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Repsol chemical business earnings rise on higher utilization, margins, sales

February 18/2021

MOSCOW (MRC) -- Repsol has reported a EUR102-million (USD123 million) rise year on year (YOY) in fourth-quarter operating income in its chemicals business, due mainly to higher utilization rates, petrochemical margins, and sales, combined with reduced costs, reported Chemweek.

Specific figures for operating income and chemical sales for the quarter and comparative prior-year period were not provided.

The chemicals business sits within Repsols industrial segment, for which adjusted net income in the fourth quarter was EUR68 million, down 72% YOY from EUR242 million, but swinging sequentially from a loss of EUR67 million in the third quarter. The earnings decline was due to primarily to negative market conditions related to COVID-19 in the companys refining activities, operations in Peru, and to a lesser extent in its trading, and wholesale and gas-trading businesses. This was partially offset by the strong performance of chemicals and lower taxes due to a lower operating income, it says. Sales totaled EUR6.69 billion for the quarter, down from EUR9.40 billion a year earlier, but improving from EUR5.89 billion in the third quarter.

Petchem product sales in the fourth quarter rose 11.5% YOY to 727,000 metric tons and were also up sequentially from 704,000 metric tons in the previous quarter.

Repsol reported a group net loss of EUR711 million for the fourth quarter, narrowing from a loss of EUR5.28 billion a year earlier, but widening sequentially from a loss of EUR94 million in the third quarter. The net loss was due mainly to provisions in its upstream business, it says. Adjusted net income was EUR404 million, flat YOY and up from EUR7 million in the third quarter. Fourth-quarter group sales declined to EUR8.97 billion, down 30% from EUR12.91 billion in the prior-year period, but up sequentially from EUR8.48 billion in the third quarter.

Looking forward, Repsol says it is committed to efficiency in the industrial processes of its chemicals business, oriented towards a circular economy, with the goal of recycling the equivalent of 20% of its polyolefin production by 2030.

As MRC wrote previously, in January 2020, Berry Global Group, Evansville, Indiana, announced that Madrid-based Repsol, its longtime supplier, will supply it with circular resins. The Spanish multienergy global company will supply Berry with International Sustainability and Carbon Certification (ISCC) Plus-certified circular polyolefins from its Repsol Reciclex range. According to a news release from Berry Global, these polyolefins are obtained by advanced recycling, enabled by the adoption of new chemical recycling technologies, of postconsumer plastic scrap not suitable for traditional recycling.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, PP random copolymer, LDPE, HDPE, petrochemistry, recikling, Repsol, Spain, Russia.
Category:General News
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