HOUSTON - LyondellBasell Industries (NYSE:LYB) reported second-quarter earnings that beat analyst estimates as revenue rose year-over-year, driven by increased production and improving seasonal demand.
The chemical company posted adjusted earnings of $2.24 per share for the quarter, exceeding the analyst consensus of $2.26. Revenue came in at $10.56 billion, up from $10.31 billion a year ago and above estimates of $10.44 billion.
Net income for the quarter was $924 million, or $2.82 per diluted share, compared to $715 million, or $2.18 per share, in the same period last year. The results included a $293 million pre-tax gain from the sale of LyondellBasell's U.S. Gulf Coast-based ethylene oxide and derivatives business.
"Increased production from LYB's assets, higher integrated margins and rising seasonal demand drove sequential improvements in second quarter profitability," said CEO Peter Vanacker. "Underlying business results increased by nearly 30 percent over the first quarter."
The company said North American olefins and polyolefins volumes increased while favorable ethane and natural gas costs supported integrated margins. In Europe, integrated polyethylene margins expanded with increased use of advantaged LPG feedstocks.
For the third quarter, LyondellBasell expects margins to continue benefiting from low natural gas and natural gas liquids costs in North America and the Middle East. The company anticipates operating rates of 85% for North American olefins and polyolefins assets, 80% for European assets, and 75% for intermediates and derivatives assets.
LyondellBasell returned $513 million to shareholders through dividends and share repurchases during the quarter. The company maintained $2.9 billion in cash and short-term investments with $7.0 billion in available liquidity at quarter-end.
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