LyondellBasell Q1 2024 Earnings Report
Key Takeaways
LyondellBasell reported a net income of $473 million, or $1.44 per diluted share, for the first quarter of 2024. The company's EBITDA was $1.0 billion, or $1.1 billion excluding identified items. The use of cash by operating activities during the quarter was due to a build in working capital driven by expected seasonality as well as higher volumes and prices in several businesses.
Net Income: $473 million, $501 million excluding identified items.
Diluted earnings per share: $1.44 per share; $1.53 per share excluding identified items.
EBITDA: $1.0 billion, $1.1 billion excluding identified items.
Returned $408 million in dividends to shareholders
LyondellBasell
LyondellBasell
Forward Guidance
In the second quarter, the company expects seasonal demand improvements across most businesses. Low costs for natural gas and NGLs should continue to benefit margins from LYB's North American and Middle East production relative to higher oil-based costs in most other regions. With the start of the summer driving season, oxyfuels and refining margins are expected to increase with higher gasoline crack spreads and lower butane costs. During the second quarter, LYB expects to operate its assets in line with market demand with average operating rates of 85% for global olefins and polyolefins assets and 80% for the Intermediates & Derivatives assets. The company continues to monitor targeted stimulus efforts and remains watchful for demand improvements in China.
Positive Outlook
- Seasonal demand improvements across most businesses
- Low costs for natural gas and NGLs should continue to benefit margins from LYB's North American and Middle East production
- Oxyfuels and refining margins are expected to increase with higher gasoline crack spreads
- Oxyfuels and refining margins are expected to increase with lower butane costs.
- Sales volumes for recycled and renewable-based polymers are rapidly growing through our comprehensive approach to building a leading CLCS business.