US TPC Group posts 138% increase in Q2 net income

10 August 2011 23:46  [Source: ICIS news]

HOUSTON (ICIS)--TPC Group’s net income for the second quarter grew by 138% year on year because of higher selling prices, increased sales to the fuels market and strong polyethylene demand, the US-based petrochemicals producer said on Wednesday.

TPC Group had a net income of $34.3m (€24.0m) in the second quarter, up from $14.4m in the same quarter last year.

Revenues also increased significantly for the company at $729.9m in the second quarter, compared with $531.8m in the second quarter of 2010.

The crude C4 processing segment produced revenues for the second quarter totalling $234.6m, a 55% year-on-year increase.

It was driven by higher prices because of “structurally tight product markets caused by the shift from heavier to lighter cracker” feedstocks, the company said.

“TPC Group is well positioned to continue to benefit from favourable market trends, structural tightness in many of our products and economic growth,” said chief executive Mike McDonnell.

“While we expect the typical seasonal pattern of easing prices and margins later this year, we continue to see strong, stable demand in our core markets, including synthetic rubber, nylon, polyethylene and fuel and lube additives,” he added.

($1 = €0.70)

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