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Mar 31, 2020
LyondellBasell Q1 2020 Earnings Report
LyondellBasell reported resilient results amidst challenging market conditions.
Key Takeaways
LyondellBasell's Q1 2020 net income was $0.1 billion, or $0.42 per share. The results were impacted by a $351 million non-cash, inventory valuation charge (LCM) and $13 million of integration costs. EBITDA was $0.6 billion, or $1.1 billion excluding LCM.
Net Income: $0.1 billion, $0.5 billion excluding LCM
Diluted earnings per share: $0.42 per share, $1.47 per share excluding LCM
EBITDA: $0.6 billion, $1.1 billion excluding LCM, resilient performance in a challenging market
Launched production at our 500,000 ton U.S. Gulf Coast high-density polyethylene plant using LyondellBasell's next-generation Hyperzone technology
Forward Guidance
The effects from the coronavirus pandemic, low crude oil pricing and a slowing economy will increasingly impact our businesses during the second quarter. In April and May, our order books indicate strong ongoing demand for our polyolefins used in consumer packaging and medical applications. Weak demand from markets for industrial and durable products is expected to persist. Our Refining and Oxyfuels & Related Products businesses will be impacted by significantly lower demand for transportation fuels.
Positive Outlook
- Taking actions to manage risk by accelerating cost savings initiatives
- Aggressively managing working capital
- Reducing 2020 capital expenditures by $500 million
- Increasing liquidity to over $5 billion during April
- Committed to maintaining a disciplined approach to capital allocation with a focus on funding our dividend
Challenges Ahead
- Effects from the coronavirus pandemic will increasingly impact businesses
- Low crude oil pricing will impact businesses
Historical Earnings Impact
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Avg. Return Before/After Earnings
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