Indorama Ventures receives upgraded MSCI ESG rating

Indorama Ventures Public Company Limited, a global sustainable chemical producer, was upgraded to "A" from "BBB" in MSCI’s ESG rating, reaffirming the company’s effective management of sustainability related risks and opportunities, said the company.

MSCI (Morgan Stanley Capital International), an independent provider of research-based indices and analytics, ranked Indorama Ventures among the top 14% of 65 companies worldwide in the commodity chemicals industry. The rating has placed it in the top quartile for opportunities in clean tech, water stress, corporate governance, and corporate behavior.

Indorama Ventures is committed to reducing water intensity by 10% by 2025 and 20% by 2030. It developed a Water Risk Assessment Report on its contributions to achieving sustainable management of water targets and the United Nations Sustainable Development Goals (UN SDGs). For improved corporate governance, the company provides whistleblowers with protection from retaliation, and has policies on business ethics and anti-corruption. Relating to opportunities in clean tech, Indorama Ventures’ is investing in recycling technology and biomass feedstock under its Vision 2030, and is also investing in operational efficiencies, carbon capture technology, renewable energy, and phasing out coal to reduce Scope 1 and Scope 2 greenhouse gas emissions.

Yash Lohia, Chairman of the ESG Council at Indorama Ventures, said, “We are proud to achieve the rating of 'A', which underscores our efforts to build resilience around ESG risks, aligned with our purpose of reimagining chemistry together to create a better world."

We remind, Indorama Ventures Public Company Limited (IVL) are collaborating to use flake from recycled PET trays to produce PET film suitable for food packaging trays, said the company. The partnership is an important step in diverting PET trays from landfill or incineration to support the EU’s recycling targets and create a circular economy for PET trays.

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The Wacker chemical group headquartered in Munich, Germany, has acquired 100% of the shares of contract manufacturing company (CMO) ADL BioPharma, said the company.

The shares were purchased from Kartesia, a financial investor with whom Wacker signed a corresponding agreement finalizing the transaction last week. Following Wacker's purchase of fermentation assets in the northern Spanish city of Leon in 2016, the chemical group now owns the entire site.

The acquisition of the company, employing a staff of roughly 300, expands Wacker's fermentation capacities by approximately 2000 cu m (gross volume) and adds additional capacities for recovery and purification processes. Wacker will continue and grow existing customer relationships maintained by ADL BioPharma in its capacity as CMO for fermentation-based products for the food, pharmaceutical and consumer goods industries.

The purchase price for the acquisition exceeds EUR 100 M. Wacker Biosolutions, the life science business of the Wacker Group, has operated fermentation plants at the Leon site for the past seven years. The acquisition of ADL BioPharma now makes Wacker owner of the entire plant, with total fermentation capacities of just under 3000 u m (gross volume).

We remind, Wacker Group is concentrating its biotechnology research activities in Munich. The company is investing a double-digit million-euro sum in the construction of a Biotechnology Center, which is scheduled to be operational in 2024.

Wacker SILICONES is one of the largest silicone manufacturers worldwide with over 2,800 highly specialized and innovative products. The division’s portfolio ranges from silicone fluids, emulsions, resins, elastomers and sealants to silanes, silane-terminated polymers and pyrogenic silica.

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Turkey doubled Russian Urals oil imports in the first half of May versus the same period of April, according to Refinitiv Eikon data and Reuters calculations, as the country profits from cheap crude that is sanctioned by the West.

Some 193,000 barrels per day (bpd) of the Russian grade were loaded for supplies to Turkey's ports during May 1-15 compared with 96,000 bpd during the same period of April, the data shows.

India remains the main importer of Urals oil loading from Russian ports this month, buying more than 50% of the volumes so far, while China remains in the second place. Chinese refiners have been increasing their buying of Urals and are expected to ramp up purchases this month.

Russia's oil exports from its Western ports are expected to reach a four-year high this month, while lower global oil prices are keeping Urals below the price cap imposed by some Western countries and attracting buyers worldwide.

Turkey, which remains the only major importer of seaborne Urals in the European region after an EU embargo, has bought 153,000 bpd of the grade loading so far this year, according to Refinitiv Eikon and Reuters calculations. That is unchanged from the same period of 2022.

Turkey's ability to import Russian oil is limited by its refining capacity and competition with refiners in India - the main importer of seaborne Urals cargoes since last year, two traders said.

One of the traders added that Turkey's refiners experienced several issues with payments for Russian oil. Though Istanbul didn't join Western sanctions on Moscow it's companies are integrated in the international financial system and work with major Western banks.

We remind, Germany's Schwedt oil refinery will run at 70% of capacity from June, German state secretary Michael Kellner said on Friday as he greeted a tanker arriving at the Gdansk terminal in Poland with non-Russian oil en route to the refinery. Schwedt was operating at 50-60% capacity earlier this year after Germany stopped oil supplies from Russia because of Russia's invasion of Ukraine.

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The oil producer ConocoPhillips posted significantly lower earnings in 1Q 2023 than in 1Q 2022 because because of declining oil prices, but still surpassed analysts' projections, said the company.

The US firm announced a net profit of USD2.9 bn, a decline from USD5.8 bn in 1Q 2022. Earnings stood at USD2.38/share, an increase from USD4.39/share in 1Q 2022.

Analysts had anticipated average earnings per share of only USD2.06/share. Production for 1Q 2023 stood at 1.792 M barrels of oil equivalent/d, an increase of 45 M barrels/d from 1Q 2022. The consensus estimate for production had been 1.752 M barrels of oil equivalent/d.

For 2Q 2023, ConocoPhillips expected production between 1.77 M barrels of oil equivalent/d to 1.81 M barrels of oil equivalent/d.

We remind, ConocoPhillips has marked its 10th year as an independent exploration and production company in 2022 with full-year earnings of USD18.7 billion, and was delighted to add several high-quality projects to its global portfolio. Project additions included interests in QatarEnergy’s enormous North Field East and North Field South liquefied natural projects in Qatar. Other highlights were the licence extension to 2048 for its flagship Greater Ekofisk project in Norway, and licence adjustments to 2039 for the large Penglai oilfields in China.

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Cepsa and the Spanish National Research Council (CSIC) have signed an agreement to research the viability of planting energy cover crops in different rural areas across Spain, said the company.

These crops are known as "cover crops" because they protect the soil from erosion between the main planting periods, and "energy crops" because they provide the organic matter needed to produce second-generation (2G) biofuels.

The objective of this collaboration, the first of its kind between the scientific institution and an energy company, is to conduct a technical and economic study of different parts of the country and determine where these crops could be planted. In addition to analyzing their viability, the study, which will last one year, will determine the most suitable types of crops for each area and their CO2 absorption capacity, identifying the most beneficial in environmental terms.

This will complement Cepsa's sources of raw materials to produce this type of biofuels, one of the industry's main challenges, while also promoting Spain's greater autonomy in terms of energy supply and independence. The CSIC's participation in this project is part of the organization's policy of transferring its research results in the private sector, the main way for public research to have a real impact on society. This initiative is led by the Green Horizon Interdisciplinary Thematic Platform and involves, from a multidisciplinary perspective, researchers from three CSIC centres: the Institute for Sustainable Agriculture (IAS), the National Institute of Agricultural and Food Research and Technology (INIA) and the Instituto de la Grasa (IG).

The use of biofuels can reduce CO2 emissions by up to 90% compared to traditional fuels, making them a key element in enabling a fair energy transition and promoting the decarbonization of transportation, especially in sectors where electrification is complex, such as heavy road, air and maritime transportation. This agreement is in line with Cepsa's goal of leading 2G biofuels manufacturing in Spain and Portugal by 2030. The company will then have an production capacity of 2.5 M tonnes/y of biofuels, of which 800,000 tonnes will be sustainable aviation fuel (SAF), enough sustainable jet fuel to fly over the planet 2000 times.

As part of its 2030 Positive Motion strategy, the company is driving the development of an ecosystem focused on accelerating its own decarbonization and that of its customers, through the production of green molecules, mainly renewable hydrogen and 2G biofuels, to become a leader of the energy transition. In its strategic plan, the company has established a roadmap to cut its emissions, which places itself among the most ambitious companies in its sector. Specifically, in 2030, it will reduce its CO2 emissions (scope 1 and 2) by 55% and its carbon intensity index by 15-20%, with the objective of achieving net zero emissions by 2050. Cepsa wants to go beyond net zero and have a positive impact, adding value in the communities where it operates by enabling its customers and other stakeholders to move forward in the right direction.

We remind, Cepsa plans to nearly double its investments over the next three years to a total of 3.6 B euros (USD3.82 B), with more than half of that amount going to sustainable energy and mobility. It also posted a full-year net profit at current cost of supplies (CCS) of 790 MM euros for 2022, up sharply from the 310 MM euros reported in 2021. The planned investment increase of 93% for 2023-25 is from the previous three years, Cepsa said.

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