LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q2 2022 Earnings Presentation
20 slides from LyondellBasell Industries NV's earnings presentation, Jul 29, 2022
Slide 1: Second Quarter 2022 Earnings
SECOND QUARTER 2022 EARNINGS July 29, 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: LyondellBasell's New CEO
LYONDELLBASELL’S NEW CEO EXPERIENCED LEADER WITH A STRONG TRACK RECORD OF SUSTAINABLE GROWTH AND VALUE CREATION “ Peter Vanacker LyondellBasell is building upon on our strong second quarter results, scaling our Assumed role as CEO on May 23rd reach and strengthening our leadership in serving the wor
Slide 4: Second Quarter 2022 Highlights
SECOND QUARTER 2022 HIGHLIGHTS HIGHER QUARTERLY RESULTS DRIVEN BY RECORD INTERMEDIATES AND DERIVATIVES EBITDA AND STRONG REFINING MARGINS $1.6 B $4.98 $2.4 B $1.6 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $1.7 B $5.19 $2.5 B 24% NET INCOME DILUTED EPS EBITDA RETURN ON INVESTED e
Slide 5: Safety Performance
SAFETY PERFORMANCE OUTSTANDING 2022 YEAR-TO-DATE RESULTS REFLECTING OUR STEADFAST COMMITMENT TO SAFETY Injuries per 200,000 hours worked 0.6 0.5 0.4 0.3 0.2 0.1 2018 2019 2020 2021 2022 YTD LyondellBasell ACC Top Quartile Sources: American Chemistry Council (ACC) and LyondellBasell. Note: Medium and
Slide 6: Advancing Sustainability
ADVANCING SUSTAINABILITY SUBSTANTIVE PROGRESS TOWARD OUR MEANINGFUL GOALS RENEWABLE ENERGY Signed 4 Renewable Power Purchase Agreements for 380 MW of wind and solar power capacity in Texas RENEWABLE FEEDSTOCKS CirculenRenew: Processed 12 KT of renewable feedstocks in 2021, forecasting 40 KT in 2022
Slide 7: Capturing Benefits from Our Diverse Portfolio
CAPTURING BENEFITS FROM OUR DIVERSE PORTFOLIO IMPROVED PERFORMANCE POWERED BY GLOBAL BUSINESSES SERVING CONSUMER NEEDS EBITDA ex. LCM and Impairment STRONG OXYFUELS AND REFINING MARKETS USD, billions Margin expansion driven by increased mobility $ 3.5 3.0 MIXED GLOBAL O&P MARKETS 2.5 Strong quarter
Slide 8: Stepping Up Earnings
STEPPING UP EARNINGS LYONDELLBASELL BENEFITING FROM DIVERSE MARKETS AND A GROWING ASSET BASE EBITDA ex. LCM and Impairment USD, billions $10 $9.2 9 8 7 $6.7 6 5 4 3 2 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2Q22 LTM EBITDA EBITDA ex. LCM and Impairment 2011-2019 Average 8
Slide 9: Stepping Up Cash Generation
STEPPING UP CASH GENERATION STRONG CASH CONVERSION DRIVEN BY OUR DIVERSE PORTFOLIO AND GROWING ASSET BASE Cash from Operating Activities USD, billions $8.3 B $9 CASH FROM OPERATING ACTIVITIES 8 2Q22 LTM 7 6 5 91% 4 CASH CONVERSION 3 2Q22 LTM 2 1 2017 2018 2019 2020 2021 2Q22 LTM 26% FREE OPERATING C
Slide 10: Cash Generation and Allocation
CASH GENERATION AND ALLOCATION PROVIDING SUBSTANTIAL SHAREHOLDER RETURNS AND MAINTAINING OUR DISCIPLINED CAPITAL STRATEGY USD, billions DELIVERING RESULTS $4 Generated $1.6 B in cash from operating activities 3 GENERATING VALUE FOR SHAREHOLDERS 2 Paid $2.1 B in dividends $1.8 Repurchased $45 MM of o
Slide 11: 2Q22 Segment Highlights
2Q22 SEGMENT HIGHLIGHTS RECORD I&D PROFITABILITY AND EXCELLENT REFINING RESULTS OFFSET RISING ETHANE AND ENERGY COSTS EBITDA variance by segment ex. LCM and Impairment USD, millions $9 $2,450 $270 $(5) $129 $(7) $40 $2,020 $(6) $1,500 1Q22 O&P Americas O&P EAI I&D APS Refining Technology Other 2Q22
Slide 12: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS ROBUST NORTH AMERICAN POLYMER DEMAND AND HIGHER POLYMER PRICES OFFSET BY RISING ETHANE COST EBITDA USD, millions 2Q22 MARKET DYNAMICS $1,576 $1,568 Continued strength in North American demand $1,262 PE contract price and PP spreads increased Higher ethane and energy
Slide 13: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL INCREASED MARGINS SUPPORTED BY HIGHER ETHYLENE PRICES AND RELATIVELY FLAT FEEDSTOCK COSTS EBITDA ex. LCM and Impairment USD, millions $708 2Q22 MARKET DYNAMICS Higher ethylene prices and stable polymer spreads Relatively flat naphtha feedstock cos
Slide 14: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES RECORD QUARTERLY PROFIT WITH EXCEPTIONAL OXYFUELS MARGINS EBITDA USD, millions $675 $596 2Q22 MARKET DYNAMICS $546 Strong oxyfuels pricing and favorable butane cost Tight styrene markets during 2Q $348 Softening demand for durable goods $252 NEAR-TERM OUTLOOK Margin compr
Slide 15: Advantaged Propylene Oxide Technologies
ADVANTAGED PROPYLENE OXIDE TECHNOLOGIES LYONDELLBASELL’S PROPRIETARY TECHNOLOGIES PROVIDE THE LOWEST COST OF PRODUCTION PROPYLENE OXIDE Growing demand for polyurethanes Global rationalization of less competitive assets LyondellBasell’s advantaged technologies well-positioned to serve growing markets
Slide 16: PO/TBA Project Update
PO/TBA PROJECT UPDATE DELIVERING NEW CAPACITY TO ADDRESS GROWING DEMAND INVESTMENT STRATEGY ● LyondellBasell’s largest greenfield investment ● Meeting rising demand for polyurethanes and clean-burning oxyfuels ● Leveraging cost-advantaged U.S. Gulf Coast feedstocks MILESTONES ● Broke ground August 2
Slide 17: Refining
REFINING IMPROVED MARGINS DRIVEN BY INCREASED DEMAND FOR GASOLINE, DIESEL AND JET FUEL EBITDA ex. LCM and Impairment USD, millions $418 2Q22 MARKET DYNAMICS $150 $148 Maya 2-1-1 crack spread of $56/bbl $41 94% Houston refinery utilization rate $(81) NEAR-TERM OUTLOOK Moderating Maya 2-1-1 spread Exp
Slide 18: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS SLOW RECOVERY IN AUTOMOTIVE PRODUCTION OFFSETTING IMPROVED CATALLOY DEMAND EBITDA USD, millions $129 $125 $121 $118 2Q22 MARKET DYNAMICS Automotive production constraints persisted through 2Q Strong seasonal demand for Catalloy roofing polymers NEAR-TERM OUTLOOK $24 Gradua
Slide 19: Technology
TECHNOLOGY STRONG LICENSING REVENUE AND RECORD YEAR-TO-DATE CATALYST DEMAND EBITDA USD, millions $173 $155 2Q22 MARKET DYNAMICS Record 1H22 catalyst demand $112 $103 Slowdown in new licensing activity during 1H22 $92 80% of 1H22 licenses were LDPE / EVA lines supporting solar panel production in Asi
Slide 20: Capturing Value
CAPTURING VALUE MAXIMIZING CASH GENERATION WHILE ADVANCING LYONDELLBASELL’S GLOBAL PORTFOLIO DELIVERING ADVANCING STRATEGY RESULTS SUSTAINABILITY DEVELOPMENT Outstanding safety performance Defining LyondellBasell’s Growing our Circulen portfolio North Star Exceptional I&D results based on recycled a
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