LyondellBasell beats profit estimates as Middle East disruptions lift margins

July 31 (Reuters) - Petrochemicals manufacturer LyondellBasell on Friday beat Wall Street estimates for second-quarter profit, as global supply disruptions lifted polymer margins and increased operating rates at its North American assets.

LyondellBasell said geopolitical instability created supply-constrained conditions across its businesses, driving higher polymer margins and favorable co-product pricing.

• Adjusted earnings were $4.30 per share for the quarter ended June 30, above analysts' average estimate of $3.41, according to LSEG data.
• Sales rose 20% to $9.18 billion, slightly exceeding estimates of $9.15 billion.
• The company said the conflict disrupted production, feedstock availability, logistics and trade flows, tightening global supply and supporting polymer spreads.
• Its North American olefins and polyolefins assets ran at about 90% utilization, including cracker utilization of roughly 95%.

Chief Executive Peter Vanacker said LyondellBasell estimates about 6 million metric tons of polyethylene capacity, equal to 20% to 25% of Middle East supply, was damaged in the conflict and is not expected to restart until at least 2027.

• The conflict disrupted production, feedstock availability, logistics and trade flows, Vanacker said.
• Higher Asian freight rates effectively closed the arbitrage from Asia to Europe and Central America, increasing demand for U.S. and European material.
• Chinese producers reduced imports and raised exports, mainly to Southeast Asia, despite lower operating rates, to capture higher export prices amid regional shortages, he added.