SABIC publishes Sustainability Report highlighting “Sustainable Growth for a Better World”

SABIC marked a series of important strides in its sustainable growth in 2022, underpinned by advancements in feedstock optimization, technology, and new partnerships, said Polymerupdate.

The company debuted a string of sustainable offerings last year, including its BLUEHERO™ initiative, which helps accelerate the world’s energy transition to electric power and address the global challenge of climate change.

In recognition of the breadth of environmental challenges facing the industry and world, SABIC also scaled up its collaborations across the value chain. SABIC kicked off construction of the world’s first demonstration plant for large-scale electrically heated steam cracker furnaces with partners BASF and Linde. It also began innovative pilot projects, including one aimed at evaluating how blockchain technology can enable end-to-end digital traceability of circular feedstock in customer products.

Energy efficiency, renewable energy, initial electrification and carbon capture were confirmed as priority areas for lowering SABIC’s absolute greenhouse gas emissions per its interim 2030 targets. The report also affirms that further scaling electrification and green/blue hydrogen will be key to its long-term Carbon Neutrality Roadmap.

We remind, SABIC participated in a ceremony to announce the first package of Shareek projects involving large companies in Saudi Arabia. The event was held in the presence of several dignitaries, senior businessmen and heads of major companies participating in the program. During the ceremony, SABIC announced a strategic project to manufacture catalysts, aiming to transform Saudi Arabia into a manufacturing hub for specialized materials in line with the national industrial strategy.

mrchub.com

The Board of Directors of Westlake Corporation declared on 12 May 2023 a regular dividend distribution of USD0.357/share for 1Q 2023, said the company.

This dividend will be payable on 8 Jun 2023, to stockholders of record on 23 May 2023.

We remind, Westlake’s Q1 net income fell 47.9% year on year to USD394m, the US-based chemicals and building products company reported. The main reasons for the decline were: Lower average sales prices and integrated margins in the company’s Performance Materials segment; Lower production and sales volumes, especially in the Housing and Infrastructure Products (HIP) segment. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 36.5%, and the EBITDA margin fell to 25%, from 32% in Q1 2022.

Westlake is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer.

mrchub.com

Oil prices slipped on Monday as economic worries over further interest rate hikes trumped a tentative debt ceiling deal reached in the U.S., possibly averting a default in the world's largest economy and oil consumer, said Hydrocarbonprocessing.

Brent crude futures slipped 68 cents, or 0.8%, to USD76.27 a barrel by 1350 GMT, while U.S. West Texas Intermediate crude was at USD72.11 a barrel, down 56 cents or 0.7%. Trade is expected to be subdued on Monday because of UK and U.S. public holidays.

U.S. President Joe Biden and House Speaker Kevin McCarthy over the weekend forged an agreement to suspend the $31.4 trillion debt ceiling and cap government spending for the next two years. Both leaders expressed confidence that members of the Democratic and Republican parties will vote to support the deal.

Still, analysts saw any boost in oil prices from the debt deal as short lived, with earlier gains in the session now lost. The U.S. Federal Reserve may still raise interest rates in June, IG's Sydney-based analyst Tony Sycamore said. "Higher U.S. rates are a headwind for crude oil demand," he added.

Markets are leaning towards expecting the Fed to raise rates by 25 basis points next month, then keep rates steady for the rest of the year. Chinese stocks fell after data showed profits slumping at China's industrial firms.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, is due to meet on June 4. Saudi energy minister Abdulaziz bin Salman warned short-sellers betting that oil prices will fall to "watch out", in a possible signal that OPEC+ may further cut output.

However, comments from Russian oil officials and sources, including Deputy Prime Minister Alexander Novak, indicate the world's third-largest oil producer is leaning towards leaving output unchanged. "Traders have been left a little confused as to what we can expect," said Craig Erlam, senior markets analyst at OANDA.

"It may be that Saudi Arabia wants to keep traders on their toes, but to make these comments and not follow through could be perceived as weak and see prices drift lower again," Erlam said.

We remind, Russia is leaning towards leaving oil production volumes unchanged ahead of an OPEC+ policy meeting on June 4 because Moscow is content with current prices and output, three sources with knowledge of current Russian thinking told Reuters. OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, surprised the market on April 2 with further output cuts that pushed up the price of oil.

mrchub.com

Turkey's purchases of Russian Urals oil hit a seven-month high in May as Turkish refiners took advantage of low prices for the grade, Refinitiv Eikon data showed and traders said, as per Hydrocarbonprocessing.

Turkey is the only major importer of seaborne Urals in Europe after most other countries in the region agreed an embargo on such purchases over Russia's actions in Ukraine, which Moscow calls a "special military operation".

Turkish President Tayyip Erdogan and his supporters on Monday celebrated an election win that extended his rule into a third decade, promising continued trade with Russia. Russian President Vladimir Putin congratulated his "dear friend".

Some 230,000 barrels per day (bpd) of Urals oil were loaded for delivery to Turkey's ports in May, the highest level since October 2022 and nearly double April's supplies, according to Refinitiv Eikon data and Reuters calculations.

Refiners in the Mediterranean, meanwhile, are suffering from shortages of sour oil as Iraq halted around 450,000 barrels per day (bpd) of crude exports from the Kurdistan region at the end of March after winning an arbitration case against Turkey.

Turkey increased Urals oil imports last year and has bought about 150,000 bpd of the grade so far this year, according to Refinitiv Eikon data and Reuters calculations, nearly the same as in January-May 2022.

Turkey's ability to import Russian oil is limited by its refining capacity and competition with refiners in Asia, traders said.

We remind, Russia is leaning towards leaving oil production volumes unchanged ahead of an OPEC+ policy meeting on June 4 because Moscow is content with current prices and output, three sources with knowledge of current Russian thinking told Reuters. OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, surprised the market on April 2 with further output cuts that pushed up the price of oil.

mrchub.com

Leading crude exporter Saudi Arabia is maximizing refining profits by importing unprecedented amounts of cheap Russian diesel and in turn shipping record volumes to Singapore, where the fuel can achieve higher margins, shiptracking data shows, said Hydrocarbonprocessing.

Russia has had to divert the volumes it sold to Europe, previously its dominant product market, after the European Union banned oil product imports in February as part of its response to Moscow's invasion of Ukraine.

That allowed state oil giant Saudi Aramco to increase its May import arrivals to Singapore to record levels and cash in on better arbitrage netbacks in the east than Europe, driven by tighter Asian supply during the maintenance season, traders and analysts said.

"Diesel supply in Singapore is relatively tight due to regional refinery maintenance, while Middle East supplies are rising, which may create spot arbitrage opportunities for traders to move the cargoes (to Singapore)," Vortexa's head of APAC analysis Serena Huang said.

Saudi Arabia will import up to 500,000 tons (3.7 million barrels) or more of Russian diesel in May, with most of it arriving at Ras Tanura, where one of Saudi Aramco's refineries is located, two trading sources, Kpler and Refinitiv showed.

At the same time, diesel from Saudi Arabia arriving in Singapore is set to hit 400,000 tons - an unprecedented level, data from Refinitiv, Vortexa and two industry sources found. The sources asked for anonymity because they were not authorized to speak to the media.

The rise in Saudi supplies could replenish Singapore stocks as exports from northeast Asia fall during the refinery overhaul season between May and July, the sources added. It is however unclear whether Saudi Arabia was storing some of its own production and shipping mostly Russian supplies via swap trades instead since both are of typical diesel specifications.

Russian 10 ppm sulfur gasoil cargoes are traded at discounts of around USD30 a barrel to free-on-board Middle East quotes, versus Asia's spot premiums for the same grade at 16 cents a barrel to Singapore quotes, according to trade sources and Refinitiv data.

Globally, Saudi's diesel exports in April hit an all-time high of around 3.7 million tons, Kpler data showed. Jizan refinery, solely owned by Aramco, had been expected to increase diesel exports when crude runs stabilize. Aramco declined to comment.

FGE analyst Lu Yawen said more Middle East gasoil cargoes were heading east rather than west to Europe, where high inventories and weak economic growth have depressed prices. Falling freight costs also aided the arbitrage flow, two other oil and shipping analysts said.

The cost to charter a Long Range (LR) vessel on the Middle East to Singapore route has dropped to slightly below $25 a ton from around USD34 a ton in the last two months, they added. That is half the cost for the same ship to travel to Europe, they said.

Global diesel supplies have increased since the start of 2023, with China and the Middle East ramping up exports and as mild winter in Europe capped demand, helping to reduce prices. Asia's 10 ppm sulfur gasoil spot premiums and refining margins have fallen by more than USD8 and $1.50 a barrel, respectively, in the last two months, Refinitiv Eikon data showed.

Additions to refinery capacity of 700,000 barrels a day expected this year will further pressure east-of-Suez gasoil margins, Energy Aspects said in a note. The capacity includes units that are ramping up and will come online later this year.

We remind, Russia is leaning towards leaving oil production volumes unchanged ahead of an OPEC+ policy meeting on June 4 because Moscow is content with current prices and output, three sources with knowledge of current Russian thinking told Reuters. OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, surprised the market on April 2 with further output cuts that pushed up the price of oil.


mrchub.com