NYSE$LYB

LyondellBasell Industries NV · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

LyondellBasell reported resilient results and outstanding cash conversion amid challenging market conditions.

LyondellBasell reported net income of $0.7 billion, or $2.29 per diluted share for Q3 2023. The company's EBITDA was $1.4 billion. Exceptional oxyfuels margins contributed to a record Intermediates & Derivatives EBITDA of $708 million during the third quarter. The company generated $1.7 billion in cash from operating activities and achieved 102% cash conversion over the past twelve months.

  • Net Income: $0.7 billion, $0.8 billion excluding identified items
  • Diluted earnings per share: $2.29 per share; $2.46 per share excluding identified items
  • EBITDA and EBITDA excluding identified items: $1.4 billion
  • Record Intermediates & Derivatives quarterly EBITDA supported by exceptional oxyfuels margins

Headline financials

Total Revenue

$10.6B

Previous: $12.3B-13.3%
EPS (adj)

$2.46

Previous: $1.96+25.5%
Capital Expenditures

-$394M

Previous: -$439M+10.3%
Free Cash Flow

$353M

Previous: $133M+165.4%
Net Income

$747M

Previous: $572M+30.6%
Operating Income

$1.01B

Previous: $812M+24.9%
Gross Profit

$1.45B

Previous: $1.16B+24.6%
Cash & Equivalents

$2.83B

Previous: $1.48B+91.4%
Total Assets

$36.9B

Previous: $36.5B+1.1%
Stock-Based Comp

$23M

Previous: $17M+35.3%

Revenue & EPS history

LyondellBasell · Revenue · Quarterly

$10.6B

Q3 2023-13.3%vs Q3 2022
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

In the fourth quarter, the company expects seasonally softer demand across most businesses. Higher feedstock costs, new industry capacity and the slow pace of Chinese demand growth continue to pressure global olefins and polyolefins margins. Oxyfuels and refining margins are expected to decrease following the conclusion of the summer driving season.

Tailwinds

  • Implementation of LyondellBasell's long-term strategy remains our top priority.
  • One year after launching our Value Enhancement Program, we are highly confident we will exceed our 2023 recurring annual EBITDA exit run-rate target of $200 million.
  • The three pillars of our strategy reinforce each other.
  • By stepping up our performance and culture with a pivot toward value creation, LyondellBasell will be able to grow and upgrade our core while building a profitable Circular and Low Carbon Solutions business.
  • Looking ahead, we will continue to leverage our unique advantages to position LyondellBasell for a sustainable future

Headwinds

  • Seasonally softer demand across most businesses is expected.
  • Higher feedstock costs continue to pressure global olefins and polyolefins margins.
  • New industry capacity continue to pressure global olefins and polyolefins margins.
  • The slow pace of Chinese demand growth continue to pressure global olefins and polyolefins margins.
  • Oxyfuels and refining margins are expected to decrease following the conclusion of the summer driving season.

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 2023

Historical avgQ3 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

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