Phillips 66 reports Q3 2022 financial results

Phillips 66, a diversified energy company, announces third-quarter 2022 earnings of USD5.4 billion, compared with earnings of USD3.2 billion in the second quarter of 2022.

Excluding special items of USD2.3 billion, the company had adjusted earnings of USD3.1 billion in the third quarter, compared with second-quarter adjusted earnings of USD3.3 billion.

“Third-quarter results reflect a continued favorable market environment, as well as strong operating performance and improved market capture,” said Mark Lashier, President and CEO of Phillips 66. “Our focus remains on operating safely and reliably producing critical energy products.

“In Midstream, we increased our economic interest in DCP Midstream to capture the value of a fully integrated NGL business from wellhead to market. Our Sweeny Frac 4 started up on time and under budget. With this latest expansion, we are now processing over 550,000 barrels per day of natural gas liquids at our Sweeny Hub.

“We demonstrated our commitment to shareholder distributions, returning USD1.2 billion through share repurchases and dividends during the quarter. We look forward to providing an update on our strategic initiatives and how we will continue to deliver shareholder value at our upcoming investor day.”

We remind, Phillips 66 and FreeWire unveiled plans earlier this year to deploy FreeWire’s ultrafast, battery-integrated technology to meet the growing demand from EV drivers for high-speed, on-the-go charging. Phillips 66 will leverage its network of approximately 7,000 Phillips 66, Conoco and 76 branded U.S. sites and other strategic locations. The chargers are the first commissioned FreeWire chargers in Texas.
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Celanese has completed the USD11bn acquisition of DuPont’s Mobility & Materials (M&M) business, the companies said.

With the acquisition, announced in February 2022, Celanese obtains a broad portfolio of engineered thermoplastics and elastomers, brands and intellectual property, global production assets, and a “world-class organisation”, it said.

We remind, the European Commission has approved the proposed USD11 billion acquisition of Dupont's mobility and materials business by U.S. chemicals company Celanese Corp (CE.N), on the condition that the latter divests a plastics-producing business. Celanese announced the deal in February but had to offer remedies to address EU antitrust concerns. The combined entity would have been the largest producer of thermoplastic copolyester (TPC) in the European Economic Area and globally, with only a few alternative suppliers remaining. The product is primarily used by automakers.

Celanese Corporation is a global chemical leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications.
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Marathon Petroleum’s Q3 net income rose more than six-fold year on year to USD4.5bn, with the refining and marketing (R&M) margin more than doubling, said the company.

Crude capacity utilisation was about 98%, with total throughput of 3.0m bbl/day in Q3 – compared with 93% and 2.8m bbl/day, respectively, in Q3 2021.

“Market demand for our products remains strong, and our third-quarter results reflect our improving operational and commercial execution,” said president and CEO Michael Hennigan.

Adjusted earnings before interest, taxes, depreciation, and amortisation (adjusted EBITDA) was USD6.8bn, up from USD2.4bn in Q3 2021.

We remind, Marathon Petroleum smashed quarterly profit estimates on Tuesday, the latest U.S. refiner to benefit from a surge in fuel prices sparked by tight capacity and low inventories. The company's refining and marketing margins tripled to USD37.54 per barrel in the April-June quarter, mirroring similar gains at rivals such as Phillips 66 and sending Marathon's shares 4% higher in premarket trading. Global refining capacity has declined in the past two years because the pandemic-driven demand hit forced several less profitable operations to shut shop, while Western sanctions against Russia have tightened an already-supplied market.
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Global energy giants including Exxon Mobil Corp. and Chevron Corp. posted another round of huge quarterly profits, benefiting from surging natural gas and fuel prices that have boosted inflation around the world and led to fresh calls to further tax the sector, said Hellenicshippingnews.

Four of the five largest global oil companies have now reported results, combining for nearly USD50 billion in net income, lifted by tight global markets and disruption following Moscow’s invasion of Ukraine.

The sheer size of the profits has revived calls from politicians and consumer groups to impose more taxes on the companies to raise funds to offset the hit to households, businesses and the wider economy from higher energy costs. They have also criticized big oil companies for not doing enough to raise production to offset rising fuel and heating costs.

Chevron Chief Financial Officer Pierre Breber warned in an interview with Reuters that “taxing production will just reduce it."

The company reported its second-highest profit of USD11.2 billion. However, the company’s global production is down so far this year from a year ago, and other U.S. oil companies signaled that output in the top-producing U.S. shale region is waning already.

“If you raise the costs on energy producers, it will decrease investment so that goes against the intent of increasing suppliers and making energy more affordable."

U.S. President Joe Biden, who earlier this year said Exxon was making “more money than God”, told oil companies this month that they were not doing enough to bring down energy costs.

Hours after Shell reported a quarterly profit of USD9.45 billion and raised its dividend by 15% on Thursday, Biden said the company was misusing its profits.

We remind, Cyclyx International, ExxonMobil and LyondellBasell announced they have signed an agreement to advance development of a first-of-its-kind plastic waste sorting and processing facility in the Houston area. The new facility addresses a critical missing link in the plastic waste supply chain by connecting community recycling programs to new and more advanced recycling technologies that have the potential to take a much wider variety of plastic materials.
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Due to the low market demand in Europe, Rohm extends the shut down of several methacrylate monomer production units in Worms into November, said Polymerupdate.

Rohm remains your reliable and committed Methacylates producer in Europe with two strong production sites in Worms and Wesseling serving our valuable customers.

We remind, Roehm intends to begin construction of its 250,000 tonnes per year methyl methacrylate (MMA) plant on the US Gulf Coast, with completion scheduled for 2023. Integrated into the OQ Chemicals manufacturing facility in Bay City, Texas, the plant will be the first to commercialize Roehm's low energy and wastewater LiMA MMA technology on an industrial scale. Separated from its former parent company Evonik and acquired by private equity firm Advent International in early 2019, Roehm has already hired Wood to provide engineering, procurement and construction (EPC) services for the project.

With 3,500 employees and 13 production sites worldwide, Rohm is one of the world’s leading manufacturers in the methacrylate business. The medium-sized company with branches in Germany, China, the USA, Mexico, and South Africa has more than 80 years of experience in methacrylate chemistry and a strong technology platform.

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