Raising LyondellBasell's FVE to $124 as Long-Term Prospects Outweigh Near-Term Headwinds

LyondellBasell’s fourth-quarter earnings reflected several challenges that culminated in the back half of 2022. Significant constraints in top-line growth materialized from reduced global demand in several end markets, as economic and geopolitical concerns compounded typical adverse seasonal impacts. An unfavorable pricing environment, heightened natural gas costs, and lower fixed cost absorption (due to reduced capacity utilization) all contributed to a sequential EBITDA margin contraction of 120 basis points.