April 30, 2021

Sabic and Aramco Sales Changes

Aramco and SABIC announce plans to realign marketing and sales, commercial and supply chain activities to drive efficiency and add customer value
édité le 29/04/2021 – Plus de news de “ARAMCO” – Voir la fiche entreprise de “ARAMCO“

Aramco and SABIC announce plans to realign marketing and sales, commercial and supply chain activities to drive efficiency and add customer value

  – SABIC will focus on petrochemicals and Aramco Trading Company will focus on fuel products
  – Changes reflect that SABIC is now the chemicals arm of Aramco, in line with long-term strategy
  – Together, Aramco Trading Company and SABIC are focused on providing a world-class products and services offering to global customers

Aramco and SABIC announce their intention to transfer the marketing and sales responsibility for a number of Aramco petrochemicals and polymers products to SABIC, and the offtake and resale responsibility of a number of SABIC products to Aramco Trading Company (ATC).

The effect of these changes, planned to be implemented on a phased basis during 2021, subject to the necessary consents being obtained, will focus SABIC on petrochemicals products and ATC on fuel products.

This is a significant step in aligning the Aramco and SABIC strategies, following Aramco’s acquisition of a 70% stake in SABIC in June 2020.

Aramco and SABIC will continue to review options for further global marketing and sales transfers across product-producing companies within the Aramco group portfolio.

Benefiting customers

The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness. Customers will benefit from improved product range and availability, ordering and points of sale, supply chain, shipping reliability, and after-market services and solutions.

Ibrahim Al-Buainain, Aramco Trading Company President and CEO, said: “The transfers reflect our shared commitment to capitalize on the complementary nature of Aramco and SABIC’s respective product portfolios as we strive to create added value for our customers and shareholders.

“Together, Aramco Trading Company and SABIC are focused on providing a world-class products and services offering. These changes will place us in an even stronger position to deliver market-leading innovation and value.”

Abdulrahman Al-Fageeh, SABIC Executive Vice President – Petrochemicals, said: “By leveraging and optimizing our complementary combined product portfolios we will create a one-stop shop for the benefit of our customers globally, including in strategically important geographies, especially across Asia.

“These marketing and sales transfers and operational changes are intended to put us closer to market, driving greater agility and flexibility to deliver added value to customers and power their ambition.”

About the marketing and sales transfers and changes

Responsibility for the global marketing and sales of certain Aramco petrochemicals and polymers products and those of its joint ventures and affiliates will transfer to SABIC, initially focused on: PRefChem (Pengerang Petrochemical Company Sdn. Bhd.); SADARA (Sadara Chemical Company); and, S-Oil Corporation (S-Oil Corporation, South Korea).

After completing the consolidation of petrochemical products, SABIC will market the following products, which include both existing products and extensions to its portfolio: HDPE, LLDPE, LDPE, PP copolymer, PP homopolymer, PP terpolymer, ethylene vinyl acetate copolymer(EVA), PMMA, PA6, MEG, DEG, TEG, Mono-Ethanolamine (MEA), Di-Ethanolamine (DEA), Tri-Ethanolamine (TEA), Ethylene diamine (EDA), DiEthyleneTriamine (DETA), ortho-Toluenediamine, Polymeric Methylene Diphenol Diisocyanate (PMDI), Toluene diisocyanate (TDI), Propylene Glycols, Polyols, Propylene Oxide, MMA, Butyl Glycol Ether, Acetone and Phenol.

In parallel, responsibility for offtake, resale and sourcing of a number of existing SABIC fuel products globally (Benzene, MTBE, gasoline blending components and EU cracker feedstocks) will transfer from SABIC to ATC. Sales of Aramco Para-Xylene will remain with ATC.

A number of marketing and sales transfer exclusions currently apply, and there are therefore no changes planned to the following:

  – Aramco: excess production of Olefins.
  – ARLANXEO: portfolio products (rubber and elastomer).
Motiva: portfolio products (cyclohexane, propylene and ethylene).
  – S-Oil: responsibility for domestic marketing and sales in Korea.

About the commercial and supply chain activity transfers and changes

Responsibility for the commercial aspects of liquid bulk marine shipping services will be consolidated under ATC (including chemicals and feedstock), while responsibility for the shipping of all solid products and customer product delivery will be consolidated under SABIC.

About Aramco

Aramco is a global integrated energy and chemicals company driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, sustainable and useful, promoting stability and long-term growth around the world. www.aramco.com

About SABIC

SABIC is a global diversified chemicals company, headquartered in Riyadh, Saudi Arabia. It manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals.

SABIC supports its customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation and clean energy. Production in 2020 was 60.8 million metric tons.

The company has more than 32,000 employees worldwide and operates in around 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 9,946 global patent filings, and has significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South Asia and North Asia.

https://www.euro-petrole.com/aramco-and-sabic-announce-plans-to-realign-marketing-and-sales-commercial-and-supply-chain-activities-to-drive-efficiency-and-add-customer-value-n-i-22172

April 30, 2021

Sabic and Aramco Sales Changes

Aramco and SABIC announce plans to realign marketing and sales, commercial and supply chain activities to drive efficiency and add customer value
édité le 29/04/2021 – Plus de news de “ARAMCO” – Voir la fiche entreprise de “ARAMCO“

  – SABIC will focus on petrochemicals and Aramco Trading Company will focus on fuel products
  – Changes reflect that SABIC is now the chemicals arm of Aramco, in line with long-term strategy
  – Together, Aramco Trading Company and SABIC are focused on providing a world-class products and services offering to global customers

Aramco and SABIC announce their intention to transfer the marketing and sales responsibility for a number of Aramco petrochemicals and polymers products to SABIC, and the offtake and resale responsibility of a number of SABIC products to Aramco Trading Company (ATC).

The effect of these changes, planned to be implemented on a phased basis during 2021, subject to the necessary consents being obtained, will focus SABIC on petrochemicals products and ATC on fuel products.

This is a significant step in aligning the Aramco and SABIC strategies, following Aramco’s acquisition of a 70% stake in SABIC in June 2020.

Aramco and SABIC will continue to review options for further global marketing and sales transfers across product-producing companies within the Aramco group portfolio.

Benefiting customers

The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness. Customers will benefit from improved product range and availability, ordering and points of sale, supply chain, shipping reliability, and after-market services and solutions.

Ibrahim Al-Buainain, Aramco Trading Company President and CEO, said: “The transfers reflect our shared commitment to capitalize on the complementary nature of Aramco and SABIC’s respective product portfolios as we strive to create added value for our customers and shareholders.

“Together, Aramco Trading Company and SABIC are focused on providing a world-class products and services offering. These changes will place us in an even stronger position to deliver market-leading innovation and value.”

Abdulrahman Al-Fageeh, SABIC Executive Vice President – Petrochemicals, said: “By leveraging and optimizing our complementary combined product portfolios we will create a one-stop shop for the benefit of our customers globally, including in strategically important geographies, especially across Asia.

“These marketing and sales transfers and operational changes are intended to put us closer to market, driving greater agility and flexibility to deliver added value to customers and power their ambition.”

About the marketing and sales transfers and changes

Responsibility for the global marketing and sales of certain Aramco petrochemicals and polymers products and those of its joint ventures and affiliates will transfer to SABIC, initially focused on: PRefChem (Pengerang Petrochemical Company Sdn. Bhd.); SADARA (Sadara Chemical Company); and, S-Oil Corporation (S-Oil Corporation, South Korea).

After completing the consolidation of petrochemical products, SABIC will market the following products, which include both existing products and extensions to its portfolio: HDPE, LLDPE, LDPE, PP copolymer, PP homopolymer, PP terpolymer, ethylene vinyl acetate copolymer(EVA), PMMA, PA6, MEG, DEG, TEG, Mono-Ethanolamine (MEA), Di-Ethanolamine (DEA), Tri-Ethanolamine (TEA), Ethylene diamine (EDA), DiEthyleneTriamine (DETA), ortho-Toluenediamine, Polymeric Methylene Diphenol Diisocyanate (PMDI), Toluene diisocyanate (TDI), Propylene Glycols, Polyols, Propylene Oxide, MMA, Butyl Glycol Ether, Acetone and Phenol.

In parallel, responsibility for offtake, resale and sourcing of a number of existing SABIC fuel products globally (Benzene, MTBE, gasoline blending components and EU cracker feedstocks) will transfer from SABIC to ATC. Sales of Aramco Para-Xylene will remain with ATC.

A number of marketing and sales transfer exclusions currently apply, and there are therefore no changes planned to the following:

  – Aramco: excess production of Olefins.
  – ARLANXEO: portfolio products (rubber and elastomer).
Motiva: portfolio products (cyclohexane, propylene and ethylene).
  – S-Oil: responsibility for domestic marketing and sales in Korea.

About the commercial and supply chain activity transfers and changes

Responsibility for the commercial aspects of liquid bulk marine shipping services will be consolidated under ATC (including chemicals and feedstock), while responsibility for the shipping of all solid products and customer product delivery will be consolidated under SABIC.

About Aramco

Aramco is a global integrated energy and chemicals company driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, sustainable and useful, promoting stability and long-term growth around the world. www.aramco.com

About SABIC

SABIC is a global diversified chemicals company, headquartered in Riyadh, Saudi Arabia. It manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals.

SABIC supports its customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation and clean energy. Production in 2020 was 60.8 million metric tons.

The company has more than 32,000 employees worldwide and operates in around 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 9,946 global patent filings, and has significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South Asia and North Asia.

https://www.euro-petrole.com/aramco-and-sabic-announce-plans-to-realign-marketing-and-sales-commercial-and-supply-chain-activities-to-drive-efficiency-and-add-customer-value-n-i-22172

April 29, 2021

BASF Posts Strong Results

BASF with strong start to 2021 business year

Sales growth of 16% to €19.4 billion
EBIT before special items increases 42% to €2.3 billion
2021 outlook for EBIT before special items raised to between €5.0 billion and €5.8 billion (previously: between €4.1 billion and €5.0 billion)

“We were able to carry over the tailwinds from the strong fourth quarter of 2020 into the first quarter of 2021,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF, expressing one of the core messages to shareholders at this year’s virtual Annual Shareholders’ Meeting. “BASF had a strong start to the year 2021.”

BASF increased sales by €2.6 billion compared with the first quarter of 2020 to €19.4 billion. This was mainly due to higher prices and volume growth. Compared with the same quarter of the prior year, income from operations (EBIT) before special items rose by 42 percent to €2.3 billion. This was primarily attributable to considerably higher earnings contributions from the Materials and Chemicals segments. The Surface Technologies segment also recorded considerable earnings growth thanks to the recovery in automotive production. All regions contributed to the considerable increase in the BASF Group’s earnings in the first quarter of 2021.

EBIT rose by €855 million compared with the first quarter of 2020 to €2.3 billion. Income from operations before depreciation, amortization and special items (EBITDA before special items) increased by €602 million to €3.2 billion and EBITDA rose by €748 million to €3.2 billion in the same period.

Earnings development in BASF’s segments in the first quarter of 2021

Compared with the first quarter of 2020, sales in the Chemicals segment rose considerably by 16 percent to €2.7 billion. Both divisions posted higher sales, primarily due to significantly higher price levels. Sales volumes increased significantly as well. EBIT before special items amounted to €558 million. It rose considerably compared with the first quarter of 2020 in both divisions, especially in the Petrochemicals division. Earnings development in both divisions was driven by higher margins as a result of a recovery in demand, an improvement in income from equity-accounted companies, and lower fixed costs.

In the Materials segment, sales rose by 20 percent to €3.4 billion, considerably higher than in the prior-year quarter. The sales increase was mainly attributable to significantly higher prices and volumes. EBIT before special items rose considerably to €672 million. This was mainly driven by a significantly higher earnings contribution from the Monomers division due to improved isocyanate margins on the back of higher prices.

Sales of €2.1 billion in the Industrial Solutions segment were at the level of the prior-year quarter. Slightly higher sales in the Dispersions & Pigments division were offset by a slight decrease in the Performance Chemicals division. At €266 million, EBIT before special items was slightly below the prior-year quarter. Considerably higher earnings in the Dispersions & Pigments division were unable to completely offset the significantly lower earnings contribution from the Performance Chemicals division.

Sales in the Surface Technologies segment rose by 37 percent compared with the first quarter of 2020 to €5.9 billion. This increase was largely attributable to higher price levels in the Catalysts division as a result of higher precious metal prices. Significantly higher volumes in both divisions also contributed to the development of sales. EBIT before special items rose considerably compared with the first quarter of 2020 to €360 million. This was largely driven by volume growth in both divisions. The positive development in earnings was supported by lower fixed costs, especially in the Catalysts division.

Sales in the Nutrition & Care segment declined slightly in both divisions and were down overall by 3 percent compared with the prior-year quarter. The development of sales primarily reﬂected negative currency effects, mainly relating to the U.S. dollar. EBIT before special items decreased considerably compared with the prior-year quarter. The decline in earnings impacted both divisions and primarily reﬂected lower margins as a result of lower sales.

Sales in the Agricultural Solutions segment rose slightly by 1 percent compared with the first quarter of 2020 to €2.8 billion. Volumes were above the prior-year quarter in all regions. Higher price levels also contributed to sales growth. Significantly negative currency effects had an offsetting impact. At €807 million, EBIT before special items was on a level with the first quarter of 2020. Strong volume growth and lower fixed costs compensated for the negative currency effects.

Sales in Other amounted to €783 million, up by 12 percent compared with the first quarter of 2020. This was primarily the result of considerable sales growth in commodity trading. EBIT before special items declined considerably to minus €560 million. This was mainly due to higher additions to provisions for variable compensation components as a result of the strong first quarter of 2021.

Proposed dividend of €3.30 per share

The Board of Executive Directors and the Supervisory Board propose to the Annual Shareholders’ Meeting of BASF SE a dividend of €3.30 per share for the 2020 business year. This is equal to the dividend per share paid for the 2019 business year. If this dividend proposal is accepted, around €3 billion will be paid out to shareholders on May 4, 2021. Based on the year-end closing share price of €64.72, BASF shares offer a high dividend yield of 5.1 percent. “We want the BASF dividend to remain attractive for you in the future as well,” said Brudermüller at the virtual Annual Shareholders’ Meeting.

BASF Group outlook for 2021

Early economic indicators have risen over the past few months, signaling a stronger recovery in macroeconomic activity than BASF previously assumed. However, the renewed rise in infection rates in many countries and ongoing restrictions on economic activity mean that the economic situation is still extremely fragile. In addition, disruptions to global supply chains could temporarily impact industry growth. Against this background, the assumptions presented in the BASF Report 2020 for growth in global gross domestic product and industrial and chemical production have been raised moderately. Expectations for oil prices have also been revised.

The assessment of the global economic environment in 2021 has been adjusted as follows (previous forecast from the BASF Report 2020 in parentheses):

Growth in gross domestic product: 5.0% (4.3%)
Growth in industrial production: 5.0% (4.4%)
Growth in chemical production: 5.0% (4.4%)
Average euro/dollar exchange rate of $1.18 per euro (unchanged)
Average annual oil price (Brent crude) of $60 per barrel ($50 per barrel)

Based on the development of sales and earnings in the first quarter of 2021, the stronger-than-expected recovery of the global economy and much higher raw materials prices than planned, the forecast for the BASF Group presented in the BASF Report 2020 was revised as follows (previous forecast from the BASF Report 2020 in parentheses):

Sales growth to between €68 billion and €71 billion (between €61 billion and €64 billion)
EBIT before special items of between €5.0 billion and €5.8 billion (between €4.1 billion and €5.0 billion)
Return on capital employed (ROCE) of between 9.2% and 11.0% (between 8.0% and 9.2%)
Increase in Accelerator sales to between €19.0 billion and €20.0 billion (between €18.0 billion and €19.0 billion)
Stabilization of CO₂ emissions at between 20.5 million metric tons and 21.5 million metric tons (unchanged)

The market environment continues to be dominated by a high level of uncertainty. Risks could arise if restrictions on macroeconomic activity continue for longer than expected as a result of measures to fight the coronavirus pandemic. Opportunities could arise from a faster vaccination rate and a more rapid recovery of the economy as a whole, as well as a continuation of the positive margin trend.

Further information about the business development of the BASF Group in the first quarter of 2021 can be found in the quarterly statement published today at basf.com/quarterlystatement.

https://www.basf.com/global/en/media/news-releases/2021/04/p-21-184.html

April 29, 2021

BASF Posts Strong Results

BASF with strong start to 2021 business year

Sales growth of 16% to €19.4 billion
EBIT before special items increases 42% to €2.3 billion
2021 outlook for EBIT before special items raised to between €5.0 billion and €5.8 billion (previously: between €4.1 billion and €5.0 billion)