Oil Update — Crude slips as China lockdown weighs on fuel demand; Devon Energy posts higher quarterly profit

Update Oil Update — Crude slips as China lockdown weighs on fuel demand; Devon Energy posts higher quarterly profit
Oil prices nudged lower Tuesday. (Shutterstock)
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Updated 03 May 2022

Oil Update — Crude slips as China lockdown weighs on fuel demand; Devon Energy posts higher quarterly profit

Oil Update — Crude slips as China lockdown weighs on fuel demand; Devon Energy posts higher quarterly profit
  • Global fuel demand has recovered to near pre-pandemic levels, while Western sanctions on Russia, following its invasion of Ukraine, have tightened crude oil supplies worldwide

RIYADH: Oil prices slipped on Tuesday following the second day of thin trading in Asia, pulled in opposite directions by China’s COVID-19 lockdowns, which could weigh on fuel demand, and prospects for a supply hit from a possible European oil embargo on Russia.

Brent crude futures fell 23 cents, or 0.2 percent, to $107.35 a barrel at 0532 GMT, wiping out gains earlier in the day in trading thinned by holidays in China, Japan and parts of Southeast Asia.

US West Texas Intermediate crude futures similarly dropped 24 cents, or 0.2 percent, to $104.94 a barrel, after hitting an intraday high of $105.80.

Marathon Petroleum posts profit in Q1

US refiner Marathon Petroleum Corp. posted a first-quarter profit on Tuesday, compared with a loss a year earlier, as demand for fuel and refined products recovered to near pre-pandemic levels amid tight supplies.

Global fuel demand has recovered to near pre-pandemic levels, while Western sanctions on Russia, following its invasion of Ukraine, have tightened crude oil supplies worldwide.

In addition, refining capacity dropped worldwide during the pandemic, with several less profitable oil refineries closing operations in the last two years.

The company said its refining and marketing margins rose to $15.31 per barrel in the first quarter from $10.16 per barrel a year ago.

Crude capacity utilization was 91 percent, resulting in total throughput of 2.8 million barrels per day, compared with an 83 percent utilization and total throughput of 2.6 million bpd a year earlier.

The Findlay, Ohio-based refiner said net profit was $845 million, or $1.49 per share, for the three months ended March 31, compared with a loss of $242 million, or 37 cents per share, a year earlier.

Devon energy’s profit soars in Q1

US shale producer Devon Energy reported a rise in quarterly income on Monday, boosted by surging oil and gas prices after Russia’s invasion of Ukraine stoked global supply concerns.

The Oklahoma City-based company reported net earnings of $1 billion, or $1.48 per share, for the first quarter ended March 31, from $213 million, or 32 cents per share, last year.

Petrobas increases jet fuel prices

Brazilian state-run oil company Petrobras increased its jet fuel prices in several cities starting on Sunday, data published on its website showed.

The average hike was close to 7 percent, according to the Brazilian airlines association Abear.

Kerosene prices have climbed by about 49 percent this year.

(With input from Reuters) 

 


Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales
Updated 16 sec ago

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

RIYADH: Saudi Arabia’s National Agricultural Development Co. turned in profits during the first half of 2022 helped by a surge in sales of dairy and food processing.

The company turned green with a profit of SR43 million ($11 million) in the first six months of the year from losses of SR10.98 million in the same period last year, according to a bourse filing.

The company attributed the result to an 18 percent growth in sales of dairy and food processing, leading to a 21 percent revenue increase.


Saudi Chemical's first-half profit slips 32% to $13m

Saudi Chemical's first-half profit slips 32% to $13m
Updated 8 min 37 sec ago

Saudi Chemical's first-half profit slips 32% to $13m

Saudi Chemical's first-half profit slips 32% to $13m

RIYADH: Saudi Chemical Co. saw its profit drop 32 percent during the first half of 2022 to SR47 million ($13 million), from SR68 million in the prior-year period, a bourse filing showed.

The chemical producer attributed the profits decline to a 6 percent decrease in gross profit during the first six months of 2022 to SR241 million.

The increase in finance costs combined with losses from interest rate hedging and foreign currency revaluations also contributed to decline.


Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn

Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn
Updated 22 min 7 sec ago

Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn

Oil behemoth Aramco beats forecasts with record Q2 profit of $48.4bn

RIYADH: Saudi Aramco’s profit surged 90 percent in the second quarter of 2022, beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019.

The oil giant was expected to report $46.2 billion in net income based on 15 analyst forecasts.

Profits of “the most profitable oil company in the world” hit SR182 billion ($48.4 billion) after revenue soared 80 percent to SR562 billion, according to a bourse filing.

This is up from SR148 billion in the prior quarter and SR95.5 billion in the second quarter of 2021.

The crude producer said the results were primarily driven by rising crude prices which soared to record highs earlier this year in addition to improved downstream margins.

Aramco also maintained stable quarterly dividends at SR70.3 billion, representing a per-share payout of SR0.3198.

Recent highlights:

  • Aramco and Cognite, a global leader in industrial software, announced the launch of CNTXT, a joint venture based in the Kingdom, which will be headquartered in Riyadh. CNTXT will support industrial digitalization in Saudi Arabia and the wider Middle East and North Africa region.
  • Aramco was reported to weigh an initial public offering of its unit Aramco Trading Co. that could potentially raise over $30 billion, slated to become one of the world’s biggest listings this year.
  • Aramco joined hands with Thailand's national oil company PTT, as it expands its footprints in Asia. Both companies will work together in areas of blue and green hydrogen and various clean energy initiatives.
  • Aramco acquired US-based Valvoline Inc.’s global products unit in a $2.65 billion deal.

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed
Updated 14 August 2022

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed

Oil Updates — Crude down; US offshore oil output to restart; Russian oil flows to Czech Republic resumed

RIYADH: Oil prices plunged around 2 percent on Friday, on expectations that supply disruptions in the US Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.

Futures, however, were still on track for a weekly gain.

Brent crude futures fell $1.45, or 1.5 percent, to settle at $98.15 a barrel, while US West Texas Intermediate crude $2.25, or 2.4 percent, to settle at $92.09 a barrel. Both contracts gained more than 2 percent on Thursday.

US offshore oil output to restart after pipeline fix

A damaged oil pipeline component that disrupted output at several offshore US Gulf of Mexico platforms was repaired late Friday, a Louisiana official said, with producers moving to reactivate some of the halted production.

A failed flange connecting two onshore pipelines operated by Shell Plc in Louisiana leaked an estimated two barrels of oil. The oil, which spilled onto an area covered with gravel, has been removed, said Chett Chiasson, executive director of the Greater Lafourche Port Commission, and the flange had been repaired by Friday evening, he said.

The spill halted the operation of two pipelines that bring oil from several production facilities off the Louisiana coast, curtailing about 600,000 barrels per day of output from Shell, Chevron Corp. and Equinor, according to two people familiar with offshore operations.

On Friday evening, the Amberjack and Mars pipelines that were stopped by the leak were back online and returning to normal service, after crews completed the repairs at the Fourchon booster station, Shell spokesperson Cindy Babski said.

Shell is also in the process of ramping up production at its three platforms that deliver Mars sour crude, an oil grade popular with refiners in the US and Asia, Babski added.

Russian oil flows to Czech Republic have resumed

Russian oil flows to the Czech Republic through the Druzhba pipeline resumed after more than a week on Friday evening, Czech pipeline operator MERO said, as transit fee payments were unblocked.

Supplies via the Druzhba pipeline had been suspended to the Czech Republic, Hungary and Slovakia since Aug. 4 because Western sanctions prevented paying transit fees to Ukrainian transit company Ukrtransnafta, Russian pipeline monopoly Transneft said on Tuesday.

A European bank has agreed to process the payment for the transit of Russian oil through Ukraine, removing the cause of the stoppage.

“Supplies of Russian oil through the southern branch of the Druzhba pipeline on the Czech territory resumed at 8 p.m. today (Friday),” MERO said in a statement.

Czech refiner Unipetrol, a unit of Poland’s PKN Orlen, confirmed its refineries again started receiving oil through Druzhba and added the week-long outage had not affected its operations.

(With input from Reuters) 


Saudi Tadawul sees profit declining 23% amid record IPO listings

Saudi Tadawul sees profit declining 23% amid record IPO listings
Updated 45 min 7 sec ago

Saudi Tadawul sees profit declining 23% amid record IPO listings

Saudi Tadawul sees profit declining 23% amid record IPO listings

RIYADH: Saudi Tadawul Group Holding Co., owner of the Kingdom’s bourse, has posted a 23-percent first-half profit drop amid a record year of initial public offerings.

The group made SR278 million ($74 million) in profit during the first half of 2022, down from SR362 million in the same period last year, it said in a bourse filing.

This was coupled with an 8.3 percent decline in revenue to SR592 million, mainly due to the decrease in trading services and post-trade services.

Higher salaries and employee-related benefits further weighed on profit during the six-month period, leading to a rise of 9.8 percent in expenses to SR301 million.

The chairman of the Capital Market Authority, Mohammed Elkuwaiz, had earlier told Arab News that Saudi IPOs are on course for a record year, adding that the number of listings in the first half of 2022 has already surpassed those of last year.

Commenting on the results, CEO Khalid Al-Hussan said: “Testament to the avid growth and diversification of our market and its attractiveness is the growing number of IPOs during the first half of the year, resulting in 246 listed companies on both the main market and Nomu – Parallel Market.”

Tadawul also launched single stock futures contracts earlier this year as its second derivatives product.