LYONDELLBASELL
Q3 net income, core profit surge on strong margins at all units / Record margins for PP
 Plants in North America: the olefins and polyolefins business generates more than 58% of the group EBITDA (Photo: LyondellBasell) |
Third-quarter results of US polyolefin giant LyondellBasell (LYB, Houston, Texas; www.lyondellbasell.com) reflected robust demand and tight market conditions that supported strong margins across most of its businesses, offset partly by higher costs in the Olefins/Polyolefins (O&P) Europe-Asia-International (EAI) segment, and the Intermediates/Derivatives (I&D) business.
Adjusted to exclude impairments and inventory effects, net income soared to USD 1.76 bn (EUR 1.53 bn) from USD 427m in Q3 2020, while EBITDA rose three-fold at USD 2.69 bn. Sales were 87% higher at USD 12.7 bn. Compared to the highs in Q2 2021, earnings declined due to higher costs for natural gas, ethane, naphtha, and butane. However, this has not dampened how Lyondellbasell sees the future: it expects that the continuing vaccine roll-out will further re-open the economy, releasing pent-up consumer demand for automotive, construction and other durable goods.
At O&P Americas segment, year-on-year sales nearly tripled to USD 4.41 bn, while EBITDA was 288% better at USD 1.568 bn. The Olefins segment’s results rose around USD 570m driven by higher ethylene, propylene and other co-product pricing that outpaced increases in feedstock costs. Polyolefin results bounced by more than USD 525m on higher polyolefins spreads.
At O&P EAI, sales and EBITDA advanced 75% and 261%, respectively, to USD 3.458 bn and USD 473m. Olefins results jumped around USD 75m, thanks to higher ethylene and co-product prices, partially offset by higher feedstock costs. Polyolefins results increased about USD 225m on strong demand and tight markets, driving higher polyethylene and polypropylene price spreads over monomer.
Lower volumes due to downtime in its acetyls business and rising costs impacted the I&D Segment. Sales were up 88% at USD 2.89 bn, while EBITDA climbed 42% to USD 103m. Results were also affected by site closure costs associated with the exit of the ethanol business.
Advanced Polymer Solutions recorded the slowest growth in sales and EBITDA, advancing only 28% and 3%, respectively. Compounding & Solutions results fell around USD 25m amidst constrained production in automotive, appliance and other end markets as a result of semiconductor shortages. Advanced Polymers results increased about USD 10m on higher spreads over propylene in North America and higher volumes driven by increased construction demand.
Adjusted to exclude impairments and inventory effects, net income soared to USD 1.76 bn (EUR 1.53 bn) from USD 427m in Q3 2020, while EBITDA rose three-fold at USD 2.69 bn. Sales were 87% higher at USD 12.7 bn. Compared to the highs in Q2 2021, earnings declined due to higher costs for natural gas, ethane, naphtha, and butane. However, this has not dampened how Lyondellbasell sees the future: it expects that the continuing vaccine roll-out will further re-open the economy, releasing pent-up consumer demand for automotive, construction and other durable goods.
At O&P Americas segment, year-on-year sales nearly tripled to USD 4.41 bn, while EBITDA was 288% better at USD 1.568 bn. The Olefins segment’s results rose around USD 570m driven by higher ethylene, propylene and other co-product pricing that outpaced increases in feedstock costs. Polyolefin results bounced by more than USD 525m on higher polyolefins spreads.
At O&P EAI, sales and EBITDA advanced 75% and 261%, respectively, to USD 3.458 bn and USD 473m. Olefins results jumped around USD 75m, thanks to higher ethylene and co-product prices, partially offset by higher feedstock costs. Polyolefins results increased about USD 225m on strong demand and tight markets, driving higher polyethylene and polypropylene price spreads over monomer.
Lower volumes due to downtime in its acetyls business and rising costs impacted the I&D Segment. Sales were up 88% at USD 2.89 bn, while EBITDA climbed 42% to USD 103m. Results were also affected by site closure costs associated with the exit of the ethanol business.
Advanced Polymer Solutions recorded the slowest growth in sales and EBITDA, advancing only 28% and 3%, respectively. Compounding & Solutions results fell around USD 25m amidst constrained production in automotive, appliance and other end markets as a result of semiconductor shortages. Advanced Polymers results increased about USD 10m on higher spreads over propylene in North America and higher volumes driven by increased construction demand.
05.11.2021 Plasteurope.com [248929-0]
Published on 05.11.2021
German version of this article...