The Urethane Blog

LyondellBasell Propylene Oxide Results

Intermediates & Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.

Table 4 – I&D Financial Overview
Three Months Ended
March 31, December 31, March 31,
Millions of U.S. dollars 2018 2017 2017
Operating income $408 $334 $269
EBITDA 486 410 339

Three months ended March 31, 2018 versus three months ended December 31, 2017 – EBITDA increased $76 million versus the fourth quarter 2017.  Fourth quarter 2017 results included a LIFO inventory charge of $17 million.  Compared to the prior period, PO and derivatives results were relatively unchanged.  In intermediate chemicals, an improvement of approximately $30 million was driven by higher styrene margins partially offset by lower methanol volume.  Oxyfuels and related products results improved approximately $20 million primarily due to higher margins.

Three months ended March 31, 2018 versus three months ended March 31, 2017 – EBITDA increased $147 million versus the first quarter 2017.  Results for first quarter 2017 included charges of approximately $40 million related to precious metal catalysts.  Compared to the prior period, PO and derivatives results improved by approximately $55 million primarily due to higher margins.  In intermediate chemicals, an improvement of approximately $15 million was driven by increased margins partially offset by reduced methanol volumes.  Oxyfuels and related products improved by approximately $40 million primarily due to higher oxyfuels margins.

 

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