Petrochemicals Giant LyondellBasell Reports Q4 Loss Amid Economic Headwinds
LyondellBasell, a leading petrochemicals manufacturer, faces challenges as demand wanes in key markets such as Europe and Asia. The company reported a net loss in the fourth quarter, driven by economic headwinds and intensifying competition.
Germany, LyondellBasell's second-largest market after the United States, has experienced weakened demand and industrial slowdown, impacting the company's margins. Germany contributes approximately 6% to LyondellBasell's total revenue.
Q4 margins declined across most business segments, compounded by higher feedstock costs for natural gas liquids (NGL) and natural gas. Restrained product prices due to seasonal demand resulted in lower sales volumes for polyethylene, affecting the company's olefins & polyolefins segment. Adjusted core profit in the intermediates & derivatives segment also declined.
Total revenue for the quarter ended December 31, 2023, was $9.5 billion, down from $9.93 billion in the previous year. LyondellBasell posted a net loss of $603 million, or $1.87 per share, compared to a net income of $185 million, or 56 cents per share, a year earlier.
Despite the challenges, the company reported an adjusted profit of 75 cents per share, surpassing analysts' estimates of 72 cents. This result highlights LyondellBasell's resilience amidst economic headwinds. The company's operations and financial performance continue to be closely monitored by investors and analysts as the global economy navigates economic uncertainty.