Solvay Profit Rise Helped by Fracking, Cheaper Raw Materials
BRUSSELS, Nov 13 (Reuters) – Belgian chemicals and plastics Solvay reported a 9.5 percent rise in third-quarter core profit on Thursday, helped by increased demand for fracking fluids from the U.S. oil and gas sector and a decline in the cost of raw materials.
Chief Executive Jean-Pierre Clamadieu said Solvay expected year-on-year growth to continue in the fourth quarter, although the final months were normally weaker as businesses closed for Christmas and sought to cut inventories by the year end.
"We are looking very carefully at the macroeconomic environment but we don't see today a significant risk to this guidance," he told a news conference. "With our market exposure we don't see any significant changes going into Q4, only the usual seasonality."
He added he also did not expect an overall negative impact from lower oil prices, which was of course positive for much of the company's operations.
"There could be theoretically some impact on our oil-related activities in North America... but first we don't see an impact as we speak and we think the impact overall will be limited," he said, adding he did not see a major slowdown of fracking activity.
Core profit, REBITDA (recurring earnings before interest, tax, depreciation and amortisation), was 458 million euros ($570.2 million), slightly above the average forecast in a Reuters poll of analysts was 452 million euros.
Solvay repeated its forecast that core profit (REBITDA) would rise by a high single-digit percentage in 2014 from a restated 1.61 billion euros in 2013.
The restatement takes into account the sale of Solvay's U.S. based sulphuric acid production unit Eco Services to private equity group CCMP Capital.
The company also announced an unchanged gross interim dividend of 1.33 euros per share.
Solvay also responded to news on Wednesday that Brazil's antitrust watchdog Cade had the proposed sale of Latin American PVC unit Solvay Indupa to Brazil's Braskem.
"Our determination to find a solution is intact. There are a couple of solutions on the table, but we will have to relaunch a full process," Chief Executive Jean-Pierre Clamadieu.
He also added he was confident of completing the sale of its European PVC operations within the coming months. (1 US dollar = 0.8033 euro)
(Reporting By Philip Blenkinsop)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension