LyondellBasell Q2 EPS $4.30 vs $3.41 est; CEO sees 20-25% of Middle East PE capacity offline until 2027
LYB sits 48% above its 52-week low of $41.58.
Summary
LyondellBasell crushed Q2 estimates with adjusted EPS of $4.30, 26% above consensus, as Middle East supply disruptions tightened polymer markets. Sales jumped 20% to $9.18 billion, slightly ahead of forecasts. CEO Peter Vanacker provided new detail: an estimated 6 million metric tons of polyethylene capacity—20-25% of Middle East supply—is damaged and not expected back before 2027. Chinese polyolefin inventories have dropped 30% from pre-conflict levels, with operating rates stuck in the mid-70% range, while higher Asian freight rates closed the arbitrage to Europe, boosting demand for U.S. and European material. The company maintained its $1.2 billion capex plan and expects a $100 million sustaining capex reduction following European asset sales, keeping it on track for $500 million in incremental cash by year-end. This follows the earlier Q2 beat report and adds concrete supply-side damage estimates that suggest elevated margins could persist well beyond 2026.
At the time of this announcement, LYB was trading at $61.50 on NYSE in the Manufacturing sector, with a market capitalization of approximately $19.8B. The 52-week trading range was $41.58 to $83.94. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.