LyondellBasell announces quarterly dividend

MOSCOW (MRC) --- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has just announced that it has declared a dividend of USD1.05 per share, as per the company's press release.

The dividend is to be paid March 9, 2020 to shareholders of record March 2, 2020, with an ex-dividend date of Feb. 28, 2020.

As MRC wrote previously, iin September 2016, LyondellBasell selected its La Porte, Texas, manufacturing complex as the site for a new high density polyethylene (HDPE) plant. The plant will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology and will have an annual capacity of 1.1 billion pounds (500,000 metric tons). Construction began in early 2017 with start-up planned for Q1 2020.

According to MRC's DataScope report, HDPE imports into Russia grew in January-December 2019 by 44% year on year, reaching 363,100 tonnes. Pipe grade and film grade polyethylene (PE) accounted for the greatest increase in imports.

LyondellBasell is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 57 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Last year's imports of high density polyethylene (HDPE) into Kazakhstan grew by 2% year on year, totalling 131,200 tonnes. The geography of HDPE shipments changed significantly in 2019, according to MRC's DataScope report.

HDPE imports to Kazakhstan were 16,700 tonnes in December 2019, compared to 8,900 tonnes a month earlier, local companies doubled their purchasing of HDPE in Uzbekistan. Overall HDPE imports totalled 131,200 tonnes in 2019, compared to 128,300 tonnes a year earlier. Procurement of polyethylene (PE) from Uzbekistan increased significantly, whereas shipments from Russia decreased.

The structure of PE imports by grades looked the following way over the stated period.

The geographical proximity and the growth of export opportunities allowed producers from Uzbekistan to significantly raise their HDPE deliveries to Kazakhstan last year. Overall imports grew to 66,800 tonnes from 52,500 tonnes a year earlier.

Russian producers were the second largest suppliers. HDPE shipments to the local market fell to 45,000 tonnes in 2019 from 64,900 tonnes a year earlier.

Local companies also began to purchase HDPE in Turkmenistan last year, but quantities are still insignificant and totalled about 2,000 in 2019.

MRC

MOSCOW (MRC) -- Westlake Chemical Corporation saw lower profits in the fourth quarter of 2019, hurt by reduced global sales prices for its major products, according to Kemicalinfo.

The chemical maker posted a profit of USD72 million down around 41% from USD123 million it earned in the prior-year quarter.

Decrease in profit was attributed to lower global sales prices for key products due to trade uncertainties and a slower global economic growth.

Sales in the Olefins segment fell around 19% year over year to USD398 million in the reported quarter. Operating income in the segment tumbled roughly 46% to USD49 million. The decline was mainly due to reduced sales prices for major products resulting from higher olefins production and greater impacts from turnaround activity.

The Vinyls segment generated sales of USD1.5 billion, down around 1% year over year. Operating income in the segment was USD68 million, down around 46% year over year. The decline was caused by reduced sales prices for caustic soda and PVC (polyvinyl chloride) resin.

Revenues for full-year 2019 were USD8.12 billion, down around 6% year over year.

Westlake Chemical said that it remains focused on optimizing its operations and lowering its cost position.

In February 2018, as MRC informed before, Westlake Chemical announced plans to expand its capacities for the production of PVC and VCM at three of its chemical facilities. Two of the plants are located in Germany (Burghausen, Gendorf) and one is located in Geismar, Louisiana. The expansions in Burghausen and Geismar are expected to be completed in 2019. The Gendorf expansions are expected to be completed in 2020 and 2021.

According to MRC's ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year,

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC

MOSCOW (MRC) -- Oman, the biggest Middle East oil producer outside OPEC, awarded France's Total and Thailand's PTTEP rights to explore and develop non-associated gas deposits in the sultanate, which is ramping up exploration and development of gas resources, reported S&P Global.

Oman's Minister of Oil and Gas Mohammed al-Rumhy signed the exploration and production sharing agreement for Block 12, which spans 9,546 square kilometers in central Oman, the ministry said Wednesday on Twitter.
Total will be operator of the block and hold an 80% stake, with the rest held by PTTEP.

Last year, Italy's Eni and BP Oman won rights to explore for oil and gas in Block 77 and Shell Oman was granted rights to Block 55.

Oman, which currently produces around 3 billion cubic feet of gas/day, is ramping up exploration and undertaking multi-billion dollar projects to monetize gas from the Mabrouk field that was discovered in 2018. Total and Shell are conducting downstream and upstream projects in Mabrouk that could cost more than USD20 billion.

State-run OQ, Total and Shell are partnering in the upstream development of Mabrouk while Shell and Total are separately working on a gas-to-liquids (GTL) plant to be developed by Shell and an LNG bunkering facility to be developed by Total.

The sultanate is also developing its giant Khazzan gas field with the help of BP, which is boosting production from the current 1 Bcf/d to 1.5 Bcf/d by 2021.

As MRC informed earlier, in November 2019, Total disclosed that it was evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- US oil refiner Phillips 66 said on Wednesday its 2020 capital spending budget could fall as much as 10% below this year’s plans, which include USD300 million for a West Coast marketing campaign, according to Hydrocarbonprocessing.

Executives at the fourth-largest US refiner by capacity said in a presentation to Wall Street analysts that next year’s outlays would range from USD3 billion to USD3.5 billion, compared with the estimated USD3.3 billion to USD3.5 billion this year.

"Phillips 66 has a consistent, proven strategy to create value for shareholders," Chief Executive Greg Garland said in New York. "Our strategic priorities of growth, returns and distributions are supported by a strong foundation of operating excellence and a high-performing organization."

The 2019 capital budget was boosted in part by USD300 million to pay for a retail-fuels joint marketing campaign with an undisclosed partner on the West Coast, executives said. Phillips markets fuels under the Phillips 66 and Union 76 brands.

"The transaction has not yet been finalized," said Phillips 66 spokesman Dennis Nuss. "We can confirm additional details once the transaction is closed."

At the high end of next year’s spending, the company would have "USD1.5 billion to USD2.5 billion for share repurchases, ahead of our expectations of USD1.2 billion," Credit Suisse analysts said in a note on Wednesday. "Another strong dividend increase for 2020 indicated (we expect a 10% hike)."

During the presentation, which was webcast, analysts questioned whether the capital budget fully reflected spending for major oil pipeline and other projects being constructed.

Garland said two major pipelines being developed were financed by shippers. Phillips 66 discloses its financing arrangements to credit rating agencies, he added, saying: "We’re completely transparent."

Phillips 66’s budget will include work on gasoline-producing fluidic catalytic cracking units (FCCU) at its Sweeny, Texas, and Ponca City, Oklahoma, refineries in 2020.

At the 265,000-barrel-per-day (bpd) Sweeny refinery south of Houston, Phillips 66 plans to continue modernizing the two FCCUs. Work at the 207,000-bpd Ponca City refinery in northern Oklahoma will focus on improving the yield from the FCCUs.

Also for 2020, the company is planning projects to produce diesel fuels from renewable resources at the 120,200-bpd Rodeo, California, refinery in the San Francisco Bay area and at the 221,000-bpd Humber, England, refinery.

As MRC reported earlier, Phillips 66 took the gasoline-making FCCU at its Bayway refinery in Linden, New Jersey, offline at midnight EST last Thursday due to a leak. There was no timeline for the restart.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC