Back to top

Image: Bigstock

LyondellBasell's Q3 Earnings Lag, Sales Surpass Estimates

Read MoreHide Full Article

LyondellBasell Industries N.V. (LYB - Free Report) recorded third-quarter 2024 profit of $573 million or $1.75 per share, reflecting a decline of 23.3% from the year-ago quarter's profit of $747 million or $2.29 per share. LYB posted adjusted earnings of $1.88 per share, down 23.6% from the year-ago quarter figure of $2.46. Adjusted earnings missed the Zacks Consensus Estimate of $2.03.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company’s net sales in the third quarter were $10,322 million, which beat the Zacks Consensus Estimate of $10,271.8 million. Net sales decreased around 2.9% from $10,625 million in the prior-year quarter.

LYB saw higher integrated polyethylene margins in North America, driven by favorable ethane and natural gas costs and higher polyethylene prices.

LYB’s Segment Highlights

In the reported quarter, Olefins & Polyolefins — America’s division revenues increased 3.5% year over year to $2,982 million, missing the Zacks Consensus Estimate of $3,036.3 million.

Olefins & Polyolefins — Europe, Asia the international segment’s revenues increased 14.8% year over year to $2,809 million, missing the Zacks Consensus Estimate of $2,810.4 million.

In the third quarter, Intermediates and Derivatives segment sales were down 12.8% to $2,686 million, missing the Zacks Consensus Estimate of $2,896 million.

The Advanced Polymer Solutions segment's revenues declined 0.3% to $896 million, missing the Zacks Consensus estimate of $964.7 million.

In the Refining segment, sales declined 23% to $2,054 million, beating the Zacks Consensus Estimate of $1,764.9 million. The Technology segment's revenues declined 33% to $146 million, missing the Zacks Consensus Estimate of $177.8 million.

LYB’s Financials

LyondellBasell generated $670 million in cash from operating activities in the third quarter and achieved more than 80% cash conversion over the past year. The company maintains a disciplined approach to capital allocation, investing $368 million in capital expenditures and returning $479 million to shareholders via dividends and share repurchases. At the conclusion of the third quarter, the company had $2.6 billion in cash and short-term investments and $7.3 billion in accessible liquidity.

LYB’s Outlook

LYB is making headway toward establishing a lucrative Circular and Low Carbon Solutions business, one of the three pillars of its long-term strategy. In the third quarter, it commenced construction on the first commercial-scale plant to use its proprietary and differentiated advanced catalytic recycling technology, MoReTec-1, in Wesseling, Germany. The facility, set to start operations in 2026, aims to aid LYB in producing and marketing at least 2 million metric tons of recycled and renewable polymers yearly by 2030. 

The MoReTec-1 unit's electrification reduces greenhouse gas (GHG) emissions by using renewable electricity. LYB, in September, exceeded its aim of procuring 50% of its electricity from renewable sources by 2030, thanks to a new power purchase agreement in the Netherlands.

LYB expects year-end seasonality to result in weaker demand across most businesses in the fourth quarter. Higher sequential natural gas and ethane feedstock costs are expected to moderate North American integrated polyolefins margins during the fourth quarter. Oxyfuels and refining margins are projected to fall with low gasoline crack spreads and the conclusion of the summer driving season.

LYB Stock’s Price Performance

Shares of LyondellBasell have lost 3.4% in the past year against a 7.7% upside of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

LYB’s Rank & Key Picks

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

Better-ranked stocks worth a look in the basic materials space include IAMGOLD Corporation (IAG - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Barrick Gold Corporation .

IAMGOLD is slated to report third-quarter results on Nov. 7. The Zacks Consensus Estimate for third-quarter earnings is pegged at 11 cents. IAG beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 200%. IAG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kinross Gold is slated to report third-quarter results on Nov 5, after market close. The Zacks Consensus Estimate for KGC’s third-quarter earnings is pegged at 17 cents. KGC beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 29.1%. KGC currently carries a Zacks Rank #1.

Barrick Gold is slated to report third-quarter results on Nov. 7, before the opening bell. The consensus estimate for Barrick Gold’s third-quarter earnings is pegged at 33 cents. GOLD, carrying a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 21.2%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kinross Gold Corporation (KGC) - free report >>

Iamgold Corporation (IAG) - free report >>

LyondellBasell Industries N.V. (LYB) - free report >>

Published in