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Jun 30, 2024

LyondellBasell Q2 2024 Earnings Report

LyondellBasell's financial performance improved due to increased production, integrated margins, and seasonal demand.

Key Takeaways

LyondellBasell reported a net income of $924 million, or $2.82 per diluted share, for the second quarter of 2024. EBITDA was $1.6 billion, or $1.4 billion excluding identified items. The company saw increased production and improving seasonal demand, particularly in North America and Europe. LyondellBasell returned $513 million to shareholders through dividends and share repurchases and completed the divestment of the Ethylene Oxide and Derivatives (EO&D) business and acquired a 35% share in NATPET.

Net income was $924 million, or $2.82 per diluted share.

EBITDA was $1.6 billion, or $1.4 billion excluding identified items.

Cash from operating activities totaled $1.3 billion.

The company returned $513 million to shareholders through dividends and share repurchases.

Total Revenue
$10.6B
Previous year: $10.3B
+2.4%
EPS
$2.24
Previous year: $2.44
-8.2%
Gross Profit
$1.36B
Previous year: $1.44B
-5.7%
Cash and Equivalents
$2.9B
Previous year: $2.49B
+16.3%
Free Cash Flow
$864M
Previous year: $989M
-12.6%
Total Assets
$37.1B
Previous year: $36.7B
+1.0%

LyondellBasell

LyondellBasell

Forward Guidance

In the third quarter, the company expects margins to continue to benefit from low costs for natural gas and natural gas liquids utilized in LYB's North American and Middle East production relative to higher oil-based costs in most other regions. With the summer driving season underway, oxyfuels margins are expected to remain above historical levels with high octane premiums. During the third quarter, LYB expects to operate its assets in line with market demand with average operating rates of 85% for North American olefins and polyolefins (O&P) assets, 80% for European O&P assets and 75% for Intermediates & Derivatives assets.

Positive Outlook

  • Margins are expected to benefit from low costs for natural gas and natural gas liquids in North America and the Middle East.
  • Oxyfuels margins are expected to remain above historical levels with high octane premiums.
  • North American olefins and polyolefins (O&P) assets are expected to operate at 85%.
  • European O&P assets are expected to operate at 80%.
  • Intermediates & Derivatives assets are expected to operate at 75%.