LyondellBasell reports lower Q4 revenue

Overview

• Chemical producer's Q4 revenue declined amid challenging market conditions

• Adjusted EPS for Q4 missed analyst expectations

• Company exceeded 2025 Cash Improvement Plan target by $200 mln

Outlook

• LyondellBasell plans to operate Olefins & Polyolefins Americas assets at 85% in Q1

• Company increases Cash Improvement Plan target to $1.3 bln by end of 2026

• LyondellBasell expects improved demand in Europe as Q1 unfolds

Result Drivers

• HIGHER FEEDSTOCK COSTS - Margins declined due to higher costs for NGL feedstocks and natural gas, along with increased maintenance activities and lower seasonal demand

• CASH IMPROVEMENT PLAN - Exceeded 2025 target by $200 mln, achieving $800 mln, above the initial $600 mln goal

• OPERATIONAL EXCELLENCE - Focused on operational excellence and safety performance amid challenging conditions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 15 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for LyondellBasell Industries NV is $48.50, about 2.9% below its January 29 closing price of $49.95

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX6xz8hY

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