- Lyondell derives 50% of its profit from its US segment of olefins and polyolefins.
- Thanks to the booming production of natural gas liquids (NGLs) in the US, the production cost of Lyondell has been reduced by more than 50% in the last two years.
- At the same time, the selling price of its products has remained essentially flat. This has resulted in record earnings for the company.
- Given the low P/E, the above growth coupled with the aggressive share buyback program that will eliminate 10% of outstanding shares in 12 months is very promising for the stock.