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LyondellBasell limps to weak Q4 amid broadly lower chemical margins

Jan. 31, 2020 9:20 AM ETLyondellBasell Industries N.V. (LYB)LYBBy: Carl Surran, SA News Editor5 Comments
  • LyondellBasell (NYSE:LYB) -3.2% pre-market after posting sharp misses on Q4 earnings and revenues, which fell 8% Y/Y to $8.18B, as margins within most of its businesses were hurt by slow industrial demand and typical seasonality.
  • Q4 EBITDA fell to $1.17B from $1.51B in Q3, although the company said its Technology segment achieved record quarterly and annual EBITDA of $138M and $411M, respectively.
  • Q4 EBITDA in the Olefins & Polyolefins - Americas segment fell 21% Y/Y to $498M amid broad declines in margins, particularly in polyethylene with a spread decrease over ethylene of more than $130/ton.
  • Intermediates & Derivatives EBITDA fell 13% Y/Y to $329M, driven by lower margins due to sales mix.
  • Capital spending totaled $731M for Q4 and $2.7B for the full year.
  • "We anticipate typical seasonal improvements for our businesses as we progress through" Q2 and Q3, the company said.

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Comments (5)

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Tiki Bar Capital profile picture
The industrial recession is obviously taking a major toll on LYB. Not a surprise, really.

Question is whether we are at a bottom in the industrial recession and ready to inflect higher. Coronovirus impacts industrials and complicates the outlook.

I like the prices on stocks like LYB and DOW at the moment. Maybe they go lower. But the setup is starting to get tempting again.
Yeah Tiki, the toll on LYB is growing. I bailed on the stock a couple months back after holding for 5 years. Barely made a profit. When a company freezes the dividend in lieu of buying back stock. it's a sell for me. Also Patel took home close to $19 Million for 2018, as the stock tanked. Another reason to bail when the CEO gets to rake in the dough, while the stock goes nowhere. It might be tempting like you say, but I'll rather wait for more carnage in the industrial stocks. and apply more money there.

WHR, and SNA are getting closer to my buy in prices, and still waiting for CAT, CMI, MMM, HON to tank more before buying. Those 6 will be bought @3% per stock in my portfolio. Sold out of CMI @$167 from $125 buy in.

About time this market starts to trade on valuations again.

Just can't get too excited with LYB or DOW at the moment, and checking out CBT as well.
Tiki Bar Capital profile picture
@hangloose Hawaii -- I hear you. I'm holding my fire for now. The industrials look like they need another leg down. Coronavirus will inflict a lot more pain than current estimates for 2020 have accounted for.
cyrano13 profile picture
fossil fuels & plastics slow but certain death
Sure - everything goes in 12 years or maybe 10 years depending on Sanders or Warren. We need new battery energized robots to measure the results in our absence.
Cheers !

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