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LyondellBasell's (LYB) Q4 Earnings, Revenues Top Estimates
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LyondellBasell’s (LYB - Free Report) profits from continuing operations, as reported, fell around 3% year over year to $770 million or $1.89 per share in the fourth quarter of 2016. Barring one-time items, earnings came in at $2.18 per share for the quarter, topping the Zacks Consensus Estimate of $2.11.
Revenues rose roughly 10% year over year to $7,747 million in the quarter, surpassing the Zacks Consensus Estimate of $7,177 million.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) edged up 1% year over year to $1,406 million in the quarter.
For full-year 2016, profits from continuing operations slipped 14% year over year to $3.8 billion or $9.15 per share.
Revenues for the year fell roughly 11% year over year to $29.2 billion.
While low oil and fuel prices hurt refining and oxyfuel margins in 2016, the olefins and polyolefins industry gained from favorable supply and demand balances.
LyondellBasell Industries NV Price, Consensus and EPS Surprise
Revenues from the Olefins & Polyolefins – Americas division went up 9% year over year to $2,409 million in the reported quarter. EBITDA fell around 27% year over year to $563 million, unfavorably impacted by pension settlement. Ethylene margins declined and production fell 9% mainly due to scheduled maintenance.
Sales from the Olefins & Polyolefins – Europe, Asia, International segment edged down 1% year over year to $2,646 million. EBITDA fell around 7% year over year to $398 million, affected by pension settlement. Sales volumes for polyethylene and polypropylene declined in the quarter.
Intermediates and Derivatives segment sales rose 18% to $1,950 million in the reported quarter. EBITDA climbed roughly 44% year over year to $306 million.
Revenues from the Refining segment climbed 35% to $1,561 million. EBITDA was $81 million compared with a loss of $59 million recorded in the prior-year quarter. Throughput rose by 22,000 barrels per day year over year in the quarter.
The Technology segment’s sales fell 5% to $116 million. EBITDA declined 6% year over year to $61 million.
Financials
LyondellBasell ended 2016 with cash and cash equivalents of $875 million, down roughly 5% year over year. Long-term debt rose around 9% year over year to $8,385 million.
LyondellBasell bought back 5.2 million shares during the fourth quarter and 37 million shares in 2016. The company returned $4.3 billion to its shareholders through share repurchases and dividends in 2016.
Capital expenditures were $567 million for the quarter and $2.2 billion for 2016.
Outlook
The company said that the industry outlook for 2017 has improved over the past several months. It added that global supply situations have provided optimism regarding oil prices and natural gas liquids (NGL) supply. The company believes that its significant investments in its 2016 maintenance programs have favorably placed it for 2017.
LyondellBasell outperformed the Zacks categorized Chemicals-Diversified industry in the last three months, supported by its expansion actions. The company's shares gained 19.5% during the period while the industry saw a gain of 13.5%.
LyondellBasell continues to benefit from the favorable North American natural gas environment. The company is executing its expansion projects to leverage the U.S. NGL advantage. LyondellBasell also remains committed to boosting shareholder returns by leveraging healthy cash flows.
LyondellBasell recently completed the 800 million pounds per year ethylene expansion project at its Corpus Christi, TX, facility. The project expands ethylene capacity at the site by 50% to 2.5 billion pounds per year from 1.7 billion pounds per year.
The conclusion of the expansion at Corpus Christi marked the completion of LyondellBasell’s multi-year plan to boost annual ethylene capacity in the U.S. by 2 billion pounds. The company, in 2014, completed an 800-million pound per year expansion at its La Porte, TX site. It also completed a 250-million pound per year expansion at its Channelview facility in 2015.
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LyondellBasell's (LYB) Q4 Earnings, Revenues Top Estimates
LyondellBasell’s (LYB - Free Report) profits from continuing operations, as reported, fell around 3% year over year to $770 million or $1.89 per share in the fourth quarter of 2016. Barring one-time items, earnings came in at $2.18 per share for the quarter, topping the Zacks Consensus Estimate of $2.11.
Revenues rose roughly 10% year over year to $7,747 million in the quarter, surpassing the Zacks Consensus Estimate of $7,177 million.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) edged up 1% year over year to $1,406 million in the quarter.
For full-year 2016, profits from continuing operations slipped 14% year over year to $3.8 billion or $9.15 per share.
Revenues for the year fell roughly 11% year over year to $29.2 billion.
While low oil and fuel prices hurt refining and oxyfuel margins in 2016, the olefins and polyolefins industry gained from favorable supply and demand balances.
LyondellBasell Industries NV Price, Consensus and EPS Surprise
LyondellBasell Industries NV Price, Consensus and EPS Surprise | LyondellBasell Industries NV Quote
Segment Review
Revenues from the Olefins & Polyolefins – Americas division went up 9% year over year to $2,409 million in the reported quarter. EBITDA fell around 27% year over year to $563 million, unfavorably impacted by pension settlement. Ethylene margins declined and production fell 9% mainly due to scheduled maintenance.
Sales from the Olefins & Polyolefins – Europe, Asia, International segment edged down 1% year over year to $2,646 million. EBITDA fell around 7% year over year to $398 million, affected by pension settlement. Sales volumes for polyethylene and polypropylene declined in the quarter.
Intermediates and Derivatives segment sales rose 18% to $1,950 million in the reported quarter. EBITDA climbed roughly 44% year over year to $306 million.
Revenues from the Refining segment climbed 35% to $1,561 million. EBITDA was $81 million compared with a loss of $59 million recorded in the prior-year quarter. Throughput rose by 22,000 barrels per day year over year in the quarter.
The Technology segment’s sales fell 5% to $116 million. EBITDA declined 6% year over year to $61 million.
Financials
LyondellBasell ended 2016 with cash and cash equivalents of $875 million, down roughly 5% year over year. Long-term debt rose around 9% year over year to $8,385 million.
LyondellBasell bought back 5.2 million shares during the fourth quarter and 37 million shares in 2016. The company returned $4.3 billion to its shareholders through share repurchases and dividends in 2016.
Capital expenditures were $567 million for the quarter and $2.2 billion for 2016.
Outlook
The company said that the industry outlook for 2017 has improved over the past several months. It added that global supply situations have provided optimism regarding oil prices and natural gas liquids (NGL) supply. The company believes that its significant investments in its 2016 maintenance programs have favorably placed it for 2017.
LyondellBasell outperformed the Zacks categorized Chemicals-Diversified industry in the last three months, supported by its expansion actions. The company's shares gained 19.5% during the period while the industry saw a gain of 13.5%.
LyondellBasell continues to benefit from the favorable North American natural gas environment. The company is executing its expansion projects to leverage the U.S. NGL advantage. LyondellBasell also remains committed to boosting shareholder returns by leveraging healthy cash flows.
LyondellBasell recently completed the 800 million pounds per year ethylene expansion project at its Corpus Christi, TX, facility. The project expands ethylene capacity at the site by 50% to 2.5 billion pounds per year from 1.7 billion pounds per year.
The conclusion of the expansion at Corpus Christi marked the completion of LyondellBasell’s multi-year plan to boost annual ethylene capacity in the U.S. by 2 billion pounds. The company, in 2014, completed an 800-million pound per year expansion at its La Porte, TX site. It also completed a 250-million pound per year expansion at its Channelview facility in 2015.
Zacks Rank & Key Picks
LyondellBasell is a Zacks Rank #2 (Buy) stock.
Other well-placed companies in the chemical space include BASF SE (BASFY - Free Report) , Methanex Corp. (MEOH - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF has an expected long-term growth of 7.7%.
Methanex has an expected long-term growth of 15%.
Kronos has an expected long-term growth of 5%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>