LyondellBasell Industries N.V. (LYB Quick QuoteLYB - Free Report) , which emerged from Chapter 11 bankruptcy in 2010, is among the leading plastics, chemical and refining companies globally. The company’s products are used across a bevy of industries including electronics, automotive parts, packaging, construction materials and biofuels. LyondellBasell is a leading producer of olefins and polyolefins globally.

LyondellBasell is executing its expansion projects to leverage the U.S. natural gas liquids (NGLs) advantage. It remains on track with its multi-plant ethylene expansion projects across its Channelview, La Porte and Corpus Christi facilities in Texas which benefit from shale gas production. However, the company is exposed to volatility in raw material and energy costs.

Let’s have a quick look at this Netherlands-based chemical giant’s second-quarter 2016 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for LyondellBasell for the second quarter has seen an uptrend over the last 30 days. LyondellBasell has beaten the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of 7.75%. Investors have been eagerly awaiting LyondellBasell’s latest earnings report to see whether it continues the winning streak.

Earnings

LyondellBasell logged adjusted earnings of $2.45 per share for the second quarter that missed the Zacks Consensus Estimate of $2.54.

Revenues

LyondellBasell recorded revenues of $7,328 million, down roughly 19.9% year over year. That missed the Zacks Consensus Estimate of $7,763 million.

LYONDELLBASEL-A Price and EPS Surprise

LYONDELLBASEL-A Price and EPS Surprise | LYONDELLBASEL-A Quote

Key Stats/Developments to Note

LyondellBasell said that it benefited from fuel margins in the second quarter of 2016, particularly in the Oxyfuels business. The performance of polyolefin continued to be strong in the quarter. The trend of the polyolefin and chemicals market seen in the reported quarter is continuing in the third quarter. However, oxyfuel and refining margins have declined in the beginning of third-quarter.

LyondellBasell’s Corpus Christi ethylene plant expansion is expected to be completed by the end of the third quarter. The second half of 2016 has a number of plant maintenance scheduled. The company’s inventory and scheduling efforts are expected to partly mitigate the impact of this production shortage.

Zacks Rank

LyondellBasell currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.

Market Reaction

LyondellBasell’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on LyondellBasell’s earnings report!

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