Lyondellbasell Posts Profit After Bankruptcy Exit
Plastics and chemical company LyondellBasell Industries NV, which just emerged from Chapter 11 bankruptcy, posted a second-quarter profit on Monday, sending its stock up nearly 5%.
But the Rotterdam, Netherlands-based company said the long-term fundamentals for the industry had not changed appreciably, despite strong U.S. ethylene margins and improved results in European olefins and polyolefins.
"The rates at which the world economy recovers and new capacity comes online in the Middle East and Asia will significantly influence operating rates and margins," said Chief Executive Officer Jim Gallogly.
LyondellBasell emerged from Chapter 11 bankruptcy on April 30 with a greatly improved balance sheet - about $3.6 billion of liquidity and reduced legal and environmental exposures.
Excluding an $8.64 billion after-tax gain related to emergence from Chapter 11 and fresh-start accounting adjustments, second-quarter income was $203 million. The company posted a loss of $353 million for the year-earlier period.
Excluding reorganization items and a $333 million noncash inventory charge, second-quarter earnings before interest, income taxes, depreciation and amortization, and restructuring costs more than doubled to $1.40 billion.
Read CHEManager Europe's interview with Anton de Vries, Lyondellbasell's senior vice president of Olefins & Polyolefins for Europe here.
