Link/Page Citation
H2 View - Sumitomo supports UK Oil & Gas' underground hydrogen storage plans - 29/5/2024
Japanese conglomerate Sumitomo Corporation is supporting UK Oil & Gas' (UKOG) planned underground hydrogen storage projects in Dorset and Yorkshire.
For the complete story, see:
https://www.h2-view.com/story/sumitomo-supports-uk-oil-gas-underground-hydrogen-storage-plans/2110511.article/
Daily Express - British Gas, EDF, Octopus and EON customers handed £329 off bills with one change - 29/5/2024
Customers at energy firms including British Gas, E.ON, EDF and Octopus Energy have been told they can avoid a £188 price rise on their energy bills - but need to act fast.
For the complete story, see:
https://www.express.co.uk/finance/personalfinance/1904858/British-Gas-EDF-Octopus-EON-customers-329-bills
Offshore Energy - UK subsea player lines up new gig in Brazil on deepwater oil project - 28/5/2024
UK-headquartered CRP Subsea, part of AIS, has found a new assignment off the coast of Brazil, which will enable it to deploy its modular buoyancy modules on a deepwater oil field development in the Santos Basin.
For the complete story, see:
https://www.offshore-energy.biz/uk-subsea-player-lines-up-new-gig-in-brazil-on-deepwater-oil-project/
Other Stories
Offshore Magazine - Skills passport provides entry for North Sea technicians into offshore wind - 28/5/2024
Upstream Online - Shell UK oil and gas field back in business following FPSO repairs - 28/5/2024
Offshore Magazine - On portfolio optimization quest, Vår Energi offloads stake in North Sea oil field - 27/5/2024
Daily Express - Gas bills could rise by £1,000 for millions in UK under new energy proposals - 26/5/2024
Bloomberg - UK Vote Means Sunak's Offshore Oil and Gas Bill to Be Dropped - 24/5/2024
Media Releases
No New Media Release.
Latest Research
Prioritizing Stewardship Of Decommissioned Onshore Oil And Gas Wells In The United Kingdom Based On Risk Factors Associated With Potential Long-Term Integrity - By Aaron Graham Cahill And Paula Sofia Gonzalez Samano.
Industry Overview
The Petrochemical Industry
Overviews of Leading Companies
Akzo Nobel N.V., (AEX: AKZA)
BP p.l.c. (LSE: BP)
Croda International Plc. (LSE: CRDA)
Dylon International
Elementis Plc (LSE: ELM)
Essar Group (UK) Ltd.
Exxon Mobil Corporation (NYSE: XOM)
Ineos Group Limited
Innovia Films (INNFILP)
Johnson Matthey plc (LSE: JMAT)
Noble Corporation plc (NYSE: NE)
The Phillips 66 Company (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
News and Commentary
H2 View - Sumitomo supports UK Oil & Gas' underground hydrogen storage plans - 29/5/2024
Japanese conglomerate Sumitomo Corporation is supporting UK Oil & Gas' (UKOG) planned underground hydrogen storage projects in Dorset and Yorkshire.
For the complete story, see:
https://www.h2-view.com/story/sumitomo-supports-uk-oil-gas-underground-hydrogen-storage-plans/2110511.article/
Daily Express - British Gas, EDF, Octopus and EON customers handed £329 off bills with one change - 29/5/2024
Customers at energy firms including British Gas, E.ON, EDF and Octopus Energy have been told they can avoid a £188 price rise on their energy bills - but need to act fast.
For the complete story, see:
https://www.express.co.uk/finance/personalfinance/1904858/British-Gas-EDF-Octopus-EON-customers-329-bills
Offshore Energy - UK subsea player lines up new gig in Brazil on deepwater oil project - 28/5/2024
UK-headquartered CRP Subsea, part of AIS, has found a new assignment off the coast of Brazil, which will enable it to deploy its modular buoyancy modules on a deepwater oil field development in the Santos Basin.
For the complete story, see:
https://www.offshore-energy.biz/uk-subsea-player-lines-up-new-gig-in-brazil-on-deepwater-oil-project/
Offshore Magazine - Skills passport provides entry for North Sea technicians into offshore wind - 28/5/2024
An initiative is underway in the UK to develop a prototype "energy skills passport."
For the complete story, see:
https://www.offshore-mag.com/energy-transition/article/55042748/skills-passport-provides-entry-for-north-sea-technicians-into-offshore-wind
Upstream Online - Shell UK oil and gas field back in business following FPSO repairs - 28/5/2024
Production has resumed at a UK North Sea oil and gas field operated by Shell following a seven-month shutdown.
For the complete story, see:
https://www.upstreamonline.com/safety/shell-uk-oil-and-gas-field-back-in-business-following-fpso-repairs/2-1-1651039
Offshore Magazine - On portfolio optimization quest, Vår Energi offloads stake in North Sea oil field - 27/5/2024
Norway's oil and gas player Vår Energi has set the wheels into motion to sell its interest in a field in the Norwegian sector of the North Sea, operated by Aker BP, a compatriot energy player.
For the complete story, see:
https://www.offshore-energy.biz/on-portfolio-optimization-quest-var-energi-offloads-stake-in-north-sea-oil-field/
Daily Express - Gas bills could rise by £1,000 for millions in UK under new energy proposals - 26/5/2024
Household gas bills could rise by a staggering £1,000 if proposals to transfer green levies go ahead.
For the complete story, see:
https://www.express.co.uk/finance/personalfinance/1903690/gas-bills-increase-energy-green-levies
Bloomberg - UK Vote Means Sunak's Offshore Oil and Gas Bill to Be Dropped - 24/5/2024
The legislation, a key part of a Tory push to be 'pragmatic' on climate targets, hasn't finished all its parliamentary stages
For the complete story, see:
https://www.bloomberg.com/news/articles/2024-05-24/uk-vote-means-sunak-s-offshore-oil-and-gas-bill-to-be-dropped
Media Releases
No New Media Release.
Latest Research
Prioritizing Stewardship Of Decommissioned Onshore Oil And Gas Wells In The United Kingdom Based On Risk Factors Associated With Potential Long-Term Integrity.
Aaron Graham Cahill
And Paula Sofia Gonzalez Samano.
Abstract
A portion of decommissioned oil and gas wells develop integrity failure resulting in release of methane, a potent greenhouse gas, into the surrounding soils and atmosphere. As the number of decommissioned wells grows during our transition to NetZero and technologies such as carbon capture and geological storage are implemented, it is essential that strategies for stewardship of this legacy subsurface infrastructure are developed. To formulate an abductive heuristic strategy for ongoing stewardship of onshore legacy wells in the United Kingdom (UK), we reviewed readily available data and identified five risk factors including regulatory frameworks, technologic aspects and construction characteristics, likely to influence long-term integrity. Subsequently we developed a prioritization methodology to segregate wells by ascending Tiers of decreasing potential long-term integrity. The prioritization method, which is supported by independent field observations, identifies 4% ( n = 84), 23% ( n = 501), 40% ( n = 867), 23% ( n = 497) and 9% ( n = 200) of decommissioned wells in the UK as Tiers 1 (i.e., greatest relative integrity) to 5 respectively, while none were assigned as Tier 6 (i.e., lowest relative integrity). Tier 5 wells, which are generally characterized as production wells completed before 1953 and either deviated or completed during a year of intense drilling activity, are found clustered in several locations in England. Overall, we infer that not all decommissioned onshore wells in the UK are equally likely to suffer integrity failure. Consequently, they can be differentiated into groups of varying potential risk in an abductive heuristic manner using basic well data, thereby facilitating effective and efficient stewardship.
https://www.sciencedirect.com/science/article/abs/pii/S175058362100311X
The Industry
Latest Update: 2024
History
The industry in the UK dates back to the 1850s
Onshore drilling and hydraulic fracturing (fracking) are established techniques
Recent resource estimates have shown that there could be 1,329 trillion cubic feet of shale gas potential in central England.
The onshore oil and gas industry in the UK has been in existence for over 150 years. Before the First World War, the UK got almost all its oil and gas from outside the country. Oil was discovered in Scotland in 1851 followed by gas in England in 1896 during construction of Heathfield rail station in Sussex, when natural water wells were being dug. The gas discovered went on to power the lights for the station.
During both world wars the need for Britain to produce its own oil to help the war effort rather than rely on imports became of real importance to the Government and legislation was introduced to enable companies to explore for hydrocarbons more readily.
In 1973, Wytch Farm Oilfield in Eastern Dorset was opened in an area of outstanding natural beauty and today it is the largest oilfield in Western Europe. At around the same time, it is believed the first hydraulic fracture in the UK was performed.
Onshore oil and gas activity started to accelerate again after the 1979 oil crisis. As prices rose, domestic production became increasingly important.
In June 2013, The British Geological Survey (BGS) in association with the Oil and Gas Authority (OGA) estimated that the area between Wrexham and Blackpool in the west and Nottingham and Scarborough in the east contained 1,329 trillion cubic feet (tcf) of shale gas compared to the annual consumption of natural gas in the UK of just over 3 tcf.
Source: UKOOG
https://www.ukoog.org.uk/onshore-extraction/history
Proud champions of the UK offshore energies industry
OEUK is the leading representative body for the UK offshore energy industries. It is a not-for-profit organisation with a pedigree stretching back almost half a century. Therefore, we are proud to inform, engage and champion the UK energy industries as part of a diverse national energy mix. Membership is open to all companies active in the UK continental shelf. From the largest producers and contractors through to SMEs working in low carbon energy.
Our aim is to ensure that the UK continental shelf remains an attractive place for energy producers so their supply chains to do business.
The representative body that champions the whole sector.
The definitive source of information about the UK upstream.
The gateway to industry networks and expertise.
We do this by:
Industry-led events, forums and conferences so OEUK members help shape the agenda and work collaboratively with industry peers to identify and promote good practices.
Through access to the latest market intelligence, comprehensive industry insights, award-winning guidelines and updates on legislative and policy developments.
Raising the profile of the UK offshore energy industries.
Promoting open dialogue across all sectors on activities, specifically technical, fiscal, safety, environmental and skills issues.
Engaging with governments, regulations, and other external organisations on initiatives and programs.
Offshore energies industry
The last year has seen many changes in the offshore energies industry. It was a year like no other. We have been at the heart of the country's transition to low-carbon energy during this time.
The UK offshore energies industry benefits our lives. It underpins modern society and supplies energy to heat homes, fuel for transporting goods and people worldwide, and the raw materials used to produce everyday items.
Its extensive supply chain employs thousands of people and significantly contributes to the UK economy with tax revenues, technology and exports.
Source: OGUK
https://oeuk.org.uk/who-we-are-offshore-energy-industry/
Welcome to UK Oil & Gas PLC
UKOG is an energy company focused upon oil and gas exploration and production in the UK and international onshore sectors, together with an increasing diversification into the hydrogen, geothermal and renewable energy space within the UK.
The Company aims to build a sustainable oil and gas production base that can act as a springboard to further worldwide petroleum opportunities and to build its UK hydrogen and geothermal energy businesses.
In May 2022, the Company's wholly-owned subsidiary, UK Energy Storage Ltd ("UKEn"), signed an Agreement to Lease with Portland Port Limited covering two sites at the former Royal Navy port in Dorset, with the intent to develop, subject to new planning consent and securing necessary development finance, a planned integrated Energy-Hub, centred around hydrogen-ready gas storage and a future green hydrogen generation capability.
The Company's current UK onshore oil & gas portfolio consists of direct and indirect interests in six oil and gas exploration, appraisal, development, and production assets, all situated within the Weald and Purbeck Wight Basins of southern England.
UKOG holds a majority operating interest in the producing Horse Hill oil field which has the necessary planning and environmental consents for further infill drilling in the Portland and underlying Kimmeridge reservoirs and for the 2022 recompletion of the Horse Hill-2z into a water re-injection well.
The Company also has a non-operating interest in the long established producing Horndean oil field and holds majority interests in four further UK onshore oil and gas discoveries, including the significant Loxley Portland gas discovery, assessed to be the second largest gas accumulation ever discovered and flow tested in the UK onshore.
UKOG's portfolio in Turkey consists of a 50% non-operated working interest in the 305 km² M47-b1, b2 licence (the Resan Licence) in south-east Turkey, containing the potentially significant undeveloped Basur-Resan oil discovery and a further identified exploration prospect.
Newly acquired 2D seismic data over the Basur-Resan anticline indicates the proposed Basur-3 sidetrack requires a longer and higher angle trajectory than previously envisaged, the joint venture is considering the merits and potential cost savings of drilling the simpler R-6 before the more complex B-3S. The Company awaits the operator's drilling cost comparisons, expected timings and final recommendations in this respect before confirming its position on the resumption of drilling.
Source: UKOG
https://www.ukogplc.com/
Leading Companies
Akzo Nobel N.V., (AEX: AKZA)
Since 1792, we've been supplying the innovative paints and coatings that help to color people's lives and protect what matters most. 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 use our expertise to sustain and enhance everyday life. Because we believe every surface is an opportunity. It's what you'd expect from a pioneering and long-established paints company that's dedicated to providing sustainable solutions and preserving the best of what we have today - while creating an even better tomorrow. Let's paint the future together.
https://www.akzonobel.com/en
AkzoNobel - AkzoNobel delivers solid full-year 2023 results; Q4 confirms positive momentum in margin expansion and deleveraging, to continue in 2024 - 7/2/2024
Akzo Nobel N.V. (AKZA; AKZOY) publishes results for Q4 and full-year 2023
Highlights Q4 2023 (compared with Q4 2022)
Revenue in constant currencies up 4% on higher volumes and pricing (reported revenue -3%)
Operating income improved to [euro]214 million (2022: [euro]103 million)
Adjusted operating income at [euro]221 million (2022: [euro]126 million); ROS at 8.7% (2022: 4.8%); [euro]244 million before [euro]23 million negative impact from hyperinflation accounting
Net cash from operating activities positive [euro]574 million (2022: [euro]291 million
Highlights full-year 2023 (compared with full-year 2022)
Revenue in constant currencies up 5% driven by pricing (reported revenue -2%)
Operating income improved to [euro]1,029 million (2022: [euro]708 million)
Adjusted operating income at [euro]1,074 million (2022: [euro]789 million), despite [euro]77 million adverse currency effects from translation; ROS at 10.1% (2022: 7.3%)
Adjusted EBITDA at [euro]1,429 million (2022: [euro]1,157 million), despite [euro]92 million adverse currency effects from translation
Net cash from operating activities positive [euro]1,126 million (2022: [euro]263 million)
Net debt to EBITDA leverage ratio improved to 2.7 (2022: 3.8)
Final dividend proposed of [euro]1.54 per share (2022: [euro]1.54)
AkzoNobel CEO, Greg Poux-Guillaume, commented:
"2023 was a year in which AkzoNobel delivered a clear rebound in performance. Our volumes stabilized, outperforming many of our markets, and our profits rebounded on resilient pricing and the first effects of raw material deflation. In parallel, our efforts to transform our company gathered pace, allowing us to absorb persistent global inflation and unfavorable currency effects to beat the targets we set ourselves at the beginning of the year.
"We have good momentum heading into 2024 and we expect to resume growing volumes while delivering further margin - and profit - expansion. We aim to deliver [euro]1.50 to [euro]1.65 billion adjusted EBITDA for 2024, based on current market conditions and to achieve a net debt to EBITDA leverage ratio to around 2.3 times by the end of 2024."
Outlook mid-term
For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. The company aims to lower its leverage to around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.
Recent highlights
Pioneering low-energy powder coating launched
AkzoNobel introduced an industry-first architectural powder coating which can be cured at temperatures as low as 150°C - while still being Qualicoat class one certified. Curing at temperatures 30°C lower than traditional powder coatings means that Interpon D1036 Low-E can help customers cut energy consumption by as much as 20%. It can also cure up to 25% faster than conventional powders.
First bio-based interior coating for KIA Motors created with rapeseed and pine rosin
KIA Motors is using bio-based paint supplied by AkzoNobel for the inside of its new EV9 electric SUV. It's the first time the vehicle manufacturer has specified an interior bio-based coating. Two kinds of biorosin were used to create the product, one extracted from rapeseed, the other from pine rosin.
Major investment in coatings technology to support beverage can industry transition
AkzoNobel launched next generation coatings technology which will help the beverage can industry move to products free from materials of concern. Our Packaging Coatings business launched the first two products in its new AccelstyleTM range which are BPx-NI (free of intentionally added bisphenols). Designed for the exterior of conventional two-piece aluminum beverage cans, both are free from (intentionally added) bisphenols. AkzoNobel is also building a new production plant in Spain at our Vilafranca site, which will produce BPx-NI coatings for the metal packaging industry in Europe, Middle East and Africa.
About this media release
This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full quarterly report. The quarterly report provides additional information, including the IAS34 condensed consolidated financial statements. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These condensed financial statements have been authorized for issue. All figures in this media release and in the AkzoNobel quarterly report are unaudited.
Forward looking statements are based on organic volumes and constant currencies, and assume no significant market disruptions. Please read the Safe Harbor statement in the full quarterly report.
The report for the fourth quarter and full-year can be viewed and downloaded here:
https://akzo.no/Q4-2023-results
ROS, adjusted OPI, adjusted EPS, EBITDA and Adjusted EBITDA 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 quarterly report.
Constant currencies calculations exclude the impact of changes in foreign exchange rates by retranslating the prior year local currency amounts into euro at the current year's foreign exchange rates.
Adjusted operating income = operating income excluding identified items.
Return on sales (ROS) is adjusted operating income as percentage of revenue.
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
Since 1792, we've been supplying the innovative paints and coatings that help to color people's lives and protect what matters most. 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 use our expertise to sustain and enhance the fabric of everyday life. Because we believe every surface is an opportunity. It's what you'd expect from a pioneering and long-established paints company that's dedicated to providing sustainable solutions and preserving the best of what we have today - while creating an even better tomorrow. Let's paint the future together.
https://www.akzonobel.com/en/media/latest-news---media-releases-/q4-2023
BP p.l.c (LSE: BP)
bp's purpose is to reimagine energy for people and our planet. It has set out an ambition to be a net zero company by 2050, or sooner and help the world get to net zero, and a strategy for delivering on that ambition. For more information visit bp.com.
https://www.bp.com/
BP Oil Plc. - Fourth quarter 2023 results - 6/2/2024
Highlights
Resilient financial and operational performance: 2023 Operating cash flow $32.0bn; net debt reduced to $20.9bn
Executing with discipline: Started up four major projects* in 2023, including Seagull in 4Q; Acquisition of TravelCenters ofAmerica; Agreement to acquire Lightsource bp
Growing shareholder distributions: Dividend per ordinary share 7.270 cents per share +10% versus 4Q22; 4Q23 $1.75bn share buyback announced; committed to announcing $3.5bn share buyback for the first half of 2024
IOC to IEC - destination is unchanged: we will deliver as a simpler and more focused company
Underlying replacement cost profit* $3.0 billion
Underlying replacement cost profit for the quarter was $3.0 billion, compared with $3.3 billion for the previous quarter. Compared to the third quarter 2023, the result reflects a strong gas marketing and trading result, higher oil realizations including the favourable impact of price-lags on Gulf of Mexico and UAE realizations, higher gas realizations, significantly lower industry refining margins albeit with a smaller decrease in realized refining margins, a weak oil trading result, higher exploration write-offs, and a higher level of refining turnaround activity. An underlying effective tax rate (ETR)* of 42% in the fourth quarter brings the full year underlying ETR to 39%.
Reported profit for the quarter was $0.4 billion, compared with $4.9 billion for the third quarter 2023. The reported result for the fourth quarter is adjusted for inventory holding losses* of $1.2 billion (net of tax) and a net adverse impact of adjusting items* of $1.5 billion (net of tax) to derive the underlying replacement cost profit. Adjusting items pre-tax include impairments of $4.6 billion, largely as a result of changes in the group's price and discount rate assumptions, activity phasing, economic forecasts (in particular related to the Gelsenkirchen refinery) and portfolio composition, and favourable fair value accounting effects* of $2.6 billion.
Operating cash flow* $9.4 billion and net debt* reduced to $20.9 billion
Operating cash flow in the quarter of $9.4 billion includes a working capital* release (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items) of $2.1 billion (see page 28).
Capital expenditure* in the fourth quarter was $4.7 billion and total 2023 capital expenditure, including inorganic capital expenditure* was $16.3 billion.
The $1.5 billion share buyback programme announced with the third quarter results was completed on 2 February 2024.
Net debt was reduced by $1.4 billion to $20.9 billion at the end of the fourth quarter.
Further $1.75 billion share buyback announced for 4Q23; $3.5 billion for first half 2024
A resilient dividend is bp's first priority within its disciplined financial frame, underpinned by a cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real). For the fourth quarter, bp has announced a dividend per ordinary share of 7.270 cents, up 10% from the fourth quarter of 2022.
bp is committed to maintaining a strong investment grade credit rating. Through the cycle, we are targeting to further improve our credit metrics within an 'A' grade credit range.
bp continues to invest with discipline and a returns focused approach in our transition growth engines* and in our oil, gas and refining businesses. For 2024 and 2025 we expect capital expenditure of around $16 billion per annum, in line with our medium term target of $14-18 billion.
Related to the fourth quarter results, bp intends to execute a $1.75 billion share buyback prior to reporting first quarter results. Furthermore, bp is committed to announcing $3.5 billion for the first half of 2024. At current market conditions and subject to maintaining a strong investment grade credit rating, bp plans share buybacks of at least $14 billion through 2025 as part of our commitment, on a point forward basis, to returning at least 80% of surplus cash flow* to shareholders.
In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and maintaining a strong investment grade credit rating.
Continued progress in transformation to an integrated energy company
In resilient hydrocarbons, bp announced the start-up of major project* Seagull, expected to add around 15 thousand barrels of oil equivalent per day of net production by 2025. In Gulf of Mexico bp sanctioned Argos Southwest Expansion project and expansion of the Great White development project. In Brazil, bp was awarded the Tupinambá block located in the Santos pre-salt basin. Under aim 4, we met our first goal of deploying our methane measurement approach to all our operated upstream oil and gas assets by the end of 2023.
In convenience and mobility, bp continued to progress its convenience strategy, delivering a record convenience gross margin* for a fourth quarter, bringing full year to 9%
(a)
excluding TravelCenters of America, underpinned by customer offers driving stronger margin mix, continued roll-out of strategic conveniences sites*, and strategic convenience partnerships. bp and Iberdrola formed a joint venture to accelerate EV charging infrastructure roll-out in Spain and Portugal, with plans to invest up to [euro]1 billion and install 5,000 fast EV charge points* by 2025 and around 11,700 by 2030.
In low carbon energy, bp has agreed to acquire the 50.03% interest it does not already own in Lightsource bp, one of the world's leading developers and operator of utility-scale solar and battery storage assets. This transaction is expected to complete in the second half of 2024, subject to regulatory approvals.
In November, bp announced that it will be expanding the use of generative AI through the use of Copilot for Microsoft 365 - bp is one of the first companies globally to act as a launch partner for 'intelligent AI assistant'.
https://www.bp.com/en/global/corporate/news-and-insights/press-releases/fourth-quarter-2023-results.html
Croda International plc (LSE: CRDA)
We create, make and sell speciality chemicals that industries and consumers everywhere depend on.
Established in 1925, we are driven by a focus on our customers, collaborative working, a proactive attitude and the ability to think differently. We encourage our people to work as a unified global team and alongside our customers to find new and sustainable ways to satisfy unmet needs. This means over 6,100 passionate employees in manufacturing sites, laboratories and offices worldwide work with a shared Purpose: using Smart science to improve lives[TM].
https://www.croda.com/en-gb
Croda International Plc - Half year 2022 results - 29/7/2022
Our most recent results for the half year 2022 were announced on the 29 July 2022:
Excellent first half performance
Delivered record sales, margin and profit
Sales up 21%, driven by pricing and improved mix
Adjusted profit before tax up 26%, reflecting sales growth and higher return on sales, up 70 bps to 26.6% (2021: 25.9%)
IFRS profit before tax of £636.5m (2021: £204.1m), including £360.6m profit on strategic divestment
Lower free cash flow reflecting investment in working capital to support sales growth
Strong operating model underpinning strategic progress
Strength and depth of portfolio - growth in adjusted profit delivered across Croda businesses
Continued recovery of unprecedented raw material and cost inflation
Transition to pure-play Consumer Care and Life Sciences business
Divestment of majority of Performance Technologies and Industrial Chemicals ("PTIC"; excludes Sipo in China in which Croda has a 65% shareholding)
Creates stronger margin, higher return, less cyclical and lower carbon intensive business
Increases proportion of sales from New and Protected Products ("NPP")
Redeployment of divestment proceeds underway - enhanced organic investment programme to drive future growth, supported by up to £75m of government co-investment to expand capabilities in pharmaceutical delivery systems
"This is an excellent first half performance, with record sales, margin and profit driven by the strength of our operating model, which enabled continued recovery of unprecedented cost inflation, and the ongoing successful implementation of our strategy.
"A strong Consumer Care performance saw expanded sales of our sustainable technologies, increased geographic coverage in fragrances and margin expansion. The increasing depth and diversity of our Life Sciences portfolio was evident in a strong result in Crop Protection, whilst Health Care built on an exceptional 2021 performance and is developing an exciting pipeline of non-COVID applications.
"With the successful divestment of the majority of our industrials business, our transition to a pure-play Consumer Care and Life Sciences business continues. Croda is becoming a stronger margin, higher return, less cyclical and lower carbon intensive business. Our focused platform and strategy are enhancing both our full year expectations and our medium-term growth prospects."
https://www.croda.com/en-gb/investors/recent-financial-performance-and-kpis
Elementis Plc (LSE: ELM)
We are a global specialty chemicals company. We offer performance-driven additives that help create innovative formulations for consumer and industrial applications. As a FTSE 250 company, listed on the London Stock Exchange, we employ 1,300 people globally. We have a nearly 200-year tradition of creating ingredients that add value to everyday consumer and industrial products. Here you can see an overview of our competencies, our purpose and values and get to know our management team.
https://www.elementis.com/
ELEMENTIS plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 - 29/7/2021
Strong financial performance improvement, profit before tax up 165%
Revenue up 17% (up 12% on an underlying basis*) from COVID-19 impacted H1 2020 ($387m) to $452m driven by improved industrial demand, customer restocking and currency tailwinds.
Adjusted operating profit up 29% (21% on an underlying basis*) to $54m with strong operational performance and underlying revenue growth partially offset by cost increases. Profit after tax of $28m, up from a loss of $51m in the prior year period due to performance improvement and a $66m reduction in adjusting items1.
Net debt4 ($415m) in line with 31 December 2020 ($408m) as earnings growth and disciplined working capital management offset $20m EU state aid payment. Leverage ratio5 (3.0x net debt/EBITDA) declining and forecast to reduce further during the second half.
Further strategic progress, well positioned for sustainable growth and value creation
Coatings revenue up 15% on an underlying basis* with adjusted operating margins increasing to 17% - reflective of a more efficient and higher quality business with attractive growth potential.
Good progress on Innovation, Growth and Efficiency strategy to deliver medium term Group performance objectives. Delivered $25m of revenue from new business opportunities, 12 new product launches and increased new products** from 11% to 13% of sales.
On course for targeted $10m underlying cost savings in 2021, offset by the reversal of $10m of temporary COVID-19 related savings in 2020. India plant on track to start up in Q3 with efficiency benefits in 2022 and beyond.
Outlook unchanged, in line with expectations; multi-year recovery in progress
Full year outlook positive and unchanged, with the Group expected to deliver an improved financial performance and a reduction in leverage, in line with expectations.
The second half of the year is expected to follow a normal level of seasonality, with continued demand recovery and self-help actions offset by short term margin headwinds from accelerating cost inflation and supply chain constraints.
While the pace of recovery depends on COVID-19 developments, a continued strengthening of demand combined with further strategic progress are expected to drive a material multi-year performance improvement and delivery of the Group's medium term financial objectives.
Business performance overview
Personal Care revenue down 5% on an underlying basis* (down 1% on a reported basis) at $89m. Adjusted operating profit down 8% on an underlying basis* (down 4% on a reported basis) to $19m, representing a 21.6% margin, modestly down on the prior year (22.4%).
Pace of category demand recovery for cosmetics and anti-perspirant deodorants uncertain due to ongoing COVID-19 related social and travel restrictions.
Margins resilient at 21.6%, with cost savings offset by product mix and lower volumes.
Coatings revenue, which now includes the Energy business, up 15% on an underlying basis* (21% on a reported basis), from $162m to $197m. Adjusted operating profit of $33m significantly up on prior year ($21m), with adjusted operating profit margins up from 12.7% to 16.7%.
Strong industrial coatings volume recovery across all geographies and continued resilience in decorative demand.
Margin improvement reflective of improved product portfolio, new business wins and fixed cost savings from Charleston/St Louis consolidation, partially offset by accelerating raw material cost inflation.
Talc revenue up 14% on an underlying basis* to $77m (26% on a reported basis). Adjusted operating profit up 18% on underlying basis (27% on a reported basis) to $8m, with margins in line with the prior year (10.2%) at 10.3%.
Strong industrial talc growth driven by automotive production recovery, new business wins and geographic expansion, partially offset by continued weak paper demand.
Margins stable with improved volumes offset by temporary weather-related cost increases.
Chromium revenue up 16% to $90m. Adjusted operating profit up 48% to $5m.
Revenue improvement driven by demand recovery across industrial end markets, including metal plating and construction applications, partially offset by weaker year on year pricing.
Margins up from 4.0% to 5.1% with improved fixed cost absorption due to higher volumes offset by pricing and supply chain bottlenecks.
Commenting on the results, CEO, Paul Waterman said:
"We have made a strong start to the year benefiting from the combination of focused strategy execution and improved industrial demand. While the significant demand recovery has triggered ongoing supply chain challenges and accelerating cost inflation across the globe, we are well positioned to manage these impacts. Overall, the Group has encouraging trading momentum and is on track to deliver an improved financial performance and a reduction in leverage, in line with expectations.
Elementis is focused on developing high quality businesses that have enduring competitive advantages in structural growth markets. In the coming years, as end markets continue to recover and our Innovation, Growth and Efficiency strategy continues to be successfully executed, we are well positioned for material performance improvement that will support the delivery of our medium term financial ambitions."
https://www.elementis.com/sites/default/files/2021-07/FY%2021%20Interims%20%28FINAL%29.pdf
Essar Group (UK) Ltd.
Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail. Essar Oil owns India's second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally. It has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. There are more than 1,600 Essar-branded oil retail outlets in various parts of India.
Essar is a US$ 39-billion multinational corporation with investments in Steel, Energy, Infrastructure and Services. With operations in more than 25 countries, it employs over 73,000 people.
https://www.essar.com/
Essar Port Annual Reports - FINANCIAL RESULTS
MANAGEMENT DISCUSSION & ANALYSIS
The discussion and analysis hereunder covers Company's & its Subsidiary's financial performance and business outlook for the year 2020 - 2021. This outlook is based on assessment of the current business environment and Government policies. The change in future economic and other developments are likely to cause variation in this outlook.
Economic Outlook:
One year into the COVID-19 pandemic, the accumulating human toll continues to raise concerns, even as growing vaccine coverage lifts sentiment After an estimated contraction of -3.3 percent in 2020, the global economy is projected to grow at 6 percent in 2021, moderating to 4.4 percent in 2022. The contraction for 2020 is 1.1 percentage points smaller than projected in the October 2020 World Economic Outlook (WEO), reflecting the higher-than-expected growth outturns in the second half of the year for most regions after lockdowns were eased and as economies adapted to new ways of working. The projections for 2021 and 2022 are 0.8 percentage point and 0.2 percentage point stronger than in the October 2020 WEO, reflecting additional fiscal support in a few large economies and the anticipated vaccine-powered recovery in the second half of the year. Global growth is expected to moderate to 3.3 percent over the medium term-reflecting projected damage to supply potential and forces that predate the pandemic, including aging-related slower labor force growth in advanced economies and some emerging market economies.
International Monetary Fund (IMF) raised its growth forecast for Indian economy by 100 basis points to 12.5 per cent for fiscal year 2021-22. In its latest edition of World Economic Outlook, IMF said it expects India's GDP to grow 12.5 per cent in FY22, the highest among emerging and advanced economies. GDP growth for FY23 is pegged at 6.9 per cent. India is the only country expected to register a double-digit growth this fiscal. The World Bank has scaled up its projections for India's economic growth by a massive 4.7 percentage points to 10.1 per cent for 2021-22 due to strong rebound in private consumption and investment growth. The Bank had pegged the GDP growth at 5.4 per cent for the country in its January report.
Industry Outlook: Indian Scenario:
Cargo traffic at Indian ports declined by 5.5% to 1,247 MMTPA during April-March'21 compared to 1,320 MMTPA last year, owing to the demand and supply chain disruptions led on account of the synchronized global economic slowdown and lockdowns caused due to the outbreak of COVID -19 pandemic. There was steep decline in worldwide economic activity and trade which had a direct bearing on the cargo traffic handled at India's ports. The decline was sharper during April-August'20 leading to a progressive improvement in the volume of cargo traffic thereafter at the major and non-major ports of the country. This was synchronous with recovery of economic activity and trade witnessed domestically as well as globally.
Indian Ports Sector recorded a capacity of 2,518 MMTPA at the end of FY21.
Indian Ports Sector capacity utilization stood at ~50% in FY 21
Aggregate cargo traffic handled by India's ports in FY21 was 1,247 MMTPA implying a CAGR of 2.54% during FY16-21.
Major ports handled 54% of cargo traffic while Non-Major ports handled 46%.
The traffic handled at Major Ports fell by 4.7% to 672 MMTPA whereas the traffic handled at Non-Major Ports contracted by 6.5% to 575 MMTPA.
Policy & Strategic Initiatives by Government to boost Indian Economy and Maritime Sector
Launch of Maritime India Vision 2030 to accelerate growth of Indian Maritime Sector over next decade
Launch of National Infrastructure Pipeline to propel India to USD 5 Trillion economy and become "Atmanirbhar"
Major Ports Act 2021 which will enable flexibility, selfgovernance and swiftness in decision making.
Focus on PPP Projects: Public Private Partnerships will not only enhance efficiency but also unlock value in the port sector.
Launch of National Monetization Pipeline for enhanced and sustainable infrastructure financing in the country
Plan of National Logistics Portal (Marine) with end-to-end logistics solutions to help exporters, importers and service providers.
Launch of Production linked Incentive Schemes for various Industries to boost manufacturing
Economic Stimulus to ride COVID-19 wave
Garib Kalyan Yojana to boost rural employment
Incentives being offered for the sectors such as white goods manufacturing, pharmaceutical, specialized steel, automobiles, telecom, textile, food products, solar photovoltaic and cell battery. The move will boost domestic manufacturing and economic development.
http://www.essarports.com/upload/pdf/Essar_Ports_Annual_Report_2020-21.pdf
Exxon Mobil Corporation (NYSE: XOM)
ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society's evolving needs.
The corporation's primary businesses - Upstream, Product Solutions and Low Carbon Solutions - provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.
https://corporate.exxonmobil.com/
ExxonMobil - ExxonMobil Announces First-Quarter 2024 Results - 26/4/2024
Generated strong first-quarter earnings of $8.2 billion and $14.7 billion of cash flow from operating activities
Achieved quarterly gross production of more than 600,000 oil-equivalent barrels per day in Guyana and reached a final investment decision on the sixth major development
Grew performance chemical sales volumes and delivered record first-quarter refining throughput 1 while maintaining excellent turnaround performance
Reduced operated methane emissions intensity by more than 60% since 2016 2
Investing in technology to extend our reach to new high-value, high-growth markets including advanced recycling, Proxxima TM , carbon materials and direct air capture of carbon dioxide
SPRING, Texas--(BUSINESS WIRE)-- Exxon Mobil Corporation (NYSE:XOM):
Results Summary
Dollars in millions (except per share data)
1Q24
4Q23
Change vs 4Q23
1Q23
Change vs 1Q23
Earnings (U.S. GAAP)
8,220
7,630
+590
11,430
-3,210
Earnings Excluding Identified Items (non-GAAP)
8,220
9,963
-1,743
11,618
-3,398
Earnings Per Common Share ³
2.06
1.91
+0.15
2.79
-0.73
Earnings Excluding Identified Items Per Common Share (non-GAAP) ³
2.06
2.48
-0.42
2.83
-0.77
Capital and Exploration Expenditures
5,839
7,757
-1,918
6,380
-541
Exxon Mobil Corporation today announced first-quarter 2024 earnings of $8.2 billion, or $2.06 per share assuming dilution. Capital and exploration expenditures were $5.8 billion, consistent with the company's full-year guidance of $23 billion to $25 billion.
"Our strategy and focus on execution excellence is creating significant value for society and our shareholders," said Darren Woods, chairman and chief executive officer.
"We delivered a strong quarter with continued growth in advantaged assets, such as Guyana, where production continues at higher-than-expected levels, contributing to historic economic growth for the Guyanese people. In Product Solutions, our strong turnaround performance on cost and schedule helped drive record first-quarter refining throughput 1 . Looking ahead, we're making great progress on our plans to grow the earnings power of our existing businesses from investments in advantaged assets and higher-value products, and further reduce structural costs. We are investing in technology to transform the molecules derived from oil and natural gas into products that extend our reach into new, high-value, high-growth markets to capture even greater value from our core competitive advantages."
1 Highest first-quarter global refinery throughput (2000-2024) since Exxon and Mobil merger in 1999, based on current refinery circuit.
2 Based on year-end 2023 data.
3 Assuming dilution.
Financial Highlights
First-quarter earnings were $8.2 billion versus $11.4 billion in the first quarter of 2023. Earnings excluding identified items were $8.2 billion compared to $11.6 billion in the same quarter last year. Earnings decreased as industry refining margins and natural gas prices came down from last year's highs to trade within the ten-year historical range 1 . Timing effects from unsettled derivative mark-to-market impacts and other primarily non-cash impacts from tax and inventory adjustments as well as divestments contributed to the lower earnings. Strong advantaged volume growth primarily from Guyana and the Beaumont refinery expansion, and structural cost savings helped to offset lower base volumes from divestments, unfavorable entitlements and government-mandated curtailments, and higher expenses from scheduled maintenance.
Achieved $10.1 billion of cumulative Structural Cost Savings versus 2019 with an additional $0.4 billion during the quarter. The company plans to deliver cumulative savings totaling $15 billion through the end of 2027.
Generated strong cash flow from operations of $14.7 billion and free cash flow of $10.1 billion in the first quarter. Shareholder distributions of $6.8 billion in the quarter included $3.8 billion of dividends and $3.0 billion of share repurchases. The share-repurchase program was paused briefly following the Pioneer S-4 filing and resumed after Pioneer's special shareholder meeting. The annual pace of share repurchases will increase to $20 billion per year after the transaction closes, assuming reasonable market conditions.
The Corporation declared a second-quarter dividend of $0.95 per share, payable on June 10, 2024, to shareholders of record of Common Stock at the close of business on May 15, 2024.
The company's debt-to-capital ratio was 16% and the net-debt-to-capital ratio was 3%, reflecting a period-end cash balance of $33.3 billion.
* The earnings factors have been updated to provide additional visibility into drivers of our business results starting this first quarter of 2024. The company evaluates these factors periodically to determine if any enhancements may provide helpful insights to the market. See page 8 for definitions of these new factors.
1 10-year range includes 2010-2019, a representative 10-year business cycle which avoids the extreme outliers in both directions that the market experienced in the past four years.
.
EARNINGS AND VOLUME SUMMARY BY SEGMENT
Upstream
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Earnings/(Loss) (U.S. GAAP)
United States
1,054
84
1,632
Non-U.S.
4,606
4,065
4,825
Worldwide
5,660
4,149
6,457
Earnings/(Loss) Excluding Identified Items (non-GAAP)
United States
1,054
1,573
1,632
Non-U.S.
4,606
4,693
4,983
Worldwide
5,660
6,266
6,615
Production (koebd)
3,784
3,824
3,831
Upstream first-quarter earnings were $5.7 billion, a decrease of $797 million compared to the same quarter last year. The prior-year period was negatively impacted by tax-related identified items. Excluding identified items, earnings decreased $955 million driven by a 32% decrease in natural gas realizations and other primarily non-cash impacts from tax and inventory adjustments as well as divestments. These factors were partially offset by a 4% increase in liquids realizations and less unfavorable timing effects mainly from derivatives mark-to-market impacts. Net production was 47,000 oil-equivalent barrels per day lower than the same quarter last year with the growth in advantaged Guyana volumes more than offsetting the earnings impact from lower base volumes due to divestments, government-mandated curtailments and unfavorable entitlement effects. Excluding the impacts from divestments, entitlements, and government-mandated curtailments, net production grew 77,000 oil-equivalent barrels per day driven by the start-up of the Payara development in Guyana. Payara reached nameplate capacity of 220,000 barrels per day in mid-January, ahead of schedule, demonstrating excellence in project execution and operations.
Compared to the fourth quarter, earnings increased $1.5 billion driven by the absence of identified items of $2.1 billion mainly from the impairment of the idled Santa Ynez Unit assets in California. Earnings excluding identified items decreased from $6.3 billion to $5.7 billion. Advantaged asset volume growth from Guyana provided a partial offset to lower natural gas realizations and lower base volumes due to unfavorable sales timing and entitlement impacts. Net production in the first quarter was 3.8 million oil-equivalent barrels per day, a decrease of 40,000 oil-equivalent barrels per day compared to the fourth quarter. Excluding divestments, entitlements and government-mandated curtailments, net production increased 57,000 oil-equivalent barrels per day.
The company announced a final investment decision for the Whiptail development in Guyana. This is the sixth offshore project and is expected to add approximately 250,000 oil-equivalent barrels per day of gross capacity with start-up targeted by year-end 2027. Construction is underway on the Floating Production Storage and Offloading vessels for the Yellowtail and Uaru projects, with Yellowtail anticipated to start production in 2025 and Uaru targeted for 2026. In addition, one new exploration discovery was made this year in the Stabroek block.
In October 2023, ExxonMobil announced an agreement to merge with Pioneer Natural Resources in a $59.5 billion all-stock transaction 1 . The transaction was approved by Pioneer shareholders. The transaction close is anticipated in the second quarter of 2024, pending regulatory approval.
1 Based on the October 5, 2023 closing price for ExxonMobil shares and the fixed exchange rate of 2.3234 per Pioneer share.
Energy Products
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Earnings/(Loss) (U.S. GAAP)
United States
836
1,329
1,910
Non-U.S.
540
1,878
2,273
Worldwide
1,376
3,207
4,183
Earnings/(Loss) Excluding Identified Items (non-GAAP)
United States
836
1,137
1,910
Non-U.S.
540
1,881
2,303
Worldwide
1,376
3,018
4,213
Energy Products Sales (kbd)
5,232
5,357
5,277
Energy Products first-quarter earnings totaled $1.4 billion, a decrease of $2.8 billion compared to the same quarter last year due to weaker industry refining margins and unfavorable timing effects mainly from derivatives mark-to-market impacts. Earnings improvements from the advantaged Beaumont refinery expansion project, as well as structural cost savings, partly offset lower base volumes from divestments and higher scheduled maintenance expenses. Strong turnaround performance reduced labor costs and facility downtime, which helped to mitigate expenses related to the scheduled maintenance.
Compared to the fourth quarter, earnings decreased $1.8 billion driven by timing effects, as well as lower base volumes and higher expenses from scheduled maintenance. Earnings were also reduced by other primarily non-cash effects from tax and inventory adjustments. These factors were partly offset by improved industry refining margins. Absence of fourth-quarter identified items decreased earnings by $189 million.
Chemical Products
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Earnings/(Loss) (U.S. GAAP)
United States
504
478
324
Non-U.S.
281
(289)
47
Worldwide
785
189
371
Earnings/(Loss) Excluding Identified Items (non-GAAP)
United States
504
446
324
Non-U.S.
281
131
47
Worldwide
785
577
371
Chemical Products Sales (kt)
5,054
4,776
4,649
Chemical Products earnings were $785 million, an increase of $414 million compared to the same quarter last year. Despite continued bottom-of-cycle conditions, results improved with higher margins due to lower North American feed costs and higher margins from performance chemicals more than offsetting the decline in industry margins for polyethylene and polypropylene. Earnings were further supported by advantaged performance product volumes growth, reflecting advantaged investments including the recent Baytown Chemical Expansion. Base volumes also improved from lower scheduled maintenance and strong reliability during U.S. Gulf Coast weather events.
Compared to the fourth quarter, earnings improved by $596 million. The absence of prior quarter identified items mainly associated with asset impairments and other financial reserves improved earnings by $388 million. Earnings excluding identified items increased $208 million from the fourth quarter driven by higher base volumes and improved margins from strengthening of the North American feed advantage.
Specialty Products
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Earnings/(Loss) (U.S. GAAP)
United States
404
386
451
Non-U.S.
357
264
323
Worldwide
761
650
774
Earnings/(Loss) Excluding Identified Items (non-GAAP)
United States
404
374
451
Non-U.S.
357
369
323
Worldwide
761
743
774
Specialty Product Sales (kt)
1,959
1,839
1,940
Specialty Products earnings were $761 million, compared to $774 million in the same quarter last year. Improved finished lubes margins and structural cost savings offset weaker basestock margins and higher base expenses.
Earnings increased $111 million versus the fourth quarter. The absence of identified items in the quarter improved earnings by $93 million. Earnings benefited from stronger finished lubes margins due to lower feed costs and growth in high-value product sales. Seasonally higher base sales volumes and seasonally lower marketing expenses also contributed to the higher earnings. These factors were offset by weaker basestock margins and the absence of favorable year-end inventory impacts.
Corporate and Financing
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Earnings/(Loss) (U.S. GAAP)
(362)
(565)
(355)
Earnings/(Loss) Excluding Identified Items (non-GAAP)
(362)
(641)
(355)
Corporate and Financing reported first-quarter net charges of $362 million, an increase of $7 million from the same quarter last year.
Net charges decreased $203 million versus the fourth quarter driven by lower financing and corporate costs, partly offset by the absence of favorable tax-related identified items.
.
CASH FLOW FROM OPERATIONS AND ASSET SALES EXCLUDING WORKING CAPITAL
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Net income/(loss) including noncontrolling interests
8,566
8,012
11,843
Depreciation and depletion (includes impairments)
4,812
7,740
4,244
Changes in operational working capital, excluding cash and debt
2,008
(2,191)
(302)
Other
(722)
121
556
Cash Flow from Operating Activities (U.S. GAAP)
14,664
13,682
16,341
Proceeds from asset sales and returns of investments
703
1,020
854
Cash Flow from Operations and Asset Sales (non-GAAP)
15,367
14,702
17,195
Less: Changes in operational working capital, excluding cash and debt
(2,008)
2,191
302
Cash Flow from Operations and Asset Sales excluding Working Capital (non-GAAP)
13,359
16,893
17,497
FREE CASH FLOW
Dollars in millions (unless otherwise noted)
1Q24
4Q23
1Q23
Cash Flow from Operating Activities (U.S. GAAP)
14,664
13,682
16,341
Additions to property, plant and equipment
(5,074)
(6,228)
(5,412)
Additional investments and advances
(421)
(1,854)
(445)
Other investing activities including collection of advances
215
1,348
78
Proceeds from asset sales and returns of investments
703
1,020
854
Free Cash Flow (non-GAAP)
10,087
7,968
11,416
CALCULATION OF STRUCTURAL COST SAVINGS
Dollars in billions (unless otherwise noted)
Twelve Months
Ended December 31,
Three Months
Ended March 31,
2019
2023
2023
2024
Components of Operating Costs
From ExxonMobil's Consolidated Statement of Income
(U.S. GAAP)
Production and manufacturing expenses
36.8
36.9
9.4
9.1
Selling, general and administrative expenses
11.4
9.9
2.4
2.5
Depreciation and depletion (includes impairments)
19.0
20.6
4.2
4.8
Exploration expenses, including dry holes
1.3
0.8
0.1
0.1
Non-service pension and postretirement benefit expense
1.2
0.7
0.2
-
Subtotal
69.7
68.9
16.4
16.5
ExxonMobil's share of equity company expenses (non-GAAP)
9.1
10.5
2.7
2.4
Total Adjusted Operating Costs (non-GAAP)
78.8
79.4
19.1
18.9
Total Adjusted Operating Costs (non-GAAP)
78.8
79.4
19.1
18.9
Less:
Depreciation and depletion (includes impairments)
19.0
20.6
4.2
4.8
Non-service pension and postretirement benefit expense
1.2
0.7
0.2
-
Other adjustments (includes equity company depreciation
and depletion)
3.6
3.7
0.8
0.9
Total Cash Operating Expenses (Cash Opex) (non-GAAP)
55.0
54.4
13.9
13.2
Energy and production taxes (non-GAAP)
11.0
14.9
4.3
3.4
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (non-GAAP)
44.0
39.5
9.6
9.8
Change
vs
2019
Change
vs
2023
Estimated Cumulative vs
2019
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (non-GAAP)
-4.5
+0.2
Market
+3.6
+0.1
Activity/Other
+1.6
+0.5
Structural Cost Savings
-9.7
-0.4
-10.1
This press release also references Structural Cost Savings, which describes decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, divestment-related reductions, and other cost-savings measures, that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative Structural Cost Savings totaled $10.1 billion, which included an additional $0.4 billion in the first three months of 2024. The total change between periods in expenses above will reflect both Structural Cost Savings and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations. Estimates of cumulative annual structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels. Structural Cost Savings are stewarded internally to support management's oversight of spending over time. This measure is useful for investors to understand the Corporation's efforts to optimize spending through disciplined expense management.
ExxonMobil will discuss financial and operating results and other matters during a webcast at 7:30 a.m. Central Time on April 26, 2024. To listen to the event or access an archived replay, please visit
www.exxonmobil.com
.
Selected Earnings Factor Definitions
Advantaged volume growth. Earnings impact from change in volume/mix from advantaged assets, strategic projects, and high-value products. See frequently used terms on page 10 for definitions of advantaged assets, strategic projects, and high-value products.
Base volume. Includes all volume/mix factors not included in Advantaged volume growth factor defined above.
Structural cost savings. After-tax earnings effect of Structural Cost Savings as defined on page 7, including cash operating expenses related to divestments that were previously included in "volume/mix" factor.
Expenses. Includes all expenses otherwise not included in other earnings factors.
Timing effects. Timing effects are primarily related to unsettled derivatives (mark-to-market) and other earnings impacts driven by timing differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting).
Cautionary Statement
Statements related to future events; projections; descriptions of strategic, operating, and financial plans and objectives; statements of future ambitions or plans; and other statements of future events or conditions in this release, are forward-looking statements. Similarly, discussion of future carbon capture, transportation and storage, as well as biofuels, hydrogen, direct air capture, and other plans to reduce emissions of ExxonMobil, its affiliates or companies it is seeking to acquire, are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements. Actual future results, including financial and operating performance; potential earnings, cash flow, or rate of return; total capital expenditures and mix, including allocations of capital to low carbon investments; realization and maintenance of structural cost reductions and efficiency gains, including the ability to offset inflationary pressure; plans to reduce future emissions and emissions intensity; ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030 and in Pioneer Permian assets by 2035, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to reach near-zero methane emissions from its operated assets and other methane initiatives, to meet ExxonMobil's emission reduction goals and plans, divestment and start-up plans, and associated project plans as well as technology advances, including the timing and outcome of projects to capture and store CO2, produce hydrogen, produce biofuels, produce lithium, create new advanced carbon materials, and use plastic waste as feedstock for advanced recycling; changes in law, taxes, or regulation including environmental and tax regulations, trade sanctions, and timely granting of governmental permits and certifications; cash flow, dividends and shareholder returns, including the timing and amounts of share repurchases; future debt levels and credit ratings; business and project plans, timing, costs, capacities and returns; resource recoveries and production rates; and planned Pioneer and Denbury integrated benefits, could differ materially due to a number of factors. These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market factors, economic conditions and seasonal fluctuations that impact prices and differentials for our products; government policies supporting lower carbon and new market investment opportunities such as the U.S. Inflation Reduction Act or policies limiting the attractiveness of future investment such as the additional European taxes on the energy sector and unequal support for different methods of emissions reduction; variable impacts of trading activities on our margins and results each quarter; actions of competitors and commercial counterparties; the outcome of commercial negotiations, including final agreed terms and conditions; the ability to access debt markets; the ultimate impacts of public health crises, including the effects of government responses on people and economies; reservoir performance, including variability and timing factors applicable to unconventional resources; the level and outcome of exploration projects and decisions to invest in future reserves; timely completion of development and other construction projects; final management approval of future projects and any changes in the scope, terms, or costs of such projects as approved; government regulation of our growth opportunities; war, civil unrest, attacks against the company or industry and other political or security disturbances; expropriations, seizure, or capacity, insurance or shipping limitations by foreign governments or laws; opportunities for potential acquisitions, investments or divestments and satisfaction of applicable conditions to closing, including timely regulatory approvals; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies; unforeseen technical or operating difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; the results of research programs and the ability to bring new technologies to commercial scale on a cost-competitive basis; and other factors discussed under Item 1A. Risk Factors of ExxonMobil's 2023 Form 10-K.
Actions needed to advance ExxonMobil's 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the Company's Global Outlook research and publication. The Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. However, the Global Outlook does not attempt to project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and the Company's business plans will be updated accordingly. References to projects or opportunities may not reflect investment decisions made by the corporation or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other stakeholders. Capital investment guidance in lower-emission investments is based on our corporate plan; however, actual investment levels will be subject to the availability of the opportunity set, public policy support, and focused on returns.
Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not an indication that these statements are material to investors or requiring disclosure in our filing with the SEC. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making. The release is provided under consistent SEC disclosure requirements and should not be misinterpreted as applying to any other disclosure standards.
Frequently Used Terms and Non-GAAP Measures
This press release includes cash flow from operations and asset sales (non-GAAP). Because of the regular nature of our asset management and divestment program, the company believes it is useful for investors to consider proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities. A reconciliation to net cash provided by operating activities for the 2023 and 2024 periods is shown on page 6.
This press release also includes cash flow from operations and asset sales excluding working capital (non-GAAP). The company believes it is useful for investors to consider these numbers in comparing the underlying performance of the company's business across periods when there are significant period-to-period differences in the amount of changes in working capital. A reconciliation to net cash provided by operating activities for the 2023 and 2024 periods is shown on page 6.
This press release also includes Earnings/(Loss) Excluding Identified Items (non-GAAP), which are earnings/(loss) excluding individually significant non-operational events with, typically, an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings/(loss) impact of an identified item for an individual segment may be less than $250 million when the item impacts several periods or several segments. Earnings/(loss) excluding Identified Items does include non-operational earnings events or impacts that are generally below the $250 million threshold utilized for identified items. When the effect of these events is significant in aggregate, it is indicated in analysis of period results as part of quarterly earnings press release and teleconference materials. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The Corporation believes this view provides investors increased transparency into business results and trends and provides investors with a view of the business as seen through the eyes of management. Earnings excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income/(loss) attributable to ExxonMobil as prepared in accordance with U.S. GAAP. A reconciliation to earnings is shown for 2024 and 2023 periods in Attachments II-a and II-b. Corresponding per share amounts are shown on page 1 and in Attachment II-a, including a reconciliation to earnings/(loss) per common share - assuming dilution (U.S. GAAP).
This press release also includes total taxes including sales-based taxes. This is a broader indicator of the total tax burden on the Corporation's products and earnings, including certain sales and value-added taxes imposed on and concurrent with revenue-producing transactions with customers and collected on behalf of governmental authorities ("sales-based taxes"). It combines "Income taxes" and "Total other taxes and duties" with sales-based taxes, which are reported net in the income statement. The company believes it is useful for the Corporation and its investors to understand the total tax burden imposed on the Corporation's products and earnings. A reconciliation to total taxes is shown in Attachment I-a.
This press release also references free cash flow (non-GAAP). Free cash flow is the sum of net cash provided by operating activities and net cash flow used in investing activities. This measure is useful when evaluating cash available for financing activities, including shareholder distributions, after investment in the business. Free cash flow is not meant to be viewed in isolation or as a substitute for net cash provided by operating activities. A reconciliation to net cash provided by operating activities for the 2023 and 2024 periods is shown on page 6.
References to resources or resource base may include quantities of oil and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term "resource base" or similar terms are not intended to correspond to SEC definitions such as "probable" or "possible" reserves. A reconciliation of production excluding divestments, entitlements, and government mandates to actual production is contained in the Supplement to this release included as Exhibit 99.2 to the Form 8-K filed the same day as this news release.
The term "project" as used in this news release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Projects or plans may not reflect investment decisions made by the company. Individual opportunities may advance based on a number of factors, including availability of supportive policy, technology for cost-effective abatement, and alignment with our partners and other stakeholders. The company may refer to these opportunities as projects in external disclosures at various stages throughout their progression.
Advantaged assets (Advantaged growth projects) includes Permian, Guyana, Brazil and LNG.
High-value products includes performance products and lower-emission fuels.
Strategic projects includes (i) the following completed projects: Rotterdam Hydrocracker, Corpus Christi Chemical Complex, Baton Rouge Polypropylene, Beaumont Crude Expansion, Baytown Chemical Expansion, Permian Crude Venture, and the 2022 Baytown advanced recycling facility; and (ii) the following projects still to be completed: Fawley Hydrofiner, China Chemical Complex, Singapore Resid Upgrade, Strathcona Renewable Diesel, Proxxima TM Venture, USGC Reconfiguration, additional advanced recycling projects under evaluation worldwide, and additional projects in plan yet to be publicly announced.
Performance products (performance chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users.
Lower-emission fuels are fuels with lower life cycle emissions than conventional transportation fuels for gasoline, diesel and jet transport.
Government mandates (curtailments) are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions imposed by governments.
Debt-to-capital ratio is total debt divided by the sum of total debt and equity. Total debt is the sum of notes and loans payable and long-term debt, as reported in the consolidated balance sheet, along with total equity.
Net-debt-to-capital ratio is net debt divided by the sum of net debt and total equity, where net debt is net of cash and cash equivalents, excluding restricted cash.
This press release also references Structural Cost Savings, for more details see page 7.
Reference to Earnings
References to corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings, Upstream, Energy Products, Chemical Products, Specialty Products and Corporate and Financing earnings, and earnings per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.
Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships. ExxonMobil's ambitions, plans and goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation's responsibility for those affiliates' actions and future performance, each affiliate of which manages its own affairs.
https://investor.exxonmobil.com/news-events/press-releases/detail/1162/exxonmobil-announces-first-quarter-2024-results
INEOS Group Limited
INEOS Inovyn is Europe's leading producer of vinyls and in the top three worldwide. With an annual turnover of [euro]5.1 billion, INEOS Inovyn has circa 4,300 employees and manufacturing, sales and marketing operations in 8 countries across Europe.
INEOS Inovyn's portfolio consists of an extensive range of class-leading products arranged across General Purpose Vinyls; Specialty Vinyls; Organic Chlorine Derivatives; Chlor Alkali; Hydrogen and Performance Chemicals. INEOS Inovyn's annual commercial production volume is circa 10 million tonnes.
https://www.ineos.com/
INEOS Group Holdings S.A. - Condensed consolidated interim financial statements as of March 31, 2024 - 25/4/2024
For the full report see:
https://www.ineos.com/globalassets/investor-relations/public/quarterly-reports/igh-q1-2024-report_final.pdf
Innovia Films
The history of Innovia Films (Innovia) spans nearly 90 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. The company has also 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) film. 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.
https://innoviafilms.com/
Johnson Matthey plc (LSE: JMAT)
We are Johnson Matthey, a global leader in sustainable technologies. For over 200 years we've used advanced metals chemistry to tackle the world's biggest challenges. Many of the world's leading energy, chemicals and automotive companies depend on our technology and expertise to decarbonise, reduce harmful emissions and improve their sustainability.
And now, as the world faces the challenges of climate change, energy supply and resource scarcity, we're actively providing solutions for our customers. Through inspiring science and continued innovation, we're catalysing the net zero transition for millions of people every day.
https://matthey.com/
Johnson Matthey - Half year results for the six months ended 30th September 2021 - 24/11/2021
Resilient performance in the first half
Underlying performance¹,²
Sales of £1.9 billion, up 21%, driven by a strong recovery in Clean Air and Efficient Natural Resources
Underlying operating profit of £293 million, up 102% and ahead of pre-pandemic levels, driven by strong sales growth and higher average precious metal prices
Underlying EPS of 114.8 pence, up materially reflecting higher underlying operating profit and lower net finance costs
Free cash flow of £189 million, benefiting from continued strong management of working capital (1H 2020/21: £256 million)
Strong balance sheet with net debt of c.£700 million as lower auto demand benefited working capital; net debt to EBITDA of 0.9 times
Return on invested capital (ROIC) of 17.7%, up from 10.4% in the prior year driven by higher underlying operating profit
Reported results
Revenue increased 23% primarily driven by higher average precious metal prices
Following the announcement of our intention to exit Battery Materials, the assets have been impaired by £314 million
Operating profit of £20 million, reflecting the one-off impairment in Battery Materials
Loss before tax of £9 million, driven by lower operating profit
Reported loss per share of 14.8 pence
Cash inflow from operating activities of £412 million (1H 2020/21: £482 million)
Interim dividend of 22.0 pence per share, up 10%
Share buyback of £200 million, beginning in the New Year
Key developments
A resilient trading performance, with strong sales growth driven by a recovery in Clean Air and Efficient Natural Resources
Portfolio changes - agreed the sale of Advanced Glass Technologies for £178 million, and in discussions about a potential sale of Health
Announced intention to exit Battery Materials
Good momentum across our hydrogen businesses of Fuel Cells and Green Hydrogen
New five-year framework contract with EKPO (ElringKlinger Plastic Omnium JV) to supply fuel cell components into commercial vehicle applications
Following the completion of our hydrogen technologies capacity expansion in the UK and China, planning further expansion across these regions
Increasing pipeline of opportunities in blue hydrogen - now over 20 projects - including HyNet which continues to move towards commercialisation in 2025
In Clean Air, on track for strong cash generation in 2021/22
Delivered £42 million of cost savings, from our total programme of £110 million per annum by 2023/24
Robert MacLeod, Chief Executive, commented:
We delivered a resilient trading performance in what has been a challenging environment, given the supply chain volatility which has affected a number of our end markets.
Looking forward, the changing world around us means that Johnson Matthey has never been more relevant. Our metal expertise and process technologies are critical to many new markets focused on climate change solutions and give us a strong competitive advantage. We have strong foundations in Clean Air and in Efficient Natural Resources and exciting opportunities to drive our future growth in circularity, hydrogen and decarbonisation.
To ensure we are focusing our resources on these core growth opportunities we have taken some strategic decisions around our portfolio. In particular, we announced our intention to exit Battery Materials as we concluded that this business would not generate adequate returns for us. In addition, today we are announcing that we have agreed the sale of Advanced Glass Technologies and are in discussions about the potential sale of our Health business.
After eight years in the role, I will be stepping down as Chief Executive, with Liam Condon joining as my successor from 1st March 2022 and I wish him well in leading Johnson Matthey through the next stage of its evolution.
Outlook for the year ending 31st March 2022
Our expectations on guidance for the year ending 31st March 2022 are unchanged from our trading update on 11th November.
Demand remains strong in many of our end markets. However, supply chain volatility especially the shortage of semi-conductors is affecting production for a number of our auto and truck customers. Global auto production is now forecast to decline 5% for our fiscal year which is a 14% reduction since our trading update in Julyâ´. Consequently, precious metal prices have also declined, largely because of the lower demand from the automotive industry. We are also experiencing acute temporary labour shortages in the US that are adversely impacting our Health business.
For 2021/22 we expect growth in underlying operating performance to be low single digit at constant precious metals pricesâµ and constant currency.
If precious metals prices remain at their current levelⶠfor the rest of this year, we would expect a full year net benefit of c.£45 million.
At current foreign exchange ratesâ·, translational foreign exchange movements for the year ending 31st March 2022 are expected to adversely impact underlying operating profit by c.£15 million.
Our capital expenditure is now expected to be c.£450 million for the year⸠given our intended exit from Battery Materials.
Dividend and share buyback
The board approved an interim dividend of 22.0 pence per share, an increase of 10% against the prior year (1H 2020/21: 20.0 pence per share). The interim dividend will be paid on 1st February 2022 to shareholders on the register at 3rd December 2021.
The board has also approved a share buyback of £200 million that will commence in the New Year.
Chief Executive Announcement
As previously announced, Robert MacLeod will step down as Chief Executive and from the board on 28th February 2022. Robert will stay on to support the transition process until the Company's Annual General Meeting on 21st July 2022, when he will then retire from JM. Liam Condon will succeed Robert MacLeod, joining as Chief Executive on 1st March 2022.
https://matthey.com/en/news/2021/hy-21-22
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 and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide.
https://www.noblecorp.com/home/default.aspx
Noble Corporation - Noble Corporation Reports Second Quarter 2022 Results - 8/8/2022
Business combination with Maersk Drilling anticipated to close October 3, 2022
Q2 Total Revenue of $275 million, an increase of 31% quarter-over-quarter
Q2 Net Income of $37 million and Adjusted EBITDA of $84 million
Q2 Cash Flow from Operations of $88 million and Free Cash Flow of $56 million
SUGAR LAND, Texas, Aug. 8, 2022 /PRNewswire/ -- Noble Corporation (NYSE: NE, "Noble", or the "Company") today reported second quarter 2022 results.
Successor
Three Months Ended
(stated in millions, except per share amounts)
June 30, 2022
June 30, 2021
March 31, 2022
Total Revenue
$ 275
$ 219
$ 210
Contract Drilling Services Revenue
262
200
195
Net Income (Loss)
37
20
(37)
Adjusted EBITDA*
84
10
27
Adjusted Net Income (Loss)*
33
(25)
(8)
Diluted Earnings (Loss) Per Share
0.45
0.30
(0.54)
Adjusted Diluted Earnings (Loss) Per Share*
0.40
(0.37)
(0.12)
* A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release.
Robert W. Eifler, President and Chief Executive Officer of Noble Corporation, stated, "The second quarter marks an important inflection in Noble's financial results. As signaled previously, we expect to produce meaningful step-ups in earnings as we move through 2022, and we delivered on the first step-up during this quarter. Our second quarter results, which are underpinned by strong operational performance, highlight the ability of the Noble platform to deliver long-term value for our shareholders. As our organization prepares to complete the business combination with Maersk Drilling, we remain focused on providing world class service to our customers and operating safely every day."
Second Quarter Results
Contract drilling services revenue for the second quarter of 2022 totaled $262 million compared to $195 million in the first quarter. Marketed fleet utilization was 85 percent in the three months ended June 30, 2022 compared to 75 percent in the previous quarter. Contract drilling services costs for the second quarter were $178 million, up from $166 million in the first quarter of 2022.
Adjusted EBITDA for the three months ended June 30, 2022 was $84 million compared to $27 million in the first quarter of 2022. Capital expenditures totaled $31 million in the second quarter.
Net cash provided by operating activities for the three months ended June 30, 2022 was $88 million and free cash flow was $56 million for the same period.
Operating Highlights and Backlog
Noble's marketed floater fleet was 100% contracted in the second quarter. The Noble Faye Kozack was awarded a one-well contract with LLOG for work in the U.S. Gulf of Mexico at a rate of $420,000 per day. The contract includes managed pressure drilling services and is expected to commence in late 2022 or early 2023. In Suriname, APA Corp executed its second option for the Noble Gerry de Souza and is expected to novate the rig to TotalEnergies for one well. The Noble Globetrotter I recently concluded with Shell and demobilized to complete routine maintenance following that 10-year contract. Following its brief out-of-service period, the rig is scheduled to mobilize to Mexico during the third quarter to commence work for CNOOC and Petronas. Additionally, during the second quarter the four drillships under the Commercial Enabling Agreement were awarded 7.4 years of incremental term in connection with the sanctioning of the Yellowtail development in Guyana.
In the second quarter, the Noble Regina Allen commenced operations in Guyana for Repsol and, after completion of its current program, is scheduled to return to Trinidad and Tobago to drill six firm wells with a different operator. In the U.K. North Sea, the NobleSam Hartleyis preparing to commence its program for TotalEnergies. Additionally, the NobleHouston Colbertmobilized to the Middle East and is now preparing for its 3.5-year campaign in Qatar.
Noble's estimated revenue backlog was approximately $2.1 billion as of June 30, 2022. This excludes the 3.5 year firm term contracts for both the Noble Mick O'Brien and Noble Houston Colbert, which were signed after the quarter end.
Maersk Drilling Business Combination Update
The Danish public tender exchange offer process in connection with Noble's business combination with The Drilling Company of 1972 A/S ("Maersk Drilling") has now commenced. The tender exchange offer period for outstanding Maersk Drilling shares is set for August 10 to September 8, 2022.
As previously announced, the Company has entered into an asset purchase agreement to sell five jackup rigs for $375 million to a newly formed subsidiary ("Buyer") of Shelf Drilling, Ltd. to address the potential concerns identified by the UK Competition and Markets Authority ("CMA") in the Phase I review of the proposed business combination with Maersk Drilling. The rigs are the Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert, and Noble Lloyd Noble. Publication of the CMA's final decision on the divestment's adequacy in addressing their competition concerns is scheduled for September 1, 2022. If the Buyer and related sale agreement are accepted by the CMA, closing of the Business Combination is expected to occur on October 3, 2022, with the jackup divestment sale expected to close promptly thereafter.
Outlook
Noble's guidance for full year 2022 remains unchanged from what was previously provided on May 2, 2022.
Commenting on Noble's outlook for the second half of 2022, Mr. Eifler stated, "Demand for offshore drilling is increasing in all our key operating regions, and we expect this positive momentum to continue despite global economic concerns. Tender activity remains at attractive levels and our customers have a robust pipeline of opportunities for our rigs. We look forward to completing the business combination with Maersk Drilling in early October and creating a dynamic leader in offshore drilling. I'm confident in Noble's ability to deliver on the key transaction rationale, which include enhancing the customer experience and executing on our commitment to return capital to shareholders."
Fleet Status Report
In conjunction with second quarter results, the Company has also provided an updated "Fleet Status Report" which reflects the current status and contract information for each of its rigs. The updated report can be found under the "Our Fleet" section of the Company's website.
About Noble Corporation
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 and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide. Additional information on Noble is available at
www.noblecorp.com
.
https://www.noblecorp.com/investors/news/news-details/2022/NOBLE-CORPORATION-REPORTS-SECOND-QUARTER-2022-RESULTS/default.aspx
The Phillips 66 Company (NYSE: PSX)
Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future.
https://www.phillips66.com/
Phillips 66 - Phillips 66 Reports 1Q 2024 Financial Results, Highlights Strategic Priorities Progress - 26/4/2024
First-Quarter Results
First-quarter earnings of $748 million or $1.73 per share; adjusted earnings of $822 million or $1.90 per share
$1.6 billion returned to shareholders through dividends and share repurchases
Refining operated at 92% crude utilization
Recently announced 10% increase to the quarterly dividend to $1.15 per common share
Earned industry recognition for 2023 exemplary safety performance in Midstream, Refining and Chemicals
Strategic Priorities Highlights
Returned $9.9 billion to shareholders through dividends and share repurchases since July 2022
On track to achieve $1.4 billion of business transformation cost and sustaining capital savings by year-end 2024
Launched process to divest retail marketing assets in Germany and Austria
Commenced operations at Rodeo Renewable Energy Complex
HOUSTON--(BUSINESS WIRE)-- Phillips 66 (NYSE: PSX), a leading diversified and integrated downstream energy company, announced first-quarter earnings of $748 million, compared with earnings of $1.3 billion in the fourth quarter. Excluding special items of $74 million, the company had adjusted earnings of $822 million in the first quarter, compared with fourth-quarter adjusted earnings of $1.4 billion.
"In the first quarter, we progressed our strategic priorities and returned $1.6 billion to shareholders," said Mark Lashier, president and CEO of Phillips 66. "While our crude utilization rates were strong, our results were affected by maintenance that limited our ability to make higher-value products. We were also impacted by the renewable fuels conversion at Rodeo, as well as the effect of rising commodity prices on our inventory hedge positions. The maintenance is behind us, our assets are currently running near historical highs and we are ready to meet peak summer demand.
"We recently launched a process to sell our retail marketing business in Germany and Austria, consistent with our plan to divest non-core assets. A major milestone was achieved with the startup of our Rodeo Renewable Energy Complex, positioning Phillips 66 as a world leader in renewable fuels.
"We remain committed to delivering increased value to our shareholders. We have returned $9.9 billion to shareholders through share repurchases and dividends since July 2022, on pace to meet our target of $13 billion to $15 billion by year-end 2024. Our strategic priorities put us on a clear path to achieve our $14 billion mid-cycle adjusted EBITDA target by 2025 and return over 50% of operating cash flows to shareholders."
Midstream
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
1Q 2024
4Q 2023
1Q 2024
4Q 2023
Transportation
$
243
334
302
334
NGL and Other
306
425
306
423
NOVONIX
5
(3)
5
(3)
Midstream
$
554
756
613
754
Midstream first-quarter 2024 pre-tax income was $554 million, compared with $756 million in the fourth quarter of 2023. Results in the first quarter included a $59 million asset impairment. Fourth-quarter results included a $2 million tax benefit.
Transportation first-quarter adjusted pre-tax income was $302 million, compared with adjusted pre-tax income of $334 million in the fourth quarter. The decline mainly reflects a decrease in throughput and deficiency revenues, partially offset by seasonally lower maintenance costs.
NGL and Other adjusted pre-tax income was $306 million in the first quarter, compared with adjusted pre-tax income of $423 million in the fourth quarter. The decrease was mainly due to a decline in margins, as well as lower volumes reflecting impacts from winter storms.
In the first quarter, the fair value of the company's investment in NOVONIX, Ltd. increased by $5 million, compared with a $3 million decrease in the fourth quarter.
Chemicals
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
1Q 2024
4Q 2023
1Q 2024
4Q 2023
Chemicals
$
205
106
205
106
The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals first-quarter 2024 reported and adjusted pre-tax income was $205 million, compared with fourth-quarter 2023 reported and adjusted pre-tax income of $106 million. The increase was mainly due to higher polyethylene margins driven by improved sales prices and a decline in feedstock costs, as well as lower turnaround costs.
Global olefins and polyolefins utilization was 96% for the quarter.
Refining
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
1Q 2024
4Q 2023
1Q 2024
4Q 2023
Refining
$
131
814
228
797
Refining first-quarter 2024 reported pre-tax income was $131 million, compared with pre-tax income of $814 million in the fourth quarter of 2023. Results in the first quarter included a $104 million asset impairment and a $7 million benefit related to a legal settlement. Fourth-quarter results included a $17 million tax benefit.
Adjusted pre-tax income for Refining was $228 million in the first quarter, compared with adjusted pre-tax income of $797 million in the fourth quarter. The decrease was primarily due to a decline in realized margins driven by less favorable commercial results, inventory hedging impacts and lower Gulf Coast clean product realizations.
Refining pre-tax turnaround expense for the first quarter was $160 million, including $36 million related to the Rodeo Renewable Energy Complex. The crude utilization rate was 92%, clean product yield was 84% and market capture was 69%.
Marketing and Specialties
Millions of Dollars
Pre-Tax Income
Adjusted Pre-Tax Income
1Q 2024
4Q 2023
1Q 2024
4Q 2023
Marketing and Specialties
$
404
432
345
432
Marketing and Specialties first-quarter 2024 pre-tax income was $404 million, compared with $432 million in the fourth quarter of 2023. Results in the first quarter included a $59 million benefit related to a legal settlement.
Adjusted pre-tax income for Marketing and Specialties was $345 million in the first quarter, compared with $432 million in the fourth quarter. The decrease in the first quarter was mainly due to lower domestic marketing and lubricant margins.
Corporate and Other
Millions of Dollars
Pre-Tax Loss
Adjusted Pre-Tax Loss
1Q 2024
4Q 2023
1Q 2024
4Q 2023
Corporate and Other
$
(330)
(347)
(330)
(297)
Corporate and Other first-quarter 2024 pre-tax costs were $330 million, compared with pre-tax costs of $347 million in the fourth quarter of 2023. Results in the fourth quarter included restructuring costs of $50 million.
Adjusted pre-tax costs were $330 million in the first quarter of 2024, compared with $297 million in the fourth quarter. Increased costs in the first quarter were mainly due to higher net interest expense.
Financial Position, Liquidity and Return of Capital
Cash used in operations was $236 million in the first quarter. Operating cash flow was $1.2 billion, excluding $1.4 billion of working capital impacts mainly due to inventory builds. The company had net debt issuances of $802 million.
During the first quarter, Phillips 66 funded $1.2 billion of share repurchases, $448 million in dividends and $628 million of capital expenditures and investments.
As of March 31, 2024, the company had $1.6 billion of cash and cash equivalents and $3.5 billion of committed capacity available under its credit facility. The company's consolidated debt-to-capital ratio was 40% and its net debt-to-capital ratio was 38%. The company ended the quarter with 424 million shares outstanding.
Strategic Priorities and Business Update
Phillips 66 is executing its strategic priorities to increase mid-cycle adjusted EBITDA to $14 billion by 2025 and return over 50% of operating cash flow to shareholders. Since July 2022, the company has distributed $9.9 billion through share repurchases and dividends and is on pace to achieve its $13 billion to $15 billion target by year-end 2024.
Phillips 66 plans to monetize assets that no longer fit its long-term strategy. The company is progressing the potential divestiture of its retail marketing business in Germany and Austria. Completion of dispositions is subject to market and other conditions, including customary approvals.
The company achieved $1.24 billion in run-rate cost and sustaining capital savings through business transformation as of March 31, 2024. The company is targeting $1.4 billion in run-rate savings by the end of 2024.
Phillips 66 is capturing value from its Midstream NGL wellhead-to-market strategy. The company's increased ownership of DCP Midstream has provided an incremental $1.25 billion toward its 2025 mid-cycle adjusted EBITDA target, including approximately $250 million of synergies. The company remains focused on capturing over $400 million of run-rate commercial and operating synergies by the end of 2024.
In Chemicals, CPChem is building world-scale petrochemical facilities with a joint-venture partner on the U.S. Gulf Coast and in Ras Laffan, Qatar. Both projects are expected to start up in 2026.
In Refining, the company continues to invest in high-return, low-capital projects to improve asset reliability and market capture. Since 2022, completed projects have added over 3% to market capture based on mid-cycle pricing.
During the first quarter, Phillips 66 achieved a significant milestone with the startup of the Rodeo Renewed project. The Rodeo Renewable Energy Complex is now producing 30,000 barrels per day of renewable fuels. The facility is on track to produce approximately 50,000 barrels per day (800 million gallons per year) of renewable fuels by the end of the second quarter, positioning Phillips 66 as a leader in renewable fuels.
The American Fuel and Petrochemical Manufacturers (AFPM) recognized four Phillips 66 refineries and two CPChem facilities for exemplary safety performance in 2023. The Rodeo and Sweeny facilities both received the Distinguished Safety Award, the highest annual safety award in the industry. This was Sweeny Refinery's third consecutive year to receive the honor. The Ponca City Refinery earned the Elite Platinum Award, and the Lake Charles Refinery secured the Elite Gold Award. In Midstream, the company received the first-place Division I 2023 GPA Midstream Safety Award for its gathering and processing operations.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company's strategic initiatives and discuss the company's first-quarter performance. To access the webcast and view related presentation materials, go to
phillips66.com/investors
and click on "Events & Presentations." For detailed supplemental information, go to
phillips66.com/supplemental
.
https://investor.phillips66.com/financial-information/news-releases/news-release-details/2024/Phillips-66-Reports-1Q-2024-Financial-Results-Highlights-Strategic-Priorities-Progress/default.aspx
Royal Dutch Shell plc (LSE: RDSA, NYSE: RDS.A)
Shell is an international energy company with expertise in the exploration, production, refining and marketing of oil and natural gas, and the manufacturing and marketing of chemicals.
We use advanced technologies and take an innovative approach to help build a sustainable energy future. We also invest in power, including from low-carbon sources such as wind and solar; and new fuels for transport, such as advanced biofuels and
hydrogen
.
https://www.shell.com/
Shell plc - Shell plc second quarter 2023 results announcement - 27/7/2023
"Shell delivered strong operational performance and cash flows in the second quarter, despite a lower commodity price environment. Today we are delivering on our Capital Markets Day commitment of a 15% dividend increase. We are going further on our buyback guidance by commencing a $3 billion programme for the next three months and, subject to Board approval, at least $2.5 billion at the Q3 2023 results. As we deliver more value with less emissions, we will continue to prioritise share buybacks, given the value that our shares represent."
STRONG OPERATIONAL AND CASH PERFORMANCE, ENHANCED DISTRIBUTIONS
Q2 2023 Adjusted Earnings of $5.1 billion, with lower oil and gas prices and refining margins, lower volumes and lower LNG trading & optimisation results. CFFO of $15.1 billion for the quarter, with a $4.8 billion working capital inflow offsetting tax payments.
$3 billion share buybacks announced, expected to be completed by Q3 2023 results announcement. Quarterly dividend increase of 15% to $0.331 per share.
Cash capex outlook range for 2023 lowered to $23 - 26 billion.
https://www.shell.com/investors/results-and-reporting/quarterly-results/latest-results.html
Synthomer plc (LSE: SYNT)
We produce high-performance, highly specialised polymers and ingredients that bind the modern world together through the broadest range of everyday applications. Working with over 6,000 customers, we help bring thousands of products to life - from adhesives to coatings, construction, and speciality healthcare applications.
Our chemistry is all around you. On your walls, under your feet, even wrapped around your lunch. It's in the hygiene products that protect us and the infrastructure that supports our economy.
https://www.synthomer.com/
Synthomer plc - Synthomer plc Interim results for the six months ended 30 June 2022 - 2/8/2022
Group EBITDA £173.1 million (2021: £322.7 million) with all businesses delivering EBITDA growth apart from Performance Elastomers
EBITDA significantly ahead of both 2020 (£100.2 million) and 2019 (£99.7 million)
Organic growth delivers £25.6 million of additional EBITDA between H1 2019 and H1 2022
H1 double digit EBITDA growth in Functional Solutions and Industrial Specialties
Performance Elastomers lower following an exceptional prior year of peak demand for Nitrile Butadiene Rubber (NBR) related to the COVID pandemic
Increased geographic and portfolio diversity through organic and inorganic growth
Free Cash Flow of -£62.0 million (2021: £89.5 million), £66.0 million Free Cash Flow generated before working capital movement
Invested strong Free Cash Flow from previous years to establish Adhesive Technologies division following completion of the $1bn acquisition of Eastman's Adhesive Resins business in April 2022
Investment in working capital from higher raw material costs and to mitigate supply chain disruption. Working capital optimisation programme in place will also address higher working capital ratio in acquired AT division
Net debt at £992.8 million and leverage at 2.3 x EBITDA
Integration of Adhesive Technologies division on track
Solid first quarter contributing £131.0 million to Group revenues
Increased exposure to attractive, high-growth markets
Expanded our global diversification and portfolio of speciality products
Diverse and differentiated business model
Resilient business - inflation cost increases passed through; unit margins higher in Functional Solutions and Industrial Specialities
Resilience underpinned by enhanced US position, broad end-market exposure and network agility
Low energy intensity across global operations with extended energy management
Continued progress on our Vision 2030 ESG roadmap
Ambitious, measurable goals aligned with UN SDGs, with emissions targets awaiting approval by the Science-based Targets Initiative (SBTi)
Introduced internal carbon pricing across the group
Increased female representation at Executive Committee level 2022: 30% (2021: 0%) and on our Board 2022: 40% (2021: 33%)
Michael Willome, Chief Executive, said:
"These results demonstrate the solid performance of the business compared to pre pandemic levels with EBITDA significantly ahead of 2020 and 2019 and good levels of organic profit growth. All parts of the business except NBR generated EBITDA growth against a strong H1 2021 comparator, demonstrating the strength and diversity of Synthomer's portfolio. Our performance reflects the benefits of recent acquisitions with Functional Solutions continuing to leverage its increased global reach and portfolio depth and Adhesive Technologies having a strong first quarter in our Group, in line with our expectations. We have successfully managed higher costs and have passed them through, helping to enhance our profitability. 3 Whilst NBR market conditions have yet to normalise following a period of exceptional COVID-19 related demand, we are focused on the tremendous opportunities available elsewhere in the Group. I am confident that the Group's enhanced scale, portfolio depth and geographic diversity will continue to underpin our resilience, supporting further progress in the second half and into 2023."
Outlook
Our solid, broad based first half results reflect growth across all areas of the business excluding NBR within Performance Elastomers. Global NBR glove industry stock levels remain high delaying a return to pre-pandemic NBR growth. Whilst we are very mindful of the challenging macroeconomic environment, we continue to expect our second half to deliver robust margins and benefit from a full 6 months contribution from Adhesive Technologies together with increased cost and revenue synergies in Functional Solutions. The Group's enhanced scale, geographic balance and end-market exposure underpins our resilience, supporting further progress in the second half and into 2023.
https://www.synthomer.com/fileadmin/files/ir/results/2022/2022%20Interim%20Report%20%28FINAL%29.pdf
Tata Chemicals Europe (NSE: TTCH)
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.
https://www.tatachemicalseurope.com/
Tata Chemicals Europe - First Quarter 2022 Results - 28/4/2022
For the complete report see:
https://totalenergies.com/system/files/documents/2022-04/1Q22_Results.pdf
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.
https://thomas-swan.co.uk/
Total S.A. (LSE: TTA, NYSE: TOT)
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
https://totalenergies.com/
Total S.A. - TotalEnergies' Second Quarter and First Half 2022 Results - 28/7/2022
About TotalEnergies
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
For the complete report see:
https://totalenergies.com/system/files/documents/2022-07/2Q22_Results.pdf
Valero Energy Ltd (UK) (NYSE: VLO)
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit
investorvalero.com
for more information.
https://www.valero.com/
Valero Energy Corporation - Valero Energy Reports First Quarter 2024 Results - 25/4/2024
Reported net income attributable to Valero stockholders of $1.2 billion, or $3.75 per share
Reported adjusted net income attributable to Valero stockholders of $1.3 billion, or $3.82 per share
Repaid the $167 million outstanding principal balance of its 1.200% Senior Notes that matured on March 15
Declared a regular quarterly cash dividend of $1.07 per share on January 18
Returned $1.4 billion to stockholders through dividends and stock buybacks
Startup of the Diamond Green Diesel Sustainable Aviation Fuel (SAF) project is now expected in the fourth quarter of 2024
SAN ANTONIO--(
BUSINESS WIRE
)--Valero Energy Corporation (NYSE: VLO, "Valero") today reported net income attributable to Valero stockholders of $1.2 billion, or $3.75 per share, for the first quarter of 2024, compared to $3.1 billion, or $8.29 per share, for the first quarter of 2023. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $1.3 billion, or $3.82 per share, compared to $3.1 billion, or $8.27 per share, for the first quarter of 2023.
Refining
The Refining segment reported operating income of $1.7 billion for the first quarter of 2024, compared to $4.1 billion for the first quarter of 2023. Refining throughput volumes averaged 2.8 million barrels per day in the first quarter of 2024.
"We are pleased to report strong financial results for the first quarter despite heavy planned maintenance across our refining system," said Lane Riggs, Valero's Chief Executive Officer and President. "Our team's ability to optimize and maximize throughput while undertaking maintenance activities illustrates the benefits from our long-standing commitment to safe and reliable operations."
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $190 million of operating income for the first quarter of 2024, compared to $205 million for the first quarter of 2023. Segment sales volumes averaged 3.7 million gallons per day in the first quarter of 2024, which was 741 thousand gallons per day higher than the first quarter of 2023. The higher sales volumes were due to the impact of additional volumes from the DGD Port Arthur plant, which started up in the fourth quarter of 2022 and was in the process of ramping up production rates in the first quarter of 2023. Operating income in the first quarter of 2024 was lower than the first quarter of 2023 due to lower renewable diesel margin.
Ethanol
The Ethanol segment reported $10 million of operating income for the first quarter of 2024, compared to $39 million for the first quarter of 2023. Adjusted operating income was $39 million for the first quarter of 2024. Ethanol production volumes averaged 4.5 million gallons per day in the first quarter of 2024, which was 283 thousand gallons per day higher than the first quarter of 2023.
Corporate and Other
General and administrative expenses were $258 million in the first quarter of 2024, compared to $244 million in the first quarter of 2023. The effective tax rate for the first quarter of 2024 was 21 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.8 billion in the first quarter of 2024. Included in this amount was a $160 million unfavorable impact from working capital and $122 million of adjusted net cash provided by operating activities associated with the other joint venture member's share of DGD. Excluding these items, adjusted net cash provided by operating activities was $1.9 billion in the first quarter of 2024.
Capital investments totaled $661 million in the first quarter of 2024, of which $563 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member's share of DGD and other variable interest entities, capital investments attributable to Valero were $619 million.
Valero returned $1.4 billion to stockholders in the first quarter of 2024, of which $356 million was paid as dividends and $1.0 billion was for the purchase of approximately 6.6 million shares of common stock, resulting in a payout ratio of 74 percent of adjusted net cash provided by operating activities.
Valero defines payout ratio as the sum of dividends paid and the total cost of 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 the other joint venture member's share of DGD.
On January 18, Valero announced an increase of its quarterly cash dividend on common stock from $1.02 per share to $1.07 per share.
Liquidity and Financial Position
Valero repaid the $167 million outstanding principal balance of its 1.200% Senior Notes that matured on March 15, ending the first quarter of 2024 with $8.5 billion of total debt, $2.4 billion of finance lease obligations and $4.9 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 17 percent as of March 31, 2024.
Strategic Update
The SAF project at the DGD Port Arthur plant is progressing ahead of schedule and is now expected to be operational in the fourth quarter of 2024, with a total cost of $315 million, half of which is attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world.
"We remain focused on the things that have been a hallmark of our strategy for over a decade - maintaining operating excellence, executing our projects well, discipline around capital investments, and our commitment to shareholder returns," said Riggs.
Conference Call
Valero's senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit
investorvalero.com
for more information.
https://www.businesswire.com/news/home/20240424525325/en/Valero-Energy-Reports-First-Quarter-2024-Results
ACQ_REF: IS/43695/20240603/GBR/33/9
ACQ_AUTHOR: Associate/Donny Stanley
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