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LyondellBasell Bagged a New Order in India

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Feb. 19 2019, Updated 11:15 a.m. ET

LyondellBasell bagged a new order in India

In a press release on February 13, LyondellBasell (LYB) announced that it bagged a new client order in India. LyondellBasell will be providing licensing to its fifth generation Spheripol Technology to HPCL-Mittal Energy Limited. The plant will be implemented in Bathinda, India. The plant will have a capacity of 500 kilotons per year. However, LyondellBasell didn’t provide the financial aspects of the deal.

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LyondellBasell has provided more than 280 polyolefin process licenses. The new order will likely improve the company’s backlog and drive its future growth. Jim Seward, LyondellBasell’s vice president for the technology business and sustainability, said, “Recognized companies such as HMEL select the Spheripol process because of the technology’s low capital and operating costs, broad product capability and excellent operability. The Spheripol process has maintained its leadership over two decades through continuous process and product innovation.”

LyondellBasell’s stock performance

LyondellBasell stock remained positive. The stock rose ~3.6% last week and closed at $87.64. The gain in the stock price helped the company cut down its 100-day moving average gap. The stock traded 3.0% below its 100-day moving average price of $90.40, which indicates prevailing weakness in the stock.

On a year-to-date basis, the stock has risen 6.4%%. Celanese (CE), Westlake Chemical (WLK), and Eastman Chemical (EMN) have gained 12%, 25.2%, and 14.4%, respectively. LyondellBasell’s 14-day relative strength index of 55 indicates that the stock isn’t overbought or oversold.

Investors could hold LyondellBasell indirectly by investing in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which gained 2.7% last week. RTM invested 4.0% of its portfolio in LyondellBasell as of February 15.

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