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LyondellBasell Industries N.V. LYB is scheduled to report first-quarter 2025 earnings on April 25, before the opening bell.
The company surpassed the Zacks Consensus Estimate in two of the last four quarters, missed once and reported in-line results on the other occasion, with the average earnings surprise being 0.2%.
LYB stock has lost 42.3% in the past year compared with the Zacks Chemicals Diversified industry’s 26.3% decline.
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Let’s see how things are shaping up for this announcement.
What Do Revenue Estimates for LYB Say?
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $7,593 million, indicating a decline of around 23.5% from the prior-year reported number.
For the Olefins and Polyolefins – Americas division, the consensus estimate stands at $2,737.8 million, suggesting a year-over-year decline of 4.6%. The same for the Olefins and Polyolefins – Europe, Asia & International division is pegged at $2,550.7 million, implying a 7.1% decrease from last year’s tally.
For LYB’s Advanced Polymer Solutions segment, the Zacks Consensus Estimate for first-quarter revenues is $948.4 million, suggesting a 1.7% decline year over year.
The consensus estimate for the Intermediaries and Derivatives segment’s revenues is pinned at $2,472.9 million, suggesting a 4.4% decrease from the year-ago reported figure.
The same for the Technology segment's revenues is pegged at $175.4 million, suggesting an 8.6% fall from a year ago.
Factors at Play for LYB
LYB is expected to have faced margin pressures from higher ethane and natural gas prices in the first quarter. The company expects increased ethane and natural gas costs in the quarter due to higher winter energy demand, along with slight gains in product volumes as seasonal slowdowns ease and export markets remain strong.
Operations at the company's O&P-Americas facilities are projected to run at around 80% capacity during the first quarter, primarily due to scheduled maintenance at the Channelview olefin assets and disruptions caused by Winter Storm Enzo. Reduced rates and asset shutdowns associated with Enzo are likely to have adversely impacted production volumes and margins.
LYB is expected to have benefited from demand gains across most product categories in the first quarter. The company expects to benefit from moderate demand improvements across most of its businesses as customers start restocking following year-end inventory reductions. Furthermore, octane premiums are anticipated to rise with the conclusion of the winter season.