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LyondellBasell's (LYB) Process Technology Selected by Indian Oil

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LyondellBasell Industries N.V. (LYB - Free Report) recently announced that Indian Oil Corporation Ltd. has chosen LYB's Hostalen Advanced Cascade Process (Hostalen ACP) technology for a new high-density polyethylene (HDPE) facility with a capacity of 200 kilotons per year. Panipat, India, will be the site of the new facility.

The well-known Hostalen ACP resins from LyondellBasell's low-pressure slurry HDPE process are highly valued in India, as the company's technology enables operators to create resins that the Indian market requires in a reliable and cost-effective manner.

The Hostalen ACP process technology produces high-performance, multi-modal HDPE resins with an industry-leading stiffness/toughness balance, impact resistance, high stress cracking resistance and processing benefits for use in pressure pipe, film, blow molding, and caps and closure applications.

The Hostalen ACP facility will begin production of multi-modal HDPE products using Avant Z501 and Avant Z509-1 catalysts.

Shares of LyondellBasell have gained 9.5% over the past year compared with a 16% fall of its industry.

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The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins (O&P) margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to fall.

Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LYB plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American O&P assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.

Zacks Rank & Key Picks

LyondellBasell currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Axalta Coating Systems Ltd. (AXTA - Free Report) and The Andersons Inc. (ANDE - Free Report) .

Carpenter Technology has a projected earnings growth rate of 213.2% for the current fiscal year. It currently sports a Zacks Rank #1 (Strong Buy). CRS has a trailing four-quarter earnings surprise of roughly 14.3%, on average. The stock is up around 68.9 % in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA has a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 17.7% in a year.

Andersons currently carries a Zacks Rank #2 (Buy). The stock has gained roughly 38.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.

 

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