LyondellBasell Q4 net profits at $623m as NGLs advantage flows
ICIS News : 1-Feb-13 14:30
LONDON (ICIS)--LyondellBasell's fourth-quarter 2012 net profits swung to $623m (€461m) from a reported loss of $218m in the same period of 2011, the Netherlands-registered company said on Friday.
Sales for the period were up 1.1% at $11.10bn while the quarter's profits gains were driven by strong North America olefins margins.
Fourth quarter 2012 earnings before interest, tax, depreciation and amortisation (EBITDA) were up 68.3% at $1.29bn.
LyondellBasell said that about 85% of its ethylene production in North America in the quarter was sourced from natural gas liquids (NGLs).
Fourth quarter 2012 net profits from continuing operations were $645m against $27m in the 2011 fourth quarter.
"Our fourth quarter results were in line with seasonal trends and our expectations, contributing to a record year for LyondellBasell,” CEO Jim Gallogly, said.
Fourth-quarter 2012 net profits from continuing operations compared with net profits at this level of $851m in the 2012 third quarter.
LyondellBasell’s Olefins and Polyolefins – Americas (O&P – Americas) segment EBITDA in the fourth quarter were $769m from $407m in the October to December quarter in 2011.
Olefins and Polyolefins – Europe, Asia, International (O&P – EIA) EBITDA were $50m from $45m in the fourth quarter of 2011.
"We have seen a good start in 2013,” Gallogly said. “Our assets have run well through the early weeks of the new year. Overall, the fundamentals that supported our success during 2012 have continued.”
"Olefins in North America continue to benefit from strong margins created by low priced natural gas liquid raw materials. However, outside of North America, the global olefins industry continues to experience low operating rates and profitability, negatively impacting our European olefins and commodity polyolefin businesses," he said.
LyondellBasell reported a full year 2012 net income of $2.83bn from $2.14bn in 2011. Full year sales were $45.35bn from $48.18bn.
($1 = €0.74)
By Nigel Davis
+44 20 8652 3214