LyondellBasell Industries NV (LYB) Reports Q3 2023 Earnings
LyondellBasell reported a net income of $0.7 billion for Q3 2023
The company achieved an EBITDA of $1.4 billion in the same quarter
LyondellBasell returned $448 million to shareholders through dividends and share repurchases
The company made significant progress on its climate targets, achieving 78% of its goal to procure at least half of its electricity from renewable sources by 2030
On October 27, 2023, LyondellBasell Industries NV (NYSE:LYB) released its earnings report for the third quarter of 2023. The company reported a net income of $0.7 billion, or $2.29 per diluted share. This includes identified items of $57 million, net of tax, which impacted third quarter earnings by $0.17 per share. The company's EBITDA for the quarter was $1.4 billion.
Financial Highlights
LyondellBasell's Q3 2023 financial performance was bolstered by exceptional oxyfuels margins, which contributed to a record Intermediates & Derivatives EBITDA of $708 million. However, global olefins and polyolefins margins were compressed due to higher feedstock costs, tepid polymer demand in both the U.S. and Europe, and new industry capacity.
The company generated $1.7 billion in cash from operating activities in the third quarter and achieved 102% cash conversion over the past twelve months. LyondellBasell returned $448 million to shareholders through dividends and share repurchases during the quarter.
Progress on Climate Targets
LyondellBasell also made significant progress on its climate targets. The company achieved 78% of its target to procure at least half of its electricity from renewable sources by 2030. In addition, LyondellBasell launched +LC (Low Carbon) solutions for select chemical products, meeting growing customer demand for sustainable materials.
Company Outlook
Looking ahead, LyondellBasell expects seasonally softer demand across most businesses in the fourth quarter. Higher feedstock costs, new industry capacity, and the slow pace of Chinese demand growth continue to pressure global olefins and polyolefins margins. However, the company remains committed to its long-term strategy and is confident in exceeding its 2023 recurring annual EBITDA exit run-rate target of $200 million.
Financial Tables Summary
The earnings report included detailed financial tables. Key highlights include a net income of $747 million for the quarter ended September 30, 2023, compared to $715 million for the quarter ended June 30, 2023, and $572 million for the quarter ended September 30, 2022. The company's EBITDA for the same periods were $1,356 million, $1,383 million, and $1,108 million, respectively.
LyondellBasell's diluted earnings per share excluding identified items were $2.46 for the quarter ended September 30, 2023, compared to $2.44 for the quarter ended June 30, 2023, and $1.96 for the quarter ended September 30, 2022.
Explore the complete 8-K earnings release (here) from LyondellBasell Industries NV for further details.
This article first appeared on GuruFocus.
