NYSE$LYB

LyondellBasell Industries NV · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

LyondellBasell reported positive earnings driven by improved olefins and polyolefins margins and strong oxyfuels margins, while also progressing on its Value Enhancement Program and Circular & Low Carbon Solutions business.

LyondellBasell reported net income of $715 million, or $2.18 per diluted share, for the second quarter of 2023. The company's EBITDA was $1.4 billion, or $1.5 billion excluding identified items. Global olefins and polyolefins margins improved, and the Value Enhancement Program is progressing ahead of schedule.

  • Net income was $715 million, or $801 million excluding identified items.
  • Diluted earnings per share was $2.18, or $2.44 excluding identified items.
  • EBITDA was $1.4 billion, or $1.5 billion excluding identified items.
  • The company increased its 2023 target for the Value Enhancement Program and increased the quarterly dividend by 5% to $1.25 per share.

Headline financials

Total Revenue

$10.3B

Previous: $14.8B-30.5%
EPS (adj)

$2.44

Previous: $5.19-53.0%
Capital Expenditures

-$301M

Previous: -$532M+43.4%
Free Cash Flow

$414M

Previous: $1.11B-62.8%
Net Income

$715M

Previous: $1.64B-56.5%
Operating Income

$1.01B

Previous: $2.14B-52.8%
Gross Profit

$1.44B

Previous: $2.57B-44.1%
Cash & Equivalents

$2.47B

Previous: $1.06B+133.5%
Total Assets

$36.7B

Previous: $37B-0.9%
Stock-Based Comp

$24M

Previous: $19M+26.3%

Revenue & EPS history

LyondellBasell · Revenue · Quarterly

$10.3B

Q2 2023-30.5%vs Q2 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

In the third quarter, the company expects typical benefits from summer seasonality to be more than offset by soft demand due to ongoing economic uncertainty. Stagnant demand, volatile feedstock costs and new capacity in North America and China are challenging petrochemical margins. Summer demand for transportation fuels continues to support attractive oxyfuels and refining margins.

Tailwinds

  • Summer demand for transportation fuels continues to support attractive oxyfuels
  • Summer demand for transportation fuels continues to support refining margins
  • Advancing on the three pillars of our long-term strategy despite near-term macro challenges
  • Rapid progress is laying the necessary groundwork to extend our leadership in Circular & Low Carbon Solutions
  • Value Enhancement Program being embraced by our entire organization and driving sustainable value for our shareholders

Headwinds

  • Typical benefits from summer seasonality to be more than offset by soft demand due to ongoing economic uncertainty
  • Stagnant demand is challenging petrochemical margins
  • Volatile feedstock costs are challenging petrochemical margins
  • New capacity in North America is challenging petrochemical margins
  • New capacity in China is challenging petrochemical margins

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 2023

Historical avgQ2 2023

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro