ConocoPhillips earns significantly less in 1Q 2023

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.

mrchub.com

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.

mrchub.com

A Marathon Petroleum worker has died from injuries suffered in a fire that broke out on Monday at the company’s giant Galveston Bay Refinery in Texas City, Texas, said Reuters.

The fire broke out at about 9:30 a.m., the company said. “A Marathon employee has passed away as a result of the fire today at Marathon Petroleum’s Galveston Bay refinery,” company spokesperson Jamal Kheiry said in an emailed response to Reuters.

The fire has been extinguished and the cause of the fire is under investigation, Kheiry said. Two people familiar with the matter said the fire broke out when workers were doing routine maintenance and a seal failed on the 75,000 barrel-per-day (bpd) Ultraformer 3 (UU-3).

UU-3 is the bigger of two reformers at the 593,000-bpd refinery, which is the second largest in the United States, according to the U.S. Energy Information Administration. Reformers convert refining byproducts into octane-boosting components added to gasoline.

“Emergency responders are on the scene, and all employees and contractors are being accounted for currently,” the company said in a statement, adding that Marathon had made all regulatory notifications.

The Texas City Emergency Management Department said on Twitter earlier that a shelter-in-place order was not needed. A contract worker died in March after receiving an electric shock at the refinery. Texas City is located 42 miles southeast of Houston.

We remind, Marathon Petroleum has acquired a 49.9% interest in renewable natural gas (RNG) company LF Bioenergy for USD50mln. Marathon may pay a potential additional USD50m, based on certain earn-out targets. Dallas, Texas-based LF Bioenergy is described as an emerging RNG company, focused on developing and growing a portfolio of dairy farm-based, low carbon intensity RNG projects.

mrchub.com

Borealis announces that it is using the occasion of the Plastics Recycling Show Europe (PRSE) in May to highlight a new monomaterial pouch containing over 95% PP and designed for recycling, said the company.

Developed in collaboration with value chain partners, this more sustainable high barrier packaging format offers a range of benefits for the blown and cast film extrusion processes as well as for brand owners and end consumers. As a monomaterial PP packaging format, it can help meet ambitious recycling and waste reduction targets set forth in the EU’s Packaging and Packaging Waste Regulation (PPWR) as well as eco-modulation criteria for Extended Producer Responsibility (EPR) programmes.

High barrier packaging is used to preserve and protect foodstuffs that are sensitive to moisture, oxygen, aromas, and light, like dry ingredients and powders, coffee, and snack foods. Producers and consumers benefit from the longer shelf life and reduced food waste made possible by these convenient high barrier pouches. In the extrusion lamination process, laminating PP cast and BOPP (biaxially oriented polypropylene) films yields mono PP laminates with uniquely advantageous properties. These include high barrier and stiffness, and excellent sealing performance.

Using conventional adhesion lamination structures, producers have previously been able to obtain pouch laminate materials containing approximately 90% PP. However, by pooling their respective areas of expertise, Borealis and value chain partners have now been able to boost the share of PP to over 95%. When processed within dedicated mechanical recycling streams for PP, this monomaterial pouch yields greater volumes of high-quality recyclate fit for use in non-food, flexible PP packaging applications. It is thus the ideal format with which to fulfil the principle aims of the PPWR: improve recyclability, grow the market for recycled content, and reduce packaging waste.

We remind, Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics, is launching Stelora, a new class of sustainable engineering polymer offering increased strength, durability and a step change in heat-resistance capability.

mrchub.com

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, said Hydrocarbonprocessing.

Schwedt was operating at 50-60% capacity earlier this year after Germany stopped oil supplies from Russia because of Russia's invasion of Ukraine. Germany has been working with Poland to try to secure supply for Schwedt via the oil terminal in Gdansk and the Polish section of the Druzhba pipeline.

"Last week I talked to the refinery chief executive and he clarified that from June they will be able to produce at 70% or more," Kellner told reporters as the tanker carrying Saudi Arabian oil arrived at Gdansk's Naftoport terminal.

Berlin took control of the Schwedt refinery last year after Russia's invasion of Ukraine, placing Rosneft Deutschland under trusteeship of the German industry regulator.

While Russian energy group Rosneft still owns 54.17% of the refinery, Germany has prepared legislation that allows a quick sale of the Russian energy group's stake without the need for nationalization.

We remind, Germany plans to adjust its Energy Security Act to allow a quick sale of Russian energy group Rosneft's stake in the Schwedt refinery without the need for prior nationalization, a draft law showed. Under the planned adjustment to the law, the condition of prior nationalization of assets put under government trusteeship could be withdrawn if the sale of the assets is needed to ensure that Germany's energy sector remains functional, the draft law.

mrchub.com