LyondellBasell (LYB) Inks PPAs to Meet Renewable Energy Goal
LyondellBasell Industries N.V. LYB has signed two new Power Purchase Agreements (PPA) in the United States, bringing the company's total procured renewable electricity to 1,366 megawatts (MW), or 89% of its goal of procuring at least 50% of its electricity from renewable sources.
The company signed a long-term PPA for 125 MW of renewable electricity generated by TotalEnergies' Brazoria Solar project in Brazoria County, TX. The 15-year arrangement is estimated to create around 300,000 megawatt-hours of solar power each year, which is equivalent to the annual electricity usage of more than 28,000 American homes. The project is anticipated to begin operations by the end of 2025. This is the company's second PPA with TotalEnergies.
LYB is taking significant actions to reduce scope 1 and 2 greenhouse gas emissions, and PPAs are an important tool for fulfilling the company's goals. These two new agreements assist the company in accelerating the development of clean energy and shifting to the usage of low-carbon energy at its facilities.
LyondellBasell has also inked a long-term PPA with Industrial Sun to supply 50 MW of renewable electricity from the Industrial Bravo solar project in Matagorda County, TX, to the LyondellBasell Matagorda Complex. This plant makes high-density polyethylene plastic resins, which are used to create a variety of consumer products. The project is expected to begin functioning in the first half of 2026.
Shares of LyondellBasell have gained 2.7% over the past year against 13.3% decline of its industry.
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The company, on its third-quarter call, said that it expects seasonally lower demand across most industries in the fourth quarter. Higher feedstock costs, new industry capacity and slowing demand growth in China 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 fall.
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).
Better-ranked stocks in the basic materials space include The Andersons Inc. ANDE, Cal-Maine Foods Inc. CALM and Steel Dynamics Inc. STLD.
Andersons currently carries a Zacks Rank #1 (Strong Buy). 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. The company’s shares have surged 42.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
CalMaine Foods currently carries a Zacks Rank #1. CALM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 131.5%. The company’s shares have inched up 3.1% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ current-year earnings has been revised upward by 4.3% in the past 60 days. It currently carries a Zacks Rank #1. Steel Dynamics delivered a trailing four-quarter earnings surprise of roughly 6.5%, on average. STLD shares are up around 1.3% in a year.
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