More positive Q3 results; Shell and Chevron streamline; India Oil invest in R & D; and serious warnings from the commercial vehicle sector.
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Image: Although all sharply down on the same period last year, there was positive news for 2009 for a number of lubes producers, with several exceeding analysts' expectations. Spain's Repsol, US refiner Holly Corp, speciality producer Calumet and, in their second Quarter, Fuchs Petrolub, all showed an upturn in profits for the year so far. In the marine petroleum sector, the Aegean Marine Petroleum Network announced a 49% uplift in Q3 profits.
While there was less positive short-term news for Petrobras, announcing a 5.6% profit drop quarter-on-quarter, longer term prospects for the Brazilian producer are looking brighter. The company was hindered by its reduction of domestic fuel prices and a one-off tax settlement payment of $1.1bn, however it has also announced the purchase of Chevron's Chile SAC business, producer and marketer of Texaco lubricants in Chile.
Chevron, on the other hand, has not only reduced its Chilean activities, it has also decided to pull out of India, with its latest asset sale being its Indian LPG business to SHV Netherlands.
India appears to be undergoing a period of streamlining and investment in the lubes sector. The Indian Oil Corp (IOC) announced that it would be doubling its R & D investments, developing new technologies to improve its lubricants' life cycles, refining and renewable energy growth. Shell also sees opportunity in Indian markets, with the introduction of a customised lubricant for Compressed Natural Gas vehicles and the announcement that the introduction of other new lubricants placed India in its sights for 2010 growth.
As part of a refocused growth strategy, Shell also sold its Dominican Republic distribution and marketing operations to the Sol group. The oil major also announced the sale in Asia of its Guam, Saipan and Palau retail, commercial and aviation businesses to IP&E Holdings LLC and the sale of it's Austrian Oil Distribution business to Dublin-based holding company DCC. The latter deal is worth €18 ($26m).
In Columbia, Reficar is planning a new refinery in Cartagena, next door to its existing plant, adding 165,000 barrels per day to its capacity. The current plant will also be overhauled.
The freight transport sector continues to suffer from the global economy, with Europe's commercial vehicle manufacturers meeting with Europe's politicians to tell them just how bad the situation is in terms of sales, workshop business and manufacturing. The manufacturers are predicting continued depression of the sector until 2011. Volvo underlined the point by selling its stake in China's Jinan Huawo Truck Corporation. The 50% share will be bought by Sinotruck and the China National Heavy Duty Truck Group.
Meanwhile the announcement that MAN boss, Hakan Samuelsson, is stepping down as Chief Executive of the VW-owned truckmaker appears to have further increased the adrenaline pumping through the industry. Samuelsson's resignation seems to stem from VW Chairman Ferdinand Piech's desire to fully merge MAN, and Swedish truck maker Scania in which VW has a part share.