How did LyondellBasell's Q3 2024 earnings compare with prior periods?

Net income was $573 million, or $1.75 per diluted share, versus $924 million ($2.82 per share) in Q2 2024 and $747 million ($2.29 per share) in Q3 2023. Excluding identified items, net income was $617 million ($1.88 per share), compared with $734 million in Q2 2024 and $804 million in Q3 2023. Identified items in Q3 2024 consisted of $57 million of pre-tax refinery exit costs.

What drove the strength in North American polyolefins?

The company said integrated polyethylene margins in North America increased on favorable ethane and natural gas costs and higher polyethylene prices. Its ethylene crackers ran at about 95% of capacity, and the segment's olefins results rose approximately $280 million versus Q3 2023, driven by higher ethylene margins from industry cracker downtime and lower ethane feedstock costs.

What is the status of the company's refining exit and circular business?

The Refining segment posted EBITDA of $(60) million in Q3 2024, with refinery exit costs of $57 million on a pre-tax basis in the quarter. In the circular business, the company began construction of the MoReTec-1 advanced recycling facility in Wesseling, Germany, which is expected to begin operations in 2026.

What is the company's financial position at quarter end?

At September 30, 2024, LyondellBasell held $2,635 million of cash and liquid investments and $7,285 million of total liquidity. The company generated $670 million of operating cash flow in the quarter and reported cash conversion of 77% for the last twelve months.

What does management expect for the fourth quarter?

Management expects year-end seasonality to soften demand across most businesses, and sequentially higher natural gas and ethane costs to moderate North American integrated polyolefins margins. Oxyfuels and refining margins are expected to keep declining. Fourth-quarter operating rates are planned at 85% for North American O&P assets, 60% for European O&P assets and 75% for I&D assets.

LYB 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.

LyondellBasell Industries N.V.

(NYSE: LYB) reported third quarter 2024 net income of $573 million^a, or $1.75 per diluted share, and $617 million, or $1.88 per diluted share, excluding identified items. Third quarter EBITDA was $1.2 billion ($1,174 million), and EBITDA excluding identified items was $1,211 million. Net cash provided by operating activities was $670 million in the quarter, and the company returned $479 million to shareholders through dividends and share repurchases.

Sales and other operating revenues were $10,322 million^b, compared with $10,558 million in the second quarter of 2024 and $10,625 million in the third quarter of 2023. Management attributed stronger North American integrated polyethylene margins to favorable ethane and natural gas costs and higher polyethylene prices, with the O&P-Americas segment's EBITDA rising to $758 million from $479 million a year earlier. Oxyfuels and refining margins weakened sequentially on lower crude prices and gasoline crack spreads, and the Refining segment posted negative EBITDA of $(60) million.

The company ended the quarter with $2.6 billion^c in cash and short-term investments and $7.3 billion in total liquidity. Management expects softer fourth-quarter demand from year-end seasonality and continued pressure on oxyfuels and refining margins.

The filing also reports construction start on the MoReTec-1 catalytic advanced recycling facility in Wesseling, Germany, which is expected to begin operations in 2026, and a 2030 renewable electricity target that the company says it has already exceeded. Results were furnished under Item 2.02 and are not deemed filed under the Exchange Act.

02—Key points

Key Highlights

Net income of $573 million ($1.75 per diluted share) in Q3 2024; $617 million ($1.88 per diluted share) excluding identified items.
EBITDA of $1,174 million in Q3 2024, versus $1,644 million in Q2 2024 and $1,356 million in Q3 2023.
Cash from operating activities of $670 million; capital expenditures of $368 million; $479 million returned to shareholders via $437 million in dividends and $42 million in share repurchases.
Liquidity of $7,285 million at September 30, 2024, including $2,635 million of cash and liquid investments, $3,750 million of revolving credit facility availability and $900 million of U.S. Receivables Facility availability.
O&P-Americas EBITDA rose to $758 million from $479 million a year earlier, driven by higher ethylene margins from industry cracker downtime and lower ethane feedstock costs.
Refining segment EBITDA was $(60) million, as the Maya 2-1-1 industry crack spread fell to $26 per barrel from $3 higher in the prior quarter, and refinery exit costs continued.
Outlook: fourth-quarter softer demand from year-end seasonality, higher natural gas and ethane costs, and declining oxyfuels and refining margins.

03—Questions

Frequently Asked Questions

How did LyondellBasell's Q3 2024 earnings compare with prior periods?
Net income was $573 million, or $1.75 per diluted share, versus $924 million ($2.82 per share) in Q2 2024 and $747 million ($2.29 per share) in Q3 2023. Excluding identified items, net income was $617 million ($1.88 per share), compared with $734 million in Q2 2024 and $804 million in Q3 2023. Identified items in Q3 2024 consisted of $57 million of pre-tax refinery exit costs.
What drove the strength in North American polyolefins?
The company said integrated polyethylene margins in North America increased on favorable ethane and natural gas costs and higher polyethylene prices. Its ethylene crackers ran at about 95% of capacity, and the segment's olefins results rose approximately $280 million versus Q3 2023, driven by higher ethylene margins from industry cracker downtime and lower ethane feedstock costs.
What is the status of the company's refining exit and circular business?
The Refining segment posted EBITDA of $(60) million in Q3 2024, with refinery exit costs of $57 million on a pre-tax basis in the quarter. In the circular business, the company began construction of the MoReTec-1 advanced recycling facility in Wesseling, Germany, which is expected to begin operations in 2026.
What is the company's financial position at quarter end?
At September 30, 2024, LyondellBasell held $2,635 million of cash and liquid investments and $7,285 million of total liquidity. The company generated $670 million of operating cash flow in the quarter and reported cash conversion of 77% for the last twelve months.
What does management expect for the fourth quarter?
Management expects year-end seasonality to soften demand across most businesses, and sequentially higher natural gas and ethane costs to moderate North American integrated polyolefins margins. Oxyfuels and refining margins are expected to keep declining. Fourth-quarter operating rates are planned at 85% for North American O&P assets, 60% for European O&P assets and 75% for I&D assets.

04—Continue

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