LyondellBasell reports $854-mn Q3 earnings
29 Oct 2013
LyondellBasell Industries today announced earnings from continuing operations of $854 million, or $1.51 diluted earnings per share, for the third quarter of 2013 on the back of continued cash flow, supported by reliable operations and favorable crude oil and natural gas environment.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for third quarter 2013 stood at $1.53 billion, the company said in a release.
LyondellBasell said it invested $423 million in growth projects, maintenance turnarounds, catalyst and information technology-related expenditures in the third quarter 2013.
It had a cash balance of $4.4 billion as of 30 September 2013.
The company repurchased 13.5 million ordinary shares during the third quarter 2013 and declared dividend totalling $280 million during the quarter.
In July, the company issued long-term bonds for an aggregate amount of $1.5 billion with an average interest rate of 4.6 per cent.
"We achieved solid third quarter results, with earnings of $1.51 per share and EBITDA of $1.53 billion," said CEO Jim Gallogly. "This performance is sequentially down from the prior quarter due to scheduled maintenance at a US olefins and polyolefins site and fewer market-related opportunities in our European olefins and polyolefins business. Refining results again proved difficult, pressured by an oversupplied gasoline market, spending for RIN's and plant maintenance."
During the quarter, the company advanced its share buy-back programme and declared dividends totaling $1.3 billion.
Since the authorisation of the share repurchase programme in May 2013 and through the close of the third quarter, Gallogly said, the company bought back approximately three per cent of its outstanding shares.
"Overall, we continued a pattern of steady results seen in recent quarters. Underlying this performance were safe, reliable operations coupled with the North American natural gas advantage. We are taking steps to further capitalize on this advantage, Gallogly said, adding, ''We are making significant progress on our expansion projects, which will come online over the next two years."
Lyondell Basell expects to restart the methanol project by the fourth-quarter, followed by its La Porte ethylene debottleneck expansion by the middle of next year.
"The fundamentals that have supported our results remained intact during October. However, we have historically seen margin compression in products such as oxyfuels in winter months and slower polyolefin sales around the holiday season," Gallogly said.
LyondellBasell operates in five business segments including olefins and polyolefins (Americas, Europe, Asia), intermediates and derivatives, refining and technology (international).
