06 February 2013 22:15 [Source: ICIS news]
HOUSTON (ICIS)--US-based on-purpose propylene producer PetroLogistics reported on Wednesday a Q4 net income of $25.9m (€19.2m), compared with a net loss of $27.0m from the fourth quarter of 2011, as sales grew faster than costs.
Q4 sales were $166.1m, up 14.6% from $144.9m from the same time in 2011, the company said. Cost of sales were $120.5m, down 17.6% from $146.3m from the same time in 2011.
PetroLogistics also had a much smaller equity-based compensation expense in the fourth quarter of 2012, the company said.
During the fourth quarter, PetroLogistics produced nearly 295m lb (134,000 tonnes) of propylene, up from 225m lb from the same time in 2011, the company said. It sold nearly 313m lb of propylene, up from 250m lb from the same time in 2011.
The Q4 propane-to-propylene spread was 30.9 cents/lb ($681/tonne), up from 15.1 cent/lb for the fourth quarter of 2011, PetroLogistics said.
The trend of rising propane-to-propylene spreads continued into January, with the spread reaching 49 cents/lb, according to a statement by Nathan Ticatch, PetroLogistics CEO.
“Although the propylene market environment was generally challenging for most of the second half of last year, propylene prices increased each month of the fourth quarter as supply/demand balances continued to rationalise,” according to a statement by David Lumpkins, PetroLogistics' executive chairman. “With inventory levels now well within historical norms, conditions are in place for a much improved market environment as we enter the new year.”
PetroLogistics operates the sole US propane dehydrogenation (PDH) plant in Houston, Texas. The plant has a capacity of 544,000 tonnes/year.
($1 = €0.74)
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