Chemical maker LyondellBasell misses quarterly profit estimates on lower margins
Chemical companies in North America are seeing their profit margins squeezed due to rising energy costs, driven by surging power demand from energy-hungry data centers.
In April, the U.S. Energy Information Administration said U.S. power consumption will hit new record highs in 2025 and 2026, on the back of data centers dedicated to AI and cryptocurrency.
Chemical companies have also been struggling due to slumping demand and rising raw material costs, especially in Europe, where a rigorous regulatory landscape is compelling businesses to reassess their approach in the region.
The company was in exclusive talks with Munich-based investment firm AEQUITA for the sale of certain olefin and polyolefin assets in Europe as a part of its strategic review of the European assets in two business units.
LyondellBasell's olefins and polyolefins-Americas unit, its largest segment by sales volume, reported adjusted core earnings of $318 million, down from $670 million last year. The unit produces materials for packaging and construction, among others.
However, in the third quarter, the company expects improved North American integrated polyethylene margins due to competition of planned maintenance in April and higher prices supported by solid domestic demand and stronger export volumes.
The company posted an adjusted profit of 62 cents per share in the April-June quarter, compared with analysts' estimate of 80 cents per share, according to data compiled by LSEG.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Finextra
19 minutes ago
- Finextra
DF Capital goes live with Lendscape
Lendscape is pleased to announce that DF Capital, a specialist bank, has successfully gone live with Lendscape's asset finance platform. 0 This milestone has enabled DF Capital to launch its asset finance offering to market; providing additional financing solutions to SMEs, as well as its first consumer finance products. By adopting Lendscape's API-first platform, DF Capital is streamlining operations, accelerating decision-making, and moving towards touch-free automation, creating an enhanced lending experience for customers. Lendscape's technology also positions DF Capital to better leverage data and harness AI, equipping them for future advancements in digital lending. DF Capital chose Lendscape as its technology partner for its deep industry expertise and highly scalable platform, designed to adapt as the bank expands. A major advantage of Lendscape's solution is its ability to act as a 'product engine', making it easy for DF Capital to innovate, connect with other tools, and launch new offerings. "We've been impressed by Lendscape's capabilities and how smoothly the project has gone," said Paul Atherton, DF Capital's Chief Technology Officer. "Lendscape's industry knowledge, advanced technology, and deep understanding of our needs made them the ideal partner to help us achieve our goals. Through this collaboration, we can better support UK businesses with flexible financing, expand our operations, and continue delivering the best experience for our customers." "We're excited that DF Capital has successfully gone live with Lendscape,' said Steve Taplin, Chief Product Officer at Lendscape. 'We're committed to delivering flexible, modern technology that drives efficiency and supports the evolving needs of our clients. DF Capital is leveraging Lendscape's capabilities to enhance operations while meeting the rigorous requirements of the regulated banking sector. This partnership affirms the growing recognition of the value our solutions and team bring to the market.' Sunny Bhachu, Regional Sales Director at Lendscape added, "Supporting DF Capital in their growth journey is truly exciting. We're proud to empower their efforts to extend support for UK customers through our solutions."
Finextra
19 minutes ago
- Finextra
Marqeta completes TransactPay acquisition
Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform that enables embedded finance solutions for the world's innovators, today announced the successful completion of its acquisition of TransactPay, a BIN Sponsorship provider that is licensed as an E-Money Institution (EMI) to issue e-money and undertake payment services in the UK and European Economic Area. 0 As previously announced in February 2025, the acquisition of TransactPay will strengthen Marqeta's card program management capabilities in Europe, bolstering digital payments capabilities for customers in the UK and EU, and enabling existing customers to expand more easily into European markets. With the combined capabilities of Marqeta and TransactPay, customers will be able to take advantage of card program management features in the UK and EU, and avoid the added complexity associated with engaging multiple partners. Marqeta and TransactPay customers will continue to have dedicated customer and production support, as well as strategic bank, network, and regulatory relationships, supporting card program scale throughout the region. 'In today's evolving global landscape, from regulatory modifications to rapid economic policy changes, the ability to deliver innovative payments products and scale quickly while staying compliant with requirements across Europe is critical. With the combined capabilities of TransactPay and Marqeta, we're helping our customers address these fundamental payment needs,' said Marcin Glogowski, SVP Managing Director, Europe and UK CEO, Marqeta. 'Our business in Europe continues to grow, with total processing volume more than doubling year-over-year. This acquisition furthers this growth and demonstrates our commitment to the European and UK markets as part of our overall global strategy.' 'We are proud to continue as a trusted partner to Marqeta, combining our capabilities to help our customers accelerate growth and bring new digital payments offerings to market more efficiently,' said Aaron Carpenter, CEO of TransactPay. 'We look forward to continuing to grow and scale our technology with Marqeta across Europe, delivering the innovative solutions that our customers are seeking.'
Finextra
19 minutes ago
- Finextra
Cinven makes majority investment in Objectway
Private equity firm Cinven has made a majority investment in Italian wealth management technology provider ObjectWay. Terms of the transaction were not disclosed. 0 Founded in 1990 and headquartered in Milan, Objectway supports more than 250 financial institutions across more than 16 countries. Cinven's backing will provide strategic and financial support, including continued investment in technology innovation, as well as support for future organic growth and targeted M&A opportunities. Objectway founder Luigi Marciano will remain a significant shareholder alongside Cinven, and continue in his role as CEO and chair. Luigi Sbrozzi, partner and co-head of strategic funds at Cinven comments: 'Cinven has a wealth of experience in the financial services and technology sectors, and a successful track record of partnering with exceptional management teams to create market leading businesses by investing for growth, including through tech-led innovation and buy and build strategies."
