LyondellBasell Reports Decline in Profit and Revenue

by Warren Seah

LyondellBasell Reports Decline in Profit and Revenue

In the final quarter of 2023, LyondellBasell experienced a decrease in both profit and revenue due to soft global demand in the petrochemical markets and lower gasoline crack spreads.

The company’s profit for the quarter was $185 million, or 56 cents a share, compared to $353 million, or $1.07 a share, in the same quarter of the previous year. When excluding non-cash asset impairments and other one-time items, adjusted earnings were $1.26 per share, which fell short of the consensus estimate of $1.33 a share from analysts polled by FactSet.

Despite the decline in profit, revenue for the quarter amounted to $9.93 billion, slightly higher than the year-ago quarter’s $10.21 billion. Analysts projected revenue to be around $9.85 billion, according to FactSet.

Lower gasoline crack spreads had an impact on refining and oxyfuels margins during the quarter, as well as the value of co-product fuels in LyondellBasell’s Olefins & Polyolefins Americas unit.

Furthermore, petrochemical markets experienced headwinds from weakening global demand, capacity additions, and overall economic uncertainty. Weak demand for durable goods also affected margins in various segments including Olefins & Polyolefins, Intermediates & Derivatives, and Advanced Polymer Solutions.

Looking ahead, LyondellBasell anticipates seasonally slow demand in the first quarter of the new year, but expects refining and oxyfuels margins to fall within typical winter seasonal ranges.

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