Tag Archives: Oil & Gas Refining and Marketing (TRBC level 4)

Brazil’s Petrobras posted solid margins, but a one-time fee hit the advantage | Instant News


RIO DE JANEIRO (Reuters) – Petrobras Brazil posted unexpected losses thanks to non-recurring fiscal costs, even as operating income was supported by a recovery in fuel sales and oil revenues.

FILE PHOTO: The logo of Brazil’s state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / File Photo

In Wednesday’s securities filing, Petroleo Brasileiro SA PETR4.SA, the official title of the state-owned oil company, recorded a third-quarter loss of 1.546 billion reais ($ 275 million). Income before interest, tax, depreciation and amortization (EBITDA), adjusted for one-time items, was 33.4 billion reais, above Refinitiv’s estimate of 29.7 billion reais.

Among the one-time charges the company highlighted were a 1.9 billion reais payment to two state governments to settle unpaid tax disputes, as well as a significant bond buyback program. The decline in the Brazilian real against the US dollar helped amplify some of the losses, the company added.

Petrobras said that, excluding one-time items, the company will post a net profit of 3.2 billion reais, beating Refinitiv’s estimate of 736 million reais.

Among the positives for the company is significant sales growth, especially gasoline and diesel. Net revenue was 70.7 billion reais in the quarter, up 39% from the previous period.

“The recovery in sales of diesel and gasoline is prominent,” the company said. “These products were severely affected by COVID-19 in the second quarter and the recovery is the strongest in our portfolio, both in terms of volume and price.”

Crude oil exports to China – which have skyrocketed in recent quarters as production increased as the worst pandemic passed – slowed to pre-pandemic levels. Meanwhile, exports to other markets such as the United States, Spain and Indonesia have grown significantly since the second quarter.

Even Chinese demand may have recovered later in the quarter.

Brazil jumped to become China’s third-largest crude supplier in September, import data showed on Sunday, as independent Chinese refiners scooped up cheap supplies of relatively high-quality South American exporter oil.

Petrobras said that average production costs fell from $ 7.90 per barrel of oil equivalent in the second quarter to $ 4.50 in the third, thanks in part to increased efficiency and partly due to real depreciation.

($ 1 = 5.62 reais)

Reporting by Gram Slattery and Sabrina Valle; Edited by Christian Plumb and Sam Holmes

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UPDATE 1-bid of Cosan Brasil’s unit for Petrobras’ majority stake in Gaspetro | Instant News


(Adding Cosan doesn’t reveal bid details)

SAO PAULO, October 26 (Reuters) – Brazilian energy company Cosan SA said on Monday its subsidiary Compass Gas e Energia had made a bid for a 51% stake in state-owned oil company Petroleo Brasileiro SA in Gaspetro.

Cosan did not disclose details of the size of Kompas’ bid for Gaspetro Petrobras shares, due to the competitive nature of the tender process. Petrobras, which is trying to divest its stake in the energy sector, put its stake on the market in late February. Japan’s Mitsui holds another 49% stake in Gaspetro.

Last month, Cosan said it would cancel the planned initial public offering of Compass Gas e Energia, the country’s largest natural gas distributor, due to market conditions. (Reporting by Gabriel Araujo, written by Gabriel Stargardter, editing by Stephen Eisenhammer and Chris Reese)

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Australian ampole may shut down oil refineries despite a national security push | Instant News


MELBOURNE (Reuters) – Ampol Ltd ALD.AX is considering closing the Lytton refinery, one of four Australian refineries, as it has suffered heavy losses due to falling fuel demand driven by the coronavirus and competition from large Asian factories.

Ampol, formerly known as Caltex Australia, was able to shut down Lytton despite a recent A $ 2.3 billion ($ 1.6 billion) offer from the Australian government incentives to the industry to keep the country’s refineries open for national security.

Ampol shares rose as much as 2.3% after marking the refinery review, outpacing gains in the broader market .AXJO.

“We really appreciate the government acknowledging with the proposed package the challenges facing the refining sector, … but we have to be realistic about the extreme structural stresses facing Lytton,” Ampol Chief Executive Matt Halliday said in an interview.

Ampol on Thursday reported an A $ 141 million loss at the factory so far this year, worse than analyst expectations.

“The demolition of demand and oversupply that we have seen … presents very challenging margin prospects,” Halliday told Reuters.

“That is on top of the pressure we face in an international context. Refinery (Australia) is relatively small and relatively old. “

Ampol said it would review the future of the Lytton plant, located in the state of Queensland, in the second quarter of 2021, considering whether to close it, turning it into a fuel import terminal as it did with the Kurnell refinery in 2014, continuing existing operations or piloting a model. another operation.

“Lytton’s larger-than-expected loss for Q3 reflects a combination of weak refining margins and the structural aspects of its relatively high fixed cost base,” said RBC analysts in a note.

Energy Minister Angus Taylor said in emailed comments that the government is working with Ampol and industry on its fuel safety package.

Analysts expect Ampol, which fended off a takeover offer earlier this year, shutting down Lytton to boost profits.

Rival Viva Energy Group Ltd VEA.AX last month it also warned it would close its refinery in Geelong, near Melbourne.

Reporting by Sonali Paul; Additional reporting by Anushka Trivedi in Bengaluru; editing by Richard Pullin

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Germany has said it expects the EU to impose sanctions on Russia over the Navalny case | Instant News


BERLIN (Reuters) – Germany expects the European Union to impose new sanctions on Russia for poisoning opposition leader Alexei Navalny with an internationally banned nerve agent, Foreign Minister Heiko Maas said on Saturday.

Navalny emerged from a coma in early September after suddenly falling ill during a flight over Siberia on August 20 and was then flown to Berlin for treatment. German doctors say he was poisoned with Novichok, a Russian nerve agent.

Germany, France and other Western countries have demanded an explanation from the Kremlin for Navalny’s disease. Russia says it sees no solid evidence he was poisoned and denies any involvement in any attacks against him.

“I am sure that there will be no more sanctions,” Maas told the t-online news portal in an interview.

‚ÄúSanctions must always be right on target and proportionate. But grave breaches of the International Chemical Weapons Convention cannot go unpunished. In this regard, we are united in Europe, “added Maas.

Germany currently holds the rotating presidency of the 27-member bloc. EU leaders will discuss their reactions and possible sanctions against Russia at their next summit on October 15-16.

“If the laboratory results of Germany, Sweden and France are confirmed, there will be a clear response from the EU. I am sure about that, “said Maas.

Germany has sent samples taken from Russian opposition politicians to the Organization for the Prevention of Chemical Weapons (OPCW) in The Hague for additional testing in their laboratories.

The Russian Foreign Ministry said on Saturday that the German Foreign Ministry had sent its embassy in Berlin a refusal in response to the embassy ‘s request to have access to Navalny.

It also called on those who inspired the “campaign to demonize Russia” to stop.

A German Foreign Ministry spokesman pointed to an earlier statement from a ministry spokesman, saying Berlin had forwarded Russia’s request for consular access to Navalny and that they had notified the Russian Embassy about this move on September 23.

But it is up to Navalny himself whether he wants to be visited by Russian officials or not, the spokesman added.

The Navalny case worsened relations between Moscow and a number of Western countries. Germany has faced calls to halt its near-completion Nord Stream 2 pipeline, which is meant to bring more Russian gas directly to Germany.

Asked whether European sanctions against Russia should cover Nord Stream 2, Maas said there are more than 100 European companies involved in the project, half of them in Germany.

“So many European workers will experience a construction freeze,” said Maas.

Nord Stream 2 is led by Russian state gas giant Gazprom, with half of the funding provided by Germany’s Uniper and BASF’s Wintershall unit, the Anglo-Dutch Shell, Austrian OMV and France’s Engie.

Reporting by Michael Nienaber; Additional reporting by Maria Tsvetkova in Moscow; Edited by Louise Heavens and Frances Kerry

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Germany urges the EU to impose sanctions on Russia over the Navalny case | Instant News


BERLIN (Reuters) – German Foreign Minister Heiko Maas has called for new EU sanctions against Russia over poisoning opposition leader Alexei Navalny with an internationally banned nerve agent.

Navalny emerged in recent weeks from a coma after suddenly falling ill during a flight over Siberia and being flown to Berlin for treatment. German doctors say he was poisoned with Novichok, a Russian nerve agent.

Germany, France and other Western countries have demanded an explanation from the Kremlin for Navalny’s disease. Russia says it sees no solid evidence he was poisoned and denies any involvement in any attacks against him.

“I am sure that there will be no more sanctions,” Maas told the t-online news portal in an interview on Saturday.

‚ÄúSanctions must always be right on target and proportionate. But grave breaches of the International Chemical Weapons Convention cannot go unpunished. In this regard, we are united in Europe, “added Maas.

Germany currently holds the rotating presidency of the 27-member bloc. EU leaders will discuss their reactions and possible sanctions against Russia at their next summit on October 15-16.

“If the laboratory results of Germany, Sweden and France are confirmed, there will be a clear response from the EU. I am sure about that, “said Maas.

The Navalny case worsened relations between Moscow and a number of Western countries. Germany has faced calls to halt its near-completion Nord Stream 2 pipeline, which is meant to bring more Russian gas directly to Germany.

Asked whether European sanctions against Russia should cover Nord Stream 2, Maas said there are more than 100 European companies involved in the project, half of them in Germany.

“So many European workers will experience a construction freeze,” said Maas.

Nord Stream 2 is led by Russian state gas giant Gazprom, with half of the funding provided by Germany’s Uniper and BASF’s Wintershall unit, the Anglo-Dutch Shell, Austrian OMV and France’s Engie.

Reporting by Michael Nienaber, editing by Louise Heavens

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