12 January 2010 18:00 [Source: ICIS news]
HOUSTON (ICIS news)--Chemicals earnings for LyondellBasell fell 62% in November from October levels due to volatility in raw material costs as well as an expected seasonal demand drop, the producer said on Tuesday.
Speaking on a monthly conference call with analysts, chief executive Jim Gallogly said difficult pricing conditions for the European olefins market continued, while the ?xml:namespace>
Overall, chemicals earnings before interest, tax, depreciation and amortisation and restructuring costs (EBITDAR) were $41m (€28.3m), down from $108m in October.
“It’s disappointing but not unexpected,” chief financial officer Kent Potter said. “Sales volumes typically decline in winter months, and we have warned of the predictability of the industry and how raw material volatility could influence near-term results.
“Unfortunately, November was as such,” he added.
The company said those trends would likely continue into December, particularly since its planned turnaround at its
The Corpus Christi plant, which has 771,000 tonnes/year of ethylene capacity, according to global chemical market intelligence service ICIS pricing, is being transitioned to nearly all lighter feedstocks due to cost advantages of natural gas liquids (NGL) over other heavier feeds.
The turnaround was originally scheduled for early 2010.
Elsewhere, EBITDAR in polymers - the segment which has led the company for most of the year - also fell significantly in November, dropping to $58m from $110m in October.
That decline was largely due to lower prices, which led to margin contraction, Gallogly said.
However, volume drop was mostly confined to
Lyondell officials had previously expressed some concern on the impact that higher feedstock costs would have on Asian demand for US PE.
Meanwhile, Lyondell’s refining segment continues to lag, posting a net loss of $29m in November, down from a $6m profit in October.
An extended overhaul of a crude distillation unit at Lyondell’s 270,000 bbl/day
Overall, Lyondell’s year-to-date EBITDAR was $2.13bn through November, ahead of a projected $1.93bn and putting the company well in front of its budget plan, executives said.
The bankrupt producer remains a takeover target for Indian conglomerate Reliance Industries, according to reports.
($1 = €0.69)
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