whytestocks
6 years ago
News: $LYB LyondellBasell to Discuss Fourth-Quarter Results on Friday, February 1, 2019
HOUSTON and LONDON, Jan. 18, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce fourth-quarter 2018 financial results before the U.S. market opens on Friday, February 1 followed by a...
Find out more https://marketwirenews.com/news-releases/lyondellbasell-to-discuss-fourth-quarter-results-on-friday-february-1-2019-7084776.html
whytestocks
6 years ago
News: $LYB LyondellBasell takes leadership role in global effort to end plastic waste
LyondellBasell takes leadership role in global effort to end plastic waste Canada NewsWire LONDON, Jan. 16, 2019 LyondellBasell CEO Bob Patel , Proctor & Gamble CEO David Taylor and Veolia CEO Antoine Frérot to lead global alliance LONDON , Jan. 16, 2019 ...
Read the whole news https://marketwirenews.com/news-releases/lyondellbasell-takes-leadership-role-in-global-effort-to-end-plastic-waste-6924954.html
jaxstraw
13 years ago
LyondellBasell Board Authorizes Dividend Increase
LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare a dividend of $0.20 per share, double the amount of the company's initial dividend paid in May 2011. The dividend of $0.20 per share will be paid on Sept. 7, 2011 to shareholders of record as of Aug. 17, 2011, subject to the adoption of a resolution by the Management Board, which is expected to occur on August 17.
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 58 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. More information about LyondellBasell can be found at www.lyondellbasell.com.
jaxstraw
14 years ago
If you want a good comeback story, check out chemical firm LyondellBasell (LYB). The world’s third largest chemical manufacturer, it came about when Lyondell and Basell merged in December 2007. But things went wrong right from the start…
Swamped with $24 billion in debt from mergers and acquisitions, management tried buying even more. Yapping about growth, they just added to their debt burden. Additionally, prior management never truly integrated the two companies. So Lyondell and Basell still operated separately.
Enter: commodity price volatility, the global debt crisis and the economic downturn. And by January 2009, it was filing for Chapter 11. Notably, it continued expanding even as it filed for bankruptcy.
These days, it has come full circle, with a recent listing on the New York Stock Exchange. Even better, the Rotterdam-based company produces the world’s largest amount of polypropylene and polypropylene compounds. And it’s also a top global producer of ethylene, propylene and polyethylene. All told, this company looks like a solid buy.
A New Sheriff in Town
Things finally began looking up for LyondellBasell in May 2009, when Jim Gallogly became CEO. Previously, he headed exploration and production at ConocoPhillips (COP), and had 29 years of experience running big assets. Once in, Gallogly immediately went about pulling LyondellBasell out of bankruptcy. It only took him until April 30, 2010, to do just that. That was not easy to achieve.
* He had to fight off an unsolicited $14.5 billion takeover bid by Reliance Industries earlier this year.
* He set benchmarks for the company’s various chemical and refining facilities.
* He focused on obtaining the same cost structure, performance, emission levels, efficiencies and headcount as comparable facilities.
* And he cut $1 billion in fixed costs savings and reduced the workforce by 3,000.
Finally, Gallogly realized the synergies from the 2007 merger by running it as one. Of course, the Chapter 11 protection from creditors certainly helped. Among other debt and cost reductions, it enabled the company to convert $18 billion of debt into equity.
In the end, LyondellBasell eliminated $1.7 billion per year in interest payments. With the $1 billion in fixed costs savings, that amounted to $2.7 billion in savings per year. As conditions continue to improve in the industry, the company will explore selling non-core assets. And the new CEO assures it won’t be making any acquisitions any time soon.
Timing Is Everything
Mr. Gallogly is seeking further savings today. By spending $1 billion over the next five years, he hopes to improve energy efficiency across LyondellBasell’s 59 manufacturing sites in 18 countries. With 75% of its products tied to energy, it needs to reduce those costs. Fortunately, the CEO has made good so far in this area.
The US natural gas boom is certainly helping the company, with its 23 manufacturing sites in North America. LyondellBasell is enjoying a glut of American shale gas and expensive crude oil right now.
For example, take ethylene, a basic petrochemical used in many plastics, which can be produced from gas-derived ethane or oil-derived naphtha. From the mid-1980s through 2003, neither really had an advantage; US firms relied more on natural gas and European firms on oil.
The boom and bust in US natural gas prices initially made producers here uncompetitive. But ethane-reliant US chemical companies like LyondellBasell now have margins of 14-15 cents a pound, compared with about zero for naptha-dependent European plants. So Lyondell’s 20% higher revenue and ensuing profit in the third quarter comes as no surprise.
A year earlier, it recorded a loss. And while the industry usually suffers in the fourth quarter, Gallogly commented on conditions holding “reasonably well during October.” LyondellBasell is well positioned for the next few years before the next ethylene cycle peak. And more importantly, natural gas prices – which hit a record $13.69 per million BTU in July 2008 – shouldn’t be spiking to double-digit levels again anytime soon. That gives the company just one more thing to bank on… and investors one more reason to bank on it.
http://seekingalpha.com/article/234871-lyondellbasell-the-chemical-comeback-story-of-2010?source=qp_article
jaxstraw
14 years ago
NEW YORK (MarketWatch) -- LyondellBasell Industries said Friday it expects its common stock to begin trading on the New York Stock Exchange on Oct. 14 under the symbols LYB and LYB.B. LyondellBasell currently has 566 million ordinary shares outstanding. Its shares have been trading under the symbols LALLF /quotes/comstock/11i!lalbf (LALBF 25.00, +0.60, +2.46%) and LALBF /quotes/comstock/11i!lalbf (LALBF 25.00, +0.60, +2.46%) on the over-the-counter market. Based in Rotterdam, Netherlands, LyondellBasell Industries measures up as one of the world's largest chemical and plastics companies.
http://www.marketwatch.com/story/lyondellbasell-industries-to-list-on-nyse-2010-10-08
jaxstraw
14 years ago
Paulson and Apollo ramp up Lyondellbasell ownership as post reorg share price dips below former Reliance bid valuation
source: Debtwire 19-Jul-10
Paulson and Co.have been accumulating chunks of Lyondellbasell in OTC trades following the chemical giants April 30 bankruptcy emergence, according to two traders, three share holders, and a sell side analyst.
The hedge fund owned a tiny sliver of Lyondell debt that was equitized in the restructuring, and now holds around 3% of the company's shares thanks to a recent buying spree, said one of the traders and one of the shareholders.
Paulson's bulk up seizes on a recent dip in Lyondells share price, and also plays to the expectations that the company is a merger/arbitrage opportunity, all the sources said. That's because Lyondells current share price valuation is hovering below the USD 14.5bn non-binding bid that Indian conglomerate Reliance Industries floated during reorganization.
Through Lyondell Reliance was looking to create the largest international chemical company in terms of revenue, passing BASF. However, those aspirations met resistance during Chapter 11 from Apollo-led lender group that sought and won equity ownership in Lyondell for themselves, as reported previously.
Didn't sell in May
Reliance's in-court valuation has been vindicated somewhat by poor performance of LyondellBasell's new equity following the company's emergence from bankruptcy on 30 April. The stock is quoted at USD 16.20 per share today, implying a USD 9bn market cap and a USD 14bn enterprise value. That is significantly lower than the post emergence high of USD 23 per share hit in May, which valued the total enterprise at USD 18bn. The lower valuation could make the company even more attractive to Reliance now, said the sources.
'If Reliance wanted the company six months ago, they should still want it today. The only thing that's changed is it's trading cheaper," said a shareholder.
For Paulson, hunting for merger-arbitrage plays follows the recent bulk-up strategy it employed in Cadbury Plc and Rohm and Haas shares respectively after Kraft Foods and Dow Chemical made buyout bids, noted the sources.
Not to be outdone, Apollo has been increasing it's stake post-emergence, up to more than 30% from the 20% slug it received through restructuring, said the first trader and two of the shareholders. The fund controls three of Lyondells nine board seats.
Lyondell could also be of strategic importance to Apollo, since it presents potential tie-up synergies with it's other chemical portfolio company's Momentive Performance Materials and Hexion Specialty Chemicals, as reported.
Officials from Paulson, Apollo Management and Lyondell declined to comment, while calls to Reliance officials were not returned.
Equity sweet spot
Some of Lyondell's share price dip can be blamed on global economic fears since 35% of the company's revenue comes from Europe, said the sources. Nevertheless, the company is expected to report positive 2Q10 earnings later this month , said the shareholders, one of the traders and a sellside analyst. The sources estimate the company will report between USD 650m-USD 700m of EBITDA in 2Q10, up from the USD 580m generated in 2Q09 and the USD 654m reported in 1Q10. For 2010, the sources estimate LyondellBasell will generate around 2.7bn of EBITDA, up from USD 2.3bn generated in 2009.
Based on that 2010 estimate, Lyondell shares are trading tody at a 5.2x multiple, more than 1x inside the average 6.3x 2010 EBITDA trading multiple of competitors Dow Chemical, Eastman Chemical, Huntsman, Celanese Corp. and Westlake Chemical, said a hedge fund analyst.
" Lyondell just hasn't found it's range yet. Part of that is because it's still illiquid and not registered with the NYSE, there's no sellside coverage, and it's still a new company trying to sort out the merger synergies," said one of the shareholders.
Earlier this month Lyondell filed an 8-K saying it plans to seek NYSE registration. The shareholders expect the company will be registered by the end of July.
by Andrew Ragsly
Source: Debtwire, US Securities and Exchange Commission documents
Intel. Grade: Strong Evidence
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