LyondellBasell to Report Q3 Earnings: What's in Store for the Stock?
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LyondellBasell Industries N.V. LYB is scheduled to report third-quarter 2024 earnings on Nov. 1, before the opening bell.
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The company surpassed the Zacks Consensus Estimate in three of the last four quarters and missed once, the average earnings surprise being around 7.5%. LYB delivered a positive earnings surprise of 0.5% in the last reported quarter.
LyondellBasell’s third-quarter performance is likely to have benefited from favorable demand and lower feedstock and energy costs amid headwinds associated with Hurricane Beryl.
LYB stock has lost 3.2% in the past year against the Zacks Chemicals Diversified industry’s 6.7% rise.
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Let’s see how things are shaping up for this announcement.
What Do LYB’s Revenue Estimates Say?
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $10,271.8 million, indicating a decline of around 3.3% from the previous year’s level.
For the Olefins and Polyolefins – Americas division, the consensus estimate stands at $3,036.3 million, suggesting a year-over-year increase of 5.4%.
The same for the Olefins and Polyolefins – Europe, Asia & International division is pegged at $2,810.4 million, calling for a 14.9% increase from last year’s tally.
For LYB’s Advanced Polymer Solutions segment, the Zacks Consensus Estimate for third-quarter revenues is $964.7 million, suggesting a 7.3% rise year over year.
The consensus estimate for the Intermediaries and Derivatives segment’s revenues is pinned at $2,896 million, suggesting a 6% decrease from the previous year’s levels.
The Zacks Consensus Estimate for the Refining segment's revenues is pegged at $1,764.9 million, indicating a decline of 33.8%. The same for the Technology segment's revenues is pegged at $177.8 million, suggesting an 18.4% decline from the year-ago figure.
Factors at Play for LYB Stock
LYB’s third-quarter performance is likely to have benefited from continued strong seasonal demand in the Olefins and Polyolefins – Americas unit. Margins in this segment are expected to have been supported by lower feedstock and energy costs. Demand for olefins and polyolefins is also likely to have been stable in the Europe, Asia & International division. In the Intermediaries and Derivatives unit, LYB is seeing strong oxyfuels margins amid the summer driving season, which is expected to have continued in the September quarter. Margins are also likely to have been aided by lower raw material costs. The company’s strategic actions are expected to have supported volumes in Advanced Polymer Solutions. The Technology segment is likely to have benefited from higher licensing revenues.
LYB, on its second-quarter call, stated that it anticipates margins, in the third quarter, to gain from the lower costs of natural gas and natural gas liquids used in its North American and Middle Eastern production against higher oil-based expenses in most other locations. With the ongoing summer driving season, oxyfuel margins are projected to stay higher than historical levels because of high octane premiums.
The unfavorable impacts of Hurricane Beryl are expected to reflect on LYB’s third-quarter performance. The storm impacted the company’s operations across the U.S. Gulf Coast in early July. LYB expects downtime associated with Hurricane Beryl to impact its EBITDA by roughly $65 million in the third quarter, with about 75% of the impact expected in the Olefins and Polyolefins – Americas division.