HOUSTON and RIYADH, Saudi Arabia - LyondellBasell (NYSE: LYB), a global leader in the chemical industry, has completed the acquisition of a 35% interest in the National Petrochemical Industrial Company (NATPET) based in Saudi Arabia from Alujain Corporation. This strategic move allows LyondellBasell to expand its core polypropylene (PP) business by utilizing advanced Spheripol PP technology and gaining access to advantaged feedstocks.
Peter Vanacker, CEO of LyondellBasell, emphasized the company's commitment to growth and stated that the investment will enhance supply reliability for customers through an expanded global operations and marketing network.
Mohammed Bin Saleh AlKhalil, Chairman of Alujain, expressed his pleasure in strengthening the partnership with LyondellBasell, highlighting the alignment with Saudi Arabia's Vision 2030 and the Kingdom's strategies for energy and industry.
NATPET, with an annual PP production capacity of around 400,000 tons, will have the majority of its production marketed by LyondellBasell. Additionally, Alujain and LyondellBasell are evaluating the construction of a new propylene and PP facility at the NATPET site, which is contingent on a final investment decision. The proposed project aims to target high-end products and adhere to the Kingdom of Saudi Arabia's 2060 Carbon reduction strategy.
The acquisition is a significant step towards enhancing the propylene downstream sector in Saudi Arabia, and it reflects LyondellBasell's strategy to enable a circular and low carbon economy through advanced technology and investments. The company, known for its production of polymers and polyolefin technologies, continues to focus on creating high-quality, innovative products for a range of applications.
This press release statement contains forward-looking statements based on current management assumptions, which are subject to risks and uncertainties. LyondellBasell cautions that actual results could differ materially from those projected, and advises readers to consult the "Risk Factors" section of their annual report for further information.
InvestingPro Insights
As LyondellBasell (NYSE: LYB) secures a strategic stake in Saudi Arabia's National Petrochemical Industrial Company, investors are keenly observing the company's financial health and market performance.
With a robust market capitalization of 31.53 billion USD, LyondellBasell stands as a significant player in the chemical industry. The company's P/E ratio, a key indicator of investor expectations, stands at 13.54 on an adjusted basis for the last twelve months as of Q1 2024, reflecting a market sentiment that balances earnings with the stock price.
An attractive dividend yield of 5.54% as of March 2024 underscores LyondellBasell's commitment to shareholder returns, complemented by a noteworthy dividend growth of 12.61% in the same period. This demonstrates the company's ability to consistently reward its investors even as it pursues growth through acquisitions. Moreover, the company's stock is trading at 90.5% of its 52-week high, suggesting a relatively strong position in the market.
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