LyondellBasell Tops Expectations

LyondellBasell Industries NV said profit in its latest quarter rose, despite a sharp decline in revenue driven by lower product prices.

The Dutch chemicals-and-polymer producer, which emerged from chapter 11 bankruptcy in 2010, provides compounds found in products ranging from electronics to construction materials and biofuels. Lyondell, with its U.S. headquarters in Houston, has benefited from lower natural gas prices that have led to lower key raw material costs—helping to offset diminished pricing power that has resulted from cheaper oil.

On Tuesday, though, the company noted lower product prices that pressured revenue. The price of ethylene during the quarter decreased by approximately 13 cents per pound, LyondellBasell said.

Chief Executive Bob Patel said abundant natural gas supply aided margins. He added that planned and unplanned industry downtime created favorable global conditions.

In all for the quarter, the company reported a profit of $1.33 billion, or $2.82 a share, up from year-earlier earnings of $1.18 billion, or $2.23 a share. Results include a $9 million pretax credit stemming from an inventory adjustment, the company said.

Revenue plunged 25% to $9.15 billion.

Analysts, according to Thomson Reuters, expected earnings of $2.70 a share and revenue of $9.12 billion.

Olefins and polyolefins in the Americas, the segment that produces products such as ethylene and the represents the bulk of the company's bottom line, reported operating income of $920 million, up 2.5% from the year-ago quarter. Sales in the segment fell 23%.

Write to Lisa Beilfuss at [e-mail]

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