LyondellBasell earns 758 million dollars as sales fall from prior quarter
LyondellBasell returned to profit compared with the same quarter last year, but sales and adjusted earnings declined from the preceding quarter. Lower polymer prices weighed on operations. Operating cash flow reached 1.7 billion dollars, including cash released from working capital, while management set out different fourth-quarter operating rates by region.
Economics & Markets··Midday
Profit returns compared with last year
LyondellBasell, the chemicals and polymers producer, announced its third-quarter earnings. Quarterly earnings fell short of the estimate followed by Zacks.[1], [2]
Sales reached 8.499 billion dollars, compared with 9.177 billion dollars in the second quarter and 7.727 billion dollars a year earlier. Net income was 758 million dollars, against 559 million dollars in the preceding quarter. The company had lost 890 million dollars in the prior-year quarter. Earnings per share were 2.32 dollars, compared with 1.71 dollars in the second quarter and a loss of 2.77 dollars a year earlier.[1]
Adjusted earnings decline from the second quarter
Excluding identified items, net income was 828 million dollars and earnings per share were 2.54 dollars. Those measures were 1.401 billion dollars and 4.30 dollars in the second quarter, and 330 million dollars and 1.01 dollars a year earlier. Identified items reduced third-quarter earnings by 70 million dollars after tax, including the closure of a European propylene oxide joint venture.[1]
Management reported lower sequential polymer prices in the Americas. Lower polymer prices and volumes also affected European and other international operations. Oxyfuels performed more strongly within Intermediates and Derivatives. Earnings before interest, tax, depreciation and amortization totaled 1.420 billion dollars, or 1.512 billion dollars excluding identified items. The second-quarter totals were 1.252 billion dollars and 2.127 billion dollars respectively.[1]
Cash generation accompanies debt repayment
Operating cash flow reached 1.7 billion dollars, including cash released from working capital. Capital expenditure totaled 303 million dollars and dividends were 224 million dollars. LyondellBasell repaid 500 million euros of debt. Quarter-end cash stood at 3.2 billion dollars, while available liquidity was 7.7 billion dollars.[1]
The Channelview facility operated at 110 percent utilization and Bayport returned to full operation following its June restart. For the fourth quarter, management outlined operating rates of 85 percent in North America, 60 percent in Europe and 75 percent in Intermediates and Derivatives. Planned maintenance at North American polypropylene facilities was included in that outlook.[1]
