Q4 brings some relief for specialists; Imperial, BP and GS Caltex change direction; Toyota under global recall spotlight, but less attention for VW.
Amongst the company results, Huntsman's Q4 and Full Year results showed a sharp drop in Q4 net income from $598m in 2008 to just $66m this year, leaving the Full Year income at $114m, from $609m in 2008. Final earnings were also down from $643m to $511m, as were revenues at $7763m from $10215m. However, there were signs of recovery with Q4 revenues up 2% at $2.096bn for 2009and seemingly ahead of market expectations. Q4 Volumes and Earnings were also higher than the same period in 2008.
Calumet Speciality Products announced improved annual profits but reduced revenue for 2009, with the former up 39% at $61.8m and the latter down $600m at $1.8bn. Income for Q4 dropped 56% at $8.2m blamed on higher crude prices set against lower export prices, although lubricating oil sales were buoyant. February production this year was hit by an explosion at the company's Shreeveport refinery, with damaged a pollution control unit at the 11,900b/d mixed refinery.
Holly Corporation also announced a tough year, showing a net loss of $40.55m attributable to shareholders for Q4 of 2009 against income of $50.56m for the same period the previous year. This rounded off a year which showed net income of just $19.5m, against $120.6m in 2008. However, the company also announced a $93m movement of assets, including the 2m barrel storage and loading facilities at its Navajo refinery in New Mexico which will be bought by Holly Energy Partners LP.
There was better news for Turkey's leading fuel distributor, Petrol Ofisi, who announced a massive 185% increase in net profits for 2009 at $191m against the previous year, with net sales of around $9bn. The company still believes sales were hit by the poor global economy and are expecting a "more confident and demanding competitive atmosphere" in 2010.
In Canada, Imperial Oil announced it would be winding down oil production at its Sarnia refinery in Ontario, which has a capacity of 6,600bd of Group I and II base oils. The plant will move across to fuel production by mid-2011. BP is selling its Toronto-based Castrol Canada blending and packaging plant to Wakefield Canada. Wakefield already has exclusive rights to sales, marketing and distribution of Castrol lubes in Canada. And South Korea's GS Caltex is set to open an Indian operation to begin an export drive of its petroleum and petrochemical products, with sales expected to grow from $304m to $869m. According to GS Caltex President Na Wan-bae, the company "will be active in developing overseas markets because being globally competitive is a must now, not an option". This would appear to be a move in the opposite direction from Caltex’s owners Chevron, whose slimming of downstream operations was highlighted in last month’s Bulletin.
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In the automotive sector, the biggest news in February continued to be Toyota's woes as the Japanese car giant announced an 8 million vehicle recall of a number of models as a result of an accelerator problem. This was further compounded when a brake problem was revealed in the new generation hybrid Prius models and some luxury Lexus vehicles, also requiring a recall. Amid accusations that Toyota had been to slow to react to both The scale of the issues were so great that Toyota executives were summoned to government hearings in Japan, the UK and the US and issued global apologies.
As the recriminations continued, Toyota worked fast to rectify the problems, with national importers and dealerships being supplied with new parts within a matter of days and a huge turnover of repairs undertaken. Although many commentators were predicting significant damage to the Toyota brand, early research is showing signs of public support for the company.
As if to emphasise the fact that, in reality, a significant number of recalls are issued annually by almost every manufacturer with little fuss, a 200,000 vehicle recall was announced by VW for a number of models made in Brazil in the last year.
Meanwhile, India's car maker, Tata has secured a £340m loan from the European Investment Bank to develop its newly acquired Jaguar Land Rover brand, but General Motors has taken the decision to axe its military-influenced Hummer brand after a deal with a Chinese manufacturer was blocked.