SHEL - LyondellBasell: Downgrade To Hold From Buy
2024-02-19 11:17:58 ET
Summary
- LyondellBasell Industries is a $31.7 billion market cap global chemicals company paying a 5.1% dividend.
- The company is helped by lower natural gas and natural gas liquids prices, hurt by soft demand, and has a big ESG focus.
- LYB is focusing on its core businesses. It has committed to closing its Houston refinery by 1Q25.
LyondellBasell Industries ( LYB ) is a global petrochemicals company. It also owns a US Gulf Coast refinery it plans to close in the first quarter of 2025. Per the company's investor presentation , it operates in six segments: Olefins and Polyolefins-Americas; Olefins and Polyolefins-Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. The biggest contributors in 2023 (88% of EBITDA) were Olefins and Polyolefins-Americas and Intermediates and Derivatives.
The company offers a good $5.00/share dividend now yielding 5.1%. Market capitalization is about the same as a year ago .
LYB has a +20% inside ownership. Most of this is a carryover from the original owner of Basell before it merged years ago with Lyondell Chemical....
LyondellBasell: Downgrade To Hold From Buy