of eight analysts polled by business website Portfolio.hu.

MOL said it also managed to reverse the declining trend in production, which was partly due to an increase in crude output in the Kurdistan region of Iraq.

MOL's daily production rose to 94,900 barrels from 92,400 in the second quarter, but was still below the 101,300 barrels recorded in the third quarter of 2013.

Upstream EBITDA rose to 66.2 billion forints from 60.6 billion in the second quarter but was 20% lower year on year.

Its downstream business reported a 67% annual rise in EBITDA to 80.8 billion forints in the third quarter, which MOL said was due to a rise in gasoline and fuel crack spreads and its efficiency improvement programme in the past years which started to yield results.

As MRC wrote before, JSR Corp. and MOL have received European Commission approval to form Vierium Investment, a new joint venture company to produce 60,000 t/y of solution polymerized styrene butadiene rubber (S-SBR) in Tiszaujvaros, Hungary. The venture, owned 51% by JSR and 49% by MOL, will utilize MOL's existing plant infrastructures and JSR's S-SBR production technologies. Commercial operations are scheduled for 2017 and a capacity expansion is under study and will be implemented based on demand.

MRC

MOSCOW (MRC) -- Mogilevkhimvolokno, the only Belarusian polyethylene terephthalate (PET) producer, has reduced its prices of PET chips for November shipments, according to ICIS-MRC Price report.

The company made concessions to buyers, lowering prices for the domestic market and export shipments in November, on the back of the general downward price trend in foreign markets and weak seasonal demand. Prices for exports to Ukraine dropped to EUR73/tonne from October, said a trader. Local converters have announced price reductions for the domestic market.

Open Joint Stock Company "Mogilevkhimvolokno" is the only Belarusian major producer of dimethyl terephthalate, PET polyester chips, food grade PET, polyester fibers and yarns and the main feedstock supplier for consumer industry of Belarus. The state's share in the plant is 90,53%.
MRC

MOSCOW (MRC) -- U.S. blow molding demand for polypropylene and high density polyethylene should grow this year over the 2013 levels, Joel Morales, said Plasticsnews, citing polyolefins director at IHS Chemical at the SPE Blow Molding Conference.

Morales said PP will grow 9.9% in 2014 for blow molding. HDPE will increase 3.2%.

IHS thinks PET for blow molding will remain flat. Morales said blow molded bottles are a small part of the overall PET demand. Polyester fiber for clothing is the biggest market. "China’s really driving this thing," he said.

Morales said the North American polyethylene market is "snug," and is awaiting announced new capacity in the coming years, as petrochemical companies take advantage of low-priced ethane feedstocks from lower priced natural gas unlocked by hydraulic fracturing.

"It’s been a tough year for blow molding PE resin availability," he said. "The market is tight."

IHS is based in Houston.

As MRC wrote before, Europe remains among the globe’s highest-cost production regions for chemicals. But the verge of losing its competitiveness, a robust supply of US ethane imports present an opportunity for some Western European producers, with a potential to radically transform region’s feedstock landscape. European producers are urged to innovate, further consolidate and rationalize to stay afloat, according to the report.

MRC

MOSCOW (MRC) -- Styron, a global materials company and manufacturer of plastics, latex and rubber, has announced that it is increasing prices of all products sold into the carpet, paper, and performance latex markets in North America and Latin America, reported the company on its site.

The increase will be USD0.03/dry lb. (0.033/wet kg) for all styrene butadiene and acrylic latex products. This increase will be effective December 1, 2014 or as contract terms permit.

"Styron is investing considerable resources into developing new technologies for its Latex markets while continuing to focus on maintaining its high level of expertise and service.This price increase is being driven by increases in raw materials and higher transportation costs, which have resulted in margin erosion. We must implement this price increase to continue to provide the high quality of products and service our customers receive from Styron," says Todd Crook, Styron Business Director, Americas Latex.

As MRC informed earlier, in early November 2014, Styron has implemented a price increase of EUR50 per dry metric ton for all styrene butadiene and acrylic latexes sold into the paper, carpet and performance markets in Europe, Middle East, Africa and India (EMEAI), reported the company on its site.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. Styron’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. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world, and approximately 2,100 employees.
MRC

MOSCOW (MRC) - Middle Eastern producers went on a decrease in high density polyethylene (HDPE) prices for CIS countries on the back of falling oil prices, according to ICIS-MRC Price Report.

Middle Eastern producers announced a significant decline in export HDPE prices for CIS countries on a considerable drop in oil prices. At the same time, offers from Middle Eastern producers are nit as attractive as HDPE prices from European producers.

Negotiations on Middle Eastern HDPE for November delivery began last week and continued this week. November deals for Middle Eastern HDPE were discussed in the range of USD1,470-1,500/tonne, CFR St Petersburg and CFR Odessa.

Russian companies said that due to the rouble devaluation and a sufficient supply from local producers, they refrained from the purchases of Middle Eastern HDPE in November.

Ukrainian companies reported that because of the limited export quotas for European material they had to buy needed volumes at Middle Eastern producers despite the higher price level.
MRC