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Filed Under (News) by Wael Al-Lahou on September-6-2020

KUWAIT, September 6, 2020 — The EQUATE Group today announced its third internationally patented invention – an innovative ‘Mobile Non-Destructive Testing Inspection’ robot that will increase safety, efficiency and quality during maintenance of its facilities.

The robotic solution, successfully patented through the United States Patent & Trademark Office, was invented by a team of EQUATE engineers that included Soud Al-Deweesh, Yousef Al-Haddad, Abdulrahman Al-Mutawaa, Yousef Safar and Abdullah Al-Ruwayeh, in collaboration with the Kuwait Foundation for the Advancement of Sciences (KFAS) and the Sabah Al-Ahmad Center for Giftedness and Creativity (SACGC).

The invention demonstrates EQUATE’s commitment to innovation, and a continuous drive to promote an environment of technological platform for human capital advancement. The new robot enables new levels of access to confined locations during maintenance inspections without human intervention, this means uncompromising safety and efficiency standards across every element of the business.

Nawaf Al-Khaledi, Vice President for Technical Services at EQUATE Group, said: “EQUATE has always encouraged innovation to effectively improve as a global organization. The invention is a measurable improvement in the use of effective technology to support and advance maintenance. This robotic solution will not only keep employees safe, but also improve productivity levels, cost and time efficiencies for our business.

Nawaf added: “On behalf of everyone in the EQUATE Group, I extend our congratulations on the new invention to the team of engineers and every member who played a role in this success.”

EQUATE’s commitment to innovation has been recognized on multiple occasions, including additional internationally patented inventions by EQUATE colleagues Suhaim Al-Hajeri in 2017, and Nabeel Al-Kandari in 2019. The achievements align with Kuwait’s Global Innovation Index – an international framework followed by the country to improve its innovation landscape, and the Kuwait Vision 2035 presented by His Highness the Amir of Kuwait, Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah.

 

About EQUATE Group

The EQUATE Group is a global producer of petrochemicals and the world’s second-largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, ethylene glycol (EG), polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society.



Filed Under (News) by Wael Al-Lahou on August-31-2020

Kuwait, August 31, 2020 – The EQUATE Group, a global producer of petrochemicals and the second largest producer of ethylene glycol in the world, today announced its second quarter (Q2) 2020 earnings, reporting $159 million in EBITDA – a 31% decrease from $231 million in Q2 2019, and $693 million in revenue, a 16% decrease from $822 million in Q2 2019. Net income after tax stood at $27 million in Q2 2020, a 79% decrease from $126 million in the same period last year.

Despite unpredictable global challenges EQUATE’s facilities around the world continued to operate safely and maintain production rates. The company remains the leading low-cost producer with 100% sellout of all its products globally. This includes EQUATE’s US Gulf Coast plant production, which began operating in October 2019, and is already at 15% above nameplate capacity.

In order to effectively manage debt liability, in Q2 EQUATE completed a $1.6 billion dual tranche issuance and secured $300 million with local banks for a tenor of three years to re-finance $1.9 billion in bank loans.

Commenting on the results, Dr. Ramesh Ramachandran, CEO and President of the EQUATE Group, said: “Despite significant global headwinds, EQUATE EBITDA margins are above 29% of sales due to cost control and our market-leading position across the globe. The company has a well-balanced debt maturity profile, reducing costs and providing stability amidst current market conditions.”

ABOUT THE EQUATE GROUP

The EQUATE Group is a global producer of petrochemicals and the world’s second largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, EG, polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society. Visit www.equate.com.

Disclaimer

This earnings announcement (the Announcement) is for information only. The announcement is based on unaudited financial information of EQUATE Petrochemical Co. K.S.C.C. and The Kuwait Olefins Co. K.S.C.C. (together with their consolidated subsidiaries, the EQUATE Group) which is subject to change without notice and the accuracy thereof is not guaranteed. The information in the Announcement does not intend to contain all material information concerning the financial status of the EQUATE Group. We do not make any representation regarding, and assume no responsibility or liability (however arising and regardless of nomenclature) for, the accuracy or completeness of, or any errors or omissions in, any information contained in the Announcement.

Historical and current performance data are not necessarily indicative of future performance. Information contained in this Announcement may refer to forward-looking statements. The views in the Announcement are based on current assumptions which are subject to various risks and may change over time, as such we make no representations in respect of the correctness, accuracy, and/or completeness of such assumptions. Further, no assurance can be given that future events will occur, and/or that projections (if any) will be achieved. Past performance is not a reliable indication of future performance. Actual results may differ materially from those projected. The Announcement shall not be considered, or in any way construed, as an offering of securities.

 



Filed Under (News) by Wael Al-Lahou on August-11-2020

OYSTER CREEK, TX – The EQUATE Group has added a new global award to its list of accomplishments, as the MEGlobal BookraMEG Oyster Creek Project has been named an Award of Merit winner in the Power/Industrial category of the ENR Best Project Awards of 2020. The world-scale 750,000 metric-ton-per-annum monoethylene (MEG) glycol and di-ethylene glycol facility (DEG) was constructed in Oyster Creek, Texas ahead of schedule, below budget and with an excellent safety record. It was the first time the EQUATE Group constructed a new EG facility in the United States.

EQUATE CEO-elect and Sr. Vice President Naser Al-Dousari credited the project team and ownership for working together to build a world class facility in a region that provides access to plentiful feedstocks and global markets.

“We are truly humbled by this global honor,” he said. “This project demonstrated what can be accomplished when you bring together global petrochemical leadership with a dedicated expert project team. We thank everyone who played a part in delivering the BookraMEG project to EQUATE’s portfolio and strengthening our ability to reach customers around the world.”

The project was co-submitted for award by MEGlobal, Worley (general contractor) and Fluor (construction contractor) and was one of 30 selected from a record number of entries. The submissions were judged by an international panel of industry experts.

“The panel looked at projects in many markets and examined safety performance, innovations, challenges, and design and construction quality – with a special emphasis on the diversity of global project teams and their collaboration,” said Engineering News-Record editor Scott Blair in a news release. “They also considered how the project benefits the local community and/or the construction industry.”

The winners of ENR’s Global Best Project Awards will be celebrated at a virtual ceremony in September.

About EQUATE Group:

The EQUATE Group is a global producer of petrochemicals and the world’s second-largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, ethylene glycol (EG), polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society.



Filed Under (News) by Wael Al-Lahou on July-30-2020

OYSTER CREEK, TX The EQUATE Group is proud to announce that the MEGlobal BookraMEG Oyster Creek Project has been named the 2020 Best Project in the Industrial/Energy category by ENR Texas & Louisiana. The project – nicknamed “BookraMEG” (meaning “future MEG”) – is a world-scale 750,000 metric-ton-per-annum monoethylene (MEG) glycol and di-ethylene glycol facility (DEG) built in Oyster Creek, TX as part of EQUATE’s subsidiary, MEGlobal. In addition to being completed ahead of schedule, below budget and with an excellent safety record, it was the first time the EQUATE Group constructed a new EG facility in the United States.

“During a period when there was an extraordinary number of construction projects in the US Gulf Coast, MEGlobal was able to capitalize on the expertise of its shareholders and the collaboration of its contract partners,” said Dr. Ramesh Ramachandran, CEO of EQUATE. “Dow’s world class engineering and procurement support coupled with the active participation of the global engineering work force of EQUATE enabled us to select the best work practices across the world. We will forever be grateful to this project team that delivered a world scale plant safely and ahead of schedule”

The project was co-submitted for award by MEGlobal, Worley (general contractor) and Fluor (construction contractor) and was one of 18 selected from more than 130 submissions.

This was an outstanding project in every sense and we are incredibly proud to be recognized for the teamwork, safety commitment and operational excellence demonstrated by the entire organization,” said Clarence Stadlwieser, MEGlobal Project Director.

The project was judged on its safety, international teamwork, ability to overcome challenges, innovation, complexity, contribution to the industry/community, construction quality and craftsmanship, and functionality of design and aesthetic quality.

Jason Kraynek, Fluor’s senior VP Sales – Energy & Chemicals, said safety was the first priority of the project.

MEGlobal, Worley, and Fluor were fully aligned that safety was the overriding project objective and nothing would compromise this attitude. As other project contractors were brought on board, they were aligned with this objective and a key part of contractor selection was the contractor’s past safety record. The entire project senior management team continuously emphasized focus on safety, both in design and execution of construction,” he said. As a result, the Total Recordable Incident Rate (TRIR) was TRIR of 0.054.

Stephen Hillier, Worley’s President added, “It was no small feat, but working together, we were able to complete this world-scale facility eight months faster than the industry average. The success of the project is testament to the rigor and dedication of the team always collaborating towards a common goal. Over the course of the project, we achieved continuous safe work, minimized rework and met project requirements. I’m grateful to MEGlobal for the trust they had in Worley and Fluor to partner with them and accelerate construction in a safe manner.”

The winners of ENR’s National Best Project Awards will be celebrated at a ceremony in Houston on Oct. 23, 2020.

– end –

About EQUATE Group:

The EQUATE Group is a global producer of petrochemicals and the world’s second-largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, ethylene glycol (EG), polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society.

About MEGlobal

MEGlobal is a global leader in the manufacture and marketing of ethylene glycol (EG). With a worldwide network, MEGlobal markets its products throughout Asia, the Americas, Europe and the Middle East. MEGlobal embraces the principles of Responsible Care®, focusing on the safety of employees, neighbors, communities and the environment in every aspect of its operations. As a subsidiary of EQUATE Petrochemical Company (EQUATE), MEGlobal is part of the EQUATE Group which is the world’s second largest producer of EG. Visit www.meglobal.biz for more information.



Filed Under (News) by Wael Al-Lahou on May-4-2020

Kuwait, May 4, 2020 — The EQUATE Group, a global producer of petrochemicals and the second largest producer of Ethylene Glycol in the world, today announced its Q1 2020 unaudited earnings, reporting $250 million in EBITDA – a 15% decrease from $294 million in Q1 2019, and $729 million in revenue, an 18% decrease from $889 million in Q1 2019. Net income after tax stood at $97 million in Q1 2020, a 47% decrease from $183 million in the same period last year.

EQUATE’s facilities around the world continued to operate safely despite several external challenges, notably the global COVID-19 pandemic and huge swings in oil prices. The average price of ethylene glycol (EG) in Q1 was $473/MT compared to $625/MT in Q1 of 2019. Average prices of Polyethylene (PE) in Q1 2020 were $828/MT compared to $1,044/MT in Q1 2019. The significant headwinds on pricing were offset primarily by the volume increase from the new low-cost EG facility on the US Gulf Coast.

Commenting on the results, Dr. Ramesh Ramachandran, President and CEO of the EQUATE Group, said: “The margin compression seen due to the lower naphtha prices and COVID-19-related demand destruction is expected to last through Q2.  These low prices have seen reduced production at methanol to olefins (MTO) and coal to olefins (CTO) based facilities.  The decrease in supply due to lower capacity utilization at (MTO) and (CTO) facilities coupled with demand pick up post COVID-19 should improve margins by Q3/Q4.”

ABOUT THE EQUATE GROUP

The EQUATE Group is a global producer of petrochemicals and the world’s second largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, EG, polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society. Visit www.equate.com.

Disclaimer

This earnings announcement (the Announcement) is for information only. The announcement is based on unaudited financial information of EQUATE Petrochemical Co. K.S.C.C. and The Kuwait Olefins Co. K.S.C.C. (together with their consolidated subsidiaries, the EQUATE Group) which is subject to change without notice and the accuracy thereof is not guaranteed. The information in the Announcement does not intend to contain all material information concerning the financial status of the EQUATE Group. We do not make any representation regarding, and assume no responsibility or liability (however arising and regardless of nomenclature) for, the accuracy or completeness of, or any errors or omissions in, any information contained in the Announcement.

Historical and current performance data are not necessarily indicative of future performance. Information contained in this Announcement may refer to forward-looking statements. The views in the Announcement are based on current assumptions which are subject to various risks and may change over time, as such we make no representations in respect of the correctness, accuracy, and/or completeness of such assumptions. Further, no assurance can be given that future events will occur, and/or that projections (if any) will be achieved. Past performance is not a reliable indication of future performance. Actual results may differ materially from those projected. The Announcement shall not be considered, or in any way construed, as an offering of securities.



Filed Under (News) by Wael Al-Lahou on April-3-2020

KUWAIT, April 2, 2020 — The EQUATE Group, a global producer of petrochemicals and the second largest producer of Ethylene Glycol in the world announced its Q4 2019 and full-year this week. EQUATE reported $335 million in EBITDA, a 22% decrease from $427 million in Q4 2018, and $825 million in revenue, a 22% decrease from $1,069 million in Q4.  Net income after tax stood at $186 million in Q4 2019, a 36% decrease from $292 million in the same period last year.

Commenting on the results, Dr. Ramesh Ramachandran, CEO and President of the EQUATE Group, said: “Global headwinds in commodity markets in 2019 negatively impacted results, compared to 2018. However, our global footprint with ethane-based ethylene provides us with a highly competitive cost position to withstand the current market conditions.

“In addition, the start-up of our new 750,000-metric ton ethylene glycol facility in Oyster Creek, TX ahead of schedule and within budget, was a testimony to the ability of EQUATERS to deliver and exceed expectations. Shipping of volume to customers from the new facility began in November.”

ABOUT THE EQUATE GROUP

The EQUATE Group is a global producer of petrochemicals and the world’s second largest producer of ethylene glycol (EG). The EQUATE Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, EG, polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The EQUATE Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society. Visit www.equate.com

Disclaimer

This earnings announcement (the Announcement) is for information only. The announcement is based on unaudited financial information of EQUATE Petrochemical Co. K.S.C.C. and The Kuwait Olefins Co. K.S.C.C. (together with their consolidated subsidiaries, the EQUATE Group) which is subject to change without notice and the accuracy thereof is not guaranteed. The information in the Announcement does not intend to contain all material information concerning the financial status of the EQUATE Group. We do not make any representation regarding, and assume no responsibility or liability (however arising and regardless of nomenclature) for, the accuracy or completeness of, or any errors or omissions in, any information contained in the Announcement.

Historical and current performance data are not necessarily indicative of future performance. Information contained in this Announcement may refer to forward-looking statements. The views in the Announcement are based on current assumptions which are subject to various risks and may change over time, as such we make no representations in respect of the correctness, accuracy, and/or completeness of such assumptions. Further, no assurance can be given that future events will occur, and/or that projections (if any) will be achieved. Past performance is not a reliable indication of future performance. Actual results may differ materially from those projected. The Announcement shall not be considered, or in any way construed, as an offering of securities.