Page 38 - Plastics News July 2020
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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