01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V.
(NYSE: LYB) reported 2024 net income of $1.37 billiona, down from $2.12 billion in 2023, on sales and other operating revenues of $40.30 billion (versus $41.11 billion in 2023). Operating income fell to $1.82 billion from $3.05 billion, driven by an $837 million non-cash impairment of property, plant and equipment in the O&P-EAI segment tied to European assets under strategic review, and by lower margins in the Refining and I&D segments. Total impairments were $949 million for the year.
Cash provided by operating activities was $3.82 billionb, capital expenditures were $1.84 billion, and the company returned $1.92 billion to shareholders through dividends ($1.72 billion) and share repurchases ($195 million). The company is executing a strategy built on three pillars: growing and upgrading the core, building a Circular & Low Carbon Solutions business, and stepping up performance and culture. It is also exiting the refining business, with Houston refinery shutdown activities beginning in January 2025 and expected to be substantially completed in the first quarter of 2025.
Other portfolio actions in 2024 included the sale of the EO&D business for $689 millionc, a pre-tax gain of $284 million, and a roughly $500 million acquisition of a 35% stake in National Petrochemical Industrial Company (NATPET). The Value Enhancement Program is estimated to reach a 2025 year-end run rate of approximately $1.0 billion of recurring annual EBITDA. Total debt was $11.15 billion at year-end 2024, against $3.38 billion of cash and cash equivalents and $4.65 billion of unused credit facility availability.
Management expects a gradual oxyfuels margin recovery over the summer of 2025 and cites tariff and trade uncertainty as potential headwinds. Planned 2025 capital expenditures are approximately $1.9 billiond, of which about $1.2 billion is for sustaining maintenance. Investors should weigh the weaker 2024 earnings, the European impairments and the ongoing strategic review of non-core European assets (about 30% of O&P-EAI production capacity) against the company's continued dividend growth goal and its target of returning 70% of free cash flow to shareholders over the long term.
02—Key points
Key Highlights
- Net income of $1.37 billion in 2024, down from $2.12 billion in 2023; diluted EPS of $4.15 versus $6.46 a year earlier.
- Operating income of $1.82 billion, down from $3.05 billion, reflecting $949 million in impairments, including an $837 million charge on European O&P-EAI assets under strategic review.
- Operating cash flow of $3.82 billion and capital expenditures of $1.84 billion, leaving cash returned to shareholders of $1.92 billion through dividends and buybacks.
- Exit from the refining business: Houston refinery shutdown began in January 2025 and is expected to be substantially complete in Q1 2025, with a $179 million expense recognized in 2024.
- Sale of the EO&D business for $689 million, producing a $284 million pre-tax gain, and acquisition of a 35% stake in NATPET for approximately $500 million.
- Value Enhancement Program is expected to reach a 2025 year-end run rate of approximately $1.0 billion of recurring annual EBITDA, with one-time costs of about $200 million in 2025.
- Balance sheet: total debt of $11.15 billion, cash and cash equivalents of $3.38 billion, and $4.65 billion of unused credit facility availability at December 31, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, LyondellBasell Industries kept $0.04.
- Revenue$33.39B100.0%
- Cost of revenue−$28.75B86.1%
- Gross profit$4.64B13.9%
- Operating costs−$2.73B8.2%
- Operating income$1.92B5.7%
- Interest, other & tax−$551.0M1.6%
- Net income$1.37B4.1%
Where FY2024 revenue went
$33.39B- Cost of revenue: $28.75B, 86% of revenue
- Net income: $1.37B, 4.1% of revenue
- R&D: $135.0M, 0.4% of revenue
- SG&A: $1.64B, 4.9% of revenue
- Other operating costs: $949.0M, 2.8% of revenue
- Interest, other & tax: $551.0M, 1.6% of revenue
Kept 4.1% as net incomeNet income $1.37B · 4.1%R&D $135.0M · 0.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $33.39B$33.34B | +0.2% |
| Cost of Revenue | $28.75B$28.43B | +1.1% |
| Gross Profit | $4.64B$4.90B | −5.2% |
| R&D Expenses | $135.00M$130.00M | +3.8% |
| SG&A Expenses | $1.64B$1.54B | +6.7% |
| Operating Expenses | $31.48B$30.61B | +2.8% |
| Operating Income | $1.92B$2.73B | −29.6% |
| Net Income | $1.37B$2.12B | −35.5% |
| EPS (Basic) | $4.16$6.48 | −35.8% |
| EPS (Diluted) | $4.15$6.46 | −35.8% |
05—Questions
Frequently Asked Questions
Why did LyondellBasell's earnings decline in 2024?
Operating income fell 40% to $1.82 billion, mainly because of impairments of $949 million, including an $837 million non-cash charge on European assets. Margins also weakened in the I&D and Refining segments on lower crude oil prices and gasoline crack spreads, and soft global demand pressured polyolefin margins. Partial offsets came from industry cracker outages that benefited O&P-Americas olefins margins.
What is happening with the European assets?
In 2024 the company announced a strategic review of non-core European assets, including five O&P-EAI facilities in France, Germany, the United Kingdom, Spain and Italy, plus the European PO joint venture in the Netherlands. The five sites contribute approximately 30% of O&P-EAI production capacity. The review is ongoing, and the company launched a marketing effort in Q4 2024 to gauge market interest.
How is the company returning cash to shareholders?
The company paid dividends of $1.72 billion in 2024 ($5.27 per share) and repurchased shares for $195 million. Over the long term it targets shareholder returns of 70% of free cash flow, defined as operating cash flow less capital expenditures. At February 25, 2025, about 31.1 million shares remained under the current repurchase authorization, which runs through November 24, 2025.
What are the main near-term outlook items for 2025?
Management expects a gradual recovery in oxyfuels margins over the summer months, supported by seasonal gasoline specifications and strong octane premiums. Refining operations cease in Q1 2025. Planned first-quarter operating rates are about 80% for O&P-Americas, 75% for O&P-EAI and 80% for I&D. Capital expenditures are planned at approximately $1.9 billion, and tariff and trade uncertainties are cited as potential headwinds.
What are the key risks highlighted in the filing?
Key risks include cyclical oversupply in chemicals, volatile raw material and energy costs tied to crude oil and natural gas prices, unplanned operating interruptions, and international exposure to currency, political and tariff risks. The filing also flags climate and plastics regulation, circularity and emissions goals, and a pending Missouri class action over plastics recyclability. Total debt of $11.15 billion and a maximum leverage covenant of 3.50 to 1.00 under the revolving credit facility are also noted.
06—Continue