LyondellBasell Industries N.V. LYB incurred fourth-quarter 2024 loss of $603 million or $1.87 per share. This is in contrast to the year-ago quarter's profit of $185 million or 56 cents.

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LYB posted adjusted earnings of 75 cents, down from the year-ago quarter figure of $1.26. The bottom line matched the Zacks Consensus Estimate.

The company’s net sales in the fourth quarter were $9,497 million, which beat the Zacks Consensus Estimate of $9,364.9 million. Net sales decreased around 4.4% from $9,929 million in the prior-year quarter.

During the fourth quarter, LYB’s businesses delivered strong cash performance amid difficult market conditions.

LYB’s Segment Highlights

In the Olefins & Polyolefins — Americas division, revenues decreased roughly 3.8% year over year to $2,754 million in the reported quarter. This lagged the Zacks Consensus Estimate of $2,763.8 million.

The Olefins & Polyolefins — Europe, Asia, the international segment recorded revenues of $2,471 million, up from the prior-year quarter levels of $2,412 million. This lagged the Zacks Consensus Estimate of $2,713.4 million.

The Advanced Polymer Solutions segment posted revenues of $825 million, down around 2% from the year-ago quarter. This lagged the Zacks Consensus Estimate of $929 million.

Revenues in the Intermediates and Derivatives segment decreased around 11.4% on a year-over-year basis to $2,357 million. This lagged the Zacks Consensus Estimate of $2,520.2 million.

The Refining segment reported revenues of $2,070 million in the reported quarter, down around 13.8% from the year-ago quarter. This surpassed the Zacks Consensus Estimate of $1,813.3 million.

The Technology segment’s revenues were $174 million in the reported quarter, up around 14.5% year over year. This beat the Zacks Consensus Estimate of $150.9 million.

LYB’s FY24 Results

Adjusted earnings for full-year 2024 were $6.40 per share compared with $8.65 a year ago. Net sales declined around 1.9% to $40,302 million.

LYB’s Financials

LYB generated $3.8 billion in cash from its operations in 2024. The company remains dedicated to its capital allocation strategy. In 2024, about $1.8 billion was reinvested in the business through capital expenditures, with $1.9 billion returned to shareholders via quarterly dividends and share repurchases. At year-end, the company's balance sheet was healthy and investment-grade, with $8 billion of available liquidity, including $3.4 billion in cash and cash equivalent.

LYB’s Outlook

LYB remains geared up for the macroeconomic drivers that will eventually spur supply chain replenishment, increase demand for durable goods and aid a more widespread economic recovery. One sign of recovery is that North American domestic demand for polyolefins returned in 2024, following two years of declines. The company anticipates seasonal demand gains across most product categories in the first quarter. Interest rate cuts, inflation moderation and pent-up demand will also foster increasing consumption of durable goods, which is expected to boost the company's polypropylene and Intermediates and Derivatives businesses. Increased driving and summertime gasoline requirements are projected to result in usual seasonal increases in oxyfuels margins.

LYB’s Stock Price Performance

Shares of LyondellBasell have lost 19.1% in the past year compared with 0.4% decline of the industry.

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LYB’s Zacks Rank & Key Picks

LYB currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd.  ICL, Hecla Mining Company HL and Ingevity Corporation NGVT.

ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hecla Mining is expected to report fourth-quarter results on Feb. 12. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.

Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%. 

 

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