TotalEnergies posts sharp rise in 2021 profit due to surging commodity prices

TotalEnergies posts sharp rise in 2021 profit due to surging commodity prices

MOSCOW (MRC) -- French oil major TotalEnergies on Thursday reported a sharp upswing in full-year profit, boosted by a huge rebound in commodity prices, according to CNBC.

The oil and gas giant said full-year 2021 adjusted net income came in at USD18.1 billion, while net income came in at USD16 billion. That compared with adjusted net income of USD4.1 billion and a net loss of USD7.2 billion the previous year.

Analysts polled by Refinitiv had expected full-year 2021 adjusted net profit to come in at USD17.1 billion.

For the final quarter of 2021, TotalEnergies reported adjusted earnings of USD6.8 billion, beating analyst expectations of USD6.1 billion.

TotalEnergies CEO Patrick Pouyanne said in a statement that the firm’s “multi-energy model demonstrated its ability to take full advantage of the very favorable environment, particularly in the LNG and electricity sectors.”

A surge in global gas prices through the final months of 2021, coupled with an oil price rally to seven-year highs, has seen the world’s largest fossil fuel giants rake in bumper revenues.

British oil major BP reported Tuesday that profits soared to an eight-year high of almost USD13 billion, while rival Shell posted annual revenues of USD19.3 billion. US competitors Chevron and Exxon Mobil recorded full-year net profits of USD15.6 billion and USD23 billion, respectively.

It marks a dramatic shift from 2020 when the oil and gas industry endured a dreadful 12 months by virtually every measure.

As MRC reported previously, earlier this month, TotalEnergies and Plastic Energy formed a joint venture to build a 33,000 tonne/year chemical recycling plant for plastics in Seville, south Spain. Financial details were not disclosed. The facility will be built within Plastic Energy facilities in Seville and expected to start up in 2025.

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.

TotalEnergies is a broad energy company that produces and markets energies on a global scale: oil and biofuels, natural gas and green gases, renewables, and electricity. The company rebranded itself from Total to TotalEnergies during Q2 2021. The French firm has announced allocating part of surplus revenues to share buybacks. Its 105,000 employees are committed to energy that is ever more affordable, clean, reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
MRC

YNCC shut its cracker in Yeosu after the blast

YNCC shut its cracker  in Yeosu after the blast

MOSCOW (MRC) -- On Friday, Yeochun NCC (YNCC) Co., South Korea’s major petrochemical producer, shut down its cracker in Yeosu, South Korea after an explosion at the complex killed four people and injured four, reported The Korea Economic Daily.

The blast hit the No. 3 plant including a naphtha cracker with an annual ethylene capacity of 470,000 tons at around 9:26 am local time in Yeosu, a coastal city about 340 kilometers southwest of Seoul, according to the company and the government.

YNCC said the explosion took place during a test of the factory’s heat exchange system, although investigations by the authorities will figure out the exact cause of the incident.

The labor ministry ordered the company to suspend the plant’s operations and launched a probe.

YNCC, a 50-50 joint venture founded in 1999 between Hanwha Solutions Corp. and DL Chemical Co., formerly known as Daelim Industrial Co., operates a petrochemical complex to produce a total of 2.3 million tons of ethylene. The complex has two more crackers with each capacity of 900,000 tons and 915,000 tons.

As MRC reported earlier, YNCC restarted its No. 2 naphtha cracker in Yeosu with a delay on 17 January, 2021, following a two-and-a-half-month shutdown for expansion. The initial start-up was scheduled on 14 January, 2021. The expanded cracker is now capable of producing 915,000 tons/year of ethylene, up from the previous 580,000 tons/year and 550,000 tons/year of propylene, up from 270,000 tons/year previously. The new ethylene capacity would be supplied to DL Chemical’s new metallocene linear low density polyethylene (mPE) plant at the adjacent location.

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.

South Korea’s Yeochun NCC (YNCC) pyrolyzes naphtha to produce basic feedstock materials for the petrochemical industry. YNCC, a joint venture between South Korean firms Hanwha and DL Chemical Co, is a key exporter of ethylene and propylene in the country.
MRC

Chemplast Sanmar posts net profit growth in Q3FY22

Chemplast Sanmar posts net profit growth in Q3FY22

MOSCOW (MRC) -- Chemplast Sanmar Ltd., a major chloralkali manufacturer based in India, announced its results for the third quarter ended December 31, 2021, according to Kemicalinfo.

The company’s net profit grew 56.5% to Rs 2.37 billion for the period ended December 31, 2021 as against net profit of Rs 1.51 billion for the previous quarter.

Net sales decreased 13.6% to Rs 14.65 billion during the period ended December 31, 2021 as compared to Rs 16.95 billion during the previous quarter.

The company’s net profit grew 48.1% to Rs 2.37 billion for the period ended December 31, 2021 as against net profit of Rs 1.59 billion during the prior-year quarter.

Net sales increased 34.2% to Rs 14.65 billion during the period ended December 31, 2021 as compared to Rs 10.91 billion during the prior-year quarter.

Chemplast Sanmar Ltd is engaged in the business of manufacture and selling polyvinyl chloride (PVC) resins, caustic soda, chlorochemicals, refrigerant gas and industrial salt.

Ramkumar Shankar, MD, Chemplast Sanmar, said: “The demand outlook for both paste PVC and suspension PVC is quite strong due to significant deficit and high import dependence in the domestic market. Increasing tight supply at the global level for both these products augurs well for domestic manufacturers like us. With our dominant position in the Indian market and expansion plans to cater to the growing demand, we are well-placed to benefit from uptick in PVC market.”

As MRC reported earlier, Chemplast Sanmar undertook a planned shutdown at its Cuddalore PVC unit in September, 2020. Thus, the maintenance works at this unit began on September 27, 2020. The unit remained off-line for about 4-5 days. Located in Tamil Nadu, India, the Cuddalore PVC unit has a production capacity of 300,000 mt/year.

According to MRC's ScanPlast report, Russia's overall PVC production reached 87,100 tonnes in 2021, down by 3% year on year. Three producers slightly decreased their output.

Chemplast Sanmar Limited is a chemical company based in Chennai, Tamil Nadu. It is part of Sanmar Group which has businesses in Chemicals, Shipping, Engineering and Metals. It has a turnover of over Rs.65 billion and a presence in some 25 businesses, with manufacturing units spread over numerous locations in India.Chemplast Sanmar's manufacturing facilities are located at Mettur, Panruti, Cuddalore and Ponneri in Tamil Nadu, Shinoli in Maharashtra, and Karaikal in the Union Territory of Puducherry. It is a major manufacturer of PVC resins, chlorochemicals and piping systems. The Cuddalore PVC project commissioned in September 2009 is the largest such project to come up in Tamil Nadu. It's aggregate capacity of 235,000 tons makes it one of the largest PVC players in India.
MRC

South Korean petrochemical plant blast kills four

MOSCOW (MRC) -- South Korean authorities have ordered workers off one of petrochemical company Yeochun NCC’s (YNCC) naphtha crackers in the city of Yeosu after a blast killed four people and injured four, said Reuters.

The incident at YNCC’s third plant in Yeosu comes as businesses brace for greater scrutiny under a new South Korean law punishing management for incidents involving worker death.

The regional office of South Korea’s labour ministry told Reuters that the ministry ordered workers to halt work at the entire third plant.

As per MRC, South Korea's Yeochun Naphtha Cracking Center (YNCC), a major petrochemical producer in the country, increased capacity at Yeosu Cracking Unit No. 2 on December 23 (South Korea). The capacity of this cracker with a capacity of 915,000 tonnes of ethylene and 590,000 tonnes of propylene per year was reduced on December 20 due to a technical breakdown.

Yeochun Naphtha Cracking Center (YNCC) operates the naphtha cracker. The company pyrolyzes naphtha to produce key feedstocks for the petrochemical industry. YNCC products include ethylene, propylene, propane, C4 blend, pyrolysis gasoline, hydrogen, benzene, toluene, xylene, cyclo-pentane, styrene monomer, butadiene, ethylene, benzene, MTBE, butene-1, isobutene, isobutane, n-butane etc. The company was founded in 1999 and is based in Seoul, South Korea.
MRC

PBF Energy weighs renewable diesel project at Chalmette refinery

PBF Energy weighs renewable diesel project at Chalmette refinery

MOSCOW (MRC) -- PBF Energy aims to begin production at a planned renewable diesel project at its Chalmette refinery in Louisiana in the first half of 2023, said the company.

The 20,000 bbl/day project will incorporate certain idled assets, including an idle hydrocracker, along with a newly-constructed pre-treatment unit. PBF has been advancing the project for more than a year, with a focus on completing engineering, permitting, securing longer-lead time equipment and commencing initial site preparations, it said.

At the same time, PBF continues discussions with potential strategic and financial partners, it added. Last year, company officials indicated a project cost of USD550m.

PBF Energy expects to begin producing renewable diesel at its Chalmette refinery in the first half of 2023, marking the company's deepest move yet into lower-carbon business lines. PBF has already delayed plans to begin the 20,000 b/d renewable diesel project at Chalmette, after announcing in April of last year that it planned to convert an idled hydrocracker at the facility within six months.

As MRC wrote previously, in H1 September, 2021, US-based PBF Energy began the process of restarting aromatics production in Chalmette, southeast Louisiana, USA after an unscheduled maintenance, caused by Hurricane Ida. The plant's production capacity is 185,000 mt/year of benzene, 180,000 mt/year of toluene and 270,000 mt/year of xylenes. PBF Energy restarted most of the production at its refinery in Chalmetta around September 17, 2021. The facility was shut down due to a power outage when Hurricane Ida hit the coast on 29 August.

Benzene is feedstock for the production of styrene monomer (SM), which, in its turn, is the main raw material for the production of polystyrene (PS).

As per ICIS-MRC Price Report, Russia's prices of domestic polystyrene (PS) rose significantly this month.
Iranian general purpose polystyrene (GPPS) to be shipped this month was offered in the domestic market at Rb193,000-195,000/tonne CPT Moscow, including VAT. Prices of European styrene monomer (SM) increased this week and were in the range of USD1,460-1,503/tonne.

PBF Energy Inc. is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio.
MRC