Total delivers forecast-beating profits on cost cutting and increased production

MOSCOW (MRC) -- The French oil and gas company Total has managed to offset the effects of weak commodity prices by reporting better-than-expected profits in the third quarter of 2016, said Cnbc.

Total's adjusted net income was USD2.1 billion in the third quarter of 2016, a 25 percent contraction compared to the same period a year ago but above an expected USD1.96 billion seen in a Reuters poll. The company's operating cash flow before working capital changes stood at USD4.5 billion.

The company has put in place a strategy to cut costs across all its units and this is set to continue. The company raised its cost-cutting target from USD2.4 billion to USD2.7 billion this year. This has meant cutting capital investment and exploring for oil in established fields. The company also noted that increased production at some of its new projects also helped it to deliver forecast-beating profits.

"Total continues to benefit from its integrated business model and is responding effectively to short-term challenges due to good operational performance and strong cost discipline," Patrick Pouyanne, Total's CEO said in a statement.

Major oil firms have been busy restructuring since mid-2014 when the price of oil dramatically sank from around USD110 a barrel. Oil prices were trading higher in Asia on Friday morning. Brent was up by 7 cents from Thursday at USD50.54 a barrel and WTI was up by 4 cents at USD49.76 a barrel.

As MRC informed earlier, the National Petrochemical Company (NPC) of Iran and France-based Total have signed an memorandum of understanding (MoU) to build a petrochemical complex in Iran.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.

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Eni Q3 loss from continuing operations 562 million euros


MOSCOW (MRC) -- Eni reported that its third-quarter loss attributable to shareholders from continuing operations narrowed to 562 million euros from 783 million euros, a year ago, said Poandro.

Loss per share from continuing operations was 0.16 euros compared to a loss of 0.21 euros. Adjusted operating profit was 258 million euros, down by 66.3%. READ MORE Abercrombie & Fitch Q1 GAAP net loss USD63.2 million.

Adjusted loss attributable to shareholders from continuing operations was 484 million euros compared to a loss of 54 million euros, prior year. Adjusted loss widened due to a weaker operating performance, lower results from E&P equity-accounted entities and the company's reduced ability to recognize deferred tax assets on the basis of a muted outlook for future taxable earnings.

Third-quarter net sales from continuing operations was 13.12 billion euros compared to 16.01 billion euros, previous year. Hydrocarbon production at 1.71 million boe/d, up by 0.4% in the quarter; excluding the Val d'Agri shutdown, portfolio transactions and price effects in PSAs, production rose by 2.2%.

As MRC informed earlier, in June 2016, Eni announced that it could not reach an agreement with the US private equity firm SK Capital to sell a majority stake in ENI’s chemicals subsidiary Versalis (Milan) and has terminated the discussions.

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company with a market capitalization of EUR68 billion (USD 90 billion), as of August 14, 2013. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC

Sinopec chemical segment reports small increase in profits as sales volumes rise

MOSCOW (MRC) -- Sinopec’s chemical segment reports a 1.5% rise in operating profits in the first nine months of 2016 compared with the year-ago period, to 15.1 billion renminbi (USD2.25 billion), said Chemweek.

Nine-month sales for the chemicals segment decreased 8.3%, to 224.1 billion renminbi. Chemical sales volume in the first nine months of 2016 increased 11.2% year-on-year (YOY), to 50.46 million metric tons (MMt), Sinopec says. Ethylene-equivalent consumption in China in the first three quarters of 2016 was flat compared with the same period last year and the competitiveness of naphtha-based chemicals improved in the low oil price environment, Sinopec says. Third-quarter figures have not been disclosed.

Sinopec’s ethylene production decreased 1.9% YOY in the first nine months of 2016, to 8.11 MMt; production of plastics decreased 1.1%, to 11.13 MMt; production of synthetic rubber decreased 7.3%, to 619,000 metric tons; and the output of fibers decreased 3.4%, to 934,000 metric tons. Sinopec's production of monomers and polymers for synthetic fibers increased 2.1%, to 6.83 MMt.

Sinopec’s total capital expenditure was 24.9 billion renminbi in the first nine months of 2016, of which the chemical segment accounted for 3.96 billion renminbi.

As MRC informed earlier, in June 2016, Rosneft and Sinopec signed a Framework Agreement on joint pre-feasibility study of the project related to the construction and operation of a gas processing and petrochemical complex in East Siberia.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC

Huntsman announces third quarter results


MOSCOW (MRC) -- Huntsman Corp. (HUN) released earnings for third quarter that decreased compared to the same period last year, said Reuters.

The company said its profit fell to USD91 million, or USD0.38 per share. This was down from USD115 million, or USD0.47 per share, in last year's third quarter.

Analysts had expected the company to earn USD0.36 per share, according figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company said revenue for the quarter fell 10.6% to USD2.36 billion. This was down from USD2.64 billion last year.

As MRC informed previously, in October 2014, Huntsman Corporation completed the acquisition of the Performance Additives and TiO2 businesses of Rockwood Holdings, Inc. And, in February 2015, the company announced its plans to reduce its TiO2 capacity by approximately 100,000 tons, representing 13% of Huntsman's European TiO2 capacity. As part of the plan, Huntsman is proposing to close certain operations at its site in Calais, France.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of over USD10 billion. Huntsman is a global manufacturer and marketer of differentiated chemicals. The company's operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. The company operates more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within its 5 distinct business divisions.
MRC

Sumitomo Chemical to merge its three wholly owned subsidiaries in Singapore

MOSCOW (MRC) -- Sumitomo Chemical has decided to merge its three Singapore-based subsidiaries - Sumitomo Chemical Asia Pte Ltd, Sumitomo Chemical Singapore Pte Ltd, and Sumitomo Chemical (Asia Pacific) Pte Ltd, effective April 1, 2017, as per the company's press release.

Sumitomo Chemical Asia Pte Ltd will be the surviving company.

The merger is intended to enhance Sumitomo Chemical Group’s competitive advantage in the sales, marketing, production, and supply-chain management of chemical products in the region of Asia through bringing together the three companies' extensive business expertise and leveraging their established intelligence network.

In addition, concentrating the management resources of the three companies will serve to attain the overall optimization of the integrated business operations.

Following the merger, Sumitomo Chemical Asia Pte Ltd, as the Sumitomo Chemical Group’s regional headquarters in the region, will work to expand the Group’s presence in the region by seizing business opportunities successfully in the growing markets of the region.

As MRC informed previously, Kuraray, Sumitomo, and PTT Global Chemical signed a Head of Agreement (HOA) to jointly perform a Detailed Feasibility Study (DFS) for potential project development of manufacturing and sales of butadiene derivatives in Thailand. This was announced by the companies on 13 September 2016. The Feasibility Study (FS) will be targeted to start operation of 16,000 t hydrogenated styrenic block copolymers (HSBC) and 13,000 t polyamide 9T (PA9T) in Hemaraj Eastern Industrial Estate (HEIE), Rayong in Thailand in 2020. Butadiene as a key raw material will be supplied by PTTGC.

Sumitomo Chemical is a Japanese based manufacturer of a diverse range of products, including basic chemicals, petrochemicals and plastics, fine chemicals, agricultural chemicals, IT-related chemicals and pharmaceuticals.
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