LyondellBasell Industries N.V. Earnings Cheat Sheet: Higher-Than-Expected Net Income

LyondellBasell Industries N.V. (NYSE:LYB) reported net income above Wall Street’s expectations for the third quarter. Lyondellbasell Industries is an independent chemical company. It is a producer of polypropylene and polypropylene compounds (PP compounds) and a producer of propylene oxide (PO), polyethylene (PE), ethylene, and propylene.

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LyondellBasell Industries Earnings Cheat Sheet for the Third Quarter

Results: Net income for LyondellBasell Industries N.V. rose to $895 million ($1.51 per share) vs. $467 million (84 cents per share) in the same quarter a year earlier. This marks a rise of 92% from the year earlier quarter.

Revenue: Rose 29.1% to $13.3 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: LYB beat the mean analyst estimate of $1.26 per share.

Quoting Management: “We earned $895 million during the third quarter and eclipsed our previous record quarterly net income set last quarter. EBITDA during the quarter was nearly $1.8 billion – also a record,” said Jim Gallogly, LyondellBasell Chief Executive Officer. “In U.S. olefins, we benefited from both very strong ethane- and naphtha-based ethylene margins. Our Midwest ethylene plants were especially advantaged.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 28 cents in the second quarter, by 48 cents in the first quarter, and by 61 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.04 a share to 92 cents over the last sixty days. The average estimate for the fiscal year is $4.78 per share, a rise from $4.47 ninety days ago.

Competitors to Watch: TPC Group, Inc. (NASDAQ:TPCG), BASF SE (BASFY), Braskem SA (NYSE:BAK), Sasol Limited (NYSE:SSL), Westlake Chemical Corp. (NYSE:WLK), W.R. Grace & Co. (NYSE:GRA), The Dow Chemical Company (NYSE:DOW), Repsol YPF, S.A. (REPYY), and Sinopec Shanghai Petrochemical Co. (NYSE:SHI).

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(Source: Xignite Financials)