NYSE$LYB

LyondellBasell Industries NV · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

LyondellBasell reported third quarter earnings, which included a non-cash impairment charge for the Houston refinery and a non-cash lower of cost or market inventory valuation benefit.

LyondellBasell's third quarter results reflect improved demand for products due to increasing global economic activity. The company recognized a non-cash impairment charge of $582 million for the Houston refinery and a $160 million non-cash lower of cost or market inventory valuation benefit. The company's cash and available liquidity ended at $5.5 billion.

  • Net Income: $0.1 billion, $0.4 billion excluding LCM and Impairment
  • Diluted earnings per share: $0.33 per share, $1.27 per share excluding LCM and Impairment
  • EBITDA: $0.5 billion, $0.9 billion excluding LCM and Impairment
  • Recognized $582 million non-cash impairment for the Houston refinery

Headline financials

Total Revenue

$6.78B

Previous: $8.72B-22.3%
EPS (adj)

$1.27

Previous: $2.60-51.2%
EBITDA

$466M

No prior period
Capital Expenditures

-$1.67B

Previous: -$1.96B+14.8%
Free Cash Flow

-$1.56B

Previous: -$998M-56.2%
Net Income

$114M

Previous: $965M-88.2%
Operating Income

$23M

Previous: $1.12B-98.0%
Gross Profit

$891M

Previous: $1.45B-38.7%
Cash & Equivalents

$2.46B

Previous: $476M+416.6%
Total Assets

$31.9B

Previous: $30.1B+6.1%
Stock-Based Comp

$14M

Previous: $12M+16.7%

Revenue & EPS history

LyondellBasell · Revenue · Quarterly

$6.78B

Q3 2020-22.3%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

LyondellBasell anticipates that the recovery in global economies should continue to benefit the petrochemical industry. They expect continued strength in North American integrated polyethylene margins during the fourth quarter, with some seasonal moderation by the end of the year. Increased demand from automotive manufacturing and other durable goods markets should continue to propel further improvement for the Advanced Polymer Solutions segment.

Tailwinds

  • Recovery in global economies should continue to benefit the petrochemical industry.
  • Global polyethylene demand to grow for the full year.
  • China continues to have a 40% polyethylene trade deficit which supports North American exports and tightens the U.S. domestic market.
  • Expect continued strength in North American integrated polyethylene margins during the fourth quarter, perhaps with some seasonal moderation by the end of the year.
  • Order books show increased demand from automotive manufacturing and other durable goods markets that should continue to propel further improvement for our Advanced Polymer Solutions segment.

Headwinds

  • Stubbornly slow recovery in global mobility is weighing on demand for gasoline and jet fuel.
  • Prolong headwinds for our Refining and Oxyfuels & Related Products businesses.
  • Pandemic backdrop
  • Recession backdrop
  • Upon closing of the transaction for the Louisiana joint venture, we will prioritize debt repayment over share repurchases.

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 Q3 2020

Historical avgQ3 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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