Link/Page Citation
Reuters - UK vows to manage fallout from soaring gas prices - 19/9/2021
Britain said on Saturday it would work with the energy industry to try to stem the fallout from soaring gas prices after fears grew that more energy providers and food producers would struggle to operate with such high costs.
For the complete story, see:
https://www.reuters.com/world/uk/british-food-industry-demands-government-action-over-co2-shortage-2021-09-18/
Financial Times - UK energy groups in emergency talks with government over natural gas crisis - 18/9/2021
"Britain has a diverse range of gas supply sources, with sufficient capacity to more than meet demand," Kwarteng said. "We do not expect supply...
For the complete story, see:
https://www.ft.com/content/19fddb9d-8123-4f0c-9e46-909cac4a55b6
The Guardian - Environmentalists warn of close ties between oil and gas sector and UK's North Sea regulator - 17/9/2021
Members of Oil and Gas Authority hold shares in fossil fuel firms, raising conflict of interest concerns
For the complete story, see:
https://www.theguardian.com/environment/2021/sep/17/environmentalists-ties-oil-gas-sector-uk-north-sea-regulator-fossil-fuel
Other Stories
The Guardian - Exxon and BP called to testify on climate after 'troubling' new documents - 16/9/2021
S&P Global - Abu Dhabi inks agreements with BP to develop clean energy projects - 16/9/2021
The Scotsman - Tories accuse SNP of 'selling out Scotland' over Cambo and North Sea oil and gas - 15/9/2021
The Guardian - Experts condemn plan to install thousands of gas boilers across UK - 14/9/2021
Energy Voice - Covid-19 response a 'great' example of industry collaboration, says BP exec - 10/9/2021
Media Releases
Valero Energy Corporation - Valero Energy Corporation Elects Fred M. Diaz to Board of Directors - 16/9/2021
BP Oil Ltd. - bp, ADNOC and Masdar to form strategic partnership to provide clean energy solutions for UK and UAE - 16/9/2021
INEOS - Carbon Capture and Storage Gains Wide Industry Support in Houston - 16/9/2021
BP Oil Ltd. - bp and NYK Line join forces to help decarbonise hard-to-abate sectors - 15/9/2021
AkzoNobel - AkzoNobel share buyback (August 23, 2021 - August 27, 2021) - 31/9/2021
Latest Research
Atmospheric Emissions from the UK Oil and Gas Industry - By Wilde, Shona.
Industry Overview
The Petrochemical Industry
Overviews of Leading Companies
AkzoNobel (AEX: AKZA)
BP Plc (LSE: BP)
Croda International Plc. (LSE: CRDA)
Dylon International
Elementis Plc (LSE: ELM)
Essar Oil (UK) Ltd.
Exxon Mobil Corporation (NYSE: XOM)
INEOS
Innovia Films (INNFILP)
Johnson Matthey plc (LSE: JMAT)
Noble Corporation plc (NYSE: NE)
Phillips66 (NYSE: PSX)
Royal Dutch Shell plc (LSE: RDSA, NYSE: RDS.A)
Synthomer Plc (LSE: SYNT)
Tata Chemicals Europe (NSE: TTCH)
Thomas Swan & Co. Ltd.
Total S.A. (LSE: TTA, NYSE: TOT)
Valero Energy Ltd (UK) (NYSE: VLO)
Associate: Donny Stanley
# Acquisdata is proud to be hosting a league on Estimize. Want the opportunity to win free subscriptions? Then join the Acquisdata Media and Telecommunications League at:
https://www.estimize.com/leagues/acquisdata-media-and-telecommunications
#
# Acquisdata: Up to date business intelligence reports covering developments in the world's fastest growing industries
www.acquisdata.com
#
# Reportal: a vast archive of corporate documents from listed companies around the world
www.reportaldata.com
#
News and Commentary
Reuters - UK vows to manage fallout from soaring gas prices - 19/9/2021
Britain said on Saturday it would work with the energy industry to try to stem the fallout from soaring gas prices after fears grew that more energy providers and food producers would struggle to operate with such high costs.
For the complete story, see:
https://www.reuters.com/world/uk/british-food-industry-demands-government-action-over-co2-shortage-2021-09-18/
Financial Times - UK energy groups in emergency talks with government over natural gas crisis - 18/9/2021
"Britain has a diverse range of gas supply sources, with sufficient capacity to more than meet demand," Kwarteng said. "We do not expect supply...
For the complete story, see:
https://www.ft.com/content/19fddb9d-8123-4f0c-9e46-909cac4a55b6
The Guardian - Environmentalists warn of close ties between oil and gas sector and UK's North Sea regulator - 17/9/2021
Members of Oil and Gas Authority hold shares in fossil fuel firms, raising conflict of interest concerns
For the complete story, see:
https://www.theguardian.com/environment/2021/sep/17/environmentalists-ties-oil-gas-sector-uk-north-sea-regulator-fossil-fuel
The Guardian - Exxon and BP called to testify on climate after 'troubling' new documents - 16/9/2021
Congressman calls documents related to the fossil fuel industry's efforts to discredit climate science 'very concerning'
For the complete story, see:
https://www.theguardian.com/business/2021/sep/16/exxon-bp-congress-climate-crisis
S&P Global - Abu Dhabi inks agreements with BP to develop clean energy projects - 16/9/2021
Abu Dhabi and long-time oil concession holder BP plan to develop billions of dollars in clean-energy projects in both the UAE and the UK, with three agreements announced Sept. 16 for investments in hydrogen, sustainable aviation and carbon capture, among other technologies.
For the complete story, see:
https://www.spglobal.com/platts/en/market-insights/latest-news/energy-transition/091621-abu-dhabi-inks-agreements-with-bp-to-develop-clean-energy-projects
The Scotsman - Tories accuse SNP of 'selling out Scotland' over Cambo and North Sea oil and gas - 15/9/2021
The Scottish Government's stance on the future of extraction at Cambo is still unclear after SNP ministers avoided voting on the future of the controversial oilfield.
For the complete story, see:
https://www.scotsman.com/news/politics/tories-accuse-snp-of-selling-out-scotland-over-cambo-and-north-sea-oil-and-gas-3384678
The Guardian - Experts condemn plan to install thousands of gas boilers across UK - 14/9/2021
Experts say effective subsidies for new gas boilers run contrary to government targets on cutting greenhouse gas emissions
For the complete story, see:
https://www.theguardian.com/environment/2021/sep/14/experts-condemn-plan-install-thousands-gas-boilers-uk
Energy Voice - Covid-19 response a 'great' example of industry collaboration, says BP exec - 10/9/2021
The way in which oil and gas companies rallied together in order to respond to Covid-19 has been held up as a "great example" of collaboration in the industry.
For the complete story, see:
https://www.energyvoice.com/oilandgas/north-sea/349049/covid-19-collaboration-north-sea/
https://www.facebook.com/acquisdata/
https://twitter.com/acquisdata
Media Releases
Valero Energy Corporation - Valero Energy Corporation Elects Fred M. Diaz to Board of Directors - 16/9/2021
SAN ANTONIO--(
BUSINESS WIRE
)--Valero Energy Corporation (NYSE: VLO, "Valero") announced today that Fred M. Diaz has been elected as an independent director to Valero's board of directors (the "Board") and has joined the Board's Nominating/Governance and Public Policy Committee, effective immediately.
Mr. Diaz most recently served as President, Chief Executive Officer and Chairman of the Board of Directors of Mitsubishi Motors North America, Inc. He has extensive experience in the global transportation industry, and previously served in various executive and senior management roles at Mitsubishi Motors Corporation in Japan, Nissan Motor Corporation, and Fiat Chrysler Automobiles, where he served as President and Chief Executive Officer of both the Ram Truck brand and Chrysler Mexico.
"We are honored to welcome Fred to our board. He brings a valuable perspective on the transportation sector through his experience as a business leader across the globe," said Joe Gorder, Valero's Chairman and Chief Executive Officer.
Mr. Diaz was born and raised in San Antonio, Texas and currently serves on the board of directors of SiteOne Landscape Supply, Inc., Smith & Wesson Brands, Inc. and Archer Aviation Inc. Mr. Diaz is a Director Member of the Latino Corporate Directors Association (LCDA) and a National Association of Corporate Directors (NACD) Board Leadership Fellow.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, "Valero"), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 500 company based in San Antonio, Texas, and it owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 13 ethanol plants with a combined production capacity of approximately 1.7 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America's largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero's brand names. Please visit
www.investorvalero.com
for more information.
https://www.businesswire.com/news/home/20210916005872/en/Valero-Energy-Corporation-Elects-Fred-M.-Diaz-to-Board-of-Directors
BP Oil Ltd. - bp, ADNOC and Masdar to form strategic partnership to provide clean energy solutions for UK and UAE - 16/9/2021
The three companies aim to develop low carbon hydrogen hubs and decarbonized air corridors between the UK and UAE
bp and Masdar intend to explore opportunities to provide sustainable energy and mobility solutions for cities in the UK, UAE and beyond
bp and ADNOC intend to continue decarbonizing existing oil and gas operations through the use of methane detection, CCUS and pioneering digital technologies
bp, ADNOC and Masdar have signed three agreements with the potential to lead to billions of dollars of investment into clean and low carbon energy, creating potentially thousands of energy jobs.
The first agreement would see the companies collaborate to initially develop 2GW of low carbon hydrogen across hubs in the UK and UAE, with the intention to expand as the project progresses. Access to clean hydrogen - a critical fuel in the decarbonization of hard-to-abate industries - can reduce emissions, enable new, low carbon products, and unlock future fuels. Today's announcement could enable a significant contribution towards the UK Government's target to develop 5GW of hydrogen production by 2030.
It could also lead to the first international investment in the low carbon hydrogen facility in Teesside (H2Teesside), which aims to produce 1GW of blue hydrogen starting in 2027. H2Teesside would capture and store up to two million tonnes of carbon dioxide (CO2) a year through the Northern Endurance Partnership (NEP). The investment is expected to support thousands of jobs and stimulate economic growth. It is also expected to diversify and bolster local supply chains in both the UK and UAE.
As part of the first agreement, bp, ADNOC and Masdar also intend to pioneer decarbonized air corridors between the UK and UAE - one of the busiest global air travel routes - further strengthening the commercial and cultural ties between the two countries in a sustainable way.
Bernard Looney, bp's chief executive officer, said: "The UK and UAE governments have bold plans for decarbonization. The UK is our home and we have worked in the UAE for nearly a century. By partnering with the visionary leaders of ADNOC and Masdar, we see massive business opportunity to generate the clean energy the world wants and needs - and at the same time revitalise local economies and create the jobs of the future."
Prime Minister Boris Johnson said: "This is a fantastic investment in the industries of the future, creating high value jobs across the UK as we build back better and greener. It is clear indication that businesses in the energy sector are taking the transition to cleaner solutions seriously, and a major boost to the UK's own ambitious net zero goals. Our Global Investment Summit later this year will attract more exciting investment like this to the UK, demonstrating that economic growth, technological advancement and fighting climate change go hand-in-hand."
H.E. Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO, ADNOC and Chairman, Masdar added: "The UK and UAE have enjoyed decades of strong economic ties and the agreements signed today between ADNOC, Masdar and bp will serve to deepen the strategic relationship between our countries. We look forward to building upon this legacy to strengthen both countries' ambitions to generate economic growth through low-carbon initiatives."
bp and Masdar have also agreed to explore opportunities to develop, build and operate sustainable energy and mobility solutions for cities - in the UK, UAE and beyond - on the road to net zero. The two companies will initially focus on the application of energy efficiency and storage, cleaner fuels and distributed renewables generation.
Finally, bp and ADNOC plan to deepen their collaboration to decarbonize oil and gas operations in Abu Dhabi, including the potential development of Carbon Capture Use and Storage (CCUS) hubs. The two companies would also harness advanced methane emission detection and reduction technologies and create Smart Decision Centres in the UAE, where digital and AI technology would then be used to accelerate operational efficiency.
The expected areas of collaboration align with the key areas of both the UK government's 10-point plan for a green industrial revolution and the UAE Government's 'Principles of the 50', which includes the development of a dynamic domestic economy through scientific and technical excellence.
https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-adnoc-and-masdar-to-form-strategic-partnership-to-provide-clean-energy-solutions-for-uk-and-uae.html
INEOS - Carbon Capture and Storage Gains Wide Industry Support in Houston - 16/9/2021
Eleven companies support large-scale deployment of carbon capture and storage to help decarbonize industrial facilities; discussions ongoing with others
Collective efforts could capture and store approximately 50 million metric tons of CO
2
per year by 2030; 100 million by 2040
Companies bring collective expertise as industry leaders with diverse capabilities
HOUSTON, Texas - Eleven companies have expressed interest in supporting the large-scale deployment of carbon capture and storage (CCS) technology in Houston. Calpine, Chevron, Dow, ExxonMobil, INEOS, Linde, LyondellBasell, Marathon Petroleum, NRG Energy, Phillips 66 and Valero have agreed to begin discussing plans that could lead to capturing and safely storing up to 50 million metric tons of CO
2
per year by 2030 and about 100 million metric tons by 2040.
The companies plan to help address industrial CO
2
emissions in one of the largest concentrated sources in the United States. Collectively, the 11 companies are considering using CCS technology at facilities that generate electricity and manufacture products that society uses every day, such as plastics, motor fuels and packaging.
If CCS technology is fully implemented at the Houston-area facilities these 11 companies operate, nearly 75 million metric tons of CO
2
could be captured and stored per year by 2040. There are ongoing discussions with other companies that have industrial operations in the area to add even more CO
2
capture capacity. They could announce their support at a later date and add further momentum toward the city of Houston's ambitions to be carbon neutral by 2050.
"Houston can achieve our net zero goals by working together, and it's exciting to see so many companies have already come together to talk about making Houston the world leader in carbon capture and storage," said Sylvester Turner, Mayor of Houston. "We're reimagining what it means to be the energy capital of the world, and applying proven technology to reduce emissions is one of the best ways to get started."
Wide-scale deployment of CCS in the Houston area will require the collective support of industry, communities and government. If appropriate policies and regulations are put in place, CCS could generate tens of thousands of new jobs, protect current jobs and reduce emissions at a lower cost to society than many other widely available technologies. The 11 companies will continue to advocate for policies that enable the long-term commercial viability of new, expanded and existing CCS investments in Texas.
CCS is the process of capturing CO
2
from industrial activity that would otherwise be released into the atmosphere and injecting it into deep underground geologic formations for safe, secure and permanent storage. With supportive regulations, CO
2
from the Houston industrial area could be safely stored in the U.S. Gulf Coast region in formations thousands of feet below the surface or seabed. The U.S. Department of Energy estimates that storage capacity along the U.S. Gulf Coast is enough to hold 500 billion metric tons of CO
2
- more than 130 years of the country's total industrial and power generation emissions, based on 2018 data.
Although renewables will continue to play an important role in a lower-carbon energy future, CCS is one of the few proven technologies that could enable some industry sectors to decarbonize, such as manufacturing and heavy industry. The International Energy Agency projects CCS could mitigate up to 15 percent of global emissions by 2040, and the U.N. Intergovernmental Panel on Climate Change (IPCC) estimates global decarbonization efforts could be twice as costly without CCS.
https://www.ineos.com/news/shared-news/carbon-capture-and-storage-gains-wide-industry-support-in-houston/
BP Oil Ltd. - bp and NYK Line join forces to help decarbonise hard-to-abate sectors - 15/9/2021
bp and NYK Line aim to collaborate on solutions to help decarbonise shipping and heavy industry.
The companies will work together on marine fuels such as biofuels, LNG, hydrogen and ammonia, and explore participation in supply chains for ammonia and hydrogen for heavy industry and power generation.
bp and NYK Line have signed a memorandum of understanding to collaborate on future fuels and transportation solutions to help industrial sectors, including shipping, decarbonise.
For shipping, the companies will collaborate and identify opportunities to help transition from current marine fuels to alternatives such as LNG, biofuels, and methanol, and to develop future fuels such as ammonia and hydrogen. Getting this journey right will be critical to enabling the shipping industry to meet its long-term decarbonisation ambitions.
For other hard-to-abate industrial sectors, the two companies will also consider potential marine transportation and other solutions for carbon dioxide, and explore participation in the supply chains for ammonia and hydrogen to be used in heavy industry and power generation, to help those sectors to decarbonise.
Shipping is core to global trading activities. For the world to decarbonise, shipping must decarbonise, and as one of the world's largest shipping and logistics companies, NYK Line is seeking to lead decarbonisation efforts in the industry through collaboration with bp.
bp is focusing on working with corporates in key industrial sectors that have significant carbon emissions to manage, to help them to decarbonise. The company's ambition is to be a net zero company by 2050 or sooner, and to help the world to get to net zero.
William Lin, EVP regions, cities and solutions, bp:
"bp and NYK Line have a combined experience of almost 250 years working in the shipping sector, strong existing relationships and a shared understanding of the need for the marine industry to decarbonise. By bringing together our technical expertise, understanding of the supply chain, and insights from our customers, I am confident that together we can do more to drive change at pace in hard-to-abate sectors".
Akira Kono, senior managing executive officer-chief executive of energy division, NYK Line:
"We are very pleased to enter into a strategic partnership with bp. We look forward to developing even more valuable solutions in the field of decarbonisation. By combining bp's technological expertise and worldwide network in integrated energy with NYK Line's expertise and technology as one of the world's largest shipping and logistics companies, we hope to become a leader in the decarbonisation of the shipping industry."
https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-and-nyk-line-join-forces-to-help-decarbonise-hard-to-abate-sectors.html
AkzoNobel - AkzoNobel share buyback (August 23, 2021 - August 27, 2021) - 31/9/2021
AkzoNobel (AKZA; AKZOY) has repurchased 210,000 of its own common shares in the period from August 23, 2021, up to and including August 27, 2021, at an average price of [euro]103.46 per share. The consideration of the repurchase was [euro]21.73 million.
This is part of a repurchase program announced on February 17, 2021. AkzoNobel intends to repurchase common shares up to a value of [euro]1 billion. The total number of shares repurchased under this program to date is 4,043,034 ordinary shares for a total consideration of [euro]420.77 million.
The share buyback is due to be completed in the first quarter of 2022. The company has engaged a third party to manage the program and perform transactions on its behalf. It is intended that the shares will be cancelled following repurchase.
This share buyback will be implemented within the limitations of the authority granted by the Annual General Meeting (AGM) on April 22, 2021. The share repurchase program will be conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the safe harbor parameters prescribed by the Commission Delegated Regulation 2016/1052 for share buybacks.
In accordance with regulations, AkzoNobel will inform the market about the progress made in the execution of this program through weekly updates and at
https://www.akzonobel.com/en/investors/share-buyback-overview
About AkzoNobel
We've been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there's a good chance you're only ever a few meters away from one of our products. Our world class portfolio of brands - including Dulux, International, Sikkens and Interpon - is trusted by customers around the globe. We're active in more than 150 countries and have set our sights on becoming the global industry leader. It's what you'd expect from the most sustainable paints company, which has been inventing the future for more than two centuries.
https://www.akzonobel.com/en/media/latest-news---media-releases-/akzonobel-share-buyback-august-23-2021-august-27-2021
# Acquisdata: Up to date business intelligence reports covering developments in the world's fastest growing industries
www.acquisdata.com
#
# Reportal: a vast archive of corporate documents from listed companies around the world
www.reportaldata.com
#
Latest Research
Atmospheric Emissions from the UK Oil and Gas Industry
Wilde, Shona
Abstract
Since 2014, oil and gas (O&G) production in the UK has experienced a resurgence, increasing by 20%. However, increased development has sparked environmental concerns surrounding the industry. At all stages of the O&G life-cycle harmful air pollutants are released, negatively impacting air quality and climate at the local, regional and global scale. However, the full range of emissions remains relatively unknown due to the vast number of potential sources and lack of observational data. The current inventories are generally limited by self-reporting and inaccurate emission factors, which subsequently hinders the assessment of human health and climate risks. This thesis addresses these issues by providing valuable measurement data relating to both onshore and offshore O&G production in the UK. First, an extensive analysis of airborne trace gas measurements over four regions of the North Sea, where few observations currently exist, is presented. Volatile organic compound (VOC) enhancement ratios were utilised to indicate the prevalence of O&G production as the key source of VOCs in these regions and to investigate the VOC composition related to the type of fossil-fuel product. Second, a mass balance analysis was applied to airborne measurements of plumes downwind of O&G platforms to quantify emissions from single facilities. A general underestimation in relation to the reported emissions of both methane and total VOCs was found. Distinct enhancements of VOCs, not reflected in the bottom-up reporting were concurrent with oil loading operations, identifying a key area for review in the current methodology. Finally, ground-based monitoring at a UK shale gas site, combined with a machine learning technique, revealed well-pad preparation as a significant, understudied source of nitrogen oxides. This demonstrated a need to consider all stages in the well life-cycle in order to gain a true understanding of the impacts from an air quality perspective.
https://etheses.whiterose.ac.uk/29275/
The Industry
Foreword
OGUK's Economic Report 2019 reinforces the importance of the UK's oil and gas industry, a sector helping to meet today's energy needs and one that will be a key contributor to tomorrow's energy mix. As our report shows, there is an increasing demand for energy in an expanding global economy. Global energy demand has increased by two-thirds since 1995 and most scenarios show this continuing to grow in the decades to come. Closer to home, the UK's energy landscape is changing at pace. The Committee on Climate Change recommended in May 2019 that the UK should aim to achieve net-zero greenhouse gas emissions by 2050, and 2045 in Scotland. The fact that these recommendations have been adopted at government level is welcomed and supported by OGUK. This industry can play a major role in delivering the UK's net-zero future, given the recognition by the Committee on Climate Change of the importance of oil and gas as part of a diverse energy mix in 2050 and beyond. It can help deliver secure and affordable energy in a safe manner and contribute to the low-carbon solutions that will be required to realise the UK's ambitious climate change goals. Oil and gas companies are already in action, using their skills, expertise and resources and developing their energy portfolios in ways that will help move the UK towards net-zero.
A positive future for the industry is outlined in Roadmap to 2035: a Blueprint for Net-Zero. This roadmap represents the evolution of industry's Vision 2035 and has been developed following extensive engagement through the Our Vision, Our Future campaign. Roadmap 2035 outlines what is already happening in our sector and what will be undertaken, to ensure a safe, sustainable oil and gas industry that contributes to a net-zero future. The offshore oil and gas industry currently meets 45 per cent of the UK's overall energy needs and will continue to provide energy security for decades to come. Having an indigenous energy resource helps to ensure an energy supply we can control, regulate and access. It also brings with it a range of economic benefits. Production of domestic oil and gas directly accounts for around 1.2 per cent of the UK's GDP and will continue to contribute billions of pounds of taxes in the future, as well as securing hundreds of thousands of skilled jobs. It is an important contribution that is key to the well-being of the UK's economy and one that industry is proud to make. Industry's performance continues to improve and, as a result, the UK sector is more competitive than it has been for many years. New investors are being attracted to the basin, with almost $5.5 billion of assets changing hands so far this year. Fresh opportunities are being unlocked and drilling activity is increasing following record-low levels in recent years. Eighteen exploration and appraisal wells have been drilled so far in 2019, more than the whole of 2018, and the basin is on track to drill over 100 development wells for the first time since 2015.
In addition, production is higher than it has been since 2011 and production efficiency at its greatest level for a decade. The industry is also building its reputation for decommissioning excellence, which is part of the lifecycle of every asset. Experience in this area is growing and as a result of a sustained focus to improve efficiency, cost estimates continue to fall. Industry is now halfway towards the target of a 35 per cent reduction in total costs by 2022. The international competitiveness of the sector will remain critical to achieving the potential of the UK's domestic resources and ongoing support from government and regulators is needed to maintain the progress made in recent years. Predictability, stability and clarity are all vital in the face of global challenges, and the tripartite arrangement, between government, industry and regulators can continue to serve the UK well in the future.
The strength of the supply chain is also key to the competitive proposition of the industry. Although the UK market is returning to growth, the sustainability of some companies remains fragile. Both operators and contractors need to work together, constructively, to ensure an appropriate balance of risk and that all companies realise value from their investments. OGUK has developed a new set of Supply Chain Principles with its members, uptake of which can help ensure the ongoing sustainability of the basin. Industry's focus on its environmental performance, including its carbon footprint, is key to achieving a sustainable industry as we look to a net-zero future. In recent years progress has been made in managing emissions intensity from the production of oil and gas, but more can be done.
Offshore oil and gas production operations currently account for around 3 per cent of the UK's total greenhouse gas emissions, however the majority of emissions from the wider economy are from the use of oil and gas products. The UK's location and geology mean that it has a competitive advantage when it comes to large-scale emissions mitigation programmes such as Carbon Capture, Usage and Storage. The oil and gas industry also has the skills, capabilities and expertise to be a key partner in the development of this technology at scale, however it is important that governments ensure that the correct commercial and regulatory frameworks are in place to allow this. There are also other energy opportunities which oil and gas companies are already actively exploring, supporting and investing in, including hydrogen, wind, wave, solar and geothermal power.
OGUK:
https://oilandgasuk.co.uk/wp-content/uploads/2019/09/Economic-Report-2019-OGUK.pdf
# Acquisdata: Up to date business intelligence reports covering developments in the world's fastest growing industries
www.acquisdata.com
#
# Reportal: a vast archive of corporate documents from listed companies around the world
www.reportaldata.com
#
Leading Companies
AkzoNobel (AEX: AKZA)
AkzoNobel has a passion for paint. We're experts in the proud craft of making paints and coatings, setting the standard in color and protection since 1792. Our world class portfolio of brands - including Dulux, International, Sikkens and Interpon - is trusted by customers around the globe. Headquartered in the Netherlands, we are active in over 150 countries and employ around 34,500 talented people who are passionate about delivering the high-performance products and services our customers expect.
https://www.akzonobel.com/en
AkzoNobel - AkzoNobel grows revenue 26% and delivers [euro]335 million adjusted operating income - 21/7/2021
Akzo Nobel N.V. (AKZA; AKZOY) publishes results for second quarter 2021
Highlights Q2 2021
Revenue 26% higher than Q2 2020 (up 8% from Q2 2019, in constant currencies
1
) with 4.5% price increase
Adjusted operating income
2
at [euro]335 million (return on sales
3
at 13.3%), 41% higher than Q2 2020 and up 10% from Q2 2019
[euro]1 billion share buyback started April 27, 2021; [euro]223 million completed by end of Q2 2021
Acquisition of Colombia-based Grupo Orbis announced, expected to be completed by end of 2021 or early 2022
Q2 2021 (compared with Q2 2020)
Revenue up 26% and 29% higher in constant currencies, with volumes up 26%, mainly due to strong end market demand. Price/mix up 1%, while acquisitions added 2%
Operating income up 86% at [euro]384 million (2020: [euro]207 million); OPI margin improved to 15.3% (2020: 10.4%)
Adjusted operating income up 41% at [euro]335 million (2020: [euro]238 million) excludes [euro]49 million net positive impact from identified items, mainly related to Brazil ICMS and UK pension gains (2020: [euro]31 million negative identified items related to transformation initiatives)
Net cash from operating activities at [euro]168 million (2020: [euro]308 million)
Net income from total operations up 102% at [euro]261 million (2020: [euro]129 million)
EPS from total operations up 106% at [euro]1.40 (2020: [euro]0.68); adjusted EPS from continuing operations up 50% at [euro]1.20 (2020: [euro]0.80)
AkzoNobel CEO, Thierry Vanlancker, commented:
"We're very proud of our teams for delivering another strong quarter, including top line growth, despite the significant raw material headwinds impacting our industry.
"In view of the ongoing raw material inflation, we continue to take firm and necessary actions on pricing initiatives and maintaining our cost discipline, while remaining focused on serving our customers.
"Our People. Planet. Paint. approach to sustainability has again been recognized with the highest possible ESG rating (AAA) from MSCI for the sixth consecutive year, making us the frontrunner in paints and coatings."
Recent highlights
Deal agreed to acquire Colombia-based Grupo Orbis
We're further expanding our position in South and Central America after reaching an agreement to acquire Colombia-based paints and coatings company Grupo Orbis. Present in ten countries in South America, Central America and the Antilles, the deal will establish us as a frontrunner in the Andean region and in Central America, where several countries are high on the global growth rankings for the next decade.
Creating a more sustainable yacht industry
Our Yacht Coatings business has partnered with the Water Revolution Foundation to help create a more sustainable yacht industry and protect the world's oceans. Having already made a long-term commitment to bring positive change to the industry, the business will share its expert knowledge and insight, which has been acquired over many decades of developing pioneering solutions for customers around the world. Established in 2018, the Water Revolution Foundation is a not-for-profit organization working to preserve the world's oceans by helping the yacht industry to drive down its environmental impact.
Solar projects powering ahead in China
Two major projects to install around 8,000 solar panels are being finalized in China, helping us to accelerate our ambition of cutting carbon emissions in half by 2030. Being installed at two Decorative Paints plants - more than 5,000 at our Shanghai site and almost 3,000 in Guangzhou - it represents further progress for our greener manufacturing plans. The new solar systems will become the primary source of power at each location.
Paint the Future a big hit with pioneering startups
Our innovative Paint the Future startup challenge is continuing to attract interest from around the world. We received more than 200 submissions for our second global edition - which was launched in May - with a follow-up bootcamp event scheduled for November. Meanwhile, this year's regional startup event in China attracted 210 submissions (the bootcamp is in August). The next regional edition will be launched in India in February next year, with a focus on digital customer solutions.
Setting the standard
We recently received the highest possible ESG rating (AAA) from MSCI for the sixth consecutive year. Designed to measure resilience to long-term industry risks, the rating identifies how well we manage those risks and how we're doing against our peers. In 2021, we were ranked in the leader position in six of our industry's seven key topics: clean technologies; chemical safety; governance; water stress; carbon emissions; and toxic emissions and waste.
Outlook:
AkzoNobel targets to grow at least in line with its relevant markets. Trends differ per region and segment with significant raw material inflation expected to continue in the second half of 2021. Margin management and cost discipline are in place to deliver an average annual 50 basis points increase in return on sales over the period 2021-2023. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.
1 Constant currencies calculations exclude the impact of changes in foreign exchange rates
2 Adjusted operating income = operating income excluding identified items
3 Return on sales (ROS) is adjusted operating income as percentage of revenue; ROS excluding unallocated cost was reported in relation to the Winning together: 15 by 20 strategy and is no longer reported
This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full AkzoNobel Q2 2021 Report. The Q2 2021 Report provides additional information, including the IAS34 condensed consolidated financial statements.
ROS, adjusted OPI and adjusted EPS are Alternative Performance Measures (APM's). AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the AkzoNobel Q2 2021 Report.
This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).
About AkzoNobel
We've been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there's a good chance you're only ever a few meters away from one of our products. Our world class portfolio of brands - including Dulux, International, Sikkens and Interpon - is trusted by customers around the globe. We're active in more than 150 countries and have set our sights on becoming the global industry leader. It's what you'd expect from the most sustainable paints company, which has been inventing the future for more than two centuries.
https://www.akzonobel.com/en/media/latest-news---media-releases-/akzonobel-grows-revenue-26-percent-and-delivers-335-million-adjusted-operating-income
BP Plc (LSE: BP)
Our business model
From the deep sea to the desert, from rigs to retail, we deliver energy products and services to people around the world. We provide customers with fuel for transport, energy for heat and light, power for industry, lubricants to keep engines moving and the petrochemicals products used to make everyday items such as paints, clothes and packaging.
We have a diverse portfolio across businesses, resource types and geographies. Having upstream, downstream and renewables businesses, along with well-established trading capabilities, helps to mitigate the impact of commodity pricing cycles. Our geographic reach gives us access to growing markets and new resources, as well as diversifying exposure to geopolitical events. We are helping to meet the dual challenge of society's need for more energy while reducing emissions through our 'reduce, improve, create' framework.
We believe that our long history, well-recognized brands and customer offers, combined with our unique partnership with Rosneft, help differentiate us from our peers.
Our role in society
The energy we produce helps support economic growth and improve quality of life for millions of people. We strive to be a world-class operator, a responsible corporate citizen and a great employer.
We believe the societies and communities we work in should benefit from our presence. We aim to create positive, meaningful and sustainable impacts in those communities through our social investments.
We contribute to economies around the world by employing local people, helping to develop national and local suppliers, and through the funds we pay to governments from taxes and other agreements.
Creating value
Finding oil and gas
New access allows us to renew our portfolio, discover additional resources and replenish our development options. We focus our exploration activities in the areas that are competitive in the portfolio, and develop and use technology to reduce costs and risks.
Developing and extracting oil and gas
We develop the resources that meet our return threshold and produce hydrocarbons that we then sell to the market or distribute to our downstream facilities. Our upstream pipeline of future projects gives us choice about which we pursue. We also seek to grow or extend the life of existing fields - such as our Clair Ridge project, which is helping unlock additional resources from the Clair field in the UK North Sea.
Transporting and trading
We move oil and gas through pipelines and by ship, truck and rail. We also trade a variety of products including oil, natural gas, liquefied natural gas, power and carbon products, as well as derivatives and currencies. BP's traders serve more than 12,000 customers across some 140 countries in a year. Our customers range from independent power producers to utilities and municipalities.
We are the largest trader of natural gas in North America. We use our market intelligence to analyse supply and demand for commodities across our global network.
Manufacturing and marketing fuels and products
We produce refined petroleum products at our refineries and supply distinctive fuels and convenience retail services to consumers. Our advantaged infrastructure, logistics network and key partnerships help us to have differentiated fuels businesses and deliver compelling customer offers, including lower carbon products.
Our lubricants business has premium brands and access to growth markets. It also leverages technology and customer relationships, all of which we believe gives us competitive advantage. We serve automotive, industrial, marine and energy lubricant markets across the world.
In petrochemicals our proprietary technology solutions deliver leading cost positions compared to our competitors. In addition to our own petrochemicals plants, we work with partners and license our technology to third parties.
Generating renewable energy
We have been investing in renewables for many years. Our focus is on biofuels, biopower, wind energy and solar energy. We operate a biofuels business in Brazil, using one of the world's most sustainable and advantaged feedstocks to produce renewable ethanol and power. We also provide renewable power through our significant interests in onshore wind energy in the US, and develop and deploy technology to drive efficiency.
And in solar energy we target the growing demand for large-scale solar projects worldwide through Lightsource BP.
Venturing
We invest in high-tech companies to help accelerate and commercialize new technologies, products and business models. Our focus is on five areas that are core to our strategy for advancing the energy transition: advanced mobility, bio and low carbon products, carbon management, digital transformation and power and storage.
https://www.bp.com/en/global/corporate/what-we-do/our-business-model.html
BP Oil Ltd. - Second quarter and half year 2021 - 3/8/2021
Strong results, growing dividend, executing buybacks
Strong results and continued net debt reduction in an improving environment
Growth of resilient dividend within disciplined financial frame
Executing $1.4 billion buybacks from first half 2021 surplus cash flow
Further strategic progress with 4 major project start-ups, growth in solar and convenience
Financial summary
$ million
Second quarter 2021
First quarter 2021
Second quarter 2020
First half 2021
First half 2020
Profit (loss) for the period attributable to bp shareholders
3,116
4,667
(16,848)
7,783
(21,213)
Inventory holding (gains) losses*, net of tax
(736)
(1,342)
(809)
(2,078)
2,928
Replacement cost (RC) profit (loss)*
2,380
3,325
(17,657)
5,705
(18,285)
Net (favourable) adverse impact of adjusting items*
(b)
, net of tax
418
(695)
10,975
(277)
12,394
Underlying RC profit*
2,798
2,630
(6,682)
5,428
(5,891)
Operating cash flow*
5,411
6,109
3,737
11,520
4,689
Capital expenditure*
(2,514)
(3,798)
(3,067)
(6,312)
(6,928)
Divestment and other proceeds
(c)
215
4,839
1,135
5,054
1,816
Net issue (repurchase) of shares
(500)
-
-
(500)
(776)
Net debt*
(d)
32,706
33,313
40,920
32,706
40,920
Announced dividend per ordinary share (cents per share)
5.46
5.25
5.25
10.71
15.75
Underlying RC profit per ordinary share* (cents)
13.80
12.95
(33.05)
26.75
(29.17)
Underlying RC profit per ADS (dollars)
0.83
0.78
(1.98)
1.61
(1.75)
Strong results and continued net debt reduction in an improving environment
Operating performance was resilient in the second quarter with four major project* start-ups, strong momentum in the customers business, including material growth in convenience gross margin*, and delivery of $2.5 billion of cash costs* savings on a run-rate basis relative to 2019, around six months earlier than targeted.
Reported profit for the quarter was $3.1 billion, compared with $4.7 billion for the first quarter 2021.
Underlying replacement cost profit* was $2.8 billion, compared with $2.6 billion for the previous quarter. This result was driven by higher oil prices and margins offset by a lower result in gas marketing and trading.
Operating cash flow* of $5.4 billion includes $1.2 billion pre-tax of Gulf of Mexico oil spill payments within a working capital* build of $0.5 billion (after adjusting for inventory holding gains and fair value accounting effects).
Net debt* fell to $32.7 billion at the end of the second quarter.
Following the annual review of price assumptions used for investment appraisal and value-in-use impairment testing, bp's Brent oil price assumption to 2030 is increased to reflect expected supply constraints, while longer-term assumptions are lowered as bp expects an acceleration of the pace of transition to a low carbon economy.
As a result of these changed assumptions, the reported result includes a pre-tax net impairment reversal of $3.0 billion.
Distribution growth within disciplined financial frame
A resilient dividend is bp's first priority within its disciplined financial frame.
Reflecting the underlying performance of the business, an improving outlook for the environment, confidence in our balance sheet and commencement of the share buyback programme, the board has announced an increase in the second quarter dividend of 4% to 5.46 cents per ordinary share. This increase is accommodated within a 2021-5 average cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2020 real).
bp generated surplus cash flow* of $0.7 billion in the second quarter and $2.4 billion in the first half after having reached its net debt target of $35 billion. Taking into account surplus cash flow* generated in the first half of the year, bp intends to execute a share buyback of $1.4 billion prior to announcing its third quarter 2021 results. For 2021, and subject to maintaining a strong investment grade credit rating, the board remains committed to using 60% of surplus cash flow for share buybacks and plans to allocate the remaining 40% to continue strengthening the balance sheet.
On average, based on bp's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver buybacks of around $1.0 billion per quarter and have capacity for an annual increase in the dividend per ordinary share of around 4%, through 2025. Other elements of the financial frame are unchanged.
The board will take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating in setting the dividend per ordinary share and the buyback each quarter.
bp expects to outline plans for the fourth-quarter share buyback at the time of its third quarter results.
Strong progress in our transformation to an integrated energy company
Since outlining its new strategy a year ago, bp has made strong progress in its transformation to an IEC. It has delivered 8 major projects*, built a 21GW renewable pipeline, grown convenience and electrification, reorganized, reached over $10 billion of divestment proceeds, strengthened the financial frame and begun share buybacks.
Four major projects began production in the second quarter - in India, Egypt, Angola and the Gulf of Mexico.
bp has continued to significantly expand its renewables pipeline, buying a 9GW solar development pipeline in the US. Lightsource bp also continued to expand, growing in Portugal, Spain, Greece and Australia. bp confirmed its intention to bid for offshore wind leases in Scotland with EnBW and in Norway with Statkraft and Aker.
bp opened the UK's first fleet-dedicated EV rapid charging hub in London, the first of a series intended for cities across Europe. In the US, bp agreed to take full ownership of the Thorntons business, which is expected to complete in the third quarter of 2021, positioning bp to be a leading convenience operator in the Midwest US.
We are a year into executing bp's strategy to become an integrated energy company and are making good progress - delivering another quarter of strong performance while investing for the future in a disciplined way. Based on the underlying performance of our business, an improving outlook for the environment and confidence in our balance sheet, we are increasing our resilient dividend by 4% per ordinary share and in addition, we are commencing a buyback of $1.4 billion from first half surplus cash flow. On average at around $60 per barrel, we expect to be able to deliver buybacks of around $1.0 billion per quarter and to have capacity for an annual increase in the dividend per ordinary share of around 4%, through 2025. This shows we continue to perform while transforming bp - generating value for our shareholders today while we transition the company for the future.
https://www.bp.com/en/global/corporate/news-and-insights/press-releases/second-quarter-2021-results.html
Croda International plc (LSE: CRDA)
Established in 1925, Croda is the name behind high performance ingredients and technologies in some of the world's biggest and most successful brands: creating, making and selling speciality chemicals that are relied on by industries and consumers everywhere.
We are the name behind the high performance ingredients and technologies in some of the biggest, most successful brands in the world: creating, making and selling speciality chemicals that are relied on by industries and consumers everywhere.
Founded in 1925, from the beginning we have understood the growing part that science plays in everyday life. We continually build on our heritage with sustainability central to our thinking, turning exciting, often groundbreaking ideas into practical solutions that our customers use to enhance their products.
Our success is driven by our focus on collaboration, our proactive attitude and ability to think differently. We achieve this by encouraging our people to be curious and seek out creative ways to satisfy unmet needs. They work together as one global team, empowered to use their collective skill and knowledge to grow our business. We take pride in the intimate relationships our people have with our customers and their ability to remain close to them through our local operations. Our work with our peers supports this shared approach, influencing advancements in scientific understanding by taking part in regulatory discussions and partnering with world leading universities.
Our 4000+ employees work across our 18 manufacturing sites and in offices in over 30 countries. They help our customers anticipate and meet the ever changing demands of their customers through a structure that is flexible and agile in response to specific customer needs. This is supported by the claims validation and efficacy testing package behind the thousands of ingredients that we develop and manufacture for our wide range of business areas: Coatings and Polymers, Crop Care, Geo Technologies, Health Care, Home Care, Industrial Chemicals, Lubricants, Personal Care and Polymer Additives.
We believe in turning challenges into opportunities, embracing our responsibility to pursue sustainable growth, and ensuring that the ingredients we make and the products they are used in have ever more benefit, with ever less impact. As we continue to evolve, our focus will remain the same; a team of passionate experts dedicated to working alongside our customers, delivering to them sustainable and innovative ingredients that they can build on.
https://www.croda.com/en-gb/about-us
Results for the six months ended 30 June 2020
23/7/2020
Strong business model delivers resilient performance
Croda International Plc ("Croda" or the "Group"), the speciality chemical company that creates high performance ingredients and technologies relied upon by industries and consumers globally, today announces its half year results for the six months ended 30 June 2020.
Highlights:
Half year ended 30 June
% change
% change
1
2020
2019
reported rate
constant rate2
Adjusted results
Sales - Core Business3
£million
625.9
657.9
(4.9)
(6.0)
Operating profit
£million
161.6
179.4
(9.9)
(9.4)
Profit before tax (PBT)
£million
152.5
170.6
(10.6)
(10.1)
Basic earnings per share (EPS)
pence
88.8
98.2
(9.6)
(9.1)
Return on sales4
%
24.0
25.1
(1.1)ppts
n/a
Free cash flow5
£million
80.2
94.5
(15.1)
n/a
Half year ended 30 June
Reported results (IFRS)
2020
2019
% change
Sales
£million
672.9
714.7
(5.8)
Operating profit
£million
154.0
175.0
(12.0)
Profit before tax (PBT)
£million
144.9
166.2
(12.8)
Basic EPS
pence
84.1
95.6
(12.0)
Ordinary dividend per share
pence
39.5
39.5
-
Our response to COVID-19
Our priorities have been to protect the health and safety of our employees and balance the needs of all our stakeholders fairly. The response and commitment of all our employees has been exceptional, with almost all able to work effectively, either on site or from home. We have not furloughed employees, reduced pay or utilised government liquidity facilities. All our 19 principal manufacturing sites have remained in operation and raw material supply chains secure. We have supported our customers and suppliers, given financial assistance to the communities closest to our sites, and sustained our track record of paying regular dividends to shareholders. Through our actions, we aim to live up to our Purpose of using Smart Science to Improve LivesTM.
Group highlights
Continued strength of business model demonstrated during challenging COVID-19 conditions
Modest reduction in sales
Core Business sales 4.9% lower (-6.0% constant currency (CC))
Ongoing delivery of innovation: New & Protected Product (NPP) sales at 27.2% of total (2019: 28.3%)
Resilient margin despite lower volume and adverse product mix o Adjusted operating profit 9.9% lower (-9.4% CC)
Return on sales 110 basis points (bps) lower at 24.0% o IFRS profit before tax 12.8% lower at £144.9m
Strong balance sheet and healthy cash generation supporting continued investment
Capital investment in capacity expansion, digital platform for customers and expanded R&D
Technology-rich Health Care acquisition signed in July - important addition to speciality drug delivery capability
2019 final dividend paid in full and 2020 interim dividend maintained at 39.5 pence
Sector highlights
Life Sciences continued to perform well with limited COVID-19 impact
190 bps return on sales expansion to 32.5% with growth in higher value-add niches; sales 0.8% lower (-1.7% CC)
Personal Care adversely impacted by consumer slowdown in second quarter but encouraging North Asia performance
Resilient return on sales of 30.4% (-290bps) despite adverse volume and mix impact; sales 8.1% lower (-9.5% CC)
Performance Technologies progressively impacted by COVID-19 slowdown in industrial markets; strong home care
&packaging markets
Weaker return on sales of 15.1% (-290bps) due to operating leverage; sales 4.6% lower (-5.6% CC)
Outlook:
Following a challenging second quarter, trading has stabilised but visibility is limited and the timing of recovery remains unclear. Life Sciences will benefit from the phasing of Crop Care sales and continued opportunities in Health Care. We anticipate consumer markets significantly impacted by lockdowns to recover more quickly than industrial end markets. We expect Group margin and cash generation to remain robust.
Steve Foots, Chief Executive Officer, commented:
"The response and commitment of all our employees to serve our customers during the COVID-19 pandemic has been exceptional and the strength of Croda's business model has been clearly demonstrated. Whilst customer demand has inevitably been impacted by the crisis, the strength and breadth of our portfolio, global footprint and flexible manufacturing have all helped to reduce its impact. This has enabled us to deliver a resilient performance with only a modest reduction in sales, a resilient margin and healthy cash generation. With a strong balance sheet, low leverage and robust liquidity, we have continued to pay our regular dividends, invest in future organic growth and secure a technology-rich acquisition in our fast-growing Life Sciences business.
"Despite current trading conditions remaining volatile, our strategy is unchanged and, by focusing on the future during these challenging times, we can accelerate delivery to enhance future growth and profitability."
file:///C:/Users/Donny%20Pc/Downloads/2020%20Half%20Year%20Announcement.pdf
Dylon International
ABOUT DYLON
Dylon International is owned by Henkel AG & Co KGaA (XETR: HEN).
For the link page:
https://www.henkel.co.uk/brands-and-businesses/dylon-550426
We live in a colorful world! DYLON celebrates this fact more than most, having brought colour to the wardrobes, homes and lives of people the world over for more than 60 years.
DYES OF LONDON
In 1946 DYLON - 'Dyes of London' - was founded by two young entrepreneurs, Luca Purbeck and Peter Samuel who began selling colourful dyes from a garage in central London. From those humble beginnings DYLON went on to thrive in 'make-do & mend' post war Britain, making fabric dyes to brighten up the homes, wardrobes and spirits of families across the country.
DYLON GOES GLOBAL
The company continued to grow throughout the rock and roll years of the 1950s. Over the next few decades DYLON went global, selling coloured dyes to over 70 countries around the world.
EXCITING NEW COLOURS
The swinging sixties were a high point for DYLON, this was arguably the most colourful part of the last century. The window displays of DYLON's chic Edgware Road boutique were ever-changing with ideas to inspire the stylish set; whilst teenagers were making their own outfits, shortening hemlines, tie-dyeing t-shirts and wearing exciting new colours.
MORE INNOVATIONS
DYLON went on to innovate throughout the 70s and 80s, launching a broad range of fabric care products from ironing aids to stain removers to keep colours looking their best. In 1979 even Grace Kelly expressed real interest in the DYLON range at an international exhibition in Monte Carlo.
VIBRANT COLOURS
During the 1990s DYLON was a firm favourite on TV show Changing Rooms, used by the likes of Laurence Llewelyn-Bowen. At this time DYLON continued to innovate with the launch of super convenient DYLON Wash & Dye.
MAKE A CHANGE
Most recently DYLON is again bang on trend as people choose to be less wasteful with their possessions. Recycling is big news and people are choosing to change things rather than chuck them. Another vibrant topic today is personal individuality. With DYLON fabric dyes people can express themselves with their exclusively coloured clothes or home textiles.
https://www.dylon.co.uk/en/home/all-about-dylon/our-history.html
Elementis Plc (LSE: ELM)
Our Locations
Elementis employs over 1,600 people at more than 30 locations worldwide.
We are a UK-listed global specialty chemicals company with operations worldwide. Our Board of Directors is based in London with the Executive Leadership team being based predominantly in New Jersey, USA; Amsterdam, Netherlands; and London, UK.
https://www.elementis.com/about-us
Interim Results For The Six Months Ended 30 June 2020
28/7/2020
Resilient performance in the face of COVID-19 related Q2 volume impacts
Revenue down 14% (down 11% on an organic basis*) from $450m to $387m principally due to COVID-19 related impact on Q2 volumes across industrial end markets.
Statutory loss after tax of $51m (June 2019 $40m profit) after $60m of non-cash goodwill impairments across Energy and Talc assets primarily as a result of COVID-19 impact. Adjusted operating profit down 34% (down 33% on an organic basis*) to $42m despite a resilient Coatings and Personal Care performance with cost savings, raw material cost benefits and steady price/mix offset by lower volumes.
Net debt down by $55m from $509m (June 2019) to $453m ($454m at December 2019) representing a leverage5 of 3.1x EBITDA vs recently relaxed covenant of 3.75x. The Group continues to have significant liquidity with over $300m immediately available.
Swift COVID-19 response and resilient global supply chain
Prioritising the well-being of our people and continued supply to our customers; the Group's 22 global production sites have operated largely uninterrupted.
Proactive cash and cost management. $10m of in-year COVID-19 response savings underway. Accelerated progress on $15m medium term efficiency programme; $5m in 2020 from 2019 organisation restructuring & $10m supply chain savings now expected one year earlier in 2021.
A strong business, well positioned for the delivery of sustainable growth and value creation
Business fundamentals remain strong - a higher quality, advantaged portfolio with material growth and self-help opportunities.
Progress on Innovation, Growth and Efficiency strategy to deliver medium term Group performance objectives. On track for over $30m of NBOs and 26 new product launches in 2020
New 2030 targets for GHG emissions, energy efficiency, water usage in operations and waste reflect acceleration of sustainability agenda.
Modest sequential improvement from May. Expecting significant reduction in net debt in H2
Modest sequential improvement in June and July trading from May volume trough.
Focus on tight cost control and cash management continues. Expect to significantly reduce net debt by year end.
FINANCIAL SUMMARY
Six months ended
Six months ended
% Change
30 June 2020
30 June 2019
Revenue
$387m
$450m
-14%
Statutory (loss)/profit for the period
$(51)m
$40m
-227%
Statutory basic (loss)/earnings per share2
(8.8)c
6.9c
-228%
Adjusted operating profit1
$42m
$64m
-34%
Adjusted profit before tax1
$28m
$49m
-42%
Adjusted diluted earnings per share2
3.5c
6.5c
-46%
Operating cash flow3
$28m
$62m
-55%
Net debt4
$453m
$509m
-11%
Ordinary dividend per share
-
2.80c
-
Business performance overview
Personal Care revenue flat on an organic basis* (down 11% on a reported basis) at $90m. Adjusted operating profit down 11% on organic basis* (down 13% on a reported basis) to $20m, representing a 22.4% margin.
Continued volume momentum in AP Actives (double digit growth y-o-y) offset by modest COVID-19 related decline in Cosmetics and gypsum dental plant disposal.
Margins robust at 22.4%, broadly stable on prior year. Decline in operating profit driven by mix impact of relatively softer Cosmetics volumes.
Coatings revenue down 7% on a constant currency basis (9% on a reported basis), from $164m to $148m. Adjusted operating profit of $23m marginally down on prior year ($24m), with adjusted operating profit margins up from 14.6% to 15.5%.
Weak Q2 volumes in industrial coatings across all geographies; deco more resilient. Price/mix improved and good customer momentum in growth platforms.
Margin improvement reflective of transformation programme benefits and improved product portfolio.
Talc revenue down 16% on constant currency basis to $61m (18% on a reported basis). Adjusted operating profit down 37% on constant currency basis (40% on a reported basis) to $6m, with margins down from 14.0% to 10.2%.
Following a solid Q1, revenue impacted by significant Q2 volume weakness in European automotive and paper markets as a result of COVID-19 related customer plant shutdowns.
Margins impacted by volume deterioration and lower fixed cost absorption.
Chromium revenue down 12% to $78m. Adjusted operating profit down 72% to $3m.
Performance impacted by weak Q2 industrial demand, customer plant shutdowns and lower year on year pricing in rest of the world business. North American pricing and margins resilient.
Margins down from 12.7% to 4.0% due to lower volumes and weaker pricing.
Energy revenue down 50% to $14m. Adjusted operating loss of $2m (H1 2019: $3m operating profit).
Profitability impacted by significantly weaker volumes due to lower oil prices and reduced drilling activity, particularly in North America.
Commenting on the results, CEO, Paul Waterman said:
"After a good start to the year, we have faced challenging conditions across all our businesses in the second quarter due to the impact of COVID-19.
Our focus has been to safeguard the health and wellbeing of our employees and to continue to provide a reliable service to our customers. I am proud of the dedication of our people and the resilience of our global supply chain which has operated largely uninterrupted. We have also taken immediate actions to optimise profit performance and cash delivery, while continuing to implement our strategy so that we emerge from this crisis well positioned for future value creation.
In recent years we have focused Elementis on high quality, high margin activities in Personal Care, Coatings and Talc. Despite the uncertainties of the current market environment, these businesses have enduring positions of strength in structural growth markets and we remain well positioned to deliver on our medium term financial ambitions which will drive significant profitable growth and deleveraging."
Business review
CEO's report
The first six months of 2020 has posed unprecedented challenges for our employees, customers and shareholders. We have responded by focusing on the safety of our workforce, maintaining reliable supply to our customers and optimising our financial performance. While a solid first quarter was followed by a significantly weaker second quarter due to COVID-19, we have made strategic progress to position the business for long term success.
COVID-19 response
The COVID-19 pandemic and the global measures being taken to mitigate its impact have resulted in significant change for our employees, customers and shareholders. We have had an executive team in place to manage our response and I am extremely proud of how the business has reacted.
Our top priority is to do the right thing for our staff, in the knowledge they will look after our customers. Since mid-March the majority of our office based staff, representing approximately 25-30% of our workforce at the peak, have been successfully working from home, enabled by recent technology investments. At our 22 global manufacturing plants, comprehensive social distancing and safety measures have helped to keep our people safe. Enhanced employee communications and well-being resources have ensured continued close collaboration across the organisation.
We have continued to provide a reliable service for our customers. With the exception of short temporary closures at two sites in China and one site in Brazil, the company's production sites have operated well with no raw material shortages. This resilience is partly reflective of recent operating changes; for instance reducing our single sourced raw materials from 40% in 2016 to 25% today. It is also a credit to our people who have worked tirelessly with suppliers, logistics partners and customers to ensure adequate plans are in place for all contingencies. Furthermore, we have continued to support our partners' innovation efforts through the delivery of virtual innovation and technical support sessions to over 7,000 customer employees around the world.
We have also taken swift and decisive action to reduce costs, conserve cash and strengthen our balance sheet. While the Group has benefited from $5m of head count related cost actions taken in late 2019, and accelerated progress towards our $10m of supply chain savings, short term mitigation has focused on the cessation of discretionary expenditure in areas such as marketing and travel. This is anticipated to save approximately $10m in 2020. Co-ordination between our supply chain, sales and finance teams has been strong, and as a result we are well positioned to deliver $7m of further sustainable working capital savings in 2020. In addition, as previously announced, given the market and economic uncertainties, the Group has taken two steps to provide additional financial headroom and preserve cash:
-First, Elementis has secured a relaxation of its banking covenants from 3.25x to 3.75x net debt/EBITDA** which will apply for the two testing periods of 30 June 2020 and 31 December 2020.
-Second, the 2019 final dividend of 4.4487 pence per share (c. $33m in total) was suspended in March 2020 and the Board has decided not to declare an interim dividend for 2020.
These actions are to ensure we conserve cash and remain well positioned for long-term success.
Group performance
Personal Care
In the six months to 30 June 2020, Personal Care revenue was flat on an organic basis* with growth in AP Actives offset by weaker Cosmetics performance. Revenue fell 11% on a reported basis to $90m due to the disposal of a dental gypsum plant at the end of 2019 and foreign exchange headwinds. In Cosmetics, market conditions for our primary end market of premium colour cosmetics were challenging as COVID-19 related lockdowns weakened category sales. In AP Actives, constant currency revenue was slightly ahead of the prior year with double digit volume growth offset by weaker price/mix, in line with our strategy to grow market share ahead of the startup of our new facility in India. While the startup has been delayed by 6 months to mid-2021, due to COVID-19 related factors, it will materially improve our competitiveness through the mitigation of tariffs, reduced production costs and improved access to growth markets in Asia.
Adjusted operating profit for Personal Care declined 11% on an organic basis* and 13% on a reported basis to $20m, with adjusted operating margins robust at 22.4%. The decline in adjusted operating profit was primarily driven by the mix impact of relatively softer Cosmetics volumes.
Coatings
In Coatings, revenue fell 7% on a constant currency basis, and 9% on a reported basis to $148m. While performance in the first quarter was good with solid volume growth, the second quarter was notably weaker as COVID-19 related lockdowns impacted volumes. All regional performance commentary is on a constant currency basis unless otherwise stated.
Americas revenue fell 5% on the prior year period. In the US, decorative coatings had a strong start to the year as households took the opportunity to undertake renovation projects and our premium RHEOLATE® HX rheology series continued to build customer momentum. Revenue from industrial coatings was lower with double digit volume declines in the second quarter due to notable weakness in the automotive and construction markets. Sales in Latin America were materially impacted by the challenging macroeconomic environment particularly in Brazil.
In Asia, where over 80% of our sales come from industrial coatings, revenue declined by 7% with volume weakness in the second quarter due to customer destocking, primarily in areas intended for export, offsetting improved pricing and mix. Activity levels were weak across all countries in Asia, with some markets such as India particularly impacted by the shutdown of the domestic chemicals industry.
EMEA revenue fell 10% on the prior year period. Industrial coatings volumes declined 16% in the period, reflective of weak activity across automotive and industrial machinery end markets. Decorative coatings were broadly stable with good DIY demand offset by weaker professional activity.
Despite the decline in revenue, adjusted operating profit fell only 1% on a constant currency basis (4% decline on a reported basis) to $23m with weaker volumes offset by transformation savings, route to market optimisation and improved mix through our value focused product portfolio. As a result, adjusted operating profit margins increased from 14.6% to 15.5%. The Coatings transformation programme has created an integrated and more customer centric organisation that is well positioned for future success.
Talc
While pricing in Talc remained stable, revenue fell by 16% on a constant currency basis (18% decline on a reported basis) to $61m with lower volumes primarily in the second quarter. Revenue from industrial talc customers (c.80% of Talc sales) declined 10% on a constant currency basis, with weakness in plastics and technical ceramics due to COVID-19 related automotive plant shutdowns. Sales to coatings customers were broadly stable on the prior year period, reflective of market share gains. While sales to paper customers are anticipated to decline in the medium term, they fell at an accelerated rate in the first half due to weak graphic paper demand and temporary plant shutdowns.
Adjusted operating profit fell by 40% on a reported basis and 37% on a constant currency basis to $6m. Of the reported $4m year on year decline in adjusted operating profit, $1m was due to adverse foreign exchange movements and $3m was primarily a result of weaker volumes.
Chromium
Revenue in the period was $78m, down 12% on 2019 due to weak volumes and continued pricing pressure. Owing to COVID-19 related plant shutdowns, demand declined across a range of industrial end markets including automotive, aerospace and leather tanning. As a result, global chromium industry capacity utilisation fell below 70% with deflationary pricing pressure primarily impacting our sales outside of North America. Within North America, Chromium continues to enjoy a strong competitive advantage due to our position as the only producer in the region and our unique delivery system that generates significant operational and safety benefits for our customers.
Adjusted operating profit for the first six months of the year was $3m, down 72% versus the prior year period due to lower volumes and weak pricing outside of North America. Adjusted operating profit margin declined from 12.7% to 4.0%.
Energy
In the first six months of the year, Energy revenue declined by 50% to $14m, with stable pricing offset by weak drilling volumes. In North America, which accounts for approximately 75% of the Energy segment revenue, rig counts fell approximately 50% on the prior year period reflective of the decline in oil prices.
Adjusted operating profit declined to a loss of $2m (2019 H1 profit of $3m) due to the fall in volumes and lower fixed cost absorption.
Balance sheet
At the end of June 2020 net debt fell $55m on the prior year period (30 June 2019: $509m) to $453m as a result of robust underlying cash generation, representing a net debt to adjusted EBITDA ratio** of 3.1x (2.8x at 30 June 2019). Net debt was broadly stable on December 2019 ($454m), with resilient earnings and capital expenditure discipline offset by a temporary working capital outflow. Strong underlying cash generation, supported by the delivery of $7m of sustainable working capital improvements, is expected to drive a significant reduction in net debt in the second half of 2020. Non cash goodwill impairments of $60.7m have been recognised in the period.
Interim dividend
We recognise the importance of a dividend to our shareholders. However, given the COVID-19 related macroeconomic uncertainty and low demand visibility the Board has decided it is prudent to preserve cash and will not be declaring an interim dividend for 2020. The Board will keep future dividends under review and will restart payments when it is appropriate to do so.
Strategic progress
Over the last three years significant progress has been made transforming our portfolio and re-positioning Elementis as a premium performance additives company with advantaged positions in growing markets. Personal Care, Coatings and Talc represent over 80% of Elementis' earnings, and in each we see clear opportunities to grow.
Whilst COVID-19 represents an immediate headwind that has occupied significant management time and attention, our strategic pillars of Innovation, Growth and Efficiency remain and execution against our priorities in these areas will deliver our medium term performance objectives of:
-An adjusted operating profit margin of 17%
-Cash conversion of 90% plus
-Financial leverage of under 1.5x net debt/EBITDA
1.Innovation
Innovation is at the heart of what we do. We are a global leader in performance-driven additives that create innovative solutions for our customers. While COVID-19 has reduced the physical time spent in laboratories with our customers, we have continued to deliver innovation excellence via virtual interaction. Starting with our established customer relationships and leveraging digital platforms, we have delivered virtual training and technical workshops to over 7,000 employees at 400 customers in 60 countries around the world. This innovation support has allowed our customers to grow and develop their industry and application knowledge even while working remotely.
We deliver distinctive technologies to our customers. This means solutions that improve performance and lower operational costs, while at the same time enhancing our customers' sustainability credentials. At the end of June 2020, 45% of our product portfolio delivered against all of these priorities, stable on 2019 and with room to grow towards our target of 60% by 2025.
The improved penetration of our differentiated technologies has been particularly encouraging in Coatings, where our growth platforms rose 3% in the first half 2020. New castor wax based organic thixatropes (THIXATROL® AS80) gained share in the hybrid adhesives and sealants market through delivery of improved adhesion, lower temperature activation and sustainability benefits. Likewise in premium decorative coatings, our new RHEOLATE® HX series of thickeners is delivering enhanced stain resistance and application benefits, in preservative free and powder formats. For customers this means better performance, compliance with new regulations and improved sustainability claims.
While differentiated innovation is crucial, we also want to deliver more new products. In the first half of 2020, revenue from new and protected products was 11%, broadly in line with 2019. Our goal is for 15% of our sales to come from new or protected products, and our innovation pipeline is well positioned to deliver this. In the second half of 2020, we plan to launch 21 new products delivering solutions to customers in natural personal care ingredients, waterborne industrial coatings and recyclable food packaging.
2. Growth
Today over 80% of Elementis' earnings are generated by Personal Care, Coatings and Talc. The value chains across these segments are similar, transforming advantaged and long life hectorite and talc resources into high value additives via distinctive processing formulation expertise, as well as consistent product quality. While the first six months of 2020 has presented challenges for the Group, we have continued to execute against our growth objectives which will set us up for long term success.
In Personal Care, there are major opportunities for our hectorite clay based ingredients. Despite strong recent growth in Asia, with over 20% average annual growth in the last four years, we remain relatively underweight with the region representing around 20% of our global sales. To drive further progress we have recently invested in new sales and marketing personnel, and are continuing to build our dedicated technical support for the region from Shanghai. Skin care is a new and attractive market for our natural solutions, and our recently launched BENTONE® LUXE and HYDROCLAYTM ingredients continue to receive encouraging customer feedback and exhibit strong early sales momentum.
In Talc, we are the second largest global player and with a specific focus on high value industrial applications. While automotive plant shutdowns have represented a material short term headwind in the first six months of 2020, there are clear medium term growth opportunities for Talc supported by structural mega-trends. Vehicle light weighting, emissions regulations and reduced single use plastic consumption are expected to drive strong sustainable demand for our Talc. In the first half of 2020, we captured new business opportunities in long life plastics across Asia and rolled out new products such as barrier coatings for recyclable food packaging; this will drive future value creation. We have also made progress towards our goal of $20-25m revenue synergies. Through leveraging Elementis' global marketing, distribution and innovation capabilities, our sales in China grew over 20% in the first half and we won new business in South America with a leading global Coatings company.
Finally, our Coatings transformation programme has created an integrated, simpler and more customer centric organisation with operating margins around 16%, despite the COVID-19 related slowdown. Key global accounts continue to appreciate our reliability and innovation led approach, and our Coatings organisation has a strong new business focus, with $10m of opportunities captured in the first half, and more in the pipeline. This has been enabled by a differentiated product portfolio focused on high margin, structural growth opportunities in premium decorative, waterborne industrial additives and hybrid adhesives and sealants. Coatings is well positioned for future success.
3. Efficiency
We know where and how we want to grow, and our Efficiency programme is focused on ensuring we grow at the lowest operating cost. While we have identified and taken actions to deliver $10m of temporary short term savings from our COVID-19 response actions in 2020, we have also made good progress to accelerate the delivery of $15m of medium term efficiency savings.
In first half of 2020 we successfully embedded our organisational redesign. This process started with our transformed business portfolio and an analysis to determine whether our existing global structure was appropriate. The result is an alignment of job levels on a global basis and bigger reporting spans with fewer layers, promoting faster decision making and a more efficient execution. These actions, taken at the end of 2019, have resulted in a lower headcount of approximately 100 full-time employees and are delivering $5m of savings in 2020.
A further $10m of efficiency gains are anticipated to come from our global supply chain, through our new Indian manufacturing facility, volume reallocation across our asset footprint, efficiency gains in Chromium and procurement improvements. Although the startup of the India plant has been delayed by six months to H1 2021 due to the COVID-19 related shutdown of the Indian chemicals industry, given the scale of the opportunity we see throughout our supply chain the delivery of $10m savings is now anticipated to arrive one year early in 2021.
As a result of recent portfolio changes we have reduced our total capital expenditure and increased the proportion allocated to productivity and growth, while spending appropriately to ensure ongoing safety improvements and reliability. To ensure we leverage every opportunity to reduce our environmental footprint, sustainability is at the forefront of all investment decisions. In India, our new site is based on a closed loop production system, meaning we are as efficient and low environmental impact as possible. The ultimate goal is for our operations to be carbon neutral. This is appropriate from an efficiency and an environmental perspective, and our new 2030 sustainability targets are a step towards this.
Another key enabler of our efficiency and simplification drive is our digital implementation programme. Whilst 2019 witnessed significant improvement in our ability to identify new customers, we have made progress on how we optimise the customer journey. Our website and digital tool-set are e-commerce ready and in the second half of 2020 we will roll out integrated systems to deliver seamless online lead-to order fulfilments cycles for customers. This will result in an improved customer experience, more efficient responses and it will help us capture our best growth opportunities. Last, it should be noted that our ability to remotely manage Elementis through COVID-19 has been underpinned by the digital investments made over the past 5 years.
Outlook
Looking forward we see significant potential for Elementis. We have a clear, focused strategy and will pursue our key growth and efficiency initiatives, and continue to innovate for high margins and distinctiveness.
Moving into the second half of the year, while near term demand visibility remains limited and business uncertainty elevated (see page 12), we have seen a modest sequential demand improvement from the trough in May as countries begin to emerge from lockdown and industrial production improves. Nonetheless, we are focused on what we can control, namely tight cost and cash management. In 2020, the delivery of $15m of cost and $7m of working capital savings, will optimise earnings and help to significantly reduce our net debt at the year end.
Notes:
Where we refer to adjusted performance measures (e.g. adjusted operating profit), see note 5.
Where we refer to constant currency, see Finance report.
*Adjusted for constant currency and M&A. See Finance report.
**Excluding the impact of IFRS 16
Finance report
Effect of
Increase/
Revenue
exchange
Impact of
(decrease)
Revenue
Revenue for the six months
2019
rates
M&A**
2020
2020
ended 30 June
$m
$m
$m
$m
$m
Personal Care
100.7
(1.5)
(9.7)
0.3
89.8
Coatings
163.5
(3.7)
-
(11.6)
148.2
Talc
74.5
(1.6)
-
(12.0)
60.9
Chromium
88.3
-
-
(10.8)
77.5
Energy
27.9
(0.1)
-
(13.8)
14.0
Inter-segment
(5.2)
-
-
1.3
(3.9)
Revenue
449.7
(6.9)
(9.7)
(46.6)
386.5
Adjusted
Adjusted
operating
Effect of
operating
profit*
exchange
Impact of
Decrease
profit*
Adjusted operating profit
2019
rates
M&A**
2020
2020
for the six months ended 30 June
$m
$m
$m
$m
$m
Personal Care
23.2
(0.5)
(0.2)
(2.4)
20.1
Coatings
23.9
(0.7)
-
(0.2)
23.0
Talc
10.4
(0.6)
-
(3.6)
6.2
Chromium
11.2
-
-
(8.1)
3.1
Energy
3.1
-
-
(5.5)
(2.4)
Central costs
(7.7)
0.3
-
(0.6)
(8.0)
Adjusted operating profit
64.1
(1.5)
(0.2)
(20.4)
42.0
*See note 5
**M&A includes the sale of a non core gypsum plant (part of the Dental business)
Group results
Group revenue for the first six months of 2020 was $386.5m, compared to $449.7m in the same period last year, a decrease of $63.2m (14.1%), or 10.8% excluding currency and M&A movements. The decrease in revenue is principally due to the impact of COVID-19 on second quarter volumes across industrial end markets and the sale of a non core gypsum plant (part of the Dental business).
Group adjusted operating profit was $42.0m, compared to $64.1m in the same period last year, a decrease of 34.5%, and 32.9% excluding currency movements with lower revenues principally due to COVID-19 partially offset by cost savings. Reported operating profit declined from $63.8m in the prior year period to a loss of $35.2m as a result of lower underlying earnings and $60.3m of non-cash goodwill impairments in the Energy and Talc segments. The goodwill impairments are discussed in more detail in adjusting items.
Central costs
Central costs are costs that are not identifiable as expenses of a particular business and comprise the global corporate offices in the UK and US which include the Board of Directors, executive and senior management. The increase in central costs for the first half of 2020 was primarily due to an increase in the holiday accrual as a result of COVID-19.
Adjusting items
In calculating the profitability measures by which management assesses the performance of the Group a number of items are excluded from operating profit as reported in accordance with IFRS. The Board believes that the adjusted measures assist shareholders in better understanding the underlying performance of the business.
2020
2019
2019
Six months
Six months
Year
ended
ended
ended
30 June
30 June
31 December
$m
$m
$m
Charge/(credit)
Adjusting items:
Restructuring
-
-
5.1
Business transformation
2.2
-
2.5
Environmental provisions
4.0
-
4.9
Business disposal activities
1.1
-
-
Amortisation of intangibles arising on acquisition
9.6
9.3
18.6
Impairment of goodwill
-
-
60.3
Release of contingent consideration
-
(9.0)
(9.0)
Total charge to operating profit
77.2
0.3
22.1
Sale of Dental plant
-
-
9.0
Charges to finance costs:
Mark to market of derivatives
2.6
-
1.4
Currency hedge due to dividend cancellation
1.8
-
-
Tax credit in relation to adjusting items
(10.5)
(2.3)
(6.1)
Total adjusting items
71.1
(2.0)
26.4
In the first half of 2020, $77.2m of charges to operating profit were classified as adjusting items. Of these items, $60.3m relates to the impairment of goodwill held in the Energy and Talc businesses. As a result of the currently low oil price and the expected ongoing challenging outlook for the Energy sector, in particular the North American shale market, all of the remaining goodwill held in the Energy operating segment has been impaired ($26.9m). In Talc, while the business fundamentals are unchanged and the medium term growth outlook attractive, a goodwill impairment of $33.4m has been recognised due to a higher weighted average cost of capital and the significant impact of COVID-19 on wider industrial activity and the near term profitability of the business.
Of the remaining adjusting items charged to operating profit $9.6m relates to the amortisation of intangibles arising on acquisitions. Business transformation costs of $2.2m relate to previously initiated programmes to optimise our supply chain, manufacturing footprint and organisational structure. Costs incurred as part of business disposal activities amounted to $1.1m, whilst charges of $3.1m and $0.9m relate to the impact of a change in discount rates on the environmental provision and additional remediation work identified.
The charges to finance costs include $2.6m for movements in market to market valuation of financial instruments which are not in hedging relationships and $1.8m due to currency hedge cancellations following the suspension of the 2019 final ordinary dividend.
An explanation of other adjusting items relating to the previous period can be found within the Finance report of the 2019 Annual report and accounts.
Other expenses
Other expenses are administration costs incurred and paid by the Group's pension schemes, which relate primarily to former employees of legacy businesses and were $0.9m in the period compared to $1.0m in the previous year.
Net finance costs
30 June
30 June
2020
2019
$m
$m
Finance income
0.3
0.3
Finance cost of borrowings
(11.5)
(12.7)
(11.2)
(12.4)
Net pension finance expense
(0.3)
(0.3)
Unwind of discount on provisions
(0.6)
(0.6)
Fair value movement on derivatives
(2.6)
-
Dividend currency hedge cancellation
(1.8)
-
Interest on lease liabilities
(0.8)
(0.9)
Net finance costs
(17.3)
(14.2)
Net finance costs for the first six months of the year of $17.3m were $3.1m higher than the same period last year. Within this total, net interest costs were $1.2m lower at $11.2m due mainly to the lower average levels of borrowing across the period. Net pension finance costs, the unwind of discount on provisions and interest on lease liabilities in the period remained in line with the previous year. The fair value movement on derivatives which are not in hedging relationships is charged to finance costs along with the charge incurred on reversal of the currency hedge following the cancellation of the 2019 final ordinary dividend.
Tax
The Group reports an adjusted tax charge for the first half of 2020 of $8.0m (2019: $10.7m); giving rise to an adjusted
effective tax rate of 28.5% (2019: 21.9%). The adjusted effective tax rate is higher than the prior year due to the one-off impact of withholding taxes incurred on the repatriation of profits from China, combined with downward pressure on the Group's earnings as a result of COVID-19.
Tax on adjusting items for the first half of 2020 amounts to a credit of $10.5m (2019: $2.3m); resulting in a total statutory tax credit for the period of $2.5m (2019 charge of $8.4m) and a reported effective tax rate of 4.6% (2019: 17.3%).
For the full year 2020, we currently forecast an adjusted effective tax rate of around 26%. Our medium term P&L tax rate guidance remains around 22%.
Earnings per share
Statutory basic loss per share was 8.8 cents for the period compared to basic earnings per share of 6.9 cents in the prior period.
Basic adjusted and diluted adjusted earnings per share for the first half of 2020, calculated on the adjusted earnings of $20.2m (2019: $38.2m), were 3.5 cents and 3.5 cents respectively compared to 6.6 cents and 6.5 cents for the same period last year.
Note 9 provides disclosure of earnings per share calculations both including and excluding the effects of adjusting items and the potential dilutive effects of outstanding and exercisable options.
Adjusted cash flow
Cash flow is summarised below:
30 June
30 June
2020
2019
$m
$m
Profit before interest, tax, depreciation and amortisation (Adjusted EBITDA)*
67.2
85.4
Change in working capital
(23.5)
1.0
Capital expenditure
(15.5)
(23.1)
Other
(0.3)
(1.6)
Operating cash flow
27.9
61.7
Pension payments
0.3
(0.3)
Interest and tax
(15.6)
(11.7)
Adjusting items
(7.0)
(28.7)
Payment of lease liabilities
(3.0)
-
Free cash flow
2.6
21.0
Dividends
-
(32.8)
Currency fluctuations
(1.6)
1.3
Decrease/(increase) in net debt
1.0
(10.5)
Net debt at start of period
(454.2)
(498.1)
Net debt as at end of period
(453.2)
(508.6)
* See unaudited pro forma information
Net debt in the first six months of $453.2m, was broadly stable on the 2019 year end position of $454.2m, and down $55.4m on 30 June 2019. Operating cash flow in the period fell by $33.8m to $27.9m with lower earnings and a working capital outflow partially offset by reduced capital expenditure.
Capital expenditure in the period was $15.5m, $7.6m lower than the previous year. Capital spending for the year as a whole is expected to be approximately $45m (2019: $47m), with just over 50% of the spend allocated to growth and productivity projects including our plant in India, a new ball mill in Vuonos and the automation of control systems at our hectorite mine in Newberry.
There were no pension deficit payments in the period (2019: nil), a result of the September 2017 triennial review of the UK pension scheme concluding that no cash top up payments are required from Elementis until at least 2021. Interest and tax payments in the period were $3.9m higher than the previous year, mostly due to one off US tax refunds received in the first half of 2019.
Dividend payments were zero in the first six months of 2020, compared to $32.8m in the prior year period, following the Board's decision to suspend the 2019 final dividend in light of the macroeconomic uncertainties associated with COVID-19 and a desire to preserve cash.
Overall the Group had a net debt position on its balance sheet of $453.2m, representing a net debt to EBITDA ratio (pre IFRS 16) of 3.1x (2.7x at December 2019), and access to significant liquidity, with over $300m immediately available through cash on the balance sheet (c.$100m) and undrawn credit facilities (c.$200m). Following the 12 month covenant relaxation agreed with our lenders in March 2020, the current provision in our banking arrangements is for the net debt/EBITDA covenant to step down from 3.75x at present to 3.25x in June 2021. Under all potential future trading scenarios our assessment shows the Group has sufficient liquidity in place, assuming continued access to facilities and ability to operate within its financial covenants. However, under a possible but not probable, most severe downside scenario, the Group is not expected to remain within its financial covenants throughout the going concern period without an extension of the current covenant relaxation into future periods. Under this downside scenario, which arises due to risks over levels of future revenue, the Group will have to secure an extension of the current Net Debt/EBITDA covenant relaxation for the testing date of 30 June 2021. The directors consider this possibility to constitute a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern. Further details are in note 3 to the condensed financial statements. The Group remains highly profitable (excluding non-cash adjusting items) with strong market positions and continues to engage constructively with its lending banks.
Working capital
30 June
30 June
31 December
Working capital days
2020
2019
2019
Inventory
105
106
97
Debtors
50
44
39
Creditors
79
63
66
Average working capital to sales (%)
23.2
22.2
22.4
Total working capital for the Group was $23.5m lower than at the end of June 2019. The primary driver of this decrease is 14% lower reported sales in the first half of 2020 compared to the prior year period, and subsequently lower trade receivables. Inventory days remained broadly stable at 105 as a result of active stock management during a period of relatively low sales. Debtor days increased from 44 to 50 days, reflective of a tougher working capital environment as many customers sought to further optimise their own working capital positions. Creditor days increased to 79 days from 63 in June 2019 due to the timing of raw material purchases and payments.
Balance sheet
30 June
30 June
31 December
2020
2019
2019
$m
$m
$m
Property, plant and equipment
502.4
522.2
513.6
Other net assets
784.2
903.9
846.8
Net debt
(453.2)
(508.6)
(454.2)
Equity
833.4
917.5
906.2
Property, plant and equipment decreased by $19.8m compared to the value at 30 June 2019 as a result of depreciation of $70.4m for the 12 months running ahead of capital expenditure of $39.7m. Other net assets decreased by $119.7m as a result of the $60.3m impairment of goodwill held in the Energy and Talc businesses, $18.9m amortisation of acquired intangibles, a reduction in working capital of $23.5m, the sale of a non-core gypsum plant ($7.8m) and small movements in lease liabilities and deferred tax assets.
Equity decreased by $84.1m as a result of a statutory loss in the intervening period of $44.7m, dividends of $16.5m and $18.9m due to exchange rates. The remainder of the movement relates primarily to actuarial movements on pensions and share based payment provisions.
The main dollar currency exchange rates as at 30 June 2020 and average rates in the period were:
2020
2020
2019
2019
30 June
Average
30 June
Average
Sterling
0.81
0.79
0.79
0.77
Euro
0.89
0.91
0.88
0.89
Pensions and post retirement plans
UK
US
Other
Total
$m
$m
$m
$m
Movement in net deficit
Net surplus/(deficit) in schemes at 1 January 2020
7.4
(15.9)
(8.6)
(17.1)
Current service cost
(0.3)
(0.5)
(0.1)
(0.9)
Contributions
0.1
0.3
0.2
0.6
Administration costs
(0.6)
(0.2)
(0.1)
(0.9)
Net interest expense
-
(0.2)
(0.1)
(0.3)
Actuarial (loss)/gain
13.0
(10.1)
-
2.9
Currency translation difference
(0.2)
-
-
(0.2)
Net surplus/(deficit) in schemes at 30 June 2020
19.4
(26.6)
(8.7)
(15.9)
During the period the deficit, under IAS 19, on the Group's pension and post-retirement medical plans improved by $1.2m to $15.9m. During the first six months of 2020 the UK scheme had an annualised return of 14% (2019: 16%), liabilities increased by 3% (2019: increase by 8%) and the net surplus increased by $12.0m. This movement was driven by the strong scheme asset performance more than offsetting an increase in liabilities due a fall in the discount rate over the period. Within the US schemes the net deficit increased by $10.7m mainly due to a decrease in the discount rate. Contributions in the period totalled $0.6m (2019: $0.8m), remaining low following the funding agreement reached with the UK Trustees after the September 2017 triennial valuation under which top up contributions are no longer required for a period of at least three years.
Government assistance
The Group has taken advantage of limited assistance provided by governments such as the NOW 2.0 wage subsidy programme in the Netherlands and the CARES act in the US to defer payroll tax payments. The support from these schemes has not had a material impact on the results.
https://www.elementis.com/sites/default/files/2020-07/Elementis%202020%20Interim%20Results-Announcement.pdf
Essar Oil (UK) Ltd.
WHO WE ARE
Essar Oil (UK) Limited (Essar Oil UK) owns and operates the Stanlow Manufacturing Complex, located on the south side of the Mersey Estuary near Liverpool. Stanlow plays a key part in the national economy, producing over 16% of the UK's transport fuels.
ONE OF THE LEADING PLAYERS IN THE UK'S OIL AND CHEMICAL INDUSTRY
This equates to an annual production of over 4.4 billion litres of diesel, 3 billion litres of petrol and 2 billion litres of jet fuel. Our process units optimise our output, with over 9 million tonnes of crude oil and feed-stock processed each year, making us one of the biggest refineries in the country.
In simple terms, we buy crude oil and process it into vital fuels such as petrol, diesel and jet fuel, together with other chemical products.
We are a major supplier in North-West England with customers including most of the major retail brands operated by the international oil companies and the hypermarkets, together with Manchester Airport and the region's trains and buses. This effectively means that whatever mode of transport you use in the region, it is likely it could be running on fuel provided by our refinery.
Stanlow enjoys a number of advantages such as its close location to Liverpool and Manchester, impressive scale and Europe's largest residue cat cracker. Most importantly, we employ over 900 highly-trained and loyal staff who are at the heart of everything we do.
At Essar Oil UK, we have an embedded safety culture, technically challenging work and provide some of the best training available in the industry. As one of the leading players in the oil and chemical industry, we are constantly looking to improve every aspect of our business.
Essar Global Fund
Essar Oil UK is a portfolio business of Essar Global Fund Limited (EGFL). EGFL is a global investor in a number of world-class assets diversified across the core sectors of Energy, Infrastructure (comprising Ports and EPC businesses), Metals & Mining, and Services (Shipping, IT and Retail businesses). EGFL invests long-term capital into the portfolio companies and holds near 100% stake in all its investments.
The portfolio companies have aggregate revenues of about USD 12 billion and employ over 8,000 people. EGFL identifies opportunities, builds and nurtures world-class assets, monetises then and reinvesting, thereby constantly creating value for all stakeholders.
https://www.essaroil.co.uk/about-us/who-we-are/
Essar Oil UK is a wholly owned subsidiary of Essar Energy Limited, with investments in energy (oil, gas and power).
Total annual revenues amount to over US$35 billion, with the group's portfolio of companies employing over 60,000 people across 29 countries. Essar purchased Stanlow in August 2011 and continues to make significant capital investments in the site.
https://www.essaroil.co.uk/about-us/financials/
Essar Ports Posts Record Cargo Growth Of 20.07% In H1FY20
Company clocks 27.29 MT throughput in H1FY20, with an overall growth of 20.07%
Third-party cargo volumes increase by 183.21% as compared to the volumes in H1 FY19
Third-party cargo share increases to 25.8% in total cargo volumes
Mumbai, 22 October 2019: Essar's Ports business, which operates four terminals on the east and west coasts of India, has registered a 20.07% growth in cargo volumes with a throughput of 27.29 Million Tonnes (MT) in the first half of FY2019-20.
The growth has been driven by a 183.21% increase in third-party cargo compared to that in the corresponding period in the previous financial year. Cargo from captive customers grew by 6%.
H1FY20 (in MT)
H1FY19 (in MT)
Growth
Overall cargo
27.29
22.73
20.07%
Captive cargo
20.24
19.10
6.00%
Third-party cargo
7.05
2.49
183.21%
Speaking on the performance, Mr Rajiv Agarwal, MD & CEO, Essar Ports Ltd, said: "Significant boost in third-party business has been the key driver for our growth in overall volumes. Alongside this, our focus on driving operational efficiencies and minimising operating costs has helped in recording strong growth. Essar Ports has consistently surpassed the average growth rate of the sector, which is showing signs of heightened economic activity."
Terminal-wise performance
Hazira
The 50 MTPA terminal has had the following highlights:
Cargo handling of 14.17 MT with 3.24% growth compared to the same period last year
46% growth in third-party business over the numbers in H1FY19
Enhanced third-party cargo share to 16.16%
H1FY20 (in MT)
H1FY19 (in MT)
Growth
Overall cargo
14.17
13.72
3.24%
Captive cargo
11.88
11.88
-
Third-party cargo
2.29
1.84
24.46%
Vizag
The 24 MTPA Essar Vizag Terminal (EVTL), India's largest iron ore handling terminal located on the outer harbour of Visakhapatnam Port, has had the following highlights:
Cargo handling of 91 MT with 52.22% overall growth compared to same period last year
17% growth in anchor customer business
76% growth in third-party business over the numbers in H1 FY19
Enhanced third-party cargo share to 41.62%
H1FY20 (in MT)
H1FY19 (in MT)
Growth
Overall cargo
5.91
3.88
52.22%
Captive cargo
3.45
3.22
7.17%
Third-party cargo
2.46
0.65
277.76%
Salaya
The 20 MTPA Essar Bulk Terminal Salaya (EBTSL), deepest draft facility of Saurashtra region, has clocked a cargo throughput of 3.22 MT in the first half of FY20.
H1FY20 (in MT)
H1FY19 (in MT)
Growth
Overall cargo
3.22
1.13
184.96%
Captive cargo
0.91
-
-
Third-party cargo
2.31
1.13
104.11%
Paradip
The 16 MTPA Essar Bulk Terminal Paradip (EBTPL), in Paradip Port, has clocked a cargo throughput of 4 MT in the first half of FY20.
H1FY20 (in MT)
H1FY19 (in MT)
Growth
Overall cargo
4.0
4.0
-
Captive cargo
4.0
4.0
-
Third-party cargo
-
-
-
About Essar Ports
Essar Ports is one of India's largest private sector port and terminal developers and operators. It has invested INR 11,000 crore in developing world-class terminals in three Indian states. Its current operations span four terminals with a combined capacity of 110 MTPA, which is roughly 5 percent of India's port capacity. The Company is a leader in the non-containerised bulk cargo space. Having clocked a throughput of 40 MT in FY19, Essar Ports is expecting to handle over 60 MT in the current financial year.
All Essar Ports terminals are equipped with advanced cargo handling infrastructure and are well poised to double capacity in the near to medium term. The Company is working in tandem with the Government of India to meet its ambitious target of developing 3,130 MT of port capacity in the country by 2020.
Outside India, Essar's port assets include a liquid terminal in the UK and a coal berth in the development stage at Mozambique's Beira port.
https://www.essar.com/essar-ports-posts-record-cargo-growth-of-20-07-in-h1fy20/
Exxon Mobil Corporation (NYSE: XOM)
Who we are
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world's growing energy needs. We hold an industry-leading inventory of resources and are one of the world's largest integrated refiners, marketers of petroleum products and chemical manufacturers.
Our history in Europe
Over the last 135 years, ExxonMobil has evolved from a regional marketer of kerosene in the U.S. to the largest publicly traded petroleum and petrochemical enterprise in the world.
European operations
We explore for, produce and sell crude oil, natural gas and petroleum products, and hold an industry-leading inventory of global oil and gas resources. We are the world's largest refiner and marketer of petroleum products, and our chemical company ranks among the world's largest.
Source:
https://www.exxonmobil.eu/en-eu/ExxonMobil-in-Europe/Who-we-are
Homepage:
https://www.exxonmobil.eu
ExxonMobil reports results for third quarter 2020
30/10/2020
IRVING, Texas - October 30, 2020 - Exxon Mobil Corporation today announced an estimated third quarter 2020 loss of $680 million, or $0.15 per share assuming dilution. Third quarter capital and exploration expenditures were $4.1 billion, bringing year-to-date spending to $16.6 billion, more than $6 billion lower than the prior year period.
ExxonMobil reports results for third quarter 2020
Third quarter results improved by $400 million from the second quarter, primarily driven by early stages of demand recovery; excluding identified items, results improved by $2.2 billion
On track to exceed reduction targets for 2020 capital and cash expenses; further reductions anticipated in 2021
Continued Guyana progress with third major deepwater development approval and two new discoveries
Third Quarter
Second Quarter
First Nine Months
2020
2019
2020
2020
2019
Results Summary (Dollars in millions, except per share data)
Earnings/(Loss) (U.S. GAAP)
(680)
3,170
(1,080)
(2,370)
8,650
Earnings/(Loss) Per Common Share
Assuming Dilution
(0.15)
0.75
(0.26)
(0.55)
2.03
Identified Items Per Common Share
Assuming Dilution
0.03
0.07
0.44
(0.20)
0.19
Earnings/(Loss) Excluding Identified Items Per Common Share Assuming Dilution
(0.18)
0.68
(0.70)
(0.35)
1.84
Capital and Exploration Expenditures
4,133
7,719
5,327
16,603
22,688
Oil-equivalent production was 3.7 million barrels per day, up 1 percent from the second quarter of 2020. Production continued to reflect COVID-19 demand impacts, including economic and government mandated curtailments. Excluding entitlement effects, divestments, and government mandates, liquids production increased 2 percent, while natural gas volumes decreased 1 percent.
"We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend," said Darren W. Woods, chairman and chief executive officer. "We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle."
The company's preliminary 2021 capital program, which will be reviewed by the board of directors in the fourth quarter, is expected to be in the range of $16 billion to $19 billion, a reduction from the 2020 target of $23 billion announced in April. The company expects to identify further structural efficiencies as it continues previously announced country-by-country reviews.
Third Quarter 2020 Business Highlights
Upstream
Average third quarter realizations for crude oil improved significantly, as market prices increased following the second quarter's challenging environment. Natural gas realizations declined, primarily due to a lag in crude-linked LNG contract pricing.
Improved market conditions enabled full recovery of production impacted by economic curtailments. Government mandated curtailments negatively impacted third quarter results and are anticipated to continue in the fourth quarter.
Downstream
Supply chain optimization, higher product sales due to increased demand, and higher marketing margins more than offset lower industry fuels margins driven by market oversupply and high product inventory levels.
Third quarter saw the best reliability and process performance in the last 10 years, while average refinery utilization increased about 6 percent from the second quarter on demand recovery. Refining capacity sparing decreased to about 25 percent.
Chemical
Chemical sales volumes were higher than second quarter, benefiting from resilient packaging demand and recovering automotive and construction markets. Chemical margins were negatively impacted by higher feed costs.
The company's Corpus Christi chemical complex joint venture is approximately 80 percent complete, with start-up activities expected to commence in the fourth quarter of 2021.
Strengthening the Portfolio
ExxonMobil announced that it has funded the Payara development offshore Guyana, following government and regulatory approvals. The third major project in the Stabroek Block will have the capacity to produce up to 220,000 oil-equivalent barrels per day after expected startup in 2024. The company also made its 17th and 18th discoveries at the Yellowtail-2 and Redtail-1 wells, respectively, increasing the estimated recoverable resource to nearly 9 billion oil-equivalent barrels on the Stabroek block.
During the quarter, production volumes in the Permian averaged 401,000 oil-equivalent barrels per day which included full recovery of volumes curtailed in the prior quarter. Full year 2020 production is anticipated to be approximately 360,000 oil-equivalent barrels per day. Focus remains on lowering overall development costs through efficiency gains and technology applications. Compared to 2019, drilling and completion costs decreased more than 20 percent, while drilling rates (lateral feet per day) and fracturing rates (stages per day) both increased more than 30 percent. Rig count reductions continue, with 10-15 rigs expected to be operating by year-end.
ExxonMobil continues to improve its industry-leading development opportunities, as illustrated by the growth of the recoverable resource base in Guyana to nearly 9 billion barrels of oil equivalent, and other high-value assets in the U.S. Permian Basin, Mozambique, Papua New Guinea and Brazil. Given the high quality opportunities in ExxonMobil's portfolio and the constraints of the current market environment, the corporation is assessing its full portfolio to prioritize assets with the highest value potential within its broad range of available opportunities. This effort includes an ongoing re-assessment of North American dry gas assets currently included in the corporation's development plan. Depending on the outcome of the planning process, including in particular any significant future changes to the corporation's current development plans for its dry gas portfolio, long-lived assets with carrying values of approximately $25 billion to $30 billion could be at risk for significant impairment. If these assets remain in our long-term development plan, similar to previous years, it is unlikely the assets would be subject to material impairment. The company expects to complete this assessment in the fourth quarter.
Disciplined Investing and Cost Management
ExxonMobil made significant progress during the quarter on previously announced capital and cash operating expense reductions. Planned reductions to the 2020 capital spending program, from $33 billion to $23 billion, are ahead of schedule, reflecting increased efficiencies, lower market prices, and slower project pace. An expected decrease in cash operating expenses of about 15 percent is also ahead of schedule, capturing savings from increased efficiencies, reduced activity, and lower energy costs and volumes.
Advancing Innovative Technologies and Products
The company continued to progress work on scaling carbon-capture technologies aimed at reducing emissions. Following 12 months of technical evaluation, ExxonMobil and Global Thermostat announced an expanded joint development agreement to advance and bring to scale breakthrough technology that removes carbon dioxide directly from the atmosphere. ExxonMobil also announced, in collaboration with the University of California, Berkeley and the Lawrence Berkeley National Laboratory, the discovery of a new material that could capture more than 90 percent of carbon dioxide from industrial sources, such as natural gas-fired power plants.
ExxonMobil built on the company's longstanding efforts to develop and deliver products that help meet society's energy needs while reducing environmental impacts. These efforts included an agreement with Global Clean Energy Holdings to purchase 2.5 million barrels of renewable diesel per year for five years from a Bakersfield, CA biorefinery starting in 2022. Based on analysis of California Air Resources Board (CARB) data, renewable diesel from various non-petroleum feedstocks can provide life-cycle greenhouse gas emissions reductions of approximately 40 percent to 80 percent compared to petroleum-based diesel.
https://corporate.exxonmobil.com/News/Newsroom/News-releases/2020/1030_ExxonMobil-reports-results-for-third-quarter-2020
INEOS
OUR PROFILE
Introduction
INEOS is a young company. It has grown to become a leading chemical company with sales today of around $60 billion.
Most of our employees have spent all their working lives in the chemical or oil industry. They arrived at INEOS from companies such as BASF, Bayer, Borealis, BP, Degussa, Dow, Enichem, Hoechst, ICI, Norsk Hydro and Solvay. We continue unashamedly to extract best practices from this very impressive group of people in all spheres of activity.
We believe INEOS is a refreshing place to work and we are prepared to embrace new approaches to business. Safety is our first priority. We are highly focused on growth and EBITDA, and see the "customer as king".
PRODUCT OVERVIEW
INEOS Products
INEOS products make a significant contribution to saving life, improving health and enhancing standards of living for people around the world. Our businesses produce the raw materials that are essential in the manufacture of a wide variety of goods: from paints to plastics, textiles to technology, medicines to mobile phones - chemicals manufactured by INEOS enhance almost every aspect of modern life.
Solvents used in the production of insulin and antibiotics.
Efficient and effective biofuels to improve the sustainability of modern transport.
Chlorine to purify drinking water.
Synthetic oils that help to reduce greenhouse gas emissions from road transportation.
Modern plastics to package, protect and preserve food & drink.
Materials to insulate houses, offices, electrical and telecommunications cables.
Products transformed into automotive parts, used in medical applications, mobile phones, and construction.
http://www.ineos.com/company/
INEOS Q3 2020 Trading Statement INEOS Group Holdings S.A
19/10/2020
INEOS Group Holdings S.A. ('INEOS' or the 'Group') announces its trading performance for the third quarter of 2020.
Based on unaudited management information INEOS reports that EBITDA for the third quarter of 2020 was [euro]431 million, compared to [euro]514 million for Q3, 2019 and [euro]260 million for Q2, 2020.
The chemical industry is deemed as essential, critical infrastructure by governments across the world. All of the Group's sites have continued to operate fully during the current COVID-19 virus pandemic and supply chains have operated without significant disruption. The second quarter of 2020 was the low point of the current crisis. Since then countries across the world have opened up their economies after lockdown and market conditions have gradually improved during the third quarter. The automotive and durables sectors are still weak, but are now slowly improving, and there are encouraging signs from the construction sector. Overall core market conditions for all of the businesses are now improving from the lows seen in the second quarter.
O&P North America reported EBITDA of [euro]123 million compared to [euro]215 million in Q3, 2019. Ethylene markets remained stable, although margins reduced in the quarter due to lower spreads over raw material costs and the impact of increased industry capacity on supply demand balances. Polymer demand was generally solid and continued to strengthen during the quarter, aided by strong consumables demand and improving automotive and durables markets. Margins remained relatively weak as the business continued to recover from the crisis.
O&P Europe reported EBITDA of [euro]135 million compared to [euro]159 million in Q3, 2019. Demand in the ethylene market has remained stable in the quarter, although demand for butadiene was weak as a result of the general slowdown in the automotive sector. Margins were lower due to weak demand, particularly for butadiene and benzene, and reduced prices in the quarter. European polymer demand was relatively balanced, with strong food and packaging markets and gradual improvements in the construction and automotive sectors.
Chemical Intermediates reported EBITDA of [euro]173 million compared to [euro]140 million in Q3, 2019. All of the businesses in the Chemical Intermediates segment saw an improvement in performance as the quarter progressed. The Oligomers business had particular strength in co-monomers and markets for PAO products improved. Demand for the Oxide business was stable, with higher volumes for glycol products due to a tighter supply demand balance. Margins were weaker though, particularly in the automotive and construction sectors. The markets for the Nitriles business were solid, with higher demand in to the ABS sector. Volumes for the Phenol business were stable in the period and margins improved due to higher returns on acetone.
The Group has implemented a number of measures to conserve cash during this uncertain period. The Group has implemented policies to control all discretionary fixed costs. The Group has reviewed all capital projects in each of the businesses and taken decisions to defer or reduce discretionary expenditure and scheduled turnarounds where it is safe to do so. In addition, the Group has applied for corporate tax refunds and deferrals where available.
Net debt was approximately [euro]5.9 billion at the end of September 2020. Cash balances at the end of the quarter were [euro]877 million, and availability under undrawn working capital facilities was [euro]236 million. Net debt leverage was approximately 3.7 times replacement cost EBITDA (excluding inventory holdings losses) and 4.0 times historical cost EBITDA as at the end of September 2020.
https://www.ineos.com/news/ineos-group/q3-2020-trading-statement/
Innovia Films
CCL
CCL
is the world's largest converter of pressure sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, healthcare and chemical, consumer electronic device and automotive markets. Extruded and laminated plastic tubes, aluminum aerosols and specialty bottles, folded instructional leaflets, precision decorated and die cut components, electronic displays, polymer bank note substrate and other complementary products and services are sold in parallel to specific end-use markets.
Avery
Avery is the world's largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers available alongside complementary products sold through distributors, mass market stores and e-commerce retailers.
Checkpoint Systems
Checkpoint is a leading developer of RF and RFID based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions, for the retail and apparel industries worldwide.
Innovia
Innovia
is a leading global producer of specialty, high performance, multi-layer, surface engineered films for label, packaging and security applications. State-of-the-art facilities are located in the Australia, Belgium, Germany, Mexico, United Kingdom and the United States.
http://www.cclind.com/segments/segments#innovia
Our History
The history of Innovia Films spans over 85 years. During which time, the company has advanced its technical expertise, expanded its global reach through acquisition and natural growth and continued to develop, refine and launch new value added products into the marketplace.
During this time the company has operated under a wide range of trading names, expanding and contracting operations according to product demand.
The first 35 years saw the company manufacturing only cellulose films. However with the invention of polymer films and its fast growth, we decided in 1967 to invest in a new production plant to produce Biaxially Oriented Polypropylene (BOPP) films. As the market for polymer films expanded, the cellulose film market contracted. This led to the closure of cellulose plants around the world including some plants owned by us. Equally, investment was made in new BOPP plants as demand grew.
Innovia Films was formed in 2004 under a consortium of financial investors. In 2016 our cellulose film business was sold. From the 1st March 2017, ownership of Innovia Films passed to CCL Industries Inc. In July 2018 CCL acquired the America's manufacturing operations of one of our competitors. On completion, they were rebranded and joined the Innovia Films family.
Today, Innovia Films is a major producer of highly differentiated speciality Biaxially Oriented Polypropylene (BOPP) films offering products produced using both 'Bubble' and Tenter manufacturing processes. It holds a leading global position in the markets for high performance coated packaging, tobacco overwrap, label and security films.
Our films are sold to brand-owners, end-users and converters across the globe. They become part of the solution for the tobacco overwrap, packaging or labelling of some of the world's best known brands across a wide variety of everyday consumer goods. These include home and personal care products, food and beverages, confectionery, tobacco, luxury goods and industrial applications.
Innovia employs >1200 people worldwide and has production sites in Australia, Belgium, Mexico and the United Kingdom. The company is focused on high quality value added products, strong customer relationships, Research & Development and excellent service.
https://www.innoviafilms.com/company/#!/our-history
Johnson Matthey plc (LSE: JMAT)
What we do
We use our cutting edge science to create solutions to our customers' complex problems. Our science has a global impact in areas that include low emission transport, pharmaceuticals and chemical processing. We apply it in a way that makes the most efficient use of the planet's natural resources.
Our major markets
We serve customers in the global automotive, chemicals, pharmaceuticals and other industrial markets. Through the quality of our science, our problem-solving ability and strong customer relationships, we hold leading positions in all our major markets.
Our growth opportunities
We target high growth opportunities that will deliver attractive returns for our shareholders over the medium term; mid to high single digit compound annual growth in earnings per share, ROIC expanding to 20% and, as a result, a progressive dividend.
Over 30 locations
14,800 people
Source: Johnson Matthey 2019 Annual Report
https://matthey.com/en/investors/report-archive/annual-report-2019
Oil and gas
With variable commodity prices and increasing pressure on natural resource reserves, oil and gas operators must work hard to ensure the most efficient extraction and processing possible.
What we do
We use our industry and chemistry expertise to create the best return on investment for your oil and gas operations.
Our solutions include:
Catalysts.
Purification.
Refinery additives and addition systems.
Diagnostic services.
We can help you to:
Optimise your processes to increase outputs and improve efficiency.
Reduce your capex and opex, increasing return on investment.
Lower emissions to meet sustainability goals and legislative standards.
Improve process safety.
Source:
https://matthey.com/en/markets/oil-and-gas
Homepage:
https://matthey.com/
AGM trading update 2019
17/7/2019
Robust sales with full year guidance unchanged
Johnson Matthey will hold its Annual General Meeting today at 11.00 am in London and has issued the following trading update ahead of the meeting.
In the first quarter, sales were flat at constant currency. Sales growth in Clean Air was offset by lower sales in Efficient Natural Resources and Health, whilst New Markets was broadly flat.
Our full year guidance for the group at constant rates remains unchanged, with performance more heavily weighted to the second half.
Clean Air
Clean Air delivered robust sales growth in the first quarter. In a market where vehicle production declined by 6%, our European Light Duty business outperformed and grew sales double digit, driven by the annualisation of our diesel share gains and increasing fitment of gasoline particulate filters. In aggregate the rest of Clean Air was broadly flat. In 2019/20 we now expect operating profit to be slightly below the prior year. This reflects higher than anticipated short term costs to serve the strong growth in our European Light Duty business, partly caused by phasing of the completion of our new plant in Poland, and the impact of a delay to the timing of the implementation of China VI legislation.
Efficient Natural Resources
Sales in Efficient Natural Resources were down moderately. This was principally due to phasing in Catalyst Technologies where sales of methanol were lower following strong demand in the prior year, and also in additives, which was weaker due to a planned maintenance shutdown at one of our plants. Pgm Services saw good sales growth driven by higher average pgm prices and looking forward we expect a strong second half with good progress on the benefits from actions taken to improve efficiency. For 2019/20 we now expect better performance in Efficient Natural Resources and continue to anticipate sales growth with operating profit growth ahead of sales.
Health
In Health, sales were lower as expected. Our Generics business was weaker due to lower sales of APIs as they moved through their natural lifecycle. This was partly offset by increased sales in our Innovators business which benefited from our partnership with Immunomedics. The savings associated with the optimisation of our manufacturing footprint are progressing as planned. Our outlook for broadly stable sales and double digit operating profit growth in 2019/20 is unchanged, although the phasing of sales will be more weighted to the second half.
New Markets
Sales in New Markets were broadly flat. Progress in the testing and commercialisation of eLNO
®
is continuing according to plan. We continue to expect sales and operating profit growth in this sector for 2019/20.
Working capital
Working capital remains a key focus for the group. We are making the progress we anticipated on reducing the precious metal working capital, which resulted from the unscheduled downtime in one of our pgm refineries in 2018/19.
Outlook
Our group guidance, at constant rates, for the year ended 31st March 2020 remains unchanged. We expect growth in operating performance at constant rates to be within our medium term guidance of mid to high single digit growth.
In terms of phasing, we expect performance to be more heavily weighted to the second half.
By sector, Clean Air performance is now expected to be slightly below the prior year. This is expected to be compensated by better performance in Efficient Natural Resources driven by actions taken to improve efficiency, and other ongoing efficiencies across the group.
At current foreign exchange rates (£:$ 1.268, £:[euro] 1.114, £:RMB 8.71) translational foreign exchange movements for the year ending 31st March 2020 are expected to benefit sales by £75 million and underlying operating profit by £12 million.
https://matthey.com/news/2019/trading-update
Noble Corporation plc (NYSE: NE)
Noble is a leading offshore drilling contractor for the oil and gas industry. The Company owns and operates one of the most modern, versatile and technically advanced fleets in the offshore drilling industry.
Noble performs, through its subsidiaries, contract drilling services with a fleet of 25 offshore drilling units, consisting of 12 drillships and semisubmersibles and 13 jackups, focused largely on ultra-deepwater and high-specification jackups drilling opportunities in both established and emerging regions worldwide.
Source:
https://investors.noblecorp.com/
Homepage:
https://www.noblecorp.com/
Noble Corporation plc Reports Third Quarter 2019 Results
October 30, 2019 at 4:59 PM EDT
HIGHLIGHTS AND RECENT DEVELOPMENTS:
Contract extensions for three jackups improve days under contract in 2020
Noble Joe Knight commences operations offshore Middle East
Advanced discussions with Shell to receive payout of Noble Bully II contract and acquire Shell's interest in the Bully joint ventures
Gross impairment charge of $596 million taken on Noble Bully II
LONDON, Oct. 30, 2019 /PRNewswire/ -- Noble Corporation plc (NYSE: NE, the Company) today reported a net loss attributable to the Company for the three months ended September 30, 2019 (third quarter) of $445 million, or $1.79 per diluted share, on total revenues of $276 million. The results reflect the impact of a non-cash charge totaling $596 million ($331 million, or $1.33 per diluted share, net of noncontrolling interests) relating to the impairment of the drillship Noble Bully II. Excluding the non-cash charge, the Company would have reported a net loss attributable to the Company for the three months ended September 30, 2019 of $114 million, or $0.46 per diluted share.
Julie J. Robertson, Chairman, President and Chief Executive Officer of Noble Corporation plc, stated, "Activity in the offshore drilling market remains encouraging although we experienced the temporary impact of numerous mobilizations across the fleet. These included two drillships and a jackup, while a third drillship was completing preparations for a transfer that is now in progress. These actions were largely responsible for a decline in third quarter of total fleet operating days and revenues when compared to the previous quarter. Two of the drillships, the Noble Sam Croft and the Noble Globetrotter II, have already commenced operations in their new regions, while the jackup Noble Houston Colbert and the drillship Noble Don Taylor are expected to recommence operations by early and mid-November, respectively."
Contract drilling services revenues for the third quarter totaled $259 million compared to $275 million in the second quarter. The six percent decline was due, in part, to lower revenues in the Company's floating rig fleet, which reflected the absence of revenues received during the second quarter for the utilization of a managed pressure drilling (MPD) system on the Noble Globetrotter II. In addition, total fleet operating days declined in both the floating and jackup fleets, reflecting temporary out-of-service periods on the drillship Noble Don Taylor and the jackups Noble Houston Colbert and Noble Scott Marks. The lower fleet operating days resulted in a decline in third quarter utilization to 76 percent compared to 82 percent in the second quarter.
Contract drilling service costs in the third quarter totaled $176 million compared to $169 million in the second quarter. The four percent rise in costs was associated with the Noble Don Taylor and the Noble Houston Colbert as both units prepared for their next drilling assignments. Also, higher costs were experienced on the jackup Noble Joe Knight as the rig approached commencement of its initial contract offshore Saudi Arabia. These items were partially offset by a reduction in operations support costs.
The Company has been in discussions with Shell with respect to the drilling contract, which runs through April 2022, that Shell has with the Bully II joint venture. The discussions are at an advanced stage and contemplate that Shell would buy out the remaining term of the drilling contract with the joint venture and that Noble would acquire Shell's interests in the Bully II and the Bully I joint ventures. Following completion of the transaction, which the Company believes is likely, Noble would be free to market the Noble Bully II worldwide.
In connection with the transaction, Noble would receive a lump sum amount for its fifty percent share of the buyout of the Noble Bully II contract. The drilling contract buyout would approximate the margin afforded under the contract, and the lump sum payment would be net of a nominal amount to be paid for the two joint venture interests, with working capital and other customary adjustments for transactions of this nature. We expect to receive the payout in the fourth quarter of 2019. Noble recognized the impairment on the Noble Bully II in the third quarter as a result of the advanced stages of the discussions.
Operating Highlights
Utilization in the third quarter of the Company's 12 floating rigs was 63 percent compared to 67 percent in the second quarter. Excluding three cold-stacked units, active utilization of the floating rig fleet was 83 percent in the third quarter compared to 89 percent in the second quarter. The decline in utilization was due primarily to fewer operating days on the drillship Noble Don Taylor, which spent the quarter preparing for its relocation to Guyana where the rig is expected to commence a one-year contract by mid-November. Floating fleet revenues declined nine percent in the third quarter when compared to the second quarter. In addition to the out-of-service days on the Noble Don Taylor, the decline was also attributable to lower revenues from the Noble Globetrotter II following the completion of a drilling program during the second quarter in which the rig utilized the Company's MPD system.
During the third quarter and into October, the Company concluded or commenced the relocation of three ultra-deepwater drillships to regions where opportunities for high-specification units are expected to improve, further maximizing Noble's excellent regional positioning. Prior to the Noble Don Taylor's relocation to Guyana, the Noble Sam Croft completed a move to Suriname where a drilling assignment commenced in late September. The program offshore Suriname was recently expanded to three firm wells, extending the rig's contract into March of 2020. Also, the Noble Globetrotter II was relocated to the U.S. Gulf of Mexico. Following a brief shipyard program, the rig commenced operations in October, joining the Noble Globetrotter I, which relocated to the U.S. Gulf of Mexico during the second quarter.
At September 30, 2019, eight of the Company's nine active floating units remained under contract, with an estimated 57 percent of the available rig days over the next twelve months committed to contracts, compared to 49 percent at the beginning of 2019.
Utilization in the third quarter of the Company's 13-rig jackup fleet was 89 percent compared to 98 percent in the second quarter and reflected a six percent decline in operating days. The decline was due principally to relocation of the Noble Houston Colbert to the UK North Sea following the completion of a drilling program offshore Qatar, and to a regulatory inspection of the Noble Scott Marks. These out- of-service events were partially offset by a full quarter of operations on the Noble Johnny Whitstine. The Noble Houston Colbert is expected to commence an estimated 150-day contract in the UK North Sea by early November 2019. The Noble Scott Marks completed its regulatory program and recommenced operations in late September offshore Saudi Arabia.
Several of the Company's jackups have recently been awarded contract extensions that provide further contract coverage in 2020. These include contract extensions for the Noble Tom Prosser offshore Australia, the Noble Mick O'Brien offshore Qatar, and the Noble Hans Deul offshore the UK North Sea. Finally, the Noble Joe Knight completed a mobilization to the Middle East and commenced a three-year contract in late October offshore Saudi Arabia.
At September 30, 2019, all of the Company's 13 jackup rigs remained under contract, with an estimated 69 percent of the available jackup fleet rig days over the next twelve months committed to contracts.
Backlog, Capital and Balance Sheet
At September 30, 2019, the Company's revenue backlog totaled approximately $2.0 billion, of which an estimated $303 million is related to the contract with the Bully II joint venture for the Noble Bully II.
Capital expenditures for the three months ended September 30, 2019 reached $57 million, with expenditures of $204 million through the nine months ended September 30, 2019, excluding the $54 million seller-financed portion of the Noble Joe Knight purchase price. The September 2019 year-to-date total was comprised of $56 million of sustaining capital, $139 million of major projects, rig reactivations and subsea spares, and $9 million of capitalized interest. The Company's projection for total capital expenditures in 2019, excluding the purchase of the Noble Joe Knight, remains an estimated $250 million. The Company currently expects capital expenditures in 2020 to be approximately $150 million.
The Company reported cash and cash equivalents at September 30, 2019 of $136 million and availability under its recently amended 2017 Credit Facility of $1.1 billion, or total liquidity of approximately $1.2 billion.
Outlook
Emphasizing the importance and success of Noble's marketing initiatives, Ms. Robertson noted, "Our continuing focus on excellent fleet positioning, together with exemplary operations, have created opportunities to establish or expand our presence in regions with increasingly attractive deep and shallow water drilling programs. Following the relocation of the Noble Don Taylor, we will have four drillships in the Guyana-Suriname basin, where customer interest continues to build as significant resource potential is confirmed. Also, the recent contract awards and extensions for several of our jackups demonstrate the attractiveness of the regions we currently serve. As we observe increased project sanctioning across our industry, I believe Noble's active fleet has superb positioning as we enter 2020. In addition, the company's liquidity position remains solid as we move into an improving operating market."
A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release and can also be found at
www.noblecorp.com
. It provides a reconciliation for revenues, net loss, income tax and diluted earnings per share for the third quarter 2019, and the third quarter of 2018.
https://investors.noblecorp.com/news-releases/news-release-details/noble-corporation-plc-reports-third-quarter-2019-results
Phillips66 (NYSE: PSX)
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,400 employees committed to safety and operating excellence. Phillips 66 had $58 billion of assets as of June 30, 2019.
Source:
https://www.phillips66.com/newsroom-site/Documents/factsheet.pdf
About Phillips66
With more than 140 years of experience, we are well-positioned to help fulfill global energy needs. We are a diversified energy manufacturing and logistics company with unique businesses in Refining, Midstream, Chemicals and Marketing and Specialties.
Refining
Our 13 refineries in the United States and Europe process crude oil and other feedstocks and focus on operating excellence, optimization, safety and increasing margins. The business has a global refining capacity of 2.2 million barrels of crude oil per day.
Technology
From the laboratory to pilot plants, in-house research and development at Phillips 66 drives new ideas toward commercialization. The technology division evaluates opportunities and finds technical solutions to the challenges facing our industry. Our researchers' inspirations create avenues for future growth and help existing businesses reduce costs through improved processes.
Source:
https://www.phillips66.com/about
Homepage:
https://www.phillips66.com
Phillips 66 - Phillips 66 Reports Second-Quarter 2021 Financial Results - 3/8/2021
Reported second-quarter earnings of $296 million or $0.66 per share; adjusted earnings of $329 million or $0.74 per share
Generated $1.7 billion of operating cash flow; $910 million excluding working capital
Delivered record Chemicals earnings
CPChem began construction on a world-scale 1-hexene unit
Ramped up renewable diesel production at San Francisco Refinery
Recently resumed construction of the 150,000-BPD Frac 4 at the Sweeny Hub
Issued 2021 Sustainability Report in July
HOUSTON--(
BUSINESS WIRE
)--Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces second-quarter 2021 earnings of $296 million, compared with a loss of $654 million in the first quarter of 2021. Excluding special items of $33 million, the company had adjusted earnings of $329 million in the second quarter, compared with a first-quarter adjusted loss of $509 million.
"Our second-quarter results reflect the recovery of operations after the prior quarter's winter storms, as well as further product demand improvement as more people across the globe are vaccinated," said Greg Garland, Chairman and CEO of Phillips 66. "CPChem generated record quarterly earnings supported by robust demand, utilization and margins. Midstream and Marketing and Specialties delivered strong, consistent earnings, while Refining profitability remained challenged.
"Across our portfolio, we are advancing our strategic projects and pursuing lower-carbon opportunities. At Rodeo, renewable diesel production from the hydrotreater conversion reached full rates in July, and permitting for the full facility conversion is moving forward as planned. At the Sweeny Hub, we recently resumed construction of Frac 4, which we expect to complete in the fourth quarter of 2022.
"Our recently released 2021 Sustainability Report outlines our commitment to a lower-carbon future through environmental stewardship, social responsibility and strong corporate governance. As previously communicated, we will establish greenhouse gas emission reduction targets later this year.
"Looking forward, we remain optimistic that demand recovery for our products will continue. We will adhere to our disciplined capital allocation framework, including our commitment to debt reduction as well as a secure, competitive dividend. We anticipate a return to dividend growth as cash flow recovers. In the second quarter, we returned $394 million in dividends to shareholders."
Midstream
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
Q2 2021
Q1 2021
Q2 2021
Q1 2021
Transportation
$
224
7
224
206
NGL and Other
79
35
83
36
DCP Midstream
9
34
9
34
Midstream
$
312
76
316
276
Midstream second-quarter 2021 pre-tax income was $312 million, compared with $76 million in the first quarter of 2021. Midstream results in the second quarter included $4 million of pension settlement expense. First-quarter results included a $198 million impairment resulting from Phillips 66 Partners' decision to exit the Liberty Pipeline project, as well as $2 million of winter-storm-related maintenance and repair costs.
Transportation second-quarter adjusted pre-tax income of $224 million was $18 million higher than the first quarter, primarily due to improved volumes from increased refinery utilization rates, partially offset by timing of maintenance and asset integrity work.
NGL and Other adjusted pre-tax income was $83 million in the second quarter, compared with $36 million in the first quarter. The increase was primarily due to lower operating costs and higher volumes, reflecting recovery from the first-quarter winter storms.
The company's equity investment in DCP Midstream, LLC generated second-quarter adjusted pre-tax income of $9 million, a $25 million decrease from the prior quarter. The decrease is mainly due to lower mark-to-market hedging results from higher natural gas and NGL prices.
Chemicals
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
Q2 2021
Q1 2021
Q2 2021
Q1 2021
Olefins and Polyolefins
$
562
145
593
174
Specialties, Aromatics and Styrenics
79
26
82
27
Other
(18)
(17)
(18)
(17)
Chemicals
$
623
154
657
184
The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals second-quarter 2021 pre-tax income was $623 million, compared with $154 million in the first quarter of 2021. Chemicals results in the second quarter included an $18 million reduction to equity earnings for pension settlement expense and $16 million of winter-storm-related maintenance and repair costs. First-quarter results included a reduction to equity earnings of $30 million for winter-storm-related costs.
CPChem's Olefins and Polyolefins (O&P) business contributed $593 million of adjusted pre-tax income in the second quarter, compared with $174 million in the first quarter. The $419 million increase was driven by strong demand, tight supplies and recovery from the first-quarter winter storms that contributed to higher margins and lower utility costs. Global O&P utilization was 102% for the quarter.
CPChem's Specialties, Aromatics and Styrenics (SA&S) business contributed second-quarter adjusted pre-tax income of $82 million, compared with $27 million in the first quarter. The increase primarily reflects improved margins due to tight industry supplies following first-quarter winter storm outages, as well as lower turnaround costs.
Refining
Millions of Dollars
Pre-Tax Loss
Adjusted Pre-Tax Loss
Q2 2021
Q1 2021
Q2 2021
Q1 2021
Refining
$
(729)
(1,040)
(706)
(1,026)
Refining had a second-quarter 2021 pre-tax loss of $729 million, compared with a pre-tax loss of $1 billion in the first quarter of 2021. Second-quarter results included $20 million of pension settlement expense and $3 million of winter-storm-related maintenance and repair costs. Refining results in the first quarter included $14 million of winter-storm-related costs.
Refining had an adjusted pre-tax loss of $706 million in the second quarter, compared with an adjusted pre-tax loss of $1 billion in the first quarter. The improvement was primarily due to lower utility and turnaround costs and higher volumes, partially offset by lower realized margins. Second-quarter realized margins were lower, as the benefit of improved market crack spreads was more than offset by higher RIN costs, lower electricity sales in the Texas market, decreased secondary product margins, lower clean product differentials and inventory impacts.
Pre-tax turnaround costs for the second quarter were $118 million, compared with first-quarter costs of $192 million. Crude utilization rate was 88% in the second quarter, up from 74% in the first quarter. Clean product yield was 82% in the second quarter, unchanged from the first quarter.
Marketing and Specialties
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
Q2 2021
Q1 2021
Q2 2021
Q1 2021
Marketing and Other
$
389
211
392
211
Specialties
87
79
87
79
Marketing and Specialties
$
476
290
479
290
Marketing and Specialties (M&S) second-quarter 2021 pre-tax income was $476 million, compared with $290 million in the first quarter of 2021. Second-quarter results included $3 million of pension settlement expense.
Adjusted pre-tax income for Marketing and Other was $392 million in the second quarter, an increase of $181 million from the first quarter. The increase was primarily due to higher domestic margins and volumes, reflecting stronger demand in key markets. Refined product exports in the second quarter were 216,000 barrels per day (BPD).
Specialties generated second-quarter adjusted pre-tax income of $87 million, up from $79 million in the prior quarter.
Corporate and Other
Millions of Dollars
Pre-Tax Loss
Adjusted Pre-Tax Loss
Q2 2021
Q1 2021
Q2 2021
Q1 2021
Corporate and Other
$
(246)
(251)
(244)
(251)
Corporate and Other second-quarter 2021 pre-tax costs were $246 million, compared with pre-tax costs of $251 million in the first quarter of 2021. Second-quarter pre-tax costs included $2 million of pension settlement expense.
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $1.7 billion in cash from operations in the second quarter of 2021, including a working capital benefit of $833 million and cash distributions from equity affiliates of $612 million. The working capital benefit was primarily due to receipt of a U.S. federal income tax refund.
During the quarter, Phillips 66 funded $380 million of capital expenditures and investments and paid $394 million in dividends.
As of June 30, 2021, Phillips 66 had $7.9 billion of liquidity, reflecting $2.2 billion of cash and cash equivalents and approximately $5.7 billion of total committed capacity under revolving credit facilities. Consolidated debt was $15.4 billion at June 30, 2021, including $3.9 billion at Phillips 66 Partners (PSXP). The company's consolidated debt-to-capital ratio was 43% and its net debt-to-capital ratio was 39%. Excluding PSXP, the debt-to-capital ratio was 39% and the net debt-to-capital ratio was 34%.
Strategic Update
Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments. The pipeline is expected to be operational in the fourth quarter of 2021.
At the Sweeny Hub, Phillips 66 resumed construction of the 150,000-BPD fourth fractionator. The project is expected to be completed in the fourth quarter of 2022 and will increase Sweeny Hub fractionation capacity to 550,000 BPD. The fractionators are supported by long-term commitments.
In Chemicals, CPChem and Qatar Petroleum are jointly pursuing development of petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. CPChem expects to make a final investment decision for its U.S. Gulf Coast project in 2022.
CPChem is expanding its alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component in high-performance polyethylene. In May, CPChem began construction on the 266,000 metric tons per year unit, located in Old Ocean, Texas, near its Sweeny facility. The project will utilize CPChem's proprietary technology and is expected to start up in 2023.
In May, CPChem received the annual Re|focus Sustainability Leadership Innovation Award from the Plastics Industry Association (PLASTICS) for being among the top 2021 industry innovators in sustainability. The award recognizes the company's launch of Marlex
®
Anew
[TM]
Circular Polyethylene, which uses advanced recycling technology to convert difficult-to-recycle plastic waste into high-quality raw materials.
Phillips 66 is advancing its plans at the San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The hydrotreater conversion reached full rates of 8,000 BPD (120 million gallons per year) of renewable diesel in July. Subject to permitting and approvals, full conversion of the refinery is expected to be finished in early 2024. Upon completion, the facility will have over 50,000 BPD (800 million gallons per year) of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels.
In Marketing, Phillips 66 is converting 600 branded retail sites in California to sell renewable diesel produced by the Rodeo facility. In Switzerland, the Phillips 66 COOP retail joint venture is adding hydrogen fueling stations. Through the joint venture, Phillips 66 is exploring hydrogen as a fuel option for heavy-duty vehicles to support European low-carbon goals and growing demand for sustainable fuels.
Phillips 66 recently released its 2021 Sustainability Report. The report includes a detailed analysis of the company's climate-related risks and opportunities as well as performance data on various environmental, social and governance, or ESG, matters. To view Phillips 66's 2021 Sustainability Report, go to
www.phillips66.com/sustainability
.
https://www.businesswire.com/news/home/20210803005374/en/Phillips-66-Reports-Second-Quarter-2021-Financial-Results
Royal Dutch Shell plc (LSE: RDSA, NYSE: RDS.A)
Business overview
History
From 1907 until 2005, Royal Dutch Petroleum Company and The "Shell" Transport and Trading Company, p.l.c. were the two public parent companies of a group of companies known collectively as the "Royal Dutch/Shell Group". Operating activities were conducted through the subsidiaries of these parent companies. In 2005, Royal Dutch Shell plc became the single parent company of Royal Dutch Petroleum Company and of The "Shell" Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited.
Royal Dutch Shell plc (the Company) is a public limited company registered in England and Wales and headquartered in The Hague, the Netherlands.
Business model
Shell is an international energy company with expertise in the exploration, development, production, refining and marketing of oil and natural gas, as well as in the manufacturing and marketing of chemicals. We are one of the world's largest independent energy companies in terms of market capitalisation, cash flow from operating activities, and production levels.
We seek to create shareholder value through the following activities:
We explore for crude oil and natural gas worldwide, both in conventional fields and from sources such as tight rock, shale and coal formations. We work to develop new crude oil and natural gas supplies from major fields. We also extract bitumen from oil sands, which we convert into synthetic crude oil.
We cool natural gas to produce liquefied natural gas (LNG) that can be safely shipped to markets around the world, and we convert gas into liquids (GTL).
We transport and trade oil, gas and other energy-related products, such as electricity and carbon-emissions rights.
We have a portfolio of refineries and chemical plants which enables us to capture value from oil and gas production, turning them into a range of refined and petrochemical products which are moved and marketed around the world for domestic, industrial and transport use. The products we sell include gasoline, diesel, heating oil, aviation fuel, marine fuel,
LNG
for transport, lubricants, bitumen and sulphur. We also produce and sell ethanol from sugar cane in Brazil, through our Raízen joint venture.
We invest in low-carbon energy solutions such as biofuels, hydrogen, wind and solar power, and in other opportunities linked to the energy transition.
The integration of our businesses is one of our competitive advantages, allowing for optimisations across our global portfolio. Our key strengths include the development and application of innovation and technology, the financial and project management skills that allow us to safely develop large and integrated projects, the management of integrated value chains and the marketing of energy products. The distinctive Shell pecten, a trademark in use since the early part of the 20th century, and trademarks in which the word Shell appears, help raise the profile of our brand globally.
Source: Royal Dutch Shell plc 2018 Annual Report
https://reports.shell.com/annual-report/2018/
Shell (UK)
Shell has played a vital role in powering the UK's industry, transport systems and homes since the founding of Shell Transport and Trading over 120 years ago.
We began as a small trading company in London, importing seashells to cater for the growing trend of using shells in interior design. Today, we are one of the world's largest independent energy companies, operating in more than 70 countries. Central to our success for more than a century has been our ability to innovate and adapt to changing customer needs.
This same spirit of innovation will be just as important over the course of the coming decades, as the UK seeks to make the move towards a lower carbon energy system.
Our aim is to thrive through this energy transition by reshaping our company to provide the mix of lower carbon products that our customers will need in the future, while continuing to supply the oil and gas that society needs today and for years to come.
Source:
https://www.shell.co.uk/about-us/what-we-do.html
Homepage:
https://www.shell.com
Royal Dutch Shell Plc Third Quarter 2020
29/10/2020
SHELL SETS OUT A COMPELLING INVESTMENT CASE
The Hague, October 29, 2020 - Shell today announced a cash allocation framework that will enable it to reduce debt, increase distributions to shareholders, and allow for disciplined growth as it reshapes its business for the future of energy. Ongoing work to reshape Shell's portfolio is expected to deliver continued cash generation to grow its low-carbon businesses as well as to increase shareholder distributions, making a compelling investment case.
In confirming its progressive dividend policy, Shell announces a dividend per share growth by around 4% to 16.65 US cents for the third quarter 2020 and annually thereafter, subject to Board approval.
The cash allocation framework includes a target to reduce net debt to $65 billion (from $73.5 billion as of September 30, 2020) - and, on achieving this milestone, a target to distribute a total of 20-30% of cash flow from operations to shareholders. Increased shareholder distributions will be achieved through a combination of Shell's progressive dividend and share buybacks. Remaining cash will be allocated to disciplined and measured capex growth and further debt reduction, targeting AA credit metrics through the cycle.
Shell's decisive steps this year have significantly strengthened its financial resilience, allowing the acceleration of strategic plans and providing clarity on cash priorities. These actions support Shell's ambition to become a net-zero energy emissions business by 2050 or sooner, in step with society and its customers.
"Our sector-leading cash flows will enable us to grow our businesses of the future while increasing shareholder distributions, making us a compelling investment case," said Royal Dutch Shell Chief Executive Officer, Ben van Beurden.
"We must continue to strengthen the financial resilience of our portfolio as we make the transition to become a net-zero emissions energy business. Our decisive actions taken earlier in the year have solidified our operational and cash delivery. The strength of our performance gives us the confidence to lay out our strategic direction, resume dividend growth and to provide clarity on the cash allocation framework, with clear parameters to increase shareholder distributions."
Chair of the Board of Royal Dutch Shell, Chad Holliday commented: "The Board has reviewed Shell's recent performance and its plans to grow its businesses of the future, and we are confident that Shell can sustainably grow its shareholder distributions as well as invest for growth.
As a result, the Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020. The Board has additionally approved a cash allocation framework for Shell which, on reducing its net debt to $65 billion, will target total shareholder distributions of 20-30% of cash flow from operations."
Shell will continue with its strong capital discipline, including annual Cash capex of between $19 and $22 billion in the near term and a focus on reducing net debt. Shell will continue its relentless high grading of the portfolio with expected divestment proceeds of $4 billion a year on average.
LEADING ENERGY TRANSITION STRATEGY AND A STRONG PORTFOLIO
Shell will reshape its portfolio of assets and products to meet the cleaner energy needs of its customers in the coming decades. The key elements of Shell's strategic direction include:
Ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society and its customers.
Grow its leading marketing business, further develop the integrated power business and commercialise hydrogen and biofuels to support customers' efforts to achieve net-zero emissions.
Transform the Refining portfolio from the current fourteen sites into six high-value energy and chemicals parks, integrated with Chemicals. Growth in Chemicals will pivot to more performance chemicals and recycled feedstocks.
Extend leadership in liquefied natural gas (LNG) to enable decarbonisation of key markets and sectors.
Focus on value over volume by simplifying Upstream to nine significant core positions, generating more than 80% of Upstream cash flow from operations.
Enhanced value delivery through Trading and Optimisation.
A comprehensive strategy update, with details on the future shape of the Shell portfolio, actions to deliver the net-zero ambition, and a full financial outlook will be presented on February 11, 2021.
NOTES TO EDITOR
Our nine core Upstream positions are: Brazil, Brunei, Gulf of Mexico (US/Mexico GoM), Kazakhstan, Malaysia, Nigeria, Oman, Permian and UK North Sea.
The six sites expected to form our energy and chemicals parks include: Deer Park (US), Norco (US), Pernis (NL), Pulau Bukom (Singapore), Rheinland (Germany) and Scotford (Canada).
The chemicals-only production sites, which sit alongside the energy and chemicals parks are: CSPC (China- JV with CNOOC), Fife Ethylene Plant (Scotland - JV with Exxon), Geismar (US), Jurong Island (Singapore), Moerdijk (NL), and Pennsylvania Chemicals (US - under construction).
RESILIENT Q3 2020 RESULTS
Resilient earnings in a challenging macroeconomic environment.
Record Marketing earnings driven by increased sales mix of high-margin premium products and higher non-fuel sales from our convenience retail stores.
Strong cash flow performance proving the resilience of our integrated business model and strong cost discipline.
Further strengthening of the balance sheet with net debt reducing by $4.4 billion to $73.5 billion.
$ million
IFRS earnings
1
Adjusted Earnings
CFFO
CFFO ex WC
Cash capex
Organic FCF
Integrated Gas
(151)
768
2,323
2,396
1,020
1,352
Upstream
(1,110)
(884)
2,101
2,629
1,245
821
Oil Products
2,092
1,680
5,131
3,476
832
4,296
Refining & Trading
498
55
Marketing
1,594
1,626
Chemicals
131
227
335
488
595
(260)
Corporate
(739)
(792)
514
(33)
45
505
Non-controlling interest
45
45
RDS
Q3 2020
489
955
10,403
8,955
3,737
6,713
Q3 2019
5,879
4,767
12,252
12,083
6,098
6,630
Q3 2020
Q2 2020
Q3 2019
ROACE
3.9%
5.3%
8.1%
Dividends
$1.2 billion
$1.4 billion
$3.8 billion
Gearing
31.4%
32.7%
27.9%
Net debt
$73.5 billion
$77.8 billion
$74.7 billion
Q3 2020 FINANCIAL PERFORMANCE DRIVERS
INTEGRATED GAS AND NEW ENERGIES
Low realised LNG prices due to price lag in oil-linked term contracts.
LNG trading and optimisation results below average.
Volumes negatively impacted by LNG maintenance activities.
OUTLOOK FOR Q4 2020
Production: 830 - 870 thousand boe/d
Liquefaction volumes: 7.9 - 8.5 million tonnes
UPSTREAM
Lower demand and lower oil and gas prices driving lower Adjusted Earnings.
Production 14% lower compared with Q3 2019 due to OPEC+ curtailments, lower gas demand and hurricanes in US Gulf of Mexico.
Realised liquid prices 10% below Brent, in line with historical averages; offset by low effective tax rate while in a loss position.
OUTLOOK FOR Q4 2020
Production: 2,300 - 2,500 thousand boe/d
OIL PRODUCTS
Record Marketing performance in the quarter driven by higher margins and volume recovery in Retail, Lubricants and B2B businesses.
Continued weakness in refining margins and lower utilisation mainly due to lower demand and economic optimisation of the plants.
Lower opex as a result of underlying structural cost reduction and lower maintenance cost and Marketing spend driven by lower activity.
Trading and optimisation results below average.
OUTLOOK FOR Q4 2020
Sales volumes: 4,000 - 5,000 thousand b/d
Refinery utilisation: 69% - 77%
CHEMICALS
Lower Intermediate margins due to lower demand in most segments offset by relative strength in Solvents (used for cleaning and disinfectants) and Polyols (used in products such as furniture and insulation).
Tax credit due to recognition of a deferred tax asset.
OUTLOOK FOR Q4 2020
Sales volumes: 3,500 - 3,900 thousand tonnes
Manufacturing plant utilisation: 77% - 85%
CORPORATE
Net debt decreased by $4.4 billion to $73.5 billion. Helped by higher free cash flow, including a working capital inflow.
Gearing decreased by 1.3% to 31.4% driven by net debt reduction.
Long-term debt issuance was $3.9 billion.
OUTLOOK FOR 2020
Adjusted earnings: net expense of $3,200 - $3,500 million for the full year 2020. This excludes the impact of currency exchange rate effects.
Q3 2020 PORTFOLIO DEVELOPMENTS
During the quarter, the CrossWind consortium, a joint venture between Shell (79.9% interest) and Eneco (20.1% interest), was awarded the tender for the subsidy-free offshore wind farm Hollandse Kust (noord) in the Netherlands. The wind farm has a planned installed capacity of 759 MW and is expected to help meet the objectives of the Dutch Climate Accord and the EU's Green Deal. Both companies have already taken their final investment decisions on the project. This investment is part of Shell's ambition for a new wind-to-hydrogen value chain.
During the quarter, Shell completed the sale of its Appalachia shale gas position in the USA for $541 million paid fully in cash, less closing adjustments. The transaction has an effective date of January 1, 2020.
In August, Shell took the final investment decision to contract the Mero-3 floating production, storage and offloading (FPSO) vessel to be deployed at the Mero field within the offshore Santos Basin in Brazil. This production system has a daily operational capacity rate of 180,000 barrels of oil equivalent, with production coming online over the next four years.
https://www.globenewswire.com/news-release/2020/10/29/2116565/0/en/ROYAL-DUTCH-SHELL-PLC-THIRD-QUARTER-2020-PRESS-RELEASE.html
Synthomer plc (LSE: SYNT)
Our business
Synthomer at a glance
Synthomer is one of the world's foremost suppliers of aqueous polymers and has leadership positions in many markets. Our polymers help customers create new products and enhance the performance of existing products in key industries such as coatings, construction, textiles, paper and synthetic latex gloves. With the acquisition in 2016 of Hexion's Performance Adhesives and Coatings (PAC) business, Synthomer grew its global manufacturing network, expanded its product portfolio and boosted its geographical presence, allowing it to better serve new and existing customers around the world. Discover how our products enhance our customers' products and processes.
A strong geographic presence
Synthomer has its operational headquarters in London, UK, and provides customer-focused services from regional centres in Harlow, UK; Marl, Germany; Kuala Lumpur, Malaysia and Atlanta, USA. It employs more than 2900 employees across more than 25 sites. With production sites local to our customers, we are better able to respond to their specific needs, reduce the cost of logistics and minimise our environmental impact.
A robust financial platform
With 2018 revenues of more than £1 billion and an EBITDA of more than £180 million, Synthomer's robust financial performance ensures it is well positioned to continue to invest for long-term growth.
Innovative solutions that create and sustain value
Synthomer is a speciality chemical company which uses its technical expertise and R&D capability to understand and anticipate customers' needs and deliver competitive advantage by helping them to create successful products and improve the efficiency of their manufacturing operations.
We have put in place a sustainable value chain to ensure the entire Synthomer organisation works as one to deliver on this strategy and meet the current and future needs of our customers and other key stakeholder groups in the most effective manner. Discover Synthomer's customers gain competitive advantage from its sustainable value chain.
Source:
https://www.synthomer.com/company/company/our-business/
Homepage:
http://www.synthomer.com/
Synthomer plc Interim Results for the six months ended 30 June 2019
Challenging H1 2019 environment but improved conditions and additional H2 2019 capacity underpin Full Year outlook Proposed acquisition of Omnova Solutions Inc announced 3 July 2019
H1 Highlights:
Strategic acquisition of Omnova for £654m announced on 3 July
Underlying operating profit 5.9% lower at £74.7m vs strong H1 2018:
Performance Elastomers benefitted from continued growth in NBR Latex offset by weaker demand and lower margins in SBR Latex
Functional Solutions experienced softer volumes but stronger unit margins
Industrial Specialities after a slow start to the year saw an improving trend through H1 2019
Strong R&D: new products represent c. 21% of total sales volumes (H1 2018: 20%)
Underlying profit before tax and IFRS profit before tax £70.2m and £56.6m respectively
Effective tax rate reduced to 14.0% (H1 2018: 18.0%)
Underlying earnings per share down 3.5% at 16.5p per share with IFRS earnings per share at 13.0p
Interim dividend 4.0p per share reflecting an 8.1% increase
Net debt £209.2m (31 December 2018: £214.0m). Leverage unchanged at 1.2x (31 December 2018: 1.2x)
Commenting on the results, Neil Johnson, Chairman, said:
"Synthomer's performance in H1 2019 has been in line with management's expectations and the prevailing market environment. Q1 2019 was impacted by the general economic downturn which resulted in slower trading particularly in European SBR Latex and Functional Solutions compared to a strong H1 2018 comparative. Q2 2019 returned to a normalised level marginally ahead of Q2 2018. Synthomer has made strong operational progress during H1 2019. New low-cost capacity has been successfully completed in both our Performance Elastomers and Functional Solutions asset base. This capacity will benefit the Group in H2 2019. Innovation continues to underpin new product development with an improved level of new products coming to market in the last 12 months. We announced our proposed acquisition of Omnova Solutions Inc in July. Omnova is a highly synergistic US based speciality chemicals company which brings greater geographic diversity in our core chemistries and markets. The Group is confident of continued progress in H2 2019 when we expect to benefit from improved market conditions and the additional capacity coming to market. SBR Latex is expected to remain challenging in Europe but offset by a robust performance in our Nitriles business. As a result, the Board's expectations for Group Full Year 2019 remain unchanged."
Underlying performance
As more fully described in note 3, the Group's management uses Underlying business performance to plan, control and assess the Group performance. Underlying performance differs from the statutory IFRS performance as Underlying performance excludes the effect of Special Items, which are also detailed in note 3. The Board's view is that Underlying performance provides additional clarity for the Group's investors and so it is the primary focus of the Group's narrative reporting. Where appropriate, IFRS performance inclusive of Special Items is also described. References to 'unit margin' and 'margin' are used in the commentary on Underlying performance. Unit margin (or margin) is calculated on selling price less variable raw material and logistics costs.
H1 Results - Underlying performance
Group revenue was £762.7m (2018: £833.8m). This reduction reflected a decrease in volumes in Performance Elastomers, with weakness in our European SBR business, and Functional Solutions, resulting from a slower start to the year in Europe, the sale of 51% of the Group's Dubai operations in June 2018 and the Malaysian natural rubber and polyester resins production line closures in Q4 2018. Underlying operating profit was 5.9% lower at £74.7m (2018: £79.4m), or 5.4% lower including the impact of the sale of the Group's 51% share of the Dubai operations (£0.4m) in 2018. Finance costs increased to £4.5m (2018: £3.2m), mainly reflecting the Euro interest rate fix transacted in July 2018 (£1.7m), lease liability interest arising on the adoption of IFRS 16 (£0.6m) offset by a reduction in pension interest costs (£0.4m). The effective tax rate reduced from 18.0% in H1 2018 to 14.0% in H1 2019 principally as a result of the geographical mix of profits and the recognition and utilisation of previously unrecognised deferred tax assets. Underlying earnings per share was down 3.5% at 16.5 pence per share (2018: 17.1 pence per share).
H1 Results - IFRS performance
IFRS profit before tax was £56.6m relative to £86.2m in H1 2018. The IFRS profit before tax reflects the Underlying profit before tax as adjusted for the Special Items set out in note 3. Special Items in H1 2019 totalled a net charge of £13.6m, compared to a net income of £10.0m in H1 2018. This £23.6m movement was principally due to £20.5m of profits on disposal from Malaysian land and operations in Leuna (Germany) and the sale of 51% of the Group's Dubai operations in H1 2018.
Divisional - Underlying performance
Performance Elastomers
Underlying operating profit in Performance Elastomers was £2.2m lower at £41.0m (2018: £43.2m), a reduction of 5.1%. Volumes reduced by 4.2% across the segment relative to a strong 2018, reflecting weaker demand in our European SBR markets and the closure of our Malaysian natural rubber production line in late 2018. We saw improvements in our Nitrile volumes due to the introduction of our new 90ktes Nitrile facility in Pasir Gudang (Malaysia), which was commissioned in Q4 2018. Our SBR business was impacted by reducing demand in the Europe, most notable in the paper market. We saw all other end markets including construction and specialist foams recover to more normalised levels during H1 and we maintained our overall market leading position in European SBR. Nitrile margins improved against a strong comparative period, partly as a result of the strengthening US$ relative to the Malaysian Ringgit, whilst unit margins in SBR were lower. Overall, with improved Nitrile product mix, unit margins were higher than the comparative period.
Functional Solutions
Underlying operating profit in Functional Solutions was £30.8m (2018: £33.1m), a reduction of 6.9%. The result was impacted by the sale of 51% of the Group's Dubai operations sold in Q2 2018 (£0.4m) and the slower start to the year in Europe, offset in part by improved unit margins across H1. Volumes reduced by 5.0% against a strong comparative period, excluding the volumes from our Dubai operations and the Malaysian polyester resins production line closed in Q4 2018, reflecting the slower start to 2019 across all end-use markets in Europe with the exception of oil & gas which reported strong volume growth. Underlying unit margins strengthened in construction, coatings, adhesives and oil and gas markets relative to the prior year period. Our investment programme in Functional Solutions saw new capacity completed in Worms (Germany) and Roebuck (USA) towards the end of Q2. Both investments introduce low cost speciality acrylic dispersions which in combination brings 48ktes of new capacity to the network to support future growth.
Industrial Specialities
Underlying operating profit in Industrial Specialities at £10.6m was in line with 2018. Softer demand in Q1 affected volumes but demand improved through the half year with unit margins remaining strong. Volumes were lower by 2.8% affected by reduced volumes in our Speciality Additive and Lithene businesses mainly due to softer automotive markets. Unit margins strengthened in H1 with most of our specialist businesses seeing improvements supported by a favourable mix from higher margin businesses.
Special Items
The following items of income and expense were reported as Special Items and accordingly excluded from Underlying performance:
Acquisition costs related to the proposed acquisition of Omnova Solutions Inc. The 2018 costs related to the BASF Pischelsdorf acquisition.
Amortisation of intangibles decreased during the period as the customer-related intangibles from the 2011 PolymerLatex acquisition reached the end of their amortisation period in 2018.
Restructuring costs comprised £0.6m in Malaysia from the closure of the natural rubber and polyester resins production lines announced in Q4 2018 and £0.7m in relation to the reorganisation of the Group into global business segments from 1 January 2019.
Sale of businesses in 2018 related to the disposal of the Leuna (Germany) site and the disposal of 51% of the Group's Dubai operations.
Sale of land in 2018 related to the disposal of the final tranche of Malaysian land at Kluang.
In July 2018 the Group entered into swap arrangements to fix Euro interest rates on the full value of the [euro]440m committed unsecured revolving credit facility. The fair value of unhedged interest rate derivatives relates to the mark to market of the swap at 30 June 2019 in excess of the Group's current borrowings.
Of the tax credit of £0.6m (2018: £2.3m), £0.6m (2018: £2.5m) related to the notional tax credit on the intangibles amortisation expense.
Taxation
The Group's Underlying tax rate at 14.0% (H1 2018: 18.0%, Full Year 2018: 17%) was lower than the prior year due to the geographical mix of profits and the recognition and the utilisation of previously unrecognised deferred tax assets.
Cash performance and balance sheet items
The Group generated an operating cash flow of £36.5m (2018: £22.7m). The £13.8m increase was due to an increase of £10.6m in cash generated from operations (which includes a £3.4m benefit from the implementation of IFRS 16), a £5.2m reduction in cash tax paid offset by a £2.0m increase in interest on the Euro fixed interest rate derivatives and £0.6m in relation to the interest element of lease payments. Working capital increased by £41.4m (2018: £52.4m) and remains at approximately 10% of sales, with slightly higher inventory levels attributable to preferentially priced deep-sea raw material supplies, and some inventory build ahead of maintenance shutdowns in July. Cash tax decreased to £7.3m (2018: £12.5m) due to the changes in the geographical mix of profits and timing of settlement of tax liabilities. Capital expenditure in the period was £28.4m (2018: £28.5m), as the Group continued its investment in Worms and Roebuck, Pasir Gudang JOB 6, the Asia Innovation Centre and regular recurring SHE and sustenance expenditure.
After other operating, investing and financing flows, the cash, cash equivalents and bank overdrafts increased by £19.3m (2018: increase £29.5m). The Group pension liability increased to £146.5m from £132.5m at December 2018, reflecting an increase in the UK liability of £2.9m and an increase in overseas liabilities of £11.1m. The increase in liability in the period reflected the net impact of a decrease in discount rates in Group's UK and German defined benefit schemes, offset by asset returns. At 30 June 2019 the Group's Leverage ratio was 1.2x, (31 December 2018: 1.2x) based on IFRS accounting standards at 31 December 2018 and on a basis consistent with covenant definitions set out in the [euro]440m committed unsecured revolving credit facility.
Proposed acquisition of Omnova Solutions Inc
On 3 July 2019, the Group announced its intention to acquire the entire share capital of Omnova for an enterprise value of £654m. Omnova develops, manufactures and markets emulsion polymers, speciality chemicals and decorative products. It provides engineered surfaces for various commercial, industrial and residential end uses. Omnova uses strategically-located manufacturing and technical facilities, with 13 manufacturing facilities in North America, Europe, and Asia to service a broad customer base. The Directors believe the acquisition represents an attractive opportunity for Synthomer to strengthen its global position as a major speciality chemicals company underpinned by significant growth opportunities. A fully underwritten 1 for 4 Rights Issue of 84,970,192 new Synthomer shares at 240 pence per new Synthomer share was also announced on the same day to partially fund the proposed acquisition. The rights issue completed on 29 July raising gross proceeds of £204m. The remainder of the funds for the proposed acquisition will come from a fully underwritten refinancing of the Group to take effect immediately before completion.
Dividend and capital management
The Board has declared an interim dividend of 4.0 pence per share, equating to an effective increase in the half year dividend of 8.1%, adjusting for the rights issue bonus factor in respect of the 2018 interim dividend. This dividend is consistent with our Group dividend policy where we remain committed to paying dividends 2.5x covered by the Underlying earnings per share.
https://www.synthomer.com/fileadmin/files/ir/results/2019/H1%202019%20Interim%20report%200608.pdf
Tata Chemicals Europe (NSE: TTCH)
Tata Chemicals Europe is owned by Tata Chemicals Ltd (NSE: TTCH).
https://www.tatachemicals.com/
Tata Chemicals Europe (TCE) is one of Europe's leading producers of sodium carbonate, salt and sodium bicarbonate and other products, from our plants in Cheshire, UK.
We are the UK's only manufacturer of soda ash and sodium bicarbonate. Our high-quality soda ash is used in the manufacture of glass, detergents and chemicals and in several other industry applications. Our many grades of sodium bicarbonate have applications ranging from haemodialysis and pharmaceuticals, food and animal feed, flue gas treatments through to detergents and personal care products.
Our British Salt Business is the UK's leading salt business, producing pure white salt for a variety of uses from food, water-softening, and industrial uses through to de-icing.
We have a long and proud history. Having been founded in 1874, and being a founder-member of ICI. Now owned by Tata Chemicals, we are proud to be part of the Tata Group of companies. Not only does this give TCE global reach, but aligns us squarely with the industry-leading ethical business and sustainability practices, for which the Tata Group is rightly recognised.
Source:
https://tatachemicalseurope.com/about-us
Homepage:
https://tatachemicalseurope.com/
Tata Chemicals' consolidated PAT for the period Q1 FY19-20 at Rs313 crore, up by 19 per cent
8/8/2019
Standalone PAT for the period stood at Rs254 crore
Mumbai, 8th August, 2019: Tata Chemicals Group (the "Company") today declared its Consolidated Financial Results for the first quarter ended 30 June, 2019. The Company reported income from operations on consolidated basis at Rs2,897 crore, up by 6 per cent and Rs1,031 crore, up by 4 per cent on a standalone basis against the same quarter last year.
The Company's results by reporting segment showed Income from operations for Basic Chemistry Products at Rs1,946 crore, up by 1 per cent, Consumer products segment at Rs495 crore, up by 13 per cent and Specialty Products Rs634 crore, up by 9 per cent.
Standalone Q1 FY19-20
Tata Chemicals received environment approval for expansion of soda ash plant in Gujarat at an estimated cost of Rs1,042.07 crore
Re-launched Tata Shudh cement with "Superior 1 day strength" quality\
The Company's state of the art manufacturing facility in Nellore for Nutritional Solutions is in the final stage of commissioning; trial production to commence soon
Highly Dispersible Silica trial production at the Cuddalore facility received an encouraging response from the customers
Consumer business continues to perform well and witnessed growth of 13 per cent over the previous year
Consolidated Q1 FY19-20
TCML continues to be on the growth path with higher volumes and lower input costs
TCE continues to focus on efficiency improvement\
Rallis has moved forward with new vigor to strengthen its sales and marketing through several effective operational steps
Rallis continues to focus towards strong, healthy and sustainable products with target to expand footprints in South East Asian and African countries
Consolidated Net Debt down to Rs1,871 crore from Rs1,959 crore compared to 31 March, 2019
Mr. R. Mukundan, Managing Director, Tata Chemicals Limited, said, "The Company has posted a healthy growth on a consolidated basis across all business segments. In our Basic Chemistry Products Business, we will continue to be most cost-efficient Soda Ash, Bicarbonate and Salt business. Our investment in a Bicarbonate unit in the United Kingdom using innovative carbon capture process and Mithapur plant expansion will provide significant thrust to our growth. We are also happy to have received the environment clearance for the expansion at our Mithapur plant. We will continue to focus on our nutritional science and material sciences business towards scale by strengthening the innovative funnel to ensure aggressive growth in the Specialty Products Business. With digital technology at the heart of our business operations, we seek to simplify and speed up operations and serve customers better."
https://www.tatachemicals.com/Asia/News-room/Press-release/tata-chemicals-consolidated-pat-for-the-period-q1-fy-19-20-at-rs-313-crore-up-by-19-per-cent
Thomas Swan & Co. Ltd.
Thomas Swan & Co. Ltd. is an independent chemical manufacturing company. With offices and warehousing in the UK, USA and China and a global network of distributors, we service the domestic and international markets and export to over 80 countries worldwide.
Founded in 1926 in Consett, in the North East of England - still home to our manufacturing facilities - Thomas Swan today produces over 100 products, in kilogramme to multi-tonne quantities, and offers an experienced and flexible manufacturing service.
I
nnovative
At Thomas Swan we have always searched for new and exciting technologies. Building on our core competency in chemistry, over the years we have founded or invested in many different early stage companies. From our beginnings in road surfacing, we have diversified into a wide range of businesses including photonics (Cambridge Photonics Ltd.), protein separation (Bioprocessing Ltd.), flat screen displays (Screen Technology Ltd.), contract research (BioDynamics Research Ltd.), MOCVD reactors (Thomas Swan Scientific Equipment Ltd.) and hydrogen storage (Cella Energy Ltd.).
Our willingness to try something new is core to our business philosophy and we are always keen to be challenged with new ideas or technical requirements.
Independent
Our independence has enabled us to take an innovative approach to chemical manufacturing. Working closely with leading universities we have developed cutting-edge technologies including the UK's first commercial-scale carbon nanotube plant.
Whilst we are now a leading supplier to the international chemicals market, we have retained the flexibility and customer-focused approach of a family business which enables us to offer outstanding service and support to customers ranging from major multinationals to small start-ups.
We operate globally
Thomas Swan & Co. Ltd. is an independent chemical manufacturing company with a global network of distributors. With offices and warehousing in the UK, USA and China, we service the domestic and international markets and export to over 80 countries worldwide.
Source:
https://thomas-swan.co.uk/about-us/
Homepage:
https://thomas-swan.co.uk
Total S.A. (LSE: TTA, NYSE: TOT)
Total is a major energy player that produces and markets fuels, natural gas and low-carbon electricity. Our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.
TO BECOME THE RESPONSIBLE ENERGY MAJOR
To become the responsible energy major means for Total integrating climate into strategy to anticipate energy markets trends. 3 key strategic priorities are shaping the future of the Group:
Focus our efforts in the oil industry on investments with a low breakeven point, so that we can withstand a potential decline in demand while benefiting from higher oil prices.
Expand our operations right along the value chain for natural gas, the only fossil fuel predicted to grow over the next 20 years, particularly in the area of liquefied natural gas.
Significantly strengthen our presence in low-carbon electricity to capitalize on the strong growth demand.
Total is fully integrated along the whole value chain of its businesses and pursues its integrated business model strategy:
The Group has taken advantage of the low part of the oil price cycle to acquire high-quality resources at attractive prices: 7 billion barrels of oil equivalent added to its reserves between 2015 and 2018 at a cost below $2.5 /boe.
With its acquisition of Engie's LNG assets, Total is the second largest publicly-traded player in the LNG business, a market growing by 5% per year, notably supported by China.
The Group produces electricity from gas and renewables (solar and wind) and markets to final customers. Total targets 7 million customers in 2022 (4 million in 2018).
SOLID FUNDAMENTALS UNDERPINNING SUSTAINABLE GROWTH
In all of our business areas, we have shown operational excellence and an ability to cut costs and acquire the best assets. We are confident in our ability to maintain our growth:
In Exploration & Production, we confirm the objective to grow our production by 5% per year on average between 2017 and 2022 with production costs of $5.5 /boe expected in 2019, among the lowest of the majors.
In the Downstream business, we generate around $7 billion of cash flow per year and the highest profitability of the market. In Refining & Chemicals, Total leverages its 6 world class integrated platforms and is continuing to implement its strategy for growth in petrochemicals. Total also continues to expand Marketing & Services, non-cyclical business, in fast-growing areas.
The Group maintains its financial discipline regarding costs to reduce its breakeven to maintain profitability regardless the environment. Total targets $4.7 billion in cost reduction and net investments of $15-$16 billion in 2019. The Group's balance sheet is solid with a gearing ratio of 15.5%, below the target limit of 20%.
Source:
https://www.total.com/en/investors/why-invest-in-total
Homepage:
https://www.total.com/en
Total S.A Third Quarter 2020 Results
30/10/2020
For the complete report see:
https://www.total.com/system/files/documents/2020-10/3Q20-Results.pdf
Valero Energy Ltd (UK) (NYSE: VLO)
Valero Energy Corporation, through its subsidiaries (collectively, "Valero"), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15 petroleum refineries with a combined throughput capacity of approximately 3.1 million barrels per day and 14 ethanol plants with a combined production capacity of 1.73 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero also is a joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America's largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero's brand names.
Valero Energy Ltd (UK) is a subsidiary of Valero Energy Corporation (NYSE: VLO) and market fuel in the UK under the Texaco brand
Source:
https://texaco.co.uk/
Source:
https://www.valero.com/en-us/AboutValero
Homepage:
http://www.valero.com/
Valero Energy - Valero Energy Reports Second Quarter 2021 Results - 29/7/2021
Reported net income attributable to Valero stockholders of $162 million, or $0.39 per share.
Reported adjusted net income attributable to Valero stockholders of $197 million, or $0.48 per share.
Returned $401 million in cash to stockholders through dividends.
Declared a regular quarterly cash dividend of $0.98 per share payable in the third quarter.
Advanced the expected completion of the Diamond Green Diesel project at Port Arthur (DGD 3) to the first half of 2023 versus the prior estimate of the second half of 2023.
SAN ANTONIO--(BUSINESS WIRE)-- Valero Energy Corporation (NYSE: VLO, "Valero") today reported net income attributable to Valero stockholders of $162 million, or $0.39 per share, for the second quarter of 2021, compared to $1.3 billion, or $3.07 per share, for the second quarter of 2020. Excluding the adjustments shown in the accompanying earnings release tables, second quarter 2021 adjusted net income attributable to Valero stockholders was $197 million, or $0.48 per share, compared to an adjusted net loss attributable to Valero stockholders of $504 million, or $1.25 per share, in the second quarter of 2020. Second quarter 2020 adjusted results exclude the benefit from an after-tax lower of cost or market, or LCM, inventory valuation adjustment of $1.8 billion.
Refining
The refining segment reported $349 million of operating income for the second quarter of 2021, compared to $1.8 billion for the second quarter of 2020. The second quarter 2021 adjusted operating income was $361 million, compared to an adjusted operating loss of $383 million in the second quarter of 2020, which excludes the LCM inventory valuation adjustment. Refinery throughput volumes averaged 2.8 million barrels per day in the second quarter of 2021, which was 514 thousand barrels per day higher than the second quarter of 2020.
"Our system's flexibility and the team's relentless focus on optimization in a weak, but otherwise improving, margin environment enabled us to deliver positive earnings in the second quarter," said Joe Gorder, Valero Chairman and Chief Executive Officer. "More importantly, cash provided by operating activities more than covered our cash used in investing and financing activities for the quarter, even without the cash benefits from our receipt of the 2020 income tax refund and the proceeds from the sale of a portion of our interest in the Pasadena terminal."
Renewable Diesel
The renewable diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $248 million of operating income for the second quarter of 2021, compared to $129 million for the second quarter of 2020. Renewable diesel sales volumes averaged 923 thousand gallons per day in the second quarter of 2021, which was 128 thousand gallons per day higher than the second quarter of 2020.
"Our renewable diesel segment continues to perform exceptionally well," said Gorder. "The segment once again set records for renewable diesel operating income and sales volumes, highlighting DGD's ability to process a wide range of discounted feedstocks, combined with Valero's operational and technical expertise."
Ethanol
The ethanol segment reported $99 million of operating income for the second quarter of 2021, compared to $91 million for the second quarter of 2020. Excluding the LCM inventory valuation adjustment, the second quarter 2020 adjusted operating loss was $20 million. Ethanol production volumes averaged 4.2 million gallons per day in the second quarter of 2021, which was 1.9 million gallons per day higher than the second quarter of 2020.
Corporate and Other
General and administrative expenses were $176 million in the second quarter of 2021, compared to $169 million in the second quarter of 2020. The effective tax rate for the second quarter of 2021 was 37 percent, which is higher than the second quarter of 2020 due to the remeasurement of our deferred tax liabilities primarily as a result of an increase in the U.K. statutory tax rate that will be effective in 2023.
Investing and Financing Activities
Capital investments totaled $548 million in the second quarter of 2021, of which $252 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to our partner's 50 percent share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $417 million.
Net cash provided by operating activities was $2.0 billion in the second quarter of 2021. Included in this amount was a $1.1 billion favorable impact from working capital and $132 million associated with our joint venture partner's share of DGD's net cash provided by operating activities, excluding changes in DGD's working capital. Excluding these items, adjusted net cash provided by operating activities was $809 million.
Valero returned $401 million to stockholders through dividends for a payout ratio of 50 percent of adjusted net cash provided by operating activities in the second quarter of 2021.
Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines total payout ratio as the sum of dividends and stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD's net cash provided by operating activities, excluding changes in its working capital, attributable to our joint venture partner's ownership interest in DGD.
Liquidity and Financial Position
Valero ended the second quarter of 2021 with $14.7 billion of total debt and finance lease obligations and $3.6 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 37 percent as of June 30, 2021.
Strategic Update
Valero continues to advance economic projects that lower the carbon intensity of its products. The large-scale carbon sequestration project with BlackRock and Navigator is moving ahead with strong interest from additional parties in the binding open season. Valero is expected to be the anchor shipper with eight of Valero's ethanol plants connected to this system, producing a lower carbon intensity ethanol product to be marketed in low-carbon fuel markets.
In addition, Valero and its joint venture partner continue to steadily expand DGD's capacity to produce low-carbon intensity renewable diesel. The DGD plant expansion at St. Charles (DGD 2), which is expected to increase renewable diesel production capacity by 400 million gallons per year, remains on budget and is still on track to be completed and operational in the middle of the fourth quarter of 2021. The St. Charles expansion will also provide the capability to market 30 million gallons per year of renewable naphtha into low-carbon fuel markets. The new DGD plant at Port Arthur (DGD 3), which is expected to increase renewable diesel production capacity by 470 million gallons per year, is also progressing well and is now expected to commence operations in the first half of 2023, increasing DGD's total annual production capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
Refinery optimization projects that are expected to reduce cost and improve margin capture are progressing on schedule. The Pembroke Cogen project is on track to be completed in the third quarter of 2021 and the Port Arthur co*ker project is expected to be completed in 2023.
Capital investments attributable to Valero are forecasted to be $2.0 billion in 2021, of which approximately 60 percent is for sustaining the business and approximately 40 percent is for growth projects. Over half of Valero's 2021 growth capital is allocated to expanding the renewable diesel business.
"As demand for low-carbon fuels expands globally, we continue to expand our long-term competitive advantage through innovation in renewables," said Gorder. "In addition to quadrupling our renewable diesel production capacity in the next couple of years, we are evaluating and developing other renewable fuels opportunities with carbon sequestration, renewable naphtha, sustainable aviation fuel, and renewable hydrogen."
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, "Valero"), is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 500 company based in San Antonio, Texas, and owns 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 13 ethanol plants with a combined production capacity of approximately 1.7 billion gallons per year. The petroleum refineries are located in the United States (U.S.), Canada and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. Valero is also a joint venture partner in Diamond Green Diesel, which owns and operates a renewable diesel plant in Norco, Louisiana. Diamond Green Diesel is North America's largest biomass-based diesel plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland and Latin America. Approximately 7,000 outlets carry Valero's brand names. Please visit
www.investorvalero.com
for more information.
https://investorvalero.com/news/news-details/2021/Valero-Energy-Reports-Second-Quarter-2021-Results/default.aspx
# Acquisdata: Up to date business intelligence reports covering developments in the world's fastest growing industries
www.acquisdata.com
#
# Reportal: a vast archive of corporate documents from listed companies around the world
www.reportaldata.com
#
ACQ_REF: IS/28434/20210920/GBR/33/9
COPYRIGHT 2021 Acquisdata, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2022 Gale, Cengage Learning. All rights reserved.
