LyondellBasell Industries LYB missed earnings as well as revenue expectations in the second quarter of 2016.
The Netherlands-based chemical giant’s profits from continuing operations decreased around 17.6% to $1,092 million or $2.56 per share in the reported quarter from $1,326 million or $2.81 per share registered a year ago.
Barring inventory adjustment benefits, earnings from continuing operations were $2.45 per share for the quarter that missed the Zacks Consensus Estimate of $2.54.
Revenues fell roughly 19.9% year over year to $7,328 million, lagging the Zacks Consensus Estimate of $7,763 million.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) declined around 18.4% year over year to $1,783 million in the quarter.
Segment Review
Revenues from the Olefins & Polyolefins – Americas division went down 17.5% year over year to $2,211 million in the reported quarter. EBITDA fell around 25.6% year over year to $754 million as a result of inventory adjustments. Lower ethylene margins drove olefin results lower. Polypropylene volumes were lower due to the sale of Petroken.
Sales from the Olefins & Polyolefins – Europe, Asia, International segment fell 11.1% year over year to $2,721 million. EBITDA jumped around 17.1% year over year to $576 million, supported by inventory adjustments and improved polyolefin results due to better spreads as well as volumes. Equity income from joint ventures in the segment increased by $17 million.
Intermediates and Derivatives segment sales skid 18.1% to $1,769 million in the reported quarter. EBITDA decreased roughly 14.8% year over year to $397 million.
Revenues from the Refining segment tumbled roughly 38.7% to $1,289 million. EBITDA swung to a loss of $13 million from a profit of $159 million in the prior-year quarter. A refinery fire and subsequent downtime for repairs reduced throughput by 72,000 barrels per day in the quarter.
The Technology segment’s sales rose around 20.6% to $129 million on improved catalyst and licensing results. EBITDA improved around 28.1% to $73 million.
Financials
LyondellBasell ended the quarter with cash and cash equivalents of $1,060 million, down 20% year over year. Long-term debt rose around 10.8% year over year to $8,485 million.
LyondellBasell bought back 8.8 million ordinary shares during the reported quarter and paid dividends worth $362 million. Net cash provided by operating activities fell around 12.8% year over year to $1,261 million. Capital expenditures for the quarter were $563 million.