S-Oil Q2 net more than doubles amid rising oil prices

S-Oil Corp. said Thursday its second-quarter net profit more than doubled from a year earlier on the back of widened refining margins helped by higher oil prices, said Koreaherald.

Net profit came to 1.01 trillion won (USD775.2 million) in the April-June period, up 146.9 percent from 410.7 billion won a year earlier, the Seoul-based subsidiary of Saudi Arabia's Aramco said in a regulatory filing. Operating profit reached 1.72 trillion won, more than tripling from the previous year's 571 billion won. Sales increased 70.5 percent on-year to 11.44 trillion won over the cited period.

The earnings fell below market expectations. The average estimate of net profit by analysts stood at 1.13 trillion won, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. "Refining margins widened as the rise in international oil prices pushed up the unit prices. The petrochemical sector made a turnaround and lubricant oil profits also improved," the company said in a release.

Refining margins, a key gauge of refiners' profitability, are linked to international oil prices. Higher crude prices usually mean greater margins, or the difference between the total value of petroleum products and the cost of crude and related services. A recovery in demand from eased COVID-19 border restrictions, and a tight supply amid the Russia-Ukraine war, have also helped boost the refining margins and inventory gains, it added.

Refinery sales reached 9.25 trillion won for the second quarter, with the operating profit coming in at 1.4 trillion won. The petrochemical division posted 1.3 trillion won in sales and 18 billion won in operating profit. Sales from the lubricant oil sector came to 888 billion won and the operating profit reached 258.9 billion won.

We remind, S-OIL is set to charge into the hydrogen business by investing in a company making next-generation fuel cells, a key component in the hydrogen economy. The refiner said on 7 Mar 2021 that it sealed an investment agreement with Fuel Cell Innovations (FCI), which provides fuel cell-based clean energy solutions. It will become FCI's largest domestic shareholder by acquiring a 20% stake with initial investment. The two entities will establish a strategic alliance to accelerate their foray into the hydrogen business.
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Brazilian chemical maker Unigel announced plans to build a green hydrogen plant in the northeastern state of Bahia, with an initial investment of USD120 million and the goal of making it one of the largest of its kind in the world, said Reuters.

The plant will starts its production planned for late 2023. At this moment, Unigel's integrated green hydrogen and green ammonia plant is expected to be the largest in the world. In the first phase of the project, Unigel installs three 20 MW standard electrolyzers from thyssenkrupp nucera, adding up to a total capacity of 60 MW. The company plans to quadruple its production of green hydrogen in the years following the inauguration by expanding the electrolyzer plant to a multi-hundred MW facility, which will produce approximately 40,000 tons of green hydrogen. The new factory is expected to employ more than 500 people, so that the chemical company also gives an important impulse for the whole region.

"Throughout our nearly 60-year history, we have always been attentive to technological innovations and have invested to meet industrial and agribusiness demands. With this project, Unigel takes the first step towards the decarbonization of several sectors, contributing substantially to combating climate change on the planet", emphasizes Henri Slezynger, Chairman of the Board of Directors and founder of Unigel.

Located in the Camacari Industrial Complex (BA), the new plant will have an initial production capacity of 10,000 tons/year of green hydrogen and 60,000 tons/year of green ammonia. The products will be offered to customers who aim to decarbonize their production chains, e.g. the steel industry, oil refining, and e-fuels. Green ammonia will also be used in the value chain of Unigel, as it is a raw material in the manufacturing of fertilizers and acrylics.

We remind, Styron sold its 200,000 tonne/year polystyrene (PS) plant in Guaruja, Sao Paulo, to Gaxetas e Perfis do Brasil, a company associated with the Unigel group.

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Axalta Coating Systems Ltd. AXTA (Axalta), a leading global coatings company, today announced that Robert Bryant will step down as President and Chief Executive Officer to pursue other opportunities, effective August 31, 2022, said the company.

He will also step down as a member of the Board of Directors at such time. Rakesh Sachdev, an independent director and former Chief Executive Officer of Platform Specialty Products Corporation (now renamed Element Solutions Inc.) and Sigma-Aldrich Corporation, will assume the role of interim Chief Executive Officer at that time. The Board has initiated a comprehensive search process to identify a new CEO.

Bill Cook, Axalta's Board Chair, said, On behalf of the Board of Directors, I would like to thank Robert for his leadership and dedication to Axalta. Robert joined the company as CFO in 2013 when it was first carved out of DuPont and played a key role in Axalta's successful IPO and listing on the NYSE in 2014.

Since being appointed President, CEO and Director in 2018, Robert has built a strong leadership team and spearheaded our transition to a business-centric operational model that has allowed us to be more customer focused, while also advancing our innovation and human capital programs. I'd like to extend a special thanks for his leadership during the unprecedented challenges we've faced over the past few years related to the COVID-19 pandemic and global supply chain issues. We wish Robert continued success in his next endeavors.

We remind, Axalta, a leading global supplier of liquid and powder coatings, broke ground for construction of a state-of-the-art coatings facility in Jilin City, Jilin Province, North China. The 46,000-square-meter new plant will produce mobility coatings to support growing customer demand in China for light vehicles, commercial vehicles, and automotive plastic components. "Our new plant in Jilin is another building block supporting our ambitious growth strategy for our mobility business in China," said Nicolas Franc de Ferriere, Vice President, Mobility, Asia Pacific at Axalta.
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Azelis, a leading innovation service provider in the specialty chemicals and food ingredients industry, is pleased to announce a new distribution agreement with Green Mountain Biotech, a leading provider of high-quality active botanical blends for the personal care and cosmetic industries, said the company.

Effective immediately, Azelis will distribute Green Mountain Biotech’s portfolio of active plant extracts for Indonesia, Malaysia, Singapore, Thailand and Vietnam.

Green Mountain Biotech’s range of natural actives and extracts for the personal care market are the result of years of rigorous scientific research and clinical testing. Green Mountain Biotech has developed high-quality, sustainable herbal formulas, that both alleviate dermatological symptoms and improve overall skin health. The addition of Green Mountain Biotech’s complete portfolio of innovative and sustainable products reinforces Azelis’ personal care offering for Southeast Asia.

Roni Kramer, Green Mountain Biotech Founder & CEO, says: "Green Mountain Biotech has partnered with Azelis to expand its reach in the Southeast Asia region, to provide consumers with high-quality, natural and sustainable solutions that are in rising demand. Azelis’ commitment to growth and dedicated organization for personal care, coupled with their technical and market expertise and sustainability ambitions, proved crucial for our decision to entrust Azelis with the distribution of our specialty portfolio."

Jacqueline Hoe, Azelis Asia Pacific Market Segment Director Personal Care, comments: "This new partnership will allow us to offer supplementary innovative and sustainable solutions for the personal care industry across Southeast Asia. Green Mountain Biotech’s portfolio complements our personal care offering in the region, with the addition of their high-quality, proprietary, botanical blends and advanced ingredients that are also sustainably sourced, a great combination that ensures we continue to offer the best solutions to our customers."

As per MRC, Azelis, a leading global innovation service provider in the specialty chemicals and food ingredients industry, announces that it has reached an agreement to acquire 100% of the shares of Chemical Solutions Sdn Bhd (“ChemSol”), one of the leading distributors of raw materials in the Personal Care, Cosmetics and Household markets in Malaysia.
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Chevron Phillips was utilizing the safety flare system at its Baytown, Texas, chemical plant following a power interruption, according to a source familiar with plant operations, said Reuters.

Thick black smoke was seen throughout the morning at the plant, located on the east side of the Houston metro area, according to a Reuters witness.

The smoke had started to dissipate by around noon local time, the witness said. The company did not immediately respond to a request for comment.

Safety flares are used when a refinery or chemical plant experiences an upset or outage to burn off hydrocarbons that cannot be processed normally.

As per MRC, QatarEnergy and Chevron Phillips Chemical Company (CPChem) have awarded the early site works contract for the Ras Laffan Petrochemical Project (RLPP) to Consolidated Contractors Company (CCC). The contract award marks the commencement of execution of the RLPP. CCC has secured a lump-sum contract to prepare the site for the new facility within Ras Laffan Industrial City. Early works on the project will begin in June, at the conclusion of which the EPC contract for the project is expected to be awarded.
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