LyondellBasell beats Q4 profit estimates as lower ethane costs benefit
(Reuters) - LyondellBasell LYB.N beat Wall Street estimates for fourth-quarter profit on Friday, on stable demand for its chemicals in the U.S. polyethylene market.
The adjusted core profit from the olefins & polyolefins-Americas (O&P-Americas) segment, LyondellBasell's largest segment by sales volume, was lifted by lower gasoline crack spreads and lower ethane raw material costs during the quarter.
Olefins are used in the manufacturing of polymers such as plastic.
Adjusted core profit for O&P-Americas was 58% higher at $609 million, compared with the prior-year quarter.
LyondellBasell said it expected a seasonal slowdown in demand and economic uncertainty to cause headwinds for most of its segments in the first quarter of 2024, with relatively low ethane raw material costs to continue to benefit O&P-Americas.
The chemicals manufacturer's adjusted profit for the quarter was $1.39 per share, as per LSEG calculations, which excluded certain one-time charges. Analysts' average estimate was $1.31 per share.
"During the fourth quarter, LyondellBasell's businesses delivered exceptional cash conversion amid challenging market conditions," said CEO Peter Vanacker.
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