LyondellBasell Q3 adjusted EPS misses estimates

Overview

• Global chemical producer's Q3 revenue rose yr/yr to $8.5 bln

• Adjusted EPS for Q3 slightly missed analyst expectations

• Company benefited from higher profitability in Intermediates and Derivatives, especially oxyfuels

Outlook

• Company expects Middle East conditions to remain fluid, with recovery likely to be gradual

• LyondellBasell expects normal seasonal demand and ongoing supply uncertainty in Q4

• Company expects Q4 operating rates: 85% for North American O&P, 60% for European O&P, 75% for I&D

Result Drivers

• PORTFOLIO FLEXIBILITY - Co said optimizing feedstocks, targeting attractive markets and adjusting operating rates supported results

• OXYFUELS AND DERIVATIVES - Co cited strong oxyfuels margins and higher Intermediates and Derivatives profitability as key drivers

• COST DISCIPLINE - Co said ongoing focus on cost discipline and operational reliability helped maintain margins

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and 4 "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 N.V. is $66.00, about 1% below its October 29 closing price of $65.37

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Oct 29 - Eastman Chemical Q3 revenue, profit miss analyst estimates on higher costs

• Oct 29 - Olin Q3 revenue misses estimates; sees lower Q4 adjusted EBITDA

• Oct 29 - Germany's Wacker Chemie Q3 EBITDA nearly doubles on cost savings

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)