GAIL net jumps 56% in Q2 on gas higher volumes

GAIL net jumps 56% in Q2 on gas higher volumes

MRC -- State-owned gas utility GAIL posted a 56% jump in the net profit during the September quarter buoyed by expanding gas transmission volumes and margins on the back of rising consumption, as per MSN.

Standalone net profit stood at Rs 2,404.8 crore during the July-September period against Rs 1,537.07 crore in the year-ago period. Pre-tax earnings from gas transportation business soared 82% to Rs 1,290.6 crore, while pre-tax earnings from the gas marketing jumped nearly 400% to Rs 1,784.58 crore.

These earnings helped offset losses in the petrochemical business, which narrowed to Rs 160.6 crore from Rs 346.2 crore in July-September 2022. Revenue from operations dropped to Rs 31,882.6 crore in July-September from Rs 38,490.89 crore on lower gas prices.

We remind, GAIL India is looking to allot Rup 30,000 crore of investment in the succeeding three years for pipelines, city gas distribution projects, existing petrochemical projects, equity contribution in group firms, and operational capex. It also anticipates polymer sales to rise twofold and natural gas transmission volume to increase by 12% in FY 2024. (1 crore=10 M, 1 lakh=100,000).


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Marathon Petroleum's quarterly profit tops estimates on strong fuel demand

Marathon Petroleum's quarterly profit tops estimates on strong fuel demand

MRC -- Marathon Petroleum’s third-quarter net income fell 26.7% year on year to $3.28bn as revenues fell at a faster pace than costs and expenses, said Reuters.

The refining and marketing margin fell to $26.16/barrel, from $30.21/barrel in Q3 2022.

Refining capacity utilisation was 94%, compared with 98% in Q3 2022. The refining throughput was 3.0m bbl/day, unchanged from Q3 2022.

The company added that construction activities are progressing at the Martinez Renewables fuels facility in California.

Pretreatment capabilities are increasing through the second half of 2023, and the facility is expected to produce 730m gal/year by the end of 2023, Marathon said.

We remind, the board of directors of Marathon Petroleum Corp has declared a dividend of $0.825/share on common stock, an increase of approximately 10% over its previous dividend of $0.75/share. The dividend is payable 11 Dec 2023, to shareholders of record as of the close of business 16 Nov 2023.

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BASF Q3 earnings drop on lower chemicals prices and volumes

BASF Q3 earnings drop on lower chemicals prices and volumes

MRC -- German chemicals maker BASF said third-quarter operating income dropped 57%, weighed down mainly by lower prices and sales volumes of basic petrochemicals, said Reuters.

Quarterly earnings before interest and taxes, adjusted for one-offs, dropped to 575 million euros ($609 million), slightly below an analyst consensus of 601 million euros posted on the company’s website.

BASF reiterated its outlook for 2023 operating income of between 4 billion and 4.4 billion, down from 6.9 billion in 2022.

We remind, -BASF has substantially reduced spending plans as part of wider belt-tightening initiatives in light of ongoing difficult macroeconomic conditions, with €4bn expected to be cut from the Germany-based chemicals major’s 2023-2027 budget. Speaking from the company’s Ludwigshafen, Germany, headquarters, BASF CEO Martin Brudermuller said that the company’s five-year capital expenditure budget is expected to be €24.8bn compared to original expectations of €28.8bn, with 2023 levels to be €1bn below its original plans.

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Linde to Supply Industrial Gases to IndianOil’s Panipat Refinery

Linde to Supply Industrial Gases to IndianOil’s Panipat 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 plc announced its Board of Directors has declared a quarterly dividend of $1.275 per share. The dividend is payable on December 18, 2023 to shareholders of record on December 4, 2023. The Board of Directors also approved a new share repurchase program for up to $15 billion of Linde's ordinary shares. The company has $2 billion of repurchase authority available under its previously announced buyback authorization from February 2022, giving it $17 billion available for stock repurchases under these programs.

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Nouryon begins full-scale production at Expancel expandable microspheres plant in the US

Nouryon begins full-scale production at Expancel expandable microspheres plant in the US

MRC -- Nouryon, a global specialty chemicals leader, announced today that it has started full-scale production at its new Expancel expandable microspheres plant in Green Bay, Wisconsin, US, said the company.

The launch of the new plant is an important milestone to better serve specialty additives customers in North America in the packaging, construction, mining, and automotive industries, and complements the Company’s existing full-scale plant in Sundsvall, Sweden, and product expansion facilities in China and Brazil.

Expancel® expandable microspheres are used as a lightweight filler and blowing agent to make customers’ end products lighter, incorporate high-performing insulation properties or better reflect light to reduce energy consumption, cost, and environmental impact. These properties are valued across a number of applications including cool roof coatings and automotive coatings and body fillers.

“Nouryon continues to invest in developing solutions that support our customers’ sustainability targets while boosting the performance of their end-products,” said Larry Ryan, President at Nouryon. “Our customers around the world rely on our Expancel® expandable microspheres and we are pleased to expand our capacity to meet growing demand.”

Customers also use Expancel® expandable microspheres to enhance products in applications including curbside recyclable packaging materials, freeze- and thaw-resistant concrete, as well as sealants and coatings applications in the construction industry where prevention of cracks and water absorption are essential to prolong the life of weather-exposed building materials.

We remind, Nouryon today announced that its nine manufacturing sites in Brazil are now powered with electricity solely from renewable energy sources, helping to reduce greenhouse gas emissions and transition to a low-carbon economy. Nouryon has 60 manufacturing sites around the world with nine in Brazil, which represent 25 percent of the Company’s total electricity usage. This achievement is part of the Company’s ongoing commitment to sustainability and reducing its carbon footprint.

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