LyondellBasell (NYSE: LYB) has authorized the company’s Management Board to declare a special dividend of $2.75 per share to be paid Dec. 11, 2012 to shareholders of record Nov. 19, 2012, subject to the adoption of a resolution by the Management Board, which is expected to occur Nov. 19, 2012. The special dividend of approximately $1.6 billion will return value to shareholders and will be paid with existing cash on hand.
The special dividend is separate from and in addition to the company’s interim dividend of$0.40 per share, which is anticipated to be authorized by the Supervisory Board and approved by the Management Board for payment to shareholders of record at the same time as the special dividend.
The combined special dividend and regular dividend of $3.15 has a dividend yield of 5.82%. The special dividend has a yield of 5.08%. LyondellBasell has a regular dividend yield of 3.0%.
Overall, LyondellBasell posted a profit of $844 million, or $1.46 a share, versus $895 million, or $1.51 a share, the year earlier. The most recent period was helped by 11 cents in benefits from one-time items, while the year-ago period saw a three-cent charge from such items.
The most recent period included a $71 million reversal of a noncash, lower of cost or market inventory valuation adjustment recognized in the second quarter, while the year-before period included $100 million from a hurricane insurance settlement.
Revenue slumped 9.9% to $11.27 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.45 a share on$11.37 billion in revenue.
LyondellBasell is one of the world’s largest plastics, chemical and refining companies and a member of the S&P 500 Index.
On October 26, 2012 EVA Dimensions, LLC upgraded LYONDELLBASELL INDUSTRIES NV from HOLD to OVERWEIGHT.
LyondellBasell has an equity summary score of 9.6 out of 10 for a VERY Bullish outlook. First Call analysts have a Buy recommendation with a 1.9 stock rating.