LyondellBasell Industries N.V.’s (NYSE:LYB) net profits rose 54.5% year over year to $1.2 billion or $3.11 per share in the first quarter of 2018. Earnings per share surpassed the Zacks Consensus Estimate of $2.80.
Celanese Corporation (CE): Free Stock Analysis Report
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LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report
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Zacks Investment Research
Revenues increased roughly 15.9% year over year to $9,767 million in the quarter, beating the Zacks Consensus Estimate of $9,392 million.
Consolidated EBITDA rose around 18.3% year over year to $1,913 million in the quarter. Higher margins and the company’s organic and inorganic growth initiatives contributed to the results.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
Segment Review
In the Olefins & Polyolefins — Americas division, EBITDA rose around 7.9% year over year to $780 million. Olefin results declined roughly $70 million year over year on lower volumes. Polyolefins results increased by around $155 million, mainly due to polyethylene and polypropylene spread improvements.
The Olefins & Polyolefins — Europe, Asia, International segment witnessed a decline in EBITDA of around 2.1% year over year to $518 million. Olefin results decreased $20 million on a year-over-year basis. Polyolefins results decreased by around $60 million, mainly due to lower margin.
EBITDA in the Intermediates and Derivatives segment went up roughly 43.4% year over year to $486 million.
In the Refining segment, EBITDA was $63 million in the quarter as against a loss of $30 million in the year-ago quarter. Crude throughput rose by 59,000 barrels per day in the quarter.
The Technology segment’s EBITDA fell 6.7% year over year to $56 million.
Financials
LyondellBasell ended the quarter with cash and liquid investments of $3.5 billion.
LyondellBasell repurchased 1.3 million shares in the first quarter of 2018 with 393 million shares remaining outstanding at the end of the quarter. The company paid dividend worth $395 million in the quarter.
Outlook
The company sees seasonal margin improvements in oxyfuels and refining. It also expects to benefit from continued high operating rates in the second quarter. The imbalance between ethylene production and consumption is expected to improve as the downstream derivative units attain full operating rates, the company noted. Strong global demand and higher oil prices continue to support strong polyolefin pricing, LyondellBasell added.
Price Performance
Shares of LyondellBasell have moved up 21.8% over a year, outperforming the industry’s 8.4% gain.
Zacks Rank & Stocks to Consider
LyondellBasell carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic material space are Kronos Worldwide Inc. (NYSE:KRO) , Celanese Corporation (NYSE:CE) and Arkema S.A. (OTC:ARKAY) .
Kronos has an expected long-term earnings growth of 5% and sports a Zacks Rank #1 (Strong Buy). Its shares have gained 36.2% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth of 8.9% and flaunts a Zacks Rank #1. Its shares have moved up 26.3% over a year.
Arkema has an expected long-term earnings growth of 7.9% and carries a Zacks Rank #2. Its shares have gained 24.6% over a year.
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Celanese Corporation (CE): Free Stock Analysis Report
Kronos Worldwide Inc (KRO): Free Stock Analysis Report
Arkema SA (ARKAY): Free Stock Analysis Report
LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report
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