LyondellBasell reports big improvement in Q3 earnings

Driven by strong performance in its North American olefins business, Netherlands-based chemical supplier LyondellBasell reported a third-quarter 2011 net income of US$895 million, a substantial increase compared to the US$467 million during the same period last year.

Revenue during the quarter was US$13.3 billion, compared with US$10.3 billion during the prior year period.

The company’s CEO Jim Gallogly said third-quarter results were boosted by wider profit margins, particularly at the company’s Midwestern ethylene plants. The company refines oil, blends gasoline and makes an array of industrial chemical products.

“In U.S. olefins, we benefited from both very strong ethane- and naphtha-based ethylene margins. Our Midwest ethylene plants were especially advantaged,” Gallogly said in a statement. “We are currently operating in a period of global economic uncertainty, which has introduced significant raw material price and profit margin volatility. The volatility limits our near-term visibility, but our strategy of focusing on the basics and running our assets safely and efficiently has proven successful in any environment.”