LydonellBasell Falls Shy of Estimates
LyondellBasell Industries, NV (NYSE: LYB – $78.21) said results in its recently completed quarter were hurt by operating disruptions and a heavy planned maintenance schedule. The Dutch chemicals-and-polymer producer provides compounds found in products ranging from electronics to construction materials and biofuels. Lyondell, with its U.S. headquarters in Houston, said its North American olefins and polyolefins business results were hurt by a heavy planned maintenance schedule and experienced continued strong demand. The company said operating disruptions impacted its refining business. Olefins and polyolefins, the segment that produces products such as ethylene and represents – a majority of the company’s top line – reported an 6.9% fall in revenue in the Americas and a 10% decline in revenue in the rest of the world. Its intermediates and derivatives segment reported a 11% decrease in revenue. Its refining unit reported a 21% fall in revenue. n all, the company reported earnings of $952 million, or $2.30 a share, down from $1.19 billion, or $2.54 a share, a year prior. Excluding certain items, per-share earnings were $2.31 a share. Revenue fell 12% to $7.37 billion from the prior year. Analysts had expected adjusted earnings of $2.32 a share on revenue of $7.38 billion.
Long-term investors willing to assume some risk may find LYB shares of interest. The generous and growing dividend yielding 4.3% is well above the market average, and the recent price pullback accentuates this issue’s longer-term total return potential.