LyondellBasell Q2 Results Top Estimates

(RTTNews) - Dutch chemicals and polymers maker LyondellBasell Industries N.V. (LYB) reported Friday a profit for the second quarter that increased from last year, reflecting solid results in all segments primarily olefins & polyolefins - Americas. Both income per share from continuing operations and quarterly revenues topped analysts' expectations.

"We had record earnings this quarter of $2.22 per share, while our EBITDA approached $2 billion. Importantly, every segment contributed to this achievement. Of particular note was the strength in our Olefins and Polyolefins- Americas segment which generated nearly $1 billion of EBITDA even while we were performing significant scheduled maintenance at our La Porte ethylene site," CEO Jim Gallogly said in a statement.

The Rotterdam, the Netherlands-based company, which emerged from bankruptcy in 2010, reported net income of $1.18 billion or $2.23 per share for the second quarter, higher than $929 million or $1.61 per share in the prior-year quarter.

Income from continuing operations for the quarter grew to $1.17 billion or $2.22 per share, compared to $923 million or $1.60 per share in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.92 per share for the quarter. Analysts' estimates typically exclude special items.

Sales and other operating revenues for the quarter increased to $12.12 billion from $11.10 billion in the same quarter last year, and topped fifteen Wall Street analysts' consensus estimate of $11.17 billion.

Sales and other operating revenues at olefins & polyolefins - Americas grew to $3.46 billion from $3.25 billion, and it increased at olefins & polyolefins - Europe, Asia, International to $4.07 billion from $3.71 billion last year.

Intermediates & derivatives sales and other operating revenues improved to $2.72 billion from $2.22 billion, and grew to $3.25 billion from $3.08 billion at refining.

Interest expense for the quarter was $89 million, compared to $65 million in the year-ago quarter.

The company said it expects to begin production from the 800 million pound per year La Porte ethylene expansion during the third quarter. This is the first of three ethylene expansions and continues to put the company well ahead of new greenfield plants pursued by others in the industry.

"During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment. U.S. oil, natural gas, and natural gas liquids production remain strong. Together these support margins in our Olefins and Polyolefins - Americas, Intermediates and Derivatives, and Refining segments. However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant," Gallogly added.

LYB closed Thursday's regular trading session at $102.42, down $0.69 on a volume of 2.89 million shares.