Lyondell to deliver Q3 earnings & Hurricane update on Oct 27
20 Oct '05
3 min read
Chemical manufacturer Lyondell Chemical Company announced number of third-quarter earnings impacts, and provided an update on hurricane-related events.
Third-Quarter Impacts The third quarter 2005 will include a pre-tax charge of $195 million, or 49 cents per share (after tax), for impairment of the carrying value of Lyondell's Lake Charles, La., toluene diisocyanate (TDI) plant. As separately announced, Lyondell will permanently cease TDI production at the facility. Additionally, the company incurred pre-tax charges of $30 million, or 8 cents per share (after tax), related to participation in a mutual insurance consortium. These charges represent Lyondell's exposure to claims by other members of the consortium related primarily to Hurricanes Katrina and Rita.
Hurricane Update All of Lyondell's major Gulf Coast chemical plants have returned to full rates with the exception of a propylene oxide facility that was previously scheduled for maintenance turnaround activity.
Lyondell is continuing to assess the damage to its Gulf Coast chemical facilities caused by Hurricane Rita, but any resulting costs in excess of related insurance claims is not expected to have a material effect on fourth-quarter 2005 results.
The company's joint venture, Lyondell-Citgo Refining (LCR), continues to operate at reduced rates following hurricane-related equipment issues and problems encountered in its fluid catalytic cracking unit during start-up. Therefinery is expected to operate at 30 percent to 50 percent of its 268,000 barrel-per-day capacity until mid- to late-November.
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