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Research and Markets: Philippines Petrochemicals Report Q4 2011.

DUBLIN -- Research and Markets (http://www.researchandmarkets.com/research/9401be/philippines_petroc) has announced the addition of the "Philippines Petrochemicals Report Q4 2011" report to their offering.

BMI's latest Philippines Petrochemicals Report expects a weakening external environment for output in H211, which will undermine the contribution of a strong first half to annual growth.

In May 2011 the value of production index (VaPI) for plastic products was up 19.2% y-o-y, while the volume of production index (VoPI) was up 11.7%. The VaPI and VoPI for total chemicals was up 16.9% and 15.2% respectively. H111 results from Petron indicate that petrochemicals output growth was led by exports, with sales of petrochemicals mostly to overseas markets, rising to 1.7mn barrels.

In H111 leading oil industry producer Petron Corporation reported a 104% y-o-y rise in net income to PHP6.0bn, despite some profit softening in Q211 due to slower market prices and the weather-induced slump in demand. Comparative figures have been lower though than last year at PHP1.6bn in Q211 and PHP1.9bn in Q111. Growth came after a 16.9% y-o-y rise in revenues to PHP134.9bn, assisted by a 54% rise in oil export sales and higher petrochemicals margins. Sales of petrochemicals such as propylene, benzene, toulene and mixed xylene, mostly to overseas markets, rose to 1.7mn barrels.

A key risk to this outlook would be weaker-than-expected demand for Philippine exports from earthquake-stricken Japan, which makes up about 18.0% of total export share. BMI do not exclude the possibility that the eventual growth outturn may be worse in H211 than H111, especially since BMI believe the Japanese recovery will be slow and long, with downside risks dominating. BMI highlight the downside risks stemming from their already cautious view because of the effect of the Middle East turmoil on private consumption in the Philippines, as weaker-than-expected remittance inflows and export demand from developed economies may lead to slower economic expansion.

Companies Mentioned:

* BASF Philippines

* JG Summit Petrochemicals Corp

* PNOC Petrochemical Development

* Petron Corporation

* Tosoh

For more information visit http://www.researchandmarkets.com/research/9401be/philippines_petroc
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Comment:Research and Markets: Philippines Petrochemicals Report Q4 2011.
Publication:Business Wire
Article Type:Report
Geographic Code:9PHIL
Date:Oct 11, 2011
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