16 April 2012 17:18 [Source: ICIS news]
HOUSTON (ICIS)--Wells Fargo has increased its earnings estimates for Dow Chemical, LyondellBasell and Westlake as a result of strong olefins spreads, the US-based investment bank said on Monday.
Wells Fargo’s first-quarter earnings per share (EPS) outlook for Dow increased from $0.55 to $0.60, putting total 2012 EPS at $2.70.
LyondellBasell's first-quarter estimate was increased to $1.05 from $1.00, raising the 2012 estimate to $5.05.
The first-quarter estimate for Westlake increased to $1.25 from $1.10, and the 2012 EPS estimate increased to $4.70.
“Ethylene [C2] spreads widened significantly in [the first quarter], owing to ethane oversupply as a number of crackers were off-line, as well as resilience in [ethylene] pricing,” Wells Fargo said. “Thus far this year, spot margins are up roughly $0.30/lb, approaching $0.50/lb, surpassing levels seen in the October 1988 heyday.”
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