NYSE$LYB

LyondellBasell Industries NV · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

LyondellBasell demonstrated resilience amidst COVID-19, leveraging operational excellence and cost management.

LyondellBasell reported a net income of $0.3 billion for Q2 2020, or $0.94 per share. The company generated $1.3 billion in cash from operating activities and bolstered liquidity to $5.8 billion. Demand declines were observed in transportation fuels and automotive manufacturing, but improvements were seen in polyethylene exports and refining margins towards the end of the quarter.

  • Net income was $0.3 billion, or $0.94 per share ($0.68 excluding LCM).
  • EBITDA reached $0.8 billion, or $0.7 billion excluding LCM.
  • The company generated $1.3 billion in cash from operating activities.
  • Liquidity was bolstered to $5.8 billion as of June 30, 2020.

Headline financials

Total Revenue

$5.55B

Previous: $9.05B-38.7%
EPS (adj)

$0.68

Previous: $2.70-74.8%
EBITDA

$760M

No prior period
Capital Expenditures

-$1.25B

Previous: -$1.22B-2.2%
Free Cash Flow

-$934M

Previous: -$218M-328.4%
Net Income

$314M

Previous: $1B-68.7%
Operating Income

$339M

Previous: $1.18B-71.2%
Gross Profit

$652M

Previous: $1.51B-56.7%
Cash & Equivalents

$2.55B

Previous: $1.28B+99.5%
Total Assets

$31.5B

Previous: $31.2B+1.2%
Stock-Based Comp

$13M

Previous: $12M+8.3%

Revenue & EPS history

LyondellBasell · Revenue · Quarterly

$5.55B

Q2 2020-38.7%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

LyondellBasell anticipates improving demand for its products with increased economic activity. The company is focused on delivering its outlined strategy, managing capital expenditures, and prioritizing liquidity and cash flow while funding the dividend and maintaining an investment-grade balance sheet.

Tailwinds

  • Demand for products is improving with increased economic activity.
  • Operating rates and prices have been raised in response to increased demand for North American polyethylene exports to Asia.
  • Improving demand is expected for Refining and Oxyfuels & Related Products businesses with increased mobility and reductions in fuel inventories.
  • Advanced Polymer Solutions segment is benefiting from rebounding demand for plastics used in automotive manufacturing.
  • The recent startup of Hyperzone polyethylene capacity, the establishment of new Asian joint ventures, and the integration of the A. Schulman acquisition will add to profitability.

Headwinds

  • Macro-economic environment remains volatile.
  • The COVID-19 pandemic continues to pose risks.
  • Potential for further economic disruption.
  • Uncertainty in global markets.
  • Fluctuations in raw material and energy costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.4%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+9.0%

Q2 2012

Best reaction

-7.8%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.5%-1.5%-10.8%
Q1 2026+2.1%-1.5%-10.8%
Q3 2025+2.3%-2.7%+8.4%
Q2 2025-7.8%-14.5%-2.7%
Q1 2025+0.3%-1.8%-5.3%
Q4 2024-0.6%+1.1%+0.9%
Q3 2024-3.1%-0.5%-4.0%
Q2 2024-5.7%-3.4%+0.6%
Q1 2024+2.0%-0.2%-1.1%
Q4 2023-1.5%-0.1%+5.1%
Q3 2023+0.8%+0.0%+4.8%
Q2 2023+2.0%+3.0%+4.7%
Q1 2023+2.4%-2.0%-4.4%
Q4 2022+2.5%+2.6%+0.9%
Q3 2022-7.3%-5.2%+5.2%
Q2 2022-1.8%-3.3%-1.9%
Q1 2022+1.8%+9.3%+10.3%
Q4 2021+0.9%+4.7%+2.2%
Q3 2021-2.1%-2.9%-7.2%
Q2 2021-1.6%-3.5%+2.3%
Q1 2021+0.4%+4.2%+4.8%
Q4 2020-0.6%+2.3%+18.2%
Q3 2020-0.4%-3.7%+21.7%
Q2 2020-4.8%+0.8%+4.4%
Q1 2020-6.2%-10.1%+10.0%
Q4 2019-5.5%+0.8%-14.4%
Q3 2019+7.8%+8.2%+3.2%
Q2 2019-6.4%-6.8%-5.0%
Q1 2019+0.5%-2.5%-12.1%
Q4 2018+0.8%+0.3%-2.2%
Q3 2018+0.9%+5.3%+5.2%
Q2 2018+4.2%+4.2%+4.0%
Q1 2018-0.7%-1.6%+6.8%
Q4 2017-7.5%-6.2%-8.8%
Q3 2017+4.7%+2.2%+3.1%
Q2 2017+4.1%+2.1%+4.3%
Q1 2017-4.5%-6.3%-7.7%
Q4 2016+1.3%-2.2%-1.6%
Q3 2016-2.7%-1.4%+14.6%
Q2 2016-5.2%-6.9%+0.2%
Q1 2016-2.7%
Q4 2015-2.3%
Q3 2015-2.2%
Q2 2015+4.4%
Q1 2015+6.1%
Q4 2014+4.1%
Q3 2014-7.6%
Q2 2014+7.1%
Q1 2014+1.9%
Q4 2013-1.1%
Q3 2013-0.3%
Q2 2013-0.5%
Q1 2013+0.9%
Q4 2011+2.9%
Q4 2012-3.7%
Q3 2012-0.0%
Q2 2012+9.0%
Q1 2011-6.3%
Q1 2012-6.3%
Q3 2011+1.1%
Q2 2011+4.2%
Q4 2010+1.7%
Q3 2010-0.5%
Q2 2010-4.3%
Q1 2010

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