HOUSTON - LyondellBasell (NYSE: LYB), a global leader in the chemical industry, announced today that its executive vice president and chief financial officer, Michael McMurray, will retire on March 1, 2025. Agustin Izquierdo, currently serving as the company’s senior vice president, Olefins & Polyolefins Americas & Refining, is set to succeed McMurray following his retirement.
McMurray, who has been with LyondellBasell for five years, has been lauded for his strategic leadership and contributions to the company's financial performance. CEO Peter Vanacker expressed gratitude for McMurray's efforts in transforming the finance function and driving shareholder returns during a challenging market environment. Vanacker also acknowledged McMurray's role in the succession planning process, ensuring a smooth transition.
Agustin Izquierdo, earmarked as the next CFO, joined LyondellBasell in November 2022, bringing a wealth of experience from his previous roles at BASF, which he held from 2009 to 2022, and nearly a decade at Morgan Stanley’s Investment Banking Division. Izquierdo expressed enthusiasm for his upcoming role and is poised to build upon the company’s financial foundation and strategic initiatives.
The announcement comes as part of LyondellBasell's long-term planning and commitment to internal leadership development. McMurray has expressed his confidence in the company's future success and Izquierdo's capabilities to lead the financial strategy forward.
LyondellBasell is recognized for its production of polymers and leadership in polyolefin technologies, focusing on sustainable solutions for various applications including transportation, food safety, clean water, and healthcare. The company emphasizes its role in promoting a circular and low carbon economy through advanced technology and strategic investments.
This leadership transition is based on a press release by LyondellBasell and reflects the company's ongoing efforts to ensure strategic continuity and uphold its financial strength in the global market.
In other recent news, LyondellBasell Industries (NYSE:LYB) reported third-quarter earnings per share of $1.88 and an EBITDA of $1.2 billion, despite challenging market conditions. Recent developments show a series of adjustments in the company's stock price targets by several financial firms. BMO Capital Markets, Piper Sandler, BofA Securities, Citi, and Jefferies have all adjusted their outlooks for the company, with BMO Capital Markets reducing the price target to $98.00 from the previous $105.00, Piper Sandler to $112 from $117, BofA Securities to $96 from $98, Citi to $92 from $100, and Jefferies to $96 from $101.
KeyBanc maintained its Sector Weight rating on LyondellBasell's shares, citing ongoing softness in the intermediates and derivatives segment and weak demand for durables. The company's strategic initiatives, including the construction of the MoReTec-1 recycling facility and the planned closure of the Houston refinery, continue as planned. LyondellBasell aims to unlock at least $600 million in annual EBITDA by the end of 2024, targeting $1 billion by the end of 2025.
These adjustments reflect the company's strategic focus on disciplined capital allocation and optimizing operations to ensure long-term value. The adjustments are based on factors such as ongoing softness in the intermediates and derivatives segment, weak demand for durables, and a cautious outlook for the company's financial performance.
InvestingPro Insights
As LyondellBasell prepares for this significant leadership transition, recent financial data from InvestingPro provides valuable context for investors. The company's market capitalization stands at $26.89 billion, reflecting its substantial presence in the chemical industry. With a P/E ratio of 12.58, LyondellBasell appears to be trading at a relatively modest valuation compared to historical industry averages.
One of the most striking metrics is LyondellBasell's impressive dividend yield of 6.47%, which is particularly noteworthy in the current economic environment. This high yield, coupled with a 7.2% dividend growth rate over the last twelve months, underscores the company's commitment to returning value to shareholders—a strategy that the incoming CFO, Agustin Izquierdo, will likely be keen to maintain.
InvestingPro Tips highlight additional strengths:
1. LyondellBasell has maintained dividend payments for 13 consecutive years, demonstrating a strong track record of financial stability and shareholder returns.
2. The company's high return on invested capital suggests efficient use of funds in generating profits, a crucial factor as the new CFO takes the helm.
These insights are just a sample of the comprehensive analysis available through InvestingPro, which offers over 20 additional tips for LyondellBasell. As the company navigates this transition period, investors may find the depth of information provided by InvestingPro particularly valuable for making informed decisions.
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