PKN Orlen’s Q4 petrochemical operating profit dropped 76.9% to zlotych (Zl) 270m (USD60.5m) on lower margins plus higher overheads and labour costs amid an economic downturn, as per Reuters.
Orlen’s Q4 2022 model petrochemical margin fell 8.6% to EUR1,056/tonne from EUR1,155/tonne in the third quarter of 2022. Versus the fourth quarter of 2021, it declined 15.7% from EUR1,253/tonne.
Orlen’s Q4 petrochemical sales volume amounted to 1.1m tonnes, flat against the figure recorded for the third quarter of last year and 12% lower versus 1.3m tonnes in the fourth quarter of 2021.
For polymers, the sales volume declined 2% year on year to 161,000 tonnes in the fourth quarter of 2022 from 165,000 tonnes in the fourth quarter of 2021.
For purified terephthalic acid (PTA), sales rose 28% to 120,000 tonnes in the fourth quarter of 2022 from 94,000 tonnes in the fourth quarter of 2021.
For fertilizers, it declined 22% to 201,000 tonnes in Q4 2022 from 257,000 tonnes in the fourth quarter of 2021.
The group net result (as presented in the table above) does not include a one-off profit on what Orlen described as its “bargain purchase” of fellow state-controlled group PGNiG, which cost Zl 8.2bn.
Orlen said it expected its petrochemical model margin to be around EUR1,100/tonne as a result of a drop in demand for petrochemical products due to the economic slowdown and ongoing inflation.
We remind, PKN ORLEN, finalised a transaction to acquire a part of Poland’s largest plastics manufacturer, Basell Orlen Polyolefins, in which the ORLEN holds an equity interest. The acquisition was approved by the antitrust authorities in Poland and the Netherlands. The business segment, acquired by ORLEN, specialises in the production and sale of low-density polyethylene (LDPE) as well as customer service in the Polish market. It is a polymer commonly used to make consumer and industrial products, found in plastic films, bags, canisters, food packaging, as well as components of electronic devices, such as wires and cables.
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Fluor Corporation announced financial results for its year ended December 31, 2022. Revenue for 2022 was USD13.7 billion and net income from continuing operations attributable to Fluor was USD145 million, or USD0.73 per diluted share, said the company.
Consolidated segment profit2 for the year was USD427 million compared to USD415 million in 2021. Excluding the adjustments outlined in the reconciliation table at the end of this release, the company recognized adjusted earnings per diluted share2 of USD0.82 for 2022. Results for the year reflect an average tax rate of 70% due to the current mix of global earnings and losses in jurisdictions that provide no tax benefit.
“In 2022, we demonstrated our resilience, continued to grow and remained steadfast in taking actions to achieve positive results,” said David Constable, chairman and chief executive officer of Fluor. “With a renewed sense of confidence, I am excited about the opportunities in front of us and encouraged by our ability to deliver significant shareholder value now and in the years ahead."
Full year new awards were USD19.8 billion compared to $10.0 billion a year ago. Ending backlog for 2022 was USD26.0 billion compared to USD20.8 billion in the prior year. General and administrative expenses for 2022 were USD237 million compared to USD226 million a year ago. Fluor’s cash and marketable securities at the end of the year were USD2.6 billion, including USD338 million in cash and marketable securities held by NuScale.
We remind, Fluor Corporation announced that its Advanced Technologies & Life Sciences business was selected by Agilent Technologies, Inc., to expand its oligonucleotide therapeutics manufacturing facility in Frederick, Colorado, just north of Denver. Fluor is supporting engineering and procurement as part of the project. The total project value is USD725 million.
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Saudi Chemical Holding Co.’s (SCHC) subsidiary Saudi Chemical Co. Ltd., in partnership with a local company, received a gas allocation letter from the Ministry of Energy to establish a facility for the production of nitric acid and ammonium nitrate, said the company.
The facility’s annual production capacity for nitric acid will be 440,000 tons, and for ammonium nitrate will be 300,000 tons, SCHC said in a statement to Tadawul.
The project is the first of its kind in the region. It provides the raw materials required for several downstream industries in local markets, mainly civil and military explosives, fuel of missiles and rockets propellants, smelting salts used in the production of solar panels, in addition to some pharmaceuticals.
The financial impact of this announcement cannot be determined at present, the statement noted, adding that any future developments will be announced.
We remind, the Ministry of Investment of Saudi Arabia has inked an agreement worth $1 bn with UPL Ltd to produce specialized agriculture chemicals within the Kingdom.
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