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Jun 30, 2022

LyondellBasell Q2 2022 Earnings Report

Reported strong second quarter earnings driven by record Intermediates & Derivatives segment results and exceptional refining margins.

Key Takeaways

LyondellBasell reported net income of $1.6 billion, or $4.98 per share, for the second quarter of 2022. EBITDA was $2.4 billion, or $2.5 billion excluding LCM and impairment. The company's global portfolio delivered strong earnings and cash generation, driven by record results from the Intermediates & Derivatives segment and exceptional refining margins.

Net Income: $1.6 billion, $1.7 billion excluding LCM and impairment

Diluted earnings per share: $4.98 per share, $5.19 per share excluding LCM and impairment

EBITDA: $2.4 billion, $2.5 billion excluding LCM and impairment

Record Intermediates & Derivatives segment quarterly EBITDA

Total Revenue
$14.8B
Previous year: $11.6B
+28.3%
EPS
$5.19
Previous year: $6.13
-15.3%
Gross Profit
$2.57B
Previous year: $2.89B
-10.9%
Cash and Equivalents
$1.6B
Previous year: $1.38B
+15.9%
Free Cash Flow
$1.07B
Previous year: $1.9B
-43.8%
Total Assets
$37B
Previous year: $37.3B
-0.6%

LyondellBasell

LyondellBasell

Forward Guidance

The power of our business portfolio is providing resilience during the third quarter with continued strength in demand from packaging markets and favorable margins for our oxyfuels and refined products. Moderating demand and elevated costs for feedstocks and energy are likely to compress margins across most of the company's businesses in the third quarter.

Positive Outlook

  • Continued strength in demand from packaging markets
  • Favorable margins for oxyfuels
  • Favorable margins for refined products
  • Potential benefits from China's reopening could provide tailwinds for our businesses toward the end of 2022
  • New propylene oxide capacity will provide a meaningful addition to our earnings starting in 2023

Challenges Ahead

  • Moderating demand
  • Elevated costs for feedstocks
  • Elevated costs for energy
  • Likely to compress margins across most of the company's businesses
  • Carefully monitoring impacts from inflation, supply chain challenges and slowing economic conditions