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Mar 31, 2021
LyondellBasell Q1 2021 Earnings Report
LyondellBasell reported strong first quarter earnings driven by high demand and tight markets.
Key Takeaways
LyondellBasell reported a net income of $1.1 billion and an EBITDA of $1.6 billion for the first quarter of 2021. The company benefited from strong consumer-driven demand and industry supply constraints, which led to margin improvements. LyondellBasell repaid $500 million of debt in January and is committed to further strengthening its balance sheet through deleveraging.
Strong demand and tight markets drove margin improvements
Net Income: $1.1 billion
Diluted earnings per share: $3.18 per share
EBITDA: $1.6 billion; Highest quarterly EBITDA for O&P-Americas since 2015 and O&P-EAI since 2018
LyondellBasell
LyondellBasell
Forward Guidance
LyondellBasell is emerging stronger from the pandemic and the associated global recession. With no significant planned maintenance for our assets during the second quarter, we plan to operate at nearly full capacity worldwide to meet robust demand that is expected to persist due to low inventories and maintenance downtime across our industry.
Positive Outlook
- Strong North American integrated polyethylene margins are anticipated to continue as U.S. producers seek to fulfill domestic order backlogs, rebuild inventories and serve export demand.
- Increased mobility should drive higher demand for gasoline and jet fuel, improving margins for our Refining and Oxyfuels & Related Products businesses.
- Moderating feedstock costs will increase second quarter margins for our Advanced Polymer Solutions segment.
- Recent value-driven growth investments should enable LyondellBasell to establish new benchmarks for the profitability of our company over the coming years.
- We remain committed to further strengthening our investment grade balance sheet through deleveraging.