雅虎香港財經 LyondellBasell (LYB) Expands Saudi Presence With NATPET Stake
LyondellBasell Industries N.V. LYB and Alujain Corporation have announced the completion of LYB's acquisition of a 35% interest in Saudi Arabia–based National Petrochemical Industrial Company (NATPET) from Alujain.
The joint venture, enabled by LYB's Spheripol polypropylene (PP) technology, positions LYB to expand its core PP business profitably by gaining access to advantageous feedstocks and additional product marketing volumes.
This investment in NATPET demonstrates LYB's commitment to growing and upgrading its core businesses while strengthening its presence in Saudi Arabia through a new long-term partnership. Together with their strategic partner Alujain, the joint venture will leverage LYB's leading technology and global market positions. Customers will benefit from enhanced supply reliability through an expanded global operations and marketing network.
Alujain expressed its pleasure in strengthening its partnership with LYB. It looks forward to continuing joint efforts to produce essential high-end materials that meet customers' needs locally and globally. This investment also represents a significant step toward enhancing the propylene downstream sector in Saudi Arabia, aligning with the Kingdom's Vision 2030 and strategies from the Ministry of Energy and Ministry of Industry.
NATPET currently boasts an annual PP production capacity of approximately 400,000 tons. LYB will market the majority of the joint venture's production through its global network. Alujain and LYB are jointly evaluating the construction of a new propylene facility via propane dehydrogenation (PDH) and PP at the NATPET site, pending a final investment decision. The project aims to target high-end products and implement solutions aligned with the Kingdom of Saudi Arabia's 2060 carbon reduction strategy.
LYB’s stock has gained 12.3% in the past year against the industry’s rise of 2.9%.
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LyondellBasell reported adjusted earnings of $1.53 per share in the first quarter, plunging 38.8% from $2.50 in the year-ago quarter. The figure beat the Zacks Consensus Estimate of $1.42. The company's net sales totaled $9,925 million, down 3.1% from $10,247 million in the prior-year quarter.
In the second quarter, LYB expects seasonal demand to rise across most of its business segments, with North American and Middle Eastern production continuing to benefit from low-cost natural gas and NGLs compared with higher oil-based costs in other regions. As the summer driving season kicks off, the company foresees an increase in oxyfuel and refining margins due to wider gasoline crack spreads and lower butane costs. The company expects to meet market demand with global olefins and polyolefins assets operating at an average rate of 85%, while Intermediates & Derivatives assets will operate at 80%. It continues to implement targeted stimulus measures and keeps a close eye on potential demand growth in China.
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).
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