annual report 2013 - kuwaitaromatics.com paraxylene production company, kppc, is a fully owned...
TRANSCRIPT
9Index
• Message from the Kuwait Aromatics Company Chairman
• Introduction of Kuwait Aromatics Company ,TKAC
• Introduction of Kuwait Paraxylene Production Company (KPPC)
• Message from the Kuwait Paraxylene Production Company Chairman
• Kuwait Paraxylene Production Company
• Feed Stock
• B. Production
• Sales
• Kuwait Aromatics Company
• Feed Stock
• B. Production
• Sales
• Safety, health and environment
• Constant development of KARO activities
• Financial Performance ( NIAT)
• Financial information for the year ended 31st December
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11Board of Directors
Ahmad S. Al-JemazChairman
Board Member
Jehad Nasser Alhajji
Fuad A. Akbar
Deputy ChairmanMenawer Al-Mutairi
Abdullah Al-Sumaiti
Board Member
Board Member
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On behalf of KARO Board of Directors Members, I would like to present the Kuwait Aromatics Company annual financial report for the year 2013 which ended on 31st December 2013
The performance of TKAC during the elapsed year ended in December 2013 is considered the best performance ever achieved by TKAC since the end of 2009 when operation and production of KPPC and TKSC started. The performance of TKAC during the year 2013 can be summarized as follows:
Safety and Operational performance
A. Kuwait Paraxylene Production Company (KPPC)
2013 is considered the best period from day one in KPPC units meeting and exceeding All 2013 EH&S targets. During this year no violations were reported related to local and international environmental, industrial and safety standards, policies, rules and regulation. Beside this great achievement, zero recordable injury was achieved with zero days away of work caused by injury in 2013.
In 2013, KPPC achieved 839,000 MT of Para-xylene production which represents 103% of the budgeted production compared to production of 868,555 MT in 2012. Benzene production in 2013 was 279,800 MT in comparison
Message from the Chairman
Ahmad S. Al-JemazChairman
to 362,555 MT in 2012, this reduction in Benzene production was caused by the change of the unit’s operation mode for the benefit of Para-xylene production. This achievement could only be reached through the efforts made to improve the operation and Reliability of the plants and enhancing it on stream factor.
KPPC had a 14 days planned shutdown for executing small projects and essential repairs. Maintenance was completed on time successfully without safety issues.
B. The Kuwait Styrene Company (TKSC)
TKSC Operations during the year 2013 did not record any violations related to local and international criteria of environmental, industrial and safety rules and regulation. Besides that, zero recordable injury was achieved with zero days away of work caused by injury in 2013.
The company produced 507,650 MT of Styrene Monomer in the year 2013 which represented 108% of the budgeted compared to 97% achieved of 2012 budgeted quantity. This high production is considered a great achievement in comparison with 2012 production of Styrene Monomer which was 419,837 MT.
In February 2013, the Plant had a planned periodic The shutdown was successfully completed without any safety incidents.
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C. The Financial Performance of KARO
TKAC Financial Performance achieved in 2013.
A total profit of 197.704 Million$ compared with a net profit of 35.844 Million$ in 2012
KPPC made a net profit of 95.218 Million$ compared to 0.603 Million$ in 2012.
TKSC made a net profit of 103.726 Million$ in 2013 compared to 33.913 Million$ in 2012.
It is worth to mention also that the company had suffered some losses of 1.24 Million$ resulted from the non-operating cash conversion of the existing currencies.
I would like to extend to you all my sincere thanks and gratitude for all your support which gave us confidence during 2013. We look forward to the continuation of your support for the coming years which will enhance and improve the financial and operational Performance of the organization to meet the expectations of all shareholders.
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Kuwait Paraxylene Production Co. KPPCKuwait Aromatics Co. 99.97%
The Kuwait Styrene Co. (TKSC)Kuwait Aromatics Co. 57.5%Dow Chemicals 42.5%
Kuwait Aromatics Co. (KARO)PIC 40%KNPC 40%Qurain 20%
TKAC Was established to Produce aromatics product from available feed stock in kuwait. The company today is a holding company which owns production facilities at Shuaiba industrial site in Kuwait. TKAC main shareholders are Petrochemical Industries Company (PIC), 40% Kuwait National Petroleum Company (KNPC) 40% Qurain Petrochemical Industries Company (QPIC) 20% TKAC owns production facilities at the industrial site for the production of Paraxylene and Benzene and styrene monomer.
The Kuwait Aromatics Company ,TKAC
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Kuwait Paraxylene Production Company, KPPC, is a fully owned subsidiary of TKAC. KPPC plant is a world scale facility employing State of the Art available technologies during the design phase of the production units. The name plate capacity of the plant is 790 KTPA of Paraxylene, and 390 KTPA of Benzene. All Paraxylene produced at the site is exported while Benzene is consumed locally in the styrene plant.KPPC production units are well Positioned and integrated with the refineries and petrochemical plants at the shuaiba industrial site.The Plant started production in December 2009.The plant performance test was successfully completed during 2010.The Kuwait Styrene Company (TKSC)TKSC is a joint venture company between TKAC and DOW. TKAC ownership in this JV is 57.5% .TKSC styrene Plant started in August 2009.Achieved target design production of 450 KTPA of styrene monomer. The feedstock for the styrene plant is supplied from the benzene produced by KPPC and ethylene produced from Olefin II plant.
Kuwait Paraxylene Production Company (KPPC)
Paraxylene Export
Benzene Export/Import
Benzene
BT Stream
FeedstockFeedstock
Off plotsat KNPCRefineries KPPC
Aromatics
OSBL &Utilities
EthyleneCracker
EB/SMKNPCMAARefinery
ShuaibaPortAuthority
MEW
PAI
Olefins - II
Rich
EthaneFeed
POWER
SCW
LN, LPG & H2
LPN to LN Tanks @ MAB
Py-Gas
Utilities
FRNSupplemental
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On behalf of BOD Members, I would like to present to you the sixth annual financial report for 2013 which ended in 31st December 2013.
The performance of KPPC during the elapsed year is considered the best performance ever achieved by KPPC since the end of 2009 when operation and production of KPPC started.
Environment, Health and Safety performance
The year 2013 is considered the best period from day one for KPPC Aromatics Plant accomplishing all planned EH&S targets. During this year no violations were reported related to local and international environmental, industrial and safety rules and regulation. Beside that great achievement, zero recordable injury was achieved with zero days away from work caused by injury in 2013.
Production and Operation
In 2013, KPPC achieved 839,600 MT of Para-xylene production which represents 103% of the budgeted production of the Plant for 2013. Benzene production during this period had reached 279,800 MT. This high production was achieved due to enhancements made in the mode of operation of the facility which also yielded additional income in the form of Light Naphtha production which increased by 29% of the budgeted quantity. This achievement could only be realise
Message from the Chairman
Mutlaq R. Al-Azmi
through the efforts made to improve the operation of the Plant and to enhance the Reliability and on stream factor of the different units in the plant. We also have to appreciate the great support of KPC and KNPC in increasing Full Range Naphtha supply by 10% more than the contractual agreement and in improving the quality of FRN. In 2013 the Plant had a 14 days planned shutdown for executing of small projects and essential repairs.
Sales and Marketing of KPPC products
The prices and demand for Para-xylene and Benzene in 2013 were very profitable for KPPC; prices were higher than the Predicted from budget which positively impacted the income of KPPC for those two products. 2013 is considered the best financial year since commissioning and startup of the Plant despite the increase in Oil prices. The forecasted demand in 2014 is expected to be as high as in 2013 while PX prices will drop due to high volumes coming on stream from new Facilities in Asia.
Financial Performance of KPPC
The total Revenue of KPPC in 2013 was 2.867 Billion USD from the sales of all main products and co-products.
KPPC net profit reached 95.218 Million USD in comparison with alosse of (12.536 Million USD) which was recorded in 2013 budget.
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The company is looking forward for further coordination with the Owners to achieve better financial Performance and hopes to implement the proposed solutions which should enhance KPPC financial performance such as Hydrogen sales price.
Having said that, we have to extend our regards and thanks to all our Partners who provided us their trust and supported during 2013 which mode this success materialis. We are confident and counting on the continuation of this support in the coming years to enhance the financial and operational performance of KPPC to meet the expectations of the Owners and to achieve further successes.
A. Feed Stock KPPC receives Full Range Naphtha (FRN) from KNPC as Feedstock.
FRN(MT) 2011 2012 2013
Quantity 2,108,298 2,787,904 2,742,235Receive From KNPC
Kuwait Paraxylene Production Company:
2011 2012 2013
3,000,000
2,500,000
Quantity
FRN (MT)
2,000,000
1,500,000
1,000,000
500,000
0
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LIGHT NAPHTHA
NAPHTHAFEED HYDROGEN
BT STREAM C8 to XYFRAC
PYGAS
BENZENE
PARAXYLENE
AROMATICS
FUEL GAS
AromaticTank
SulfolaneFeed Tank
Sulfolane PlantInventory Tank
Tatory A7 FEED TANK
Tatory A8 FEED TANK
PX ShippingTank (2)
Benzen DayTank (2)
Heavy AROTANK
LPG
BT FRAC
C8+from
HEAVY
B.T Frac. TANK
Hydro TreatedTank
TATORAY
SRUU
PYGAS UNIT
PAREX
XYLLNEFRACTIONATION
REFO
RMAT
ESP
LITT
ER
ISOMAR
HEAVYAROMATICS
SEPARATION INXY FRAC
BTFRACTIONATION
SULFOLANEBTEXTRACTION
RECOVERPLUS/PSA
NAPHTHAPREFRAC
NAPHTHAHYDROTREAT CCR
PLATFORMING ®ENERATION
PAREX DAY TANK (2)PAREX PLANT INVENTORY STORAGETANK PAREX DESORBANT STORAGE TANK
B. Production KPPC plant is located in Kuwait’s Shuaiba Industrial Area, came on stream in 2010. KPPC main products are PX, BZ and HA. The production of the plant is 2.5 million metric tons including Co Product divided on:
2013 ProductionParaxylene (PX) 840,000Benzene (BZ) 280,000
Heavy Aromatics 38,500
By Products Light Naphtha, LPG, Hydrogen light Ends make up for the balance production approx. 1.5 million MT.
2011 2012 2013 2011 2012 2013
100,000
0 0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
200,000
300,000
500,000
400,000
600,000
700,000
800,000
900,000
1,000,000
BenzeneParaxyleneMTMT
ProductionProduction
PX Quantity Shipped (MT) in 2013To destinationsHAS Quantity Shipped (MT) in 2013To destinations
C. SalesParaxylene and Heavy Aromatics are marketed by PIC to different regions world wide on behalf of KPPC.Benzene is sold to TKSC under Benzene supply agreement between KPPC and TKSC. Under the agreement KPPC is committed to supply 325,000MT per year.By Products are sold locally to related partiesLight Naphtha KPCHydrogen KNPCLPG KPCLight Ends TKOC
Hydrogen (MT)2013 Quantity Sell toTotal 39,775 KNPC
LPG (MT)2013 Quantity Sell toTotal 135,778 KPC
Light Naptha (MT)2013 Quantity Sell toTotal 1,161,030 KPC
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A. Feed Stock Styrene Feed stock requirements of Benzene and Ethylene are met from local production and the balance of benzene is imported to meet TKSC ethylene allocation.
Benzene (MT)2013 Quantity Receive fromTotal 282,659 KPPCTotal 115,365 Purdchased
Ethylene (MT)2013 Quantity Receive fromTotal 143,231 TKOC
The Kuwait Styrene Company:
C. SalesTKSC Year-to-date sales were equal to 507,650MT or 108% of the sales volume budget.
B. ProductionThe Kuwait Styrene (TKSC) Company Located in Kuwait’s Shuaiba Industrial Area and its one of the region’s largest producers of styrene monomer, 497,208 metric tons yearly.
Styrene MonomerMT
Production
2011 2012 2013380,000
400,000
420,000
440,000
460,000
500,000
520,000
Styrene Monomer (MT)MT
Sales
2011 2012 2013
100,000
0
300,000
200,000
400,000
500,000
600,000
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1. Safety, health and environment
Kuwait Paraxylene Production (KPPC)No accident was reported for the year of 2013. • The plant operation was normal with no health violation • and maintains a clean sheet as there was no health related case relating to main power working in the plant.
The Kuwait Styrene Company (TKSC)No accident was reported for the year of 2013. • The plant operation was normal with no health violation • and maintains a clean sheet as there was no health related case relating to main power working in the plant.
2. Constant development of KARO activities:KARO through its operation facilities is constantly looking for expansion options.We commissionerd a number of value creation, yield improvement and creep project in KPPC and working to Push TKSC to consume its allocated ethylene quantities of 150.000 TPA which will be reflected on higher styrene monomer production.
10,0002013
2012
2011
0
(10,000)
20,000
30,000
40,000
50,000
60,000
MT
KaroConsolidated
KPPC TKSC KD
4. Financial information for the year ended 31st December 2013
3. Financial Performance ( NIAT)Summary Financial result
USD’000 KARO (Consolidated)
KPPC TKSC (100%)
Paid up Capital 889,680 890,154 138,789Net Asset 1,491966 1,491966 336,577