Indian Oil reports lower Q2 loss on government cash support

Indian Oil reports lower Q2 loss on government cash support

India's largest oil PSU, Indian Oil Corporation reported a net loss of Rs 272.3 crore on Saturday, down from a net loss of Rs 1,992 crore in the June quarter. Analysts in a CNBC-TV18 poll expected the company to report a net loss of Rs 14,476 crore for the July-September period, said Indiainfoline.

The fuel retailing major IOC has used 50 percent of the one time grant of Rs 22,000 crore given by the government to compensate the three government owned oil companies on their LPG under recoveries.

Under recoveries is the gap between the cost and the selling price of fuel. In case the selling price is lower than the cost price, higher is the under recoveries. The grant is a first by the finance ministry as generalised subsidies for cooking gas have stopped and is being targeted only for the Ujjwala consumers.

This has helped the company sharply reduce its quarter on quarter net loss from Rs 1,993 crore during April-June to Rs 272 crore in the July -September quarter. Of course the Indian basket of crude oil too declined during the second quarter, from ГЫВ105.49/bbl in July to ГЫВ90.71/bbl in September.

But the company has still reported a net loss of Rs 2,265 crore for H1 April-September FY23 vs a net profit of Rs 12,300 crore in H1 FY22.

Given the price freeze on petrol and diesel sales since last eight months industry estimates an over one lakh crore under recovery on fuel and LPG , while the actual cash loss to companies is roughly estimated at Rs 50,000 crore.
The Petroleum Ministry said last month “Fuel price rise in India have been contained in comparison to exponential rise in developed countries. Most of the developed nations have witnessed significant inflation rise in gasoline price by almost 40 percent during July 21 to Aug 22, while in India, gasoline price has reduced by 2.1 percent."

We remind, Indian Oil Corporation Limited is expanding the petrochemical capacity of its Gujarat refinery (LuPech Project). Nuberg EPC, the leading Indian Global EPC and turnkey project management company today announced that it has been selected by Indian Oil for the construction of Rs 650+ crore Sulfur Recovery Plant consisting of Sulfur Recovery Unit (1 x 400 TPD) including control room and substation for sulfur block under international competitive bidding. Indian Oil, a Government of India Enterprise, is the country's top refiner and fuel retailer. The Sulphur Recovery Plant is being built with in Indian Oil's existing facility of Vadodra, Gujaratfor Petrochemical and Lube Integration Project.

SABIC posts 67% fall in Q3 profit on higher costs, impairment

SABIC posts 67% fall in Q3 profit on higher costs, impairment

Saudi petrochemicals major SABIC posted a 67.1% year-on-year drop in its third quarter net profit on the back of higher costs despite an increase in sales volumes, said Reuters.

The company's third-quarter net income was weighed by higher cost of sales and an increase in selling and distribution costs, SABIC said in a filing to the Saudi bourse, Tadawul on 30 October.

The company said that an impairment provision of SR510m "was recognised in financial assets", without elaborating further.

On a quarter-on-quarter basis, SABIC's net profit fell by 76.8% in July-September this year as sales dropped by 16.3% amid lower selling prices.

The average sales prices in the third quarter of 2022 decreased by 15% compared with the second quarter, it said.

Sales volumes also decreased by 1% in the third quarter of 2022 compared with the second quarter.

For the first nine months of this year, SABIC said that the year-on-year drop in its net income was due to the rise in costs and higher feedstock prices, on top of higher selling and distribution costs.

As per MRC, SABIC, a global leader in the chemical industry, has named Conventus Polymers LLC, as an authorized distributor of high-performance engineering thermoplastics in the US, Canada and Mexico. Conventus Polymers will provide SABIC customers with products from SABIC's Specialities business, including ULTEM resins and LNP compounds, and related services such as application development and customer support.

Teijin Frontier launches facility for producing functional polyester filaments

Teijin Frontier launches facility for producing functional polyester filaments

Teijin Frontier Co., Ltd., the Teijin Group’s fibers and products converting company, announced that its core base for polyester fiber manufacturing, Teijin Polyester (Thailand) Limited (TPL), launched a cutting-edge automated facility for the highly efficient production of polyester filaments, said Polymerupdate.

Operation began this month. The new facility is equipped with multi-spindle spinning machines for polyester multifilament yarn and machines capable of adding functional agents. Teijin Frontier invested approximately JPY one billion to construct the facility, which is expected to produce 1,500 tons of polyester filaments annually by the fiscal year ending in March 2024.

The facility will enhance the added value of TPL including through extra-efficient spinning and an automated process for the uniform drying of multifilament. TPL will effectively use the new facility to produce Teijin Frontier’s proprietary polyester filaments for apparel and interior applications, such as the Octa TM highly modified hollow-core fiber and a water-absorbing quick-drying yarn.

Teijin Frontier expects to expand the range and improve the functionality of its ECOPET® recycled polyester fibers by integrating the new facility with a separate facility that started operating at TPL in January to convert used plastic bottle flakes sourced in the Thai market into recycled polyester chips. The new facility accommodates various special polymers and recycled raw materials and additionally can add functional agents to raw yarn for the production of new types of functional polyester filaments.

We remind, Teijin Frontier Co., Ltd., the Teijin Group's fibres and products converting company, has developed an 'eco-friendly' tire cord made from an adhesive that does not contain resorcinol formaldehyde (RF). Designed for rubber reinforcement, the cord also delivers ‘low environmental impact’ through incorporating chemically recycled polyester fibre, said the company in a 12 Sept statement.

Italy looks to unlock financing for Lukoil-owned refinery

Italy looks to unlock financing for Lukoil-owned refinery

Italy is working on ways to keep a Lukoil-owned refinery in business despite new sanctions against Russia kicking in next month, as Rome tries to buy time to agree the sale of the plant, three sources close to the matter told Reuters.

Lukoil's ISAB refinery in Sicily stands to be hit by an embargo on seaborne Russian oil that comes into force on Dec. 5, putting at risk jobs in Italy's poorer south and the country's refining capacity.

Although Lukoil is not affected by the sanctions, the ISAB plant has been forced to rely solely on Russian oil after creditor banks halted financing and stopped providing guarantees the refinery needs to buy oil from alternative suppliers.

Adolfo Urso, industry minister in Italy's new government, on Thursday said a solution would be found in coming weeks.

The sources said the government was trying to find ways to ensure the plant can receive financing from lenders and remain operational.

The issue was discussed in a meeting at Italy's industry ministry on Oct. 17 with representatives from Italy's top two banks, Intesa Sanpaolo and UniCredit, and from state-owned export credit agency SACE, minutes of the meeting seen by Reuters showed.

Lukoil was not immediately available for comment.

We remind, Lukoil has named a new top manager at its refinery in Sicily amid efforts by the Italian government to find a buyer for the plant and shield it from sanctions on Russian oil. The Russian group has picked Eugene Maniakhine as director general at its ISAB plant in the Sicilian town of Priolo, Lukoil's Italian unit said in a statement.

Dorf Ketal to acquire Clariant land oil business in North America

Dorf Ketal to acquire Clariant land oil business in North America

Clariant and Dorf Ketal, two of the world's leading specialty chemical products and services companies, have today announced a definitive agreement for Dorf Ketal to acquire Clariant's North American (NORAM) Land Oil business, a provider of chemical technologies and services to the North American oil and gas industry, said the company.

The transaction announced today is subject to regulatory and other customary closing conditions and is expected to be finalized during the first quarter of 2023.

Clariant's NORAM Land Oil business, which posted 2021 revenues of USD113 million, represents an exciting growth opportunity for Dorf Ketal. Once completed, the acquisition will include all the assets of Clariant's NORAM Land Oil business, including a team of 170 employees in North America, a technology portfolio of more than 40 patent families, and manufacturing units located in Bakersfield, California; Midland, Texas; and Black Hills, Texas producing more than 2,000 formulations for drilling, production, and stimulation.

"This acquisition will bring additional strategic assets, innovative new technology, talented people, and strong customer relationships into Dorf Ketal," said Sudhir Menon, Chairman, of Dorf Ketal Chemicals India Private Limited. "Upon completion, it will enable our continued growth in North America – a significant and growing market for energy services, further aligning with our global focus and commitment to providing innovative services throughout the energy sector."

"The divestment of the North American Land Oil business is another logical step in repositioning Clariant's portfolio towards true specialty chemicals and in our sustainability transformation journey. With its strong reputation as a supplier of premium oilfield chemical products and services, its geographical presence, and its solid customer relationships, Dorf Ketal is the right owner for the combined business, for our employees, customers, and other stakeholders," said Conrad Keijzer, CEO at Clariant.

We remind, Clariant will create a second production line at its new CHF 60 million state of the art facility for Exolit OP halogen-free flame retardants currently under construction in Daya Bay, China. This additional CHF 40 million investment will further expand access to innovative and sustainable fire protection solutions and related technical expertise to support the significant growth of engineering plastics applications in E-mobility and electrical & electronic segments.