Chemicals and polymers maker
) posted earnings from continuing operations of $1.51 per share
for the third quarter of 2013, up from $1.47 per share recorded a
year ago. However, the results missed the Zacks Consensus
Estimate of $1.59. The year-ago quarter's results included
one-time gains of 11 cents per share.
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Consolidated profit crept up 0.8% year over year to $851 million
or $1.50 per share in the quarter from $844 million or $1.46 per
share a year ago. The company leveraged favorable North American
natural gas environment in the reported quarter.
LyondellBasell logged revenues of $11,152 million in the quarter,
down roughly 1% year over year as gains in olefins and
polyolefins businesses were masked by declines across
intermediates and derivatives and refining units. It missed the
Zacks Consensus Estimate of $11,440 million.
Consolidated earnings before interest, taxes, depreciation, and
amortization (EBITDA) fell roughly 4% year over year to $1,531
The Netherlands-based company's shares fell roughly 2% in
pre-market trading, reflecting the miss.
Revenues from the Olefins & Polyolefins - Americas division
rose 3% year over year to $3,315 million. EBITDA rose 3% year
over year to $841 million, helped by improved polyethylene
performance on increased pricing and higher ethane cracking at
Sales from the Olefins & Polyolefins - Europe, Asia,
International segment went up around 4% year over year to $3,594
million. EBITDA doubled year over year to $204 million on the
back of higher olefin margins driven by better ethylene prices
and increased volumes.
Intermediates and Derivatives segment sales fell 7% to $2,452
million in the reported quarter. EBITDA declined 10% year over
year to $427 million, hurt by softer butanediol and solvents
market conditions and weak oxyfuels results.
Revenues from the Refining segment fell around 3% to $3,177
million. EBITDA slid 95% year over year to $8 million, in part,
due to higher natural gas costs, plant maintenance and oversupply
in the gasoline market. Renewable Identification Numbers (RINs)
costs to meet U.S. renewable fuel standards rose $28 million from
the year-ago quarter.
Technology segment sales were flat year over year at $124
million. EBITDA rose 6% year over year to $52 million as a
decline in licensing sales was more than offset by increased
catalyst sales and lower R&D costs.
LyondellBasell ended the quarter with cash and cash equivalents
of $4,414 million, up 25% year over year. Long-term debt
increased 34% year over year to $5,774 million. LyondellBasell
bought back 13.5 million shares in the reported quarter.
LyondellBasell said that factors that aided its results in the
third quarter will remain in place in the fourth. The company has
historically seen lower margin in products such as oxyfuels in
winter months and sluggish polyolefin revenues around the holiday
LyondellBasell, which remains challenged by a weak European
market, continues to progress with its expansion projects that
are expected to contribute to its earnings. It expects to
complete the methanol restart project in the fourth quarter
followed by the La Porte ethylene debottleneck expansion in
LyondellBasell, which has emerged from Chapter 11 bankruptcy in
2010, is among the leading plastics, chemical and refining
companies globally with operations across 18 countries. The
company's products are used across a bevy of industries including
electronics, automotive parts, packaging, construction materials
LyondellBasell currently retains a short-term Zacks Rank #3
Other companies in the chemical industry with favorable Zacks
Air Products & Chemicals Inc.
PPG Industries Inc.
). All of them carry a Zacks Rank #2 (Buy).