The Urethane Blog

LyondellBasell PO Results Hampered by Storm

Intermediates & Derivatives (I&D)– Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.

Table 4 – I&D Financial Overview
Millions of U.S. dollarsThree Months Ended
March 31,
2021
December 31,
2020
March 31,
2020
Operating income$88$166$131
EBITDA182262203
LCM (benefits) charges, pre-tax(66)78
EBITDA excluding LCM182196281

Three months ended March 31, 2021 versus three months ended December 31, 2020 – EBITDA decreased $14 million versus the fourth quarter 2020, excluding an unfavorable variance of $66 million due to LCM inventory benefits in the fourth quarter.  First quarter results increased approximately $50 million due to LIFO inventory valuation charges in the fourth quarter.  Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $35 million due to lower volumes driven by Texas weather events and planned maintenance partially offset by higher margins due to tight market supply.  Intermediate Chemicals results decreased about $55 million primarily due to a decrease in volumes driven by the weather events.  Oxyfuels & Related Products results increased approximately $25 million with higher margins benefiting from improving gasoline prices partially offset by lower volumes.

Three months ended March 31, 2021 versus three months ended March 31, 2020 – EBITDA decreased $99 million versus the first quarter 2020, excluding a favorable variance of $78 million due to LCM inventory charges in the first quarter 2020.  First quarter 2021 results benefited approximately $10 million due to an increase in the euro versus the U.S. dollar exchange rate relative to the first quarter 2020.  Compared with the prior period, Propylene Oxide & Derivatives results decreased about $25 million due to lower volumes driven by the weather events and planned maintenance partially offset by higher margins due to tight market supply.  Intermediate Chemicals results decreased approximately $20 million due to lower margins driven by higher feedstock costs and lower volumes.  Oxyfuels & Related Products results decreased approximately $70 million driven by lower margins and volumes. Volumes were lower driven by weather events and lower gasoline demand.  Equity income increased more than $10 million due to improved results at our joint venture in China.

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