US PetroLogistics Q4 net income drops 17% amid PDH plant turnaround

05 February 2014 23:41 Source:ICIS News

HOUSTON (ICIS)--Q4 net income for PetroLogistics fell about 17% year over year as the company made and sold less propylene amid the completion of a turnaround of its propane dehydrogenation (PDH) plant in Texas, the US producer announced on Wednesday.

Net income dropped to $21.5m in the fourth quarter from $25.9m in the year-prior period.

Sales revenues increased almost 19% year over year to $191m from $161m in Q4 2012. A larger propane-to-propylene spread fuelled the rise in revenues, with the spread at 34.0 cents/lb in Q4 2013 compared with 30.9 cents/lb in the year-prior period.

However, cost of sales also increased in Q4 2013, up to $158m from $121m the year before.

PetroLogistics made 200m lbs (91,000 tonnes) of propylene in Q4 2013, down about 32% from about 295m lbs in Q4 2012.

The company sold about 294m lbs of the olefin in Q4 2013, a drop of about 6% from 313m lbs in the year-prior period.

 "The partnership successfully completed its first planned triennial turnaround during the fourth quarter," said David Lumpkins, executive chairman of PetroLogistics. "The turnaround went extremely well, and our reserves were adequate to fund the entire cost of the turnaround as well as maintain distributions during the downtime. In addition, since restart we have seen improved plant performance and look forward to continued improvements in reliability.”

"Since June 2013, excluding the planned turnaround, we have achieved an on-stream rate of over 97%,” said Nathan Ticatch, president and CEO. “Further, during January 2014, we produced 123.2m lbs of propylene, a monthly production record.”

Ticatch added that the PDH plant will be replacing two heat exchangers. The repairs will require about a seven-day outage, which likely will occur in April, he said.

By Jeremy Pafford