Lyondellbasell Industries (LYB), one of the world's largest plastics, chemical and refining companies, has announced a 26.80 percent rise in profit for the quarter ended Jun. 30, 2014.
The company earned $1,178 million or $2.23 a share in the second-quarter, compared with $929 million or $1.61 a share, a year ago. Analysts on average had predicted net income of $1.92 a share.
Revenue during the second-quarter climbed 9.13 percent to $12,117 million from $11,103 million in the last year period.
Gross margin expanded by 89 basis points over the last year period to 15.37 percent. Total expenses as a percentage of revenues decreased to 86.69 percent from 87.72 percent in the same period last year. That has resulted in improvement of 103 basis points in operating margins to 13.31 percent.
The company reported operating income of $1,613 million, compared with $1,364 million in the previous year period.
"We had record earnings this quarter of $2.22 per share, while our EBITDA approached $2 billion. Importantly, every segment contributed to this achievement. Of particular note was the strength in our Olefins and Polyolefins- Americas segment which generated nearly $1 billion of EBITDA even while we were performing significant scheduled maintenance at our La Porte ethylene site. In addition to the strong quarterly earnings, we repurchased approximately 19 million of our shares during the second quarter, completing the initial 10 percent share repurchase authorization. We also initiated repurchases under the second 10 percent authorization," said Jim Gallogly, LyondellBasell CEO.
"During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment. U.S. oil, natural gas, and natural gas liquids production remain strong. Together these support margins in our Olefins and Polyolefins ��" Americas, Intermediates and Derivatives, and Refining segments. However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant," Gallogly noted.
Cash Position
As on Jun. 30, 2014, the company's cash balance stood at $2,030 million, down 37.21 percent or $1,203 million from Jun. 30, 2013.
Working Capital
Lyondellbasell Industries has witnessed an increase in the working capital over the last one year. The company's working capital stood at $8,077 million as at Jun. 30, 2014, up $81 million or 1.01 percent from $7,996 million on Jun. 30, 2013. It registered a decrease in current ratio to 2.44 as at Jun. 30, 2014 from 2.59 on Jun. 30, 2013.
Debt Position
Lyondellbasell Industries has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $6,824 million, up 54.35 percent or $2,403 million, from Jun. 30, 2013.
The company's total debt was 25.60 percent of total assets as on Jun. 30, 2014, compared with 17.65 percent on Jun. 30, 2013. It has witnessed an increase in debt to equity ratio to 0.63 on Jun. 30, 2014 compared with 0.37 on Jun. 30, 2013.
Shares of the company went down by 507 cents or 4.95 percent to close at $107.49 on Friday.
