22 September 2008 15:35 [Source: ICIS news]
LONDON (ICIS news)--"Astounding" growth in the fortunes of Russia's players stands out in an analysis of the Central and East European and Russian chemicals sector, ICIS Chemical Business (ICB) said on Monday.
Strong economic growth, buoyed by oil and gas revenues, has allowed companies these companies to enjoy growth figures that old-world firms can only dream of.
The star performer in the regional analysis, which complements the ICIS Top 100 listing of the world's leading chemical players, is Sibur.
Its petrochemical division enjoyed 12% sales growth to $4.85bn in 2007, pushing it into the Top 100 at number 73, ICB said.
Other star performers in Russia include Nizhnekamskneftekhim, which earlier this year announced it would invest Rb6.7bn ($183m, €265m) this year in expanding and upgrading its polystyrene (PS), polyethylene (PE) and rubber production facilities.
When, and if, this and other Russian petrochemical projects will ever come to fruition is questionable, ICB said. Players have previously announced ambitious projects, which seldom get off the ground.
Getting through the necessary bureaucratic hurdles and obtaining finance seem to prevent many projects succeeding. The result is that the industry there is still in desperate need of modernisation, relying, as it does, on fairly ancient production facilities.
Escalating tension between Russia and the West will probably make the climate for investment there even less inviting. This may create new difficulties for Russian companies wishing to raise finance or partner with Western firms for engineering and technology.
Top 10 Russian/Central & Eastern Europe chemical companies ($m)
|Company name||Sales '07||% Change to '06*||Operating profit '07||% Change to '06*||Net profit '07||% Change to '06*|
|PKN Orlen (chems/petchems)||6,741||1.2||537||46.6||-||-|
|MOL (petchems division)||2,300||12.0||236||75.0||-||-|
|Nizhnekamskneftekhim||2,400||24.0||287 (profit from sales)||20.0||1,670||23.0|
|Note: OMV is excluded because it includes petrochemicals with refining and marketing *In local currencies |
sources: company data, Accenture, CIREC
($1 = Rb25.28/€1 = Rb36.65)
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