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Sep 30, 2023
LyondellBasell Q3 2023 Earnings Report
LyondellBasell reported resilient results and outstanding cash conversion amid challenging market conditions.
Key Takeaways
LyondellBasell reported net income of $0.7 billion, or $2.29 per diluted share for Q3 2023. The company's EBITDA was $1.4 billion. Exceptional oxyfuels margins contributed to a record Intermediates & Derivatives EBITDA of $708 million during the third quarter. The company generated $1.7 billion in cash from operating activities and achieved 102% cash conversion over the past twelve months.
Net Income: $0.7 billion, $0.8 billion excluding identified items
Diluted earnings per share: $2.29 per share; $2.46 per share excluding identified items
EBITDA and EBITDA excluding identified items: $1.4 billion
Record Intermediates & Derivatives quarterly EBITDA supported by exceptional oxyfuels margins
Forward Guidance
In the fourth quarter, the company expects seasonally softer demand across most businesses. Higher feedstock costs, new industry capacity and the slow pace of Chinese demand growth continue to pressure global olefins and polyolefins margins. Oxyfuels and refining margins are expected to decrease following the conclusion of the summer driving season.
Positive Outlook
- Implementation of LyondellBasell's long-term strategy remains our top priority.
- One year after launching our Value Enhancement Program, we are highly confident we will exceed our 2023 recurring annual EBITDA exit run-rate target of $200 million.
- The three pillars of our strategy reinforce each other.
- By stepping up our performance and culture with a pivot toward value creation, LyondellBasell will be able to grow and upgrade our core while building a profitable Circular and Low Carbon Solutions business.
- Looking ahead, we will continue to leverage our unique advantages to position LyondellBasell for a sustainable future
Challenges Ahead
- Seasonally softer demand across most businesses is expected.
- Higher feedstock costs continue to pressure global olefins and polyolefins margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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