Page 38 - Plastics News July 2020
P. 38

IOC posts Q4 net loss of Rs 5,185 cr                    PolyOne  acquires  Clariant  Masterbatch,
                                                                  renames Avient
           ndian Oil Corporation (IOC) reported a net loss of Rs
          I5,185 crore in the quarter ended March 31, 2020,          olyOne Corporation a leading global provider of
          down from a net profit of Rs 6,099 crore in the year-ago   Pspecialized  polymer  materials,  services  and
          period, due to large inventory losses and lower refining   sustainable solutions, has completed its purchase of
          margins. Net profit for FY20 ended at Rs 1,313 crore,    the  color  masterbatch  businesses  of  Clariant  and
          compared to a net profit of Rs 16,894 crore in FY19. The   Clariant Chemicals India Ltd. PolyOne also announced
                                                                  that it has changed its name and will now be called
          state-owned oil marketing company (OMC) recorded an
                                                                  Avient. "We
          inventory loss of Rs 14,692 crore in Q4 FY20, as against
                                                                  p r o u d l y
          inventory gains of Rs 1,787 crore in the corresponding
          period in FY19. IOC had to write-down inventories as a   w e l c o m e
                                                                  our  newest
          result  of  a  sharp  decline  in  the  price  of  crude  oil
                                                                  associates
                                                                  and  valued
                                                                  customers
                                                                  f  r  o  m
                                                                  C l a r i a n t
                                                                  Masterbatc
                                                                  h. They are
                                                                  joining  us
                                                                  on Day 1 of
                                                                  t h i s   n e w
                                                                  era  for  our
                                                                  company,
                                                                  which as of
                                                                  today  will
                                                                  be  named  Avient,"  said  Robert  M.  Patterson,
                                                                  Chairman,  President  and  Chief  Executive  Officer,
                                                                  Avient. The entry into the agreement to acquire the
                                                                  Clariant  Masterbatch  business  was  originally
                                                                  announced  in  December  2019.  The  Clariant
                                                                  Masterbatch  business  includes  46  manufacturing
                                                                  operations and technology centers in 29 countries and
                                                                  approximately 3,500 employees, who will join Avient's
          precipitated  by  a  price  was  between  oil-producing
                                                                  Color, Additives and Inks segment. The combined net
          countries and reduced demand due to the COVID-19
                                                                  purchase price is $1.44 billion, representing a 10.8x
          pandemic. The gross refining margin, or the difference
                                                                  multiple of 2019 adjusted EBITDA, or 7.5x including
          between the cost of crude and total value of petroleum
                                                                  anticipated  synergies."With  this  acquisition,  Avient
          products from refining, fell to $0.08 per barrel in FY20
                                                                  now  expects  over  85%  of  adjusted  EBITDA  to  be
          from $5.41 in the previous fiscal. IOC Chairman Sanjeev
                                                                  generated  from  specialty  applications,"  said  Mr.
          Singh said that demand for petroleum products fell by
                                                                  Patterson. "This is up from less than 10% when our
          as much as 70 per cent during the lockdown to prevent   specialty journey began over a decade ago. While we
          the spread of COVID-19 and had recovered to about 80-   honor the legacies of our past organizations, under our
          85 per cent of pre-COVID levels. On the recent spike in   new name Avient, we come together and look to the
          the prices of petrol and diesel, Singh said, “Whatever   future as a world-class sustainable organization." In
          price rise we are seeing is because of the international   conjunction with its rebranding and new name, the
          movement of the product prices,” noting that it was     company's  ticker  symbol  will  change  from  "POL"  to
          likely  that  prices  may  move  up  further.  OMCs  have   "AVNT," effective at the start of trading on July 13,
          hiked the price of petrol and diesel by Rs 8.5 and Rs   2020. As of that date, the "POL" trading symbol will no
          10.5, respectively, in the past 18 days.                longer be active.



            July  2020                                      38                                      Plastics News
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