Dow expects Q4 earnings decrease

MOSCOW (MRC) -- Dow expects Q4 earnings before interest, tax, depreciation and amortisation (EBITDA) to be about USD150-200m lower than market consensus, said the company.

The reason: higher raw material costs and lower polyethylene (PE) and co-product pricing. However, the company is seeing continued economic and supply recovery in Q4, it said. It noted “robust” end-market demand strength across industrial and consumer markets, as well as improving supply positions following weather-related outages, turnarounds and start-up of new PE capacity in the US Gulf Coast region. Nevertheless, logistics challenges continue to constrain demand, it said.

As per MRC, Dow Chemical, one of the largest US petrochemical companies, has begun bringing operations back online "as third-party utility balances and raw materials availability allow. Dow said its Taft operations were "making progress" toward restarting, and the company expected to have a clearer timeline for resumption of production in the coming days based on repairs and as access to power and raw materials allow.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

Dow Chemical is an American diversified chemical company headquartered in Midland, Michigan. It is a major manufacturer of polymer products, including polystyrene, polyurethane, polyethylene, polypropylene and synthetic rubbers. The company produces more than five thousand products at 188 production facilities in 37 countries.
MRC

MOSCOW (MRC) -- ExxonMobil said it has finalized corporate plans, which increase spending to USD15 B on GHG emission-reduction projects over the next six years while maintaining disciplined capital investments in its industry-leading portfolio, according to Hydrocarbonprocessing.

The plans support the corporate strategy of continued structural cost savings, investment in low-cost-of-supply and lower-emission products, and further portfolio high-grading, positioning the company to double earnings and cash flow by 2027 versus 2019.

The company also announced it is on track to meet its 2025 GHG emission-reduction plans by year-end 2021, four years ahead of schedule. In addition, ExxonMobil has developed more aggressive plans for further Scope 1 and Scope 2 reductions through 2030, consistent with Paris Agreement pathways.

ExxonMobil plans to maintain capital investments in the range of USD20-25 B per year through 2027 with flexibility to adjust to adverse market conditions or changes in policy and technology for low-emissions projects.

“The restored strength of our balance sheet and improved financial outlook support accelerating investment in our industry-advantaged, high-return projects, and a growing list of financially accretive lower-emission business opportunities,” said Darren Woods, chairman and chief executive officer. “Our strategy is designed to create shareholder value by leveraging our competitive advantages while maintaining flexibility to respond to future policy changes and technology advances associated with the energy transition.”

Projected growth of cash flow and earnings in the Upstream business results from aggressive cost reductions and progressing advantaged investments in low-cost-of-supply projects in Guyana, Brazil, and the Permian Basin in the United States. More than 90% of Upstream planned capital investments through 2027 are expected to generate returns of greater than 10% at prices less than or equal to USD35 per bbl of oil equivalent, while reducing Upstream GHG emissions intensity by 40-50% through 2030, compared to 2016 levels.

Downstream and Chemical earnings and cash flow growth plans are focused on high-return projects, which are expected to double the volume of valuable performance chemicals and lower-emission fuels and lubricants. The company will leverage its industry-leading manufacturing scale, integration, and technology position to high-grade its portfolio and reduce costs, while optimizing operations and leveraging the capabilities of the Low Carbon Solutions business to reduce GHG emission intensity at operated facilities.

Increased cash flow and earnings enable both further debt reduction and returns to shareholders. To date in 2021, the company has repaid USD11 B in debt and expects to be comfortably within the range of its targeted debt–to-capital ratio of 20-25% by year-end. It has also announced a USD10 B share-repurchase program over 12-24 months that will commence in 2022, and it increased its annual dividend payment for the 39th consecutive year.

As part of its plan, ExxonMobil has committed USD15 B for lower-emission investments through 2027. These investments will include a balance between projects to reduce GHG emissions from existing operations and increased investments in the low carbon solutions business. The same capabilities, technical strengths and market experience that support base energy and chemical businesses will help drive commercial growth opportunities for CCS, biofuels and hydrogen where supportive policies currently exist and provide for strong returns.

ExxonMobil is on track to exceed its 2025 GHG emission-reduction plans announced in December 2020. The company anticipates year-end 2021 results to show a reduction of 15-20% in GHG intensity from Upstream operations compared to 2016 levels, four years ahead of schedule. This is supported by an anticipated reduction of 40-50% in methane intensity and 35-45% in flaring intensity compared to 2016.

As MRC informed before, ExxonMobil said earlier this month it is on track to meet its 2025 emissions reduction targets by the end of this year - four years earlier than planned - and has vowed to ramp up investments to further cut emissions.

We remind that ExxonMobil plans to build its first, large-scale plastic waste advanced recycling facility in Baytown, Texas, and is expected to start operations by year-end 2022. By recycling plastic waste back into raw materials that can be used to make plastic and other valuable products, the technology could help address the challenge of plastic waste in the environment. A smaller, temporary facility, is already operational and producing commercial volumes of certified circular polymers that will be marketed by the end of this year to meet growing demand.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

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

MOSCOW (MRC) -- Pucheng Clean Energy, a key coal-based petrochemical producer in China, has reduced operating rates at its polypropylene (PP) plant to approximately 80% in the last week of November, after hitting the annual coal consumption quota of 3.7 million tons, according to CommoPlast.

The producer is now sourcing 50,000 tons of spot methanol to feed the downstream plants, including its PP unit.

Pucheng Clean Energy owns a 400,000 tons/year PP plant in Shanxi province, China, and a 300,000 tons/year LLDPE plant.

The development raises many questions among Chinese players on whether other coal-based petrochemical plants would face the same issue moving forward, which would eventually affect domestic supply.

As MRC informed earlier, this year, Pucheng Clean Energy conducted scheduled turnarounds at its PP plant in Shaanxi province from 22 to 28 February and from 12 July to 5 August.

According to MRC's ScanPlast report, PP shipments to the Russian market were 1,138,510 tonnes in the first nine months of 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
MRC

MOSCOW (MRC) -- Pucheng Clean Energy, a key coal-based petrochemical producer in China, has cut operating rates at its low density polyethylene (LLDPE) plant to approximately 80% in the last week of November, after hitting the annual coal consumption quota of 3.7 million tons, according to CommoPlast.

The producer is now sourcing 50,000 tons of spot methanol to feed the downstream plants, including its LLDPE unit.

Pucheng Clean Energy owns a 300,000 tons/year LLDPE plant and a 400,000 tons/year polypropylene (PP) plant in Shanxi province, China.

The development raises many questions among Chinese players on whether other coal-based petrochemical plants would face the same issue moving forward, which would eventually affect domestic supply.

As MRC informed earlier, this year, Pucheng Clean Energy conducted scheduled turnarounds at its LLDPE plant in Shaanxi province from 22 to 28 February and from 12 July to 5 August.

According to MRC's ScanPlast report, September LLDPE shipments to Russia dropped to 47,590 tonnes from 54,030 tonnes a month earlier. Producers reduced their PE output, at the same time, imports decreased. LLDPE shipments to the Russian market were 367,030 tonnes in January-September 2021, up by 28% year on year.
MRC

1. Global jet fuel demand stays under pressure from new COVID-19 variant

MOSCOW (MRC) -- Global jet fuel markets stayed under pressure on Tuesday as more countries expanded border restrictions to keep the new Omicron coronavirus variant at bay, prompting travelers to reconsider their plans, reported Reuters. Jet fuel demand - the biggest laggard in the oil complex - had been forecast to post the strongest growth of 550,000 bpd to 5.9 MMbpd in fourth quarter, according to the International Energy Agency in its Nov. 16 report. But now Omicron poses the greatest risk to jet fuel consumption. Hong Kong expanded a ban on entry for non-residents from several countries, the latest to expand travel curbs after Israel and Japan have already announced border closures to all foreign travelers.

MRC