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LyondellBasell Inks Agreements as a Step Toward Energy Transition

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LyondellBasell Industries N.V. (LYB - Free Report) recently signed two significant power purchase agreements (PPAs) in Europe to reduce greenhouse gas emissions. The PPAs will help stabilize energy costs and make renewable energy more attractive compared to fluctuating fossil fuel prices. Establishing renewable energy in the mainstream domain is made possible by increasing the use of renewable energy in a value-accretive way. This will not only help LYB reduce its carbon footprint but also support customers’ ability to meet their CO2 reduction objectives.

LYB signed one of the deals with Vattenfall. It is 15-year agreement securing 450 gigawatt-hours (GWh) annually of offshore wind energy to support LYB’s circular and low-carbon solutions in Germany, including powering the company’s MoReTec-1 plant, LYB’s first commercial-scale advanced recycling plant designed to recycle plastic packaging waste. 

Another agreement with wpd secures 79 GWh annually of onshore wind power from the Licata project in Sicily, Italy. It is a 10-year agreement expected to commence in 2026 and will provide a reliable supply of renewable and low-carbon electricity to the region, including LYB’s site, which is the world’s largest for Ziegler-Natta catalyst development and production.

Both agreements will help integrate renewable energy into the company’s portfolio and support its commitment to creating greener solutions.

LYB stock has declined 18.5% in the past year compared with the 3.2% growth of the industry.

 

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LYB’s Zacks Rank and Key Picks

LYB currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Methanex Corp. (MEOH - Free Report) . While NGVT sports a Zacks Rank #1 (Strong Buy), CRS and MEOH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $2.75 per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 95.4%. Its shares have gained 3% in the past year.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.83 per share. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 15.7%. Its shares have soared 205.5% in the past year.

The Zacks Consensus Estimate for Methanex’s current-year earnings is pegged at $4.02 per share. MEOH surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 85.2%. The stock has gained 16.2% in the past year.

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