LyondellBasell Sees 5.5% Drop in Third-Quarter 2015 Earnings on Low Prices

---

Researched by Industrial Info Resources (Sugar Land, Texas)--LyondellBasell Industries (NYSE:LYB) (Rotterdam, The Netherlands) reported third-quarter 2015 net income dropped 5.5% to $1.19 billion from $1.26 billion in the same quarter a year earlier, as low prices for crude oil and polyolefins continued to take their toll on the chemicals producer and refining company. Industrial Info is tracking 106 active LyondellBasell projects worth $3.33 billion.

This includes 92 projects worth $1.8 billion that are in the construction and engineering phases, and 14 projects worth more than $1.5 billion that are in the planning phases, where plenty of factors could still alter their timing or ultimate outcome.

LyondellBasell is evaluating potential locations on the U.S. Gulf Coast for a $1 billion propylene oxide/tertiary butyl alcohol unit addition. The unit would produce 900 million pounds per year of propylene oxide and 2 billion pounds per year of tertiary butyl alcohol. If given the green light, construction would kick off in first-quarter 2017, with completion in second-quarter 2020.

Third-quarter 2015 sales and other operating revenues totaled $8.33 billion, down nearly 31% from $12.07 billion a year earlier.

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures were $373 million in third-quarter 2015, the company reported.

"From an industry standpoint, the third quarter was a transitional period during which markets rebalanced following tight second-quarter supply, and the price of crude oil declined," said Chief Executive Officer Bob Patel. Third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) continued to be strong for some products, he said.

During the quarter, LyondellBasell sold 1.57 billion pounds of polyethylene, compared with 1.6 billion pounds in third-quarter 2014; sales of polypropylene totaled 662 million pounds in third-quarter 2015, compared with 681 million pounds a year earlier. Prices for both polyolefins were substantially down in the third quarter from the same quarter in 2014. Third-quarter 2015 EBITDA for the Olefins & Polyolefins--Americas segment was $841 million, down from $1.16 billion in third-quarter 2014.

Looking forward, Patel the fourth quarter so far "reflects a more balanced global ethylene industry. We entered the quarter with lower ethylene-polyethylene chain margins, following third-quarter rebalancing and oil price declines."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.