MOSCOW (MRC) -- LyondellBasell Industries announced earnings from continuing operations for the first quarter 2016 of USD1.0 billion, said the company in its press release.
First quarter 2016 EBITDA was USD1.8 billion. The quarter included a USD68 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment (USD47 million after-tax). Excluding the LCM adjustment, earnings from continuing operations during the first quarter totaled USD1.1 billion. EBITDA was USD1.9 billion. In February, the Argentine wholly owned subsidiary Petroken Petroquimica Ensenada S.A. (Petroken) was sold for an after tax gain of USD78 million that impacted earnings by USD0.18 per share.
"The first quarter of 2016 developed as we anticipated. LyondellBasell's operations were strong and we completed planned maintenance as expected. The value of our global footprint and integrated businesses was evident in the excellent results from the Olefins & Polyolefins, Europe, Asia and International segment and our global polypropylene businesses. Markets for our products were generally tight with prices responding quickly to supply and demand dynamics," said Bob Patel, LyondellBasell chief executive officer.
"As we look forward to the remainder of the second quarter, a significant amount of industry capacity will be offline in both the U.S. and Asia for scheduled maintenance. We believe this is tightening global olefin and polyolefin markets. Within our system, we have begun the maintenance turnaround and 800 million pound ethylene expansion at Corpus Christi and expect to ramp up toward full utilization of the expanded capacity during the third quarter. During the second quarter our refinery will operate at reduced rates as we repair damage from an April fire. At the same time, the refining and oxyfuels businesses have started to benefit from seasonal margin improvements," Patel said.
As MRC informed earlier, LyondellBasell, one of the world's largest plastics, chemical and refining companies, has announced that it has completed the previously announced acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys Pvt. Ltd. (Zylog) in India. The company entered into a definitive agreement to acquire Zylog's PP compounding assets in November 2015.
LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 57 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. Hostacom and Hifax are trademarks owned by LyondellBasell. The manufacturing facilities in India are owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.
MRC