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Dec 31, 2022
LyondellBasell Q4 2022 Earnings Report
Reported net income and EPS, while advancing strategic priorities and greenhouse gas emission reduction targets.
Key Takeaways
LyondellBasell reported a net income of $353 million, or $1.07 per share, for Q4 2022. The company's EBITDA was $792 million, or $865 million excluding identified items. The company reduced operating rates to match lower demand and decreased working capital by more than $700 million during the fourth quarter.
Net Income: $353 million, $427 million excluding identified items
Diluted earnings per share: $1.07 per share, $1.29 per share excluding identified items
EBITDA: $792 million, $865 million excluding identified items
Delivered $1.6 billion of cash from operating activities
LyondellBasell
LyondellBasell
Forward Guidance
Challenging market conditions are expected to persist through the first half of 2023. LyondellBasell is aligning production with global demand trends and expects first quarter average utilization rates for the assets operated by the company to be 80% for each of the Olefins & Polyolefins and Intermediates & Derivatives segments. Start-up activities for the new PO/TBA capacity in Houston remain on track for the end of the first quarter 2023.
Positive Outlook
- Demand from consumer packaging, oxyfuels and refining markets remained stable in January.
- Moderating energy and feedstock costs are providing some offsets to tepid global demand.
- LyondellBasell is aligning production with global demand trends
- Start-up activities for the new PO/TBA capacity in Houston remain on track for the end of the first quarter 2023.
- The company expects typical spring and summer seasonal demand improvements and is prepared to leverage any increased economic activity in China as the year progresses.
Challenges Ahead
- Challenging market conditions are expected to persist through the first half of 2023.
- Tepid global demand
- Price and margin pressures from new supply
- Customer destocking
- Weak demand in petrochemical markets