LyondellBasell Industries N.V. LYB stated that it has signed a power purchase agreement (PPA) with Eneco N.V.  This PPA brings LYB's total secured renewable power capacity to 100% of its renewable electricity procurement goal.

LYB's electricity consumption constitutes approximately 15% of its 2020 baseline scope 1 and 2 greenhouse gas emissions. The company's objective of obtaining at least 50% of its electricity from renewable sources by 2030 is based on 2020 procurement levels.

Under the 15-year PPA, LYB will receive 25 megawatts of renewable electricity generation capacity from the Hollandse Kust West VI (HKW-VI) ecology plot offshore wind farm in the North Sea of the Netherlands. 

Eneco will provide LYB with about 103 gigawatt-hours of offshore wind electricity per year beginning in 2027. This is equivalent to the annual electricity consumption of almost 28,500 European houses. The offshore wind park will be among the largest of its kind in the Netherlands.

Shares of LyondellBasell have gained 2.6% over the past year compared with a 1% rise of its industry.

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For the third quarter, LyondellBasell expects margins 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 increased octane premiums. 

LYB intends to operate its assets in line with market demand in the third quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 80% for European O&P assets and 75% for Intermediates & Derivatives.

Zacks Rank & Key Picks

LYB currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN. 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 111.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.40 per share, indicating a year-over-year rise of 145.6%. The Zacks Consensus Estimate for EGO's current-year earnings has been going up in the past 30 days. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 71.6% in the past year.

The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, a Zacks Rank #2 (Buy) stock, has rallied around 99.1% in the past year.

 

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