LYONDELLBASELL
Q1 core profit jumps 18% led by Intermediates and Derivatives business / Strong polyolefins pricing in Q2
First quarter net income at LyondellBasell (LBI, Houston, Texas / USA; www.lyondellbasell.com) soared 54% to USD 1.2 bn (EUR 997m) and EBITDA rose 18% to USD 1.9 bn amidst a tight polyolefins market that enabled the chemicals group to fetch higher margins for several of its products. Sales and other operating revenues rose 15% to USD 9.8 bn.
"We started 2018 with strong operations," said CEO Bob Patel. Intermediates and Derivatives, which produces propylene oxide and its derivatives and intermediate chemicals, such as styrene monomer and acetyls, achieved record quarterly EBITDA.
Commenting on the second quarter, the company said it is beginning to see the typical seasonal margin improvements in oxyfuels and refining, and expects to reap the benefits of continued high operating rates. Patel said over the past two months, an imbalance between ethylene production and consumption exists in the US market, but this should improve as the downstream derivative units attain full operating rates. Robust global demand and higher oil prices continue to support strong polyolefins pricing.
EBITDA at the Olefins & Polyolefins – Americas segment expanded 8% to USD 780m. Olefins results fell by around USD 70m due to lower volumes. Combined polyolefins results increased by around USD 155m driven by PE and PP spread improvements.
EBITDA at Intermediates & Derivatives gained USD 147m or 40% at USD 486m. Propylene oxide and derivatives results increased around USD 55m due to higher margins. In intermediate chemicals, an improvement of around USD 15m was driven by increased margins partially offset by reduced methanol volumes. Oxyfuels and related products improved by approximately USD 40m primarily due to higher oxyfuels margins.
The Refining segment's EBITDA swung to an income of USD 63m from a loss of USD 30m. Yields and volumes improved with the absence of maintenance downtime that occurred on the fluid catalytic cracker and crude units during the first quarter of 2017.
EBITDA fell at two other segments, Olefins & Polyolefins – Europe, Asia, International, as well as in Technology The former dropped by 2% to USD 518m and the latter by 7% to USD 56m.
"We started 2018 with strong operations," said CEO Bob Patel. Intermediates and Derivatives, which produces propylene oxide and its derivatives and intermediate chemicals, such as styrene monomer and acetyls, achieved record quarterly EBITDA.
Commenting on the second quarter, the company said it is beginning to see the typical seasonal margin improvements in oxyfuels and refining, and expects to reap the benefits of continued high operating rates. Patel said over the past two months, an imbalance between ethylene production and consumption exists in the US market, but this should improve as the downstream derivative units attain full operating rates. Robust global demand and higher oil prices continue to support strong polyolefins pricing.
EBITDA at the Olefins & Polyolefins – Americas segment expanded 8% to USD 780m. Olefins results fell by around USD 70m due to lower volumes. Combined polyolefins results increased by around USD 155m driven by PE and PP spread improvements.
EBITDA at Intermediates & Derivatives gained USD 147m or 40% at USD 486m. Propylene oxide and derivatives results increased around USD 55m due to higher margins. In intermediate chemicals, an improvement of around USD 15m was driven by increased margins partially offset by reduced methanol volumes. Oxyfuels and related products improved by approximately USD 40m primarily due to higher oxyfuels margins.
The Refining segment's EBITDA swung to an income of USD 63m from a loss of USD 30m. Yields and volumes improved with the absence of maintenance downtime that occurred on the fluid catalytic cracker and crude units during the first quarter of 2017.
EBITDA fell at two other segments, Olefins & Polyolefins – Europe, Asia, International, as well as in Technology The former dropped by 2% to USD 518m and the latter by 7% to USD 56m.
03.05.2018 Plasteurope.com [239650-0]
Published on 03.05.2018