Sumitomo Chemical increased Q1 profit

Sumitomo Chemical increased Q1 profit

MOSCOW (MRC) -- Sumitomo Chemical says that its net profit in the fiscal first quarter ended 30 June almost doubled to USD524.5 mln,on sales up 21%, said the company.

Operating income was higher by 13% year on year (YOY). The company has maintained its full-year outlook.

Selling prices for synthetic resins, methyl methacrylate and various industrial chemicals improved due to an increase in raw material prices. The weak yen also benefited sales revenues of subsidiaries outside of Japan when converted into yen. On the other hand, shipments declined, primarily because of weak demand for products in automotive applications. As a result, sales revenue increased by ?39.0 billion from the same period in the previous year, to ?238.6 billion. Core operating income was ?10.0 billion, declined by ?13.8 billion from the same period in the previous year, because of a deterioration in margins caused by higher raw material prices and the impact of lower shipment volumes, despite an improvement in the performance of Rabigh Refining and Petrochemical Company, our equity method invested.

As per MRC, Shiseido Company, Limited (Shiseido), SEKISUI CHEMICAL CO., LTD., and Sumitomo Chemical Co., Ltd. will start a joint initiative to establish a circular economy for plastic cosmetics containers, in which used cosmetics plastic containers are collected, converted to resources and materials without sorting, and recycled back into plastic cosmetics containers.

Lufthansa and Shell form future-oriented cooperation on SAF

Lufthansa and Shell form future-oriented cooperation on SAF

MOSCOW (MRC) -- Shell International and the Lufthansa Group have signed an MoU for exploring the supply of SAF at airports across the globe, said Hydrocarbonprocessng.

The parties intend to agree on a contract for a total supply volume of up to 1.8 MMt of SAF starting in 2024, over a term of seven years. Such an agreement would be one of the most significant commercial SAF cooperation in the aviation sector, as well as the largest SAF commitment of both companies to date.

The cooperation would enable the Lufthansa Group to promote the availability, market ramp-up and use of SAF as an essential element for a CO2-neutral future of aviation. The Lufthansa Group is already the largest SAF customer in Europe and aims to remain one of the world's leading airline groups in the use of sustainable kerosene. The MoU builds on Shell’s ambition to have at least ten percent of its global aviation fuel sales as SAF by 2030.

SAF is aviation fuel that is produced without the use of fossil energy sources, such as crude oil or natural gas, and show a saving of CO2 compared to conventional kerosene. Various production processes exist and different feedstock are available as energy sources. The current generation of SAF, which saves 80 percent CO2 compared to conventional kerosene, is mainly produced from biogenic residues, for example from used cooking oils. In the long term, SAF can enable virtually CO2-neutral aviation.

The Lufthansa Group has been involved in SAF research for many years, has built up an extensive network of partnerships and is driving forward the introduction of sustainable next-generation aviation fuels in particular. Special focus is placed on the forward-looking power-to-liquid and sun-to-liquid technologies, which use renewable energies or solar thermal energy as energy carriers.

By using SAF, customers of the Lufthansa Group can already fly CO2-neutral today. In addition, they can document their reduced CO2 emissions with audited certificates and have the CO2 savings credited to their individual CO2 balance.

As per MRC, Shell posted record results, with a USD11.5 billion second-quarter profit smashing the mark it set only three months ago, lifted by strong gas trading and a tripling of refining profit. Higher feedstock and utility costs and higher turnaround activities hit Shell’s chemicals earnings in the second quarter. Shell reported an loss attributable to shareholders for the business of USD158m.

In addition, Shell in its reporting for the first quarter of 2022 recognized the cost of leaving Russian assets at USD 3.9 billion after taxes. Earlier, she informed that the losses could amount to USD 4-5 billion.

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

US chemical railcar traffic is up 4.3%

US chemical railcar traffic is up 4.3%

MOSCOW (MRC) -- The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending July 23, 2022, according to the Association of American Railroads (AAR).

For this week, total U.S. weekly rail traffic was 498,901 carloads and intermodal units, down 0.8 percent compared with the same week last year. Total carloads for the week ending July 23 were 232,565 carloads, up 1.1 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 266,336 containers and trailers, down 2.5 percent compared to 2021.

Five of the 10 carload commodity groups posted an increase compared with the same week in 2021. They included motor vehicles and parts, up 1,790 carloads, to 12,559; coal, up 1,772 carloads, to 67,719; and farm products excl. grain, and food, up 950 carloads, to 15,627. Commodity groups that posted decreases compared with the same week in 2021 included metallic ores and metals, down 1,516 carloads, to 21,601; petroleum and petroleum products, down 490 carloads, to 10,038; and miscellaneous carloads, down 228 carloads, to 9,468.

For the first 29 weeks of 2022, U.S. railroads reported cumulative volume of 6,663,741 carloads, down 0.2 percent from the same point last year; and 7,644,302 intermodal units, down 5.9 percent from last year. Total combined U.S. traffic for the first 29 weeks of 2022 was 14,308,043 carloads and intermodal units, a decrease of 3.3 percent compared to last year.

North American rail volume for the week ending July 23, 2022, on 12 reporting U.S., Canadian and Mexican railroads totaled 328,063 carloads, down 0.4 percent compared with the same week last year, and 352,928 intermodal units, down 2.4 percent compared with last year. Total combined weekly rail traffic in North America was 680,991 carloads and intermodal units, down 1.4 percent. North American rail volume for the first 29 weeks of 2022 was 19,533,345 carloads and intermodal units, down 3.3 percent compared with 2021.

Canadian railroads reported 73,607 carloads for the week, down 2.2 percent, and 70,481 intermodal units, down 0.9 percent compared with the same week in 2021. For the first 29 weeks of 2022, Canadian railroads reported cumulative rail traffic volume of 4,151,626 carloads, containers and trailers, down 3.9 percent.

Mexican railroads reported 21,891 carloads for the week, down 8.5 percent compared with the same week last year, and 16,111 intermodal units, down 7.1 percent. Cumulative volume on Mexican railroads for the first 29 weeks of 2022 was 1,073,676 carloads and intermodal containers and trailers, up 0.4 percent from the same point last year.

We remind, North American chemical railcar traffic rose by 1.1% year on year to 45,125 loadings for the week ended 16 July. An 8.6% increase in Canada more than offset declines in the US and Mexico. The week before, North American chemical railcar traffic fell 0.9%, following three consecutive increases.

U.S. majors Exxon, Chevron post blowout earnings, ramp up buybacks

U.S. majors Exxon, Chevron post blowout earnings, ramp up buybacks

MOSCOW (MRC) -- The two largest U.S. oil companies, ExxonMobil and Chevron, posted record revenue on Friday, bolstered by surging crude oil and natural gas prices and following similar results for European majors a day earlier, said Reuters.

The U.S. pair, along with UK-based Shell and France's TotalEnergies, combined to earn nearly USD51 B in the most recent quarter, almost double what the group brought in for the year-ago period. All four have ramped up share buybacks in recent months, capitalizing on high margins derived from selling oil and gas.

Exxon outpaced its rivals with second-quarter net income of USD17.9 B, several billion dollars ahead of its previous record reached in 2012, which was aided by asset sales in Japan. The fifth major, BP Plc, reports next week.
The companies posted strong results in their production units, helped by the surge in benchmark Brent crude oil futures , which averaged around USD114 a barrel in the quarter.

High crude oil prices can cut into margins for integrated oil majors, as they also bear the cost of crude used for refined products. However, following Russia's invasion of Ukraine and numerous shutdowns of refineries worldwide in the wake of the coronavirus pandemic, refining margins exploded in the second quarter, outpacing the gains in crude, adding to earnings.

"The strong second-quarter results reflect a tight global market environment, where demand has recovered to near pre-pandemic levels and supply has attritted," said Exxon Chief Executive Darren Woods, in a call with analysts. "Growing supply will not happen overnight."

The results from the majors are sure to draw fire from politicians and consumer advocates who say the oil companies are capitalizing on a global supply shortage to fatten profits and gouge consumers. U.S. President Joe Biden last month said Exxon and others were making "more money than God" at a time when consumer fuel prices surged to records.

Earlier this month, Britain passed a 25% windfall tax on oil and gas producers in the North Sea. U.S. lawmakers have discussed a similar idea, though it faces long odds in Congress. A windfall tax does not provide "incentive for increased production, which is really what the world needs today," said Exxon Chief Financial Officer Kathryn Mikells, in an interview with Reuters.

The companies say they are merely meeting consumer demand, and that prices are a function of global supply issues and lack of investment. The majors have been disciplined with their capital and are resisting ramping up capital expenditure due to pressure from investors who want better returns and resilience during a down cycle. "In the short term (cash from oil) goes to the balance sheet. There's no nowhere else for it to go," Chevron CFO Pierre Breber told Reuters.

Worldwide oil output has been held back by a slow return of barrels to the market from the Organization of the Petroleum Exporting Countries and allies, including Russia, as well as labor and equipment shortages hampering a swifter increase in supply in places like the United States.

Exxon earlier this year more than doubled its projected buyback program to USD30 B through 2022 and 2023. Shell said it would buy back $6 B in shares in the current quarter, while Chevron boosted its annual buyback plans to a range of USD10 B to USD15 B, up from USD5 B to USD10 B. Exxon shares were up 3.2% to USD95.60 in morning trading. Chevron shares rose 6.5% to USD160.06.

We remind, a workers' strike at Exxon Mobil's Esso refinery in Fos-sur-Mer in southern France stopped on Saturday and the halted units are being restarted. "We're doing everything to ensure that operations and supplies resume at the earliest so that we can serve our clients as soon as possible," said Esso spokeswoman Catherine Lebrun. The strike resulted in the refinery being temporarily shutdown on Friday. Exxon's Fos site has a refining capacity of 7 million tonnes per year, which corresponds to about 10% of national capacity, according to the company. The walkouts at Esso started on June 28, with workers demanding higher wages to cover inflation. They were part of wider union efforts this week that have hit other energy companies such as state-owned electric power utility EDF .

Arkema Q2 adjusted net income rises

Arkema Q2 adjusted net income rises

MOSCOW (MRC) -- Arkema's net income surged by 66% year on year in the second quarter, supported by higher prices to adapt to the very strong increase in feedstock costs, said the company.

Arkema says adjusted net profits in the second quarter of 2022 increased 65.9% year on year (YOY), to EUR443.0 million (USD453.7 million), on sales higher 32.9% YOY, to EUR3.18 billion, driven by strong growth in all segments. EBITDA rose 47.5% YOY, to EUR705.0 million, beating analysts’ consensus estimate of EUR628.7 million, provided by S&P Capital IQ.

Volumes were down 5.3% YOY, but prices were up 28.5% YOY, reflecting mainly raised selling prices to adapt to the very strong increase in raw materials, energy, and transportation costs; better market conditions in upstream acrylics; and product mix improvement, Arkema says.

There was positive volumes growth in the US, driven by underlying demand that remained well oriented in most end markets, and in Asia despite the lockdowns in China, but volumes were impacted by the slowdown observed in Europe, notably in the construction and automotive markets, the company says.

We remind, Arkema has set itself an ambitious target, based on an SBT (Science Based Target) approach, to reduce its scope 1 and 2 greenhouse gas (GHG) emissions and its scope 3 emissions by 46% by 2030 relative to 2019.
Thus, the Group is raising its level of commitment from well below 2°C to 1.5°C, and now also includes all scope 3 emissions. This decarbonization target is based on energy efficiency and the evolution of the energy mix of Arkema’s industrial activities for scopes 1 and 2. Regarding scope 3, it includes the reduction of the most emissive activities, innovation contributing to a reduction in greenhouse gas emissions and suppliers’ commitment upstream of the value chain.