LyondellBasell Reports Mixed Q1 Performance Amid Global Market Shifts, Hopes On Seasonal Demand Improvements
Portfolio Pulse from Akanksha Bakshi
LyondellBasell Industries N.V. (NYSE:LYB) reported a mixed Q1 fiscal 2024 performance with revenues of $9.925 billion, slightly down from the previous year but above consensus estimates. Adjusted EBITDA and EPS both declined year-over-year but also beat consensus estimates. The company benefited from lower natural gas costs in North America and faced challenges in Europe due to Red Sea logistics issues. Weak global demand for durable goods impacted polypropylene and propylene oxide volumes and margins. Operating cash flow turned negative due to a build in working capital, but the company maintained strong liquidity. LYB expects seasonal demand improvements in Q2 and plans to operate assets in line with market demand.
April 26, 2024 | 2:53 pm
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LyondellBasell reported a mixed Q1 fiscal 2024 with revenues beating estimates but a decline in EBITDA and EPS. The company sees potential improvements in seasonal demand and maintains strong liquidity.
Despite the mixed performance in Q1, LYB's revenue beat and the company's optimistic outlook for seasonal demand improvements in Q2 suggest a positive short-term impact. The strong liquidity position and strategic operations adjustments in response to market demand further support this view. However, ongoing global demand challenges and the recent negative operating cash flow highlight some risks.
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