Large fire at Gohar petro-refinery in Doroud, Iran

MOSCOW (MRC) -- A large fire broke out in an industrial zone in Iran's southwestern city of Doroud, state media reported on Wednesday, as per Reuters.

"A fire occurred in the tanks of the Gohar petro-refinery Industrial Zone in Doroud, injuring two people who were hospitalized," an official from Lorestan provincial authority said.

Sixteen fire trucks were dispatched to tackle the blaze, whose cause was unknown.

We remind, a fire broke out at Dow's Plaquemine chemical facility in Louisiana. Everyone at the facility was accounted for and the fire was being managed by the company's Emergency Operations Center, Dow Louisiana said in a statement posted on Facebook, adding that they were in contact with officials.

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MOSCOW (MRC) -- Phillips 66 reported a substantial 46% drop in its second-quarter profits, reflecting the challenges faced by U.S. refiners due to declining margins, said the company.

This decline comes after last year’s record-high margins, which were boosted by a surge in fuel demand and supply constraints caused by the pandemic-driven refinery closures and the global oil market disruptions resulting from Russia’s invasion of Ukraine. The company’s premarket trade showed its shares falling 1.2% to USD110.80.

During the second quarter, Phillips 66‘s realized margins plummeted to USD15.32 per barrel, a significant decrease from the USD28.62 per barrel reported in the same period last year. Despite the decline in margins, fuel demand has proven to be resilient. The April-June quarter typically witnesses robust demand, as companies ramp up gasoline and jet fuel production to cater to the summer vacation season.

In the second quarter, Phillips 66’s crude utilization rate was recorded at 93%, slightly higher than the 90% rate from the previous year. Additionally, the total processed input remained unchanged year-over-year at 1.9 million barrels per day (bpd).

On an adjusted basis, the Houston-based refiner reported earnings of USD3.87 per share for the three months ended June 30, surpassing the average analysts’ estimate of USD3.56, as per Refinitiv data.

Similar to Phillips 66, rivals Valero Energy Corp and Marathon Petroleum also reported considerable declines in quarterly profits due to pressure on margins. However, both companies managed to outperform market expectations. Overall, Phillips 66’s (NYSE:PSX) net income for the second quarter stood at USD1.7 billion, or USD3.72 per share, down from USD3.2 billion, or USD6.53 per share, during the same period last year.

We remind, Phillips 66 beat Wall Street's estimate for first-quarter profit due to elevated margins on sustained fuel demand amid tight crude supplies. The company's shares rose 1.3% to USD95.98 in morning trade. Profits from turning crude oil into gasoline, diesel and jet fuel surged as supplies remained tight due to pandemic-era closure of facilities and a recovery in demand.

Phillips 66 manufactures, transports and markets products that drive the global economy. The diversified energy company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future.

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MOSCOW (MRC) -- BASF has published its new Life Cycle Assessment (LCA) study on the environmental impact of a mozzarella packaging using various alternative raw materials in the production of food-grade plastics, said the company.

These raw materials are attributed to the plastics via a certified mass balance approach and the study compares a flexible multi-layer packaging with the same packaging based on fossil feedstock. Additionally, a fossil-based rigid mozzarella packaging was examined. The study has been reviewed by a panel of three independent experts.

“This exercise helps us to better understand the environmental impacts of both the packaging format as well as the raw material source within a mozzarella packaging’s entire life cycle”, said Dr. Paul Neumann, New Business Development & Sustainability Polyamides Europe, BASF.

The packaging format plays an important role with regard to its environmental performance: the rigid tray packaging system which consists of a mono polypropylene tray, combined with a multi-layer lid film, showcases the highest potential environmental impact in nearly all categories compared to flexible multi-layer packaging. This illustrates the possible beneficial effects of flexible packaging by using significantly less raw material and thus producing less packaging waste.

We remind, BASF and Huntsman together with their Chinese partner companies – Shanghai Hua Yi (Group Company), Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. and Shanghai Chlor-Alkali Chemical Co., Ltd. – announce the planned separation of their joint MDI (diphenylmethane diisocyanate) production at Shanghai Lianheng Isocyanate Co., Ltd.

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MOSCOW (MRC) -- INEOS has completed the formation of a 50/50 joint venture with Sinopec for the Tianjin Nangang Ethylene Project, announced in December 2022, which is currently under construction by SINOPEC and expected to be on-stream by April 2024, said Hydrocarbonprocessing.

The petrochemical complex includes a 1.2 mtpa cracker, a new 500ktpa High-Density Polyethylene plant to produce INEOS pipe grade under license and 11 other derivative units.

The completion of the agreement today marks the continued progression of the significant petrochemical deals announced by the parties in July and December last year, and highlights the close relationship and growing collaboration between SINOPEC and INEOS.

We remind, TotalEnergies and INEOS have signed agreements to realign their respective stakes in their production assets and logistics infrastructure to better reflect the balance between their production and internal use of ethylene in eastern France. For TotalEnergies, this exchange of interests supports the integration between its petrochemical sites at Feyzin, near Lyon, and Carling in eastern France, while INEOS strengthens its operations at the Lavera site on the Mediterranean coast. Realigning the two companies’ interests to improve integration.

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MOSCOW (MRC) -- Covestro achieved its EBITDA-guidance for the second quarter of 2023 of EUR 330 million to EUR 430 million, said the company.

Group sales decreased year-on-year by 20.9 percent to EUR 3.7 billion (previous year: EUR 4.7 billion). This is mainly due to a demand-related decline in the selling price level and a drop in volumes sold. Combined with lower margins, that resulted in a 29.6 percent fall in EBITDA to EUR 385 million (previous year: EUR 547 million).

Net income was EUR 46 million, a year-on-year fall of 76.9 percent (previous year: EUR 199 million). The free operating cash flow (FOCF) increased from EUR –462 million in the prior-year quarter to EUR –10 million.

“The second quarter of the year was characterized by continued economic weakness and weak demand worldwide. Nevertheless, we achieved our targets for the quarter and are confirming our full-year guidance,” says Dr. Markus Steilemann, CEO of Covestro. “Our focus in this difficult environment is on operating in an efficient and cost-conscious manner. We will continue to serve our customers’ needs in the best possible way, while creating the right foundation for sustainable growth and our vision of becoming fully circular.”

We remind, Covestro has commenced a new manufacturing line for thermoplastic polyurethanes (TPUs) that will be utilized for paint protection films (PPFs). The line is installed at the firm's current Taiwanese facility in Changhua. Products manufactured here will be available in the global market. The world's PPF market is expected to rise steadily until 2030, with Asia-Pacific representing the biggest share of the overall market.

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