Trinseo confirms Terneuzen styrene plant closure

Trinseo confirms Terneuzen styrene plant closure

MRC -- Trinseo, a specialty material solutions provider, today announced its decision to discontinue operations at its ethylbenzene styrene monomer (EBSM) manufacturing facility in Terneuzen, the Netherlands, said the company.

This decision was made following the completion of joint negotiations with the Works Council in Terneuzen. The plant is scheduled to officially cease operations in November 2023. With the closure of the EBSM facility, the company will purchase of all of its styrene needs from third party suppliers to support its downstream businesses.

The Company also recently announced the closure of its PMMA sheet operations in Bronderslev, Denmark, Belen, New Mexico, and Rho, Italy, as well as cost saving measures including headcount and other reductions. Materials produced at the closed PMMA sheet plants will now be produced by other facilities within the global network, primarily Saint-Avold, France, and Florence, Kentucky, USA.

In aggregate, these initiatives are expected to result in annual cost savings of approximately $75 million. The anticipated future cash payments associated with these actions are approximately $50 million, with $35 million of this expected to be incurred in 2024.

“Decisions like this that impact the livelihoods of our colleagues are never easy, and this decision in no way reflects on the capabilities of our dedicated teammates in Terneuzen, or at other operations that were part of this optimization effort,” said CEO Frank Bozich. “Given reduced European demand and global styrene capacity additions, we believe that we will be able to support our downstream business effectively through market purchases with lower carbon, capital and energy intensity for the foreseeable future,” added Bozich.

These latest restructuring actions, in combination with lower natural gas hedge losses, are expected to result in a sequential profitability improvement of $100 million in 2024.

We remind, Trinseo, a specialty material solutions provider, today announced that it will host a conference call to discuss its third quarter 2023 financial results on Monday, November 6 at 10 a.m. Eastern Time. Commenting on results will be Frank Bozich, President and Chief Executive Officer, David Stasse, Executive Vice President and Chief Financial Officer, and Andy Myers, Director of Investor Relations. The conference call will include introductory comments followed by a question and answer (Q&A) session.

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INEOS announced trading performance for Q3 2023

INEOS announced trading performance for Q3 2023

MRC -- INEOS Group Holdings S.A. announces its trading performance for the third quarter of 2023, said the company.

Based on unaudited management information INEOS reports that EBITDA for the third quarter of 2023 was €403 million, compared to €511 million for Q3, 2022 and €387 million for Q2, 2023.

High energy costs, particularly in Europe, together with continued high inflation rates have led to reduced demand levels and weak margins. North American markets were relatively robust, taking full benefit from their current cost advantage. Market conditions in Europe and Asia have remained weak in the quarter. Nevertheless, the business saw a slowly improving trend in performance throughout the quarter.

O&P North America reported EBITDA of €177 million compared to €207 million in Q3, 2022. Ethylene markets were generally weaker in the quarter with lower demand, improved industry supply availability and reduced export opportunities. Polymer markets were softer with erosion of margins for most products in the quarter, although pipe markets remained solid. The results in the quarter were adversely impacted by an incident on a pipeline at the Chocolate Bayou, Texas facility, which resulted in reduced operating rates during the quarter.

O&P Europe reported EBITDA of €103 million compared to €149 million in Q3, 2022. Markets for olefins in the quarter were generally weaker with most industry crackers being trimmed across Europe. Propylene markets were soft with weak demand across most derivatives due to high energy costs. European polymer markets were long with reduced demand and increased levels of imports, although there was some improvement towards the end of the quarter.

Chemical Intermediates reported EBITDA of €123 million compared to €155 million in Q3, 2022. Overall demand in the Oligomers business was solid across the product portfolio, although there was some weakness in Asian markets. Demand was weaker across most market sectors for the Oxide business, particularly the European glycol markets. The results were adversely impacted in the quarter by an incident on a supplier pipeline to the Plaquemine, Louisiana site. Demand for the Nitriles business was mixed, with firm demand in the USA, but softer demand in Europe due to high energy costs, and Asia due to improved industry supply. Markets for the Phenol business were balanced in the USA, but weaker in Europe and Asia.

The Group has continued to focus on cash management and liquidity. Net debt was approximately €8.1 billion at the end of September 2023 (including the SECCO Term Loan and Project One Facility). Cash balances at the end of the quarter were €2,220 million, and availability under undrawn working capital facilities was €541 million. Net debt leverage (excluding the SECCO Term Loan and Project One facility) was approximately 4.1 times as at the end of September 2023.

We remind, INEOS has today announced it has reached an agreement with Eastman Chemical Company to purchase the Eastman Texas City site, including the 600kt Acetic Acid plant and all associated third party activities on the site, for circa $500 million. Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.

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Exxon posts sharply lower USD9.1 billion profit on lower oil, gas prices

Exxon posts sharply lower USD9.1 billion profit on lower oil, gas prices

MRC -- Exxon Mobil Corp posted a sharply lower USD9.1 billion third-quarter profit, missing analysts’ estimates for the second quarter in a row, and off 54% from a year ago, said Reuters.

Earnings by the largest U.S. oil producer have benefited from higher crude oil prices compared to the previous quarter and greater demand for gasoline and diesel, but prices are well off record year-ago levels.

Shares fell about 2% in morning trade to USD105.55 as per-share profit of USD2.25 was 5% below analysts’ forecasts for USD2.37 per share. A year ago, the company earned USD4.68 per share when oil and gas prices climbed following Russia’s invasion of Ukraine.

Results came “broadly in line” with market expectations, according to RBC analyst Biraj Borkhataria, but profit from motor fuels and chemicals were below recent expectations and sharply less than a year ago.

Exxon’s oil and gas pumping business was hurt by a 60% drop in natural gas prices compared with a year ago, and a 14% drop in crude oil prices, the company said.

We remind, ExxonMobil Catalysts and Licensing LLC and Axens have signed an exclusive licensing alliance agreement allowing Axens to include ExxonMobil’s MTBE Decomposition Technology for high purity isobutylene in its portfolio. Used in the production of high-reactivity polyisobutylene and butyl rubber, this technology enables Axens’ customers to better address the growing demand for petrochemical intermediates over the next decade.

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Valero to run its 14 refineries at up to 96.5% capacity in Q4

Valero to run its 14 refineries at up to 96.5% capacity in Q4

MRC -- Valero Energy plans to operate its 14 oil refineries in North America and Britain at up to 96.5% of their combined total throughput capacity of 3.2 million bpd in the fourth quarter, said Hydrocarbonprocessing.

Valero's refineries in the U.S., Canada and Wales ran at 95% of their combined capacity in the third quarter of the year, Bhullar said in conference call to discuss results with Wall Street analysts.

For the fourth quarter, the low end of the range was 93% of total combined throughput. The San Antonio, Texas-based company issues its throughput plans in a range for sectors for its refineries, including in its throughput totals not just crude oil but other feedstocks used in making refined products.

Bhullar said Valero's U.S. Gulf Coast refineries will operate between 1.77 million bpd and 1.82 million bpd, or 95% to 98% of their total combined throughput. Its U.S. mid-continent refineries will run between 445,000 bpd and 465,000 bpd, or 92% to 96% of their combined capacity.

Valero's two California refineries are planned to run between 245,000 bpd and 265,000 bpd in the fourth quarter, or 80% to 87% of their combined capacity. The refineries in Canada and Wales supplying the North Atlantic market plan to operate at 470,000 bpd and 490,000 bpd of combined throughput or 93% to 97%.

We remind, Valero Energy Corporation declares regular cash dividend on Common Stock. The Board of Directors of Valero Energy Corporation has declared a regular quarterly cash dividend on common stock of USD1.02 per share. The dividend is payable on June 22, 2023 to holders of record at the close of business on May 23, 2023.

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TechnipFMC awarded flexible pipe contract for Woodside Energy's Trion project

TechnipFMC awarded flexible pipe contract for Woodside Energy's Trion project

MRC -- TechnipFMC has been given a deal to produce flexible pipe by Woodside Energy. The firm will provide infield flowlines and jumpers for the Trion project in deepwater Mexico, said the company.

The Company will supply infield flowlines and jumpers for the Trion project in deepwater Mexico.

Jonathan Landes, President, Subsea at TechnipFMC, commented: “We worked with Woodside to formulate the best technical solution for this milestone project. This contract is our largest flexible pipe award in the Gulf of Mexico to date, and builds upon the trust we have established with Woodside over many years of successful execution and delivery.”

We remind, TechnipFMC has been awarded a significant(1) contract to supply flexible pipes to Petrobras for the pre-salt fields offshore Brazil. The Company will design, engineer, and manufacture 14 kilometers of gas injection riser pipes. TechnipFMC will also supply associated services including packing and storage.

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