Indian refiners' March crude oil processing up by 6.4% YOY

Crude oil processing by Indian refiners rose 6.4% year-on-year in March to 5.28 MMbpd (22.34 MMt), provisional government data showed, corresponding with a rise in consumption in the world's third biggest oil importer and consumer, reported Reuters.

India's fuel demand rose to a three-year high in March as the market accumulated supplies foreseeing price spikes while easing COVID-related curbs boosted demand.

With demand increasing, refiners are prompted to boost runs to meet demand, said Ehsan Ul Haq, an analyst from Refinitiv.

However, crude production fell over 3% to about 598,000 bpd (2.53 MMt), the data showed.

This was largely due to output from Oil and Natural Gas Corporation being 12.6% lower for the month and 1.84% lower versus March 2021 due to a delay in mobilization of the Mobile Offshore Production Unit Sagar Samrat, located in the Mumbai High Field, the release stated.

Annual oil imports in March marginally rose to 4.4 MMbpd from last year, tanker tracking data from industry sources showed.

As MRC informed earlier, Indian Oil Corporation (IOC), the country's top refiner, is currently facing unspecified issues at the upstream fluidized catalytic cracking unit (FCCU). Given the feedstock supply disruption, the producer plans to take its polypropylene (PP) and polyethylene (PE) plants offline on 25 April, 2022. Meanwhile, it is unclear on their restart schedule.

We remind that IOC will increase crude purchases from Iraq by 11.5% in 2022 to 390,000 bpd, partly to make up for a shortfall from Mexico and a possible supply cut from Kuwait. Iraq is the top supplier of oil to India and its market share there is set to rise as another refiner Hindustan Petroleum Corp. will also buy more crude from the Middle Eastern nation. India is the world's third biggest oil importer.

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, whereas shipments of PP random copolymers decreased significantly.
MRC

Evonik's first-quarter (Q1) earnings rose 25%, year on year, as higher selling prices offsetting higher input costs, said the company.

Evonik's Q1 earnings before interest, taxes, depreciation and amortisation (EBITDA) came in above analysts' consensus at EUR652m.

“Across all divisions, we were able to adjust selling prices successfully and therefore offset the increase in variable costs. Although business conditions were dominated by uncertainty and bottlenecks, Evonik made a good start to the year,” said Christian Kullmann, Evonik's CEO.

The company's performance materials division posted healthy growth in Q1 thanks to higher demand and improved selling process for C4 products, the company said. The nutrition and care divisions posted strong growth as essential amino acids for animal nutrition benefited from rising demand and higher selling prices.

The segment also benefited from significant earnings growth from drug delivery systems and for active ingredients for cosmetics applications, said the company. The war in Ukraine has pushed energy prices higher over the first quarter, and Evonik’s naphtha-based price clauses have helped the producer to pass costs downstream.

Although raw material costs have risen, the company has increased its inventory levels as a precaution in the face of volatile supply chains which could disrupt production and send feedstock costs even higher. “We are living in a period of unusual economic uncertainty. Higher energy prices and considerable uncertainty about the supply of raw materials are weighing on industry and the entire economy,” said Kullmann.

“Based on our strong start to the year and assuming there will be no further escalation in the geopolitical situation, we are confirming our outlook for the full year."

We remind, Evonik has invested a double-digit million euro sum to increase production capacity for isobutene derivatives at its Marl location. The isobutene part of the C4 production network produces the petrochemical specialties Tertiary Butanol (TBA), Di- isobutene (DiB) and 3,5,5-Trimethylhexanal (TMH). The expansion, which was recently completed, increases capacity for isobutene derivatives by more than 50 percent. In addition, the expansion improves security of supply, flexibility and product quality for the customers.

Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of EUR15 billion and an operating profit (adjusted EBITDA) of EUR2.38 billion in 2021.
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AkzoNobel’s first-quarter net profit fell by 29% year on year as sales volumes dipped 7% due to continued supply constraints, with negative impact from the Russia-Ukraine war and COVID-19 restrictions in China, said Reuters.

The company pegged the Q1 impact of the Russia-Ukraine war on operating income at about EUR5m, “of which €1m relates to impairment of accounts receivable and inventories in the region”, the Dutch paints and coatings major said in the notes accompanying its financial results. Sales for the three months to March 2022 posted a double-digit increase, thanks to a 17% spike in product prices.

“Pricing initiatives more than offset the increase of raw material and other variable costs (including freight), which combined increased EUR334 million compared with Q1 2021,” AkzoNobel said in a statement.

“Although uncertainties remain with regard to amongst others the sanctions on Russia, the COVID-19 resurgence in China and continued supply constraints – especially in North America – we remain confident in realizing our Grow & Deliver strategy,” AkzoNobel CEO Thierry Vanlancker said.

Raw material and other cost inflation (including freight) is expected "to gradually ease during the second half of 2022" and "aims to continue to offset raw material and other variable cost inflation (including freight) through pricing initiatives", the company said.

The Dutch producer is targeting a EUR2bn adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) target for 2023. Russia and Ukraine have a combined share of about 2% to AkzoNobel’s revenue prior to the start of the conflict in late February, it said.

We remind, AkzoNobel expects that its revenues from Russia will drop around 70% from the EUR210m generated in the country last year in 2022, the CEO of the Netherlands-headquartered paints and coatings player said on Thursday.

The company has suspended the bulk of its business in the country in the wake of the Russia-Ukraine war and ensuing EU sanctions. What remains of its operations in the country will be locally operated, according to AkzoNobel chief Thierry Vanlancker.

AkzoNobel expects that its revenues from Russia will drop around 70% from the €210m generated in the country last year in 2022. The company has suspended the bulk of its business in the country in the wake of the Russia-Ukraine war and ensuing EU sanctions. What remains of its operations in the country will be locally operated, according to AkzoNobel chief Thierry Vanlancker.

Also, AkzoNobel has launched a new GBP 10 M global research and development (R&D) facility at its site in Slough, UK. The new centre will house 120 specialists and will serve as a major facility within the firm's global R&D network and help to further advance its innovation capabilities, specifically in the decorative paints area. The UK project is the newest in a series of facilities launched by the company intended to advance its product development.
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Dow’s Q1 sales rose 28% year on year and operating earnings before interest and tax (EBIT) jumped nearly 56% - despite higher energy costs, said the company.

Dow saw sales growth in all operating segments, businesses and regions. The operating EBIT margin for the three months ended 31 March 2022 expanded to 15.9%, from 13.1% in Q1 2021.

Sequentially, net sales were up 6% from Q4 2021, driven by gains in Performance Materials & Coatings and Packaging & Specialty Plastics. Q1 volume increased 3% year on year, with gains in all operating segments and in the US & Canada and Latin America.

Sequentially, volume was up 5%, reflecting strong demand for silicon's and polyethylene (PE) applications. However, Dow’s equity earnings fell year on year, primarily due to planned maintenance activity at its Sadara petrochemicals joint venture in Saudi Arabia.

Sequentially, equity earnings fell because of lower PE and mono ethylene glycol (MEG) margins in Asia Pacific.

At the same time, Dow is advancing its strategy to decarbonise and grow underlying earnings by more than USD3bn in the transition to a more sustainable world, he said.

As MRC informed before, earlier this month, Dow and Plastogaz SA announced a strategic investment which will help simplify the process of converting plastic waste to feedstock and provide another carbon-efficient option to keep plastic waste out of landfills and the environment. The collaboration marks another milestone in Dow’s ongoing mission to protect the climate and close the loop on plastic waste.

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, whereas shipments of PP random copolymers decreased significantly.

Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people.
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Shell reduced greenhouse gas emissions from its operations and energy consumed last year by 18% compared to 2016 levels, with the goal remaining to cut by 50% by 2030, said Reuters.

The company has moved to increase investment in low-carbon fields, as well as hydrogen and renewable power to reduce its scope 1 and scope 2 emissions. Shell reduced the carbon intensity of the products it sells by 2-3% as of the end of last year. The announcement, part of its regular progress reports and shareholder votes on its sustainability measures, follows a Netherlands court verdict to cut its carbon output by 45% from 2019 levels by 2030.

The mandate included scope 3 emissions, a substantial challenge for fossil fuel providers, as it encompasses greenhouse gases from retail customers. In its energy transition progress report, released on Wednesday, the company said that it has reduced scope 3 emissions by 16% from 2016 levels as of the end of last year.

Shell has milestone targets of a 50% reduction in scope 1 and 2 emissions by 2030 and reaching net zero by 2050, but at present has no interim target for scope 3 beyond the overarching 2050 net zero goal. At present, ,the firm’s strategy for scope 3 emissions reductions centres around reducing the sale of oil an gas products and increasing ales of low- and zero-carbon products.

We remind, Shell Plc started to withdraw staff from its joint ventures with Russia’s Gazprom PJSC as it moves forward with plans to exit investments in response to the war in Ukraine. Dozens of Shell employees on temporary assignment at the Sakhalin-2 liquefied natural gas export project in Russia were removed over the weekend to be relocated back to other offices, according to people with knowledge of the matter. Operations at the facility are unlikely to be affected by the move, the people said, requesting anonymity to discuss private details.

In early March, Shell plc announced its intention to phase out participation in all Russian hydrocarbon projects, including oil, oil products, gas and liquefied natural gas (LNG).

Earlier it was noted that in April 2019, Shell announced its withdrawal from the Baltic LNG project after Gazprom's decision to change the concept of the project development, fully integrating it with the gas processing plant in Ust-Luga. In 2015, Shell became the sole partner of Gazprom in the Baltic LNG, and in 2018, the development of a technical project began. Initially, Shell estimated the capacity of the plant at 10 million tons of LNG per year, with a possible subsequent increase in capacity to 13 million tons.

Shell is a British-Dutch oil and gas concern engaged in the extraction, processing and marketing of hydrocarbons in more than 70 countries.
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