LyondellBasell Q1 Bottomline Beats Street View, Remains Watchful For Global Monetary Policy Changes In 2H

LyondellBasell Industries N.V. LYB reported the first quarter of FY23 revenues of $10.25 billion, down 22.1% year over year. Revenues missed the consensus of $10.78 billion.
Adjusted EPS in Q1 stood at $2.50 (-37.5% Y/Y), beating the consensus of $1.74.
Global olefins and polyolefins margins increased during Q1, driven by lower ethane cost in the U.S., lower energy costs, and moderately improving global demand.
In Q1, LyondellBasell generated $482 million in cash from operating activities and ended the quarter with $5.8 billion in available liquidity.
LyondellBasell and Veolia Belgium have signed an agreement to restructure the ownership of their plastic recycling joint venture Quality Circular Polymers (QCP) BV. Under the deal, Veolia will sell its 50% share to LyondellBasell, which will become 100% owner of QCP. The financial terms were not disclosed.
Outlook: In March, LyondellBasell launched a new strategy targeting net income of $6.3 billion and $10 billion of normalized EBITDA by 2027.
During Q2, LyondellBasell expects to operate Intermediates & Derivatives assets at 80% and modestly increase global olefins and polyolefins operating rates to 85% to match the market outlook.
The company remains watchful for the effects of changes in global monetary policies and improving economic conditions in China on petrochemical markets during the second half of 2023.
Price Action: LYB shares are trading higher by 0.65% at $91.91 on the last check Friday.

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