LyondellBasell’s Q2 net income drops 4.4% to $768m, sales down 15%

27 July 2012 12:47  [Source: ICIS news]

LONDON (ICIS)--LyondellBasell’s net income for the second quarter dropped 4.4% year on year to $768m (€622m), as sales fell, the company said on Friday.

Second-quarter net income includes a net negative effect of $191m related to debt repayment and inventory accounting charges.

Sales for the three months ended 30 June fell 15% year on year to $11.25bn, but were up 4.1% from the first quarter, the Netherlands-headquartered company said.

Second-quarter 2012 earnings before interest, tax, depreciation and amortisation (EBITDA) were $1.77bn, up 11% year on year and a 44% increase from the first quarter of 2012.

"During the second quarter, we continued to demonstrate the earnings power of our company as margins strengthened over the first quarter," said Jim Gallogly, LyondellBasell CEO.

"While global economic uncertainties dominate the headlines, our company's performance has remained strong. NGL supply and costs continue to drive favorable US olefin results particularly in the Midwest where ethane prices declined to below equivalent fuel values," he added.

Looking ahead, Gallogly said: “In North America, current ethane and propane raw material prices position our North American olefins business to remain advantaged relative to global ethylene producers. On the other hand, our European olefins and polyolefins business will be challenged, and thus we will continue efforts to improve our relative cost position.”

($1 = €0.81)

By: Franco Capaldo
+44 (0)20 8652 3214

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