LyondellBasell Industries (LYB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $573 million ($1.75 per diluted share), or $617 million ($1.88 per share) excluding identified items; EBITDA reached $1.2 billion, with cash from operations at $670 million and $479 million returned to shareholders.

• O&P segment margins improved, while I&D and Refining margins declined; nine-month results were flat year-over-year as segment gains offset declines.

• Strategic actions included the sale of the ethylene oxide and derivatives business, acquisition of a 35% stake in the NATPET JV, and a strategic review of European assets.

• Construction began on the MoReTec-1 advanced recycling plant in Germany, and the company exceeded its 2030 renewable electricity target.

• $1.9 billion in operating cash flow and $1.4 billion returned to shareholders via dividends and buybacks in the first nine months.

Financial highlights

• Q3 2024 sales were $10.3 billion, down from $10.6 billion in Q2 2024 and Q3 2023; nine-month sales were $30.8 billion, down 1% year-over-year.

• Q3 net income was $573 million, with adjusted net income of $617 million; Q3 EBITDA was $1.2 billion, and adjusted EBITDA was $1.21 billion.

• Cash from operating activities for Q3 was $670 million; cash and equivalents at quarter-end were $2.6 billion, with total liquidity of $7.3 billion.

• Cash conversion over the past twelve months was 77–80%.

• $1.8 billion returned to shareholders via dividends and buybacks over the last twelve months.

Outlook and guidance

• Q4 2024 expected to see softer demand due to seasonality, with higher feedstock costs moderating North American polyolefins margins.

• Oxyfuels and refining margins projected to decline further with low gasoline crack spreads; planned Q4 operating rates: 85% for North American O&P, 60% for European O&P, 75% for I&D.

• Easing interest rates in 2025 expected to improve demand for durable goods, benefiting polypropylene and I&D businesses.

• Value Enhancement Program on track to unlock $600 million recurring annual EBITDA by year-end 2024.

• Exiting refining business during Q1 2025; anticipate net cash benefit in 2025 from the refinery exit.