NYSE-listed LyondellBasell Industries said it posted second consecutive quarter of record earnings, while its EBITDA crossed $2 billion for the first time in the third quarter of 2014.
Earnings from continuing operations for the third quarter of 2014 stood at $1.3 billion, or $2.46 diluted earnings per share at LyondellBasell, one of the world’s largest refiner and chemicals producer.
For the first time, EBITDA exceeded $2 billion at LyondellBasell and its Olefins and Polyolefins - Americas segment generated EBITDA in excess of $1.1 billion during the quarter.
“We are pleased to deliver a second consecutive quarter of record earnings, and our best quarter ever as a tight US ethylene market helped drive the record earnings," CEO Jim Gallogly said.
“Third quarter of 2014 includes a $45 million non-cash charge for the impact of a lower of cost or market (LCM) inventory adjustment,” LyondellBasell said.
In the reporting quarter, revenue rose by 8.20 percent to $12.06 billion from $11.15 billion in the corresponding quarter of 2013.
In addition to its strong earnings, LyondellBasell continued to return cash to its shareholders. During the third quarter, dividends and share repurchases totalled $1.6 billion.
The chemicals producer repurchased approximately 12 million shares during the third quarter, and approximately 46 million shares year to date.
Since the first share repurchase program was started in May 2013, LyondellBasell has repurchased approximately 73 million shares, or approximately 13 percent of the shares outstanding.
"Industry fundamentals remained strong during the quarter, and we continue to make progress on our investment program,” Jim Gallogly added.
Late in to the third quarter, LyondellBasell initiated production at the 800 million pound per year - La Porte ethylene expansion.
“This is the first of multiple ethylene expansions by the company, putting us well ahead of new greenfield plants pursued by others in the industry,” Jim Gallogly informed.
In addition, LyondellBasell announced development of two new growth projects. The first, a further expansion of its Channelview olefins complex and second, a new US Gulf Coast PO/TBA plant.
“Both projects take advantage of the favorable environment for North American raw materials and the PO/TBA plant leverages our proprietary technology,” Jim Gallogly noted.
On its outlook for the fourth quarter, LyondellBasell expects that fourth quarter results should be favorably impacted by the new La Porte ethylene capacity.
LyondellBasell is one of the world's largest plastics, chemical and refining companies and manufactures products at 55 sites in 18 countries. (AR)
