Chemicals and Products
Chemicals and Products includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products. These are moved and marketed around the world for domestic, industrial and transport use. The business also includes pipelines, trading of crude oil, oil products and petrochemicals, and oil sands activities, which involves the extraction of bitumen from mined oil sands and its conversion into synthetic oil.
($ billion) 4.5 2021: 0.4
($ billion) 4.7 2021: 2.1
($ billion) 12.9 2021: 3.7
(thousand b/d) 1,402 2021: 1,639
(thousand b/d) 1,700 2021: 2,026
(thousand tonnes) 12,281 2021: 14,216
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|
$ million, except where indicated |
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|---|---|---|---|---|---|---|---|---|---|
|
2022 |
2021 |
2020 |
||||||
Segment earnings/(loss) [B] |
4,515 |
404 |
(3,821) |
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Including: |
|
|
|
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Revenue (including inter-segment sales) |
147,026 |
118,338 |
85,713 |
||||||
Share of profit of joint ventures and associates |
374 |
989 |
1,064 |
||||||
Interest and other income |
244 |
37 |
(236) |
||||||
Operating expenses [C] |
11,361 |
10,347 |
10,514 |
||||||
Underlying operating expenses [C] |
11,368 |
10,298 |
9,916 |
||||||
Depreciation, depletion and amortisation |
3,289 |
5,485 |
10,096 |
||||||
Taxation charge/(credit) |
935 |
(210) |
(1,754) |
||||||
Identified Items [C] |
(204) |
(1,712) |
(6,656) |
||||||
Adjusted Earnings [C] |
4,719 |
2,115 |
2,835 |
||||||
Adjusted EBITDA [C] |
8,561 |
5,635 |
6,032 |
||||||
Capital expenditure |
3,835 |
5,091 |
4,163 |
||||||
Cash capital expenditure [C] |
3,838 |
5,175 |
4,198 |
||||||
Chemicals manufacturing plant utilisation (%) |
79% |
85% |
88% |
||||||
Refinery utilisation (%) |
86% |
80% |
83% |
||||||
Refinery processing intake (thousand b/d) |
1,402 |
1,639 |
2,063 |
||||||
Refining & Trading sales volumes (thousand b/d) |
1,700 |
2,026 |
2,434 |
||||||
Chemicals sales volumes (thousands tonnes) |
12,281 |
14,216 |
15,036 |
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|
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Business conditions
For the business conditions relevant to Chemicals and Products, see “Market overview”.
Chemical manufacturing plant utilisation
Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity. Chemicals manufacturing plant utilisation was 79% in 2022 (previous methodology: 72%) compared with 85% in 2021 (previous methodology: 78%). The decrease was mainly a result of optimisation for the low-margin environment and higher turnarounds during 2022.
Refinery utilisation
Utilisation is defined as the actual usage of the plants as a percentage of the rated capacity. Refinery utilisation was 86% in 2022 (previous methodology: 74%) compared with 80% in 2021 (previous methodology: 72%) as a result of less unplanned maintenance and lower turnarounds.
With effect from the second quarter 2022, the methodology applied in calculating both Chemicals plant utilisation and Refinery utilisation has been revised to further align with industry disclosures. The revisions include moving from stream days capacity (defined as the maximum throughput, excluding the impact of maintenance or operational outages) to calendar days capacity (defined as the throughput including typical limitations such as maintenance over an extended period of time). Furthermore, Refinery utilisation is now specific to the capacity of the crude distillation unit (except for Scotford Refinery which uses the capacity of the hydrocracker), and no longer the capacity across all refinery units.
Chemicals and Products sales
In 2022, Chemicals sales volumes were 12,281 thousand tonnes, 14% lower than 2021 sales volumes of 14,216 thousand tonnes, due to lower demand.
In 2022, Refining & Trading sales volumes were 1,700 thousand b/d, 16% lower than 2021 volumes of 2,026 thousand b/d due to impact of divestments
