LyondellBasell shares jump after beating Q3 earnings expectations

Investing.com -- LyondellBasell Industries (NYSE: LYB) reported third-quarter earnings that exceeded analyst expectations, sending shares 7% higher in premarket trading.

The petrochemical giant posted adjusted earnings of $1.01 per share for the third quarter, significantly above the analyst consensus of $0.80 per share. Revenue reached $7.73 billion, surpassing the $7.39 billion analysts had expected and demonstrating the company’s operational resilience despite industry headwinds.

LyondellBasell’s strong performance comes despite reporting a net loss of $890 million, or $2.77 per share, which included $1.2 billion in non-cash asset write-downs and other identified items. Excluding these items, the company generated $835 million in EBITDA during the quarter.

"LYB continues to navigate a challenging market environment while remaining focused on delivering long-term value," said Peter Vanacker, LyondellBasell’s CEO. "Our Cash Improvement Plan is on track to achieve our $600 million target in 2025 and a minimum of $1.1 billion by the end of 2026."

The company demonstrated strong cash generation with $983 million from operating activities and a cash conversion rate of 135% during the quarter. LyondellBasell returned $443 million to shareholders through dividends while maintaining a solid liquidity position of $6.5 billion.

Improved profitability in the Olefins and Polyolefins Americas segment was supported by increased olefins margins and higher sales volumes following successful turnarounds at the company’s Channelview, Texas facility. The Intermediates and Derivatives segment benefited from increased octane blend premiums and lower butane raw material costs.

Looking ahead, LyondellBasell expects year-end seasonality and lower operating rates to impact fourth-quarter results across most businesses. The company plans to idle its larger cracker in Wesseling, Germany and one propylene oxide/styrene monomer unit in Channelview, Texas for maintenance while aligning production with global demand.

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