LyondellBasell Reports Mixed Q4 Results

LyondellBasell Industries (NYSE: LYB) reported mixed Q4 results, topping revenues estimates, but fell short of earnings expectations. Shares of the multinational chemical company gained 0.24% on January 28 to close at $96.08.

Q4 Numbers

Adjusted earnings of $3.63 per share grew 65.8% year-over-year significantly, but fell short of analysts’ expectations of $4.07 per share. The company reported adjusted earnings of $2.19 per share for the prior-year period.

Aided by robust demand and the company’s recent growth investments, revenues jumped to $12.83 billion and exceeded consensus estimates of $11.98 billion.

CEO Comments

Looking ahead into FY2022, the Interim CEO of LyondellBasell, Ken Lane, commented, “As vaccinations facilitate a more sustainable global reopening and supply chains normalize, LyondellBasell’s businesses should benefit from increased demand for both goods and services.  We are closely monitoring rising feedstock and energy costs, particularly at our European operations. ”

He further added, “LyondellBasell’s earnings and cash flows are stepping up from levels seen over the last decade.  We are expanding our production with the commissioning of new facilities in China and the U.S. during 2022.  With our new CEO Peter Vanacker joining the company at the end of the second quarter, LyondellBasell is well poised to continue delivering on our track record of substantial cash generation and strong returns for shareholders.”

Wall Street’s Take

Following Q4 results, Alembic Global analyst Hassan Ahmed maintained a Buy rating on LyondellBasell, with a price target of $120 (24.9% upside potential).

The rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 5 Buys and 9 Holds. The average LyondellBasell price target of $109.64 implies 14.11% upside potential to current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on LYB stock, compared to a sector average of 67%.

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