Petrochemicals,
polymers and fertilizers
Remember MeForgot password?
EWEBB 2025
TOP STORY
ORLEN Group announces financial results for Q3 202419 Nov 2024 / ChemCourier. Polyolefins Market Weekly / company news

Orlen_logo.svgIn Q3 2024, ORLEN Group's net profit amounted to PLN 188 million, a decrease of PLN 4.4 billion compared to the same period last year. The group’s profit for the first nine months of this year totalled more than PLN 3.01 billion, down by PLN 17.03 billion compared to the corresponding period of the previous year.

The company’s consolidated net profit in Q3 2024 stood at PLN 222 million, compared to PLN 4.6 billion in the same period last year, as reported by the company. Operating profit reached PLN 1.6 billion, down from PLN 7.1 billion a year earlier. EBITDA amounted to PLN 5 billion, compared to PLN 10.519 billion last year. The EBITDA LIFO (Last In, First Out) indicator, which includes the reported EBITDA plus the valuation of inventory using the ‘last in, first out’ method, amounted to PLN 5.3 billion, compared to PLN 9.2 billion last year. The EBITDA LIFO figure, excluding impairment costs, was PLN 8.8 billion, down from PLN 10.3 billion a year earlier.

‘In the past quarter, we launched the largest investment programme in the history of the modernisation of the energy system in northern Poland. We also completed a significant portion of the work related to connecting the Baltic Power power station to the mainland. Despite this, we continued the process of conducting impairment tests to ensure the reliability of ORLEN Group's value. These tests revealed multibillion-dollar losses due to poor management in previous years. Despite the adverse macroeconomic conditions, we achieved financial results comparable to last year,’ the company’s CEO Ireneusz Fafara has explained in the press release.

Consolidated sales revenue in Q3 2024 amounted to PLN 67.9 billion, compared to PLN 79.5 billion last year.

The EBITDA LIFO for the refining segment in Q3 was PLN 520 million, primarily affected by the adverse macroeconomic situation, including a 65% decrease in refining margins year-on-year and the strengthening of the zloty against the dollar. The company maintained a high level of utilisation of refining capacity, reaching 94%. ORLEN Group's plants in Poland, the Czech Republic, and Lithuania refined 10.1 million t of crude oil during this period. Fuel output in Poland increased by 6% compared to the previous year due to the reduction in the share of high-sulphur crude oil in the refining mix.

The EBITDA LIFO for the petrochemical segment was a loss of PLN 118 million. Despite a slight 3% increase in sales, the segment’s results remained under pressure from adverse market and macroeconomic factors.

The energy segment recorded an EBITDA LIFO of PLN 949 million, driven by an increase in margins for energy distribution and sales, as well as a reduction in CO2 emission costs. Currently, 77% of ORLEN Group's electricity is generated from renewable sources and gas installations.

The EBITDA LIFO for the retail segment was PLN 1.1 billion. This result was achieved, in part, due to an 8% increase in sales driven by the expansion of the number of filling stations and the normalisation of fuel margins compared to last year.

The absence of impairment of funds from the price differential payment fund, along with the expansion of operations in Norway, led to a result of PLN 3.3 billion in the exploration and production segment. By consolidating assets of the acquired KUFPEC company in Norway, ORLEN Group increased hydrocarbon production by 22% year-on-year to approximately 190,000 bpd.

In Q3 of this year, the gas segment recorded an EBITDA profit of PLN 3.4 billion. This result was achieved despite a decline in trading margins year-on-year and negative macroeconomic effects. Simultaneously, the segment’s performance was boosted by increased gas sales and the absence of impairment in the Price Differential Payment Fund. Gas imports during this period decreased by 11% compared to the previous year.

Before announcing the update to its strategy, the company’s management wants to make a decision on the flagship investment, the Olefins III project. It is already clear that the project will be implemented differently from the original plan, as its cost is expected to increase from the previously stated PLN 25 billion to PLN 45—51 billion. More importantly, the project is currently unprofitable. As a result, it must either be optimised or terminated.

As the company reported at the beginning of November, two scenarios for the Olefins III project were analysed. One of them involved a complete or partial shutdown of the project, while the other was based on an optimisation scenario in terms of production capacity and the use of existing installations. The previous management is expected to make a decision on the future of the Olefins III investment by December at the latest.

This year, ORLEN Group plans to spend a total of approximately PLN 33 billion on investments, compared to PLN 32.4 billion in 2023. After three quarters, this figure amounted to PLN 20.8 billion. The majority of these funds have been allocated to the mining, refining, energy, and petrochemical sectors.

Read More »
Grupa Azoty announces financial results for Q3 202414 Nov 2024 / ChemCourier. Polyolefins Market Weekly / ChemCourier. Butadiene&C4s Weekly / ChemCourier. Benzene Weekly / ChemCourier. Propylene Weekly / company news

imagesIn Q3 2024, Grupa Azoty's consolidated revenue amounted to PLN 3.085 billion, while the EBITDA result was a negative PLN 120 million, with an EBITDA margin of -3.9%. This represents an increase of almost PLN 228 million compared to the same period last year. The net loss for Q3 of this year decreased by PLN 517 million compared to the same period in the previous year, reaching PLN 226 million, compared to a loss of PLN 743 million in Q3 2023.

‘We recorded growth in sales in the Chemicals and Plastics segments, while the Agro segment's competitive position was negatively impacted by the import of fertilisers from Russia and Belarus. We are following through with the planned schedule of corrective actions, and in recent days, we launched the AZOTY BUSINESS programme, which is a comprehensive plan for transforming the Group's business model,’ Andrzej Skolmowski, Vice President of the Management Board of Grupa Azoty S.A., has said.

Despite the positive impact of reduced unit costs on Grupa Azoty's results, the EBITDA profitability of key segments was negative, although a significant improvement was observed compared to the same period last year.

Q3 2024 marked another period of weak global and European economic conditions, leading to insufficient demand for fertilisers and chemical industry products. European producers continued to feel the negative effects of product imports into the EU, which had a significant impact on Grupa Azoty's performance across all major business segments.

In the reporting quarter, the prices of most types of materials and energy sources decreased compared to the previous year, with a particularly significant drop in coal and electricity prices. Natural gas prices rose by 7% compared to last year, according to TTF quotations, while there were no changes in Grupa Azoty's unit costs.

Agro segment

The EBITDA margin of the agro segment in Q3 2024 was -4.4%, improving by 3.2 percentage points compared to the same quarter last year.

Chemicals segment

The EBITDA profitability of the Chemicals segment in Q3 2024 was -6.7%, improving by 21.9 percentage points compared to the same quarter last year.

Plastics segment

The market situation across the entire product chain remained strongly influenced by supply and demand dynamics in the end-consumer markets, driven by challenging macroeconomic conditions. Imports of products such as fibres and films into the European market from regions with higher price competitiveness continued, despite logistical restrictions caused by the conflict in the Middle East. Due to the ongoing complex situation with supply and demand, caprolactam production at Grupa Azoty Pulawy was halted in Q3 2024, except for a temporary restart of the plant to convert existing material and semi-product stocks.

The EBITDA margin for the Plastics segment in Q3 2024 was -16.1%, improving by 17.9 percentage points compared to the same quarter last year. The segment's results also include the production and sales of Grupa Azoty Polyolefins S.A., which is in the process of launching its plant and conducting commissioning trials. The total sales of this company in Q3 2024 were approximately 60,000 t.

In Q3 2024, Grupa Azoty Police's consolidated revenue from sales amounted to PLN 584 million, with an EBITDA profit of PLN 5 million and a positive EBITDA margin of 0.9%. Compared to the same period last year, EBITDA increased by approximately PLN 50 million, and the net result improved by PLN 151 million, reaching a profit of PLN 15 million.

For the first nine months of this year, Grupa Azoty Police's consolidated revenue from sales amounted to PLN 1.897 billion. From January to September 2023, revenue was PLN 2.265 billion, but there was a net loss of PLN 180.6 million. The financial statement of GA Police shows that the net loss for the period from 1 January to 30 September this year reached PLN 105.8 million.

For the first nine months of 2024, Grupa Azoty achieved consolidated sales revenue of PLN 9.828 billion and an EBITDA result of a negative PLN 299 million, with an EBITDA margin of -3.0%, which is PLN 1.058 billion higher than in the same period last year.

Read More »
LyondellBasell announces financial results for Q3 20245 Nov 2024 / ChemCourier. Polyolefins Market Weekly / ChemCourier. Propylene Weekly / ChemCourier. Styrene Weekly / ChemCourier. Butadiene&C4s Weekly / company news

LYB logo2LyondellBasell, a producer of petrochemical products, announced its financial results for Q3 2024 on 1 November.

The company fell short of Wall Street's earnings expectations due to declining refining margins and weakness in the chemical segment, leading to a 2.8% drop in its shares during pre-market trading.

Refining margins declined globally as oil demand growth remains below average. Crude oil throughput decreased by approximately 8,000 bpd due to unplanned downtimes in the reporting quarter. The company reported a loss of $23 million in the refining segment based on adjusted EBITDA, compared to a baseline profit of $105 million a year earlier.

Revenue for the quarter ending 30 September amounted to $10.32 billion, down from $10.63 billion a year earlier.

• Revenue — Advanced Polymer Solutions: $896 million. This figure represents a year-on-year change of -0.3%;

• Revenue—Olefins and Polyolefins — US: $2.98 billion. This figure indicates an annual change of +3.5%;

• Revenue — Olefins and Polyolefins — Europe, Asia, International: $2.81 billion. This figure demonstrates a year-on-year growth of +14.8%;

• Revenue — Others/Deductions: -$1.25 billion compared to -$1.50 billion. Relative to Q3 of last year, this figure reflects a change of -20.1%;

• Revenue — Refining: $2.05 billion. This figure represents a year-on-year change of -22.9%;

• Revenue — Technologies: $146 million. Compared to the same quarter last year, this figure reflects a change of -33%;

• Revenue — Intermediates and Derivatives: $2.69 billion. This figure marks a year-on-year decline of -12.8%.

• EBITDA — Olefins and Polyolefins — US: $758 million;

• EBITDA — Olefins and Polyolefins — Europe, Asia, International: $81 million;

• EBITDA — Advanced Polymer Solutions: $19 million;

• EBITDA — Technologies: $69 million;

• EBITDA — Others: -$10 million.

Read More »
Pricing
ChemCourier. Polyolefins Market Weekly
ChemCourier. PVC Market Weekly
ChemCourier. Polyolefins Market Weekly
Chem-Courier's Conferences
News
Europe
20 Nov 2024
20 Nov 2024The European SR market has been relatively steady in November. The SBR spot prices have been ranging from €1,700/t to €2,000/t. In response to high demand from Turkish
20 Nov 2024Sweden has introduced a policy to abolish the tax on plastic bags, which had been in effect since May 2020. The tax, amounting to $0.17, played a significant role in
CIS
20 Nov 2024Caprolactam exports from Russia Supplier Destination June 24 May 24 Change Jan-June 24 000 Shchekinoazot China 1.900 3.800 -50% 21.000 Turkiye 1.042 1.000
20 Nov 2024Russia’s benzene output by producer Company Sept 24 Aug 24 change Jan-Sept 24 ‘000 t Benzene Nizhnekamskneftekhim 24.88 26.97 -8% 210.08 TANECO 2.09 2.42
20 Nov 2024Russia’s crude benzene output by producer Company Sept 24 Aug 24 change Jan-Sept 24 ‘000 t Crude Benzene Moscow Coke and Gas Plant* 0.00 0.00 -24% 0.01
Americas
20 Nov 2024According to shipbrokers, an international company has booked MTM Westport vessel to load it with 3,000 t of styrene in the US Gulf on 22—30 November for delivery to
20 Nov 2024Turkish consumers have received an offer of $950/t CIF Turkiye for USA-origin C4-LLDPE this
19 Nov 2024USA-origin PVC has been reportedly available for purchase at $750—770/t CFR Egypt for November shipment, up $20/t compared to offers heard in
Asia
20 Nov 2024
20 Nov 2024Styrene shipments on the United States-Asia route are still under negotiation. In addition to reportedly looking for vessels to ship the commodity from the United
20 Nov 2024According to the Society of Indian Automobile Manufacturers (SIAM), passenger car sales reached 393,238 units in October 2024, a 10.23% month-on-month and a 1.76%
Middle East
20 Nov 2024Turkish consumers have received an offer of $950/t CIF Turkiye for USA-origin C4-LLDPE this
19 Nov 2024The exports of PVC pipes (HS 391723) from Turkiye amounted to 19,782 t in the first nine months of 2024, according to trading statistics. This figure increased by 1%
19 Nov 2024Although India has no domestic styrene production, the country exported some 5,100 t of styrene in August. India re-exported some 4,900 t of SM to Turkiye then as
More news »
Petrochemicals and Polymers

© 2004-2024 Chem Courier, all rights reserved

Free Trial »Subscribe »About Us »Contact Us »Conferences »Methodology »Back to top