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LyondellBasell’s 4Q net income drops 4% on pension settlement, cross-currency swaps
HOUSTON, February 3, 2017 (PCW) – LyondellBasell on Friday reported that its fourth-quarter net income came in at $763 million, down about 4% from the $795 million in the yea-ago period.
The drop was attributed to a $58 million lump sum pension settlement and a $61 million in taxes related to cross-currency swaps, the company said.
The company noted that after a heavy turnaround year in 2016, it had no planned cracker turnarounds in 2017.
The company’s Americas olefins and polyolefins segment saw 4Q EBITDA fall $212 million to $563 million compared to 4Q 2015 due to the pension settlement and a 6 cpp decline in margins that was a result of lower ethylene prices and increased feedstock costs. Polyethylene price spreads over ethylene improved about 2 cpp, but was partially offset by a 2% volume decrease. Polypropylene volumes declined due to seasonal demand while price spreads over propylene improved about 4 cpp.
The intermediates and derivatives group saw 4Q EBITDA increase $94 million to $306 million, compared to the year-ago period. PO and derivatives and intermediate chemicals results increased by about $50 million due to improved methanol and ethylene glycol margins and reduced maintenance while PO and derivatives were relatively steady.
The refining segment saw 4Q EBITDA of $81 million, up from a 4Q 2015 net loss of $59 million, due to operational improvements and the consumption of low priced crude inventory from the prior year. The Houston refinery operated at 228,000 b/d, up 19,000 b/d from the prior quarter. -- Samantha Hartke