LyondellBasell Industries announced earnings for the third quarter 2012 of $851 million, or $1.47 per share. Third-quarter 2012 EBITDA was $1,565 million, inclusive of a $71 million reversal of non-cash, lower of cost or market inventory valuation adjustment recognized in the second quarter 2012.
Net income in the third quarter 2012 increased from the second quarter 2012 as a result of lower interest and financing charges. Third quarter 2012 EBITDA was lower than the second quarter 2012, primarily due to lower margins in European olefins. Second quarter 2012 results included $100 million from a hurricane insurance settlement.
"LyondellBasell continues to perform strongly in a volatile economic environment. We are pleased with the third quarter and year-to-date results as the company advances its strategy. Although the outlook for the global economy is uncertain, we remain focused on safe and reliable operations, continuously improving our cost structure and disciplined growth.
“Our robust cash generation has allowed us to further reward shareholders through our regular interim dividend of $0.40 per share plus a special dividend of $2.75 per share.
“The company's dramatic financial improvement over the last couple of years and our significant position within the chemical industry were acknowledged by our recent inclusion in the S&P 500 index," said Jim Gallogly, LyondellBasell Chief Executive Officer.
"During the third quarter, our segments generally performed well, and results were consistent with their specific business environments and geographic exposures. Our olefins and polyolefins business in North America continues to provide excellent results.
“In addition to stable NGL price trends throughout the third quarter, our olefins plants utilization exceeded 100 percent of nameplate capacity. The olefins and polyolefins segment results for Europe, Asia and International (EAI) reflected weak European economic conditions; however, polyolefin sales volumes improved versus the second quarter.
“Our Intermediates and Derivatives business continues to demonstrate steady performance with exceptional third-quarter oxyfuels results. Refining margins improved in line with the change in industry spreads, but operating limitations at the Houston refinery during the quarter impacted crude processing rates," Gallogly said.
"Our previously-announced growth projects remain on schedule. We have initiated a review of additional olefins debottleneck projects targeted to capitalize on the advantage of favorable North American NGL prices," Gallogly indicated.
