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LyondellBasell’s 2Q net income down 17.9% on lower sales, maintenance impact

HOUSTON, July 29, 2016 (PCW) -– LyondellBasell on Friday reported second-quarter net income of $1.091 billion, down about 17.9% from the $1.329 billion seen in 2Q 2015, largely due to lower sales earnings and impact from various maintenance activities.

Individual segment earnings are as follows:

Olefins and Polyolefins (Americas): 2Q earnings came in at $754 million, down $239 million from the year-ago quarter, due to lower ethylene margins. Polyethylene results declined due to maintenance while margins were relatively unchanged. Polypropylene benefitted from a spread improvement of about 10 cpp and volumes were lower in 2016 due to the first quarter Petroken sale.

Olefins and Polyolefins (Europe, Asia and International): 2Q earnings were at $576 million, up by $44 million from 2Q 2015. Olefin results declined by about $60 million due to a 2 cpp decrease in margin and reduced volumes from planned maintenance at Lyondell’s Berre, France facility. These were offset by combined polyolefin results that rose about $65 million as spreads for polyethylene improved by 1 cpp, while polypropylene spreads improved by 4 cpp.

Intermediates and derivatives: 2Q earnings was $397 million, a decrease of $114 million from 2Q 2015. Intermediate chemicals results declined by some $45 million due to reduced methanol margins and lower EO/EG results partially offset by higher styrene sales volumes.

Refining: 2Q earnings was in negative territory with a loss of $13 million, down $167 million from 2Q 2015. Throughput in the quarter was down by 72,000 b/d from the prior-year period due to the Houston refinery fire and subsequent downtime for repairs, as well as a weaker Maya 2-1-1 crack spread.

LyondellBasell, in providing guidance for the remainder of the year, said the company’s maintenance schedule will be “significant,” but did not provide specifics as to which plants and units would be affected. -- Samantha Hartke

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