ExxonMobil Looking to Further Increase Resin Production in 2022
February 01, 2022
Global energy major and resin producer ExxonMobil said during its Q4 2021 earnings call that it is ramping up manufacturing at its newest facility in Texas and plans to further expand resin production in Louisiana later this year.
In his comments looking ahead to 2022, ExxonMobil CEO Daren Woods said the company is already ramping up manufacturing at its Gulf Coast Growth Ventures facility with Sabic in Corpus Christi, Texas, which includes two Polyethylene units with a combined annual production of 1.3 million mt/yr. The 50-50 joint venture announced the start of production back on January 20.
Woods added that ExxonMobil also expects to startup its Baton Rouge, Louisiana Polypropylene expansion later this year, but did not elaborate on a timeframe. Polypropylene production at the Baton Rouge facility is at 400,000 mt/yr, according to The Plastics Exchange.
Woods comments came as ExxonMobil reported earnings of $8.9 billion, or $2.08/share, during its Q4 2021 earnings call, resulting in full-year earnings of $23 billion, or $5.39/share assuming dilution. The company's Q4 earnings came amid capital and exploration expenditures of $5.8 billion in Q4 and $16.6 billion for the full year 2021, in line with guidance.
Among other Q4 highlights, ExxonMobil said it generates $48 billion of cash flow from operating activities, the highest level since 2012, more than covering capital investments, debt reduction, and dividend. The company also deduces structural costs by an additional $1.9 billion, increasing total savings to nearly $5 billion versus 2019, and strengthen its balance sheet to pre-pandemic levels by paying down $20 billion in debt.
Meanwhile, the company's Chemicals business saw industry margins decline from historically high levels to the middle of the 10-year range due to increased industry supply and higher feed and energy costs. However, its annual 2021 Chemical earnings of $7.8 billion achieved record, reflecting robust industry demand, strong reliability, structural cost reductions, and the company's global supply and logistics advantages.
By Brian Balboa for The Plastics Exchange.
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