Dow Chemical continues to benefit from its low-cost positions and geographic diversification, CEO Andrew Liveris said in presenting earnings figures for the third quarter of 2014. This advantage, he said, enabled growth and improved operating rates over the three-month period.

The largest US chemical producer reported record EBITDA in Performance Plastics and Electronic and Functional Materials for the quarter, coupled with "significant improvement" in Performance Materials.

In particular, low raw material costs boosted earnings for the ninth consecutive quarter in Dow's plastics business. Third-quarter EBITDA in Performance Plastics rose 31%.

Like other US plastics producers, the Michigan-based group has ridden the shale gas boom to higher profitability as materials such as ethane and naphtha have come down and given it an edge over crude oil-dependent European rivals.

The CEO, however, told the news agency Reuters that Dow's European operations will benefit from the ongoing fall in oil prices.

"Our naphtha crackers (in Europe) will be making money they weren't a few months ago," he said, while adding that there could be some "short-term pressure" due to excess supply.

The performance of the petrochemical business may also help Dow ward off demands from hedge fund manager Daniel Loeb, who has repeatedly called on the chemical producer to separate the commodity raw material units from specialty chemicals businesses.

Additionally pleasing to the activist shareholder should be Dow's plan to cut fixed costs by $1 billion over the next three years.

Earlier this month, Liveris confirmed reports that the group planned to shed three more businesses toward its target of divesting assets worth $4.5-6 billion by 2015.