LyondellBasell beats Q1 profit view, expects seasonal demand boost

(Reuters) - Petrochemical manufacturer LyondellBasell said on Friday it expects seasonal demand improvements across most of its units in the current quarter after it beat first-quarter profit estimates.

The chemical maker said low costs for natural gas and natural gas liquids (NGLs) should continue to benefit margins from LyondellBasell's North American and Middle East production in the second-quarter.

With the start of the summer driving season, oxyfuels and refining margins are also expected to increase, the company added.

Oxyfuels are a key component of clean-burning, high-octane gasoline. They improve fuel efficiency, engine performance and air quality by improving combustion efficiency which in turn reduces vehicle emissions, including greenhouse gases.

"During the second quarter, LYB expects to operate its assets in line with market demand with average operating rates of 85% for global olefins and polyolefins assets and 80% for the Intermediates & Derivatives assets," the company said in a statement.

LyondellBasell reported an adjusted profit of $1.53 per share for the quarter ended March 31, topping analysts' average estimate of $1.37 per share, according to LSEG data. Lower costs for natural gas-based feedstocks and the Red Sea disruptions helped its margins and volumes.

In North America, the company said lower costs for natural gas-based feedstocks and energy benefited olefins and polyolefins margins, while regional demand for polyethylene improved in the reported quarter.

U.S. gas futures were down about 20.4% during the quarter compared to the corresponding period in 2023.

First-quarter revenue of $9.93 billion also topped Wall Street estimates of $9.73 billion.

(Reporting by Roshia Sabu in Bengaluru; Editing by Ravi Prakash Kumar)