03 May 2007 16:48 [Source: ICIS news]
TORONTO (ICIS news)--Lyondell's results will be driven more by its refining business in the coming years, sheltering the company from the expected cyclical petrochemicals trough, JPMorgan said on Thursday.
“We forecast refinery operating performance to remain above historical averages, and this should allow Lyondell to generate a consistently high level of free cashflow despite the cyclical downturn in petrochemicals we expect in 2009-2010,” JPMorgan said in a research note to clients.
Lyondell’s Houston-based refinery operations could generate earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.1bn (€814m) in both 2007 and 2008, according to JPMorgan’s analysis.
This compares with $869m in 2006 and four-year annual average EBITDA of $255m for 2002-2005, the analysts said.
Lyondell has become fundamentally more valuable and less cyclical following its $2.1bn purchase last year of the interest held by Venezuela’s state oil and gas firm PDVSA in the two companies’ joint venture refinery in Houston, JPMorgan added.
($1 = €0.74)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections