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Croda 1H 2015 net profit up on operating margin
FOCUS margins. Malaysia's focus will now have to shift from basic oleochemicals to high-value oleo derivatives, from a current 1% share to a forecast 40% by 2020, F&S suggests. The key factors that may impact palm oil price are foreseen as: oil demand versus supply of palm and all vegetable oils; land supply and switching; logistics and storage; stock to usage ratio; and energy prices. The fatty oleochemical industry has undergone numerous fundamental changes over the last 30 years, which have only exacerbated over the last 5 years, making it volatile. The industry is faced with numerous opportunities, challenges and question marks that will define it over the next 10 years. Most players currently in the market are currently expanding production with at least 2-3 new players expected to enter the market shortly, spurred on by crude palm oil (CPO) tax incentives that were introduced a few years back. Raw material prices are high at the moment due to ample supplies of vegetable oils, slowing growth and lack of biodiesel support. CAGR for CPO and palm oil kernel stands at around 8-10%/y, and is likely to continue at this rate through to 2020. Original Source: Frost & Sullivan, 2015. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 8&24 Jul 2015, (Website: http://www.specialchem4cosmetics. com)
Palm oil market worth $88 bn by 2022 According to a report from Grand View Research titled 'Palm Oil Market Analysis By Derivative (Crude Palm Oil, Palm Kernel Oil, Palm Kernel Cake), By Application (Edible Oil, Cosmetics, Biodiesel, Lubricants, Surfactants) And Segment Forecasts To 2022', the global palm oil market is expected to reach $88 bn by 2022. Global demand for palm oil was 74 M tonnes in 2014 and is expected to reach 128.2 M tonnes by 2022, growing at a CAGR of 7.3% from 2014 to 2022, which is rather more optimistic than Frost & Sullivan's predictions (see previous item). Crude palm oil (CPO) was the largest palm oil derivative and accounted for >75% of total market volume in 2014. CPO is also expected to witness the highest growth of 7.5% from 2015 to 2022. The global industry is characterized by companies taking strong steps to increase their production capacity and
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abide by the environmental regulations governing palm oil production. Original Source: Grand View Research Inc, 2015. Found on Marketwired, 22 Jul 2015, (Website: http://www.marketwired.com)
COMPANY RESULTS Unilever sells more products, profits fall Unilever is slowly getting back on its feet. Sales were up 12% in 1H 2015 at €27 bn, including a positive currency impact (+10%). After adjusting for currency effects, acquisitions and divestments, sales were up 2.9% and thus increased more than expected, though the growth rate was slower than for the equivalent period a year ago when sales rose 3.7% ['Focus on Surfactants', Oct 2014]. Underlying volume growth was 1.1% while pricing was up 1.7%. A fall in sales in emerging countries, which are particularly important to Unilever (57% of business), had hit the company in 2014. Income in emerging markets was up 6% in 1H 2015 (6.6% a year ago), which the company described as 'subdued', while growth in Europe and N America was 'negligible', with N American sales falling 0.9%. Unilever had net profits down 11% in 1H 2015, from €2.99 bn to €2.66 bn. Diluted earnings per share were down 10% at €0.87. Operating profit fell 13% for the half year to €3.8 bn, though the previous year's figure did include profits from a divestment. In 1H 2015, underlying sales were up 3% for the personal care segment and up 4.5% for home care. Growth is expected to speed up in 2H 2015. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 23 Jul 2015, (Website: http:// www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2015. Original Source: Chemie Aktuell, 23 Jul 2015, (Website: http://www.maerkte-weltweit. de) (in German) © MBM Martin Brueckner Medien GmbH 2015
Reckitt Benckiser slightly increases sales forecast for 2015 Reckitt Benckiser has increased its sales forecast for 2015. It now expects sales growth (adjusted for acquisitions,
divestments and exchange rate effects) of 4-5%, rather than 4%. Operating profits are expected to show a moderate to 'nice' improvement in 2H 2015. They rose 10% in 1H to £939 M, but net profits fell 13% to £709 M, because of the loss of the contribution from the drugs business, which has since been sold. Net sales rose 1% to £4.36 bn; they were up 4% at constant exchange rates. Original Source: Chemie Aktuell, 27 Jul 2015, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2015
Croda 1H 2015 net profit up on operating margin UK speciality chemicals company Croda recorded £97.2 M net profit in 1H 2015, up by 11.2% year-on-year backed by stronger sales and healthy operating margins. Operating profit increased by 6.51% to £140.7 M, while revenues totalled £564.6 M, up 5.06% year on year. Original Source: ICIS Chemical Business, 27 Jul-9 Aug 2015, 288 (3), 6 (Website: http:// www.icis.com) © Reed Business Information Limited 2015
COMPANY NEWS Solvay expands Singapore R&I centre Solvay has inaugurated a newly expanded Oil & Gas lab in its worldclass Singapore Research & Innovation (R&I) Centre. The dedicated lab space, team and resources will enable Solvay's Novecare global business unit to internationalize its oil & gas business to serve its regional customers looking to develop in the segments of production, cementing and stimulation, especially in fast-growing countries such as China, Malaysia and Australia, among others. The new lab showcases state-of-the art equipment and will focus on leading innovation and product development projects for customers in the Asia Pacific. It will provide comprehensive solutions for cementing, stimulation and production applications, together with a dedicated team working on Enhanced Oil Recovery (EOR) September 2015
Palm oil market worth $88 bn by 2022 According to a report from Grand View Research titled 'Palm Oil Market Analysis By Derivative (Crude Palm Oil, Palm Kernel Oil, Palm Kernel Cake), By Application (Edible Oil, Cosmetics, Biodiesel, Lubricants, Surfactants) And Segment Forecasts To 2022', the global palm oil market is expected to reach $88 bn by 2022. Global demand for palm oil was 74 M tonnes in 2014 and is expected to reach 128.2 M tonnes by 2022, growing at a CAGR of 7.3% from 2014 to 2022, which is rather more optimistic than Frost & Sullivan's predictions (see previous item). Crude palm oil (CPO) was the largest palm oil derivative and accounted for >75% of total market volume in 2014. CPO is also expected to witness the highest growth of 7.5% from 2015 to 2022. The global industry is characterized by companies taking strong steps to increase their production capacity and
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abide by the environmental regulations governing palm oil production. Original Source: Grand View Research Inc, 2015. Found on Marketwired, 22 Jul 2015, (Website: http://www.marketwired.com)
COMPANY RESULTS Unilever sells more products, profits fall Unilever is slowly getting back on its feet. Sales were up 12% in 1H 2015 at €27 bn, including a positive currency impact (+10%). After adjusting for currency effects, acquisitions and divestments, sales were up 2.9% and thus increased more than expected, though the growth rate was slower than for the equivalent period a year ago when sales rose 3.7% ['Focus on Surfactants', Oct 2014]. Underlying volume growth was 1.1% while pricing was up 1.7%. A fall in sales in emerging countries, which are particularly important to Unilever (57% of business), had hit the company in 2014. Income in emerging markets was up 6% in 1H 2015 (6.6% a year ago), which the company described as 'subdued', while growth in Europe and N America was 'negligible', with N American sales falling 0.9%. Unilever had net profits down 11% in 1H 2015, from €2.99 bn to €2.66 bn. Diluted earnings per share were down 10% at €0.87. Operating profit fell 13% for the half year to €3.8 bn, though the previous year's figure did include profits from a divestment. In 1H 2015, underlying sales were up 3% for the personal care segment and up 4.5% for home care. Growth is expected to speed up in 2H 2015. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 23 Jul 2015, (Website: http:// www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2015. Original Source: Chemie Aktuell, 23 Jul 2015, (Website: http://www.maerkte-weltweit. de) (in German) © MBM Martin Brueckner Medien GmbH 2015
Reckitt Benckiser slightly increases sales forecast for 2015 Reckitt Benckiser has increased its sales forecast for 2015. It now expects sales growth (adjusted for acquisitions,
divestments and exchange rate effects) of 4-5%, rather than 4%. Operating profits are expected to show a moderate to 'nice' improvement in 2H 2015. They rose 10% in 1H to £939 M, but net profits fell 13% to £709 M, because of the loss of the contribution from the drugs business, which has since been sold. Net sales rose 1% to £4.36 bn; they were up 4% at constant exchange rates. Original Source: Chemie Aktuell, 27 Jul 2015, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2015
Croda 1H 2015 net profit up on operating margin UK speciality chemicals company Croda recorded £97.2 M net profit in 1H 2015, up by 11.2% year-on-year backed by stronger sales and healthy operating margins. Operating profit increased by 6.51% to £140.7 M, while revenues totalled £564.6 M, up 5.06% year on year. Original Source: ICIS Chemical Business, 27 Jul-9 Aug 2015, 288 (3), 6 (Website: http:// www.icis.com) © Reed Business Information Limited 2015
COMPANY NEWS Solvay expands Singapore R&I centre Solvay has inaugurated a newly expanded Oil & Gas lab in its worldclass Singapore Research & Innovation (R&I) Centre. The dedicated lab space, team and resources will enable Solvay's Novecare global business unit to internationalize its oil & gas business to serve its regional customers looking to develop in the segments of production, cementing and stimulation, especially in fast-growing countries such as China, Malaysia and Australia, among others. The new lab showcases state-of-the art equipment and will focus on leading innovation and product development projects for customers in the Asia Pacific. It will provide comprehensive solutions for cementing, stimulation and production applications, together with a dedicated team working on Enhanced Oil Recovery (EOR) September 2015