London Metal Exchange: Base Metal Inventory Update
In the week ending on November 27, the stock levels of all London Metal Exchange (or LME) base metals fell an average of 1.7%.
In the week ending on November 27, the stocks of major base metal miners ended in losses.
In the week ending on November 27, base metals showed a mixed performance. Base metals copper and zinc ended the week in losses, whereas the remaining base metals saw gains.
All base metals started the week on a bad note, but copper, aluminum, and nickel were trading at their multiyear lows at the beginning of last week.
LyondellBasell’s (LYB) refining segment includes its Houston refinery, which primarily refines heavy high-sulfur crude oil sourced from the US Gulf Coast.
LyondellBasell (LYB) is the leading global producer of olefins and polyolefins.
LyondellBasell’s (LYB) Olefins and Polyolefins: Europe, Asia, International (or O&P EAI) segment manufactures olefins and polyolefins for international markets.
LYB’s Intermediates and Derivatives segment has proprietary PO and acetyl production process technologies, which give it a cost-advantaged position for PO products.
Overall, LYB’s EBITDA has increased at a CAGR of 9% between 2011 and 2014.
LyondellBasell (LYB) has been consistently investing in the low cost feedstock capacity across its major products.
LyondellBasell (LYB) has a presence throughout the world. However, the company generates around 50% of its revenue from the United States.
LyondellBasell (LYB) increased its EBITDA at a compounded annual growth rate (or CAGR) of 8.8% from $5.5 billion in 2011 to $7.1 billion in 2014.
LyondellBasell has maintained its leverage despite a whopping $15.6 billion cash return to shareholders since 2011.
The Americas segment benefits from low cost shale gas and NGLs. Therefore, the segment has a higher EBITDA margin of 40.7% as compared to LYB’s total EBITDA margin of 15.5%.
After Eastman (EMN), LYB is the second favorite chemical company among Wall Street analysts.
LYB’s share price rose at a compounded annual growth rate (or CAGR) of 26% while the chemical ETF XLB rose by a CAGR of only 7% between November 2010 and November 2015.
LyondellBasell (LYB) has returned more cash to shareholders through dividends and share buybacks than its peers.
LyondellBasell (LYB) has significantly improved its FCF from $1.4 billion in 2010 to $4.5 billion in 2014.
LyondellBasell is one of the world’s leading producers of olefins and polyolefins. After Dow Chemical, LYB is the second largest company by revenue and EBITDA in the US.
The precious metals market has been deeply hurt in 2015, especially in the third quarter. Gold recently broke the July low of $1,073, reaching $1,062.40 per ounce—its lowest level since 2010.