BASF withdraws outlook for 2020 business year

MOSCOW (MRC) -- BASF said Thursday it will not be able to meet full-year sales and earnings guidance issued on 28 February and withdrew its outlook in advance of its first-quarter earnings report on Friday, reported Chemweek.

"It is currently impossible to reliably estimate both the length and the further spread of the coronavirus pandemic, as well as future measures to contain it," BASF said. "Consequently, concrete statements on the future development of sales and earnings cannot be made at present."

BASF has previously forecast 2020 revenues of EUR60–EUR63 billion, up 3.7% year-on-year (YOY), and EBIT before special items of EUR4.2–EUR4.8 billion, essentially flat with 2019 results. BASF's underlying assumptions for the economy at the time were global GDP growth of 2% and chemical production growth of 1.2%. IHS Markit's current forecast calls for a 3% decrease in global GDP this year.

BASF also announced yesterday that it would leave its dividend for the 2019 business year unchanged. The company’s board today proposed a dividend of EUR3.30/share for approval at the annual shareholders meeting of BASF SE, which will be held 18 June.

As MRC informed earlier, BASF has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of around EUR63 billion in 2018.
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Belarus refineries received 2 million tons of oil in April, mainly from Russia

MOSCOW (MRC) -- Belarusian refineries received 2 million tons of oil in April, of which 1.56 million tonnes came from Russia, a spokesman for state energy group Belneftekhim told reporters, said Hydrocarbonprocessing.

Belarus, which had a dispute with Russia over oil prices earlier this year, plans to reduce its Russian oil imports to 1.13 million tons in May, the spokesman said.

According to MRC"s DataScope report, February PP imports into the Republic of Belarus were about 9,700 tonnes, compared to 7,800 tonnes a month earlier, local companies raised their purchasing of PP in Russia. Overall imports of propylene polymers reached 17,500 tonnes in January-February 2020, compared to 16,000 tonnes a year earlier, demand for all PP grades increased, with homopolymer of propylene (homopolymer PP) accounting for the greatest growth.
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Valero Energy earnings, revenue beat in Q1

MOSCOW (MRC) -- Valero Energy reported on Wednesday first quarter earnings that beat analysts' forecasts and revenue that topped expectations, said Investing.

Valero Energy announced earnings per share of USD0.34 on revenue of USD22.10B. Analysts polled by Investing.com anticipated EPS of USD-0.15 on revenue of USD20.27B. That with comparison to EPS of USD0.34 on revenue of USD24.26B in the same period a year before. Valero Energy had reported EPS of USD2.13 on revenue of USD27.88B in the previous quarter. Analysts are expecting EPS of USD-0.72 and revenue of USD19.2B in the upcoming quarter.

Valero Energy shares are down 38.21% from the beginning of the year , still down 43.26% from its 52 week high of USD101.99 set on November 5, 2019. They are under-performing the S&P 500 which is down 11.75% year to date.

Valero Energy follows other major Energy sector earnings this month Valero Energy's report follows an earnings matched by BP ADR on Tuesday, who reported EPS of USD0.24 on revenue of USD59.54B, compared to forecasts EPS of USD0.24 on revenue of USD48.03B.

ENI ADR had missed expectations on Friday with first quarter EPS of USD0.04 on revenue of USD15.04B, compared to forecast for EPS of USD0.17 on revenue of USD14.45B.

As MRC informed earlier, One worker was injured in a fire at Valero Energy Corp’s 125,000 barrel-per-day Meraux, Louisiana, refinery early Friday morning. Valero spokeswoman Lillian Riojas said the injured worker was taken to a local hospital. The extent of the person’s injuries was unknown. All other workers at the refinery were accounted for. Energy industry intelligence service Genscape said the refinery was shut at about the time the fire broke out, shortly before 1 a.m. CDT (0600 GMT).

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

CNOOC Q1 revenue down 6.4%

MOSCOW (MRC) -- CNOOC Limited reported Wednesday that its first-quarter oil and gas sales revenue reached around 39.95 billion Chinese yuan, down 5.5 percent from last year, mainly due to the lower realised oil and gas price, despite increased oil and gas sales volume, said Businessinsider.

First-quarter total net production was 131.5 million barrels of oil equivalent or BOE, an increase of 9.5 percent from the prior year.

Production from China increased 9.7 percent from last year to 87.1 million BOE. Overseas production grew 9 percent to 44.5 million BOE.

During the period, the company made two new discoveries and drilled 21 successful appraisal wells.

For the first quarter of 2020, the company's average realised oil price decreased 19.3 percent year-over-year to $49.03 per barrel, which was in line with the trend of international oil prices.

The average realised gas price was USD6.38 per thousand cubic feet, down 7.3 percent from last year, primarily due to the declined gas price in North America.

Looking ahead, the company reduced fiscal 2020 net production target to 505-515 million BOE from 520-530 million BOE expected earlier.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

McDermott awarded multiple EPFC contracts for storage tanks in Saudi Arabia

MOSCOW (MRC) -- McDermott International, Inc. announced CB&I Storage Solutions has been awarded one large and two sizeable contracts for the engineering, procurement, fabrication and construction (EPFC) of 38 tanks and 13 spheres in multiple locations across Saudi Arabia, said Hydrocarbonprocessing.

"CB&I Storage Solutions has had a significant presence and strong track record in Saudi Arabia since the 1930s," said Cesar Canals, Senior Vice President of CB&I Storage Solutions. "This experience, and our strong partnerships with international contractors and major oil & gas operators, has established us as one of the most reliable providers of storage and EPFC solutions in the country."

The awards will be reflected in McDermott's first quarter 2020 backlog.

*McDermott defines a sizeable contract as between USD1 million and USD50 million and a large contract as between USD50 million and USD250 million.

CB&I Storage Solutions is the world's leading designer and builder of storage facilities, tanks and terminals. With more than 59,000 structures completed throughout its 130-year history, CB&I Storage Solutions has the global expertise and strategically-located operations to provide its customers world-class storage solutions for even the most complex energy infrastructure projects.

As MRC informed before, in late November 2019, McDermott International, Inc. was awarded a sizeable technology contract from Baltic Chemical Company (BCC) and a sizeable Extended Basic Engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company Limited (CC7). The ethane cracking project is owned by Baltic Chemical Complex LLC, a subsidiary of RusGazDobycha. McDermott's Lummus Technology will provide both the Process Design Package (PDP) Engineering and the license for its olefin production and recovery technology. Lummus Technology's proprietary ethylene steam cracking process is the most widely-applied process for the production of polymer-grade ethylene, representing approximately 40 percent of the world's capacity.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
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