LyondellBasell Results Hurt by Operating Disruptions
November 01 2016 - 9:48AM
Dow Jones News
By Austen Hufford
LyondellBasell Industries NV on Tuesday said results in its
recently completed quarter were hurt by operating disruptions and a
heavy planned maintenance schedule.
The Dutch chemicals-and-polymer producer, which emerged from
chapter 11 bankruptcy in 2010, provides compounds found in products
ranging from electronics to construction materials and biofuels.
Lyondell, with its U.S. headquarters in Houston, said its North
American olefins and polyolefins business results were hurt by a
heavy planned maintenance schedule and experienced continued strong
demand. The company said operating disruptions impacted its
refining business.
Chief Executive Bob Patel said during October that global olefin
and polyolefin conditions have remained favorable but that the
company anticipates typical seasonal slowing in select business
lines for the coming winter months. The current fourth quarter
marks the end of the large amount of planned maintenance and
downtime and so 2017 should benefit from the system upgrades,
expansions and reliability improvements, he said.
In recent quarters, LyondellBasell has benefited from lower
natural-gas prices that have led to lower raw-material costs, but
it also has been hurt by diminished pricing power from cheaper oil.
The West Texas Intermediate crude oil price fell 0.9% in the
quarter as the price of U.S. ethylene increased 8.9% compared with
the year prior.
The volume of ethylene produced in the Americas fell 23%, while
the volume of propylene made declined 18%.
In all, the company reported earnings of $952 million, or $2.30
a share, down from $1.19 billion, or $2.54 a share, a year prior.
Excluding certain items, per-share earnings were $2.31 a share.
Revenue fell 12% to $7.37 billion from the prior year.
Analysts polled by Thomson Reuters had expected adjusted
earnings of $2.32 a share on revenue of $7.38 billion.
Olefins and polyolefins, the segment that produces products such
as ethylene and represents a majority of the company's top line,
reported an 6.9% fall in revenue in the Americas and a 10% decline
in revenue in the rest of the world. Its intermediates and
derivatives segment reported a 11% decrease in revenue. Its
refining unit reported a 21% fall in revenue.
Shares of LyondellBasell rose 0.7% to $80.13 in morning trading
in New York.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 01, 2016 10:33 ET (14:33 GMT)
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