LyondellBasell outperformed peers
LyondellBasell has outperformed its major peers as well as the largest chemical ETF, the Materials Select Sector SPDR (XLB), over the last five years. 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. LYB’s major peers such as Dow Chemical (DOW), DuPont (DD), and Eastman Chemical (EMN) underperformed LYB but outperformed XLB. DOW, DD, and EMN’s share prices increased at a CAGR of 11%, 9%, and 12%, respectively, over the last five years.
LYB continued its strong share performance in 2015
LyondellBasell has continued with its strong performance in 2015 and outperformed major peers as well as XLB. LYB’s share prices rose 19% while XLB has fallen 10% since the beginning of the year. Dow, the largest chemical company, has appreciated 14% year-to-date. DuPont and Eastman’s stocks underperformed LYB and DOW to fall 4% and 7%, respectively. LYB’s strong share performance was driven by strong results in the first nine months of 2015 and a better future outlook. LYB’s EBITDA rose 13% and returned total cash of $4.5 billion to shareholders in the first nine months of 2015.
LYB at a glance
LyondellBasell has significantly enhanced its position in the olefins and polyolefins product segment with a huge capacity addition and the increased use of low cost feedstock across American as well as European operations. With its strong performance in olefins and polyolefins, LYB has significantly improved its financial performance over the last five years. LYB has also increased its focus on shareholder returns. Among its major peers, LYB has returned the most cash to its shareholders through dividends and share repurchases. LYB has continued with its strong operational performance and cash return strategy in 2015 too. LYB’s solid financial performance is reflected in its share price, which has appreciated 19% year-to-date.
The iShares U.S. Basic Materials ETF (IYM) tracks the performance of US-listed basic material and chemical companies. LyondellBasell forms 6.5% of IYM’s total holdings.