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CP Chem O&P posts lower Q1 2021 income mainly due to winter storm impacts

May 05/2021

MOSCOW (MRC) -- Chevron Phillips' Olefins and Polyolefins' (O&P) business has posted adjusted pre-tax income of USD174 million in the first quarter of 2021, compared with USD216 million in the fourth quarter of 2020, as per the company's press release.

The USD42 million decrease was primarily due to winter storm impacts, which resulted in decreased production and higher utility costs.

These items were partially offset by higher margins primarily due to tight supplies, low inventory levels and continued strong demand.

The company's global capacity utilisation was 79% for the first quarter.

Meanwhile, CPChems Specialties, Aromatics and Styrenics (SA&S) business announced first-quarter adjusted pre-tax income of USD27 million, compared with USD13 million in the fourth quarter. The increase primarily reflects improved margins.

As MRC reported earlier, in March 2018, Chevron Phillips Chemical, part of Chevron Corp, successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year. This unit is one of the largest and most energy efficient crackers in the world. In September 2017, the company announced the successful commissioning and start-up of two new Marlex polyethylene (PE) units in Old Ocean, Texas, based on the companys proprietary MarTech technologies. Together, these assets form the bulk of the companys US Gulf Coast Petrochemicals Project (USGCPP), which was first announced in 2011.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
Author:Margaret Volkova
Tags:PP, PE, PP block copolymer, homopolymer PP, propylene, HDPE, ethylene, Chevron, Chevron Phillips, Russia, USA.
Category:General News
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