LyondellBasell Industries’ (NYSE:LYB) net profits from continuing operations, as reported, rose more than two-fold year over year to $1.9 billion or $4.80 per share in the fourth quarter of 2017. Barring a non-cash benefit from the U.S. tax reform of $2.07 per share, adjusted earnings came in at $2.73 per share for the quarter, beating the Zacks Consensus Estimate of $2.52.
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LyondellBasell Industries NV (LYB): Free Stock Analysis Report
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Revenues increased roughly 17.9% year over year to $9,135 million in the quarter, beating the Zacks Consensus Estimate of $8,785 million.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose around 22.8% year over year to $1,726 million in the quarter.
FY17 Results
For 2017, the company posted profits of $4.9 billion or $12.28 per share, up 27.2% from $3.8 billion or $9.15 per share a year ago.
Additionally, LyondellBasell reported revenues of $34.5 billion in 2017, up around 18.2% from $29.2 billion in 2016.
LyondellBasell Industries NV Price, Consensus and EPS Surprise
Segment Review
Revenues from the Olefins & Polyolefins — Americas division improved 16.2% year over year to $2,800 million in the reported quarter. EBITDA, on a reported basis, rose around 39.3% year over year to $784 million. Olefin results increased roughly $100 million year over year. Improved co-product pricing led to an improvement in ethylene margins.
Sales from the Olefins & Polyolefins — Europe, Asia, International segment rose around 16.4% year over year to $3,079 million. EBITDA fell around 10.6% year over year to $356 million. Olefin results were essentially unchanged on a year over year basis. Polyolefins results decreased by around $25 million, mainly due to lower polyethylene margin.
Intermediates and Derivatives segment sales were up 14.4% to $2,231 million in the reported quarter. EBITDA went up roughly 34% year over year to $410 million.
Revenues from the Refining segment increased 35.3% to $2,112 million. EBITDA was up 28.4% to $104 million in the quarter. Throughput rose by 17,000 barrels per day in the quarter.
The Technology segment’s sales rose roughly 7.8% to $125 million. EBITDA rose 11.5% year over year to $68 million.
Financials
LyondellBasell ended the quarter with cash and cash equivalents of $1,523 million, up 74.1% year over year. Long-term debt rose to $8,549 million from $8,385 million a year ago.
LyondellBasell repurchased 10 million shares in 2017 with 395 million shares remaining outstanding at the end of the year. The company paid dividend worth $1.4 billion in the year.
Outlook
LyondellBasell noted that strong global demand and delays in capacity additions across the industry have led to improved outlook for 2018. The company intends to realize the benefits of strong operating rates across its global portfolio of assets and continue the upward trajectory in profitability for the Houston refinery.
Price Performance
Shares of LyondellBasell have moved up 32.5% in the past six months, outperforming the industry’s 16.2% gain.
Zacks Rank & Stocks to Consider
LyondellBasell carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space are Air Products and Chemicals Inc. (NYSE:APD) , Huntsman Corporation (NYSE:HUN) and BASF SE (OTC:BASFY) .
Air Products has an expected long-term earnings growth of 14.1% and a Zacks Rank #1 (Strong Buy). Its shares have rallied 19% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huntsman has an expected long-term earnings growth of 8.3% and a Zacks Rank #2 (Buy). Its shares have rallied 65.1% in a year.
BASF has an expected long-term earnings growth of 8.9% and a Zacks Rank #2. Its shares have gained 20% over a year.
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BASF SE (BASFY): Free Stock Analysis Report
Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report
Huntsman Corporation (HUN): Free Stock Analysis Report
LyondellBasell Industries NV (LYB): Free Stock Analysis Report
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