LyondellBasell 3Q14 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Management change ahead

“After five and half years of non-stop work, it’s time for me to retire. Our supervisory board of directors has established a committee to choose my successor. I will continue to serve as CEO and chairman at the management board to ensure an orderly transition pending the selection of my replacement.”

Not seeing fall in Polyethelene prices with oil as would often be the case

“Polyethylene seems to be quite tight right now and is not available like that. Orders don’t get fill by some of our competitors. We have seen very strong demand, order books are full, so supply-demand in America seems pretty tight. In Europe is that same tightness seems to be there. We haven’t seen cancellation of orders on the fall in crude prices like sometimes happens. It’s seems to be pretty solid. I think because inventory levels have been very, very short in the convertors. So that kind of dynamic the market seems to be reasonably tight still. In Asia, prices have come down a bit but definitely not in line with fall in Naphtha prices at this point. Over time, we will see what happens in supply-demand.”

I think inventories are running pretty lean, watching closely in case theres a destocking, but don’t expect it

“I think the customer inventory should pretty lean. Usually, we see that pattern by now in the month and I have been watching order books very closely would have expected that in Europe first and we just haven’t been seen in the United States because of the number of outages of Ethylene, Polyethylene has been particularly short’