LyondellBasell: 12% Divvy Yield But It Is At Risk Of Getting Cut (Rating Upgrade)

Impact · against what's priced in

LYB faces significant downside risk as structural oversupply from China and eroding feedstock advantages threaten margins. The lack of free cash flow to cover dividends creates a high probability of a payout cut to preserve the credit profile.

LYB−0.80

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In context

Structural oversupply driven by Chinese capacity and a declining oil-to-gas ratio are compressing margins, while insufficient free cash flow makes a dividend cut likely to protect the company's credit profile.

Read from the article alone

• cash flow▲10%
• dividends
• china
• LYB
• feedstock
• margins
• oil gas prices
• oversupply
• petrochemicals