LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q3 2021 Earnings Presentation
19 slides from LyondellBasell Industries NV's earnings presentation, Oct 29, 2021
Slide 1: Third Quarter 2021 Earnings
THIRD QUARTER 2021 EARNINGS October 29, 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: Third Quarter 2021 Highlights
THIRD QUARTER 2021 HIGHLIGHTS ROBUST DEMAND AND TIGHT MARKETS SUPPORTED STRONG MARGINS $1.8 B $5.25 $2.7 B $2.1 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES 3
Slide 4: Capturing the Rebound
CAPTURING THE REBOUND SOLID PERFORMANCE POWERED BY A WELL-BALANCED PORTFOLIO EBITDA ex. LCM and Impairment USD, billions $ 3.5 STRONG CONSUMER & INDUSTRIAL DEMAND 3.0 Driven by manufactured goods and service industries 2.5 2.0 INCREASING COSTS 1.5 Higher ethane, naphtha, natural gas and butane price
Slide 5: 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 3Q21 YTD LyondellBasell ACC Top Quartile 5 Source: American Chemistry Council (ACC) and LyondellBasell. Note: Medium and large companies only. Number of hours worke
Slide 6: Goals & Pathway to Net Zero
GOALS & PATHWAY TO NET ZERO WE ARE COMMITTED TO ADDRESS THE GLOBAL CHALLENGE OF CLIMATE CHANGE Improve energy efficiency 2030 30% reduction in scope 1 & 2 Procure at least 50% of electricity from renewable sources CO2 emissions Minimize flare emissions Source lower-emitting fuels such as hydrogen 20
Slide 7: Strong Cash Generation
STRONG CASH GENERATION RECORD CASH FROM OPERATING ACTIVITIES DRIVEN BY GROWTH INVESTMENTS AND STRONG MARKETS Cash from Operating Activities USD, billions $5.4 B $7 CASH FROM OPERATING ACTIVITIES 6 3Q21 LTM 5 4 3 +12% 2 FREE OPERATING CASH FLOW 1 3Q21 vs. 2Q21 2016 2017 2018 2019 2020 3Q21 LTM 15% Fr
Slide 8: Cash Generation and Deployment
CASH GENERATION AND DEPLOYMENT STRENGTHENING OUR BALANCE SHEET AND DELIVERING SHAREHOLDER RETURNS USD, billions DELIVERING RESULTS $4 Generated $2.1 B in cash from operating activities 3 PROVIDING VALUE FOR SHAREHOLDERS 2 Paid $380 MM in dividends $1.9 $1.5 Repurchased $89 MM of our shares 1 Investe
Slide 9: 3Q21 Segment Highlights
3Q21 SEGMENT HIGHLIGHTS ROBUST DEMAND AND TIGHT MARKET CONDITIONS SUPPORTED STRONG MARGINS EBITDA variance by segment USD, millions $3,018 $(8) $122 $63 $2,691 $(234) $(14) $(248) $(8) 2Q21 O&P O&P I&D APS Refining Technology Other 3Q21 Americas EAI O&P Americas O&P EAI I&D APS Refining Technology O
Slide 10: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS ROBUST DEMAND DRIVING SOLID PERFORMANCE EBITDA ex. LCM USD, millions $1,576 $1,568 OLEFINS Margins declined as we purchased ethylene to supplement production $867 Volumes declined due to unplanned maintenance $722 $404 POLYOLEFINS Strong demand drove polyolefins spre
Slide 11: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL HIGHER FEEDSTOCK COSTS AND LOWER SEASONAL DEMAND REDUCED MARGINS AND VOLUMES EBITDA ex. LCM USD, millions OLEFINS $708 Margins decreased driven by higher feedstock costs, partially offset by higher ethylene and co-product prices Volumes declined d
Slide 12: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES MARGIN DECLINES IN MOST BUSINESSES DRIVEN BY HIGHER COSTS EBITDA ex. LCM USD, millions PO & DERIVATIVES $596 Margins declined slightly from historical high in 2Q Volumes increased due to strong durable goods demand $348 INTERMEDIATE CHEMICALS $245 Margins decreased in mos
Slide 13: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS VOLUMES REDUCED DUE TO CUSTOMERS’ SUPPLY CHAIN CONSTRAINTS EBITDA ex. LCM USD, millions $126 $135 COMPOUNDING & SOLUTIONS $129 $117 $121 Margins increased Volumes decreased with semiconductor shortages constraining production in automotive, appliances and other industries
Slide 14: Refining
REFINING MARGIN IMPROVED WITH HIGHER PRODUCT PRICES AND LOWER RINS COSTS EBITDA ex. LCM and Impairment USD, millions $41 CRUDE THROUGHPUT 97% utilization rate $(74) $(81) $(121) $(110) MARGIN Higher prices for by-products Lower costs for RINs Maya 2-1-1 increased by $1.65 to $23.11 3Q20 4Q20 1Q21 2Q
Slide 15: Technology
TECHNOLOGY RECORD QUARTER BENEFITTING FROM INCREASED LICENSING REVENUE EBITDA USD, millions $155 LICENSING Higher revenue $111 $94 $92 CATALYST Steady results $45 3Q20 4Q20 1Q21 2Q21 3Q21 15
Slide 16: Disciplined Investments Driving Growth and Value
DISCIPLINED INVESTMENTS DRIVING GROWTH AND VALUE A CLEAR PATH FOR INCREASING EBITDA 2023 2022 4Q 2020 PO/TBA Sinopec PO/SM JV 4Q 2020 Louisiana Channelview, Texas Ningbo, China 3Q 2020 Advanced Integrated PE JV Bayport, Texas Estimated EBITDA 2Q 2020 Bora Integrated Polymer Lake Charles, LA Estimate
Slide 17: Increased Earnings Power
INCREASED EARNINGS POWER LARGER ASSET BASE TO PROVIDE ADDITIONAL EARNINGS EBITDA ex. LCM and Impairment USD, billions $10 ADDITIONAL EARNINGS POWER 9 8 APS volume and synergies 7 Hyperzone HDPE volume and margin 6 China integrated cracker JV 5 4 Louisiana integrated polyethylene JV 3 China propylene
Slide 18: Summary & Outlook
SUMMARY & OUTLOOK STRONG MARKETS WITH MODERATING MARGINS REOPENING DEMAND MARGINS MODERATING PENT-UP DEMAND Vaccination roll out will continue to drive Feedstock prices and energy costs are LyondellBasell is well-positioned to benefit economic progress increasing and winter seasonality is expected f
Slide 19: Well Positioned Company
WELL POSITIONED COMPANY STRONG MOMENTUM WITH EMBEDDED GROWTH AND SUSTAINABLE VALUE LEADING ADVANTAGED MAXIMIZING CONSISTENT FINANCIAL POSITIONS FREE CASH FLOW STRATEGY Reliable, cost efficient operator Increased earnings power Deleveraging on target Repurchasing shares Larger global portfolio Effici
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