LyondellBasell Industries NV has reported $714 million in web earnings for the second quarter, up $242 million in opposition to the prior-three month interval however down greater than two instances that of the second quarter final 12 months.
Prices related to the chemical and gas maker’s plan to exit the petroleum refining sector dragged down earnings, whereas refining margins additionally weakened. Outcomes for the April-June interval have been buoyed by decrease throughput prices and better manufacturing volumes.
“World olefins and polyolefins margins improved modestly throughout the second quarter pushed by decrease feedstock prices in each the U.S. and Europe”, the Dutch firm stated in a press launch.
“New capability from the beginning of LyondellBasell’s propylene oxide and oxyfuels plant in Texas was largely offset by deliberate upkeep on the firm’s current belongings.
“Oxyfuels margins remained robust, supported by low butane prices and sturdy demand for fuels. Refining margins declined from first quarter 2023 highs however remained above long-term averages.”
LyondellBasell, which additionally manufactures polymers, posted a destructive influence of $86 million “associated to prices incurred from plans to exit the refining enterprise”. That provides as much as $182 million in refinery exit prices for the primary half of 2023.
It stated earlier it was delaying its refining exit from yearend 2023 to March 2025 on the newest. The exit, introduced April 21, 2022, had meant ceasing operation at its Texas state refinery, which may course of as much as 268,000 barrels of crude oil per day into transport fuels, lubricants and different merchandise. However on Could 31, 2023, LyondellBasell stated it as an alternative plans to remodel the 700-acre Houston metropolis facility for its enlargement within the round and low carbon sector.
“Favorable inspections and constant efficiency have given the corporate confidence to proceed secure and dependable operations on the Houston website”, it stated. “LyondellBasell anticipates reasonable upkeep spend to help this extension in 2023 and 2024 however stays dedicated to ceasing operation of its oil refining enterprise.
“The extension will decrease workforce impacts as the corporate continues to develop future choices for the location and can allow a smoother transition between the shutdown and the implementation of the retrofitting and round tasks.
“One of many three pillars of the corporate’s new technique is to construct a worthwhile Round and Low Carbon Options enterprise. In help of this technique, LyondellBasell is creating future plans for the Houston refining website.”
LyondellBasell added, “A number of choices are being evaluated together with recycled and renewable-based feedstocks and inexperienced and blue hydrogen”.
Transformation is deliberate to begin 2025.
When it introduced the exit final 12 months LyondellBasell stated the refinery cessation advances its decarbonization objectives. It has set a goal of reaching web zero greenhouse fuel emissions from its international operations by 2050 with a short-term aim of curbing Scope 1 and Scope 2 emissions by 42 % by 2030.
LyondellBasell ended the primary half of 2023 with $2.494 billion in money belongings, with a era of $1.772 billion web from working actions. It reported present debt maturities of $1.206 billion.
“Within the third quarter, the corporate expects typical advantages from summer time seasonality to be greater than offset by delicate demand as a consequence of ongoing financial uncertainty”, it stated. ” Stagnant demand, unstable feedstock prices and new capability in North America and China are difficult petrochemical margins.
“Summer season demand for transportation fuels continues to help engaging oxyfuels and refining margins.”
LyondellBasell distributed $508 million to shareholders for the second quarter, comprising $408 million in dividends and $100 million in inventory repurchases.
Dividends per widespread share for the second quarter was $1.25, in comparison with a web revenue per widespread share of $2.18 each primary and diluted. Dividends for the second quarter was raised 5 % in opposition to the primary quarter.
To contact the writer, e mail firstname.lastname@example.org