Lyondell Chemical Company announced net income for the third quarter 2006 of $57 million, or 22 cents per share on a fully diluted basis.
These results include after-tax charges of $114 million related to an August 2006 refinery transaction and $69 million for the impairment of the net book value of the Lake Charles, ethylene facility.
These results compare with net income of $10 million, or 4 cents per share, for the third quarter 2005, and net income of $160 million, or 62 cents per share, for the second quarter 2006.
For the first nine months of 2006, net income was $507 million, or $1.96 per share on a fully diluted basis, including the charges described above, compared with $390 million, or $1.50 per share, during the first nine months of 2005.
Aside from the previously mentioned charges, third-quarter business results improved versus the second quarter 2006, with strength in both chemicals and refining. The ethylene segment benefited from increased prices, while propylene oxide (PO) and PO derivatives reported higher sales volumes and margins.
Refining segment results improved, primarily as a result of increased ownership in the Houston refinery and the related change in the crude supply contract.
"In a period of continued volatility in the energy and chemical markets, our product mix and operating flexibility performed well, producing strong third-quarter results. In addition, the refinery continued to set new records and operate above stated capacity for the second quarter in a row," said Dan F. Smith, President and CEO of Lyondell Chemical Company.
"Our strong results positioned us to call an additional $430 million of debt on October 24. After completing this prepayment, debt repayment will approach $900 million for the year."
Lyondell Chemical Company
marketing@alchempro.com
