EQUATE reports 47% lower net income in Q1-2020 compared to Q1-2019

Net income of EQUATE after tax stood at $97mn in Q1-2020

Dr Ramesh Ramachandran, president and CEO of EQUATE Group.
Dr Ramesh Ramachandran, president and CEO of EQUATE Group.

EQUATE Group announced its Q1-2020 unaudited earnings, reporting $250mn in EBITDA – a 15% decrease from $294mn in Q1-2019, and $729mn in revenue, an 18% decrease from $889mn in Q1-2019. Net income after tax stood at $97mn in Q1-2020, a 47% decrease from $183mn in the same period last year.

EQUATE’s facilities around the world continued to operate safely despite several external challenges, notably the global Covid-19 pandemic and huge swings in oil prices. The average price of ethylene glycol (EG) in Q1 was $473/MT compared to $625/MT in Q1-2019. Average prices of polyethylene (PE) in Q1-2020 were $828/MT compared to $1,044/MT in Q1-2019. The significant headwinds on pricing were offset primarily by the volume increase from the new low-cost EG facility on the US Gulf Coast.

Commenting on the results, Dr Ramesh Ramachandran, president and CEO of EQUATE Group, said: “The margin compression seen due to the lower naphtha prices and Covid-19-related demand destruction is expected to last through Q2. These low prices have seen reduced production at methanol-to-olefins (MTO) and coal-to-olefins (CTO) based facilities.  The decrease in supply due to lower capacity utilisation at MTO and CTO facilities coupled with demand pick up post Covid-19 should improve margins by Q3/Q4.”

For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.

For all the latest refining and petrochemical news from the Middle East countries, follow us on Twitter and LinkedIn, like us on Facebook.

You may also like

Fluor to provide PMC services for Advanced Global Investment Company’s PDH and polypropylene complex in Saudi Arabia
Fluor will perform project management consultant services for the front-end engineering design, detailed engineering, procurement and construction phases of the project
ZPC’s mega-cracker Zhoushan plant achieves rapid start-up using TechnipFMC’s proprietary technology
In addition to the ethylene cracker technology, TechnipFMC provided key proprietary technology components including a Heat Integrated Rectifier System, Ripple Trays and Wet Air Oxidation process
Axens’ ParamaX Technology Suite selected by China’s CNOOC Huizhou Petrochemical Company
The ParamaX Technology Suite is a combination of top-of-the-line processes aimed at the production of high-purity para-Xylene and other aromatic molecules
ICIS Petrochemical Index plunges to November 2003 level
Aromatics prices fell steeply and quickly in April as the falling value of naphtha worked its way through the regional markets