LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q3 2022 Earnings Presentation
17 slides from LyondellBasell Industries NV's earnings presentation, Oct 28, 2022
Slide 1: Third Quarter 2022 Earnings
THIRD QUARTER 2022 EARNINGS October 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: Safety Performance
SAFETY PERFORMANCE OUTSTANDING 2022 RESULTS DEMONSTRATING OUR STEADFAST COMMITMENT TO SAFE OPERATIONS 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 4: Third Quarter 2022 Highlights
THIRD QUARTER 2022 HIGHLIGHTS STRONG CASH GENERATION AMID CHALLENGING MARKETS $0.6 B $1.75 $1.1 B $1.4 B NET INCOME DILUTED EPS EBITDA CASH FROM OPERATING ACTIVITIES $0.6 B $1.96 $1.2 B $5.3 B NET INCOME DILUTED EPS EBITDA LIQUIDITY ex. Identified Items ex. Identified Items ex. Identified Items 19%
Slide 5: Resilient Value Generation
RESILIENT VALUE GENERATION EQUIPPED TO DELIVER STRONG RETURNS UNDER A WIDE RANGE OF MARKET CONDITIONS POSITIONED FOR SUCCESS EFFICIENT CASH CONVERSION 100% • 1 Core values of safety, cost management and operational 87% 88% 83% 73% 80% excellence instilled across our company • 2 Portfolio diversity a
Slide 6: LyondellBasell's Circular and Low Carbon Solutions
LYONDELLBASELL’S CIRCULAR AND LOW CARBON SOLUTIONS ENTREPRENEURIAL BUSINESS UNIT TO ACCELERATE GROWTH AND MONETIZE OPPORTUNITIES FOR SUSTAINABLE SOLUTIONS CIRCULENRecover CIRCULENRevive CIRCULENRenew Low Carbon Solutions Mechanical recycling Advanced recycling Renewable Addressing customer needs inc
Slide 7: LyondellBasell's Value Enhancement Program $750 MM
LYONDELLBASELL’S VALUE ENHANCEMENT PROGRAM UNLOCKING VALUE THROUGH DISCIPLINED ALLOCATION OF RESOURCES Key Value Opportunities Continuous Process 2,000+ 1,500+ $750 MM Ideas Initiatives Recurring annual generated advanced EBITDA by the end of 2025 MANUFACTURING & OPERATIONAL EXCELLENCE Value Identif
Slide 8: Robust Cash Generation
ROBUST CASH GENERATION OUTSTANDING CASH CONVERSION DRIVEN BY PROACTIVE WORKING CAPITAL MANAGEMENT Cash from Operating Activities USD, billions $7.6 B CASH FROM OPERATING ACTIVITIES $8 3Q22 LTM 7 6 $1.5 B CASH AND CASH EQUIVALENTS 5 Balance as of September 30, 2022 4 3 CASH CONVERSION 2 100% 3Q22 LTM
Slide 9: Cash Generation and Allocation
CASH GENERATION AND ALLOCATION MAINTAINING DISCIPLINED CAPITAL ALLOCATION WHILE PROVIDING STRONG SHAREHOLDER RETURNS USD, billions $3 DELIVERING RESULTS Generated $1.4 B in cash from operating activities Reduced working capital by ~$230 MM 2 GENERATING VALUE FOR SHAREHOLDERS $1.5 Paid ~$400 MM in di
Slide 10: 3Q22 Segment Highlights
3Q22 SEGMENT HIGHLIGHTS MARGIN COMPRESSION DUE TO HIGHER COSTS AND WEAKER DEMAND EBITDA Variance by Segment ex. Identified Items USD, millions $2,450 $(346) $(311) $(315) $1,192 $(52) $14 $(228) $(20) 2Q22 O&P Americas O&P EAI I&D APS Refining Technology Other 3Q22 10
Slide 11: Olefins & Polyolefins – Americas
OLEFINS & POLYOLEFINS – AMERICAS MARGINS IMPACTED BY LOWER PRODUCT PRICES AND DESTOCKING 3Q22 MARKET DYNAMICS Softer North American demand EBITDA USD, millions New polymer capacity entering market Ethylene margins decreased due to lower co-product prices $1,568 Polymer margins decreased on lower pri
Slide 12: Olefins & Polyolefins – Europe, Asia & International
OLEFINS & POLYOLEFINS – EUROPE, ASIA & INTERNATIONAL HIGH ENERGY COSTS REDUCING DEMAND AND COMPRESSING MARGINS EBITDA ex. Identified Items 3Q22 MARKET DYNAMICS USD, millions Significant impact from energy costs Weaker European demand $474 Lower volumes due to planned and unplanned downtime NEAR-TERM
Slide 13: Intermediates & Derivatives
INTERMEDIATES & DERIVATIVES MARGINS COMPRESSED FOR MOST BUSINESSES; OXYFUELS MARGINS REMAIN ROBUST EBITDA 3Q22 MARKET DYNAMICS USD, millions Declining styrene margin due to well-supplied market $675 Lower oxyfuels margins; still above historical averages Softer demand for durable goods $546 NEAR-TER
Slide 14: Refining
REFINING MARGINS MODERATED BUT REMAINED ABOVE HISTORICAL AVERAGES EBITDA ex. Identified Items USD, millions 3Q22 MARKET DYNAMICS $418 Maya 2-1-1 crack spread declined to $47/bbl $190 Planned maintenance led to 80% utilization rate $150 $148 $41 NEAR-TERM OUTLOOK Continuing strength in Maya 2-1-1 spr
Slide 15: Advanced Polymer Solutions
ADVANCED POLYMER SOLUTIONS MARGIN COMPRESSION DUE TO HIGHER FEEDSTOCK AND ENERGY COSTS EBITDA USD, millions 3Q22 MARKET DYNAMICS $125 Higher raw material and energy costs $121 $118 Lower demand for Catalloy roofing polymers due to customer downtime $66 NEAR-TERM OUTLOOK Slight improvement in automot
Slide 16: Technology
TECHNOLOGY LOWER CATALYST DEMAND EBITDA USD, millions 3Q22 MARKET DYNAMICS $173 $155 Lower catalyst demand NEAR-TERM OUTLOOK $112 Moderating licensing revenue $103 $92 OUR ACTIONS Signed 6 new licensing agreements in 3Q for our Lupotech (LDPE), Hostalen (HDPE), Spheripol (PP) and Spherizone (PP) tec
Slide 17: Capturing Value
CAPTURING VALUE MAXIMIZING CASH GENERATION WHILE ADVANCING LONG-TERM STRATEGY DELIVERING ADVANCING MARKET STRATEGY RESULTS SUSTAINABILITY OUTLOOK DEVELOPMENT Outstanding safety performance Launched Seasonally weaker demand, new Progress toward our North Star: Circular and supply and volatile energy
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