Chemours to expand capacity in Texas

The Chemours Company (Wilmington, Del.) announced that it will be expanding its Chemours Opteon YF (HFO-1234yf) capacity to help meet customer needs as they continue transitioning to lower GWP refrigerants, said the company.

The Opteon YF and YF blends refrigerants are now used in millions of vehicles and thousands of retail stores around the world, with zero ozone depletion potential (ODP) and global warming potential (GWP) that is significantly lower than the legacy refrigerants.

Chemours considers the USD80 million capacity expansion project a critical growth investment that supports market demands and aligns with Chemours corporate responsibility targets, delivering high returns and delivering on our purpose. When Chemours opened the facility in June 2019, it more than tripled the company’s capacity of Opteon™ YF, making it one of the world’s largest HFO-1234yf production facilities, a distinction it will retain with this project. This investment, along with on-going de-bottlenecking projects, will further increase site capacity by approximately 40%.

“This expansion demonstrates Chemours’s devotion to our customers, the communities in which we live and work, and the health and sustainability of the planet,” said Alisha Bellezza, president of Thermal & Specialized Solutions at Chemours. “Opteon YF is a game-changing refrigerant solution accelerating global sustainability initiatives. As demand increases, we are proud to make the investment that will help our customers navigate the complex regulatory landscape while supporting their bottom line with a high-performing, readily available product."

The refrigerants manufactured by Chemours in Ingleside, Tex.—which is 20 minutes outside of Corpus Christi—will be delivered to a rapidly growing base of customers around the world. In the mobile air conditioning market, the number of vehicles on U.S. roads using HFO-1234yf is estimated to be at least 80 million. Since the opening of the production facility, several equipment manufacturing companies have also selected Opteon products for residential and commercial HVAC applications. By 2025, Chemours estimates that its low-GWP product line will eliminate an estimated 325 million tons of carbon dioxide equivalent globally.

We remind, Chemours is partnering with corporate, academic and government experts to develop a sustainable way of recovering titanium dioxide (TiO2) and polymers from plastic products. The three-year project, which is called Remove2Reclaim, aims to develop larger detection and extraction recycling technologies to separate TiO2 and polymers from plastic products so they can be re-used. As a result, there can be greater applications and a wider range of end-use products made from recycled plastic. The project has already led to innovations in identifying and sorting plastic waste that contains TiO2 and solvent-based methods of removing TiO2.
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Petrobras' Brazil-listed shares jumped almost 7% on Friday, hitting a 12-year high, after the state-run oil company smashed quarterly profit estimates and announced a record dividend payment, said Reuters.

The company announced a USD17 B dividend payout, the largest ever, sending the firm's shares up some 3.3% in intraday trade. After the market close, the firm posted a second-quarter profit of 54.33 B reais, well above analysts' estimates, buoyed by higher margins in its fuel business. The company was on track for its fifth straight day in the black, with accumulated gains this week coming to 16%.

Petrobras' share performance illustrates how the street has been wooed by a generous dividend policy, solid profits and high demand for the company's products given the supply crunch provoked by the War in Ukraine, even as the firm has spent much of 2022 in a management crisis. The company has had four chief executives this year, and is set to replace its board in August. Should former leftist president Luiz Inacio Lula da Silva win the October election - which polls indicate is likely - a major strategy shift would almost certainly ensue.

In a note to clients, analysts at Brazil's Itau BBA called Petrobras' dividend payment "very positive," saying it exceeded even the bank's "bullish" estimate. In a call with analysts on Friday, executives said they expected the company's high refinery utilization rates to continue through the rest of 2022. Utilization rates hit 99% this week, said downstream chief Rodrigo Costa e Lima, and they should average 86% through the second half of the year.

Executives also sought to assuage any concerns provoked by a recent policy change allowing the board to review domestic fuel pricing, saying board members have no veto power over executives' pricing decisions. On the call, executives also said that the company's ambitious divestment program was still full-steam ahead. In particular, the company was positively surprised by the interest Petrobras had received for a number of refineries it still has on the block, said Chief Financial Officer Rodrigo Araujo. Preferred shares in the company were up 6.5% in afternoon trade, while the nation's benchmark Bovespa equities index had climbed 1.1%.

As per MRC, Petrobras’ PBR eligibility committee recently stated that two of the Brazilian government's seven nominees for a refurbished board at the company did not meet the requirements to hold the position. Brazilian President Jair Bolsonaro picked the two ineligible nominees – Jonathas Assuncao Salvador Nery de Castro and Ricardo Soriano de Alencar. Both of them, however, are not qualified to become the board members of PBR based on the company’s internal bylaws, the committee established, per the minutes of its last meeting.

As per MRC, Petrobras’ PBR eligibility committee recently stated that two of the Brazilian government's seven nominees for a refurbished board at the company did not meet the requirements to hold the position. Brazilian President Jair Bolsonaro picked the two ineligible nominees – Jonathas Assuncao Salvador Nery de Castro and Ricardo Soriano de Alencar. Both of them, however, are not qualified to become the board members of PBR based on the company’s internal bylaws, the committee established, per the minutes of its last meeting.
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LyondellBasell Industries announced net income for the second quarter 2022 of USD1.6 billion, or USD4.98 per share, said the company.

The company recognized a USD69 million non-cash impairment charge during the quarter related to the exit from our Australian polypropylene business that impacted earnings by USD0.21 per share. Second quarter 2022 EBITDA was USD2.4 billion, or USD2.5 billion excluding LCM and impairment. Second quarter 2022 EBITDA was further impacted by a USD94 million non-cash pension settlement charge.

"With a diverse portfolio, strong cash generation and disciplined capital allocation, LyondellBasell is already well-regarded as one of the best operated companies in our sector. After my first two months as LyondellBasell CEO, I am convinced that our team has the passion and dedication required to grow these capabilities. Our aim is to build upon our strong position, our scale and our reach to establish LyondellBasell as a leader in serving the world's growing needs for circular and sustainable materials while reducing our carbon footprint. I look forward to sharing more of our plans about how LyondellBasell will advance our strategy and unlock additional value over the coming months," said Peter Vanacker, LyondellBasell Chief Executive Officer.

"Looking specifically at the second quarter, LyondellBasell's global portfolio of businesses delivered strong earnings and cash generation driven by record results from our Intermediates & Derivatives segment and exceptional refining margins. In addition, LyondellBasell is making tangible progress toward our goals to help address the global challenges of climate change and plastic waste," said Vanacker.

LyondellBasell's broad portfolio supported an 18 percent sequential growth in EBITDA during the second quarter. The Intermediates & Derivatives segment delivered record profitability. The Houston refinery ran at a rate of nearly 95 percent to support increased demand for gasoline, diesel and jet fuel. Olefins and polyolefins markets reflected distinct regional dynamics. While North American demand for products used in consumer packaging end markets remained strong, the company's volumes in Europe decreased due to downtime at the cracker in France and moderating regional demand near the end of the quarter. In China, markets remained weak due to zero-COVID measures and logistical challenges. Advanced Polymer Solutions results continued to be hindered by automotive production constraints.

LyondellBasell generated USD1.6 billion in cash from operating activities during the quarter. The company remains committed to a disciplined approach to capital allocation. In the second quarter, USD532 million was reinvested back into the businesses and USD2.1 billion was returned to shareholders through the combination of a special dividend, an increased quarterly dividend and modest share repurchases. Strong shareholder returns continue to be a capital allocation priority at LyondellBasell.

During the quarter, LyondellBasell signed several renewable power purchase agreements that will help reduce the carbon footprint of operations. Since the launch of the Circulen portfolio in 2019, the company has sold over 140,000 tons of polymer manufactured from recycled and renewable feedstocks; an amount that represents the annual polyethylene and polypropylene demand from the population of Houston. LyondellBasell is scaling up the Circulen product lines to address the growing demand from our customers and society for renewable and circular materials.

We remind, LyondellBasell has joined the NEXTLOOPP initiative that brings more than 40 major industry players together. Launched in October 2020, NEXTLOOPP aims to create circular food-grade recycled polypropylene (FGrPP) from post-consumer packaging.
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SIBUR introduced the possibility of paying in yuan for Chinese customers, the company said.

Petrochemical SIBUR has introduced a yuan-based settlement option with Chinese clients, the company said. SIBUR, the release notes, has been successfully cooperating with China for more than 10 years. China, the largest importer of polymers, is an important strategic partner for the company. “We have introduced an option for Chinese customers to pay in RMB in China.

This will allow us to provide local customers with flexibility in payment, ”Sergei Komyshan, Executive Director of SIBUR, is quoted in the release.

Earlier, SIBUR started producing maleic anhydride for the Russian market, and this year it plans to start delivering it to China. Maleic anhydride is used in the production of building materials, agriculture and pharmaceuticals.

In 2021, SIBUR exported 500 thousand tons of petrochemical products to China, mainly various polymers and synthetic rubber, this year it is planned to further strengthen the partnership.

We remind, SIBUR has signed a deal with recycler Russian Environmental Operator (REO) for the supply of recycled polyethylene terephthalate (rPET) bottles and packaging as feedstock for production of food-grade rPET granules at Polief facility in Bashkortostan, Russia.

SIBUR Holding is the leader of the petrochemical industry in Russia and one of the world's largest companies in the sector with more than 23,000 employees. Over the past 10 years, SIBUR has implemented a number of large-scale investment projects worth about 1 trillion rubles.
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Clariant, a focused, sustainable, and innovative specialty chemical company, today announced its second quarter and first half year 2022 results. In the second quarter of 2022, continuing operations sales were CHF 1.301 billion, compared to CHF 1.032 billion in the second quarter of 2021, said the company.

This corresponds to an increase of 29 % in local currency, 25 % of which was organic, and 26 % higher sales in Swiss francs. For the fifth sequential quarter, both pricing and volume growth positively impacted the Group sales result by 20 % and 9 %, respectively, while the currency impact was -3 %. The particularly strong sales growth at Care Chemicals and Natural Resources outpaced the expansion at Catalysis.

In the second quarter of 2022, sales expansion was significant in all geographic regions. The 40 % sales growth in North America was followed closely by Latin America with a 39 % increase, underpinned by expansion in all three Business Areas. In Europe, the 29 % local currency growth was driven by strong expansion in Care Chemicals. The 22 % growth in Asia-Pacific was augmented by 25 % expansion in China, at Catalysis in particular. The Middle East & Africa also increased sales by 14 %.

In the second quarter of 2022, Care Chemicals increased sales by 46 % in local currency. This progress was driven by double-digit expansion in Consumer Care and Industrial Applications, especially Crop Solutions, Personal Care, Home Care, and Coatings. Catalysis sales rose by 8 % in local currency, primarily due to expansion in Specialty Catalysts and the emission-control businesses. Natural Resources sales increased by 24 % in local currency with growth attributable to all three Business Units, especially Additives.

The continuing operations EBITDA increased to CHF 216 million, and the corresponding 16.6 % margin clearly exceeded the 15.8 % reported in the second quarter of the previous year. This improvement was propelled by pricing measures that fully offset the increased raw material cost (approximately 36 %), supply chain constraints, and higher energy and logistics cost. Additionally, operating leverage from higher sales, and cost savings (CHF 4 million savings from performance programs) contributed positively to the margin expansion. The absolute EBITDA increased by 33 %, exceeding the underlying CHF 149 million (14.0 % margin) pre-pandemic level reported in the second quarter of 2019.

First Half Year 2022 – Further profitability improvement generated by specialty chemical portfolio, pricing, and cost discipline. In the first half year 2022, continuing operations sales were CHF 2.563 billion, compared to CHF 2.034 billion in the first half year 2021. This corresponds to an increase of 29 % in local currency, 25 % of which was organic, and 26 % in Swiss francs. Both pricing and volume growth had a positive impact on the Group of 18 % and 11 %, respectively, while the currency impact was -3 %.

In the first half year 2022, sales growth exceeded 20 % in local currency in all geographic regions. The particularly strong performance in North America is partly attributable to the weak comparison base of the first half year 2021, which was confronted with an especially challenging environment in Oil Services and weather-related disruptions in the first quarter of 2021.

We remind, Clariant has been awarded a major contract by Wanhua Chemical Group to supply catalysts for its new maleic anhydride plant, which will be one of the largest in the world. Designed to produce 200 kilotons of maleic anhydride annually, the plant will rely on Clariant’s SynDane catalyst for the production process. The facility will be located in Yantai city, Shandong province, and is scheduled to commence operation in 2023.
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