ExxonMobil-Albemarle introduce new suite of hydroprocessing catalyst

MOSCOW (MRC) -- ExxonMobil Catalysts and Licensing LLC and Albemarle Corporation announced today a transformative hydroprocessing suite of catalyst and service solutions for the refining industry called the Galexia platform, as per Hydrocarbonprocessing.

The platform enables an improved way of doing business, ensuring customer demands are better addressed at every stage throughout the value chain. “Refiners demand not only superior products, but greater opportunities to create value and optimize their operations,” said Dan Moore, president of ExxonMobil Catalysts and Licensing LLC. “With a unique, comprehensive solutions suite in the Galexia platform, we are focused on enabling our customers to achieve greater levels of productivity amid an increasingly competitive environment."

Uniquely leveraging the technical experience, refinery operating know-how and successful track record of both companies, users are given access to state-of-the-art hydroprocessing catalysts and our vast experience in catalyst load optimization. The Galexia platform goes beyond traditional product offerings to help refiners optimize performance and efficiency by analyzing operations and identifying opportunities to extract additional value across the plant.

"The Galexia platform will generate great value as we are combining complementary strengths in years of catalyst development and application knowledge with unique refinery operation experience,” said Raphael Crawford, president of Albemarle Catalysts. “We are ready to collaborate with our customers to take advantage of the full potential of catalyst activity."

The collaboration between ExxonMobil and Albemarle builds on and strengthens their long-term relationship in specialty hydroprocessing. As a result, customers will benefit from access to combined pretreat and dewaxing solutions through a single partner that provides both refinery owner/operator and catalyst experience.

Together, the two companies developed and commercialized the Celestia and Nebula catalysts, which enhance performance and profit margins of both hydrocrackers and distillate hydrotreating units around the world. Albemarle’s STAX® technology can optimize combinations of Nebula, Celestia and MIDW™ catalysts, demonstrating unparalleled performance under the most challenging process conditions - unlocking value beyond the hydrotreating unit made possible with ExxonMobil’s operating knowledge.

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, 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 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Repsol to license petrochemical technologies

MOSCOW (MRC) -- Repsol has signed a collaboration agreement to license ethylene-vinyl acetate (EVA), ethylene butyl acrylate (EBA) copolymer and low-density polyethylene (LDPE) production technology with American engineering company Engineers & Constructors International (ECI), depository of the high-pressure technology originally developed and licensed by Imperial Chemical Industries (ICI) through its UK subsidiary, Simon Carves Engineering, Ltd., reported Hydrocarbonprocessing.

Under this agreement, Repsol is the operational partner that provides product knowledge, applications and operating support (training, technical services, operating procedures, etc.).

For Repsol, this agreement represents a milestone in positioning its Chemicals Business as a technology licensor together with a partner of recognized international prestige and a benchmark for high-pressure technology in the petrochemical industry.

With this agreement, Repsol will capitalize on the know-how developed over 40 years in both production and processing, as well as on the commercial knowledge of development of differentiated EVA/EBA copolymer and LDPE applications.

This agreement represents a differential lever to support the growth of the Chemicals Business within its strategic positioning in the EVA/EBA copolymer market.

As MRC informed earlier, Spain’s Repsol will shut down its cracker in Tarragona (Spain) for maintenance in the fourth quarter of 2019. The turnaround at this steam cracker, which produces 702,000 mt/year of ethylene and 372,000 mt/year of propylene, was pushed back from Q3 2019. The exact dates of maintenance works are not disclosed.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Repsol S.A is an integrated Spanish oil and gas company with operations in 28 countries. The bulk of its assets are located in Spain.
MRC

Univar Q3 net income slumps

MOSCOW (MRC) -- Univar Solutions Inc., a global chemical and ingredient distributor and provider of value-added services, announced its financial results for the third quarter ended September 30, 2019, said the company.

Earnings per diluted share of USD0.01, compared to USD0.35 per diluted share, in the prior year third quarter. The current quarter increase from the addition of Nexeo's earnings and better operating performance was more than offset by the impact of taxes (USD0.18), costs to integrate Nexeo ($0.07), and non-cash charges (USD0.05).

Adjusted earnings per diluted share of USD0.36 compared to $0.40 in the prior year third quarter.

Adjusted EBITDA grew 17.3 percent to USD184.2 million, and Adjusted EBITDA margin expanded 30 basis points to 7.7 percent from the prior year.

Net cash provided by operating activities increased to USD214.7 million from USD46.4 million, compared to third quarter last year, driven by lower net working capital as well as improved net working capital efficiency.

Net debt decreased USD165.4 million from the second quarter and leverage ratio of 3.9x decreased from 4.1x at June 30, 2019.

Full year outlook for Adjusted EBITDA revised to a range of USD700 million to USD725 million from the previous estimate of USD725 million to USD740 million, as increased earnings from legacy Nexeo and synergies are partially offset by further contraction of global industrial market demand for chemicals and ingredients.

Company growth from improved operating performance and the acquisition of Nexeo is being challenged by the global manufacturing slowdown, which has challenged company assumptions that industrial demand for chemicals and ingredients would be steady overall from 2018.

As MRC informed earlier, Univar Inc., a global chemical and ingredient distributor and provider of value-added services, announced its Board of Directors has approved a Certificate of Amendment of the Certificate of Incorporation of the Company, to officially change the corporate name from Univar Inc. to Univar Solutions Inc., effective September 1, 2019.

It was earlier also written, Univar Inc., a global chemical and ingredient distributor and provider of value-added services has announced the expansion of their agreement with BASF to include the Care Chemicals business for the US Home, Industrial & Institutional, as well as Vehicle Care product lines.

As MRC informed earlier, BASF would expand the capacity of ethylene oxide and ethylene oxide derivatives at its Verbund site in Antwerp, Belgium. The total investment adds about 400 000 tpy to BASF’s production capacity for the corresponding products with an expected investment amount exceeding EUR500 million.

Ethylene is a feedstock for producing polyethylene (PE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased.

Univar Solutions is a leading global chemical and ingredient distributor and provider of value added services to customers across a wide range of industries. With the industry's largest private transportation fleet and North American sales force, a vast supplier network, deep market and regulatory knowledge, world-class formulation and recipe development, unparalleled logistics know-how, and industry-leading digital tools, Univar Solutions is a committed ally to customers and suppliers, helping them anticipate, navigate, and leverage meaningful growth opportunities.
MRC

Olin Q3 net income falls 77% on lower sales volume, prices

MOSCOW (MRC) -- Olin Corporation OLN reported net income of USD44.2 million or 27 cents per share in third-quarter 2019, down from profit of USD195.1 million or USD1.16 per share a year ago, said the company.

Excluding one-time items, adjusted earnings for the quarter were 41 cents per share, which surpassed the Zacks Consensus Estimate of 36 cents.

The chemical maker’s revenues fell roughly 15.8% year over year to USD1,576.6 million in the quarter. Moreover, it missed the Zacks Consensus Estimate of USD1,729.8 million.

The company witnessed continued weakness in caustic soda pricing in the quarter. Prices declined modestly on a sequential basis in the quarter.

"Olin believes the challenging demand and price environment that the chlor-alkali products and vinyls and the epoxy businesses have been facing will continue through the fourth quarter of 2019," the company said in a statement.

Olin now expects full year 2019 net income of USD30m-59m, with corresponding adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD930m-980m.

Major US phenol producers are INEOS Phenol, Altivia, AdvanSix, Shell Chemicals, SABIC and Olin.

Phenol is the main feedstock component for the production of bisphenol A (BPA), which, in its turn, is used to produce polycarbonate (PC).

According to ICIS-MRC Price report, Russia's estimated consumption of polycarbonate (PC) rose in in the first three quarters of 2019 by 11% year on year to 61,000 tonnes (54,800 tonnes a year earlier). Consumption in the injection moulding sector grew in the first nine months of 2019 by 10% year on year to 7,900 tonnes from 7,200 tonnes a year earlier.

MRC

Shell flags return to output growth as demand headwinds weigh

MOSCOW (MRC) -- Shell expects to see its oil and gas production return to growth in the current quarter, after a hiatus in the third quarter, the oil major said Thursday, despite flagging macroeconomic threats to its key cash flow target, reported S&P Global.

Reporting stronger-than-expected third-quarter earnings, Shell said it expects its total upstream production to average 3.57 million-3.77 million b/d of oil equivalent in the fourth quarter.

The upside potential would mark a 6% increase from Q3 levels of 3.56 million boe/d but a 6% fall from Shell's Q4 2018 production of 3.79 million boe/d.

Europe's biggest oil major reported non-LNG linked upstream production slipped 2% year on year to 2.61 million boe/d during Q3, while its integrated gas business saw output grow 4% on the year to 957,000 boe/d. Combined, Shell's 3.56 million boe/d of production in the quarter was 1% lower on the year after asset sales, weaker performance in the Gulf of Mexico and Norway, and higher maintenance offset rising LNG output.

Shell's LNG sales in the third quarter rose 9% year on year to 18.90 million mt, and liquefaction volumes 9% to 8.95 million mt, a level expected to average 8.8 million-9.4 million mt in the fourth quarter.

Shell's adjusted Q3 earnings excluding one-time items fell 15% on the year to USD4.8 billion, reflecting the lower production and weaker oil and gas prices. The result was 23% above consensus forecasts of USD3.9 million for the period on a stronger LNG segment and trading earnings.

"This quarter we continued to deliver strong cash flow and earnings, despite sustained lower oil and gas prices, and chemicals margins," Shell's CEO Ben van Beurden said in a statement. "Our earnings reflect the resilience of our market-facing businesses and their ability to capitalize on market conditions, including very strong trading and optimization results this quarter."

Despite the earnings beat, Shell said concerns over the health of the global economy are threatening to delay its plans to cut debt and boost shareholder returns.

If current oil prices of around $60/b continue into 2020, gas prices remain week and refining and chemical margins remain at current levels, Shell's cash flows could suffer to the tune of up to $9 billion next year, Shell's chief financial officer Jessica Uhl said a quarterly earnings call. (See story 1402 GMT).

"Softening demand in terms of the pace of oil growth is being experienced, and that's playing into sentiment in the oil and gas sector, and certainly, prices in the oil and gas sector," Uhl said.

Looking ahead, Uhl said Shell remains upbeat over its growth prospects, underpinned by further developing its gas-rich upstream portfolio and emerging power sector business.

"We have further opportunity to increase cash flow with the ramp-up of some sizable projects, so overall the fundamentals for the company are very strong," Uhl said.

Shell - which does not issue oil and gas production targets -- said it was looking to grow its deepwater, shale and conventional oil and gas businesses. The company also wants to further develop its integrated gas, chemicals and fuels business.

Upstream growth in the short term will come from growing volumes from Shell's giant Prelude LNG project off Australia and its Appomattox field in the US Gulf which are both ramping up.

Uhl said Shells expects its capital spending to end the year at the lower end of its guidance range but confirmed Shell's "flexible" USD24-USD29 billion capex range for 2020.

"The messaging that we're sending today is just signaling prudence that we can see some headwinds and that we want to manage that effectively," Uhl said.

Downstream, Shell posted a 51% jump in segment earnings supported by stronger refining, trading and marketing results. Refining and trading earnings of $448 million in the quarter reflected higher contributions from oil products trading, mainly fuel oil, partly offset by lower realized refining margins.

"(After) very low refining margins in Q2, (we had) a little bit of a bounce back in Q3. But again, in terms of the fundamentals of the sector and the outlook, it's quite possible that we will not get to mid-cycle margins in the refining sector," Uhl said.

In the fourth quarter, Shell said it expects refinery availability to be between 87%-92%, compared with 92% in the third quarter.

As MRC wrote before, in mid-October, Royal Dutch Shell Plc restarted the hydrocracker at its 225,300 barrel-per-day (bpd) Norco, Louisiana, refinery. The 40,000 bpd hydrocracker was shut on Sept. 9 for a planned month-long overhaul. A longer than expected restart of the unit stretched the outage to six weeks, the sources said.

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.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC