By Austen Hufford 

LyondellBasell Industries NV on Tuesday reported a worse-than-expected 31% slide in revenue, as its product prices remain under pressure. Still, the company was able to notch better-than-expected profit growth.

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, but it also has been hurt by diminished pricing power from cheaper oil.

The volume of ethylene produced fell 4.2%, and the volume of propylene made grew 2.7%. The volume of polyethylene and polypropylene sold grew more than 9% each.

In recent quarters, however, lower product prices have pressured revenue. For the period ended Dec. 31 the price of ethylene fell 39% compared with the year prior.

Revenue fell 31% to $7.07 billion from the prior year, but cost of sales fell more, declining 36% and helping buoy profit. The company reported a bottom line of $795 million, or $1.78 a share, up from $791 million, or $1.54 a share, a year before. Excluding certain items, per-share earnings were $2.20 a share.

Analysts polled by Thomson Reuters had expected adjusted earnings of $2.14 a share and revenue of $7.60 billion.

Olefins and polyolefins in the Americas, the segment that produces products such as ethylene and represents a majority of the company's bottom line, reported a 27% fall in revenue. Its intermediates and derivatives segment reported a 28% decrease in revenue. Its refining unit reported a 55% fall in revenue.

Write to Austen Hufford at austen.hufford@wsj.com

 

(END) Dow Jones Newswires

February 02, 2016 10:36 ET (15:36 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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