Carmakers follow routes to recycled plastics

There has been a surge in interest in recycled plastics from carmakers, particularly European ones, said Amiplastics.

Major car companies and Tier 1 suppliers have been working with partners in the plastics recycling sector in their sustainability programmes.

Audi, BMW and other European groups are pursuing projects to widen the use of recycled plastics, spurred by the European Commission’s plans for a 25% recycled plastics content target in the revision of the EU’s End-of-Life Vehicles Directive.

As per MRC, the Plastics Industry Association (PLASTICS) has released an official analysis on the impact of the International Monetary Fund’s 2023 economic growth revision on the global plastics trade, authored by PLASTICS Chief Economist, Dr. Perc Pineda.

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The Board of Directors of Westlake Corporation declared a regular dividend distribution of 50.00 cents per share for the second quarter of 2023, an increase of approximately 40% from the 35.70 cents per share of the first quarter of 2023, said the company.

This dividend will be payable on September 12, 2023, to stockholders of record on August 25, 2023. “The significant increase in our dividend reflects the strong cash generative business model as we have continued our growth at Westlake,” said Albert Chao, president and chief executive officer of Westlake. “Our Investments in differentiated and specialty products in our Performance and Essential Material (PEM) segment and leading market positions in downstream building products in our Housing and Infrastructure Products (HIP) segment has enhanced the stability of our earnings profile, while our globally advantaged low-cost position provides strong cash generation throughout the business cycle. Alongside our conservatively positioned, strong investment grade balance sheet this supports a meaningfully higher dividend level while continuing to provide us significant capacity to invest in our business to drive long-term shareholder return."

This is the 76th successive quarterly dividend that Westlake has declared since completing its initial public offering in August 2004.

We remind, Westlake's Performance and Essential Materials (PEM) income from operations for 2Q 2023 of USD215 mln decreased by USD750 mln from 2Q 2022 income from operations of USD965 mln. PEM's segment operating margin declined from 31% in 2Q 2022 to 10% in 2Q 2023 and EBITDA margin decreased from 37% in 2Q 2022 to 20% in 2Q 2023. Sequentially, Performance and Essential Materials income from operations decreased by USD188 mln as compared to 1Q 2023.

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The Plastics Industry Association (PLASTICS) has released an official analysis on the impact of the International Monetary Fund’s 2023 economic growth revision on the global plastics trade, authored by PLASTICS Chief Economist, Dr. Perc Pineda, as per Plasticsindustry.

Dr. Pineda writes, “According to the IMF's growth revisions, the global economy is anticipated to remain relatively stable from 2023 to 2024 but indicating a sideways movement. This projection has implications for the global plastics trade as well. While the industry can still expect growth opportunities in 2023, the subdued economic outlook for 2024 might pose some trade-related concerns.”

We remind, 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.

The Plastics Industry Association (PLASTICS) is the only organization that supports the entire plastics supply chain, including Equipment Suppliers, Material Suppliers, Processors and Recyclers, representing over one million workers in our USD468 billion U.S. industry.

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Aramco has established new Business Line Executive Vice President (“EVP”) positions in its Upstream and Downstream operating segments, said the company.

The creation of these positions follows the establishment in July of the Upstream President and Downstream President positions to help drive the Company’s long-term strategy across its value chain and global portfolio.

Therefore, as approved by the Board of Directors, the following four new Business Line EVP appointments will be effective from September 1, 2023:

Upstream: Abdul Hameed A. Al Dughaither has been appointed as Business Line Executive Vice President of Exploration, Petroleum Engineering & Drilling, and Abdulkarim A. Al Ghamdi has been appointed as Business Line Executive Vice President of Gas. Both positions report to the Upstream President.

Downstream: Ibrahim Q. Al Buainain has been appointed as Business Line Executive Vice President of Global Manufacturing, and Yasser M. Mufti has been appointed as Business Line Executive Vice President of Products & Customers. Both positions report to the Downstream President.

We remind, Aramco 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, it said.

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Prices for diesel and other distillate fuel oils have surged as expectations for a soft landing and an improving economic outlook in the United States threaten to deplete already low inventories even further, said Reuters.

Futures prices for ultra-low sulfur diesel delivered in New York Harbor in September climbed to USD135 per barrel on Aug. 9, up from USD95 on May 31. Prices for diesel and other distillate fuel oils have been rising much faster than for crude petroleum, widening margins for refiners.

The crack spread for making diesel from U.S. crude, with both delivered in September 2023, has doubled to USD50 per barrel from USD25 at the end of April.

The crack for making diesel from U.S. crude, with both delivered in December 2023, has climbed to USD43 per barrel from USD27 at the end of April. Diesel prices are rising as traders anticipate that shortages will quickly re-emerge if the economy avoids falling into a recession later in 2023.

Distillate inventories have not recovered significantly despite the slowdown in manufacturing and freight activity evident since the middle of 2022. U.S. inventories amounted to 115 million barrels on August 4, up from 111 million a year ago, but otherwise the lowest for the time of year since 2000.

Inventories were 24 million barrels (-17% or -1.31 standard deviations) below the prior ten-year seasonal average on Aug. 4, based on data from the U.S. Energy Information Administration (EIA).

The deficit has widened rather than narrowed over the last five months from 12 million barrels (-9% or -0.73 standard deviations) on March 3 (“Weekly petroleum status report”, EIA, Aug. 9). The distillate shortage is a worldwide phenomenon, with inventories also 33 million barrels (-8% or -1.11 standard deviations) below the 10-year average in Europe at the end of July.

Singapore stocks were 3 million barrels (-30% or -1.79) below the 10-year average in the course of July, so there is limited scope for resolving the deficits by moving inventories from one region to another.

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.

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