Air Products reports 1Q FY 2024

Air Products reports 1Q FY 2024

MRC -- Air Products has released its first quarter results, reporting sales of USD4bn, down 6% for the prior year, said the company.

The fiscal year of the industrial gases major runs from October to September, so its Q1 figures are for the period to end-December 2023. Seifi Ghasemi, Chairman, President, and CEO, said “significant” geopolitical and economic headwinds had impacted performance.

“Our reported results were lower than our expectations, mainly due to a slowdown in manufacturing in Asia, particularly in China, with lower helium demand, cost headwinds from a sale of equipment project, and currency devaluation in Argentina,” he said.

Read more: Slowing helium demand knocks Air Products quarterly results. Despite the conditions, Air Products’ earnings per share for the quarter were USD2.73, up 6% from the prior year. GAAP net income was also up 6% to reach USD622m.

Adjusted EBITDA of USD1.2bn was up 8% over the prior year, due to higher equity affiliates’ income, higher volumes, and higher pricing, partially offset by higher costs.

Americas sales of USD1.3bn were down 10% versus the prior year, as 3% higher volumes driven by strong hydrogen demand and 2% higher pricing were more than offset by 15% lower energy cost pass-through.

Operating income of USD354m increased 3% and adjusted EBITDA of USD561m increased 9%, in each case primarily due to higher pricing and volumes, partially offset by higher costs.

We remind, on the occasion of Hyvolution 2024, Air Liquide and TotalEnergies announce the creation of TEAL Mobility. Equally owned by the two companies, TEAL Mobility will accelerate the development of hydrogen for heavy duty trucks by offering a network of 100 stations on major European corridors. This approach contributes to reinforce the momentum given to the entire industry, from truck manufacturers to transport operators.

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TotalEnergies and ONGC in India join forces to detect and measure methane emissions

TotalEnergies and ONGC in India join forces to detect and measure methane emissions

MRC -- TotalEnergies and Oil and Natural Gas Corporation (ONGC) have signed a cooperation agreement to carry out methane emissions detection and measurement campaigns using TotalEnergies' pioneer AUSEA (Airborne Ultralight Spectrometer for Environmental Applications) technology, said the company.

ONGC has been inviting international technology partners to help reduce its methane emissions in India by 2030, while TotalEnergies has decided to share its AUSEA technology in an effort to pivot the whole industry towards zero methane emissions by 2030. Both companies are party to the Oil and Gas Decarbonization Charter (OGDC), global industry initiative launched at COP28.

ONGC joins a growing list of national companies who have signed cooperation agreements with TotalEnergies for the use of AUSEA including Petrobras in Brazil, SOCAR in Azerbaijan, Sonangol in Angola and NNPCL in Nigeria. Mounted on a drone, the AUSEA gas analyzer, developed by TotalEnergies and its R&D partners, consists of a dual sensor capable of detecting methane and carbon dioxide emissions, while at the same time identifying their source. This technology marks a step change in methane emissions detection and measurement compared to traditional techniques.

By allowing access to hard-to-reach emission points, on all types of industrial facilities, both offshore and offshore, AUSEA is reputed as one of the most accurate technologies in the industry. After halving its methane emissions from its operated sites between 2010 and 2020, TotalEnergies set ambitious targets to step up its efforts and reduce methane emissions by a further 50% by 2025 - with the ambition to reach this target a year early, in 2024 - and by 80% in 2030, compared to 2020.

TotalEnergies is also committed to promoting the United Nations Oil and Gas Methane Partnership (OGMP 2.0) framework with other national and international oil companies. The company has now held the OGMP Gold standard status for the three years in a row.

We remind, TotalEnergies has not sent ships through the southern strait leading to the Red Sea and the Suez Canal for several weeks, extending its ships' travel time to Europe. The Bab-el-Mandeb strait at the southern end of the Red Sea has been disrupted by Houthi attacks on commercial vessels, driving up freight costs and restricting traffic.

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Russia witnesses a 6% rise in masterbatch production

Russia witnesses a 6% rise in masterbatch production

MRC -- As the year progresses, Russia anticipates a potential surge in masterbatch production, with projections suggesting a volume of around 108 thousand tons by the end of 2023, said Chemanalyst.

This estimation reflects a notable increase of 6%, continuing the positive trajectory observed in the sector.

Masterbatches play a pivotal role in enhancing plastics by serving as concentrates of pigments, dyes, and other active substances. These additives contribute to imparting specific properties or colors to plastics. In Russia, several companies are actively involved in masterbatch production. However, it's noteworthy that Russian masterbatch manufacturers currently rely on foreign sources for pigments.

The trend of establishing new masterbatch production facilities in Russia persists. A case in point is the Aleko group of companies, which initiated the production of chalk additives and white masterbatches in December 2022. This facility, located in the Rostov region, boasts an annual production capacity of 25 thousand tons.

Despite a surplus in the market, domestic polymer and polymer product manufacturers in Russia continue to heavily utilize imported masterbatches. Dmitry Zaitsev observed a substantial volume of imported masterbatch usage, albeit noting a gradual decline in imports. Over the period from 2019 to 2022, the share of imported masterbatches in the Russian market decreased from 37% to 30%. A notable shift occurred in 2022 and 2023, as European and American manufacturers withdrew from the Russian market, making way for Asian companies.

In 2021, significant masterbatch imports to Russia were sourced primarily from Spain (29%), Ecuador (20%), Austria (11%), Italy (10%), and Belgium (9%). However, by 2023, the landscape had evolved, with China emerging as a dominant contributor, accounting for 32% of imports. Singapore followed closely with 28%, while Turkey and India contributed 17% and 8%, respectively.

The dynamics in masterbatch imports reflect a changing global landscape, with the market witnessing a shift in major contributors. The adoption of masterbatches from diverse sources indicates a strategic approach by Russian manufacturers to secure the best quality and cost-effective solutions for their polymer and plastic production needs.

Russia's masterbatch sector is undergoing dynamic changes, marked by a forecasted increase in production and notable shifts in the sources of imports. The expansion of domestic production capabilities, as exemplified by the Aleko group, underscores the industry's efforts to achieve self-sufficiency and reduce dependence on foreign supplies. As the sector navigates these changes, the strategic positioning of market players and the evolution of import structures will continue to shape the trajectory of Russia's masterbatch industry.

We remind, EuroPlas (EuP), the leading global filler masterbatch manufacturer headquartered in Vietnam, has initiated the first phase of its production plant in Sadat City, Egypt, marking a significant milestone for the company. This venture represents the first entirely Vietnamese investment in Egypt and was officially inaugurated by Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI).

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Louisiana Governor announces bond allocation for Chevron’s Geismar renewable diesel plant

Louisiana Governor announces bond allocation for Chevron’s Geismar renewable diesel plant

MRC -- Governor Jeff Landry announced a $100 MM bond allocation for the expansion project at Chevron’s Geismar Renewable Diesel Plant at the Louisiana Mid-Continent Oil and Gas Association’s annual conference, said Hydrocarbonprocessing.

This expansion project is expected to bring 90 new permanent jobs and 1,500 temporary jobs. While there, he also signed a Proclamation and an Executive Order on behalf of the oil and gas industry. The Proclamation states that Louisiana is open for business and our administration will work tirelessly to ensure the Oil and Gas Industry can thrive in our State. The Executive Order directs the Louisiana Department of Natural Resources and the Louisiana Department of Environmental Quality to promote the streamlining of permitting processes associated with the Oil and Gas Industry.

“The Oil and Gas Industry built Louisiana and keeps our economy moving. Our administration will always be a strong voice for this industry and support the vital jobs it creates. This project will not only benefit Louisiana’s hardworking men and women, but it will also help reduce our carbon emissions. I am thrilled to announce this funding, and I look forward to seeing the incredible benefits this project will bring to our state,” said Governor Jeff Landry.

“Chevron is very grateful to Governor Landry for his support of our improvement and expansion project at our renewable diesel production facility in Geismar,” said Daniel Dascher, Geismar Plant Manager. “This project helps us to advance our goal of providing affordable, reliable, ever-cleaner energy through the production of lower carbon intensity fuel.”

The improvement and expansion project was announced with Governor John Bel in 2020 and Chevron received approval for the bond issuance from the State Bond Commission in 2023; however the former Governor never gave them any bond allocation. Under Governor Jeff Landry, Chevron will now receive the $100 million bond allocation, mostly made up of carryover bonds.

The Geismar Facility was the first stand-alone renewable diesel production facility in the U.S. when it was completed in 2010. Once completed, the improvement and expansion project will increase site capacity by 250 million gallons, from 90 million gallons to 340 million gallons per year. Renewable diesel is sourced from multiple renewable feedstocks—including soybean oil, canola oil, used cooking oils and animal fats. It works just like petroleum diesel, making it a drop-in fuel compatible with vehicles on the road today.

We remind, shares of Finland's Neste plummeted after the biofuels producer and oil refiner posted fourth-quarter operating profit below expectations and forecast a lower 2024 renewable products sales margin than last year's. With its Singapore plant extension finally up and running, Neste expects 2024 renewables sales volume to grow to around 4.4 million metric tons with a comparable sales margin of $600-800 per ton, well below 2023's average of $863.

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Ravago and Repsol unveil polypropylene compounds factory in Tangier

Ravago and Repsol unveil polypropylene compounds factory in Tangier

MRC -- The partnership between Belgium's Ravago and Spain’s Repsol celebrated the grand opening of a cutting-edge factory in Tangier, exclusively dedicated to the production of polypropylene compounds, a pivotal material extensively utilized in the automotive sector, said Chemanalyst.

In a momentous ceremony attended by the Minister of Industry and Trade, Ryad Mezzour, the Spanish energy behemoth, Repsol, and the Belgian plastics giant, Ravago, unveiled their latest compounding facility nestled within the Tangier Automotive City free zone. This collaborative venture aims to ramp up production capabilities to meet the surging demand from automotive professionals across the region.

With a substantial investment amounting to 20 million euros, the newly established plant is poised to manufacture a diverse range of materials, including polypropylene (PP) compounds, renowned for their ubiquitous presence in automotive applications. Furthermore, the facility will churn out polyamide, polybutylene terephthalate (PBT), and alloy compounds, as outlined in a joint statement issued by Ravago and Repsol. Strategically situated in the Tangier-Tetouan-Al Hoceima region, the factory is strategically positioned to cater to the needs of local clients, particularly esteemed automakers like Renault and Stellantis, who have steadfastly supported the project since its inception.

As per a statement released by the collaborating entities in conjunction with the Ministry of Industry and Trade, the plant boasts an impressive annual production capacity of 18,500 tonnes, with provisions for future scalability. The inauguration of this factory assumes paramount importance in nurturing the growth of the national automotive sector. Armed with state-of-the-art technology, this industrial facility is set to bolster our competitive edge by facilitating localized production of automotive components, thereby advancing value chain integration and augmenting sectoral offerings. The collaboration with Ravago in the region plays a pivotal role in bolstering our foothold within the automotive value chain in Morocco.

Repsol remains steadfast in its commitment to further investments in automotive materials, with plans to expand production capacities to effectively support the manufacturing requirements of models assembled in Tangier, Kenitra, and Casablanca factories. This partnership underscores our unwavering dedication to strengthening our regional presence and delivering top-notch materials to our esteemed clientele. For Ravago, this milestone signifies a significant stride in our growth trajectory within the realm of plastic composites.

Repsol, a Spanish conglomerate, is predominantly involved in a spectrum of activities encompassing exploration, production, transportation, and refining of oil and natural gas. Additionally, the company is engaged in the manufacturing, distribution, and marketing of petrochemical and natural gas products.

We remnd, Venezuelan state oil company PDVSA and joint venture partner Repsol on Monday signed an agreement amending the original terms of a project in the country, aiming to revive its crude and gas output. The agreement for production joint venture Petroquiriquire, which includes the fields Quiriquire, Mene Grande and Barua-Motatan, was signed in Caracas by Venezuela's oil minister Pedro Tellechea and executives from Repsol.

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