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

COVID-19 - News digest as of 11.01.2022

1. Petronas releases its annual activity outlook for 2022–2024 that provides insights into industry trends

MOSCOW (MRC) -- Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, has released its annual activity outlook for 2022-2024, which provides insights into industry trends, demand outlook and the upcoming activities of the company’s upstream, gas + new energy and downstream businesses, as per the company's press release. For 2022, Petronas anticipates the path towards sustained demand recovery to remain fragile and uncertain as the oil market adjusts to both short and long-term landscapes, driven by the resumption of economic activities amidst the COVID-19 pandemic.

MRC

Petronas releases its annual activity outlook for 2022–2024 that provides insights into industry trends

Petronas releases its annual activity outlook for 2022–2024 that provides insights into industry trends

MOSCOW (MRC) -- Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, has released its annual activity outlook for 2022-2024, which provides insights into industry trends, demand outlook and the upcoming activities of the company’s upstream, gas + new energy and downstream businesses, as per the company's press release.

For 2022, Petronas anticipates the path towards sustained demand recovery to remain fragile and uncertain as the oil market adjusts to both short and long-term landscapes, driven by the resumption of economic activities amidst the COVID-19 pandemic.

Petronas’ Vice President of Group Procurement, Freida Amat said: “While accelerated energy transition will create further challenges to the traditional oil and gas business, industry players must be innovative and remain cost-competitive to ensure projects and production remain feasible in the uncertain economic climate for the sustainability of the industry.”

Petronas foresees a positive outlook for drilling rigs activity and a steady outlook for fabrication of fixed structures and subsea facilities, supply of line-pipes, underwater services, as well as decommissioning activities. However, a modest outlook is expected for installation of float-over barges.

In the report, Petronas also shares insights expected to have a positive impact on the industry.

Among the highlights are:

- Petronas is pushing further for the usage of cleaner energy and pursuit for a lower carbon profile as the company ventures into hydrogen business, presenting opportunities for oil and gas services and equipment industry players.
- Petronas Ventures, as the company’s venture capital arm, will continue to drive technology innovation and maintain a competitive edge to support its core oil and business for further growth.
- Efficiency as an enabler in pursuit of maximizing assets is key to continuous improvement to operations. Highest degree of efficiency in project delivery practices enables better project outlook, creates value for the industry and maintains its competitive advantage and sustainability.

As MRC reported earlier, in January 2021, Petronas said it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy.

We remind that in June 2019, Petronas and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.

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.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC