LyondellBasell tops quarterly profit estimates as global supply disruptions boost margins

Here are some details:

• The chemicals maker operated its North American olefins and polyolefins assets at about 90% utilization during the second quarter.
• It reported adjusted earnings of $4.30 per share for the quarter ended June 30, compared with analysts' average estimate of $3.41 per share, according to data compiled by LSEG.
• Quarterly sales rose 20% to $9.18 billion from a year ago, narrowly exceeding estimates of $9.15 billion.
• Shares of LyondellBasell were up 3.19% in premarket trading following the results.
• Net income for the quarter rose to $559 million, or $1.71 per diluted share, from $115 million, or 34 cents per share, a year earlier.
• Results also improved at its Europe, Asia and international olefins and polyolefins business, helped by stronger polymer spreads and joint venture contributions.
• Higher margins for oxyfuels, methanol and propylene oxide derivatives lifted earnings in its intermediates and derivatives segment.
• The company said an unplanned outage at its Bayport PO/TBA plant partly offset those gains. The facility restarted in June and exited the quarter at full operating rates.
• LyondellBasell completed the sale of four European assets in the quarter, recording a $734 million pre-tax loss on the divestiture.
• The company remains on track to generate $500 million in incremental cash by the end of 2026 through fixed-cost cuts and lower capital spending.
• It warned that uncertainty over when conflict-disrupted Middle East supply would return could keep energy and petrochemical markets volatile into 2027.