LyondellBasell Industries (LYB) Q4 2024 earnings summary

Executive summary

• Achieved $1.4B net income and $4.3B adjusted EBITDA in 2024, with $3.8B cash from operations and a 90% cash conversion ratio, despite industry headwinds.

• Returned $1.9B to shareholders via dividends and repurchases, marking the 14th consecutive year of dividend growth.

• Advanced portfolio transformation with divestments, refinery exit, European asset review, and growth in Circular & Low Carbon Solutions (CLCS), which saw 65% YoY volume growth.

• Maintained industry-leading safety performance, with record-low injury rates and several sites surpassing 10+ years injury-free.

• Announced CFO transition: Agustin Izquierdo to succeed Michael McMurray effective March 1, 2025.

Financial highlights

• 2024 net income: $1.4B; adjusted net income: $2.1B; diluted EPS: $4.15; adjusted EPS: $6.40; adjusted EBITDA: $4.3B.

• Cash from operating activities: $3.8B; cash and equivalents at year-end: $3.4B; available liquidity: $8.0B.

• $1.8B invested in capital expenditures; $1.7B in dividends and $195M in share repurchases.

• Q4 2024 net loss of $603M due to $852M in identified items, mainly non-cash asset write-downs and refinery exit costs.

• Cash conversion rate at 90% in 2024; net debt to EBITDA (ex. identified items) at 1.8x.

Outlook and guidance

• Expects gradual demand recovery in 2025, with seasonal improvements in Q1 and ongoing industry downtime tightening supply.

• 2025 CapEx planned at $1.9B, with $700M for growth and $1.2B for sustaining investments; net interest expense $390M; effective tax rate 17%.

• Dividend growth expected to continue, subject to board approval in May.

• Refining operations to cease in Q1 2025, supporting growth in circular and low-carbon products.

• Q1 2025 operating rates: O&P Americas ~80%, O&P EAI ~75%, I&D ~80%.