Versalis

Key performance indicators

2011

2012

2013

(a)	Before elimination of intragroup sales.

Employees injury frequency rate

(No. of accidents per million of worked hours)

1.47

0.76

0.76

Contractors injury frequency rate

4.60

1.67

0.30

Net sales from operations ^(a)

(€ million)

6,491

6,418

5,859

Intermediates

2,987

3,050

2,709

Polymers

3,299

3,188

2,933

Other sales

205

180

217

Operating profit

(424)

(681)

(725)

Adjusted operating profit

(273)

(483)

(386)

Adjusted net profit

(206)

(395)

(338)

Capital expenditure

216

172

314

Production

(ktonnes)

6,245

6,090

5,817

Sales of petrochemical products

4,040

3,953

3,785

Average plant utilization rate

(%)

65.3

66.7

65.3

Employees at year end

(number)

5,804

5,668

5,708

Direct GHG emissions

(mmtonnes CO₂eq)

4.12

3.69

3.66

NMVOC (Non-Methan Volatile Organic Compound) emissions

(ktonnes)

4.18

4.40

3.93

SO_x emissions (sulphur oxide)

(ktonnes SO₂eq)

3.17

2.19

1.53

NO_x emissions (nitrogen oxide)

(ktonnes NO₂eq)

4.14

3.43

3.29

Recycled/reused water

(%)

81.9

81.6

86.2

Performance of the year

In 2013, contractors injury frequency rate continued to follow a positive trend (down by 81.9% from 2012). Employees injury frequency rate remained unchanged.
In 2013 emissions of greenhouse gas and other emissions in the atmosphere improved from 2012 following the interruption of production at the Porto Torres site in the conversion phase. Further reductions were registered, particularly at the Mantova site for NO_x, and NMVOC as well as at the Dunkerque site for SO_x and NMVOC. Recycled/reused water rate improved, up to 86.2%.
In 2013 adjusted net loss amounting €338 million declined by €57 million from 2012, due to a sharp decrease of cracker margins reported in the first half of 2012.
Sales of petrochemical products were 3,785 ktonnes, down by 168 ktonnes or 4.2% from 2012, due to declining in consumptions.
Chemical production volumes were 5,817 ktonnes, decreasing by 273 ktonnes or 4.5% from 2012, due to declining demand in all businesses. The steepest decline was reported in elastomers and polyethylene.
In 2013 overall expenditure in R&D amounted to approximately €39 million in line with the previous year. 10 patent applications were filed, one of which jointly with E&P.

Business development and sustainability initiatives

As part of the expansion strategy in bioplastic sector and diversification from the base chemistry, Versalis signed strategic partnerships with major operators in the field of biotechnology and rubber:
- with Genomatica, for the establishment of a technology joint venture for bio-based butadiene production from non-food biomass. The resulting process will be licensed across Europe, Asia and Africa by the newly-created joint venture. Versalis will invest over $20 million in the development of process technologies and aims to be the first to license the process and build commercial plants;
- with Pirelli, a Memorandum of Understanding for joint research project for the use of guayule-based natural rubber in tyre production;
- with Yulex Corporation, an agricultural-based biomaterials company, for a project of guayule-based biorubber production and a launch of industrial production complex in Southern Europe. The partnership will cover the entire manufacturing chain. Versalis will manufacture materials for various applications, with a final goal of the optimization of the productive process in the tyre industry;
- with South Korean company Lotte Chemical, Versalis established a 50:50 joint venture, while with Malaysian company Petronas, Versalis signed a shareholders agreement. The agreements concern the development of joint production of styrene and elastomers, as part of the expansion process in the growing South-East Asian markets;
- with Neville Venture, Versalis signed an agreement of strategic partnership for the production of hydrocarbon resins at the Priolo plant and finalized a licence agreement related to the resins production for various applications such as adhesives, inks, coatings and rubber;
- with Elevance Renewable Sciences Inc., a United States chemical company, specialized in production of chemicals from vegetable oils, with a significant value added, Versalis signed a Memorandum of Understanding (MoU) for establishing a strategic partnership, in order to jointly develop and scale a new technology for a production from vegetable oils, aiming at developing and scaling of new catalysts. The market applications of the future production will be specialties with a significant added value such as personal care products, detergents and cleaners, bio-lubricants and oilfield chemicals.
In the field of Green Chemistry, Versalis continued with the requalification of the hub of Porto Torres, in order to replace the traditional activities of the site with activities characterised by significant perspectives of future growth, by realizing the products with an elevated biodegradability and/or produced from row materials obtained from renewable sources. In 2013, Versalis completed the initiatives of restructuration and reorganization of the distribution network and storage at the Matrìca plant.
In February 2014, Versalis reached an important agreement on the project of transformation and relaunch of the Porto Marghera site to redesign production facilities and regain competitiveness. Versalis expects to invest €200 million in Porto Marghera focused on the optimisation and reorganisation of cracker utilities, with significant energy savings, and on the new initiative of green chemistry.
In 2013, as part of the Product Stewardship, Versalis realized a specific database called Athos (Advanced Tool for the Handling Of Substances) which collects all the information necessary for the safe management, for employees and for the environment, of chemical products processed and utilized at Versalis sites.