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Dec 31, 2024
LyondellBasell Q4 2024 Earnings Report
LyondellBasell reported a net loss due to asset write-downs and refinery exit costs, but demonstrated strong cash generation and progress on strategic goals.
Key Takeaways
LyondellBasell reported a net loss of $603 million for Q4 2024, impacted by $852 million in identified items, including asset write-downs and refinery exit costs. Excluding these items, net income was $249 million. Despite challenging market conditions, the company generated strong cash flow and advanced its strategic objectives, including growing its Circular & Low Carbon Solutions (CLCS) business.
Net loss of $603 million, or $1.87 per share, impacted by identified items of $852 million.
EBITDA was $(409) million, or $689 million excluding identified items.
Volumes in the Circular and Low Carbon Solutions (CLCS) business grew by 65% year-over-year during 2024.
Cash and cash equivalents totaled $3.4 billion at year-end, with $8.0 billion in available liquidity.
LyondellBasell
LyondellBasell
Forward Guidance
LyondellBasell anticipates seasonal demand improvements across most product lines in the first quarter of 2025. The company expects a gradual recovery in oxyfuel margins over the summer months. Refining operations will cease in the first quarter of 2025.
Positive Outlook
- Seasonal demand improvements are expected across most product lines during the first quarter.
- Reductions in interest rates, moderation of inflation, and pent-up demand should support increased consumption of durable goods.
- Increased driving and summertime gasoline specifications should lead to typical seasonal improvements in oxyfuels margins.
- LYB expects a gradual recovery in oxyfuel margins over the summer months, with strong octane premiums and the relatively low cost of butane raw materials supportive of long-term oxyfuels fundamentals.
- The company's refining operations will cease in the first quarter of 2025, a strategic milestone paving the way for continued growth in circular and low-carbon feedstocks and products.
Challenges Ahead
- Entering 2025, LYB remains watchful and prepared for the macroeconomic catalysts
- Tariff and trade uncertainties are potential headwinds.
- LYB is aligning first quarter operating rates with global demand and expects to operate Olefins & Polyolefins Americas assets at approximately 80%
- LYB is aligning first quarter operating rates with global demand and expects to operate Olefins & Polyolefins EAI assets at approximately 75%
- LYB is aligning first quarter operating rates with global demand and expects to operate Intermediates & Derivatives assets at approximately 80%.