LyondellBasell Results Hurt by Operating Disruptions

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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