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LyondellBasell (LYB) Q2 Earnings Beat Estimates, Sales Lag
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LyondellBasell Industries N.V. (LYB - Free Report) recorded a second-quarter 2024 profit of $924 million or $2.82 per share, reflecting an increase of 29.2% from $715 million or $2.18 per share reported a year ago.
LYB posted adjusted earnings of $2.24 per share, down 8.2% from the year-ago quarter figure of $2.44. However, adjusted earnings surpassed the Zacks Consensus Estimate of $2.23.
The company’s net sales in the second quarter were $10,558 million, which lagged the Zacks Consensus Estimate of $10,672.2 million. Net sales increased around 2.5% from $10,306 million in the prior-year quarter. Sales grew due to increased volumes driven by higher production and improved seasonal demand.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
In the reported quarter, the Olefins & Polyolefins — Americas division experienced a year-over-year decrease in EBITDA of approximately 1.3% to $670 million. The decline was attributed to lower polyolefin margins. The segment's revenues amounted to $2,926 million, topping the consensus estimate of $2,883.1 million.
Similarly, Olefins & Polyolefins — Europe, Asia, the international segment witnessed a decline in EBITDA to $70 million from $84 million in the prior-year quarter. Lower margins in the olefins business, caused by higher feedstock costs, resulted in this decrease. The segment's revenues reached $2,842 million, above the consensus estimate of $2,675.6 million.
In the Intermediates and Derivatives segment, EBITDA increased approximately 68.2% year over year to $794 million. This rise was due to increased propylene oxide and derivatives results due to improved demand. Sales were $2,795 million, missing the consensus estimate of $2,807.8 million.
The Advanced Polymer Solutions segment's EBITDA was $40 million, up from $34 million in the prior-year quarter, primarily due to higher volumes. The segment's revenues were $948 million, below the consensus estimate of $990.1 million.
In the Refining segment, EBITDA declined around 88.8% from the year-ago quarter to a loss of $7 million. Sales for the unit were $2,345 million, surpassing the consensus estimate of $2,125 million.
The Technology segment's EBITDA for the reported quarter was $84 million, up approximately 6.3% year over year. The increase was attributed to higher licensing revenues. The segment's revenues were $159 million, higher than the consensus estimate of $155.2 million.
Financials
LyondellBasell generated $1.3 billion in cash from operating activities during the quarter. The company returned $513 million as dividends and share repurchases during the quarter. It spent $484 million on capital expenditures in the second quarter.
Outlook
For the third quarter, LyondellBasell anticipates margins to gain from the lower costs of natural gas and natural gas liquids used in its North American and Middle Eastern production against higher oil-based expenses in most other locations. With the ongoing summer driving season, oxyfuel margins are projected to stay higher than historical levels because of high octane premiums.
LYB intends to operate its assets in line with market demand in the third quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 80% for European O&P assets and 75% for Intermediates & Derivatives.
Price Performance
Shares of LyondellBasell have gained 1.8% in the past year against a 6.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
LYB currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 26 cents. GOLD beat the consensus in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 0.8% in the past year.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 107% in the past year.
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LyondellBasell (LYB) Q2 Earnings Beat Estimates, Sales Lag
LyondellBasell Industries N.V. (LYB - Free Report) recorded a second-quarter 2024 profit of $924 million or $2.82 per share, reflecting an increase of 29.2% from $715 million or $2.18 per share reported a year ago.
LYB posted adjusted earnings of $2.24 per share, down 8.2% from the year-ago quarter figure of $2.44. However, adjusted earnings surpassed the Zacks Consensus Estimate of $2.23.
The company’s net sales in the second quarter were $10,558 million, which lagged the Zacks Consensus Estimate of $10,672.2 million. Net sales increased around 2.5% from $10,306 million in the prior-year quarter. Sales grew due to increased volumes driven by higher production and improved seasonal demand.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
LyondellBasell Industries N.V. price-consensus-eps-surprise-chart | LyondellBasell Industries N.V. Quote
Segment Highlights
In the reported quarter, the Olefins & Polyolefins — Americas division experienced a year-over-year decrease in EBITDA of approximately 1.3% to $670 million. The decline was attributed to lower polyolefin margins. The segment's revenues amounted to $2,926 million, topping the consensus estimate of $2,883.1 million.
Similarly, Olefins & Polyolefins — Europe, Asia, the international segment witnessed a decline in EBITDA to $70 million from $84 million in the prior-year quarter. Lower margins in the olefins business, caused by higher feedstock costs, resulted in this decrease. The segment's revenues reached $2,842 million, above the consensus estimate of $2,675.6 million.
In the Intermediates and Derivatives segment, EBITDA increased approximately 68.2% year over year to $794 million. This rise was due to increased propylene oxide and derivatives results due to improved demand. Sales were $2,795 million, missing the consensus estimate of $2,807.8 million.
The Advanced Polymer Solutions segment's EBITDA was $40 million, up from $34 million in the prior-year quarter, primarily due to higher volumes. The segment's revenues were $948 million, below the consensus estimate of $990.1 million.
In the Refining segment, EBITDA declined around 88.8% from the year-ago quarter to a loss of $7 million. Sales for the unit were $2,345 million, surpassing the consensus estimate of $2,125 million.
The Technology segment's EBITDA for the reported quarter was $84 million, up approximately 6.3% year over year. The increase was attributed to higher licensing revenues. The segment's revenues were $159 million, higher than the consensus estimate of $155.2 million.
Financials
LyondellBasell generated $1.3 billion in cash from operating activities during the quarter. The company returned $513 million as dividends and share repurchases during the quarter. It spent $484 million on capital expenditures in the second quarter.
Outlook
For the third quarter, LyondellBasell anticipates margins to gain from the lower costs of natural gas and natural gas liquids used in its North American and Middle Eastern production against higher oil-based expenses in most other locations. With the ongoing summer driving season, oxyfuel margins are projected to stay higher than historical levels because of high octane premiums.
LYB intends to operate its assets in line with market demand in the third quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 80% for European O&P assets and 75% for Intermediates & Derivatives.
Price Performance
Shares of LyondellBasell have gained 1.8% in the past year against a 6.6% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
LYB currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks worth a look in the basic materials space include Barrick Gold Corporation (GOLD - Free Report) , Hecla Mining Company (HL - Free Report) and SilverCrest Metals Inc. (SILV - Free Report) .
Barrick is slated to report second-quarter results on Aug 12, before market open. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 26 cents. GOLD beat the consensus in each of the last four quarters, with the average earnings surprise being 18.3%. GOLD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hecla, carrying a Zacks Rank #1, is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for Hecla's second-quarter earnings is pegged at a penny per share. The stock has gained nearly 0.8% in the past year.
SilverCrest will report results for the second quarter on Aug 7. The Zacks Consensus Estimate for its second-year earnings is pegged at 17 cents. SILV, a Zacks Rank #2 stock, beat the consensus in each of the last four quarters, with the average earnings surprise being 42.4%. The stock has surged nearly 107% in the past year.