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Jun 30, 2023
LyondellBasell Q2 2023 Earnings Report
LyondellBasell reported positive earnings driven by improved olefins and polyolefins margins and strong oxyfuels margins, while also progressing on its Value Enhancement Program and Circular & Low Carbon Solutions business.
Key Takeaways
LyondellBasell reported net income of $715 million, or $2.18 per diluted share, for the second quarter of 2023. The company's EBITDA was $1.4 billion, or $1.5 billion excluding identified items. Global olefins and polyolefins margins improved, and the Value Enhancement Program is progressing ahead of schedule.
Net income was $715 million, or $801 million excluding identified items.
Diluted earnings per share was $2.18, or $2.44 excluding identified items.
EBITDA was $1.4 billion, or $1.5 billion excluding identified items.
The company increased its 2023 target for the Value Enhancement Program and increased the quarterly dividend by 5% to $1.25 per share.
LyondellBasell
LyondellBasell
Forward Guidance
In the third quarter, the company expects typical benefits from summer seasonality to be more than offset by soft demand due to ongoing economic uncertainty. Stagnant demand, volatile feedstock costs and new capacity in North America and China are challenging petrochemical margins. Summer demand for transportation fuels continues to support attractive oxyfuels and refining margins.
Positive Outlook
- Summer demand for transportation fuels continues to support attractive oxyfuels
- Summer demand for transportation fuels continues to support refining margins
- Advancing on the three pillars of our long-term strategy despite near-term macro challenges
- Rapid progress is laying the necessary groundwork to extend our leadership in Circular & Low Carbon Solutions
- Value Enhancement Program being embraced by our entire organization and driving sustainable value for our shareholders
Challenges Ahead
- Typical benefits from summer seasonality to be more than offset by soft demand due to ongoing economic uncertainty
- Stagnant demand is challenging petrochemical margins
- Volatile feedstock costs are challenging petrochemical margins
- New capacity in North America is challenging petrochemical margins
- New capacity in China is challenging petrochemical margins