Basell posts 31% gain in Q2 EBITDA

28 August 2007 15:33  [Source: ICIS news]

LONDON (ICIS news)--Basell reported a 31% gain in second quarter profits to €371m ($506m), driven by good market conditions in polyolefins, stabilisation of cracker margins in Europe and a more favourable North American market.

 

Basell’s revenue increased by 14% to €3.04bn, the company added in its second quarter results presentation.

 

Polyolefins, the company’s largest business segment, reported a 40% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to €245m.

 

Basell said European polyolefins market conditions continued to be strong with good demand and very tight supply, while cracker margins stabilised with naphtha pricing levelling off.

 

Polyolefins North America increased its EBITDA on the same period last year despite slowing domestic growth in the continent.

 

The Advanced Polyolefins segment reported a 16% rise in EBITDA to €52m, helped by an 8% increase in sales volumes.

 

The Technology Business booked an EBITDA of €81m, 17% higher than the same period last year.

 

The segment concluded three license agreements in the second quarter for a total of 1m tonnes/year, while the catalyst division equalled the year-earlier period’s sales volumes.

 

“The 2007 outlook remains optimistic but highly dependent on economic growth in Basell’s key markets and underlying feedstock price development,” said the company in a statement. “Third quarter polymer demand is expected to remain strong.”

 

CEO Volker Trautz added that Basell expected a “reasonable if not a very good 2008 if the world economy continues to be strong.”

 

Basell's second quarter was dominated by its agreement to acquire US petrochemicals major Lyondell for $19bn.

 

($1 = €0.73)

By: Mark Watts
+44 20 8652 3214

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