26 July 2013 12:24 [Source: ICIS news]
LONDON (ICIS)--LyondellBasell’s net income for the second quarter of 2013 increased by 21% year on year to $927m (€695m), as olefins and polyolefins (O&P) earnings continued to improve, the Netherlands-registered company said on Friday.
Operating income and earnings before interest, taxes, depreciation and amortisation (EBITDA) increased year on year for the company’s O&P divisions for the Americas and Europe, Asia and international (EAI) during the quarter driven on the back of higher margins, the company said.
Total group sales fell slightly year on year from $11.2bn to $11.1bn, while group EBITDA fell by 5% to $1.65bn.
"The back-to-basics strategy that we put in place three years ago continues to yield strong results and returns for our shareholders. This was particularly evident in both our US and European olefins businesses," said LyondellBasell CEO Jim Gallogly.
"In both regions, our plants ran well above average industry operating rates while also utilising additional advantaged natural gas liquid feedstocks," he added.
Despite a strong first half of the year, the company cautioned that challenges still exist within the refining industry.
"Refining has been a challenging industry and continues to evolve. We believe that these market conditions coupled with an imbalance within renewable fuel requirements will continue to pressure our near term results," Gallogly said.
Strong American O&P results were also the key driver of income growth in the previous quarter.
($1 = €0.75)
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