Polish chemical sector sustains acidic reaction

The Polish chemical sector recorded positive annual performance across all major segments in 2012, but the growth pace decelerated visibly compared to the previous year, in line with the slowdown of country’s economy and external demand. The situation is also partly due to high base comparison, particularly in the case of exports, which neared pre-crisis levels in 2011.

The growth of sales revenues in the chemical industry also eased visibly in 2012, to 5.6% y/y, from 10.5% y/y in 2011. Although the top chemical players reported rising y/y revenues in 2012, profitability deteriorated visibly following increase in raw material, natural gas and electricity. According to market data, 17 of the top 20 chemical players recorded y/y increase of revenues in 2012. In terms of net profit, however, more than half of them reported declining annual result.

Despite the slowdown of growth in 2012 and Jan-Apr 2013, the performance of the Polish chemical sector remains above the European average, where production contracted by 1.5% y/y in 2012 and by 2.1% y/y in Q1/2013.

Figure 1 Net sales revenues of chemical companies in 2010-2012 (annual, PLN bn)

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Indonesia’s electrifying utilities industry brightens growth

The utilities industry consists of three main markets, electricity, gas and water. The electricity market proved to be the most lucrative utilities industry as it dominated 63.55% share of the market. Indonesia is the largest country in Southeast Asia; its main economic activity is agriculture, thus water utilities play an important role in agriculture production. Water consumption in the country is expected to increase to more than 356 billion cubic meters per annum by 2015.

Although water sources in Indonesia account for 21% of total water resources in Asia Pacific, lack of clean water is becoming a serious problem in Indonesia. Nearly half of the population in Indonesia lacks access to safe water and more than 70% of the 220 million person population rely on water sources that are deemed potentially contaminated. To achieve the Millennium Development Goals (MDGs), the Indonesian government needs to improve water supply and sanitation services.

For energy sources, PT Perusahaan Listrik Negara (PLN) has the sole right to produce and distribute electricity throughout Indonesia. The demand for electricity is projected to grow at more than 8% per year until 2020. Meanwhile, Indonesia has a proven natural gas reserve of 3.0 trillion cubic meters. Perusahaan Gas Negara (PGN) is the market leader in both transmission and distribution businesses in Indonesia.

 Key Findings

• Demand for electricity in Indonesia is projected to grow at a pace of more than 8% per year until      2020.
• By the end of 2011, PLN had a total installed generation capacity of 29,268 MW, an increase of 8.8% over the previous year. Remarkably, the growth rate in 2011 was the highest it has been in the last five years.
• Indonesia plans to more than triple the share of new and renewable energy to the total national primary energy mix by 2025.

Electricity Supply in Indonesia

Source: CEIC

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