27 July 2012 22:09 [Source: ICIS news]
HOUSTON (ICIS)--US-based on-purpose propylene producer PetroLogistics reported on Thursday a second-quarter gross profit of $72.5m (€59.5m) up 5% versus $68.8m from the same time last year, as lower costs and higher production offset a drop in revenue.
Second-quarter sales were $193.8m, down 1% from $196.4m from the same time last year, PetroLostics said.
Cost of sales were $121.3m, down nearly 5% from $127.6m from the same time last year.
Propane made up 76% of PetroLogistics's total production costs for the second quarter, the company said.
Propane had approached three-year lows during the quarter.
During the quarter, PetroLogistics produced 324m lb (147,000 tonnes) of propylene, compared with 221m lb produced for the same time last year.
The propane-to-propylene spread was 37.9 cents/lb ($836/tonne), down from 46.2 cents/lb for the same time last year, PetroLogistics said.
Despite the increase in gross profit, PetroLogistics reported a net loss of $37.8m, compared with a net income of $47.6m for the second quarter of 2011.
Much of the loss was caused by $57.8m in realised and unrealised losses from derivatives, PetroLogistics said. The company had no such losses in the second quarter in 2011.
After factoring out those and other losses, PetroLogistics reported a second-quarter adjusted net income of $64.4m, up from $61.0m for the same time last year.
PetroLogistics owns a propane dehydrogenation (PDH) unit in Houston, which has a propylene capacity of 544,000 tonnes/year.
($1 = €0.82)
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