LyondellBasell's Earnings Lag Estimates, Sales Beat in Q1

Core Viewpoint - LyondellBasell Industries N.V. reported a significant decline in profits and revenues for the first quarter of 2025 compared to the previous year, with adjusted earnings missing consensus estimates, indicating challenges in various segments due to increased costs and lower margins [1][2][4]. Financial Performance - The company recorded a profit of $177 million or 54 cents per share, down from $473 million or $1.44 per share in the same quarter last year [1]. - Adjusted earnings were 33 cents, a decrease of 74.8% from $1.31 in the prior-year quarter, missing the Zacks Consensus Estimate of 36 cents [1]. - Net sales for the first quarter were $7,677 million, surpassing the Zacks Consensus Estimate of $7,593.3 million but down 7.6% from $8,304 million in the prior-year quarter [2]. Segment Highlights - Olefins & Polyolefins — Americas: Revenues decreased approximately 13.6% year over year to $2,481 million, missing the Zacks Consensus Estimate of $2,737.8 million. EBITDA fell by $270 million from the first quarter of 2024, primarily due to reduced ethylene margins from higher energy costs [2]. - Olefins & Polyolefins — Europe, Asia, International: Revenues were $2,600 million, down 5.3% year over year but beating the Zacks Consensus Estimate of $2,550.8 million. Olefins results declined by around $20 million due to increased feedstock costs [3]. - Advanced Polymer Solutions: Revenues were $908 million, down 5.9% from $965 million in the prior-year quarter, lagging behind the Zacks Consensus Estimate of $948.4 million. EBITDA rose by $11 million due to improved sales margins [4]. - Intermediates and Derivatives: Revenues decreased around 11.1% year over year to $2,298 million, missing the Zacks Consensus Estimate of $2,472.9 million [5]. - Technology Segment: Revenues were $120 million, down approximately 37.5% year over year, lagging the Zacks Consensus Estimate of $175.4 million. EBITDA fell by $66 million due to reduced licensing revenues [6]. Cash Flow and Capital Allocation - The company used $579 million in cash from operating activities and maintained a balanced capital allocation strategy, investing $483 million in capital expenditures and returning $543 million to shareholders through dividends and stock buybacks [7]. Outlook - For the second quarter, the company anticipates improved seasonal demand across most business segments, with easing U.S. natural gas and ethane feedstock prices benefiting operations [8]. - Oxyfuels margins are expected to rise as gasoline crack spreads widen during the summer driving season, and ongoing capacity reductions in Europe are projected to enhance the regional supply-demand balance [8][10]. Price Performance - Shares of LyondellBasell have declined by 40.6% over the past year, compared to a 25.7% decline in the industry [11].