TPT March 2012

I ndustry N ews

Pipeline project

Good earnings THE Simona Group recorded growth both in terms of sales volumes and revenues over the course of the third quarter of 2011. However, the overall pace of growth has decelerated. This is attributable primarily to the bank and national debt crisis, which has been a cause for increasing concern within the markets since mid-2011. Market uncertainty, in turn, generally has an adverse effect on the propensity to invest within key customer segments, particularly the photovoltaic and solar energy industry. In total, the Group generated sales revenue of €241.2mn (prev. year: €199.7mn) in the financial year up to 30 September 2011, which was 20.8 per cent more than in the same period a year ago. In the first half of 2011, by contrast, year-on-year revenue growth had stood at 25.1 per cent. In the third quarter of 2011, Group revenue amounted to €78.9mn, compared to €70mn in the third quarter of 2010. This corresponds to an increase of 12.8 per cent. Within the area of semi-finished products, extruded and pressed sheets made of polypropylene achieved the highest level of growth. Business expanded at a less pronounced rate within the area of PVC sheets. In the piping systems division, fittings made of PE generated significant revenue growth, whereas revenue from PE pipes declined. Simona – Germany Website: www.simona.de The pipeline, to be named Great Salt Plains Pipeline, will transport production from Central and Western Oklahoma and interconnect with Parnon’s crude oil tanks located at Cushing. With right-of-way negotiations well advanced and pipe order confirmed, the line is scheduled to commission in March. In response to interest from producers with acreage in Western Oklahoma, plans are being prepared to extend the Great Salt Plains Pipeline (Phase II) further west to serve the Granite Wash and other new tight sands plays. As sufficient interest and commitment to this extension is confirmed, the second phase of the project will run concurrently with Phase I, and could commission as soon as mid-2012. Parnon Gathering Inc – USA Website: www.parnonholdings.com PARNON Gathering Inc, a wholly owned subsidiary of Parnon Holdings, Inc, has announced the construction of a crude oil pipeline in Central Oklahoma. The project includes laying approximately 109 miles of new 8" pipeline from Cherokee, Oklahoma to Cushing, Oklahoma, and is designed to move 18,000 barrels of crude oil per day, with an option to increase to 35,000 barrels per day.

40

www.read-tpt.com

M arch 2012