Japanese refiner Idemitsu Kosan raises annual profit forecast

Japanese refiner Idemitsu Kosan raises annual profit forecast

Japan's second-biggest oil refiner Idemitsu Kosan Co on Tuesday raised its annual profit forecast by 70% after reporting record first-quarter earnings, buoyed by higher prices of oil and thermal coal, said Hydrocarbonprocessing.

Like global energy companies, Idemitsu has benefited from stronger crude oil prices, which translate into higher prices for refined products and increased inventory values. Oil prices have hovered above USD100 per barrel in the April to June quarter on tight supplies following Western sanctions on Russia, a major producer, and as energy consumption returned to near pre-pandemic levels.

Idemitsu now predicts a net profit of record 280 billion yen (USD2.1 billion) for the year to March 31, against its May estimate of 165 billion yen. It also beat a mean forecast of 207 billion yen, according to a Refinitiv poll of nine analysts. "Surging prices of oil and coal and a weaker yen contributed to strong first-quarter results and an upgrade of our full-year forecast," Yoshitaka Onuma, general manager of the finance department, told a news conference.

Its net profit for the April-to-June first quarter nearly doubled to 245 billion yen. "Robust petroleum product margins in Singapore also led to higher earnings in exports," Onuma said, adding Idemitsu's export volume is expected to increase 53.5% this year from a year earlier, also helped by higher operation rates at its refineries.

Refinery run rates came to 82% in the first-quarter, above an annual rate of 77% last year. Idemitsu lifted its annual assumption of Brent oil prices to USD105.1 a barrel from its May estimate of USD102.5, spot Australian thermal coal prices to USD310.1 a tonne from USD180, and the yen's exchange rate to 133.6 yen per U.S. dollar from 120 yen.

"The global coal market has tightened as Russian supply has fallen amid the Russia-Ukraine conflict, boosting demand for Australian coal as an alternative," Onuma said, adding soaring prices of natural gas in Europe had also boosted coal demand as substitute.

As MRC wrote before, in early February, Idemitsu Kosan had no plan to give fresh financial aid to Vietnam's Nghi Son Refinery and Petrochemical (NSRP), which ha cut production to 80% of capacity due to a funding problem. Vietnam's largest refinery avoided a lengthy shutdown that month after a major shareholder secured short-term funding following a disagreement between shareholders about financing for crude, having earlier cut its run rate.

We remind that in October 2018, Idemitsu Kosan finalized a deal to buy out Showa Shell Sekiyu through a share swap in a deal worth about USD5.6 billion.
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Russia to resume oil flows to Slovak oil refiner Slovnaft

Russia to resume oil flows to Slovak oil refiner Slovnaft

Slovak oil refiner Slovnaft said on Wednesday it expected Russian oil flows through Ukraine to resume in the coming days after it had made a payment for transit through Ukraine to remove an obstacle that halted flows through the southern leg of the Druzhba pipeline earlier this month, said Bloomberg.

"Slovnaft has already made the payment to the (Ukrainian transit) company's account," Slovnaft said in a statement. "Based on this, Slovnaft is expecting oil supplies to resume in the coming days. The Russian side also agreed with this solution."

As per MRC, Italian energy group Eni believes it will be able to completely replace Russian gas imports by 2025 as uncertainty over Moscow's energy supplies to Europe forces countries to seek alternative sources. After signing new gas supply agreements with Algeria, Egypt and Congo earlier this year, Eni sees additional opportunities arising in other countries including Libya, Angola, Mozambique, and Indonesia, as well as in its home country. The initiatives are designed to secure up to an equivalent of 100% of Russia's 20 Bcm3 of annual gas exports to the Italian market by 2025.

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Japan lowers gasoline subsidy

Japan lowers gasoline subsidy

Japan lowered its gasoline subsidy for oil distributors to 31.4 yen (23.3 cents) a litre for the seven days from Thursday, versus 37.7 yen a week earlier, the industry ministry said on Wednesday, said Reuters.

The temporary subsidy programme was adopted in January to cushion the blow from high crude prices because of tight global supplies, later exacerbated by the Russia-Ukraine conflict.

As per MRC, Japan's chemical exports rose by 19.6% year on year to yen (Y) 1,058bn in June, supporting the overall increase in shipments abroad. The country's exports of organic chemicals rose by 22.8% year on year to Y196bn in June, while shipments of plastic materials were up by 13.9% at Y283bn. On a volume basis, exports of plastic materials fell by 4.2% year on year to 474,344 tonnes.
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Topsoe joins circular industrial plastics initiative, will increase plastic recycling by 20%

Topsoe joins circular industrial plastics initiative, will increase plastic recycling by 20%

The newly formed partnership, Circular Industrial Plastics, which consists of large Danish companies, commits to increase recycling of industrial plastics by at least 20% before 2025, said Hydrocarbonprocessing.

Circular Industrial Plastics has a budget of USD5.6 MM, of which USD2.4 MM were granted by the Danish Eco-Innovation Program under the Danish Environmental Protection Agency. The ambition is to make knowledge and technology within circular plastic available for Danish companies.

Today, many industrial products made of plastic are burnt or deposited after use because they either are not designed for recycling or because the available recycling technologies cannot handle the products. Several of the largest Danish companies prefer a change, and they would like recycling to increase by at least 20% before 2025.

Besides Topsoe, the project partners comprise Coloplast, Novo Nordisk, Danfoss, BASF, Grundfos and COOP. Danish Technological Institute has united the companies in a project called Circular Industrial Plastics.

“By joining forces, we expect to significantly increase knowledge and improve technologies for recycling of plastics. This project will address the issue of plastic waste that our society is struggling with by speeding up the transition to circular economy,” said Kim Gron Knudsen, Chief Strategy and Innovation Officer at Topsoe.

As per MRC, Topsoe’s technologies are set to reduce its customers’ greenhouse gas emissions by 12 MMt in 2022 alone. These reductions will not be one-offs but ongoing for the years to come. The key driver is Topsoe’s renewable fuels solutions, producing low-carbon fuels from waste and biomass.
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Eastman board declared dividend

Eastman board declared dividend

The Board of Directors of Eastman Chemical Company has declared a quarterly cash dividend of $0.76 per share on the company’s common stock, said the company.

The dividend is payable Oct. 7, 2022, to stockholders of record as of Sept. 15, 2022.

As per MRC, Eastman announced a planned increase of its Therminol 66 heat transfer fluid manufacturing capacity in Anniston, USA. The plant expansion is expected to be complete in 2024. With the expansion of its capacity for Therminol 66, Eastman increases its production volume for this heat transfer fluid in the US by 50?%. The expansion of the company’s plant in Annistion, USA, is expected to be completed in 2024.

Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2021 revenue of approximately USD10.5 billion and is headquartered in Kingsport, Tennessee, USA.
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