LyondellBasell profits up by 54 per cent in Q1 2018

Higher global demand for plastics products lifted chemical maker LyondellBasell’s profits by 54 per cent in the first quarter of 2018.

Houston-based LyondellBasell reported US$1.2 billion in net income in the first quarter, up from US$797 million in the same period last year. Revenue rose from US$8.4 billion to US$9.8 billion.

In a statement, the company said that demand for products made from polyethylene, such as packaging film, pressure pipe, plastic fuel tanks and wire jacketing, grew four per cent in the first three months of the year.

China’s trade deficit in polyethylene products is expected to increase to 38 billion pounds by 2022, up by about a third compared to 2017, the company said. U.S. and Canadian demand grew 3.7 per cent in the first quarter; demand in Northeast Asia grew by 6.3 per cent.

“We continue to see strong demand for our polyolefin (plastics) products across all regions,” CEO Bob Patel said in the statement. “The recent increase in oil prices and strong global demand should continue to provide support for polyolefin pricing.”

The positive economic news comes at a busy time for LyondellBasell. In February, the company agreed to purchase Ohio plastics company A. Schulman for US$2.3 billion; and a polyethylene plant LyondellBasell is building in La Porte, Texas is scheduled to start up next year.