OMV (Vienna, Austria) says its European petrochemical net margins in the first quarter of 2021 rose sequentially compared with the fourth quarter, reversing momentum after four previous periods of declining margins. The company’s quarterly polyolefin margins have also soared sequentially and year on year (YOY).
In a trading update ahead of the scheduled release of its first-quarter financial results on 29 April, the company says its ethylene margin rose 2% sequentially to €406/metric ton ($482/metric ton), although it declined 21% YOY, while its propylene margin increased 5% sequentially to €360/metric ton but fell 10% YOY.
OMV’s polyethylene margin in Europe, meanwhile, soared 31% sequentially to €548/metric ton in the first quarter, and more than doubled YOY. Its polypropylene margin rose 33% sequentially in the first quarter to €608/metric ton, and was also up 35% on the prior-year period.
Total polyolefin sales volumes for the first quarter were 1.53 million metric tons (MMt), down slightly from 1.56 MMt in the fourth quarter, but up from 1.41 MMt a year earlier.
OMV, which owns a 75% equity stake in Borealis, calculates the petchem net margins based on West European contract prices, with naphtha as the feedstock.
by Mark Thomas
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