Oil prices declined as petchem and gas gained in February



JUBAIL: IBRAHIM ALGHAMDI

Published — Saturday 9 March 2013

Last update 9 March 2013 3:37 am

| نسخة PDF Print News | A A

Oil and gas prices reversed the moves seen in January with Brent oil declining 4.7 percent in February 2013, while natural gas gained 11.8 percent. Petrochemical product prices continued their gains with an exception to benzene, MTBE and propylene. The TASI petrochem index declined 2 percent, underperforming the TASI all shares index which declined 0.6 percent only. This is according to a new report issued by NCB Capital.
"SABIC resumed operations at its petrochemical complex at Geleen (Netherlands) after a six day labor strike which started on Jan. 31, 2013. The company said the strike has not resulted in any financial losses", the report said.
According to the report, Sahara’s Al Waha complex was closed for 10 days due to a problem in the cooling system. The actual impact is expected to be higher than the company’s initial estimates of a loss of SR 2 million and a production loss of 10,000 mt in Q1, 2013.
Sipchem’s planned shutdowns at IMC and IDC facilities conducted during January–February 2013 are likely to lower earnings by SR 38 million in Q1.
APPC signed a MoU with Vinmar Projects Ltd. to explore expansion opportunities in the US over the next three years.
Ma’aden Phosphate Co. (JV between Maaden and SABIC) resumed operations at the DAP facility in mid-February 2013 after the three weeks maintenance shutdown.
Labor strike lowered production at SABIC’s petrochemical complex at Geleen (Netherlands) during Jan. 31–Feb. 5, 2013. The company said that the shutdown is not expected to have any financial impact. This complex has an annual production capacity of 4 million mt of various petrochemical products.
Sipchem has started the maintenance at two of its facilities – International Gas Co. (IGC) (0.3 million mtpa of carbon monoxide) and International Acetyl Co. (IAC) (0.5 million mtpa of acetic acid) — on March 2, 2013 for four weeks. The financial impact will be announced when the maintenance ends.
Sipchem’s methanol facility resumed operations on Feb. 13, 2013 after a four-week scheduled turnaround. This, coupled with a two-week planned maintenance shutdown at the butanediol plant in January 2013, is estimated to lower earnings by SR 38 million in Q1, 2013. Operational efficiency of both plants are likely to improve following the turnaround.
Sipchem refinanced SR 1.04 billion worth of commercial loans obtained by its affiliates in 2008. The new facilities have a competitive fluctuating interest rate with the first instalment payable in H2, 2013.
Operations at Sahara’s Al Waha facility were halted during Feb. 14–24, 2013 due to a technical issue at the cooling system. As per initial estimates, repair work was supposed to be completed within 7 days resulting in production loss of 10,000 mt of polypropylene in turn lowering Q1, 2013 net profit by SR 2 million. However, the shutdown was extended to 10 days.The company said it will use the inventory to fulfill contractual obligations.
APPC and Vinmar Projects Ltd. signed a Memorandum of Understanding (MOU) on Feb. 4 to jointly establish a company which seeks to explore growth opportunities in the US. The MOU is valid for three years.
Alujain’s subsidiary, National Petrochemical Industrial Co. (NATPET), extended the planned shutdown of its propylene and polypropylene plants by two weeks (previously scheduled for 22 days starting from Jan. 27, 2013) due to additional repair work. The extended duration is expected to increase the production loss from 24,000 mt to 37,824 mt of polypropylene equivalent to SR 196 million (earlier estimate of SR 125 million).
The WTI oil futures contracts for 2013 are trading at a slight premium while 2014 contracts are trading at a 1.3 percent discount to the current levels. The gold futures for all periods continue to trade in line with the spot prices. The oil future curve shifted downward when compared to last month, however the gas futures curve remained unchanged. The gold futures curve shifted downwards. The gold future contracts continue to trade broadly in line with the current spot price of near $1,576/oz.

What's happening around Saudi Arabia

RIYADH: The Ministry of Education (MoE) has allocated over 180 clinics for schools in Riyadh and directed all its departments across the Kingdom to recruit health advisers at schools with more than 100 students.Work has already started on introducing...
RIYADH: The Moroccan experience in desert tourism is largely similar to that of Saudi Arabia, which boasts of a unique diversity in culture in its different regions, Prince Sultan bin Salman, president of the Saudi Commission for Tourism and National...
JAZAN: Deputy Crown Prince Mohammed bin Salman visited the advanced field hospital of the Armed Forces in Jazan on Tuesday.He was reassured about the injured in the ongoing battle. He conveyed the greetings of Custodian of the Two Holy Mosques King S...
JEDDAH: The planned “North Thunder” military exercise is a clear message to Iran and the countries in the region it supports that any hostile intentions and actions will be firmly dealt with, an expert has said.The military drill is scheduled to be h...
RIYADH: Syrian conjoined twins will be separated at the King Abdullah Specialist Children’s Hospital at the King Abdul Aziz Medical City (KAMC) in Riyadh on Sunday.According to a KAMC spokesman, the forthcoming surgery will be the fourth and final st...
JEDDAH: Education Minister Ahmed Al-Issa has issued an order to establish a department for school security. It will be be linked organizationally to the general supervisor of school safety and security at the ministry.According to the decision, schoo...
JEDDAH: From delivering mails for Saudi Aramco to captaining Saudi Arabian Airlines’ first flight to New York, Jazza Al-Shammari’s career story is unique.“I started my career as a postman with Saudi Aramco in 1959 and continued the primary studies at...
RIYADH: A team of the King Faisal Specialist Hospital & Research Center (KFSHRC) has identified a gene responsible for cardiomyopathy.Dr. Zuhair bin Nasser Al-Hasnan, KFSHRC medical genetics consultant, said the team conducted a study on a Saudi...
JEDDAH: The Pakistan Welfare Society (PWS) organized a free medical camp and discussion on health for women at the Pakistani Consulate recently.Doctors and specialists diagnosed patients and distributed free medicines to needy patients, and arranged...
JEDDAH: Yemen Vice President and Prime Minister Khaled Bahah has thanked Saudi Arabia for standing by his country during tough times.Speaking at the World Government Summit in Dubai on Tuesday, he said: “Our GCC brothers, particularly Saudi Arabia, s...
RIYADH: Saudi Arabia joined the rest of the world in intensifying public awareness on cancer with activities spread over the week supporting the global cause that aims to save millions of lives every year by raising awareness and education about the...
RIYADH: Chairman of ACWA Power International Mohammed Abu Nayyan thanked King Mohammed VI of Morocco for personally inaugurating Morocco’s first solar power plant, Noor1, built by an international consortium led by his company.“We were extremely priv...
RIYADH: The Ministry of Health is considering imposing an asset declaration as well as an absence of interest conflict testimony on its employees as a measure in fighting corruption.Health Minister Khalid Al-Falih made the announcement at a one-day f...
DAMMAM: Abdussalam Kanniyan, chairman of the International Indian School in Dammam (IISD), has been honored with the “Person of the Year 2015” award by Vatakara NRI Forum, a community group in the Eastern Province.The award was based on his outstandi...
RIYADH: Andrej Plenkovic, the leader of the European Parliament Foreign Affairs Committee delegation, on Tuesday hailed Saudi Arabia for its yeoman services in looking after the displaced Syrians in countries such as Lebanon, Jordan and Turkey.“We fu...

Stay Connected

Facebook