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Dec 31, 2021
LyondellBasell Q4 2021 Earnings Report
LyondellBasell reported record profitability driven by robust demand and tight markets, while also advancing circularity and climate commitments.
Key Takeaways
LyondellBasell reported a net income of $0.7 billion, or $2.18 per share, for Q4 2021. Excluding LCM and impairment, net income was $1.2 billion, or $3.63 per share. The company achieved record profitability in 2021, supported by strong demand and recent growth investments. The company reduced long-term debt by $1.7 billion during the quarter and returned $0.8 billion to shareholders through dividends and share repurchases.
Net income for Q4 2021 was $0.7 billion, or $2.18 per share.
Excluding LCM and impairment, net income was $1.2 billion, or $3.63 per share.
EBITDA for Q4 2021 was $1.4 billion, or $2.0 billion excluding LCM and impairment.
The company reduced long-term debt by $1.7 billion during the quarter.
LyondellBasell
LyondellBasell
Forward Guidance
LyondellBasell expects continued strength in demand for its products in 2022, supported by forecasts for above-average GDP growth. The company is closely monitoring rising feedstock and energy costs, particularly at its European operations. Elevated levels of ethylene industry maintenance activities scheduled for the first half of 2022 are likely to constrain supply. Tight markets for acetyls and propylene oxide are expected to continue to drive strong profitability within the I&D segment.
Positive Outlook
- Continued strength in demand for products due to above-average GDP growth forecasts in 2022.
- Businesses should benefit from increased demand for both goods and services as vaccinations facilitate a more sustainable global reopening and supply chains normalize.
- Tight markets for acetyls and propylene oxide will continue to drive strong profitability within the I&D segment.
- Advanced Polymers Solutions segment benefited from increased order volumes for our products used in automotive production in January.
- Expanding production with the commissioning of new facilities in China and the U.S. during 2022.
Challenges Ahead
- Supply chain disruptions and virus surges have been restraining pent-up consumer demand across the global economy.
- Closely monitoring rising feedstock and energy costs, particularly at European operations.
- Elevated levels of ethylene industry maintenance activities scheduled for the first half of 2022 are likely to constrain supply.
- Higher costs for energy and feedstocks compressed margins, particularly in Europe during the fourth quarter.
- Planned maintenance constrained production at two of our European crackers.