ExxonMobil reports less profit decline in Q3 on falling production and sales

(business) -- US energy giant ExxonMobil has reported a smaller-than-expected dip in profit for the third quarter on falling production and sales.

Net income for the July-September quarter dropped 7.0% from a year earlier to USDUS9.6 billion, said Exxon Mobil. Revenue fell 7.7% to USD115.7 billion as oil equivalent production declined 7.5% in the quarter, the Irving, Texas-based company said.

ExxonMobil increased capital and exploration spending by 7.0% to USD9.2 billion, the bulk of it outside the United States.

"Third-quarter results reflect our ongoing commitment to help deliver the energy needed to underpin economic recovery and growth while maintaining our strong focus on safety and environmental performance," said chairman Rex Tillerson.

ExxonMobil is an American multinational oil and gas corporation. It is the world's largest company by revenue and one of the largest publicly traded companies by market capitalization in the world. ExxonMobil is the largest of the six oil supermajors with daily production of 3.921 million BOE.

As MRC has reported recently, ExxonMobil reported flaring at its refinery in Joliet, Illinois. The release lasted about 30 minutes, and the unit was shut down. In early October a fire broke out at the conpany's Baytown, Texas refinery to a process unit. The complex has a 584,000 bbl/day refinery and two chemical plants that make butyl rubber and polypropylene (PP), making it the largest operating refinery in the U.S. and one of the largest in the world.
MRC

(4-traders) -- Fushun Petrochemical launched its new 800Kt/a ethylene facility in China on October, 28. All the eight production units of the 1Mt/a ethylene capacity expansion project operated together and turned out qualified products, marking the full operation of Fushun Petrochemical's "10 Mt/a refining and 1Mt/a ethylene" project.

From now on, Fushun Petrochemical is capable of processing 11.5 million tonnes of crude and producing one million tonnes of ethylene per annum, and also serves as a world-class production base for paraffin, lubricant base oil, alkyl benzene and synthetic resin.

Besides, as MRC informed earlier, Fushun Petrochemical launched a new plant in Fushun, Liaoning Province, China, where it is still testing the production process. The nominal capacity of the facility is 300,000 tonnes of polypropylene (PP), 350,000 tonnes of high density polyethylene (HDPE) and 450,000 tons of linear low density polyethylene (LLDPE) per year.
MRC

MOSCOW (MRC) -- Russian producers have announced a reduction of LDPE prices for the domestic market in November on a significant seasonal decline in demand and ample supply, according to MRC Price report.

As expected, Russian makers decreased their contract LDPE prices for the domestic market in November. The prices dropped by Rb1,200-2,400/tonne from October depending of the maker and PE grade.

The reduction of LDPE prices for the domestic market was both due to a seasonal decline in demand and ample supply of polyethylene in the domestic market. November is one of the lowest months of the year with regard to demand. This year, November was no exception.

In the spot market, buying activity is also very low. Converters are not in a rush to replenish their stocks. Prices for LDPE 158 in the spot market had set in the range of Rb59,500-61,500/tonne, CPT Moscow, including VAT, by mid-week.
MRC

(apic-online) -- Following Petronas' announcement that the company will exit the vinyls business by the start of 2013, players in Malaysia’s PVC market have started to speculate about the likely impact on the country’s PVC trade balance. Some players feel that Malaysia may become a net importer of PVC after 2013 as the loss of Petronas’ plant will reduce Malaysia’s total PVC capacity by around 43%.

According to a press release from Petronas, the company has decided to exit the vinyls business effective as of January 1, 2013. The company’s Malaysian subsidiary Vinyl Chloride (Malaysia) Sdn Bhb (VCMSB) will decommission its 400,000 tons/year VCM plant and its 150,000 tons/year PVC plant in Kertih, Malaysia.

Once Vinyl Chloride (Malaysia) shuts its plants, Malaysia will have two remaining PVC producers-Industrial Resins Sdn Bhb and Malaysia Electro-Chemical Industry Company. Industrial Resins has a total PVC capacity of 150,000 tons/year while Malaysia Electro-Chemical Industry Company has a total capacity of 50,000 tons/year. Malaysia's annual PVC consumption is estimated to be between 150,000 tons and 180,000 tons.

"Industrial Resins is not supplying the market normally for now and we have not received any deliveries from them for the past two months," a Malaysian converter reported. A PVC compounder in Malaysia commented, "We believe that Malaysia will become a net importer of PVC next year as Petronas will be out of the market and Industrial Resin is experiencing some supply issues. Buyers will be able to source imports from China, South Korea and other ASEAN nations without paying customs duties."

A Malaysian PVC compounder stated, "We think that the closure of Vinyl Chloride (Malaysia)'s plant will cause a definite shift in the supply/demand balance. We hear that many converters are already increasing their purchases from Thailand."
MRC

(chemicals-technology) -- Mexichem, the Latin American leader in the production of polyvinyl chloride (PVC), is planning to invest nearly MXN 1.43bn (USD109m) to expand its chemical plant in Altamira, Mexico.

"During the construction phase, the project is expected to generate more than 1,000 jobs."

Altamira chemical plant general manager Fernando Ramirez was quoted by EFE news services as saying that the expansion and modernisation project for the Altamira I Complex is another step towards consolidating Mexichem's position in the chemical and petrochemical industries.

During the construction phase, the project is expected to generate more than 1,000 jobs. Mexichem will also develop local supply chains by contracting regional suppliers and workers.

The PVC and other products manufactured in Altamira are used in plastic linings, containers, bottles, insulation for wiring, pipes, toys and other items.

Mexichem is a Mexican company and one of the largest leader in the Latin American chemical and petrochemical industry. The company operates in North, Central and South America, Europe and Asia and exports its products to more than 50 countries.
MRC