Milan, Italy – Eni polymers unit Versalis has reported a 15% year-on-year decline in revenues for 2019, to €2,201 million, on 4.6% lower volumes sold and a 10.8% decrease in average prices.
Production fell by 4.4%, with elastomers, polyethylene and styrenics down by 7.0%, 3.9% and 3.8% respectively, the Italian group’s 2019 financial report also shows.
Within its elastomers business, Versalis linked a 4.9% decrease of sold volumes to: nitrile rubbers (down by 10.3%), thermoplastic rubbers (down by 14.8%) and butadiene rubber (down by 3.7%).
These negative effects were only partly offset by increases of 1.7% in volume sales of styrene-butadiene rubbers and 1% in lattices, said Eni’s report issued 2 April.
Overall, polymer production decreased by 7% to 2,250 kilotonnes (kt) compared to 2018, on lower production of elastomers (-7%), polyethylene (-3.9%) and styrenics (-3.8%).
For 2019, the Eni chemicals business reported an adjusted operating loss of €268 million.
This was linked to a slowdown in demand, including from the automotive sector and pressure on margins from lower US feedstock costs.
“These drivers determined unprofitable spreads between product prices and feedstock costs mainly for polyethylene and a profitability decline at styrenics and elastomers,” stated Eni.