Sinopec Q1 2015 profit plunges 84.6%

MOSCOW (MRC) -- Oil giant Sinopec has announced that its net profits plummeted 84.6% year on year in the first three months (Q1) of 2015, reported Xinhua.

Net profits during Q1 stood at 2.17 billion yuan (USD354.58 million), while its business revenues on oil refining pared 3.36 billion yuan, China Petroleum and Chemical Corp. said.

Sinopec attributed the slump to plunging oil prices in the global market.

The refiner produced 118 million barrels of oil and gas equivalent (boe) in Q1, down 1% from a year ago. Of the total, crude oil output decreased 2%, while natural gas output added 2.1% year on year.

Recently, top Asian refiner Sinopec has denied reported plans of a merger with China National Petroleum Corporation (CNPC) or China National Offshore Oil Corporation (CNOOC). It was reported earlier that the Chinese government was considering a merger of its state-owned oil and gas companies to cut costs and streamline operations.

We remind that, as MRC informed before, Sinopec Zhenhai shut down a high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant for maintenance turnaround in April 2015. It is expected to remain off-stream for around two months. Located at Ningbo in China, the plant has a production capacity of 450,000 mt/year.

Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
MRC

MOSCOW (MRC) -- Axiall Corporation reported net sales of USD947.6 million for the first quarter of 2015, compared to net sales of USD993.7 million for the first quarter of 2014, said the company.

The company reported a net loss attributable to Axiall of USD10.6 million, or a USD0.15 loss per diluted share, for the first quarter of 2015, compared to a net loss attributable to Axiall of USD11.6 million, or USD0.17 loss per diluted share, for the first quarter of 2014.

The company reported an Adjusted Net Loss of USD3.6 million and an Adjusted Loss Per Share of USD0.05 for the first quarter of 2015, compared to an Adjusted Net Loss of USD5.3 million and an Adjusted Loss Per Share of USD0.08 for the first quarter of 2014. The company reported Adjusted EBITDA of USD83.2 million for the first quarter of 2015, compared to Adjusted EBITDA of USD67.6 million for the first quarter of 2014.

"Our first-quarter results were primarily driven by higher operating rates and lower ethylene and natural gas costs compared to the first quarter of last year. The benefit from these impacts was partially offset by lower caustic and vinyl prices," said President and CEO Paul Carrico. "In our Building Products segment, we experienced volume growth in both the U.S. and Canadian markets, but this was more than offset by the impact of a weaker Canadian dollar compared to the same period last year."

In the Chlorovinyls segment, first quarter 2015 net sales were USD648.4 million compared to USD682.2 million during the first quarter of 2014. This net sales decrease was primarily due to lower vinyl prices, driven by lower feedstock pricing; and lower ECU values, especially with respect to caustic soda pricing. These unfavorable factors were partially offset by higher operating rates and related sales volumes, as the first quarter of 2014 was impacted by an extended outage at our PHH VCM manufacturing facility.

As MRC informed earlier, Axiall continues to pursue its proposed 1 mln tpa ethane cracker in Louisiana. This is to meet the company's requirement for cheap ethylene to remain competitive in the chlorovinyls business.

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

MOSCOW (MRC) -- Al Waha Petrochemical has restarted its polypropylene (PP) plant, according to Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant restarted over the weekend. It was shut for maintenance turnaround.

Located at Al-Jubail in Saudi Arabia, the plant has a production capacity of 450,000 mt/year.

As MRC informed previously, the world-scale petrochemical complex in Jubail Industrial City in Saudi Arabia has a capacity of 467,000 of propylene utilising oleflex technology, which serves as a feedstock for the 450,000 PP unit. The plant is considered to be largest, producing high-quality polypropylene using LBI's technology, sphereizone.

Al Waha Petrochemicals Company is owned by Sahara Petrochemicals Company, which holds 75% of its share capital with LyondelBasell owning 25%.
MRC

MOSCOW (MRC) -- Dutch chemicals and polymers maker LyondellBasell Industries, the world’s biggest maker of polypropylene plastic, has reported that first-quarter net income increased to USD1.16 billion or USD2.41 per share from USD944 million or USD1.72 per share in the prior-year quarter, as per RTT News.

Income from continuing operations grew to USD1.17 billion or USD2.42 per share from USD943 million or USD1.72 per share last year.

Results for the latest quarter include a USD92 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment (USD58 million after tax).

Excluding items, adjusted income from continuing operations was USD1.23 billion or USD2.54 per share, compared to USD943 million or USD1.72 per share in the year-ago quarter.

Sales and other operating revenues for the quarter declined to USD8.19 billion from USD11.14 billion in the same quarter last year. Analysts expected revenue of USD9.48 billion for the quarter.

Looking ahead, CEO Bob Patel said, "Planned and unplanned industry downtime has continued to support polyolefins pricing. Additionally, in the U.S., NGL feedstock inventories stand at or near record levels, production has remained strong, and NGL prices are low. During the quarter, we expect our Intermediate and Derivatives segment to benefit from normal seasonal trends. Thus far, Refining industry spreads have declined versus the first quarter but remain healthy."

As MRC informed previously, in November 2014, LyondellBasell Industries said "tight" markets for its products may stall the narrower margins that it expects will ultimately come from lower oil prices.

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

MOSCOW (MRC) -- Equate Petrochemical Company, Kuwait’s first international petrochemical joint-venture, has taken off-stream its No.2 monoethylene glycol (MEG) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Kuwait informed that the plant was shut on April 25, 2015. The plant is likely to restart early next week.

Located in Shuaiba, Kuwait, the plant has a production capacity of 650,000 mt/year.

As MRC informed earlier, in late 2014 - early 2015, Equate successfully entered its final stage of the turnaround’s operations relevant to a number of industrial units for ethylene, polyethylene and ethylene glycol.

Established in 1995, EQUATE Petrochemical Company is an international joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Commencing production in 1997, EQUATE is the single operator of a fully integrated world-scale manufacturing facility producing over 5 million tons annually of high-quality petrochemical products which are marketed throughout the Middle East, Asia, Africa and Europe.
MRC