Global petrochemical producers release Q2 financial results
Accordingly, Reliance Industries Limited (RIL) reported a stronger financial performance for the quarter ended 30th June, 2017. The company’s standalone net profit rose by around 9% compared to the same period of last year, exceeding expectations of a standalone profit of INR79.93 billion ($1.24 billion). Standalone profit only accounts for the company’s refining, petrochemicals as well as oil and gas exploration businesses. Strong refining and petrochemicals margins reportedly contributed to higher operating profits for the quarter. The company’s net profit was up 28% on year while its revenue also grew by around 27%, meanwhile.
South Korea’s LG Chem Ltd. reported that its second-quarter net profit surged by 57% year on year mainly thanks to healthy demand for its key products. The company’s operating profit, meanwhile, rose by around 19% from the same period of 2016.
South Korean S-Oil’s net profit plunged by around 85% on the year due to foreign exchange losses, though. Operating income for the quarter also fell by 82% from last year on the back of low crude oil prices, which curtailed refining margins and contributed to the inventory losses.
In the Middle East, the Q2 results of Saudi Basic Industries Corp. (SABIC) are still awaited, although Yanbu National Petrochemical Co (Yansab) and Saudi Kayan Petrochemicals, two subsidiaries of SABIC, reported their financial results. Thanks to its better than expected second quarter earnings, Saudi Kayan’s net profit jumped by 149% from the same period of last year. However, Yansab reported a yearly plunge of 54% in Q2 net profit over the cited period. The company blamed weak sales performance for the large loss due to the temporary shutdowns and higher feedstock prices.
INEOS also increased its EBITDA by 12% on a yearly basis. The company attributed higher results to good demand particularly in Europe and the US, and their healthy margins throughout Q2.
Poland’s biggest oil refiner PKN Orlen’s net profit fell by 4% in the second quarter on a yearly basis, defying analysts’ increase expectations, due to the fact that higher costs were more prominent compared to sales. Nevertheless, the company’s sales rose 19% on new regulations implemented last year in August to curb the black market of fuel sales.
Czech Unipetrol’s petrochemical sales, meanwhile, moved up by 120% following the Litvinov cracker restart. Accordingly, the company’s net profit posted a yearly increase of 14% while its revenues and operating profit increased by 52% and 42%, respectively.
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