Saudi Aramco joins oil results bonanza with 39% jump in net income

Saudi Aramco joins oil results bonanza with 39% jump in net income

MOSCOW (MRC) -- Saudi Aramco's net profit rose by 39.5% year on year to Saudi Riyal (SR) 159.1bn in the third quarter on the back of higher crude oil prices and volumes sold, said Reuters.

Net income growth in the third quarter was partially offset by increased production royalties largely attributable to higher average effective royalty rate resulting from stronger crude oil prices and higher sales volumes, the company said in a filing to the Saudi bourse, Tadawul.

“Global demand for petroleum products remained strong in the first nine months of 2022, which resulted in higher prices and volumes sold for hydrocarbons and improved refining margins, compared to the same period in 2021,” the company said in a separate statement. Saudi Aramco’s downstream unit swung to a third-quarter loss before interest, income taxes and zakat (EBIT) of SR4.25bn in the third quarter from a gain of SR14.8bn in the same period in 2021.

The third-quarter loss at the downstream business was driven by by inventory re-valuation losses as refined product prices, while higher compared to the same period in 2021, experienced a significant decline in the third quarter of 2022.

The company said that its long-term view is that oil demand will likely continue to grow for the rest of the decade, as will the world’s need for more affordable, reliable, and sustainable energy.

“Aramco intends to meet this growing demand by capturing unique growth opportunities and expanding its Maximum Sustainable Capacity (MSC), while enhancing integration of its Upstream and Downstream businesses and growing its liquids-to-chemicals capabilities,” it added.

We remind, Aramco announced the creation of a USD1.5 billion Sustainability Fund to invest in technology that can support a stable and inclusive energy transition. It was unveiled at the sixth edition of the Future Investment Initiative (FII) and is among the largest sustainability-focused venture capital funds globally. Managed by Aramco Ventures, the venture capital arm of Aramco, the fund is an extension of the Company’s efforts to meet the world’s growing energy demand, with lower greenhouse gas emissions.

ADNOC and Siemens Energy to co-develop blockchain-based low-CO2 energy certificates

ADNOC and Siemens Energy to co-develop blockchain-based low-CO2 energy certificates

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC) and Siemens Energy AG today announced plans to pilot blockchain technology to certify the carbon intensity of a range of products, said Hydrocarbonprocessing.

By using smart sensor data gathered from across ADNOC’s operational chain – from the oil well right to the customer – the pilot will show how much CO2 was used to make products such as Murban crude, ammonia, and aviation fuels. This information will be automatically recorded onto a decentralized blockchain ledger. Such transparency will allow independent regulators to certify the carbon intensity of products. It will also give customers greater confidence and clarity over the carbon footprint of their purchases.

Abdulmunim Saif Al Kindy, Executive Director, People, Technology & Corporate Support Directorate at ADNOC, said: “People typically associate blockchain technology with crypto currencies, but the use of decentralized ledgers has significant implications for the energy industry. This pilot promises to shine a digital spotlight into our manufacturing processes. It will show the world why energy supplied by ADNOC is among the least carbon intensive in the oil and gas industry."

The low-carbon energy certificate initiative forms part of a broader memorandum of understanding between ADNOC and Siemens Energy. Under the agreement, specialists from both companies will co-create technologies to accelerate decarbonization and the transition to clean energy. They will collaborate at ADNOC’s state-of-the art innovation facility in Abu Dhabi. Other areas under joint development include electrification and “Power-to-X” technologies to produce green hydrogen and its derivatives, including synthetic CO2-derived products.

Dr. Fahad Al Yafei, Chief Technology Officer, Siemens Energy Middle East, said: “By leveraging our unique knowledge and expertise of certificates of sustainability, Siemens Energy will work with ADNOC to develop solutions for the benefit of the energy industry. Investing in innovation and the co-creation of technologies are vital tools for reducing emissions and meeting Net Zero targets."

Under an agreement, signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), collaboration between ADNOC and the Siemens Energy Innovation Center will commence by the end of the fourth quarter of 2022. The agreement was signed by Sophie Hildebrand, Chief Technology Officer, ADNOC and Dr. Al Yafei.

The collaboration is the latest in a series of innovation partnerships between ADNOC and leading technological pioneers from around the world. The Siemens Energy Middle East Innovation Center is one of four global innovation hubs exploiting the company’s expertise in developing sustainable, reliable and affordable clean energy technologies.

We remind, Abu Dhabi National Oil Company (ADNOC) and GAIL (India) Limited signed a Memorandum of Understanding to explore collaboration opportunities in liquefied natural gas (LNG) supply and decarbonisation, including short and long term LNG sales agreements. The agreement also includes potential optimization of LNG trading activities, the review of joint equity investments in renewables and the monitoring of greenhouse gasses for LNG cargoes, to support low carbon LNG supplies.

Brenntag acquirined the Life Science business from Ravenswood

Brenntag acquirined the Life Science business from Ravenswood

MOSCOW (MRC) -- Brenntag has acquired the life sciences and coatings business from a fellow distributor in the Australia and New Zealand region, said the company.

The acquisition from Ravenswood, a specialties distributor with an expertise in blending, is expected to close on 2 December.

“Expanding our operations with the capabilities from Ravenswood in Australia and New Zealand and beyond, especially with the expertise in blending, will be a great addition for our customers in the APAC [Asia-Pacific] region,” said Henri Nejade, COO of Brenntag Specialties.

Ravenswood is headquartered in Bayswater, Australia, and operates two sites in the country, serving a broad range of customers in the region.

Financial details of the transaction were not disclosed, but the acquired business generated sales of around Australian dollar (A$) 65m (USD42m) in its financial year 2022, which ended 30 June.

As per MRC, Brenntag, the global market leader in chemicals and ingredients distribution, has become the exclusive distributor of Nouryon’s specialty polymers in the United State and Canada. As the sole distributor of Nouryon’s proprietary LumaTreat™ polymers, Brenntag can offer a portfolio including the patented LumaTreat™ smart-tagged polymers, Aquatreat™, Versaflex™, and Versa™ polymers which offer scale control and dispersancy.

HEXPOL has signed an agreement to acquire 100% of the shares in McCann Plastics

HEXPOL has signed an agreement to acquire 100% of the shares in McCann Plastics

MOSCOW (MRC) -- Swedish polymer group HEXPOL has agreed to acquire US thermoplastic compounding company McCann Plastics for USD120m on a cash and debt free basis, said Cision.

McCann Plastics, of North Canton, Ohio, is specialised in niche thermoplastic compounds, with special focus on roto moulding applications. Its main end customer segments are general industry, agriculture and specialised cooling boxes.

The company, with sales of USD72m in the past 12 months, has operations at two sites in Ohio and employs about 100 people. The acquisition, expected to close in the current Q4, is “fully in line with HEXPOL’s M&A strategy of acquisitions within polymer compounds,” HEXPOL said.

As per MRC, Hexpol has completed the previously announced acquisition of 100% of Union de Industrias C.A., S.A. (Unica) from Espiga Capital, a Spanish based Private Equity firm. Unica is a significant player in Rubber Compounds in Spain, supplying several demanding customers in the automotive, construction and agriculture sectors.

BEWI completes acquisition of EPS producer Jackon

BEWI completes acquisition of EPS producer Jackon

MOSCOW (MRC) -- Expandable polystyrene (EPS) producer BEWI has finalised its acquisition of EPS and extruded polystyrene (XPS) producer Jackon on 19 October 2022, said Buildersmerchantsnews.

Jackon will be consolidated into BEWI’s accounts from 1 November 2022, added the source. "We have been looking forward to this day for a long time and we cannot wait to get started with the integration of our two companies. Finally, we can welcome the Jackon employees to our organisation. We see a great potential in combining our two companies, creating strong synergies across our value chain," said CEO of BEWI, Christian Bekken.

BEWI originally announced the plans in October 2021 to acquire all shares in Jackon, and following this, offers were accepted by all shareholders in H1 2022. The acquisition was previously expected to conclude by the end of Q3 2022, following the completion of divestments.

EPS is a rigid form of polystyrene (PS) used in insulation foams for the construction industry as well as for packaging.

We remind, BEWI ASA has acquired 51% of Volker Gruppe, is a trader of compacted and recycled material. It operates two facilities in the UK and Scotland, where they compact material, and leases compactors to customers.
Volker Gruppe is one of the largest suppliers of EPS waste to BEWI Circular, with an annual collection of approximately 6,000 tonnes of EPS, in addition to several other types of waste streams, including LDPE, HDPE, WEEE, OCC and Paper. The company trades and processes around 25,000 tonnes of plastics and paper per year globally.

BEWI is an international provider of packaging, components, and insulation solutions. The company’s commitment to sustainability is integrated throughout the value chain, from production of raw materials and end goods, to recycling of used products. With a vision to protect people and goods for a better every day, BEWI is leading the change towards a circular economy. BEWI ASA is listed at the Oslo Bors under ticker BEWI.