LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q4 2021 Earnings Presentation
19 slides from LyondellBasell Industries NV's earnings presentation, Jan 28, 2022
Slide 1: Fourth Quarter 2021 Earnings
FOURTH QUARTER 2021 EARNINGS January 28, 2022 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: 2021 Highlights
2021 HIGHLIGHTS ROBUST DEMAND AND TIGHT MARKETS LED TO RECORD RESULTS $5.6 B $16.75 $8.7 B $7.6 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $6.1 B $18.19 $9.3 B $5.7 B NET INCOME DILUTED EPS EBITDA FREE ex. LCM and Impairment ex. LCM and Impairment ex. LCM and Impairment CASH FLOW
Slide 4: Safety Performance
SAFETY PERFORMANCE OUR FOCUS ON SAFETY REMAINS CONSISTENT Injuries per 200,000 hours worked 0.6 0.5 0.4 0.3 0.2 0.1 2017 2018 2019 2020 2021 LyondellBasell ACC Top Quartile 4 Sources: American Chemistry Council (ACC) and LyondellBasell. Note: Medium and large companies only. Number of hours worked i
Slide 5: Capturing Benefits from Strong Markets
CAPTURING BENEFITS FROM STRONG MARKETS SOLID FOURTH QUARTER PERFORMANCE POWERED BY A DIVERSE GLOBAL PORTFOLIO EBITDA ex. LCM and Impairment USD, billions $ 3.5 HEALTHY GLOBAL MARKETS 3.0 Normalizing supply chains and continued benefits from reopening 2.5 2.0 INCREASING COSTS 1.5 Higher ethane, napht
Slide 6: Stepping Up Earnings
STEPPING UP EARNINGS STRONG MARKETS AND LARGER ASSET BASE GENERATING ADDITIONAL EARNINGS EBITDA ex. LCM and Impairment USD, billions $10 $9.3 9 8 7 $6.7 6 5 4 3 2 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 EBITDA EBITDA ex. LCM and Impairment 2011-2019 Average EBITDA ex. LCM and Impair
Slide 7: Stepping Up Circularity & Climate Ambitions
STEPPING UP CIRCULARITY & CLIMATE AMBITIONS COMMITTED TO HELP ADDRESS THE GLOBAL CHALLENGES OF CLIMATE CHANGE Launched our Circulen portfolio of polymers 30% reduction in scope 1 & 2 CO2 emissions by 2030 Reach net zero scope 1 & 2 emissions by 2050 7 Note: 2030 goal is relative to 2020 levels. Plea
Slide 8: Stepping Up Cash Generation
STEPPING UP CASH GENERATION RECORD CASH FROM OPERATING ACTIVITIES DRIVEN BY STRONG MARKETS AND GROWTH INVESTMENTS Cash from Operating Activities USD, billions $7.6 B $8 CASH FROM OPERATING ACTIVITIES 7 2021 6 5 4 82% 3 CASH CONVERSION 2 2021 1 2016 2017 2018 2019 2020 2021 23% Free Operating Cash Fl
Slide 9: Cash Generation and Deployment
CASH GENERATION AND DEPLOYMENT STRENGTHENING OUR BALANCE SHEET AND DELIVERING SHAREHOLDER RETURNS USD, billions $12 DELIVERING RESULTS 10 Generated $7.6 B in cash from operating activities 8 GENERATING VALUE FOR SHAREHOLDERS 6 Paid $1.5 B in dividends Repurchased $0.5 B of our shares 4 Invested in g
Slide 10: 4Q21 Segment Highlights
4Q21 SEGMENT HIGHLIGHTS STRONG DEMAND OFFSET BY INCREASED COSTS FOR FEEDSTOCKS AND ENERGY EBITDA variance by segment ex. LCM and impairment USD, millions $2,691 $(306) $18 $19 $2,019 $109 $(319) $(96) $(97) 3Q21 O&P O&P I&D APS Refining Technology Other 4Q21 Americas EAI O&P Americas O&P EAI I&D APS
Slide 11: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS MARGINS DECLINED AS PRICES FOR MONOMERS AND POLYMERS DECREASED EBITDA USD, millions $1,576 $1,568 OLEFINS $1,262 Margins declined driven by lower ethylene and propylene prices $867 $722 POLYOLEFINS Spreads decreased with declines in polyolefins prices outpacing decli
Slide 12: Polyethylene Market Outlook
POLYETHYLENE MARKET OUTLOOK SUPPLY CONSTRAINTS AND TYPICAL SEASONAL DEMAND GROWTH EXPECTED TO DRIVE PRICING North America Industry Polyethylene 2012-2019 Average 5% 3% STRONG DEMAND 1Q demand typically stronger than 4Q 0% HIGHER INDUSTRY MAINTENANCE -3% 1Q22 planned downtime 3x higher than historica
Slide 13: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL HIGHER FEEDSTOCK AND ENERGY COSTS AND LOWER SPREADS REDUCED MARGINS EBITDA ex. LCM USD, millions OLEFINS Margins decreased driven by higher feedstock and $708 energy costs, partially offset by higher ethylene and propylene prices Volumes declined
Slide 14: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES INCREASED VOLUMES OFFSET BY MARGIN DECLINES DUE TO INVENTORY VALUATION CHARGES AND HIGHER FEEDSTOCK COSTS EBITDA ex. LCM INVENTORY VALUATION USD, millions LIFO charges of ~$95 MM $596 PO & DERIVATIVES Margins increased driven by strong demand Volumes decreased due to plan
Slide 15: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS CUSTOMERS’ SUPPLY CHAIN CONSTRAINTS, HIGH RAW MATERIAL COSTS AND INVENTORY VALUATION CHARGES EBITDA ex. LCM USD, millions INVENTORY VALUATION LIFO charges of ~$55 MM $135 $126 $129 $121 COMPOUNDING & SOLUTIONS Margins decreased due to higher raw material costs Volumes decl
Slide 16: Refining
REFINING MARGIN INCREASED WITH INVENTORY VALUATION BENEFITS, IMPROVED PRODUCT MIX AND HIGHER MAYA 2-1-1 EBITDA ex. LCM and Impairment USD, millions $150 $41 CRUDE THROUGHPUT 99% utilization rate $(74) $(81) $(110) MARGIN LIFO benefits of ~$50 MM Optimization of gasoline blending Maya 2-1-1 increased
Slide 17: Technology
TECHNOLOGY RECORD QUARTER BENEFITING FROM HIGHER LICENSING REVENUE AND CATALYST VOLUMES EBITDA USD, millions $173 $155 LICENSING $94 Revenue increased $92 CATALYST $45 Record catalyst volumes supported by higher Asian demand 4Q20 1Q21 2Q21 3Q21 4Q21 17
Slide 18: LyondellBasell 2022 Modeling Information
LYONDELLBASELL 2022 MODELING INFORMATION FINANCIAL Sustaining CAPEX METRICS CAPITAL Total CAPEX ~$1.2 B EXPENDITURES Profit Generating CAPEX ~$2.1 B Net Interest Expense ~$0.9 B ~$340 MM Depreciation & Amortization ~$1.3 B 1Q 2Q 3Q 4Q Pension Contribution MAJOR ~$70 MM PLANNED O&P - AM ~$125 MM Pens
Slide 19: Stepping Up
STEPPING UP STRONG MOMENTUM WITH CONTINUED DISCIPLINE, FURTHER GROWTH AND SUSTAINABLE VALUE EARNINGS CAPITAL CIRCULARITY & CLIMATE ALLOCATION COMMITMENTS Larger global portfolio Strong dividend and Growing Circulen products share repurchases to 2 million tons by 2030 Commissioning 2 new PO plants De
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