LyondellBasell Reports Worse-than-Expected Revenue Drop--Update
February 02 2016 - 10:51AM
Dow Jones News
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)
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