Nynas, Cosan Earnings Up


Nynas posted an increase in operational cash flow for its naphthenic unit, and Cosan Lubrificantes posted an increase in net revenue in the first quarter, each compared to a year earlier.


Nynas naphthenic business unit, which supplies mostly base oils, reported earnings before interest, taxes, depreciation and amortization of 383 million Swedish krona (U.S. $46.4 million) for the quarter ending March 31 – including 262 million krona in income compensation for a discontinued tolling agreement – up 397 percent from 77 million krona in 2015s first quarter.

Net sales for Nynas naphthenic business unit fell to 1.6 billion Swedish krona for the quarter ending March 31, down 38.5 percent from 2.6 billion krona, which the company said was a consequence of lower oil price levels.

The company said European sales during the first quarter of 2016 were above the same period in 2015. That was driven by strong sales growth in the Benelux countries (Belgium, Netherlands and Luxembourg), France and Germany, where sales were gained from substitution of [API] Group I products, Nynas said in its first quarter interim report.

Sales for the company in the first quarter in the Americas continued to increase significantly compared to the same period in 2015. The increase was driven by strong sales in Mexico and the U.S., Nynas stated, noting that sales in Brazil continued a negative trend due to the economic recession in that South American country.

In Asia, the Middle East and Africa, naphthenic sales were below the same period in 2015. This was mainly due to a reduction in indirect sales, and a slow-down in demand in China, with direct sales continuing to increase, especially in India and Southeast Asia, Nynas stated. Sales in Turkey continued to set new records.

Nynas operates a plant in Nynashamn, Sweden, with 7,600 barrels per day of naphthenic base oil production capacity. The companys Harburg, Germany, plant has capacity to make 2,800 b/d of naphthenic oil and 3,300 b/d of paraffinic API Group I.

Neste Oil and Petroleos de Venezuela S.A. (PdVSA) are co-owners of Nynas, which has a long-term marketing agreement to sell naphthenic base oils produced by the Refineria Isla refinery operated by PdVSA in Emmastad, Curacao. That plant has 3,700 b/d of naphthenic capacity and 5,000 b/d of paraffinic Group I capacity.


Cosans net revenue from the sale of lubricants and other goods and services and the resale of base oils increased 26.1 percent to 479.1 million Brazilian reais (U.S. $136.3 million) in 2016s first quarter. The results were driven by sales volume growth of 8.1 percent despite the decline in industrial activity that continued to impact demand for lubricants in Brazil, the company stated in its earnings release.

Lubricant sales volumes reached 77,000 cubic meters for the first quarter, up 8.5 percent.

Sao Paulo, Brazil-based Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.

Novvi, a joint venture between Cosan and U.S. research firm Amyris, develops renewable synthetic base oil from sugarcane.

Related Topics

Business    Earnings