LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q2 2021 Earnings Presentation
18 slides from LyondellBasell Industries NV's earnings presentation, Jul 30, 2021
Slide 1: Second Quarter 2021 Earnings
SECOND QUARTER 2021 EARNINGS July 30, 2021 1
Slide 2: Cautionary Statement and Information Related to Financial Measures
CAUTIONARY STATEMENT AND INFORMATION RELATED TO FINANCIAL MEASURES CAUTIONARY STATEMENT The statements in this presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell wh
Slide 3: Second Quarter 2021 Highlights
SECOND QUARTER 2021 HIGHLIGHTS RECORD QUARTERLY EARNINGS DRIVEN BY STRONG DEMAND AND TIGHT MARKET CONDITIONS $2.1 B $6.13 $3.0 B $1.9 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES 3
Slide 4: Safety Performance
SAFETY PERFORMANCE OUR FOCUS ON SAFETY DRIVES RELIABILITY AND PERFORMANCE Injuries per 200,000 hours worked 0.5 0.4 0.3 0.2 0.1 2017 2018 2019 2020 2Q21 YTD LyondellBasell ACC Top Quartile 4 Source: American Chemistry Council (ACC) and LyondellBasell. Note: Number of hours worked includes employees
Slide 5: Eliminating Plastic Waste, Addressing Climate Change, Supporting a Thriving Society
PUT PROJECT NAME ELIMINATING PLASTIC WASTE ADDRESSING CLIMATE CHANGE SUPPORTING A THRIVING SOCIETY Targeting production and marketing of Targeting a 15% reduction in CO2 Focusing on operating safely and with 2 MM tons of recycled and renewable- equivalent emissions per ton of zero incidents, zero in
Slide 6: Stronger for Longer
GLOBAL VACCINATION RATE STRONGER FOR LONGER GLOBAL REOPENING SUPPORTS ROBUST DEMAND THROUGH 2023 14% Jul 2021 CUSTOMER BACKLOGS U.S. Automobile Average Age 12 years 2021 WIDESPREAD VACCINATION Late 2021 Mid 2022 PERSISTANT DURABLE DEMAND Late 2022 U.S. Housing Starts 2023+ +28% 1H21 vs. 1H19 6 Sourc
Slide 7: Strong Cash Generation
STRONG CASH GENERATION DELIVERING CASH FROM RECENT GROWTH INVESTMENTS AND EXCEPTIONAL MARKETS Cash from Operating Activities $4.0 B USD, billions $7 CASH FROM OPERATING ACTIVITIES 2Q21 LTM 6 5 4 3 +82% FREE OPERATING CASH FLOW 2 2Q21 vs. 2Q19 1 2016 2017 2018 2019 2020 2Q21 LTM 10.1% Free Operating
Slide 8: Cash Generation and Deployment
CASH GENERATION AND DEPLOYMENT STRENGTHENING OUR BALANCE SHEET AND DELIVERING SHAREHOLDER RETURNS USD, billions DELIVERING RESULTS $4 Generated $1.9 B in cash from operating activities 3 PROVIDING VALUE FOR SHAREHOLDERS 2 Increased quarterly dividend by 7.6% per share $1.8 $1.5 Investing in long-ter
Slide 9: Capturing the Rebound
CAPTURING THE REBOUND STRONG PERFORMANCE POWERED BY A WELL-POSITIONED GLOBAL PORTFOLIO EBITDA ex. LCM and Impairment USD, billions $ 3.5 PERSISTENT CONSUMER & INDUSTRIAL DEMAND 3.0 Both manufactured goods and service industries 2.5 2.0 TIGHT GLOBAL MARKETS 1.5 Order backlogs and growing demand from
Slide 10: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS RECORD QUARTER BENEFITING FROM ROBUST DEMAND EBITDA ex. LCM USD, millions $1,576 OLEFINS Margins and volumes increased following 1Q Texas weather events $867 $722 POLYOLEFINS $404 Polyethylene and polypropylene prices increased $210 2Q20 3Q20 4Q20 1Q21 Volume Margin
Slide 11: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL RECORD QUARTER BENEFITING FROM ROBUST DEMAND EBITDA ex. LCM USD, millions $708 OLEFINS Margins increased driven by higher ethylene and co-product prices $412 $251 POLYOLEFINS $219 Polyethylene and polypropylene prices increased $131 2Q20 3Q20 4Q20
Slide 12: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES MARGINS EXPANDED DUE TO IMPROVING DEMAND AND HIGHER PRODUCT PRICES EBITDA ex. LCM USD, millions $596 PO & DERIVATIVES Margins at historical high due to strong demand Volumes increased following 1Q Texas weather events and planned maintenance $245 $196 INTERMEDIATE CHEMICA
Slide 13: Global Mobility Improving
U.S. GASOLINE & DISTILLATE GLOBAL MOBILITY IMPROVING CONSUMPTION INCREASING PROFITABILITY FOR LYONDELLBASELL’S OXYFUELS AND REFINING BUSINESSES 5% Jun 2021 vs. Jun 2019 NW Europe MTBE Raw Material Margin USD/ton $500 U.S. JET FUEL 400 CONSUMPTION 300 2016-2019 Quarterly 27% 200 Range Jun 2021 vs. Ju
Slide 14: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS VOLUMES REDUCED DUE TO CUSTOMERS’ SUPPLY CHAIN CONSTRAINTS EBITDA ex. LCM USD, millions $117 $135 $126 $129 COMPOUNDING & SOLUTIONS Volumes decreased with semiconductor shortages in automotive, appliances and other industries $23 ADVANCED POLYMERS Product price spreads ove
Slide 15: Refining
REFINING CRACK SPREAD IMPROVEMENTS MUTED BY HIGH RINS COST AND LOWER REFINERY GRADE PROPYLENE PRICES EBITDA ex. LCM and Impairment USD, millions CRUDE THROUGHPUT $(14) 93% utilization rate $(74) $(81) $(121) $(110) MARGIN Maya 2-1-1 increased by $6.14 to $21.46 Higher RINs cost Lower refinery grade
Slide 16: Technology
TECHNOLOGY INCREASED LICENSING REVENUES OFFSET BY LOWER CATALYST CONTRIBUTION EBITDA USD, millions LICENSING $112 $111 Increased revenue $94 $92 CATALYST Margin decline $45 2Q20 3Q20 4Q20 1Q21 2Q21 16
Slide 17: Summary & Outlook
SUMMARY & OUTLOOK DEMAND FOR OUR PRODUCTS AND ASSOCIATED FINANCIAL RESULTS SHOULD BE STRONGER FOR LONGER REOPENING DEMAND CONSTRAINED & DEFERRED DEMAND MOBILITY-DRIVEN DEMAND Vaccinations and phased reopenings Logistics disruptions and tight markets LyondellBasell is well-positioned to will drive ec
Slide 18: Stronger for Longer
STRONGER FOR LONGER DELIVERING CASH FROM RECENT GROWTH INVESTMENTS AND EXCEPTIONAL MARKETS LEADING ADVANTAGED CONSISTENT FINANCIAL MAXIMIZING POSITIONS STRATEGY FREE CASH FLOW Reliable, cost efficient operator Prioritizing deleveraging Strong cash generation Focused on a strong and Commercial agilit
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