LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q1 2023 Earnings Presentation
16 slides from LyondellBasell Industries NV's earnings presentation, Apr 28, 2023
Slide 1: First Quarter 2023 Earnings
FIRST QUARTER 2023 EARNINGS April 28, 2023 1 Creating solutions for everyday sustainable living
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: Safety Performance
SAFETY PERFORMANCE OUR RESULTS DEMONSTRATE CONSISTENT LEADERSHIP IN SAFETY Injuries per 200,000 hours worked 0.5 0.4 0.3 0.2 0.1 2019 2020 2021 2022 1Q23 LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Note: Medium and large companies only. Number of hou
Slide 4: Advancing Our Strategy
ADVANCING OUR STRATEGY FOCUSED AND SYNERGETIC MOVES THAT DELIVER A MORE PROFITABLE AND SUSTAINABLE GROWTH ENGINE BUILD A PROFITABLE GROW & STEP UP PERFORMANCE CIRCULAR & LOW CARBON UPGRADE THE CORE & CULTURE SOLUTIONS BUSINESS Launched value enhancement program to unlock Created new Circular & L
Slide 5: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS SOLID RESULTS DRIVEN BY MODERATE IMPROVEMENTS IN MARKET CONDITIONS $0.5 B $1.44 $1.1 B $0.5 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $0.8 B $2.50 $1.5 B $5.8 B NET INCOME DILUTED EPS EBITDA LIQUIDITY ex. Identified Items ex. Identified Items ex. Id
Slide 6: Excellent Cash Generation
EXCELLENT CASH GENERATION OUTSTANDING CASH GENERATION SUPPORTING STRONG BALANCE SHEET AND SHAREHOLDER RETURNS Cash from Operating Activities $5.1 B CASH FROM OPERATING ACTIVITIES USD, billions 1Q23 LTM $8 7 $1.8 B CASH AND CASH EQUIVALENTS 6 Balance as of March 31, 2023 5 4 1.7x NET DEBT TO EBITDA 3
Slide 7: Cash Generation and Allocation
CASH GENERATION AND ALLOCATION CONTINUED DISCIPLINE IN CAPITAL ALLOCATION DELIVERING RESULTS USD, billions $3 Generated ~$480 MM in cash from operating activities GENERATING VALUE FOR SHAREHOLDERS 2 $2.2 Returned ~$460 MM to shareholders through $1.8 dividends and share repurchases in 1Q23 Returned
Slide 8: 1Q23 Segment Highlights
1Q23 SEGMENT HIGHLIGHTS MODERATE MARGIN AND VOLUME IMPROVEMENTS ACROSS MOST SEGMENTS EBITDA Variance by Segment ex. Identified Items USD, millions $52 $14 $11 $1,452 $135 $225 $(7) $157 $865 4Q22 O&P Americas O&P EAI I&D APS Refining Technology Other 1Q23 EBITDA EBITDA ex. Identified Items 8
Slide 9: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS MODERATELY HIGHER OLEFINS MARGINS DUE TO LOWER FEEDSTOCK AND ENERGY COSTS; IMPROVED POLYETHYLENE DEMAND EBITDA USD, millions 1Q23 MARKET DYNAMICS Moderately higher olefins margins due to lower feedstock and energy costs $939 $954 Higher polyethylene margins with impr
Slide 10: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL HIGHER UTILIZATION WITH RESTART OF LYONDELLBASELL’S CRACKER IN FRANCE EBITDA ex. Identified Items USD, millions 1Q23 MARKET DYNAMICS Improved margins driven by lower energy costs $255 Higher volumes from slightly better demand and $214 utilization
Slide 11: Uniquely Positioned to Lead in Sustainable Solutions
UNIQUELY POSITIONED TO LEAD IN SUSTAINABLE SOLUTIONS OUR INTEGRATED HUB MODEL IN COLOGNE BUILDS SCALE, REDUCES COST AND CAPTURES VALUE FROM WASTE TO FINAL PRODUCT Source One JV formed, QCP, Mepol acquisition2, Our strategic advantages in circular EEW partnership1 APK APS sites and low carbon solutio
Slide 12: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES INCREASED OXYFUELS MARGINS AND HIGHER VOLUMES ACROSS MOST BUSINESSES EBITDA USD, millions 1Q23 MARKET DYNAMICS $675 Oxyfuels margins remained well above seasonal averages Increased volumes with higher propylene oxide utilization $546 Continued weak demand for durable good
Slide 13: Refining
REFINING CONTINUED STRENGTH IN REFINING CRACK SPREADS DRIVEN BY LOW SUPPLY AND STABLE DEMAND EBITDA ex. Identified Items USD, millions 1Q23 MARKET DYNAMICS Maya 2-1-1 crack spread remained stable at $49/bbl $418 Low fuels inventories due to U.S. Gulf Coast weather event and heavy maintenance across
Slide 14: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS MODERATELY HIGHER MARGINS AND VOLUMES EBITDA ex. Identified Items USD, millions 1Q23 MARKET DYNAMICS $71 Higher margins for polypropylene compounds $42 capturing raw material price increases $28 $26 Slightly better demand across all businesses $(26) NEAR-TERM OUTLOOK Conti
Slide 15: Technology
TECHNOLOGY STABLE CATALYST VOLUMES AND LOWER LICENSING REVENUE EBITDA 1Q23 MARKET DYNAMICS USD, millions Stable catalyst volumes reflect continued low operating rates across polyolefins industry Slower licensing activity $112 $103 NEAR-TERM OUTLOOK $92 Higher licensing revenue after slow 1Q23 $73 $5
Slide 16: Advancing Our Strategy
ADVANCING OUR STRATEGY DELIVERING A MORE PROFITABLE AND SUSTAINBLE GROWTH ENGINE RESILIENT MARKET ADVANCING STRATEGY RESULTS OUTLOOK SUSTAINABILITY EXECUTION Exceptional safety performance Modest seasonal demand Signed contract with Nexus Circular Growing and upgrading our core to improvements for a
LyondellBasell Industries — Q1 2023 Earnings Presentation on 6ix