LyondellBasell Industries N.V. LYB has started the world's largest Propylene Oxide (PO) and Tertiary Butyl Alcohol (TBA) unit in Texas. The annual capacity of the new assets on the U.S. Gulf Coast is 470,000 metric tons of PO and one million metric tons of TBA and its derivatives.
The world-leading capacity of the new plant will enable LyondellBasell to meet the rising demand for products essential for modern life. This project advances the company's goals and creates value while meeting customers’ needs. It involves a collaborative effort between multiple project teams at Bayport, Channelview and around the world to deliver a project of this scale, LYB noted.
The project is part of LYB's multi-billion dollar series of investments along the U.S. Gulf Coast. The PO/TBA project is anticipated to deliver more than $450 million in tax benefits over a 10-year period for the county, school system, community college, and other local taxing districts, as reported by a Greater Houston Partnership study.
The Bayport Complex served as the foundation for the development of LyondellBasell PO/TBA operations, with the first PO/TBA unit starting operations in 1969. The plant at the Channelview Complex is the most energy-efficient PO/TBA facility in the company’s history. The company has more than 50 years of global experience with PO/TBA operations and the implementation of innovations in yield improvement and PO recovery.
LyondellBasell stock has lost 16.5% over the past year against a 2.9% decline of its industry.
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LyondellBasell, on its fourth-quarter call, said that it anticipates the tough economic circumstances to persist, at least until the first half of 2023. While aligning its production process with global demand trends, LyondellBasell expects utilization rates for its operating assets to be 80% for its Olefins & Polyolefins and intermediates & derivatives segments. In January, the company observed steady demand from the customer packaging, oxyfuels and refining markets. LYB anticipates improved seasonal demand in 2023.
LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote
Zacks Rank & Key Picks
LyondellBasell currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the Basic Materials space include ATI Inc. ATI, Carpenter Technology Corporation CRS and Yamana Gold AUY.
ATI currently sports a Zacks Rank #1 (Strong Buy). ATI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 32.4% on average. ATI has rallied around 38% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently has a Zacks Rank #2 (Buy). CRS earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 33.6% on average. CRS has rallied around 13% in a year
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