Q3 2024 LyondellBasell Industries NV Earnings Call Transcript
Key Points
- LyondellBasell Industries NV (LYB) demonstrated strong safety performance with a total recordable incident rate of 0.13, exceeding top quartile peers.
- The company achieved a 13% sequential EBITDA improvement in its Olefins and Polyolefins - Americas segment, marking the strongest quarter since Q2 2022.
- LYB generated $670 million in cash from operating activities, maintaining strong cash conversion despite challenging market conditions.
- The company started construction of its MoReTec-1 facility in Germany, supported by a EUR40 million EU Innovation Fund grant, showcasing its commitment to circular and low-carbon solutions.
- LYB maintained robust shareholder returns with dividends and share repurchases totaling almost $1.8 billion over the last 12 months.
- A sharp decline in gasoline crack spreads negatively impacted the refining and oxyfuels segments, leading to lower quarterly results.
- The European Olefins and Polyolefins segment faced stable but muted demand with no signs of macroeconomic recovery, resulting in an EBITDA of $81 million.
- The Advanced Polymer Solutions segment experienced weaker demand, particularly in the automotive sector, leading to substantial headwinds for volumes and pricing.
- The Intermediates and Derivatives segment saw a $184 million decline in EBITDA due to decreased raw material margins for oxyfuels.
- LYB anticipates typical seasonal demand patterns will result in lower fourth-quarter profitability across most businesses, with improvements deferred until 2025.
Hello, and welcome to the LyondellBasell Teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes. (Operator Instructions) I would now like to turn the conference over to Mr. David Kinney, Head of Investor Relations. Sir, you may begin.
Thank you, operator, and welcome, everyone, to today's call. Before we begin the discussion, I would like to point out that a slide presentation accompanies the call and is available on our website at www.lyondellbasell.com/investorrelations.
Today, we will be discussing our business results while making reference to some forward-looking statements and non-GAAP financial measures. We believe the forward-looking statements are based upon reasonable assumptions and the alternative measures are useful to investors. Nonetheless, the forward-looking statements are subject to significant risk and uncertainty.
We
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