Linde builds gases complex to supply Indian Oil refinery

Linde builds gases complex to supply Indian Oil refinery

MRC -- Linde announced that its entities in India have signed long-term agreements for the supply of industrial gases to Indian Oil Corporation’s Panipat refinery in Northern India, said the company.

Linde’s entities will build, own and operate major new on-site facilities to supply hydrogen, nitrogen and compressed dry air to IndianOil. The new on-site facilities will support the multi-billion-dollar expansion of the Panipat refinery from 15 to 25 million metric tons per year.

Industrial gases play several important roles in refining, whether removing sulfur to make clean fuels, cracking crude oil into various products or purging and cleaning process equipment and control instruments.

Panipat will be the second large-scale hydrogen plant which is built, owned and operated by Linde entities for IndianOil. It will also be one of Linde’s largest on-site plants in India, with a total combined industrial gas production capacity of 142,200 cubic metres (Nm3) per hour. The plant is expected to start up in 2025.

In addition to supplying IndianOil, the new on-site complex will cater for demand for nitrogen from companies across end markets including chemicals & energy and manufacturing.

“We won this project on the basis of the best-in-class efficiency offered by our technology, plus Linde’s track record of safely and reliably supplying our customers,” said Moloy Banerjee, President ASEAN & South Asia, Linde. “We look forward to building on our existing relationship with IndianOil, while also increasing our network density in Northern India.”

We remind, Linde announced it has signed two major agreements in Brazil for the supply of renewable energy. White Martins, Linde’s subsidiary, has entered into agreements to secure more than two million megawatt hours per year of renewable energy, replacing almost half of its existing power usage in Brazil. Supply has already commenced from the Futura I Solar Complex, one of the largest photovoltaic parks in Latin America, and the Chui Wind Farm, in Rio Grande do Sul.

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AkzoNobel Q3 net income surges on margin rebound

AkzoNobel Q3 net income surges on margin rebound

MRC -- AkzoNobel's net income surged to €189m in the third quarter, supported by a rebound in gross margins in both its core decorative paints and performance coatings businesses, said the company.

Q3 revenue 4% down on unfavorable exchange rates. Decorative paints Q3 revenue down 3%, operating income up by 53%. Performance coatings Q3 revenue down 5%, operating income more than doubles to €245m from €98m in the same period of last year.

Based on current market conditions, AkzoNobel aims to deliver around €1.45bn in adjusted EBITDA this year. "AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic volume growth. The company will focus on margin management, cost reduction, working capital normalisation and de-leveraging," it said.

Cost reduction programs are expected to partly mitigate higher than expected inflationary pressure on operating expenses for this year. The company expects declining raw material costs to have a favorable impact on profitability.

We remind, AkzoNobel has completed the acquisition of the Chinese decorative paints business of US-based Sherwin-Williams for an undisclosed fee. The transaction includes the Huarun decorative paints brand, the company said in a statement. The business has an annual revenue of about €100m and employs around 300 people.

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Axalta opens new coating facility in China’s Jilin

Axalta opens new coating facility in China’s Jilin

MRC -- US-based Axalta Coating Systems has inaugurated its new coating facility in northeast China’s Jilin city, Jilin province, according to a company news release.

The project can produce 15,800 tonnes of products annually. It will mainly make high-performance mobility coatings to meet the growing demand from China’s mobility sector.

Major products are waterborne primers and basecoats, as well as solvent primers, basecoats and clearcoats.

Construction of the project began in September 2021.

We remind, Axalta Coating Systems will be taking a pause before implementing it in other regions. The ERP implementation - launched on 1 May at 11 plants and many distribution centres in North America - resulted in “operational issues” and production constraints that were a factor in the 3.7% year-on-year volume decline Axalta saw during the quarter.

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Chevron to acquire Hess in deal lined with production upside

Chevron to acquire Hess in deal lined with production upside

MRC -- Chevron Corp has agreed to acquire Hess Corp in an all-stock transaction valued at $53 bn, further diversifying the energy company's portfolio with the addition of Stabroek block interests offshore Guyana and adding Bakken acreage to the company's existing US shale position, said the company.

The deal is expected to increase Chevron’s estimated 5-year production and free cash flow growth rates and extend such growth into the next decade, the company said in a release Oct. 23.

This increased production growth and cash flow accretion—aided by $1 billion in expected run-rate synergies within a year of the deal’s closing—appears as motivation for the deal, TD Cowen analysts said in a note Monday.

We remind, Chevron Phillips Chemical, Technip Energies and LyondellBasell are collaborating on the design, construction and operation of a demonstration unit for Technip Energies’ electric steam cracking furnace technology, designed to reduce the greenhouse gas emissions associated with the olefins production process.

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Orbia Q3 net income falls 11.2% on lower prices

Orbia Q3 net income falls 11.2% on lower prices

MRC -- Orbia's net income fell by 11.2% year on year in the third quarter, weighed by lower sales across most of its businesses amid poorer global demand, the Mexican vinyl producer said.

Net sales 1,976.0 2,291.0 -13.7 6,432.0 7,548.0 -14.8; EBITDA 320.0 381.0 -16.0 1,234.0 1,601.0 -22.9
Net income 95.0 107.0 -11.2 207.0 686.0 -69.8; - Q3 EBITDA margin fell about 46 basis points year on year to 16.2%; Q3 EBITDA weighed by lower volumes and lower prices in certain segments.

Financial costs fell by 21% year on year to $79m in the third quarter, supported by the depreciation of the Mexican Peso and other currencies.

"Third quarter results reflect the impact of global demand weakness," said Sameer Bharadwaj, CEO of Orbia. "We are seeing the impact of elevated interest rates and customers have become more cautious in placing orders."

We remind, Orbia's consolidated net income fell by 89% year on year in the second quarter as revenues were hit by a slowdown in demand from a strong prior-year period. Financial costs rose by 89% year on year to $135m in the second quarter, driven primarily by foreign exchange losses due to the appreciation of the Mexican peso and other currencies, as well as an increase in debt to support growth initiatives.

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