03 August 2011 11:14 [Source: ICIS news]
LONDON (ICIS)--Unipetrol saw its olefin margin fall sharply to €265/tonne ($379/tonne) in July from €365/tonne in June as higher naphtha costs driven by crude prices took their toll, the Czech petrochemical producer said on Wednesday.
The company's polyolefin margin edged down month on month to €275/tonne from €286/tonne, Unipetrol added.
In July 2010, the olefin and polyolefin margins stood at €325/tonne and €317/tonne, respectively.
The monthly olefin figure was the worst for a year, but the decline was “admittedly from a very strong level”, said Prague-based investment bank Wood & Company in a note to investors.
“The weakness is due primarily to the more volatile monomer [olefin] margin, while polymer margins remain resilient for now,” an analyst at the bank, Robert Rethy, added.
“The petchems weakness is certainly bad news as Unipetrol is still dominated by this segment, which is by far its largest profit contributor and the only real support for the company's earnings recently,” Rethy said.
PKN Orlen, the Polish parent company of Unipetrol, reported on 2 August that its model petrochemical margin had declined sharply to €687/tonne in July from €807/tonne in June.
Both Unipetrol and Orlen are scheduled to report their second-quarter financial results on 5 August.
($1 = €0.70)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections