07 May 2010 19:18 [Source: ICIS news]
HOUSTON (ICIS news)--Second-half results for LyondellBasell will likely decline from first-half levels as once-surging olefins prices put early profitability at unsustainable levels, the company said on Friday.
Lyondell’s earnings before interest, tax, depreciation and amortisation and restructuring costs (EBITDAR) in the first quarter ended 31 March were $640m (€506m), putting it on a pace ahead of overall 2009 earnings of $2.26bn.
Of that $640m, $274m came from the Americas olefins and polyolefins chain – even as the polyethylene (PE) segment posted a loss from the margin squeeze brought on by rising ethylene costs, CEO Jim Gallogly said.
“We got a bump ending the first quarter and into the early second quarter with olefins prices blowing up because of operating issues,” Gallogly said. “That’s been a pleasant surprise.”
Also, new capacity in Asia and the ?xml:namespace>
As such, the second half of the year will likely be weaker, particularly in the olefins and polyolefins chain. However, that could be countered by a
In PE, the company beat expectations, the result of a successful
“As monomer prices moderate, there is usually some shifting of margins from olefins to polyolefins,” Gallogly said.
The company also cited increased
Outside of the
Of the $152m earned in Europe and
In refining, the company posted a $4m profit for the first-quarter as a whole, behind improved performance at its
LyondellBasell, which last Friday emerged from nearly 16 months under US bankruptcy protection, said it had been given a second life through the support of the financial community and would execute a more specific and targeted plan than it did after the merger.
Also, Lyondell exited bankruptcy as an economic upswing appeared to be at its beginning, rather than at a near peak, as when the Lyondell and Basell merger closed, it said.
Lyondell said it hoped to be listed on the New York Stock Exchange (NYSE) by the third quarter and that administrative costs should be lower in coming quarters as a result of exiting bankruptcy.
($1 = €0.79)
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