U.S. markets closed
  • S&P 500

    -40.76 (-0.91%)
  • Dow 30

    -166.44 (-0.48%)
  • Nasdaq

    -137.96 (-0.91%)
  • Russell 2000

    +3.96 (+0.18%)
  • Crude Oil

    -0.65 (-0.90%)
  • Gold

    -2.80 (-0.16%)
  • Silver

    -0.43 (-1.90%)

    -0.0040 (-0.34%)
  • 10-Yr Bond

    +0.0390 (+2.93%)

    -0.0059 (-0.43%)

    +0.1770 (+0.16%)

    +1,459.13 (+3.11%)
  • CMC Crypto 200

    -32.05 (-2.62%)
  • FTSE 100

    -63.84 (-0.91%)
  • Nikkei 225

    +176.71 (+0.58%)

LyondellBasell (LYB) & Neste to Develop Renewable Polymers

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

LyondellBasell Industries N.V. LYB and Neste have recently announced a long-term commercial agreement, under which the former will source a feedstock, Neste RE, from the latter. The product has been produced with 100% renewable feedstock from bio-based sources like waste and residue oils and fats. This feedstock will be converted into polymers at LyondellBasell’s Wesseling plant in Germany and sold under the CirculenRenew brand name.

Through their joint venture, the companies intend to aid the development of the European market for more sustainable polymers and chemical solutions. Significant large-scale volumes of renewable polymers from renewable bio-based feedstock will enable the companies to strive for sustainability-focused brands to develop more viable offerings.

LyondellBasell is hopeful that this joint venture will permit it to bring its customers closer to developing sustainable end products. The company has already taken steps toward this goal since the beginning of 2021 and the launch of its Circulen chain of products and ISCC PLUS certification, obtained for its European polymer sites, are among the noteworthy strides.

Neste believes that the common spirit shared by both companies, to actively contribute to fighting climate change and transitioning to a circular bio-economy, will help this venture reach its desired goal. The companies had already joined forces back in 2019 for the world’s first commercial-scale production of bio-based polypropylene and bio-based polyethylene and are looking forward to more such future success.

Shares of LyondellBasell have grown 50.4% in a year, outperforming the industry’s growth of 45.2%. The estimated earnings growth rate for the company for the current year is pegged at 182.9%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

In the last earnings call, the company said that it anticipates operating at nearly full capacity globally to meet the strong demand, which is expected to continue, due to lower inventories and maintenance downtime across the industry. Strong North American integrated polyethylene margins are expected to continue as U.S. producers look to fulfill domestic order backlogs, rebuild inventories and serve export demand.

In the second half of 2021, it is expected that increased mobility will drive demand for gasoline and jet fuel, improving margins for the company’s Refining and Oxyfuels & Related Products businesses. Moderating feedstock costs are also expected to increase second-quarter margins for the Advanced Polymer Solutions segment.

LyondellBasell Industries N.V. Price and Consensus

LyondellBasell Industries N.V. Price and Consensus
LyondellBasell Industries N.V. Price and Consensus

LyondellBasell Industries N.V. price-consensus-chart | LyondellBasell Industries N.V. Quote

Zacks Rank & Key Picks

Currently, LyondellBasell carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space are Olin Corporation OLN, Univar Solutions Inc. UNVR and Tronox Holdings PLC TROX, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has a projected earnings growth rate of 506.7% for the current year. The company’s shares have soared 258.8% in a year.

Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have risen 46.8% in a year.

Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have jumped 170.8% in a year.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report

Olin Corporation (OLN) : Free Stock Analysis Report

Tronox Holdings PLC (TROX) : Free Stock Analysis Report

Univar Solutions Inc. (UNVR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research