Earnings at LyondellBasell jump more than 50 percent

Higher global demand for plastics products lifted the first quarter profit of Houston chemical maker LyondellBasell by more than 50 percent.

LyondellBasell said Friday that it earned $1.2 billion, or $3.11 per share, in the first quarter, up from $797 million, or $1.98 per share, in the same period last year. Revenues rose 17 percent to $9.8 billion from $8.4 billion in the first quarter of 2017.

Global demand for products made from polyethylene, such as packaging film, pressure pipe, plastic fuel tanks and wire jacketing, grew 4 percent in the first three months of the year. Bob Patel, the LyondellBasell chief executive, told investors that North American chemical makers will have to expand polyethylene production capacity to satisfy China’s growing appetite for plastics.

By 2022, China’s net imports of polyethylene products are expected to increase to 38 billion pounds, up by about a third compared to 2017, the company said. U.S. and Canadian demand grew 3.7 percent in the first quarter; in northeast Asia, 6.3 percent.

“We continue to see strong demand for our polyolefin products across all regions,” Patel said. He added that the company is at the start of a seasonal increase in margins for certain chemicals and refining.

The company spent $514 million on dividends and share repurchases in the quarter, buying 1.3 million shares and increasing its quarterly dividend 11 percent to $1 per share. Patel said the company plans to expand its share buyback program.

In February, the company agreed to purchase Ohio plastics company A. Schulman for $2.3 billion. A polyethylene plant it’s building in La Porte is on track to start up next year.