Eni's first-half petrochemicals production up 24%

21 September 2007 12:13  [Source: ICIS news]

LONDON (ICIS news)--Eni reported a 24% surge in petrochemicals production during the first half of 2007 to 4.4m tonnes, as the Italian firm added new capacity and the benefited year on year from the effect of shutdowns at its facilities in 2006, it said on Friday.

 

Petrochemicals sales increased by 5% during the period to 2.8m tonnes driven by olefins, the Italian energy major said in its interim report.

 

There was higher product availability after the purchase of the Porto Torres plant from Syndial and due to lower sales in second quarter of 2006, which were hit by a shutdown at the Priolo cracker.

 

However, excluding the Syndial purchase, elastomer sales dropped 3.1% due to lower sales of styrene-butadiene rubber (SBR), thermoplastics and ethylene propylene rubber (EPR).

 

The average plant utilisation rate increased from 77.4% to 81.5% during the first half, while nominal production capacity was up 18%.

 

Around 46% of total production was directed at Eni’s own production cycle, while oil-based feedstock from the company’s refining and marketing division provided 22% of requirements - compared to 12% in first half 2006. This was due to effects of an accident at the Priolo refinery.

 

Prices of Eni’s petrochemicals products increased significantly year on year, rising an average of 8%.

 

Prices of styrenes were up 16.8%, intermediates rose 12.6%, aromatics prices were 9.2% higher, while elastomers recorded price hikes of 8.5%.

 

Elsewhere, olefins prices were up 5.6% and polyethylene prices were 5.2% higher in the first half of 2007.

 

Eni’s interim report follows strong-second quarter results, where adjusted operating profits rose to €67m ($94m) from €5m due to higher margins and recovery from the Priolo accident.

 

Eni Petrochemicals (000’s tonnes)

 

Product Availability	2006	2007	Change	% Ch.
Basic Petrochemicals	2,132	2,803	671	31.5%
Styrene & Elastomers	787	837	50	6.4%
Polyethylene	635	771	136	21.4%
Total petchems	3,554	4,411	857	24.1%
Consumption of monomers	(1,313)	(2,042)	(729)	55.5%
Purchases and Changes in Inventories	439	443	4	0.9%
Total Product Availability	2,680	2,812	132	4.9%
Sales
Basic Petrochemicals	1,420	1,510	90	6.3%
Styrene & Elastomers	515	544	29	5.6%
Polyethylene	745	758	13	1.7%
Total Petchems	2,680	2,812	132	4.9%

($1 = €0.71)

By: Mark Watts
+44 20 8652 3214

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