PepsiCo invests USD15m in Closed Loop Partners

PepsiCo invests USD15m in Closed Loop Partners

MOSCOW (MRC) -- PepsiCo Beverages North America announced that it is investing USD15m in Closed Loop Partners' Leadership Fund, to strengthen recycling infrastructure and build circular supply chains, said the company.

Closed Loop Partners is a New York-based investment firm focused on building the circular economy. The Leadership Fund a private equity fund that acquires and grows companies, including in the packaging value chain. PepsiCo has collaborated with Closed Loop Partners for several years, beginning in 2014 as a founding member of the original Closed Loop Infrastructure Fund. Additionally, they are an investor in the Closed Loop Partners Beverage Fund, sponsored by the American Beverage Every Bottle Back Initiative.

Through investments in recycling infrastructure, PepsiCo hopes to achieve several sustainable packaging targets. By 2030, all Pepsi-branded products will be offered in 100% recycled polyethylene terephthalate (R-PET) bottles, with Pepsi Zero Sugar beginning to be sold in 100% R-PET bottles by 2022. Demand for post-consumer recycled (PCR) content has significantly increased in recent years, as fast moving consumer goods (FMCG) companies have pledged to use PCR content in their packaging over the next five to 10 years.

Low recycling rates in the US may not be able to keep up with demand. "The recycling landscape in America continues to be challenging, and as companies - including PepsiCo - set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and action to increase access to recycled material,” said Jason Blake, Chief Sustainability Officer and SVP at PepsiCo Beverages North America.

US PET bottle recycling rates dropped to 26.6% in 2020, down from 27.9% in 2019, according to NAPCOR’s 2020 PET Recycling Report. Low collection, coupled with strong demand has pushed R-PET prices to record highs in 2021.

As per MRC, PepsiCo wants to cut the use of virgin plastic by 50% serving and use 50% recycled content in plastic packaging by 2030. Beverage and food supplier PepsiCo has announced a new goal to cut virgin plastic per serving by 50 per cent across its global food and beverage portfolio by 2030 as part of its new “pep+,” or PepsiCo Positive, company initiative.

Also, we remind, RT-Invest (Moscow, part of Rostec) will invest 6 bn rubles. in the construction of a new plant in the Moscow region for the production of recycled polyethylene terephthalate (r-PET) from packaging waste, which will be in demand from Mars, PepsiCo and Danone operating in Russia.
MRC

Crude oil prices rise to almost USD84 as Omicron variant impact expected to be short-lived

Crude oil prices rise to almost USD84 as Omicron variant impact expected to be short-lived

MOSCOW (MRC) -- Oil rose to nearly USD84 a barrel on Tuesday, supported by tight supply and expectations that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery, reported Reuters.

A lack of capacity in some countries has meant that supply additions by the Organization of the Petroleum Exporting Countries (OPEC) are running below the increase permitted under a pact with its allies.

On the demand side, Federal Reserve Chair Jerome Powell said on Tuesday he expects the economic impact of Omicron to be short-lived, adding that ensuing quarters could be very positive for the economy after the surge driven by the variant subsides.

Brent crude gained USD2.85, or 3.52%, to USD83.72 a barrel, its highest price since early November, after having lost 1% in the previous session.

US West Texas Intermediate (WTI) rose USD2.99, or 3.8%, to USD81.22, also its highest price since mid-November. On Monday, it fell 0.8%.

"Combination of facts - that demand is going to be stronger than anticipated and that OPEC's supply may not grow as fast as the demand - is why prices are climbing," said Phil Flynn, senior analyst at Price Futures Group.

Major economies have avoided a return to severe lockdowns, even as COVID-19 infections have soared. European jet fuel refining margins, for example, are back to pre-pandemic levels as supplies in the region tighten and global aviation activity recovers despite the spread of Omicron.

"Omicron has yet to wreak the havoc of the Delta variant and may never do so, keeping the global recovery on track," said Jeffrey Halley, analyst at brokerage OANDA.

The US government on Tuesday also estimated that US oil output would be lower this year than previously expected, while total oil demand would be higher than earlier forecast.

Production is estimated to rise by 640,000 barrels per day this year, lower than the previous month's forecast of a 670,000 bpd rise, and expected to increase by another 610,000 bpd in 2023.

Total oil demand is now expected to rise by 840,000 bpd for the year, higher than the 700,000-bpd increase expected last month. It is estimated to rise by another 330,000 bpd in 2023.

Brent rose by 50% in 2021 and has rallied further in 2022, with investors expecting increasing demand while OPEC and its allies, collectively known as OPEC+, slowly ease record output cuts made in 2020.

Recent outages in Libya have also buoyed prices, and the National Oil Corp said on Tuesday it was suspending exports from the Es Sider terminal. A weaker US dollar also helped to support oil because it makes oil cheaper for buyers holding other currencies and tends to reflect higher risk appetite among investors.

Upcoming reports on US inventories are expected to show crude stockpiles fell by about 2 million barrels.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier last year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

ExxonMobil Q4 2021 earnings poised to exceed pre-pandemic level

ExxonMobil Q4 2021 earnings poised to exceed pre-pandemic level

MOSCOW (MRC) -- ExxonMobil's fourth quarter profit should top Wall Street's consensus and surpass its pre-pandemic levels, lifted by better-than-expected earnings from oil and gas, reported Reuters with reference to analysts.

Credit Suisse, Scotiabank and JPMorgan have raised their fourth quarter earnings estimates following Exxon's flagging of sharply higher oil and gas operating profit last week. Official results are due on Feb. 1.

The higher earnings outlooks lifted Exxon shares 3.8% on Monday to USD63.51 on top of Friday's less than 1% gain. The stock rose 48% last year but remains below where it traded two years ago.

In 2020, the largest US oil producer suffered a historic USD22.4 B loss from falling oil prices and lower refining margins. Cost cuts and energy price hikes allowed it to pay down debt and plot a share buyback program this year.

An Exxon securities filing signaled quarterly results "above the midpoint" of prior guidance and "well above pre-pandemic levels," Credit Suisse analyst Manav Gupta wrote in a note on Friday.

The company could earn USD8.2 B, or USD1.93 per share, according to the mid-point average estimate of the three banks that have updated their estimates, excluding one-time items. That is above analysts' adjusted profit of USD1.79 per share as tallied by Refinitiv IBES.

As MRC wrote before, Exxon also signaled mark-to-market gains of up to USD1.1 B for oil and gas and refined products. Proceeds from asset sales including its U.K. North Sea assets could deliver up to USD500 MM, according to a Securities and Exchange Commission filing.

We remind that ExxonMobil said on Dec. 27, its Baytown, Texas, refinery continued to operate at reduced rates following a fire on Dec. 23, and that the unit involved remained shut down. The company has not yet determined the cause of the fire, but said it was continuing to empty the unit so it could safely enter the facility and assess what impact it would have on production. A filing with the Texas Commission on Environmental Quality said the fire occurred at the facility's hydro desulfurization unit 1.

Exxon's Baytown facility is home to a chemical plant, an olefins plant and the country's fourth-biggest oil refinery, with capacity to process 560,500 bpd of crude.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

ExxonMobil rejects USW modified proposal in Texas refinery lockout

ExxonMobil rejects USW modified proposal in Texas refinery lockout

MOSCOW (MRC) -- ExxonMobil on Thursday rejected a proposal by the United Steelworkers union (USW) to end an eight-month lockout of about 600 workers at the company’s Beaumont, Texas, refinery, reported Reuters with reference to the company's statement.

The union's proposed modifications to contract language do not meet the company's goals and would increase costs, Exxon said. The company told the union "we remain far apart," it said on its Embeaumont.com website.

The two sides met for about an hour on Thursday in their first negotiating session since late October, said Bryan Gross, USW international representative.

As MRC informed before, ExxonMobil said on Dec. 27, its Baytown, Texas, refinery continued to operate at reduced rates following a fire on Dec. 23, and that the unit involved remained shut down. The company has not yet determined the cause of the fire, but said it was continuing to empty the unit so it could safely enter the facility and assess what impact it would have on production. A filing with the Texas Commission on Environmental Quality said the fire occurred at the facility's hydro desulfurization unit 1.

Exxon's Baytown facility is home to a chemical plant, an olefins plant and the country's fourth-biggest oil refinery, with capacity to process 560,500 bpd of crude.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Trinseo raises January prices for PC/ABS grades and MAGNUM ABS in Europe

Trinseo raises January prices for PC/ABS grades and MAGNUM ABS in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all PULSE polycarbonate (PC)/ acrylonitrile-butadiene-styrene (ABS) and for all MAGNUM ABS automotive market products in Europe, according to the company's press release.

Effective January 1, 2022, or as existing contract terms allow, the contract and spot prices for the products stated above rose by EUR200 per metric ton.

As MRC reported earlier, Trinseo last raised its prices for all PULSE PC/ABS grades in the EMEA region on November 1, 2021 by EUR300 per metric ton.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) decreased in the first eleven months of 2021 by 11% year on year due to a major fall of imports and higher exports. Thus, overall estimated consumption in Russia totalled 74,300 tonnes in January-November 2021 versus 83,600 tonnes a year earlier.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC