LyondellBasell - Good yield from dividends - low P/E

[Charles Prestridge]

What are your thoughts on this somewhat beat-down stock?

Great dividend - 4.78%
P/E below 8

I am not a polymer expert, but have worked for over 20 years with a good bit of overlap with polymers. I have used their products and they are a respected supplier.

Polymer prices have increased heavily due to short supply and interruptions due to covid and supply chain issues. They may not be selling as much petroleum, but polymer sales should stay strong.

Their dividend and drop in price (like many petroleum companies) has me wondering if they would be a good buy? Especially, below $90/share, if they keep dropping.

From work, I think of them more as a polymer company, and not a petroleum company. I don’t think increases in EV sales will hurt them as much as the larger oil companies.

Do any of you have any thoughts or research to add?

Thanks

https://www.lyondellbasell.com/globa...conference.pdf

[NitroZ7]

I have owned shares in LYB for a few years. I have read articles that the share price is loosely tied to oil and the explanation was that they hold large inventories of it for their manufacturing processes. Not sure if that is totally true but that was the explanation. I think they own some refineries also. It can be very cyclical but the price and yield are very good. I like the stock but it can definitely move around quite a bit.

[Charles Prestridge]

Thanks Nitro - Read an article last night where they are going to try again and sell refinery in Houston. They tried in 2017, but the facility had fires and other issues. This ran away potential buyers.

Looking at their earnings report, the refinery assets were a loss last year (as expected). They made all their money on polymers and chemicals. If they divest refineries, not sure how it will impact their flow of intermediates and chemicals necessary for polymers and other chemical sales.