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LyondellBasell income down 11.5% on weaker ethylene, refining margins
HOUSTON, April 22, 2016 (PCW) -– LyondellBasell on Friday reported first-quarter net income of $1.03 billion, down 11.5% from the $1.164 billion reported the same time a year ago.
The decline was due to weaker results from its Americas olefins and polyolefins and refining segments.
The Americas olefins and polyolefins group reported EBITDA of $878 million in 1Q, down from $1.031 billion during the year-ago period. Lyondell attributed the decline to tighter ethylene margins, which were down by about 14 cpp, and additional costs to build up inventory ahead of its ongoing planned maintenance and expansion of its Corpus Christi cracker.
Its international olefins and polyolefins group saw EBITDA increase to $509 million in 1Q compared to $357 million in 1Q 2015. The $21 million sale of its Petroken subsidiary and an 8 cpp increase in international ethylene margins help perk up this group’s results. Additionally, polyethylene spreads increased about 8 cpp and polypropylene spreads were up about 7 cpp.
The intermediates and derivatives segment’s EBITDA was at $326 million, down slightly from $337 million seen a year ago. Increased demand for products in the sector was more than offset by a 30 cpg drop in methanol margins, the company said.
Finally, the refining group’s EBITDA saw its 1Q EBITDA plummet to $14 million from $149 million in 1Q 2015. This was due to a lower throughput of 55,000 b/d because of planned maintenance and a tightening of the Maya 2-1-1 crack spread by $5.88/bbl. –- Samantha Hartke