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“INEOS is a unique business”, says founder and chairman, Jim Ratcliffe
Last month INEOS announced that it had achieved ‘a record breaking profit of 4.3 billion euros of EBITDA last year’. It’s a figure only rivalled by the very biggest names in the industry. The group is also repaying 1.2 billion of euros from its cash resources.
INEOS Group has also just closed its latest debt financing and repricing. This included raising 1.4 billion euros of new loans and repricing 3 billion euros of existing debt. The new borrowings will save the group over 100 million euros a year and were oversubscribed by 50%, showing the credit market’s strong confidence in the company.
“These figures confirm that INEOS is doing better than ever,” said Jim Ratcliffe, INEOS founder and chairman.
“All the businesses are performing well and our successful refinancing shows that the market is clearly recognising this fact.”
INEOS is composed of 27 businesses, organised into six main groups. INEOS Group is the largest of these clusters with Styrolution, INOVYN, Enterprises, O&P (UK) and O&P (South) making up the rest. Even the smallest of these businesses has a billion-euro turnover and is a substantial undertaking in its own right “We’ve spent the last three months working on a comprehensive cross border finance package including euro and dollar borrowings,” said finance director John Reece.
“I am pleased to say that we’ve achieved better terms across the board, saving the company 100 million euros annually and pushing out debt maturities until 2022 at the earliest”. This follows equally successful refinancings of our Inovyn and Styrolution businesses in 2016.”
The new borrowing also includes a “step down” facility whereby the repayment costs will be reduced if the company meets certain financial targets.
“INEOS is a unique business, “ added Jim Ratcliffe.
“We only set it up eighteen years ago, and it has never floated. It’s a tribute to everyone involved – owners, management and staff – that it is now doing so well.”www.ineos.com
Bob Dudley will open SPE Offshore Europe. Held biennially in Aberdeen since 1973, it is the largest E&P conference and exhibition outside North America
BP group chief executive Bob Dudley will underline the value of the North Sea in the oil major’s global portfolio when he leads the opening plenary session at SPE Offshore Europe 2017 being held in Aberdeen from 5-8 September 2017.
Dudley, who calls BP’s UK North Sea business one of its “crown jewels”, will address the hundreds of delegates expected to attend the opening plenary session at Europe’s foremost exploration and production (E&P) technical conference and exhibition. Other senior level plenary speakers will be announced in due course.
BP expects to bring two of the largest new developments in the North Sea – the Quad 204 redevelopment and the new Clair Ridge project – into production over the next year or so, as well as continuing to invest in other North Sea assets. Over the same period, BP plans to participate in five exploration wells in the region and in around 50 new development wells over the next three years. BP’s North Sea production output is expected to double from 2015 levels to 200,000 barrels of oil a day by 2020.
Conference chair Catherine MacGregor, president, reservoir characterisation group, Schlumberger, commented: “As one of the most eminent figures in our industry, Bob Dudley will provide an inspirational scene-setter under the conference theme Embracing New Realities: Reinventing our Industry. Bob’s insight will kick-start OE2017 as we encourage the industry to think beyond cost efficiency and embrace new technologies, new types of business models and collaborations that will lead to sustainable ways of working.”
New for 2017 will be a Decommissioning Zone with a themed exhibition and conference space with over 40 decommissioning technology and service providers.www.offshore-europe.co.uk
Iran’s crude exports have doubled in five years
VesselsValue (VV) provides ‘instant, accurate and unbiased data that can be accessed from anywhere in the world, at any time’.
VV is used by the world’s leading commercial and investment banks, private equity, investment and hedge funds, shipowners and operators, lawyers, accountants, brokers, underwriters and more.
“Our senior analyst William Bennett has put together an overview of where Iranian crude is currently trading,” writes VV’s associate director Claudia Norrgren.
“With the loosening of Iranian sanctions last year, there has been a marked increase in the seaborne demand for Iranian crude exports.
“However, nothing is certain, and with new sanctions on Iran announced on 3rd February 2017, tensions are high. The question is can Iran keep increasing their exports?www.vesselsvalue.com
(l-r) Cutting the ribbon to open the site are Hydrogenics’ CEO, Filip Smeets, councillor Barney Crockett and Toyota director, Paul Van Der Burgh
Aberdeen’s second hydrogen refuelling station was officially opened in late February along with the launch of a fleet of 10 hydrogen fuelled Toyota Mirai cars.
The £2.6million station will serve the city’s expanding fleet of cars and vans and will be fully operational mid-March. Funded by Aberdeen City Council, ERDF, Transport Scotland and NESTRANS, it was built and will be maintained and operated by Hydrogenics.
Located in Cove, the Aberdeen City Hydrogen Energy Storage (ACHES) facility has four electric recharging points and has the potential to produce 130kg of hydrogen per day. Enabling fast refuelling, hydrogen is dispensed at 350 bar and 700 bar pressure.
The 10 Toyota Mirai cars will be leased for three years with five going to the National Health Service (NHS), three to the Co-wheels car club, one to Scottish Environmental Protection Agency (SEPA) and one to Aberdeen City Council. The project is part funded by the UK government Office for Low Emission Vehicles (OLEV) and Transport Scotland.
“The Aberdeen Hydrogen Bus Project has been a major success and is helping to inform the growth and development of hydrogen technologies and the hydrogen industry,” said councillor Barney Crockett.
“The benefits of this latest project complement what has been achieved already and will be felt locally, nationally and internationally.”
An international summit on the hydrogen transport supply chain will be hosted by Aberdeen from 15th – 17th March. The H2 Transport Summit will bring together government, industry, local businesses and key influencers.www.h2aberdeen.com
(l-r) Simon Elliott, MAN UK managing director, Glyn Moores and Ian Broomhead from Pullman Fleet Services, and Mark Binns, managing director, HOYER Petrolog UK
Ellesmere Port-based Pullman Fleet Services (PFS) has won the annual HOYER/MAN dealer of the year award. The winners of the technician and outstanding performer of the year awards were also announced.
“The awards recognise those maintenance providers with an outstanding performance throughout the year, in addition to individuals who have made a significant contribution to the success of the HOYER Petrolog fleet,” said Allan Davison.
Pullman Fleet Services delivered a 100% record on safety and scored an impressive 96.4% on fleet availability with a 98.8% MOT pass rate.
The technician of the year award went to Gwynne Jones of Pullman Fleet Services.
“Gwynne has presented virtually every HOYER MOT this year and through completing thorough quality checks has maintained a solid first time pass rate on the HOYER contract for the past two years,” said Peter Ellison, head of fleet services SHEQ & Compliance, who was one of the judges.
“He has taken ownership of the first time pass rate for PFS and provides feedback from the test station sharing best practice to the rest of the workshop. Gwynne has developed and maintained a good professional relationship with VOSA at all times and achieved credibility with the testers.”
The outstanding performer of theyear award went to Nathan Adcock, workshop controller, Aquila Truck Centre with the special recognition award going to Jess Adlard who runs the operation at HRVS Scunthorpe.
Andrew Owen – ‘the participation of Brookfield Business Partners will allow Greenergy to participate in larger-scale strategic mergers and acquisition activities to propel our business to its next phase of development’.
Greenergy has reached agreement for Brookfield Business Partners (NYSE: BBU; TSX: BBU.UN) to invest in the business with the aim of accelerating growth. Existing Greenergy management shareholders will invest alongside Brookfield Business Partners and will retain a 15% share in the business.
As part of the process all existing non-management shareholders will exit the business. There will be no change to company strategy and the current management team will remain in place.
“It has been our long-standing aim to increase our access to capital through a strategic investor,” said Andrew Owens Greenergy’s chief executive.
“The participation of Brookfield Business Partners will allow us to participate in larger-scale strategic mergers and acquisition activities to propel our business to its next phase of development.”
Established in 2016, Brookfield Business Partners acquires and manages businesses with high barriers to entry, low production costs and the potential to benefit from Brookfield’s global expertise as an owner and operator of real assets. Its investment objective is to generate long-term returns without taking undue risk, and it seeks returns of at least 15% on its investments.
Cyrus Madon, chief executive officer of Brookfield Business Partners, commented:
“Our investment in Greenergy expands our footprint in the European market through a business that provides an essential service and a track record of providing customers with reliable and competitive supply. Greenergy is well positioned to continue growing its service offering for its long-term UK customer base, and we believe we can broaden the company’s operations outside of the UK by leveraging our global presence.”
The transaction is expected to conclude in Q2 2017. Its value has not been disclosed.www.greenergy.comwww.brookfieldbusinesspartners.com
A new bunkering facility supplying marine gas oil (MGO) has now opened on the Thames. Operated by the marine division of Certas Energy, the Thames facility stores distillate marine fuel (DMA grade MGO with less than 0.1% sulphur).
The new bunkering facility can accommodate smaller vessels such as bunker barges, through to large vessels with fuel being delivered via truck or ex-pipe.
“In line with our growth plans, this Thames location is a tactical addition to Certas Energy’s marine fuel offering, enhancing our storage and supply portfolio,” said Gary Byers, general manager for Certas Energy Marine.
“With depots near every major British port, Certas Energy marine fuel customers can take advantage of our extensive and reliable delivery network, capable of covering all bunkering needs.”
“Certas Energy continuously monitor the whole of the market to ensure that we keep up to date,” said Varun Chhabria, head of marine and risk at Certas Energy.
“Currently bullish positioning is stretched, price momentum is fading and the forecasting fundamentals for the following months do suggest some peaks. With so many moving parts and with no surprise that OPEC has stepped back into market management mode, it has steered in a new era of growth within specific product lines for the oil industry.”
www.certasenergy.co.uk
(l-r)) Joe Roddy, Volvo’s network truck sales director North & Ireland with Michael Cundy, MD, Suttons Tankers and John Sutton, CEO, Suttons Group
Suttons Group is investing more than £17m in new tractor units for its UK road tanker business. The purchase of over 200 new Euro-6C 6×2 tractor units in the next two years will provide capacity for recent growth and contribute to the company’s strategy to invest in equipment that offers its customers the most effective and flexible solutions.
The strategic procurement process has considered the vehicle specification, fuel efficiency, environmental impact, vehicle reliability, after sales support and whole life cost.
“Suttons Tankers is the UK’s largest bulk chemical logistics company and this latest deal continues Suttons commitment to investing in the latest equipment and technology for both existing and new customers,” said John Sutton, CEO Suttons Group.
“Our drivers’ safety and wellbeing is of great importance so all trucks have undergone an evaluation by a driver trainer, focusing on areas like seat comfort, cab and bed access, noise and cab design.
The deal has been agreed with both Volvo and MAN with Volvo receiving the biggest proportion of orders in the first year.
“Volvo Trucks is absolutely delighted and very excited to have won such an important supply agreement from Suttons,” added Mike Corcoran, commercial director, Volvo Trucks UK & Ireland:
“We’re very proud to be working closely with such an internationally important logistics and supply chain company.”
Suttons operates internationally with key business centres in New Jersey, Houston, Chicago, Widnes, Antwerp, Ludwigshafen, Paris, Kuantan, Singapore, Shanghai, Tokyo and Khobar.www.suttonsgroup.com
The Freight Transport Association (FTA) is concerned that proposed revisions to the European Commission’s Driver CPC Directive (Certificate of Professional Competence) could limit operators’ ability to provide relevant training for their drivers….
“With one of the proposed revisions preventing training on the same subject within the five-year period, an unintended consequence could be that a driver would undertake training that was less relevant to his or her role just to fulfil the statutory requirement,” explained Chris Yarsley, FTA’s EU affairs manager.
“This could hamper keeping drivers up to date with changes in legislation which would particularly apply to operators who carry dangerous goods or are involved in security work, where very specific training is required on a regular basis.”
This long-awaited document from the European Commission follows an evaluation completed in 2014 which was broadly positive, highlighting safety improvements and labour mobility.
Whilst a number of shortcomings which were identified, are now being addressed, the FTA says it is vital that Driver CPC training remains flexible, so that operators can adapt to their own driver needs.
Attention should also be given to how training is delivered and increased flexibility provided, as a seven-hour block of learning may not be the best method for each individual.
The changes could be agreed by the European Commission before Brexit, so would continue to apply following the Great Repeal Bill until otherwise decided.
www.fta.co.uk
“Government funding to support the development, evaluation and piloting of an ultra-low carbon fuel would be valued,” says Paul Rose
A two-stage approach to reducing carbon emissions from oil-using households has been put forward by OFTEC in its response to the government’s ‘Heat in Buildings: The Future of Heat in Domestic Buildings’ consultation.
OFTEC’s submission focused on the urgent need to decarbonise heat for the 920,000 oil using households in England and Wales – but in a way that is practical and affordable for consumers.
OFTEC suggests this could be achieved by adopting a two-stage approach, looking at a boiler replacement programme in the short term and developing a very low/zero carbon liquid fuel alternative to kerosene as a realistic medium to long-term solution.
“Our independently verified data shows a boiler replacement programme would prove five times more effective in reducing carbon emissions from oil using households than the current domestic Renewable Heat Incentive (RHI).
“Government has already committed further funding to support the ill-fated RHI scheme but by doing so in preference to a boiler replacement scheme, is forfeiting the chance to reduce CO2 emissions by five times for every pound of expenditure.
“A simple boiler replacement programme would be more affordable, easier to comprehend, and simpler to implement for homeowners compared to renewable alternatives, resulting in much higher take up. Due to oil being significantly cheaper to run than renewable options, the approach has the added benefit of reducing household energy bills which will in turn help to lessen the country’s severe fuel poverty issue.
“Whilst a boiler replacement programme would provide an effective short-term carbon reduction solution, we believe the future lies in bringing to market a very low or zero carbon liquid fuel,” added Paul.
“Following advancements in biofuel and building on OFTEC’s successful development of a bio/kerosene blend of fuel in 2010, we are evaluating the suitability of low carbon liquid fuels currently employed in the transport and aviation sectors, for use as a heating fuel.
OFTEC’s submission also supported mandating heating controls along with simple steps such as system flushing and annual boiler servicing to ensure systems are working to maximum efficiency.www.oftec.co.uk
Using biomethane will deliver significant environmental and operational benefits to the business says Waitrose
Last week CNG Fuels, supplier of biomethane fuel, and Waitrose introduced Europe’s most advanced fleet of CNG powered trucks with a range of up to 500 miles. These vehicles use technology developed jointly by Scania and Agility Fuel Solutions which helps overcome concerns about the distance that CNG-powered lorries are able to cover before refuelling.
The 10 new Scania-manufactured CNG trucks entered operation for Waitrose last month. Making deliveries in the Midlands and the North, they are the first in Europe to use two 26-inch diameter carbon fibre fuel tanks which store gas at 250 bar of pressure to increase the range from around 300 miles to as much as 500 miles. This range will allow them to always run entirely on biomethane which is 35% to 40% cheaper than diesel and emits 70% less CO2.
Each truck costs 50% more than one which runs on diesel but the extra costs will be repaid in two to three years with fuel savings of £15,000-£20,000 a year depending on mileage. Operating for at least five years, savings of £75k-100k are expected compared with a diesel equivalent with each lorry also saving more than 100 tonnes of CO2 a year (versus diesel).
“This is a game changer for hauliers,” said Philip Fjeld, CEO of CNG Fuels.
“These high pressure carbon fibre tanks demolish the range anxiety concerns that have made many hauliers reluctant to move away from diesel to CNG.”www.cngfuels.com
Chris Hunt, director general of UKPIA
With the Government launching its green paper for a new Industrial Strategy for the UK last week, UKPIA was among the first to announce its intention to respond to the consultation from a downstream oil perspective.
Chris Hunt, director general of the UKPIA commented: “The UK Petroleum Industry Association welcomes the launch of a new industrial strategy for the UK and looks forward to responding to the consultation.”
“Designed correctly, a purposeful industrial strategy can help create an environment where industry can deliver and thrive. Above all, a long-term strategy should seek to address the competitiveness challenge affecting UK manufacturing and seek to establish regulatory stability and confidence for industry.”
“Our downstream oil sector in the UK plays a pivotal role in powering our nation’s mobility and fuelling our economic engine and national growth. We urge government to remain mindful of the essential processes and products provided by UKPIA members and similar key infrastructure providers that facilitate the solid industrial platform upon which the nation can build a bright post-Brexit future. To that end, we stand ready to engage in the development of a meaningful industrial and energy strategy for the future.”
Next month the Energy Institute (EI) will host International Petroleum (IP) Week 2017 in London. This year’s event will assess the future impact of the UK vote to leave the European Union, the ratification of the Paris Agreement on climate change and Donald Trump’s election to the US presidency, on the global oil and gas sector
Industry-specific issues such as oil prices remaining low and OPEC’s production cuts and changes within OPEC, Russia and the unconventionals in the supply equation will also be debated along with the further political and economic milestones that lie ahead.
“IP Week 2017 will address some critical issues and trends for our industry,” said Raphael Vermeir CBE FEI, chairman, IP Week Programme Board.
“In particular, we are keen to address the question: who and what really affects our industry? So we will not only hear from NOCs, IOCs, independents but also trading houses and financial experts, as well as regulators and government leaders.”
Over the three days of conferences, roundtables and social events, delegates will receive insights from distinguished figures inclduing OPEC’s secretary general, Mohammad Sanusi Barkindo and Dr Hoesung Lee, chair of the Intergovernmental Panel on Climate Change (IPCC) together with leaders from many major oil and gas operators such as Rosneft and the Emirates National Oil Company.
Patrick Pouyanné, the chairman and CEO of Total will address guests at the IP Week dinner on 23 February.
“This year will be of particular interest considering the significant events of the past few months,” said Louise Kingham OBE FEI, EI’s chief executive.
“We are entering a new era in international relations and trade, and IP Week 2017 will represent a particularly valuable opportunity to gauge the mood and expectations of the oil and gas industry in these challenging times.”
www.ipweek.co.uk
Following the release of the ‘Bonfield Report – Each Home Counts’ – an independent review of consumer advice, protection, standards and enforcement for domestic energy efficiency and renewable energy, OFTEC, met with the Department for Communities and Local Government on 20th January to discuss the findings.
Along with other competent person scheme providers, OFTEC heard an overview of the report from the ‘Each Home Counts’ team and the next steps required to implement the proposed new quality mark. According to the Business, Energy and Industrial Strategy (BEIS) Committee, this will begin late spring.
Commenting after the meeting, OFTEC registrations director Adrian Lightwood said: “OFTEC has always championed the importance of high industry standards alongside consumer confidence and so fully supports the aims of the ‘Each Homes Counts’ report. As one of the leading competent persons scheme providers in the country, OFTEC hopes to be involved in discussions about how best to introduce the new quality mark.
“We are pleased that our initial concerns over how the new mark would affect existing successful competent persons schemes have been somewhat allayed. The report clearly states that the recommendations are not intended to ‘reinvent existing organisations or duplicate the key roles they play’. Also that certification will continue in much the same way for installers as it does now, with the purpose of the new quality mark to ‘drive a higher minimum standard, where required, to protect consumers’.
“However, there are still many unanswered questions as to how the quality mark will work and what the new scheme will look like. Also, how the scheme will operate alongside established schemes such as MCS, ECO and PAS2030. As further information becomes available, which will hopefully be shaped by industry input, the picture should become clearer.
“For any new measures to work, buy-in from installers has to be secured. Therefore, it’s going to be important to maintain a balance between raising standards and placing further undue financial and bureaucratic pressure on heating businesses.”
http://bit.ly/2hFUEZ0
Team HOYER (l-r) Paul Noble, 28, operations manager (north), Mark Jepson, 44, SHEQ & compliance manager from Huddersfield, 42-year old fleet engineer Matthew Cox and 32-year old Duygu Bayrakci operations manager (south west and Midlands)
In March, a team of cyclists from HOYER Petrolog UK will embark on a 450km (280 mile) ride across South Africa to raise funds for Transaid.
The quartet, who are based across the UK, will tackle Transaid’s Cycle South Africa Challenge ride from Western Cape to Cape Agulhas, the southern-most tip of South Africa, from 10th-19th March.
Sports mad team member Paul Noble said: “I will get involved with any type of sport especially for a good cause.
“Through driver training Transaid aren’t just saving lives by improving road safety in less developed areas of the world, they’re also coming up with innovative ways to give people access to healthcare they’ve never had before.”
Not previously a cyclist, the team’s co-ordinator is operations manager Duygu Bayrakci.
“I’m doing my training at the weekends and have so far managed to cycle up to 30 miles in a day. There’s still room for improvement as we’ll be cycling an average of 50 – 60 miles a day for this challenge
In his words Mark Jepson is ‘an ageing sportsman with worn out knees’ who has been ‘training on a mountain bike since August’
“I am enjoying the different challenge which cycling presents and look forward to testing myself against the African terrain.”
The fourth member of the team is fleet engineer Matthew Cox who has worked for HOYER for three years supporting the Esso, Petrolog Fuels and Puma bitumen contracts.
Topping a target of raising £14,000 for Transaid during the ride, Team HOYER has so far raised more than £15,687.
If you would like to support the team please follow this link https://www.justgiving.com/fundraising/hoyercyclechallenge www.hoyer.uk.com
BP and Castrol – back in partnership with Renault Sport Racing
Last Thursday (26th January) BP and Renault Sport Racing announced a new partnership. BP joins the recently reformed Renault Sport Formula One Team in support of its ambition to fight for the World Championship in the next five years.
In March BP and Castrol will provide fuels and lubricants for the upcoming Formula 1 season which starts in Melbourne, Australia.
“Developing leading fuel and lubricant technologies is a key priority for BP,” commented Tufan Erginbilgic, chief executive of BP Downstream.
“This partnership creates exciting opportunities for the teams in Renault and BP to work together to further our cutting edge fuel and lubricant technologies in the highly competitive world of Formula 1.”
The last time the two companies worked together was during the 1997 season when Williams Renault won both the Formula 1 Constructors Championship and the Drivers Championship
“The return of BP and Castrol, brands with such strong heritage in motorsport, is very good news and opens new opportunities for our Formula 1 team,” said Jérôme Stoll, president of Renault Sport Racing.
“With the new aerodynamic regulations for the 2017 Formula One season, power sensitivity will increase,” said Cyril Abiteboul, managing director, Renault Sport Racing.
“Therefore fuels and lubricants will make an even greater difference to the overall performance of the car than they have since the new power unit regulations have been introduced in 2014.”www.bp.comwww.renaultsport.com