LyondellBasell sees lower refining margins in April

Refining industry spreads have declined in the second quarter of 2015 from the first quarter, according to Bob Patel, CEO of LyondellBasell.

Patel issued his outlook as part of the company's first-quarter earnings release. LyondellBasell breaks down its business into five categories: 1) olefins and polyolefins — Americas; 2) olefins and polyolefins — Europe, Asia, and international (EAI); 3) intermediates and derivatives; 4) refining; and 5) technology.

"Thus far, refining industry spreads have declined versus the first quarter but remain healthy," Patel said.

Meanwhile, business conditions within LyondellBasell's olefins and polyolefins segments have been relatively consistent with the first quarter, according to the CEO.

"Planned and unplanned industry downtime has continued to support polyolefins pricing," Patel said.

"Additionally, in the US, NGL feedstock inventories stand at or near record levels, production has remained strong, and NGL prices are low. During the quarter, we expect our intermediate and derivatives segment to benefit from normal seasonal trends," he added.

For the first quarter, LyondellBasell's net income jumped 23% year on year to $1.2 B, driven by lower costs and higher volumes in its olefins and polyolefins operations.

Lower costs helped to offset lower polyolefins prices during the quarter, in which group sales dropped by 26% year on year to $8.2 B.

The full earnings results by business segment can be found in LyondellBasell's news release.