Saudi Aramco 2021 profit more than doubles on higher oil prices

Energy giant Saudi Aramco says its 2021 net profit soared by more than 120 percent due to higher crude oil prices, as global economic growth recovered from a pandemic induced downturn, said Aljazeera.

The announcement came on Sunday hours after Yemen’s Houthi rebels – against whom Saudi Arabia leads a military coalition – targeted several locations, including Aramco facilities, in cross-border armed drone attacks.
Aramco, Saudi Arabia’s cash cow, did not say if the attacks caused any damage.

“Aramco’s net income increased by 124 percent to USD110bn in 2021, compared to USD49bn in 2020,” the company said in a statement.

Aramco achieved a net income of USD88.2bn in 2019 before the coronavirus pandemic hit global markets, resulting in huge losses for the oil and aviation sectors, among others. A strong rebound last year saw oil prices recover from their 2020 lows, and they have soared to highs not seen since 2014 this year, amid global supply shortages and Russia’s invasion of Ukraine.

Aramco floated 1.7 percent of its shares on the Saudi bourse in December 2019, generating USD29.4bn in the world’s biggest initial public offering. "Our strong results are a testament to our financial discipline, flexibility through evolving market conditions and steadfast focus on our long-term growth strategy,” Aramco President and CEO Amin Nasser said in a statement.

As MRC informed before, in June 2020, Aramco finalized its USD69 billion acquisition of a 70% stake in Saudi Basic Industries Corp., the Middle East's biggest petrochemical maker. SABIC reported more than a fivefold year-on-year increase in its Q3 net profit to USD1.49 billion thanks to higher average sales prices.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.

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Saudi Arabia's state oil company Aramco, under pressure from the West to boost output amid soaring prices, pledged on Sunday to hike investments by around 50% this year as it reported a doubling in 2021 profits, said Reuters.

The capex guidance was 25-57% higher than the USD31.9bn spent in 2021, “with further growth expected until around the middle of the decade”, Saudi Aramco said on 20 March. It noted that “substantial new investment is required to meet demand growth, against a broader decline in upstream investment across the industry globally”.

Saudi Aramco is looking at raising its crude oil maximum sustainable capacity (MSC) to 13m bbl/day by 2027, up from 12m bbl/day currently, and boosting gas production by more than 50% by 2030. Heightened supply worries have sent crude prices soaring above USD100/bbl this year amid financial sanctions imposed on Russia - the world’s second biggest crude exporter after Saudi Arabia - following Moscow’s invasion of Ukraine on 24 February.

The company’s capex in 2021 was up 18% from the previous year due to “increased activities in relation to crude oil increments, Tanajib Gas Plant and development drilling programs”, Saudi Aramco said. The Saudi energy major more than doubled its 2021 net profit to riyal (SR) 412.4bn (USD110bn), with sales up by more than 75%, on the back of strong oil prices, and improved refining and chemical margins following incorporation of petrochemical major SABIC’s results.

Aramco’s free cash flow more than doubled to USD107.5bn in 2021, with gearing ratio reduced to 14.2% from 23.0% in the previous year. Full-year 2021 cash dividend totaled $75bn, with $18.8bn declared for the fourth quarter which will be paid out in the first quarter of 2022. Aramco’s board further recommended that $4bn in retained earnings be capitalized and bonus shares be distributed to shareholders, with one bonus share granted for every 10 shares held.

As MRC informed before, in June 2020, Aramco finalized its USD69 billion acquisition of a 70% stake in Saudi Basic Industries Corp., the Middle East's biggest petrochemical maker. SABIC reported more than a fivefold year-on-year increase in its Q3 net profit to USD1.49 billion thanks to higher average sales prices.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world"s most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.

mrchub.com

MRC) -- Mol Petrolkemiai, a unit of oil and gas company MOL, laid the cornerstone of a HUF 65bn propylene plant in Tiszaujvaros (about 158 km northeast of the capital) on Wednesday, according to BBJ.

By investing EUR 180 million, MOL Petrolkemia builds a new plant in Tiszaujvaros where its foundation stone laying ceremony took place this Wednesday. 7-8% of the investment costs are covered by Hungarian taxpayers through a government decision.

The production unit, which has an annual manufacturing capacity of 100,000 tons of propylene per year, covers a quarter of MOL’s chemical material needs and increases its self-sufficiency.

MOL Group is an integrated, international oil and gas company that is active in over 30 countries and has a track record of more than 80 years in research and production. Being present through its oil industry activities in 14 countries and running production in nine countries, it has a diverse portfolio: it operates three refineries and two petrochemical plants under integrated supply chain management in Hungary, Slovakia and Croatia.

The new plant of MOL Petrolkemia will be of key importance since the planned 100,000 tons of propylene is set to provide a quarter of the chemical material needs of the corporation. The investment integrates well into MOL Group’s updated strategy and is an important step towards chemical transformation and energy transition since the company can gradually increase the ratio of non-fuel products in its portfolio.

In the last 5-10 years MOL has turned Tiszaujvaros into a unique chemical center so by now the city is undoubtedly considered among the most modern petrochemical metropolises. We have a butadiene plant already built here, as well as a synthetic rubber plant that was built in cooperation with Japanese experts, and the town also hosts the largest industrial investment of the last 30 years, the polyol complex built for EUR 1.3 billion, Zsolt Hernadi, Chairman-CEO of MOL Group said.

As MRC reported earlier, The MOL transformation story began in 2016 when it was one of the first within the oil and gas sector to admit that there were gloomy days ahead and that it was essential to begin the transformation. To plot out the path to a low-carbon future, the company published MOL Group 2030+. Five years after the launch of that transformation plan, the Hungarian energy company has revised its goals with an updated strategy.

We remind that in March 2021, MOL became a biofuel producer through the realization of an investment in the Danube Refinery. Bio feedstock will be co-processed together with fossil materials increasing the renewable share of fuels and reducing up to 200,000 tons /year CO2 emission without negatively affecting fuel quality.

MOL is the largest Hungarian oil, gas and petrochemical group, engaged in exploration and production, transportation of hydrocarbons, as well as the operation of a network of trunk gas pipelines. TVK is a 100% subsidiary of MOL. TVK manufactures HDPE, LDPE, and PP.

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MRC) -- Plasticizers market size is valued at USD20.44 billion in 2020 and is projected to reach USD32.53 billion by 2028, growing at a CAGR of 6.09% from 2021 to 2028, according to SpecialChem.

The growing demand for flexible PVC for different applications such as flooring & wall coverings, coated fabrics, film & sheet, wire & cable, & consumer goods, and expanding packaging industries are expected to drive the plasticizers market over the predicted years.

The growing demand for flexible polyvinyl chloride (PVC) for different applications such as flooring & wall coverings, coated fabrics, film & sheet, wire & cable, & consumer goods, and expanding packaging industries are expected to drive the plasticizers market over the predicted years.

Also, continuous innovation in plasticizers and increasing demand from the construction industry expect a boost to the market in the coming years. Additionally, rising adoption of non-phthalate & high molecular weight phthalate plasticizers is predicted and the upsurge in the demand for bio-based materials is predicted to fuel the market during the forecasted period.

There are certain restraints and challenges faced which can hinder the market growth. Stringent regulations banning the usage of phthalates plasticizers and the toxic effect of PVC is likely to act as a market restraint.

On the basis of geography, the global plasticizers market is classified into phthalate plasticizers (DOP, DINP/DIDP/DPHP, others), non-phthalates plasticizers (DOTP, adipates, trimellitates, epoxies, benzoates, others).

The non-phthalates plasticizers segment is expected to hold the largest market share. The factors can be attributed to the Registration, Evaluation, and Authorization of Chemicals (REACH) regulations for restrictions on the use of phthalates.

On the basis of application, the global plasticizers market is classified into flooring & wall covering, wire & cable, coated fabric, consumer goods, film & sheet, others. It is predicted to hold the most significant CAGR in the forecasted period due to the rising demand from the packaging application in the food & beverage industry.

On the basis of geography, the global plasticizers market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The largest share in the market will be dominated by the Asia Pacific owing to the growing construction and automotive industries in this region.

As MRC wrote previously, in January, 2022, Evonik launched another latest generation plasticizer, the ELATUR DINCD. The new product, a cyclohexanoate, is characterized by a combination of much sought-after properties, such as excellent low-temperature flexibility, and high UV resistance; thus contributing significantly to the weather resistance and durability of the products made from it. ELATUR DINCD is easy to process due to its low viscosity and is particularly suitable for demanding exterior and interior applications, such as textile fabrics, roofing membranes, floor coverings, adhesives and sealants, as well as paints and coatings. This portfolio expansion is part of Evonik's long-term strategy to expand its portfolio of plasticizers, based on specific customer needs.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC did not exceed 169,700 tonnes in the first two months of 2022, which virtually corresponds to the last year's figure. At the same time, three producers reduced slightly their output.
MRC

Yokogawa Electric Corp. and JSR Corp. announce the successful conclusion of a field test in which AI was used to autonomously run a chemical plant for 35 days, a world first, according to Hydrocarbonprocessing.

This test confirmed that reinforcement learning AI can be safely applied in an actual plant. The demonstration shows that this technology can control operations that have been beyond the capabilities of existing control methods and have up to now necessitated the manual operation of control valves based on the judgements of plant personnel. The initiative described here was selected for the 2020 Projects for the Promotion of Advanced Industrial Safety subsidy program of the Japanese Ministry of Economy, Trade and Industry.

Control in the process industries spans a broad range of fields, from oil refining and petrochemicals to high-performance chemicals, fiber, steel, pharmaceuticals, foodstuffs and water. All of these entail chemical reactions and other elements that require an extremely high level of reliability.

In this field test, the AI solution successfully dealt with the complex conditions needed to ensure product quality and maintain liquids in the distillation column at an appropriate level while making maximum possible use of waste heat as a heat source. In so doing it stabilized quality, achieved high yield and saved energy. While rain, snow and other weather conditions were significant factors that could disrupt the control state by causing sudden changes in the atmospheric temperature, the products that were produced met rigorous standards and have since been shipped.

The AI used in this control experiment, the Factorial Kernel Dynamic Policy Programming (FKDPP) protocol, was jointly developed by Yokogawa and the Nara Institute of Science and Technology (NAIST) in 2018, and was recognized at an IEEE International Conference on Automation Science and Engineering as being the first reinforcement learning-based AI in the world that can be utilized in plant management. Through initiatives including the successful conduct of a control training system experiment in 2019, and an experiment in April 2020 that used a simulator to recreate an entire plant, Yokogawa has confirmed the potential of this autonomous control AI.

Given the numerous complex physical and chemical phenomena that impact operations in actual plants, there are still many situations where veteran operators must step in and exercise control. Even when operations are automated using PID control and APC, highly-experienced operators have to halt automated control and change configuration and output values when, for example, a sudden change occurs in atmospheric temperature due to rainfall or some other weather event. This is a common issue at many companies’ plants. The results of this test suggests that this collaboration between Yokogawa and JSR may have opened a path forward in resolving this longstanding issue.

Yokogawa Electric vice president and head of Yokogawa Products Headquarters, Kenji Hasegawa said, “The success of this field test came from bringing together the deep knowledge of the production process and operational aspects that only the customer can provide, and Yokogawa’s strength of leveraging measurement, control, and information to produce value. It suggests that an autonomous control AI (FKDPP) can significantly contribute to the autonomization of production, maximization of ROI, and environmental sustainability around the world. Yokogawa led the world in the development of distributed control systems that control and monitor the operation of plant production facilities, and has supported the growth of a range of industries. With our gaze fixed firmly on a world of autonomous operation that forms the model for the future of industries, we are now promoting the concept of IA2IA – Industrial Automation to Industrial Autonomy. To achieve strong and flexible production that takes into consideration the impact of differences in humans, machines, materials, and methods, the 4Ms, in the energy, materials, pharmaceuticals, and many other industries, we will accelerate the joint development of autonomous control AI with our customers around the world.”

As MRC reported before, in January, 2022, Yokogawa was selected by ExxonMobil as the system integrator for the first field trial of an open process automation (OPA) system designed to operate an entire production facility. The field trial will take place at an ExxonMobil manufacturing facility located on the US Gulf Coast, replacing the existing distributed control system (DCS) and programmable logic controllers (PLC) with a single, integrated system that meets the open process automation standard (O-PAS). The project will incorporate enhanced control capabilities enabled through the implementation of OPA technologies and interfaces.

We remind that, earlier this month, ExxonMobil and SABIC successful started up Gulf Coast Growth Ventures world-scale manufacturing facility in San Patricio County, Texas. The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants. The operation includes a 1.8 MM metric tpy ethane steam cracker, two polyethylene (PE) units capable of producing up to 1.3 MM metric tpy, and a monoethylene glycol (MEG) unit with a capacity of 1.1 MM metric tpy.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
MRC