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Companies post mixed 3Q performances as crude slides, NGLs and olefins advance
HOUSTON, October 25, 2016 (PCW) -- Companies in PetroChem Wire’s stock price index basket posted mixed results in the third quarter amid crude losses, while NGL and olefins prices moved up.
As crude gave up 50 cents/bbl, or 1.11%, in 3Q, companies in the refining/aromatics sector saw similar losses with the group’s average stock price down 95 cents, or 1.16%, during the same time frame.
Conversely, the midstream, olefins/polyolefins and vinyls groups benefitted from higher NGL and olefins prices in the quarter. NGL prices rose between 3-10 cpg (10-15%), while olefins picked up nearly 9 cpp (23-25%). The midstream group rose 4.87%; olefins/polyolefins 3.72% and vinyls, 2.34%.
The rising prices were largely on the back of bullish demand expectations. In September, ethane was exported from the first time out of the US Gulf Coast. In late July, ExxonMobil and Sabic said they were mulling a joint-venture ethane cracker either in Texas or Louisiana. On the other hand, some of the rising prices --- on the olefins side --- was the result of unplanned plant outages amid extreme weather and flooding along the Gulf Coast.
This could lead to operations impairments that could show up in 3Q earnings. Additionally, such inclement weather could lead to delays in construction of several upcoming crackers with details of updated construction schedules likely to be revealed during earnings calls.
Consolidation among large firms also boosted market confidence. Dow and DuPont shareholders approved of the companies’ merger and in September, Enbridge bought Spectra Energy for $28 billion, creating the largest energy infrastructure company. -- Samantha Hartke
A complete list of earnings calls is below:
Oct 25: DuPont
Oct 27: Dow, Marathon Petroleum, Enterprise Product Partners, MexiChem
Oct 28: Eastman Chemical, ExxonMobil, Chevron, Phillips 66, Hunstman
Oct 31: Boardwalk Pipeline Partners, Williams
Nov 1: LyondellBasell, Occidental Petroleum, Shell
Nov 2: Targa
Nov 3: Inter Pipeline
Nov 4: Pembina