• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    2023 CEO Forum

    The 2023 Automotive Coatings Market

    Color Trends in the Paint and Coatings Industry

    2023 European Coatings Show EXHIBITOR SHOWCASE

    Industry is Looking Forward to the 2023 European Coatings Show
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    PPG Names Rodolfo Ramirez GM, Packaging Coatings

    Sherwin-Williams Unveils High Performance Interior Marine Decking Systems

    AkzoNobel Appoints Ricardo Rosso as Pontiac Site Manager

    Sherwin-Williams Publishes Sustainable Packaging White Paper

    Heubach Launches Automotive Styling Shades 2027
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Sherwin-Williams Wins Three AMPP Awards

    Norwegian Cruise Line Goes Biocide-Free with Nippon Paint Marine's AQUATERRAS

    Stahl Completes Acquisition of ICP Industrial Solutions Group

    The 2023 Automotive Coatings Market

    Color Trends in the Paint and Coatings Industry
    Additives
    Binders
    Pigments
    Solvents

    Pidilite Industries to Highlight Product Offerings at ECS

    OQ Chemicals Reduces CO2 Emissions at Bay City, Texas Plant by 10% in 2022

    Orion Debottlenecks Plant in Germany for High-Jetness Carbon Blacks

    Evonik Obtains Certification for VISIOMER Terra Biobased Methacrylates

    BASF Invests in Expansion of Polymer Dispersions Plant in Daya Bay, China
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Arkema

    Active Minerals

    EPS

    Clariant Additives

    Siltech Corporation
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Southern Society for Coatings Technology Annual Meeting and Technology Conference

    Eastern Coatings Show

    CPCA Annual Conference

    66th Annual Sink or Swim

    Middle East Coatings Show
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Arkema

    Active Minerals

    EPS

    Clariant Additives

    Siltech Corporation
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    LyondellBasell Industries (LYB) - Analyst Comments on 3Q17 Results

    ...

    LyondellBasell Industries (LYB) - Analyst Comments on 3Q17 Results
    10.27.17
    LyondellBasell Industries (LYB: Buy, $106 PT) 
    Recurring Results In-Line Despite Larger Harvey Headwind

    • Lyondell 3Q EPS is a modest miss vs. consensus ex a gain on sale. LYB reported a headline adjusted 3Q17 EPS of $2.67, $0.29 ahead of our $2.38E and $0.22 better than the consensus of $2.45. That said, results include $108mn in pretax gains, or $0.27 per share, related to the sale of the Geosel business, which is non-recurring. Thus, we view a more appropriate adjusted EPS on the quarter to be $2.40A. We also remind investors that during the peak of Hurricane Harvey, Lyondell had over 70% of its US-based ethylene capacity either shut down or running at reduced rates. Accordingly, we cut our estimate into the quarter by $0.26 from $2.64 prior given the expected headwinds.  Indeed, the company is flagging $200mn in pretax, or roughly $0.35 per share, of hurricane-related headwinds, which remains in the adjusted numbers. Thus, we believe investors should give Lyondell a bit of a pass for the slight recurring EPS miss on the quarter, especially given the operating beat. Ex the Geosel sale, recurring operating EBITDA of $1.72bn is still ahead of the $1.7bn Street estimate and our $1.69bn. On a segment basis, O&P Americas (hurricane) and O&P-EAI missed vs. our estimates, while Intermediates & Derivatives and Refining came in ahead. Capital deployment on the quarter of $652mn looks to include roughly $280mn in share repurchases at an average price of ~$91.
    • Outlook reads positive. North American olefin margins were more or less flat sequentially in 3Q, but are expanding in 4Q thanks to strong polyethylene (PE) resin pricing following the elevated outages associated with Harvey.  Management noted that the downtime during the quarter, and requisite inventory rebuilding in 4Q, will keep the market tight, better positioning the industry to absorb capacity additions in 2018.
    • Olefins & Polyolefins (O&P) Americas and EAI miss. O&P Americas EBITDA of $616mn came in $0.11 below our $678mn and the Street at $708mn. As mentioned, this business saw significant disruptions due to Harvey with much of the company’s olefin and polyolefin complex suffering extended outages. However, PE resin prices responded to the lack of operable capacity, and the industry was able to secure a $0.03/lb increase in August with an additional $0.04 in September. Looking ahead, the industry has an additional $0.03 on the table for October as well, which we think ultimately gets accepted by the market. While we believe that the extent and duration of outages meant much of the industry did not fully participate in the improved 3Q price environment, these initiatives provide a positive backdrop for 4Q and early 2018. Across the pond, O&P-EAI earnings of $595mn (ex the Geosel sale) missed vs. our $640mn estimate and the Street at $613mn. Polyolefin sales volumes rallied 11% sequentially in Europe from 2Q levels, but unit margins declined by $0.04/lb, or 14%, in 3Q17, which was a bit larger than we had penciled in.  
    • Intermediates & Derivatives reports sequential gains. Segment EBITDA of $402mn came in well ahead of our $297mn as a margin of 19.2% beat our estimate by 330bps. We had lowered our numbers for I&D into the quarter given potential implications of Harvey.  And while the company flagged some production issues associated with the storm, the degree of caution we exercised was overdone in retrospect. Celanese posted impressive acetic acid profitability on the quarter and we suspect that Lyondell was able to benefit from these spreads as well. The company also benefited from better propylene oxide (PO) and oxyfuels volumes. As we look into 4Q, we continue to see some modest headwinds associated with MTBE C-Factor margins, though styrene and acetic acid should be favorable given price momentum.   
    • Refining profitability capitalizes on better cracks. In EPS terms, Refining segment EBITDA came in $0.08 ahead of the $12mn we had penciled in. Total throughput of 240kbpd declined 9.5% sequentially, driven by outages the company took due to Hurricane Harvey.  We estimate crack spreads improved 14% from 2Q levels however, largely given the regional outages, which enabled the stronger profit capture. These spreads have remained elevated exiting the quarter, which should bode well for 4Q performance especially given the rebound in production.
    • We rate shares of LYB Buy with a price target of $106. Our price target which suggests upside total return potential of 10%, including a dividend yield of 3.6%. As a reminder, our LYB price target is based on an average of two valuation frameworks; a relative EV/EBITDA multiple and a relative normalized P/E multiple. Our relative EV/EBITDA multiple uses a 3.0x discount to the group average multiple and reflects a stock price of $108, while our normalized P/E methodology reflects a warranted stock price of $104 based on our normalized EPS estimate and a multiple equal to a 30% discount to the sector average multiple.
    (Please see full report for details)
     
    Related Searches
    • environment
    Suggested For You
    Axalta Updates Financial Guidance Axalta Updates Financial Guidance
    Paint Specialist Flügger Maintains Momentum in Q1 2021-22 Paint Specialist Flügger Maintains Momentum in Q1 2021-22
    RPM to Announce Fiscal 2022 First-Quarter Results on Oct. 6 RPM to Announce Fiscal 2022 First-Quarter Results on Oct. 6
    PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages
    Teknos Aims for Continuous Reductions in Energy Consumption Teknos Aims for Continuous Reductions in Energy Consumption
    Nouryon to Build Bermocoll Facility in Southeast Asia to Meet  Demand in Coatings End-Market Nouryon to Build Bermocoll Facility in Southeast Asia to Meet Demand in Coatings End-Market
    AkzoNobel Share Buyback AkzoNobel Share Buyback
    LANXESS Completes Acquisition of Emerald Kalama Chemical LANXESS Completes Acquisition of Emerald Kalama Chemical
    Russian Coatings JSC Russian Coatings JSC
    Arkema Releases Second-quarter 2021 Results  Arkema Releases Second-quarter 2021 Results
    Axalta Releases Second Quarter 2021 Results Axalta Releases Second Quarter 2021 Results
    BASF Reports Strong Second Quarter BASF Reports Strong Second Quarter
    Russian Coatings Overcomes Challenges, Enjoys Growth in 2020 Russian Coatings Overcomes Challenges, Enjoys Growth in 2020
    RPM Reports Results for Fiscal 2021 Fourth Quarter, Full Year RPM Reports Results for Fiscal 2021 Fourth Quarter, Full Year
    AkzoNobel Grows Revenue 26%, Delivers €335 Million Adjusted Operating Income AkzoNobel Grows Revenue 26%, Delivers €335 Million Adjusted Operating Income

    Related Breaking News

    • Breaking News | Financial News | Market Trends & Forecast
      Axalta Updates Financial Guidance

      Axalta Updates Financial Guidance

      Axalta updates financial guidance to reflect ongoing impacts of customer supply chain shortages and raw material and logistics constraints.
      09.22.21

    • Breaking News | Financial News | Paint & Coatings Manufacturer News
      Paint Specialist Flügger Maintains Momentum in Q1 2021-22

      Paint Specialist Flügger Maintains Momentum in Q1 2021-22

      Sales were $766 million for the quarter, up 17% in the prior year period.
      09.21.21

    • Breaking News | Financial News
      RPM to Announce Fiscal 2022 First-Quarter Results on Oct. 6

      RPM to Announce Fiscal 2022 First-Quarter Results on Oct. 6

      The results will be issued via newswire and will also be available on RPM's website.
      09.17.21


    • Breaking News | Financial News
      PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

      PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

      PPG’s sales volumes are being impacted by the increasing disruptions in commodity supplies.
      09.07.21

    • Breaking News | Paint & Coatings Manufacturer News
      Teknos Aims for Continuous Reductions in Energy Consumption

      Teknos Aims for Continuous Reductions in Energy Consumption

      Coating manufacturer reduced its energy consumption by 13% in Denmark in relation to production.
      09.02.21

    Loading, Please Wait..
    Trending
    • Sherwin-Williams Unveils High Performance Interior Marine Decking Systems
    • Lots To See At The 2023 European Coatings Show!
    • Sherwin-Williams Publishes Sustainable Packaging White Paper
    • Scenes From The 2023 European Coatings Show
    • Heubach Launches Automotive Styling Shades 2027
    Breaking News
    • PPG Names Rodolfo Ramirez GM, Packaging Coatings
    • Sherwin-Williams Unveils High Performance Interior Marine Decking Systems
    • AkzoNobel Appoints Ricardo Rosso as Pontiac Site Manager
    • Sherwin-Williams Publishes Sustainable Packaging White Paper
    • Heubach Launches Automotive Styling Shades 2027
    View Breaking News >
    CURRENT ISSUE

    March 2023

    • 2023 CEO Forum
    • The 2023 Automotive Coatings Market
    • Color Trends in the Paint and Coatings Industry
    • 2023 European Coatings Show EXHIBITOR SHOWCASE
    • Industry is Looking Forward to the 2023 European Coatings Show
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Kemin Human Nutrition & Health Acquires Oral Health Ingredient
    Wiley Eliminates Outer Carton From Packaging to Reduce Waste
    ACG Expands as Vantage Nutrition Acquires ComboCap and its Dual-Chamber Capsule Technology
    Coatings World

    Latest Breaking News From Coatings World

    PPG Names Rodolfo Ramirez GM, Packaging Coatings
    Sherwin-Williams Unveils High Performance Interior Marine Decking Systems
    AkzoNobel Appoints Ricardo Rosso as Pontiac Site Manager
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Apply Now: Junkosha's Technology Innovator of the Year Awards 2023
    SIS Medical's OPN NC PTCA Dilatation Catheter Released in U.S.
    Digital Transformation Weighs Heavy in Medtech Regulatory Performance
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Thermo Fisher, Arsenal Biosciences Partner to Manufacture Autologous T-Cell Therapies
    Aquestive Therapeutics Expands Libervant License/Supply Agreement with Pharmanovia
    OncoVent, Orient EuroPharma Enter License Agreement for Oregovomab
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Sexual Wellness Brand Playground Recruits Christina Aguilera
    Buttah Skin Founder Wins Emerging Brand Partner of the Year Award from Macy’s
    L’Oréal Wins Legal Battle Over “Paris” Product Labels
    Happi

    Latest Breaking News From Happi

    Kao Launches Space Shampoo Sheet for Haircare
    Procter & Gamble Brings Tide Relief Project to Mississippi Tornado Victims
    Cleaning Industry Leaders Head To Capitol Hill on March 29
    Ink World

    Latest Breaking News From Ink World

    INX International Makes Investment in Gooten
    Videojet Launches 1580 C Soft-Pigmented Contrast Printer
    Epson to Showcase Textile, Signage and Aqueous Printers at ISA 2023
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Industrias Omega adds Durst Tau RSC E
    Ahlstrom publishes 2022 sustainability report
    INFOFLEX 2023 to feature 20+ press manufacturers
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    SharpCell Launches Plastic-free Airlaid Material for Premium Napkins
    Suominen Offers Biolace Ultrasoft
    Maxcess Offers More Engineering and Converting Solutions for Iberia
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Collagen Matrix Rebrands to Regenity Biosciences
    OsteoBoost Study Yields Positive Results
    Conventus Flower Ortho Appoints Jeff Culhane as COO
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Universal Display Sponsors, Presents at ICDT 2023
    Miron Washington Joins Impinj Board of Directors
    All-Time High for Global 300MM Semiconductor Capacity in 2026: SEMI

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login