LyondellBasell marks a year since bankruptcy exit with profits rise

29 July 2011 13:23  [Source: ICIS news]

LONDON (ICIS)--Profits at Netherlands-headquartered polyolefins major LyondellBasell rose more than 20% in the second quarter of 2011 as the company marked its first year since emerging from US Chapter 11 bankruptcy protection.

LyondellBasell reported net income of $804m for the three months to the end of June 2011, up 21.3% from the $663m it made in the first quarter of the year.

Sales rose 14.6% to $14.04bn during the second quarter, from $12.25bn in the first three months of the year. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $1.55bn in the second quarter from $1.40bn in the first quarter.

“During the second quarter, we continued to demonstrate the earnings potential of our company as margins increased over already strong first-quarter levels,” said CEO Jim Gallogly. “Our EBITDA of more than $1.5bn brings our first half EBITDA to nearly $3bn.”

LyondellBasell’s US operations filed for Chapter 11 bankruptcy protection in January 2009 as it struggled to pay off its huge debt pile. It emerged from restructuring proceedings in April 2010. Because of the restructuring of the company, it prepared financial results for two separate entities in 2010, which reported income until the end of April and then from 1 May.

As a result, it will not be possible to compare the company’s progress over a 12 month period until it publishes its third quarter 2011 earnings. It reported net income of $342m in May-June 2010 and $474m in the third quarter of that year.

For more on LyondellBasell visit ICIS Company Intelligence

By: Peter Salisbury
+44 20 8652 3214

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