Sadara posts Q2 net loss on lower sales

Sadara posts Q2 net loss on lower sales

MOSCOW (MRC) -- Sadara Chemical Co has incurred a second-quarter 2023 net loss of Saudi riyal (SR) 1.39bn (USD371m), reversing a profit in the previous corresponding period, as sales slumped by 49%, said Argaam.

In a filing to the Saudi bourse Tadawul, Sadara cited lower average selling prices and sales volumes for the deterioration in its profitability on a year-on-year basis.

Sadara Chemical Co is a joint venture between state-owned energy giant Saudi Aramco and US major Dow Chemical.

In the first quarter of 2023, the company also incurred a net loss due to planned long-term turnarounds at its mixed-feed cracker and downstream polyethylene (PE) trains in Al Jubail.

We remind, Sadara Chemical Co., the parent company of Sadara Basic Services Co., reported a 97% slump in Q1 2022 net profit after Zakat and tax to SAR 45.9 million, compared to SAR 1.617 billion in the year-ago period. The company attributed the profit drop primarily to the recognition of SAR 1.05 billion gains from debt restructuring in Q1 2021. Sadara also cited a decline in higher production costs due to higher feedstock prices despite a rise in average sales price compared to the first quarter last year.

IEA lowers forecast for oil demand growth in 2024

IEA lowers forecast for oil demand growth in 2024

MOSCOW (MRC) -- The International Energy Agency (IEA) on Friday said demand growth for oil next year will be slower than previously forecast, citing lackluster macroeconomic conditions, post-pandemic recovery running out of steam and burgeoning use of electric vehicles, said Reuters.

In 2024, growth is forecast to slow to 1 million barrels per day (bpd), the Paris-based energy watchdog said in its August monthly report, down by 150,000 bpd from its previous forecast.

We remind, Most Russian fuel exports from the Baltic and Black Sea regions are now pricing above a price cap set in February by a G7-led coalition designed to limit Moscow's revenues in the aftermath of its invasion of Ukraine. The rise in Russian fuel prices comes as global prices for fuels from other origins soar amid strong demand and low inventory levels.

Brazil's Petrobras does not intend to sell Braskem stake

Brazil's Petrobras does not intend to sell Braskem stake

MOSCOW (MRC) -- Brazilian state-run oil company Petrobras is not planning to sell its 36% stake in petrochemical firm Braskem, newspaper Valor Economico reported on Thursday, citing unnamed sources, said Reuters.

Petrobras is one of Braskem's main shareholders alongside conglomerate Novonor, which holds a controlling stake in the firm but has sought to sell it to repay creditors after entering bankruptcy protection. According to Valor Economico, Petrobras CFO Sergio Leite said during a meeting with analysts that the company has no plans to sell off its stake in Braskem.

In a statement, the company said it was studying alternatives in the petrochemicals sector as part of its strategic planning. It did directly comment on the report. Petrobras holds contractual rights to buy out Novonor's stake in the firm or exercise tag-along rights in case of a potential sale.

Three offers so far have been presented to take control of Braskem: a joint bid from Abu Dhabi's ADNOC and U.S. asset manager Apollo, and separate proposals from Brazilian firms Unipar Carbocloro and J&F.

Following Valor Economico's story, shares of Braskem rose 7.8% in afternoon trading, making it one of the top gainers on Brazil's benchmark stock index Bovespa.

We remind, Chevron Lummus Global LLC (CLG) announced a recent contract award from Petroleo Brasileiro S.A. (Petrobras) for a new 12,580 BPD hydroisodewaxing (HIDW) unit at the GasLub Hub, a lubricant plant in Itaborai, Rio de Janeiro state, Brazil. Chevron Lummus Global's scope includes the technology license, basic design engineering, and research unit testing services.

Saudi Arabia's сhemical products exports down 27% to SAR 7.18 bln in May

Saudi Arabia's сhemical products exports down 27% to SAR 7.18 bln in May

MOSCOW (MRC) -- Saudi Arabia's exports of chemical industry products and related products reached nearly SAR 7.18 billion in May, marking a year-on-year (YoY) decrease of 27%, said Argaam.

Compared to the previous month, exports of chemical products rose 8% to SAR 505.4 million. Exports of chemical products represented 29% of total non-oil exports in May, amounting to SAR 25.14 billion.

India topped the list of countries importing chemical products from Saudi Arabia by nearly SAR 1.17 billion and 16.4% of the total value of exports of chemical products in May 2023. China and US followed at 15.4% and 7.6%.

On the other hand, the Kingdom's imports of chemical and industry-related products amounted to SAR 7.3 billion during May, up by 32% YoY.

Compared to April, the Kingdom's imports of chemical and industry-related products increased by 24%, or SAR 1.41 billion.

Last May, the Kingdom's imports of chemical and industry-related products represented 11% of the total imports amounting to SAR 67.67 billion.

We remind, Saudi state oil giant Aramco (2222.SE) announced an additional near USD10 billion dividend, most of which will go to the government, the first of several extra payouts on top of its expected USD153 billion base dividend for 2022 and 2023. Aramco will begin paying performance-linked dividends with a USD9.87 billion payout in the third quarter, based on its full-year 2022 and first-half 2023 results.

Indorama Q2 earnings rise from Q1

Indorama Q2 earnings rise from Q1

MOSCOW (MRC) -- Indorama Ventures’ second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7% quarter on quarter to USD321m, with sales volumes up 4%, said the company.

“Sales volumes remained resilient” amid continued destocking in the global chemicals industry from its peak in Q4 2022, the company said. Revenue of USD4bn was off 1% from Q1.

EBITDA in the company’s largest business segment, Combined PET (polyethylene terephthalate), was USD194m, rising 37% from Q1 as destocking eased in most markets and supported stable volumes, the company said.

However, compared with Q2 2022, Indorama’s overall revenue fell 27% year on year and EBITDA fell 68%.

Indorama is taking steps to conserve cash and safeguard its competitive advantages as the global industry is impacted by increased capacity and lower margins, “with China boosting exports to offset muted domestic demand,” the company said.

We remind, Indorama Ventures Public Company Limited, one of the world’s largest producers of recycled Polyethylene Terephthalate (PET) resin, announced the completion of the expansion of its recycling facility in Brazil.