ExxonMobil profit halves on weak oil prices, chemicals margins

MOSCOW (MRC) -- Exxon Mobil Corp's third-quarter profit nearly halved, hit by lower oil prices and weaker margins in refining and chemicals, with its three major business reporting lower year-over-year profit, reported Reuters.

Earnings fell to USD3.17 billion, or 75 cents per share, in the quarter, from USD6.24 billion, or USD1.46 per share, a year earlier, the company reported.

It beat analysts' recently reduced expectations for earnings of 67 cents per share. The company last month warned results would be hurt by weaker chemicals and lower oil prices, prompting analysts to reduce estimates from 86 cents per share.

"Maybe expectations were a little bit weak going in, but I think overall it is probably slightly negative relative to expectation," said Anish Kapadia, director of energy at London-based Palissy Advisors.

Exxon's results mirrored weaker earnings at rivals BP Plc and Royal Dutch Shell, which earlier this week indicated they might delay dividend increases or a buyback program because of low prices. Chevron Corp on Friday reported a 36% drop in third-quarter profit. Prices have fallen for oil and gas as US shale producers keep pumping more oil amid slowing global consumption growth.

Exxon has been investing in major projects to boost production at a time when investors have been pressing oil companies to cut spending and increase returns to shareholders. It spent USD7.7 billion in the third quarter, up from USD6.6 billion the same period the year prior and higher than what analysts expected.

Exxon's cash flow, a closely watched metric by investors, fell 24% from a year ago. Investors have been looking for the company to improve cash flow to cover its dividends and capital expenses.

Despite rising output from US shale, profits in Exxon's oil and gas production unit were down 49% to USD2.17 billion on weaker prices, its lowest earnings in two years.

Its refining business earned USD1.23 billion, down 25% from last year, on lower margins for its gasoline and diesel.

Its chemicals business was down 66% year-over-year. Results have been weaker because of global overcapacity in plastics and higher project expenses.

Exxon's oil equivalent production rose about 3% to 3.89 million barrels per day, the fourth quarter in a row of year-over year gains.

Its production in the Permian Basin, the top U.S. shale field, rose 7% from the second quarter to around 293,000 barrels of oil equivalent daily.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant (UK), which has a capacity of more than 800,000 t/y.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,589,580 tonnes in the first nine months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased.

PBF Energy Inc. is a petroleum refiner and supplier of unbranded transportation fuels, heating oils, lubricants, petrochemical feedstocks, and other petroleum products. Headquartered in Parsippany, New Jersey, the company's refineries include facilities in Chalmette, Louisiana, Toledo, Ohio, Port of Paulsboro in Gibbstown, New Jersey, the Delaware City Refinery in Delaware City, and the former ExxonMobil refinery in Torrance, California. PBF produces a range of products including gasoline, ultra-low-sulfur diesel (ULSD), heating oil, jet fuel, lubricants, petrochemicals and asphalt
MRC

MOSCOW (MRC) -- A fire broke out at Palmer Plastics Inc's plastics recycling plant in Palmer Township, PA, US. No injuries were recorded, as per Plasticsnews.

The fire originated from the plastics extruder that spread up through the extruder's exhaust system into the plant's roof assembly. The fire was originally in a machine that breaks down plastic into smaller plastic pellets. But by the time firefighters were able to extinguish the flames in the machine, the fire had crept up to the warehouse roof.

No one was injured at the warehouse, a plastic recycling facility, and William Penn Highway was shut down until about 9:40 p.m.

As MRC informed earlier, four people have been killed and three seriously injured in a fire at an oil and gas processing plant on the outskirts of Mumbai run by India’s Oil and Natural Gas Corp. The Uran plant processes nearly half of the crude oil that ONGC sells to refineries and 12% of its natural gas sales. The plant is also a major supplier of cooking gas.
MRC

MOSCOW (MRC) - Imports of injection moulding PET chips from Lithuania by Neo Group grew by 29% in ten months of this year and amounted to 36,600 tonnes, according to MRC DataScope report.

This figure was 28,400 tonnes in January-October 2018.

October imports of PET from Lithuania to Ukraine doubled compared to the same period last year and amounted to 5,200 tonnes against 2,200 tonnes, while the maximum volume of imports this year fell in September and amounted to 7,000 tonnes.

The total volume of Lithuanian PET imports to the country increased to 29% in January-October 2019 against 22% in January-October last year.

The main buyers of Lithuanian bottled PET were Coca-Cola Beverages Ukraine Limited and Retal.

Nevertheless, despite an increase in the consumption of Lithuanian material, the total import supplies of injection moulding PET chips in October decreased by 16% compared to the same period last year and by 6% compared to September of the current year.

MRC

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) into Belarus increased to 29,100 tonnes in the first nine months of this year, up 13.4% year on year, according to MRC DataScope.

According to the Statistical Committee of the Republic of Belarus, local converters slightly increased their purchasing of PVC in September 2019, overall imports totalled 3,300 tonnes, compared to 3,000 tonnes a month earlier.

Thus, imports of unmixed PVC reached 29,100 tonnes in January-September 2019 versus 25,700 tonnes a year earlier, with local windows producers accounting for a increase in demand.

Russian producers with the share of about 84% of the Belarusian market were the key suppliers of resin to Belarus over the stated period.

Producers from Ukraine and Germany with the share of 9% and 5%, respectively, were the second and third largest suppliers.

MRC

MOSCOW (MRC) -- Large quantities of Iranian general purpose polystyrene (GPPS) entered the Ukrainian GPPS market in the first half of November, therefore, supply of material was balanced with demand for it, according to ICIS-MRC Price report.

The situation was different in the Ukrainian high impact polystyrene (HIPS) market: supply of material did not cover demand for it, traders were selling stocks of Nizhnekamskneftekhim's HIPS.

The hryvnya exchange rate against the dollar continued to strengthen and put downward pressure on prices of material in the domestic market along with the falling import prices.

As reported earlier, Nizhnekamskneftekhim (NKNH, part of the TAIF group), shipped material only to two Ukrainian converters in November, said market participants. Import prices for Russian material was reduced by USD20/tonne.
MRC