BP launches share buyback after Q3 earnings double

MOSCOW (MRC) -- BP launched a share buyback scheme in a sign of resurgent confidence in the oil and gas industry after announcing a doubling in third quarter earnings, said the Financial Times.

The UK group reported underlying profits on a replacement cost basis — the measure watched most closely by the market — of USD1.87bn, compared with USD933m in the same period last year. This was much better than the USD1.58bn consensus forecast by analysts, according to RBC Capital Markets.

Brent crude, the international benchmark, has climbed above USD60 per barrel in recent days for the first time since 2015, increasing momentum behind recovery from the deep downturn of the past three years.

BP said it was able to cover its organic capital expenditure and dividend in the first nine months of this year at an oil price of USD49 per barrel — reflecting deep cost cuts made since the 2014 oil market crash and highlighting the industry’s resurgent profitability.

This has given BP confidence to resume a share buyback programme to offset the dilutive impact of its scrip dividend programme, under which investors can choose to receive their payouts in shares rather than cash.

Oil and gas production averaged 3.6m barrels of oil equivalent a day in the third quarter, up 14 per cent from a year ago. BP has seen its biggest surge of production for years during 2017 after starting operations from several new projects. This is helping rebuild its production base after years of retrenchment since the costly Deepwater Horizon oil spill in the Gulf of Mexico.
MRC

MOSCOW (MRC) -- SUEZ broke ground on a new laboratory in Tomball, Texas, north of Houston, which is expected to open mid-2018, said Hydrocarbonprocessing.

In addition to continuing the research and development (R&D) of specialty chemicals for the industrial segment, the new facility will expand to include further process innovation in the oil and gas industry, focusing on global upstream and downstream applications.

The new laboratory also will provide industrial water, oil, microbiological, deposit and metallurgical failure testing to support SUEZ’s customers. In addition, the site will have an advanced technical training center for engineers and scientists—both internal and customer-oriented.

The facility design is modular—allowing for rapid and efficient lab adaptation to changing priorities and customer-specific projects. Currently designed for more than 80 researchers and support staff, additional support facilities have been engineered in place at the design phase, allowing for efficient and cost-effective future expansion.

For the oil and gas industry, customized experimental simulation capabilities that closely mimic the field environment are being added and upgraded. New research and application development efforts will continue in process and water chemistry for oil and gas production, transport, refining and petrochemicals, emphasizing all unit operation support, failure and root-cause analyses. It also will allow for expert services and application technology as well as a new emphasis on sensors, monitoring solutions and digital domain to further advance our process-focused solutions.
MRC

MOSCOW (MRC) --The retail price of petrol and the wholesale price of diesel in South Africa will increase from Wednesday due to a weakening of the rand against the dollar, as per Reuters.

The price of petrol will rise by 4 cents to 14.05 rand per liter in the commercial hub of Gauteng province, while that of diesel will go up by 23 cents to 12.35 rand.
MRC

MOSCOW (MRC) — KBR, Inc. announced it has entered into an Engineering agreement for the residue hydroprocessing unit at the Jordan Petroleum Refinery (JPRC) Expansion Project, as per Hydrocarbonprocessing.

This award follows an earlier decision for KBR as selected licensor for its proprietary Veba Combi Cracking (VCC) technology. KBR will provide the basic design package for the unit using its proprietary VCC slurry phase hydrocracking technology. This unique technology is capable of processing a wide range of feedstocks and enables production of fuels that meet environmental specifications without further upgrading.

The VCC technology will be implemented at JPRC's refinery in Jordan and will be the core of the refinery's expansion plans to increase production to 120,000 bpd.

KBR's portfolio of refining technologies enables refiners to process a wide variety of crudes, including heavy opportunity crudes, while retaining the flexibility to adjust the fuel mix and quality to meet ever changing market demands. KBR's experience as a technology developer and licensor, along with comprehensive studies and proven project delivery capabilities, has resulted in KBR licensing, designing or constructing more than 60 greenfield refineries and well over 1,000 refining units of every type and size around the world.

Revenue associated with this project will be booked into backlog of unfilled orders for KBR's Technology and Consulting Business Segment in the Q4 2017.
MRC

MOSCOW (MRC) -- Solvay completed the acquisition of European Carbon Fiber GmbH, a German producer of high-quality "precursor" for large-tow (50K) polyacrylonitrile (PAN) carbon fibers. With this acquisition, Solvay is building the foundations to lead the adoption of composites in automotive applications, to serve select industrial markets, and to support the potential adoption of large-tow fibers in aerospace, said the producer on its site.

"The strategic acquisition of ECF enables Solvay to develop a portfolio of large-tow carbon fibers to complement our existing range of pitch and PAN aerospace grade carbon fibers. This comprehensive portfolio will place Solvay as a key supplier to the aerospace, automotive and industrial markets going forward. Thanks to this acquisition Solvay will leverage its polymers and materials science competencies to drive breakthrough innovation in large-tow carbon fibers," said Carmelo Lo Faro, President of Solvay’s Composite Materials Global Business Unit (GBU).

Vertical integration into large-tow carbon fiber technology will position Solvay to ensure cost effective long-term security of supply to its customers.

As MRC informed before, in early July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

Inovyn was formed on 1 July 2015 as a jv between Ineos and SolVin, a subsidiary of Solvay. Solvay and Ineos signaled their decision to end their chlorvinyls jv in March this year.

Solvay is a multi-specialty chemical company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers in diverse global end markets. Its products and solutions are used in planes, cars, smart and medical devices, batteries, in mineral and oil extraction, among many other applications promoting sustainability. Its lightweighting materials enhance cleaner mobility, its formulations optimize the use of resources and its performance chemicals improve air and water quality. Solvay is headquartered in Brussels with around 27,000 employees in 58 countries. Net sales were EUR10.9 billion in 2016, with 90% from activities where Solvay ranks among the world’s top 3 leaders.
MRC