Reports related to this article:
Project(s): View 2 related projects in PECWeb
Plant(s): View 2 related plants in PECWeb
Released October 30, 2017 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Hurricane Harvey failed to change the timeline for LyondellBasell Industries NV's (NYSE:LYB) (Houston, Texas) Hyperzone polyethylene (PE) plant project in La Porte, Texas, which has a planned completion in late 2019, the company's top executive said on Friday. The petrochemicals and refining company reported favorable third-quarter earnings, despite a $200 million hit due to the storm's impact on its Gulf Coast facilities.
The company broke ground in May on the project at its La Porte complex. LyondellBasell Chief Executive Officer Bob Patel said during the company's earnings presentation that the construction is still in the early stages, and builders had just begun to pour the foundations. As such, Harvey will not impact the project timeline. The plant will have the capacity to produce 1.1 billion pounds per year of polyethylene. For more information, see Industrial Info's project report and May 18, 2017, article - In Bustling La Porte, Texas, LyondellBasell Breaks Ground on Polyethylene Plant.
Parts of the La Porte complex's existing operations have just recently recovered from Harvey, which hit the Texas Gulf Coast on August 25 and dumped more than 40 inches of rain in some areas. The complex's ethylene unit had resumed operations as of Friday, Patel said. He added the storm impacted all nine of the company's Gulf Coast assets, with the La Porte facility being the last one to recover.
Patel said lost sales volumes and related costs due to Hurricane Harvey impacted third-quarter results by about $200 million. The effects of Harvey will impact fourth-quarter results by an additional $100 million, he said. For related information, see September 1, 2017, article - After Harvey, Texas Refineries and Chemical Plants Cautiously Move to Reopen.
"Hurricane Harvey reduced inventories across the petrochemical industry and contributed to further delays in the startup of new U.S. ethylene and derivative capacity. As the industry works to rebuild inventories during the fourth quarter, we expect global markets will remain tight to balanced for the remainder of 2017 and the industry will be better positioned to absorb capacity additions during 2018," Patel said in a press release.
During the just-ended quarter, the company's Houston, Texas, refinery operated at an average of 240,000 barrels per day, 25,000 barrels per day less than the prior quarter due to reduced rates as a result of the storm.
LyondellBasell reported net income of nearly $1.05 billion for third-quarter 2017, an 11% increase from $953 million reported for third-quarter 2016. Sales and other operating revenues for the just-ended quarter amounted to nearly $8.52 billion, up nearly 16% from $7.37 billion from a year earlier.
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $318 million during third-quarter 2017. For all of 2017, capital expenditures will be $200 million less than the company's original estimate of $2 billion for the year, company executives said during the earnings conference call.
Patel noted that during the third quarter, LyondellBasell reached a final investment decision for a new propylene oxide (PO) and tertiary butyl alcohol (TBA) ether plant in Texas, and opened a new polypropylene compounds plant in China. The company said the Texas PO/TBA plant will be the world's largest plant of its kind, capable of producing 1 billion pounds per year of PO and 2.2 billion pounds of TBA, following its completion in mid-2021. For more information on the Texas plant, see Industrial Info's project report and see July 24, 2017, article - PO/TBA Project Rises on New Wave of U.S. Petchem Development
Looking forward, the company is eyeing potential construction of a large polypropylene facility at its Channelview Complex in Texas, Patel said, adding a final investment decision will be made by the end of 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The company broke ground in May on the project at its La Porte complex. LyondellBasell Chief Executive Officer Bob Patel said during the company's earnings presentation that the construction is still in the early stages, and builders had just begun to pour the foundations. As such, Harvey will not impact the project timeline. The plant will have the capacity to produce 1.1 billion pounds per year of polyethylene. For more information, see Industrial Info's project report and May 18, 2017, article - In Bustling La Porte, Texas, LyondellBasell Breaks Ground on Polyethylene Plant.
Parts of the La Porte complex's existing operations have just recently recovered from Harvey, which hit the Texas Gulf Coast on August 25 and dumped more than 40 inches of rain in some areas. The complex's ethylene unit had resumed operations as of Friday, Patel said. He added the storm impacted all nine of the company's Gulf Coast assets, with the La Porte facility being the last one to recover.
Patel said lost sales volumes and related costs due to Hurricane Harvey impacted third-quarter results by about $200 million. The effects of Harvey will impact fourth-quarter results by an additional $100 million, he said. For related information, see September 1, 2017, article - After Harvey, Texas Refineries and Chemical Plants Cautiously Move to Reopen.
"Hurricane Harvey reduced inventories across the petrochemical industry and contributed to further delays in the startup of new U.S. ethylene and derivative capacity. As the industry works to rebuild inventories during the fourth quarter, we expect global markets will remain tight to balanced for the remainder of 2017 and the industry will be better positioned to absorb capacity additions during 2018," Patel said in a press release.
During the just-ended quarter, the company's Houston, Texas, refinery operated at an average of 240,000 barrels per day, 25,000 barrels per day less than the prior quarter due to reduced rates as a result of the storm.
LyondellBasell reported net income of nearly $1.05 billion for third-quarter 2017, an 11% increase from $953 million reported for third-quarter 2016. Sales and other operating revenues for the just-ended quarter amounted to nearly $8.52 billion, up nearly 16% from $7.37 billion from a year earlier.
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $318 million during third-quarter 2017. For all of 2017, capital expenditures will be $200 million less than the company's original estimate of $2 billion for the year, company executives said during the earnings conference call.
Patel noted that during the third quarter, LyondellBasell reached a final investment decision for a new propylene oxide (PO) and tertiary butyl alcohol (TBA) ether plant in Texas, and opened a new polypropylene compounds plant in China. The company said the Texas PO/TBA plant will be the world's largest plant of its kind, capable of producing 1 billion pounds per year of PO and 2.2 billion pounds of TBA, following its completion in mid-2021. For more information on the Texas plant, see Industrial Info's project report and see July 24, 2017, article - PO/TBA Project Rises on New Wave of U.S. Petchem Development
Looking forward, the company is eyeing potential construction of a large polypropylene facility at its Channelview Complex in Texas, Patel said, adding a final investment decision will be made by the end of 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
