LyondellBasell Industries (LYB) Tops Q3 EPS by 15c

October 30, 2020 6:33 AM

LyondellBasell Industries (NYSE: LYB) reported Q3 EPS of $1.27, $0.15 better than the analyst estimate of $1.12. Revenue for the quarter came in at $6.78 billion versus the consensus estimate of $6.73 billion.


"Recovery in global economies should continue to benefit the petrochemical industry. Despite the backdrop of both the pandemic and a recession, we expect global polyethylene demand to grow for the full year. China continues to have a 40% polyethylene trade deficit which supports North American exports and tightens the U.S. domestic market. We expect continued strength in North American integrated polyethylene margins during the fourth quarter, perhaps with some seasonal moderation by the end of the year. Stubbornly slow recovery in global mobility is weighing on demand for gasoline and jet fuel which will prolong headwinds for our Refining and Oxyfuels & Related Products businesses. Our order books show increased demand from automotive manufacturing and other durable goods markets that should continue to propel further improvement for our Advanced Polymer Solutions segment."

"After several years of advancing on our value-driven growth strategy, LyondellBasell is poised to reap the rewards of our investments as our industry benefits from a recovering economy. In October, we announced a new integrated polyethylene joint venture with Sasol in Louisiana. This partnership represents another measured approach to extend one of our core businesses and increase free cash flow. Our new Hyperzone polyethylene capacity, several expansions across our joint venture network and the integration of our A. Schulman acquisition should all add to LyondellBasell's growing cash flow over the coming years. We remain committed to an investment grade balance sheet while focusing on funding our dividend with cash from operations. Upon closing of the transaction for the Louisiana joint venture, we will prioritize debt repayment over share repurchases. We believe LyondellBasell's leading portfolio, advantaged positions and disciplined capital deployment strategy will enable us to harvest profitability, increase free cash flow and emerge from this downturn stronger than before," Patel said

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