LyondellBasell Industries N.V. LYB said that it has invested in the first close of the Lombard Odier Investment Managers (LOIM) Plastic Circularity Fund. This fund will prioritize investments that provide solutions to minimize pollution from plastic waste and greenhouse gas emissions throughout the plastic value chain. These include investment in companies that provide novel plastic materials designed for reuse and recycling, as well as enhanced collecting, sorting and recycling systems. LyondellBasell has committed a total of $44 million to venture capital firms since 2021.
Advancing circular solutions to address the global challenge of plastic waste necessitates involvement and collaboration across the value chain to expand accessible material supply to fulfill the rapidly growing demand for sustainable products, LYB noted.
Investments made by the company in venture capital include LOIM, Closed Loop Partners, Infinity Recycling, HX Venture and Chrysalix. These investments are in line with the company's objective to enable co-investors to contribute an additional $5 for every dollar LyondellBasell invests in venture funds addressing important sustainability concerns.
Shares of LyondellBasell have gained 25.7% over the past year compared with a 6.9% rise of its industry.
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In the third quarter, LyondellBasell expects soft demand due to ongoing economic uncertainty to offset the usual benefits from summer seasonality. Challenging petrochemical margins are being influenced by stagnant demand, volatile feedstock costs and increased capacity in North America and China. However, the company anticipates attractive oxyfuels and refining margins, supported by summer demand for transportation fuels. During this period, LyondellBasell plans to maintain average operating rates of 85% for North American olefins and polyolefins (O&P) assets and 75% for European O&P as well as Intermediates & Derivatives assets, in accordance with global market demand.
Despite the current challenging economic conditions and a slower recovery in China, the company remains committed to its long-term strategy. LyondellBasell is focused on advancing in Circular & Low Carbon Solutions. Its Value Enhancement Program is benefiting shareholders.
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 Carpenter Technology Corporation CRS, The Andersons Inc. ANDE and Hawkins Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 86.6% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Andersons currently carries a Zacks Rank #1. The stock has gained roughly 47.1% 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.
Hawkins currently carries a Zacks Rank #1. The stock has rallied roughly 49.3% in the past year. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 25.6%, on average.
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