Energy Transfer reports strong second quarter 2022 results

Energy Transfer LP reported financial results for the quarter ended June 30, 2022, said the company.

Energy Transfer reported net income attributable to partners for the three months ended June 30, 2022 of USD1.33 billion, a USD700 million increase from the same period last year. For the three months ended June 30, 2022, net income per limited partner unit (basic) was USD0.40 per unit.

Adjusted EBITDA for the three months ended June 30, 2022 was USD3.23 billion compared to USD2.62 billion for the three months ended June 30, 2021. Distributable Cash Flow attributable to partners, as adjusted, for the three months ended June 30, 2022 was USD1.88 billion compared to USD1.39 billion for the three months ended June 30, 2021.

For the second quarter 2022, Energy Transfer had higher transportation volumes across all of its segments and a full quarter contribution from the Enable Midstream assets that were acquired in December 2021.

We remind, Energy Transfer LP's oil and gas liquids volumes increased in the three months ended on June 30 as the company ramps up processing and transportation system capacity.

Energy Transfer is evaluating petrochemical opportunities in the Gulf Coast and is in discussions with “high quality customers” for long-term, tolling-type agreements prior to making a final investment. Executives said during a conference call to discuss second quarter earnings that the company was considering significant partnerships that could provide access to ethylene and propylene that would allow its customers to access lowest-cost feedstocks.

Energy Transfer is one of America's largest and most diversified midstream energy companies.
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Poland’s PKN Orlen said late on Tuesday that it has written off around zloty (Zl) 2.8m (USD605m) in impairment losses on fixed assets partly as a result of the need to replace Russian crude oil, said the company.

The state-controlled oil and petrochemicals group said in a statement: “As a result of the necessity to replace Russian REBCO crude oil with other, more expensive types of crude oil, a significant increase in the price of gas used in refining production and an increase in the discount rate, the Orlen Group assumes write-offs in the financial statements for the first half of 2022."

It added that the write-offs were the result of the “extraordinary situation in the global refining industry related to the ongoing conflict in Ukraine, the planned [European] embargo on oil from Russia and the limited availability of raw materials”.

We remind, Poland’s ORLEN Group has finalised its merger with Grupa LOTOS, strengthening its leading role in the fuel and energy industry in Central and Eastern Europe. The final step in the process that has been successfully completed was the registration of the merger by the District Court of Lodz. The merger paves the way for unlocking synergies inherent in leveraging the potential of the two companies. As an immediate effect, the merger of PKN ORLEN and Grupa LOTOS will help increase capital expenditure, step up the execution of the most profitable projects, increase the country’s energy independence and ensure stable fuel supplies for all customers.
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North American chemical railcar traffic rose by 2.1% year on year to 46,855 loadings for the week ended 30 July, according to the latest freight rail data from the Association of American Railroads (AAR).

U.S. railroads originated 906,903 carloads in July 2022, up 0.2 percent, or 2,213 carloads, from July 2021. U.S. railroads also originated 1,033,906 containers and trailers in July 2022, down 3 percent, or 32,094 units, from the same month last year. Combined U.S. carload and intermodal originations in July 2022 were 1,940,809, down 1.5 percent, or 29,881 carloads and intermodal units from July 2021.

In July 2022, 10 of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with July 2021. These included: coal, up 5,588 carloads or 2.2 percent; crushed stone, sand & gravel, up 5,197 carloads or 6.7 percent; and motor vehicles & parts, up 3,726 carloads or 8.2 percent. Commodities that saw declines in July 2022 from July 2021 included: primary metal products, down 7,065 carloads or 19.2 percent; all other carloads, down 3,311 carloads or 15.1 percent; and stone, clay & glass products, down 2,202 carloads or 6.7 percent.

Excluding coal, carloads were down 3,375 carloads, or 0.5 percent, in July 2022 from July 2021. Excluding coal and grain, carloads were down 4,356 carloads, or 0.8 percent.

Total U.S. carload traffic for the first seven months of 2022 was 6,900,820 carloads, down 0.1 percent, or 6,610 carloads, from the same period last year; and 7,912,632 intermodal units, down 5.8 percent, or 485,376 containers and trailers, from last year.

Total combined U.S. traffic for the first 30 weeks of 2022 was 14,813,452 carloads and intermodal units, a decrease of 3.2 percent compared to last year.

As per MRC, last 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.
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OxyVinyls, the chemical division of Occidental Petroleum, is planning a USD1.1 bn expansion and modernization project at its chlor-alkali plant in La Porte, Texas, according to documents filed with the Texas Comptroller's Office, as per S&P Global.

The company's plan, dubbed Project Orca, involves an expansion and upgrade of current system equipment and processes with integration of new equipment that better utilizes membrane cell technology.

The documents, posted June 6, did not reveal higher capacities for chlorine and caustic soda production at the La Porte site, known as Battleground.

They said the proposed work would address potential future industry regulations that could require the company to cease using its existing production technology. "The benefits of this project would help to ensure long-term viability of the Battleground plant operations," the documents said.

The La Porte site can currently produce up to 527,800 mt/year of chlorine and 580,000 mt/year of caustic soda.

As per MRC, Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental, and bio-engineering startup Cemvita Factory announced a plan to construct and operate a one metric ton per month bio-ethylene pilot plant, applying a jointly developed technology using human-made carbon dioxide (CO2) instead of hydrocarbon-sourced feedstocks.

Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental, an international energy company with assets in the United States, Middle East, Africa and Latin America. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Occidental's business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally.
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Westlake Corp. said its earnings soared to new highs after a spree of acquisitions expanded its revenue base in a time when demand for its products are high, said Houstonchronicle.

The Houston chemical and materials company said its revenues jumped 57 percent during the second quarter to a record USD4.5 billion from USD2.9 billion in the prior year period. It also reported a record USD858 million profit, up 64 percent compared to USD522 million last year.

"We are pleased to deliver another quarter of record results driven by Westlake's strategic market position, which has expanded over the past year with acquisitions that increased our reach into new markets and products while solidifying our ability to capture market value,” said Westlake’s CEO Albert Chao.

High demand lifted prices for chemicals and materials — up 32 percent compared to last year — more than compensating for rising costs for raw materials, energy and shipping, boosting Westlake’s bottom line.

Chao said the company also benefited from a strong residential construction and remodeling market that supported high demand for polyvinyl chloride, or PVC.

We remind, Westlake’s Q1 sales rose 72.1% year on year and net income more than tripled on strong demand and higher prices and margins. Significantly higher sales prices and margins across most of Westlake’s businesses, as well as contributions from recently acquired businesses, drove the Q1 results, it said. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 135% to USD1.3bn and the EBITDA margin rose to 32% from 23% in Q1 2021.
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