LyondellBasell Industries NV said profit in its latest quarter
rose, despite a sharp decline in revenue driven by lower product
prices.
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, has benefited from
lower natural gas prices that have led to lower key raw material
costs—helping to offset diminished pricing power that has resulted
from cheaper oil.
On Tuesday, though, the company noted lower product prices that
pressured revenue. The price of ethylene during the quarter
decreased by approximately 13 cents per pound, LyondellBasell
said.
Chief Executive Bob Patel said abundant natural gas supply aided
margins. He added that planned and unplanned industry downtime
created favorable global conditions.
In all for the quarter, the company reported a profit of $1.33
billion, or $2.82 a share, up from year-earlier earnings of $1.18
billion, or $2.23 a share. Results include a $9 million pretax
credit stemming from an inventory adjustment, the company said.
Revenue plunged 25% to $9.15 billion.
Analysts, according to Thomson Reuters, expected earnings of
$2.70 a share and revenue of $9.12 billion.
Olefins and polyolefins in the Americas, the segment that
produces products such as ethylene and the represents the bulk of
the company's bottom line, reported operating income of $920
million, up 2.5% from the year-ago quarter. Sales in the segment
fell 23%.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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