LyondellBasell (LYB) Acquires Minority Share in Source One
LyondellBasell Industries N.V. LYB announced the acquisition of a minority stake in Source One GmbH, Leiferde, Germany, a plastic waste sourcing and engineering firm focused on developing technical solutions for difficult-to-recycle post-consumer plastic waste. Both LyondellBasell and Landbell will be shareholders in Source One. Landbell is a global service provider with a global network of Extended Producer Responsibility (EPR) and take-back organizations.
LyondellBasell has gained access to Source One's engineering and plastic waste-sourcing services as a result of this strategic investment. It also forms a collaboration with Landbell to supply plastic packaging waste volumes for LYB's advanced recycling operations. Processing plastic waste volumes from EPR Service Providers like Landbell strengthens LYB’s commitment to assisting brand owners in closing the plastic packaging loop.
LyondellBasell is taking another important step to secure access to plastic waste for recycling activities and to strengthen its Circulen product portfolio of materials made from recyclable or renewable resources by investing in Source One, LYB noted.
Source One will be 50% owned by 23 Oaks Investments, Leiferde, Germany, which has formed the joint venture Source One Plastics with LyondellBasell in 2022. Source One Plastics is currently building an energy-efficient, advanced plastic waste sorting and recycling facility in Germany.
Shares of LyondellBasell have gained 13.7% over the past year against the 12.5% decline of its industry.
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The company, on its third-quarter call, said that it anticipates seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing Chinese demand growth continue to put pressure on global olefins and polyolefins margins. Following the end of the summer driving season, oxyfuels and refining margins are projected to decline.
Nonetheless, oxyfuel margins are expected to remain significantly higher than historical averages. LyondellBasell plans to operate its assets in line with market demand during the fourth quarter, with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets and 70% for Intermediates & Derivatives assets.
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).
Some better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and The Andersons Inc. ANDE.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently sports a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock has gained 62.5% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently flaunts a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock has rallied 20.6% in a year.
Andersons currently carries a Zacks Rank #2 (Buy). The stock has gained roughly 50.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
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