ExxonMobil signals return to annual profit for 2021 on stronger oil and gas prices

ExxonMobil signals return to annual profit for 2021 on stronger oil and gas prices

MOSCOW (MRC) -- ExxonMobil Corp has signaled a return to annual profit for 2021 as stronger oil and gas prices drove a gain of up to USD1.9 B in operating profits that exceeded one-time charges, reported Reuters.

The largest US oil producer issued a snapshot of final quarter results that showed it expects sequentially higher profit from oil and gas production. Operating profits in refining and chemicals will be flat to lower, a securities filing showed. Official results are due out Feb. 1.

In 2020, Exxon suffered a historic USD22.4 B loss on writedowns from falling oil prices and lower refining margins. Cost cuts coupled with energy price gains have allowed it to pay down debt and plot a share buyback program next year.

Analysts forecast an adjusted profit of USD1.76 per share for the quarter, according to Refinitiv IBES data, compared to 3 cents a share excluding writedowns a year-ago.

The regulatory filing signaled one-time charges for asset impairments and contractual costs could lower oil and gas earnings by up to USD1.2 B. It did not provide details on the production assets affected.

Exxon also said lower margins in chemicals could lower results by USD600 MM-USD800 MM, compared to the USD2.14 B third-quarter chemicals profit. Refining margins could stay flat or drop by USD200 MM compared to the USD1.23 B profit the previous quarter.

Offsetting the negative impacts, Exxon signaled mark-to-market gains of up to USD1.1 B for oil and gas and in refined products. It also said proceeds from asset sales including its U.K. North Sea assets could deliver up to USD500 MM.

The rosier outlook allowed Exxon to extend planned a USD20-25 B per year outlay on new projects through 2027, including USD2.5 B per year on carbon reductions, the company has said, adding it expects to double its pre-pandemic annual profit by 2025, the company has said. About 60% of its spending will be in key growth areas of US shale, Guyana, Brazil, LNG, and chemical products.

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.
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MRC team wishes Merry Christmas and Happy New Year!

MOSCOW (MRC) -- Dear readers of MRC!

Merry Christmas & Happy New Year!

We wish you the New 2022 Year to be successful for you personally and for the business as well.

All of MRC staff join in saying "thank you" and wishing you a happy holiday and prosperous new year.

On this special day, we wish you happiness, prosperity and success, hoping that we continue our association through many more wonderful years ahead!

Best wishes,

MRC staff.

mrcplast.com

COVID-19 - News digest as of 30.12.2021

1. Crude oil prices rise on lower US oil inventories and concerns that rising coronavirus cases might reduce demand

MOSCOW (MRC) -- Oil prices rose on Wednesday, after government data showed US crude and fuel inventories fell last week, offsetting concerns that rising coronavirus cases might reduce demand, reported Reuters. Brent crude rose 29 cents to settle at USD79.23 a barrel. US West Texas Intermediate (WTI) crude rose 58 cents to settle at USD76.56 a barrel. In the United States, the average number of daily confirmed coronavirus cases hit a record high of 258,312 over the last seven days, a Reuters tally on Wednesday found. Both oil futures contracts earlier traded at their highest in a month after US government data showed lower oil inventories.

MRC

LLDPE production rose by 15% in January-November in Russia

MOSCOW (MRC) -- Russia's overall linear low density polyethylene (LLDPE) production totalled 5,531,000 tonnes in the first eleven months of 2021, up by 15% year on year. ZapSibNeftekhim accounted for the main increase in the output, according to MRC's ScanPlast report.

November total LLDPE production in Russia increased to 58,600 tonnes, whereas this figure was at 35,600 tonnes a month earlier, all producers decreased their capacity utilisation in October. Thus, overall LLDPE output reached 5,531,000 tonnes in January-November 2021, compared to 4,2829,000 tonnes a year earlier. All producers raised their output of LLDPE, but ZapSibNeftekhim accounted for the greatest increase in production.

Structure of PE production over the reported period looked as follows.

November LLDPE production at ZapSibNeftekhim's facilities reached 32,300 tonnes against 18,400 tonnes a month earlier. In general, the total output of linear polyethylene at the Tobolsk plant reached the level of 304,900 tonnes in January-November, up 20% year on year.

Last month, LLDPE production at the facilities of Nizhnekamskneftekhim increased to 17,900 tonnes against 13,700 tonnes in October, the Nizhnekamsk producer stopped production in October for a short turnaround. Thus, overall production of this PE grade totalled 205,400 tonnes over the stated period, up by 4% year on year.

Kazanorgsintez for eleven months of this year produced 42,800 tonnes of linear polyethylene against 30,800 tonnes a year earlier.

MRC

Odfjell to expand terminals storage capacity for petrochemicals in Houston

Odfjell to expand terminals storage capacity for petrochemicals in Houston

MOSCOW (MRC) -- Odfjell is constructing a new tank bay at Odfjell Terminal Houston (OTH), continuing to expand and invest in its terminals platform to support ongoing regional growth in the chemical industry, as per the company's press release.

Odfjell is investing in and expanding its terminals platform with the addition of a new, modern, automated tank bay. Bay 13 at Odfjell Terminals Houston (OTH) will increase capacity by approximately 9% to 413,400 cubic meters (cbm). The expansion project is consistent with OTH's strategy of positioning itself for healthy demand for storage capacity in the specialty/petrochemical industry in the US Gulf Coast region, where OTH has been operating at or near full capacity for years.

Bay 13's nine new tanks will be comprised of a mix of stainless steel and carbon-steel, with a total capacity of 32,400 cbm. The new tanks will allow OTH to relocate and consolidate products of existing customers and optimize the use of its current storage capacity for new customers and products.

The tank bay will be highly automated, requiring less manual intervention, and will benefit from the ongoing Digital Transformation Program, which includes an advanced ERP system and automated control systems.

Bulk chemicals, including intermediate and specialty chemical products exports in the US Gulf are expected to increase by 2.3 million metric tonnes by 2024, while import volumes are expected to increase by 389,000 metric tonnes by 2030. As a result, storage demand is expected to rise and the development of Bay 13 will assist in further optimizing OTH and allow Odfjell Terminals to support industry growth for new and existing customers.

OTH has been a leading provider of storage, transfer, and distribution services to the liquid bulk chemical industry for nearly four decades.

With its current 119 tanks, two deep water ship docks, four barge berths and one of the largest stainless steel storage capacities of any independent tank terminal in the world, OTH is strategically located near the entrance of the Houston ship channel and serves as a major international hub for chemical import and export to and from the United States. Along with the east coast presence of its terminal in Charleston, SC, Odfjell’s strategically located assets are well placed to continue to play an integral role in the global and regional chemical trades to and from the United States.

Bay 13 is set to begin construction in the first quarter of 2022 and is expected to be operational by the end of 2023. The expansion will be fully financed through an existing credit facility.

As MRC informed earlier, in July, 2020, Odfjell (Bergen, Norway) says a significant expansion of its European chemicals storage capacity had been completed at the port of Antwerp, Belgium.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

Odfjell Terminals Houston (OTH), is owned by the Joint Venture Odfjell Terminals US which is owned 51% by Odfjell SE and 49% by Northleaf Capital Partners.
MRC