Page 46 - Plastics News November 2017

BUSINESS NEWS

Milacron reports highest quarterly Reliance Industries exits all

sales international oil and gas blocks

xecutives at Milacron Holdings Corp. are feeling more eliance Industries (RIL) has sold all its conventional
Econfident in the third quarter as the plastics machinery Roil and gas exploration blocks outside India. Among
maker reported its highest quarterly sales since going its international portfolio, Reliance Industries now
public in 2015. Sales reached nearly $315 million, an holds two shale gas assets in the US During the July-
increase of 6 percent over last year in the same period. September quarter, the company pulled out of the last
Tom Goeke, CEO of Milacron, said new orders were up 11 two oil blocks it held in Myanmar, the company said.
percent compared with last year, and year-to-date orders RIL had acquired these blocks in 2014 with a 96% stake
were up nearly 10 percent. He cited continued strength in in each of the two blocks. The remaining 4% each is
high-growth regions, such as India and China, and "a solid held by UNRD, a local company. This marks RIL’s exit
order book" for injection and extrusion product lines as from its international oil and gas exploration blocks.
reasons for the performance boost.
Among its international portfolio, RIL now holds two
shale gas assets in the US. On 6 October RIL, agreed
to sell the first of its shale gas ventures—upstream
Marcellus shale gas assets in northeastern and
central Pennsylvania in the US—for $126 million. RIL
had between 2010 and 2013, bought stakes in three
upstream oil exploration joint ventures with Chevron,
Pioneer Natural Resource, and Carrizo Oil and Gas; and
a midstream joint venture with Pioneer. (Midstream
refers to the processing, storing, transporting and
marketing of hydrocarbons).
Last fiscal, RIL exited the oil and gas block it had in
Peru where it held a 10% interest in the block. Anglo-
French oil and gas company Perenco held a 55% stake
"We are closing out the year with a positive trajectory in the block while PetroVietnam of Vietnam held
and all of our businesses are laser-focused on driving the remaining 35%. Over the last few years, RIL had
improvements to the cash cycle," Goeke told analysts. acquired 16 oil and gas assets internationally. These
The melt delivery and control systems unit, which includes included: four in Peru, three in Yemen (one producing
hot runners, process control systems, and mold bases
and components, generated third-quarter sales of $108.1
million, an increase of nearly 12 percent over $95.4 million
in the same period of 2016 after excluding favorable
effects of currency movements.
"Global sales growth continues to be driven by China and
the rest of Asia, with China order momentum continuing
throughout the quarter," said Bruce Chalmers, chief
financial officer. "From an end market perspective, sales
were primarily driven by automotive and consumer goods."
In machinery, sales for the third quarter experienced
a slight boost after declining 7 percent in the second
quarter. The machinery segment generated sales of
$175.9 million compared to $168.7 million in the year-ago and two exploratory), two each in Oman, Kurdistan
third quarter, an increase of 2.7 percent after excluding and Colombia and one each in East Timor and Australia.
favorable effects of currency movements. Geographically, RIL which had a large domestic oil and gas business
Chalmers said the machinery segment also had "significant portfolio with around 42 oil and gas blocks, now holds
growth" for the quarter from China and India. Sales were five oil and gas blocks and two coal-bed methane (CBM)
driven by the electronics and construction markets as well blocks in Madhya Pradesh, India.
as automotive, he added.

Plastics News N ovember 2017 46