LyondellBasell Reports Solid Results in All Segments
LyondellBasell Industries announced earnings from continuing operations for the second quarter 2014 of USD 2.22 diluted earnings per share, or USD 1.17 billion. Second quarter 2014 EBITDA was USD 1.94 billion. The increase from the first quarter 2014 was primarily due to Olefins and Polyolefins – Americas segment results.
LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
"We had record earnings this quarter of USD 2.22 per share, while our EBITDA approached USD 2 billion. Importantly, every segment contributed to this achievement. Of particular note was the strength in our Olefins and Polyolefins – Americas segment which generated nearly USD 1 billion of EBITDA even while we were performing significant scheduled maintenance at our La Porte ethylene site. In addition to the strong quarterly earnings, we repurchased approximately 19 million of our shares during the second quarter, completing the initial 10 percent share repurchase authorization. We also initiated repurchases under the second 10 percent authorization," said Jim Gallogly, LyondellBasell Chief Executive Officer.
"As encouraging as these results are, we did not fully deliver on our reliability expectations, and the quarterly earnings could have been better. Specifically, we were late in completing our La Porte ethylene turnaround in part due to a mechanical issue with a compressor. Both supplier upsets and mechanical issues impacted our Intermediates and Derivatives business as well. Despite these temporary setbacks, our commitment to Operational Excellence continues to be the foundation of our success," Gallogly said.
"Industry fundamentals remain strong, and we continue to execute on our investment program. During the third quarter we expect to begin production from the 800 million pound per year La Porte ethylene expansion. This is the first of three ethylene expansions and continues to put us well ahead of new greenfield plants pursued by others in the industry," Gallogly added.
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