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LyondellBasell (LYB) Earnings and Sales Beat Estimates in Q1
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LyondellBasell Industries N.V. (LYB - Free Report) posted profits of $1,320 million or $4 per share in first-quarter 2022, up from $1,070 million or $3.18 in the year-ago quarter. The earnings figure surpassed the Zacks Consensus Estimate of $3.48.
Revenues increased 44.9% year over year to $13,157 million in the reported quarter. The figure surpassed the consensus mark of $12,755.2 million.
Consolidated EBITDA in the quarter increased 27.4% year over year to $2,020 million.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
In the Olefins & Polyolefins — Americas division, EBITDA increased 5.1% year over year to $911 million in the reported quarter. Olefins’ results declined as higher volumes were more than offset by lower margins.
The Olefins & Polyolefins — Europe, Asia, the International segment witnessed a decline in EBITDA of 54.4% year over year to $188 million. Olefins’ results declined by nearly $105 million due to reduced margins and volumes. Margins were affected by higher feedstock and energy costs, partly offset by increased ethylene and co-product prices.
The Advanced Polymer Solutions segment posted an EBITDA of $125 million, down from $135 million in the year-ago quarter. The downside was caused by a decline in the euro compared with the U.S. dollar exchange rate.
EBITDA in the Intermediates and Derivatives segment surged 200% on a year-over-year basis to $546 million. Propylene Oxide & Derivatives results increased, driven by improved margins and volumes owing to strong demand and market tightness.
The Refining segment reported EBITDA of $148 million in the quarter against a loss of $110 million in the year-ago quarter. The increase was driven by higher crude throughput led by strong demand for refined products.
The Technology segment’s EBITDA was $103 million in the reported quarter, up 9.6% year over year. The upside was due to increased catalyst volume, partly offset by reduced catalyst margin due to unfavorable euro versus the U.S. dollar exchange rate.
Financials
For the first quarter, LyondellBasell had cash from operating activities of $1.5 billion.
The company returned $0.6 billion to shareholders through dividends and the repurchase of roughly 2.1 million shares in the quarter.
Outlook
The company stated that it expects certain improvements in summer seasonal demand to extend market strength for its products as the global economy continues to navigate geopolitical uncertainty and volatile costs for energy and feedstocks.
Outside China, it projects benefits from sustained demand for consumer packaging, higher volumes for automotive polymer compounds, seasonal demand for durable goods utilized in building and construction markets, as well as strong markets for its oxyfuels products. It anticipates a favorable outlook for its refining segment before exiting the business by the end of 2023.
In the second quarter, LyondellBasell's margins are projected to improve led by prices for products catching up with increased feedstock and energy costs.
Price Performance
Shares of LyondellBasell have gained 2.3% in the past year against a 3.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
LyondellBasell currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.6% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 47.3% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.4% over a year.
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LyondellBasell (LYB) Earnings and Sales Beat Estimates in Q1
LyondellBasell Industries N.V. (LYB - Free Report) posted profits of $1,320 million or $4 per share in first-quarter 2022, up from $1,070 million or $3.18 in the year-ago quarter. The earnings figure surpassed the Zacks Consensus Estimate of $3.48.
Revenues increased 44.9% year over year to $13,157 million in the reported quarter. The figure surpassed the consensus mark of $12,755.2 million.
Consolidated EBITDA in the quarter increased 27.4% year over year to $2,020 million.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
LyondellBasell Industries N.V. price-consensus-eps-surprise-chart | LyondellBasell Industries N.V. Quote
Segment Review
In the Olefins & Polyolefins — Americas division, EBITDA increased 5.1% year over year to $911 million in the reported quarter. Olefins’ results declined as higher volumes were more than offset by lower margins.
The Olefins & Polyolefins — Europe, Asia, the International segment witnessed a decline in EBITDA of 54.4% year over year to $188 million. Olefins’ results declined by nearly $105 million due to reduced margins and volumes. Margins were affected by higher feedstock and energy costs, partly offset by increased ethylene and co-product prices.
The Advanced Polymer Solutions segment posted an EBITDA of $125 million, down from $135 million in the year-ago quarter. The downside was caused by a decline in the euro compared with the U.S. dollar exchange rate.
EBITDA in the Intermediates and Derivatives segment surged 200% on a year-over-year basis to $546 million. Propylene Oxide & Derivatives results increased, driven by improved margins and volumes owing to strong demand and market tightness.
The Refining segment reported EBITDA of $148 million in the quarter against a loss of $110 million in the year-ago quarter. The increase was driven by higher crude throughput led by strong demand for refined products.
The Technology segment’s EBITDA was $103 million in the reported quarter, up 9.6% year over year. The upside was due to increased catalyst volume, partly offset by reduced catalyst margin due to unfavorable euro versus the U.S. dollar exchange rate.
Financials
For the first quarter, LyondellBasell had cash from operating activities of $1.5 billion.
The company returned $0.6 billion to shareholders through dividends and the repurchase of roughly 2.1 million shares in the quarter.
Outlook
The company stated that it expects certain improvements in summer seasonal demand to extend market strength for its products as the global economy continues to navigate geopolitical uncertainty and volatile costs for energy and feedstocks.
Outside China, it projects benefits from sustained demand for consumer packaging, higher volumes for automotive polymer compounds, seasonal demand for durable goods utilized in building and construction markets, as well as strong markets for its oxyfuels products. It anticipates a favorable outlook for its refining segment before exiting the business by the end of 2023.
In the second quarter, LyondellBasell's margins are projected to improve led by prices for products catching up with increased feedstock and energy costs.
Price Performance
Shares of LyondellBasell have gained 2.3% in the past year against a 3.9% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
LyondellBasell currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 78.6% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 47.3% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.4% over a year.