August 1 - LyondellBasell LYB.N fell short of Wall Street expectations for second-quarter profit on Friday, as the chemical maker grappled with lower margins and higher energy costs, sending its shares down 2.5% in the premarket trading.

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.

(Reporting by Sumit Saha in Bengaluru; Editing by Vijay Kishore)

((Sumit.Saha@thomsonreuters.com;))