By Mary de Wet
LyondellBasell Industries expects higher demand for gasoline and jet fuel in the second half of the year, the result of increasing mobility as the Covid-19 pandemic ebbs.
On its second quarter:
The plastics, chemicals and refining company reported net income of $2.06 billion, up from $314 million in the comparable quarter a year ago. Revenue doubled from a year ago to $11.56 billion.
“In both of our Olefins and Polyolefins segments, strong demand supported price and margin improvements resulting in record quarterly EBITDA,” said Chief Executive Bob Patel.
“Reopening and increased mobility are driving higher demand for transportation fuels and improving margins for our Oxyfuels and Refining businesses. During the period, we operated all of our available capacity near full rates to begin rebuilding depleted inventories and addressing our customers’ backlogs,” Mr. Patel said.
On its outlook:
“We expect demand for LyondellBasell’s products and our associated financial results to remain stronger for the foreseeable future. Three broad themes support our convictions,” the company said.
“First, as we work to overcome the challenges of variants, the phased rollout of vaccines and the progression of societal reopening around the world should support robust global demand for our products in both the manufactured goods and service industries for several quarters to come.
“Second, as our customers seek to address order backlogs, rebuild inventories and serve pent-up consumer demand, we expect strong integrated polyethylene margins to continue.
“Third, increasing mobility during the second half of 2021 should drive higher demand for gasoline and jet fuel providing additional tailwinds by improving margins for our Oxyfuels & Related Products and Refining businesses.”
Write to Mary de Wet at firstname.lastname@example.org