(Reuters) – Petrochemicals manufacturer LyondellBasell on Friday reported a loss in the fourth quarter, hurt by weak demand across key markets such as Europe and Asia.
The euro zone economy stagnated last quarter as high inflation hurt consumption, adding to fears that a long-predicted recovery could be further delayed.
The German economy, Europe’s largest and the second-largest market for LyondellBasell after the United States, has been affected by intensifying competition from abroad, weak demand and an industrial slowdown.
This has affected the company’s margins. Germany accounts for 6% of LYB’s total revenue.
LyondellBasell’s fourth-quarter margins declined across most businesses, also hurt by higher costs for natural gas liquids (NGL) feedstocks and natural gas and restrained product prices due to seasonally slower demand.
The company reported core earnings of $496 million in its olefins & polyolefins-Americas unit, the largest segment by sales volumes, compared with $604 million a year ago due to lower polyethylene sales volumes.
Olefins are used to manufacture polymers such as plastic.
Adjusted core profit in its intermediates & derivatives segment, which makes oxyfuels and intermediate chemicals, fell 5.6% to $250 million from a year earlier.
Revenue for the quarter ended Dec. 31 was $9.5 billion, down from $9.93 billion.
The company posted a net loss of $603 million, or $1.87 per share, compared with a net income of $185 million, or 56 cents per share, a year earlier.
However, it reported an adjusted profit of 75 cents per share, compared with analysts’ average estimate of 72 cents, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)
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