Chemours cuts second-half earnings forecast

Chemours has cut its full-year 2022 earnings guidance because of a continued decline in the demand outlook for titanium dioxide (TiO2) throughout Q3, most notably in Europe and Asia, said the company.

“Lower demand, coupled with continued high input costs, have impacted our projected results for the full year,” Mark Newman, CEO of the US-based producer, said in an update on Wednesday. In response, Chemours will be extending a scheduled outage on one of its production lines, in addition to other cost actions, he said without disclosing details.

Chemours’ adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for 2022 is now expected at between $1,400-$1,450m – at midpoint about 7% below the midpoint of the prior guidance range. However, earnings are expected to come in at about 9% above their 2021 level.

Chemours added that the reduction in the 2022 guidance was driven entirely by its Titanium Technologies segment.In its two other segments – Thermal & Specialized Solutions, and Advanced Performance Materials – Chemours expects “to drive 2022 earnings growth even as we enter the seasonally weaker second half,” Newman said.

“Our revised outlook assumes that the economic factors we’ve mentioned will not worsen or accelerate,” he added.

Chemours is due to announce its Q3 results after market close on 25 October.

We remind, 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. 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.

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Spanish energy giant Repsol is investing 100 MM euros to reduce emissions at its 186,000 bpd Tarragona refinery in Spain, which begins two months of maintenance at the end of the week, said Reuters.

The distillation and hydrotreating fuel units will stop simultaneously on Sept. 23, while the remaining areas of the Tarragona complex, such as the chemical plants, will continue to operate normally, Repsol said.

Repsol has dubbed the project "the most important turnaround ever carried out at the refinery".

The work is designed to improve the energy efficiency of the complex's facilities and prevent the emissions of 32,500 tonnes of carbon dioxide each year.

Repsol aims to be a net zero emissions company by 2050.

As per MRC, Repsol will build a new plant in Tarragona, with an investment of over EUR35 M for the manufacture of Cross-linkable Polyethylene (XLPE), a polymer used in cable insulation, located between the conductor and the outer protective layers. The plant will have an annual capacity of 27 kt and is scheduled to start in mid-2024. The LSHC (Linear Short Hyperclean) new technology selected for the plant, from Buss AG, will provide a product with very competitive properties, enabling Repsol to complete its product range for cables by incorporating materials for HV (high voltage) and EHV (extra-high voltage) cables.

Repsol is currently the leading producer and consumer of hydrogen on the Iberian Peninsula, and has renewable hydrogen as one of its key transformation pillarsfor achieving its goal of being a company with zero net emissions by 2050. The multi-energy company has its own renewable hydrogen strategy to deploy projects throughout the value chain, with a planned investment of 2,549 million euros by 2030.
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The European Commission (EC) has approved to Naftna Industrija Srbije (NIS) the acquisition of HIP Petrohemija Pancevo, they announced from Brussels, said Ekapija.

The EC has concluded that the acquisition “would not cause concern in the market regarding competition”.

The Commission has concluded that the proposed acquisition would not cause concern in the market when it comes to competition, considering the moderate combined market position of the companies which is the result of the proposed transaction – says the statement by the EC.

It is added that the petrochemical company is active in the production and distribution of products such as ethylene, polyethylene and synthetic rubber, whereas NIS is “a vertically integrated energy company”.

The EC added that the procedure had been examined within the simplified merger review procedure.

We remind, HIP Petrohemija declares FM on PE supplies from Pancevo. According to a letter sent to its customers, Serbia’s HIP Petrohemija declared a force majeure on all of its products from Pancevo, Serbia. The company had to declare the force majeure on July 28 due to unexpected issues at the company’s ethylene plant. In its integrated petrochemical complex, HIP PetroHemija produces more than 600,000 tons/year of petrochemical products, while the company’s Pancevo complex houses a 200,000 tons/year steam cracker, a 90,000 tons/year HDPE plant and a 60,000 tons/year LDPE plant.

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Neste Corporation and Marathon Petroleum Corporation (Marathon) announced an agreement to establish a 50/50 joint venture to produce renewable diesel following a conversion project of Marathon's refinery in Martinez, California, said Hydrocarbonprocessing.

All required closing conditions have been met, including the receipt of the necessary permits and regulatory approvals, and Neste and Marathon have today closed the transaction for the establishment of the joint venture to be called Martinez Renewables.

“With Martinez Renewables, we are taking one important step further in the execution of Neste’s renewables growth strategy. The partnership strengthens our footprint in the United States, with a renewable diesel production facility in the growing California market. This positions Neste as a global producer of renewable diesel, sustainable aviation fuel and renewable feedstock for polymers and chemicals, with production operations in Asia, Europe and North America,” says Matti Lehmus, Neste’s President and CEO.

Through Martinez Renewables, Neste obtains a 50% interest in the Martinez Renewable Fuels project. The facility will be operated by Marathon, and the production output will be split evenly between the joint venture partners. Upon completion, Martinez Renewables is expected to increase Neste’s renewable products capacity by slightly over 1 million tons (365 million US gallons) per annum.

Martinez Renewables is expected to commence production in early 2023. Pretreatment capabilities are expected to come online in the second half of 2023 and the facility is expected to be capable of producing 2.1 million tons (730 million US gallons) per year by the end of 2023.

As per MRC, Technip Energies has been awarded a significant contract by Neste for the expansion of their renewable products production capacity in Rotterdam, the Netherlands, as part of the existing Partnership Agreement between Technip Energies and Neste. The contract covers Engineering, Procurement services and Construction management (EPsCm) for the expansion of Neste’s existing renewables refinery in Rotterdam which will increase Neste’s overall renewable product capacity by 1.3 MMtpy.
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Air Liquide, Chevron, Keppel Infrastructure, and PetroChina announced they have signed an MoU to form a consortium which will aim to evaluate and advance the development of large-scale carbon capture, utilization, and sequestration (CCUS) solutions and integrated infrastructure in Singapore, said Hydrocarbonprocessing.

The consortium intends to research, test, and develop technological, logistical, and operational solutions for CCUS in Singapore. In doing so, the consortium will look to provide industry-wide CCUS integrated infrastructure, primarily to support the energy and chemicals sector, by capturing and aggregating carbon dioxide (CO2) from large industrial emitters at a centralized collection facility.

The CO2 could then be utilized to make useful products, such as plastics, fuels, and cement, and/or transported through either pipelines or ships to suitable reservoirs in the Asia Pacific region for sequestration via a process of injecting CO2 into deep underground geologic formations for permanent and secure storage.

Michele Gritti, vice president, Large Industries and Energy Transition, Air Liquide SEA Cluster, said: “Supporting the decarbonization of industry to help address the urgency of climate change is a priority. We are pleased to collaborate with Keppel Infrastructure, Chevron, and PetroChina in this decarbonization endeavor, leveraging our expertise and experience in carbon capture, purification, and liquefaction to build a comprehensive carbon capture decarbonization solution. In line with its Climate Objectives, Air Liquide is committed to support Singapore’s drive to achieve net-zero by 2050."

Chris Powers, vice president, CCUS, Chevron New Energies, said: “Chevron believes the future of energy is lower carbon, and we are committed to advancing technologies and forming strategic relationships to make it happen. We look forward to working with like-minded collaborators to progress and advance the development of large-scale CCUS solutions in the Asia Pacific region for decades to come."

Chua Yong Hwee, executive director (New Energy), Keppel Infrastructure said: “Hard-to- abate sectors need to leverage technology and innovation to transit towards net zero CO2 emissions. Keppel Infrastructure is well-positioned to support efforts to decarbonize key sectors, given our experience as a leading developer, technology solutions provider and operator of energy and environmental infrastructure in Singapore and the region. In line with Keppel’s Vision, 2030, which places sustainability at the core of its strategy, our collaboration with Air Liquide, Chevron and PetroChina will enable us to take another step towards addressing Singapore’s needs for a low carbon economy."

Li Shaolin, managing director of PetroChina International (Singapore), said: “There are various pathways to decarbonization, and CCUS has been identified as a strategic pathway to be thoroughly evaluated and developed. PetroChina is pleased to be part of this consortium with Air Liquide, Keppel Infrastructure and Chevron; a partnership that will leverage one another’s strengths, capabilities and respective ecosystems towards the advancement of large-scale CCUS solutions in Singapore. Participating in this initiative is our commitment to ensure harmony between the development of the energy industry and the environment, as we endeavor to make meaningful contributions towards Singapore’s goal of achieving Net Zero."

We remind, Air Liquide confirms its intention to withdraw from Russia. Taking a responsible and orderly approach, the Group has signed a Memorandum of Understanding with the local management team with the objective to transfer its activities in Russia in the framework of an MBO (Management Buy Out). This project is notably subject to Russian regulatory approvals. In parallel, as a consequence of the evolution of the geopolitical context, the activities of the Group in Russia will no longer be consolidated starting September 1, 2022.
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