Indorama Ventures PCL will list and commence trading on February 5. It is the first company to list on the Thai bourse this year, with a market capitalization at its initial public offering (IPO) price of over THB44.00 billion (approx. USD1.33 billion). The company will be in the Industrials Group, Petrochemical & Chemicals Sector, using “IVL” as its trading symbol, and comes from restructuring shareholdings of the business group.
“This listing of IVL supports SET’s strategy in 2010 to encourage large companies to list. SET aims at increasing its market capitalization by THB100 billion (approx. USD3.02 billion) from new listings this year,” revealed SET Chief Marketing Officer, Issuer & Listing Vichate Tantiwanich.
IVL is the holding company of domestic and international firms involved in integrated petrochemical products. These companies have 13 production facilities in five countries worldwide and manufacture and/or distribute polyester fiber and yarn, with highest production capacity in the country, and polyethylene terephthalate (“PET”), with the world’s second largest production capacity.
IVL has a total paid-up registered capital of THB4.33 billion (approx. USD130.74 million), with a par value of THB1.00 each, consisting of 3,352 million existing common shares and 583 million capital increase shares to exchange with shares held by Indorama Polymers PCL (IRP)’s retail investors at 1 IRP share for 1.4150 IVL share. At its IPO on January 25-27, 2010, IVL offered 400 million shares and 60 million Green shoe option shares, or a total of 460 million shares, to the general public at THB10.20 per share. The funds raised will be used for debt repayment and general operations, including as working capital. Bualuang Securities PCL was its financial advisor and underwriter.
The IPO price of THB10.20 per share came from book-building process among institutional investors. IVL’s dividend payment policy is to pay out no less than 30% of profit after taxes and legal reserves.
For more information about Indorama Ventures PCL, please see the company’s prospectus at the Securities and Exchange Commission (SEC) at www.sec.or.th and for general information at www.indoramaventures.com, and www.set.or.th.
Sunday, February 7, 2010
Friday, February 5, 2010
Fitch: APAC Oil & Gas Credit Quality To Remain Broadly Stable
Fitch Ratings has said today, in its "Asia-Pacific Oil & Gas: Credit Outlook 2010" report, that the overall credit outlook for the sector is broadly stable, although the outlook for some refiners remains negative.
"Most exploration & production (E&P) and integrated companies have significant headroom at their rating levels," says Steve Durose, head of Fitch's Asia-Pacific Energy & Utilities team. "Major investments to boost reserves and production, either organically or through acquisitions, are therefore not expected to exert any significant downward pressure on their ratings," adds Mr. Durose.
Whilst upstream oil businesses' cash flows can be unpredictable due to their dependence on volatile international oil prices, Fitch rates through the economic cycle and therefore does not upgrade during periods of high oil prices and downgrade when prices fall. Fitch expects that 2010's oil prices will benefit from inflationary expectations and the significant amount of liquidity being injected into the global financial markets. Therefore, the agency broadly expects operating cash flows to increase for upstream and integrated oil companies. However, Fitch does not expect balance sheets to strengthen significantly as any additional cash generated is likely to be spent on investment.
"On the other hand, downstream refiners will generally continue to face industry-wide capacity surplus, constraining utilisation and margins," adds Mr. Durose. Furthermore, the creditworthiness of some downstream Asia-Pacific oil and gas companies continues to be constrained by the obligation to supply refined products at prices which are subject to political influence rather than economically cost-reflective. If crude prices rise significantly above current levels for a sustained period, this risk will become more acute.
The ratings of many of the region's oil and gas companies are supported by their close legal, operational and strategic ties with respective government owners. Fitch does not expect the implied or actual government support for any of these companies to weaken in 2010.
"Most exploration & production (E&P) and integrated companies have significant headroom at their rating levels," says Steve Durose, head of Fitch's Asia-Pacific Energy & Utilities team. "Major investments to boost reserves and production, either organically or through acquisitions, are therefore not expected to exert any significant downward pressure on their ratings," adds Mr. Durose.
Whilst upstream oil businesses' cash flows can be unpredictable due to their dependence on volatile international oil prices, Fitch rates through the economic cycle and therefore does not upgrade during periods of high oil prices and downgrade when prices fall. Fitch expects that 2010's oil prices will benefit from inflationary expectations and the significant amount of liquidity being injected into the global financial markets. Therefore, the agency broadly expects operating cash flows to increase for upstream and integrated oil companies. However, Fitch does not expect balance sheets to strengthen significantly as any additional cash generated is likely to be spent on investment.
"On the other hand, downstream refiners will generally continue to face industry-wide capacity surplus, constraining utilisation and margins," adds Mr. Durose. Furthermore, the creditworthiness of some downstream Asia-Pacific oil and gas companies continues to be constrained by the obligation to supply refined products at prices which are subject to political influence rather than economically cost-reflective. If crude prices rise significantly above current levels for a sustained period, this risk will become more acute.
The ratings of many of the region's oil and gas companies are supported by their close legal, operational and strategic ties with respective government owners. Fitch does not expect the implied or actual government support for any of these companies to weaken in 2010.
Saturday, January 30, 2010
RAINBOW CNG AND THE FLY II DDF SYSTEM
Over the past year, Rainbow CNG has been assiduously testing a DDF system that would enable to optimize the performance of Diesel engines without invasion.
Our engineer, Mr. Attilio Guidetti, has been instrumental in developing the electronics with which this system can run.
The Diesel Dual fuel System allows an amount of gas to be injected into the engine through the air intake manifold. This improves the rate at which the engine burns fuel, and this translates into a better performance and/or a saving of fuel.
The DDF can be used with either CNG or LPG gas. Using the CNG gas obviously has a better environmental impact.
Starting in February 2009, Rainbow CNG together with Rainbow Fuel Energy Solutions Inc. first tested the system on some of the Jeepneys crowding the streets of Metro Manila. The Jeepneys with Isuzu C240 engine were found to be running 30% smoother and with noticeably improved engine performance. The production of black engine exhaust smoke was significantly reduced.
The testing has continued over a variety of vehicles in Thailand, from pick ups to cars to minivans. The system was tested successfully on Mercedes MD140 2.9 Vip Van finding that the range of fuel saving with CNG went from 45 % to 48%. and pick up Mitsubishi Strada 2.8 D, finding that the range of fuel saving with LPG went from 30 % to 35%.
Together with Engine Expert Enterprise of Malaysia, a successful test was also carried out on a truck Nissan lorry CD45, 20 ton, finding that the overall saving on Diesel consumption was of more than 40%.
THE CONVERTED NISSAN LORRY ON ROAD TEST
The great advantage of the DDF system is that it allows the vehicle operator the flexibility of using two fuels, can gain both economically and environmentally from this and can revert completely to diesel, which is a bonus in terms of the resale value of the vehicle.
The above graph depicts the flexibility of the system. The configuration can be easily adapted to the customer’s needs and driving style. The customer can decide at which level of RPM he wishes to inject gas into the system and get increased power or savings.
The second graph shows the increase of the torque and consequently the increase in power of the diesel engine in gas configuration.
Our engineer, Mr. Attilio Guidetti, has been instrumental in developing the electronics with which this system can run.
The Diesel Dual fuel System allows an amount of gas to be injected into the engine through the air intake manifold. This improves the rate at which the engine burns fuel, and this translates into a better performance and/or a saving of fuel.
The DDF can be used with either CNG or LPG gas. Using the CNG gas obviously has a better environmental impact.
Starting in February 2009, Rainbow CNG together with Rainbow Fuel Energy Solutions Inc. first tested the system on some of the Jeepneys crowding the streets of Metro Manila. The Jeepneys with Isuzu C240 engine were found to be running 30% smoother and with noticeably improved engine performance. The production of black engine exhaust smoke was significantly reduced.
The testing has continued over a variety of vehicles in Thailand, from pick ups to cars to minivans. The system was tested successfully on Mercedes MD140 2.9 Vip Van finding that the range of fuel saving with CNG went from 45 % to 48%. and pick up Mitsubishi Strada 2.8 D, finding that the range of fuel saving with LPG went from 30 % to 35%.
Together with Engine Expert Enterprise of Malaysia, a successful test was also carried out on a truck Nissan lorry CD45, 20 ton, finding that the overall saving on Diesel consumption was of more than 40%.
THE CONVERTED NISSAN LORRY ON ROAD TEST
The great advantage of the DDF system is that it allows the vehicle operator the flexibility of using two fuels, can gain both economically and environmentally from this and can revert completely to diesel, which is a bonus in terms of the resale value of the vehicle.
The above graph depicts the flexibility of the system. The configuration can be easily adapted to the customer’s needs and driving style. The customer can decide at which level of RPM he wishes to inject gas into the system and get increased power or savings.
The second graph shows the increase of the torque and consequently the increase in power of the diesel engine in gas configuration.
PTT Chemical and GE sign gas turbine service agreement
PTT Chemical Public Company Limited, Thailand’s largest chemical producer and a regional leader in the petrochemical industry, has signed a service agreement with GE (NYSE: GE) in Singapore to ensure the long-term reliability of nine GE gas turbines at PTT Chemical’s site in Map Ta Phut Industrial Estate, Rayong Province, Thailand.
The 13-year Contractual Service Agreement (CSA) worth US$46.1 million or approximately Baht 1,521 million covers the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.
Veerasak Kositpaisal, President and CEO of PTT Chemical said, “Through this agreement, GE guarantees the continuing reliability and efficiency of the gas turbines, which improves our efficiency and security as well as enables us to maintain our petrochemical production schedule. The CSA also helps us to effectively manage our maintenance budget over the life of the agreement.”
“While we have received equipment orders from PTT Chemical in the past, this marks our first CSA with the company,” said Kovit Kantapasara., GE Energy Country Executive for Thailand and Indochina. “We hope to build on this agreement to provide similar services to other companies in the PTT Group.” Overall, GE has supplied more than 20 gas turbines to the petrochemical business of the PTT Group.
PTT Chemical is a diversified and integrated chemical producer offering a wide variety of petrochemical and chemical products. Its product portfolio includes ethylene and propylene, collectively called olefins, downstream derivatives such as Polymers and Ethylene Oxide and Ethylene Glycol, and oleochemicals. The company’s gas-based plants have a total annual capacity of 2,888,000 tons of olefins, making it Thailand’s largest olefins producer and the second largest in all of Asia.
GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. GE Energy is one of the world’s leading suppliers of power generation and energy delivery technologies providing integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
The 13-year Contractual Service Agreement (CSA) worth US$46.1 million or approximately Baht 1,521 million covers the supply of parts, repairs and field services for planned and unplanned outages for gas turbine-generators and accessory equipment, along with performance guarantees.
Veerasak Kositpaisal, President and CEO of PTT Chemical said, “Through this agreement, GE guarantees the continuing reliability and efficiency of the gas turbines, which improves our efficiency and security as well as enables us to maintain our petrochemical production schedule. The CSA also helps us to effectively manage our maintenance budget over the life of the agreement.”
“While we have received equipment orders from PTT Chemical in the past, this marks our first CSA with the company,” said Kovit Kantapasara., GE Energy Country Executive for Thailand and Indochina. “We hope to build on this agreement to provide similar services to other companies in the PTT Group.” Overall, GE has supplied more than 20 gas turbines to the petrochemical business of the PTT Group.
PTT Chemical is a diversified and integrated chemical producer offering a wide variety of petrochemical and chemical products. Its product portfolio includes ethylene and propylene, collectively called olefins, downstream derivatives such as Polymers and Ethylene Oxide and Ethylene Glycol, and oleochemicals. The company’s gas-based plants have a total annual capacity of 2,888,000 tons of olefins, making it Thailand’s largest olefins producer and the second largest in all of Asia.
GE is a diversified global infrastructure, finance and media company that's built to meet essential world needs. GE Energy is one of the world’s leading suppliers of power generation and energy delivery technologies providing integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
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