MOSCOW (MRC) -- BP reported a near halving in third-quarter earnings on Tuesday and cut its 2016 investment plans by another USD1 billion as weak oil prices cut into profits yet tighter spending helped the British oil major still beat analysts' estimates, said Reuters.
BP, which plans to lay off around 7,000 workers by the end of next year, said it was expecting further charges related to redundancies and other restructuring measures next year, adding to the USD2.1 billion in charges incurred since the end of 2014.
BP's third-quarter underlying replacement cost profit, the company's definition of net income, fell to USD933 million from USD1.8 billion a year earlier but beat the USD780 million expected by analysts.
"We remain on track to rebalance organic cash flows next year at USD50 to USD55 a barrel," Chief Financial Officer Brian Gilvary said in a statement.
Oil prices are now trading at around USD49 a barrel, meaning BP is banking on a slight rise in prices going into next year.
To achieve a leaner balance sheet, BP said it would lower its 2016 capital expenditure to around USD16 billion from the USD17-19 billion expected at the start of the year, and target USD15-17 billion for 2017.
BP joined the ranks of Shell, France's Total and U.S. majors Exxon Mobil and Chevron in beating expectations, with cost cuts helping to improve margins. Norway's Statoil and Italy's ENI disappointed, however.
BP said asset sales stood at USD2.7 billion at the end of the quarter and the company remained on track to sell USD3-5 billion of assets this year.
As MRC informed earlier, BP is seeking buyers for its 50% stake in Chinese petrochemicals joint venture SECCO, its largest investment in China, in a deal sources said could fetch USD2-USD3 B.
BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MOSCOW (MRC) -- GTC Technology has signed an agreement with PJSC Nizhnekamskneftekhim (NKNK) to provide its GT-BTX licensed technology for the modernization of a benzene production facility at NKNK’s EP-600 cracker plant in Nizhnekamsk, Republic of Tatarstan, Russia, said Businesswire.
The new GT-BTX unit will process a full range C6-C8 cut after the 1st stage pygas hydrotreating unit and will allow NKNK to lower the cash cost of producing high-purity benzene and also recover non-aromatics to be used as cracker feed. GTC will revamp the existing 2nd stage pygas hydrotreating unit to process 30% more feed, and design a new GT-BTX unit with post-fractionation. Scope of supply includes the basic engineering package, technical services, proprietary catalyst, solvent and equipment. Start-up is planned for 2017.
"We are pleased to work with such a prestigious company as NKNK to provide effective solutions for recovering aromatics from pyrolysis gasoline and modernizing olefins production complexes," said Joseph C. Gentry, GTC Global Vice President – Engineering & Technology. Ilya L. Aranovich, GTC Licensing Manager, added, "We are excited to extend our track record of providing leading-edge solutions to improve the economics of naphtha-based crackers for clients in the CIS region and around the world."
GTC Technology, based in Houston, Texas, is a global licensor of refinery and petrochemical process technologies that offers a variety of approaches for managing aromatics and other high value added molecules in petrochemical complexes. These technologies include the GT-BTX Extractive Distillation process for recovery of aromatics; GT-Styrene® Extractive Distillation process for recovery of styrene monomer, GT-C5SM Extractive Distillation process for recovery of isoprene, piperylene and DCPD, GT-TolAlkSM/GT-TransAlkSM– alkylation/transalkyation of Toluene to produce mixed xylenes; and others.
PJSC Nizhnekamskneftekhim (NKNK), one of the largest petrochemical companies in Europe, is the leader in the production of synthetic rubbers and plastics in the Russian Federation. NKNK is part of the TAIF Group. The main production facilities are located in the city of Nizhnekamsk, Republic of Tatarstan. The company was founded in 1967.
MOSCOW (MRC) -- As a consequence of the fire incident at the North Harbour at BASF SE in Ludwigshafen on October 17, 2016, BASF has to declare Force Majeure on deliveries of dispersions, dispersion powders and hotmelts on acrylic monomer basis from BASF’s sites in Ludwigshafen and Tarragona until further notice, said the company on its site.
While the plants for the above mentioned products are not affected by the incident, impacts on logistics as well as raw materials are given. Due to the fire, the raw material supply of the steam crackers was halted; also other Verbund plants were idled or production reduced. Many plants, such as one of the steam crackers, have resumed operations in the meantime.
As of today product inventories are nearly exhausted and the production output is restricted due to still limited access to key raw materials. Under the current circumstances a delivery via barge, rail or tank car is also limited.
BASF is currently not able to specify how long this situation will last. Meanwhile BASF is implementing measures to limit the consequences for its customers and will continuously inform them about the development and the details regarding the supply capability with the affected products.
As MRC informed earlier, BASF said it declared force majeure for the purchase of naphtha, ethylene and propylene, freeing it from contractual liabilities towards external suppliers of the chemicals.
BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of over EUR74 billion in 2014 and over 113,000 employees as of the end of the year.
MOSCOW (MRC) -- INEOS Styrolution has announced that it signed an acquisition agreement for the global K-Resin styrene-butadiene copolymers (SBC) business of Chevron Phillips Chemical Co. (Chevron Phillips Chemical) and Daelim Industrial Co. Ltd., the current joint venture owners, as per Hydrocarbonprocessing.
The parties have agreed not to disclose the intended purchase price or any other financial details. The transaction, subject to customary closing conditions and regulatory approvals, includes the purchase of the equity interests of K.R. Copolymer Co. Ltd (KRCC), K-Resin SBC intellectual property and other assets related to the SBC business. This acquisition, once completed, will allow INEOS Styrolution to supply its customers from production sites in the Americas, Europe, Middle, Africa (EMEA) and Asia Pacific.
The acquisition underlines INEOS Styrolution’s commitment to its "Triple Shift" growth strategy with a strong dedication to its styrenic specialties business, well-balanced split across all focus industries and improved global presence.
K-Resin SBC and INEOS Styrolution’s existing SBC brands Styrolux and Styroflex complement each other well. The combined business will offer a broad selection of SBC products to customers across the globe. The broader SBC product portfolio will enable the combined business to better serve its customers.
"This measure marks our first acquisition and drives the further implementation of our Triple Shift growth strategy. We will strengthen our ability to offer specialty styrenics products to our customers, and increase our production capacities in Asia. Our customers will benefit from our ability to supply and support their world-wide demand from our expanded geographic footprint, with SBC manufacturing and research and development centers in all major regions, and from the well-known premium K-Resin SBC brand," says Kevin McQuade, CEO INEOS Styrolution. "With this investment we will further enhance our global presence in styrenics."
Chevron Phillips Chemical and Daelim Industrial Company founded KRCC as a joint-venture in February 2000. The K-Resin SBC plant is located in Yeosu Petrochemical Complex, the largest petrochemical complex on the southern coast of South Korea.
We remind that, as MRC informed previously, in May 2016, INEOS Enterprises reached an agreement in principle, to sell INEOS Styrenics, its Expandable Polystyrene Business (EPS), to Synthos S.A. for EUR80m. INEOS Styrenics produces high quality Expandable Polystyrene (EPS) for the building, construction and packaging industries at manufacturing sites at Wingles and Ribecourt in Northern France and Breda in the Netherlands. The three production sites are supported by its technology Centre in Breda, which is a purpose-built research, development and product testing facility, including a research laboratory and pilot plant facilities. Customer Service, Logistics and Finance groups are also located in Breda. The business employs c. 250 people who will transfer as part of this deal. And in early September 2016, INEOS Enterprises completed the sale of INEOS Styrenics, its EPS business, to Synthos S.A. for EUR80m.
INEOS Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.