LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q1 2019 Earnings Presentation
17 slides from LyondellBasell Industries NV's earnings presentation, Apr 26, 2019
Slide 1: First Quarter 2019 Earnings
First Quarter 2019 Earnings April 26, 2019 www.lyondellbasell.com
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 which are believed t
Slide 3: First Quarter 2019 Highlights
First Quarter 2019 Highlights Financial Highlights Delivering strong results $ in millions, except per share data 1Q18 4Q18 1Q19 ▪ Diluted EPS: $2.19 Net Income $1,231 $692 $817 ▪ EBITDA: $1.4 billion EBITDA $1,913 $1,212 $1,428 Diluted Earnings ($/share) $3.11 $1.79 $2.19 ▪ O&P – EAI EBITDA: 133% 1
Slide 4: LyondellBasell – An Industry Leader in Safety Performance
LyondellBasell – An Industry Leader in Safety Performance Injuries per 200,000 Hours Worked 0.80 0.70 ACC Average 0.60 0.50 0.40 0.30 0.22 0.21 0.21 0.18 0.19 0.20 0.10 2015 2016 2017 2018 1Q19 Ferrara, Italy Source: American Chemistry Council (ACC), LYB. ACC data includes all available periods. Num
Slide 5: Diverse Global Business Portfolio Provides Resilience
Diverse Global Business Portfolio Provides Resilience EBITDA 1Q18 LTM 1Q19 LTM Strong: USD, millions $3,000 I&D performance Durable: 2,000 Polyethylene chain margin Challenging: Refining margins 1,000 Growing: Technology licensing Olefins & Olefins & Intermediates Advanced Refining Technology Polyol
Slide 6: Cash Generation and Deployment
Cash Generation and Deployment First Quarter 2019 Delivering strong results: USD, millions Cash from operating activities $657 MM $3,000 Managing debt portfolio: $1B April 2019 bonds 2,000 $1B general corporate purposes 1,837 1,315 Growing through investment: 1,000 Progressing construction on Hyperz
Slide 7: Strong Cash Generation With Ample Liquidity
Strong Cash Generation With Ample Liquidity Cash From Operating Activities Total Liquidity(2) (1) Free Operating Cash Flow Sustaining Capex USD, millions USD, millions $7,000 $10,000 6,000 8,000 5,000 4,000 6,000 3,000 4,000 2,000 2,000 1,000 2015 2016 2017 2018 1Q19 LTM 2015 2016 2017 2018 1Q19 1Q1
Slide 8: Olefins and Polyolefins – Americas
Olefins and Polyolefins – Americas Well-Supplied Markets Compress Polyolefin Chain Margins EBITDA USD, millions $800 756 704 671 631 600 516 400 200 1Q18 2Q18 3Q18 4Q18 Volume Margin Other 1Q19 1Q19 Performance vs. 4Q18(1) EBITDA Margin Volume Olefins ▪ Ethylene price down $42/MT Polyethylene Polypr
Slide 9: Olefins and Polyolefins – Europe, Asia, and International
Olefins and Polyolefins – Europe, Asia, and International Strong Polymer Volumes Following an Unusually Low 4Q EBITDA USD, millions $500 419 400 355 296 300 262 200 127 100 1Q18 2Q18 3Q18 4Q18 Volume Margin Other 1Q19 1Q19 Performance vs. 4Q18(1) EBITDA Margin Volume Olefins ▪ Planned maintenance co
Slide 10: Industry Capacity Additions Serving Strong Global Demand
Industry Capacity Additions Serving Strong Global Demand Global Ethylene Supply & Demand Global Polyethylene Supply & Demand Capacity Capacity Demand Demand Effective Operating Rate - 1Q19 Forecast Effective Operating Rate - 1Q19 Forecast ton, millions ton, millions 250 100% 350 100% 300 95% 95% 200
Slide 11: Intermediates and Derivatives Continued Strong Demand in a Balanced Market
Intermediates and Derivatives Continued Strong Demand in a Balanced Market EBITDA USD, millions $800 642 600 486 504 379 390 400 200 1Q18 2Q18 3Q18 4Q18 Volume Margin Other 1Q19 1Q19 Performance vs. 4Q18(1) EBITDA Margin Volume Propylene Oxide and Derivatives ▪ Planned maintenance completed in 4Q In
Slide 12: Circular Steam Project – Advancing a Sustainable Solution
Circular Steam Project – Advancing a Sustainable Solution Reduces energy to support a sustainable economy Contributes to Dutch government CO2 reduction targets Reduces operating cost structure Rotterdam, The Netherlands www.lyondellbasell.com 12
Slide 13: Advanced Polymer Solutions Seasonal Improvement and Capture of A. Schulman Synergies
Advanced Polymer Solutions Seasonal Improvement and Capture of A. Schulman Synergies EBITDA(1) USD, millions Annualized Synergy Run Rate(3) $200 4Q18 Cumulative 1Q19 148 USD, millions 150 123 121 $100 $85 100 86 70 $47 50 50 1Q18 2Q18 3Q18 4Q18 Volume Margin Other 1Q19 1Q19 Performance vs. 4Q18(2) E
Slide 14: Advanced Polymer Solutions Product Spotlight: Engineered Plastics
Advanced Polymer Solutions Product Spotlight: Engineered Plastics Nylon Compound Styrenic Alloy ■ Alkaline battery end cap assembly ■ GPS domes for farm equipment ▪ Resolves battery fluid leaking ▪ Improves UV stability ▪ Extends battery life ▪ Improves radio frequency transmission ▪ Improves manufa
Slide 15: Refining Margins Improved but Limited by Soft Market Conditions
Refining Margins Improved but Limited by Soft Market Conditions EBITDA USD, millions $150 104 84 63 50 -50 (15) (84) -150 1Q18 2Q18 3Q18 4Q18 Volume Margin Other 1Q19 1Q19 Performance vs. 4Q18(1) EBITDA Margin Volume Houston Refinery ▪ Crude throughput: 259 MBPD ▪ Maya 2-1-1 up $2.66 to $13.55 Houst
Slide 16: Maya 2-1-1 Improving with Gasoline Crack Spread
Maya 2-1-1 Improving with Gasoline Crack Spread LLS-Maya spread improved gradually during 1Q19 Maya pricing strong relative to other crudes USGC ULSD – LLS spread March - April: $7-9/bbl Houston, Texas LLS-Maya USGC RBOB - LLS USGC ULSD - LLS USD per bbl $30 25 20 15 10 5 -5 1Q18 2Q18 3Q18 4Q18 Jan
Slide 17: First Quarter Summary and Outlook
First Quarter Summary and Outlook Summary Outlook Diluted earnings per share: $2.19 Continued robust global demand O&P – EAI quarterly EBITDA Seasonal margin and volume improvement: 133% improvements for most businesses Strong cash from operating activities Improved refining margins $5.1 billion for
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