LyondellBasell Industries N.V. (LYB) Bundle
A Brief History of LyondellBasell Industries N.V.
Company Overview
LyondellBasell Industries N.V. is a global leader in the production of chemicals, plastics, and refined products. As of 2024, the company operates through several segments, including Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Advanced Polymer Solutions (APS), Refining, and Technology.
Financial Performance
In the first nine months of 2024, LyondellBasell reported total sales and other operating revenues of $30.805 billion, a slight decrease compared to $31.178 billion in the same period of 2023. The breakdown by segment for the nine months ended September 30, 2024, is as follows:
| Segment | Sales and Other Operating Revenues (Millions) |
|---|---|
| O&P-Americas | $8,779 |
| O&P-EAI | $8,396 |
| I&D | $8,067 |
| APS | $2,809 |
| Refining | $6,489 |
| Technology | $497 |
EBITDA Analysis
The company's EBITDA for the first nine months of 2024 was $3.865 billion, compared to $3.870 billion in the same period of 2023. The EBITDA performance by segment is detailed below:
| Segment | EBITDA (Millions) |
|---|---|
| O&P-Americas | $1,949 |
| O&P-EAI | $165 |
| I&D | $1,423 |
| APS | $94 |
| Refining | ($12) |
| Technology | $271 |
Recent Developments
In May 2024, LyondellBasell sold its Ethylene Oxide & Derivatives (EO&D) business for $700 million, recognizing a pre-tax gain of $293 million. This sale was a strategic move to streamline operations and focus on core business segments.
The company also acquired a 35% interest in the Saudi Arabia-based National Petrochemical Industrial Company (NATPET) for approximately $500 million, enhancing its polypropylene business and access to advantaged feedstocks.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, LyondellBasell's cash flows from financing activities included share repurchases totaling $117 million and dividends paid amounting to $1.283 billion. The capital expenditures for the same period were reported at $1.335 billion.
Market Performance
The refining segment faced challenges with an EBITDA loss of $12 million in the first nine months of 2024, primarily due to lower margins. The overall performance in the refining market was impacted by decreases in the Maya 2-1-1 industry crack spread.
Environmental and Regulatory Obligations
As of September 30, 2024, LyondellBasell had accrued liabilities for environmental remediation costs totaling $143 million, reflecting ongoing compliance with regulatory requirements.
The company continues to adapt to market dynamics, focusing on sustainability and enhancing operational efficiencies to drive future growth in the competitive chemical and refining sectors.
A Who Owns LyondellBasell Industries N.V. (LYB)
Major Shareholders
As of 2024, LyondellBasell Industries N.V. (LYB) has a diverse ownership structure. The largest shareholders include institutional investors, mutual funds, and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| The Vanguard Group, Inc. | 8.8% | Institutional Investor |
| BlackRock, Inc. | 8.3% | Institutional Investor |
| State Street Corporation | 4.5% | Institutional Investor |
| Wellington Management Group LLP | 3.7% | Institutional Investor |
| Invesco Ltd. | 3.2% | Institutional Investor |
| Other Institutional Investors | 40.0% | Various |
| Individual Investors | 28.5% | Retail Investors |
Insider Ownership
Insider ownership is also a significant factor in LyondellBasell's shareholder structure. According to the latest filings, the company's executives and board members hold approximately:
| Insider | Position | Ownership Percentage |
|---|---|---|
| Bob Patel | CEO | 0.4% |
| Michael McMurray | CFO | 0.2% |
| Other Executives | Various | 0.3% |
Market Capitalization and Stock Performance
As of September 30, 2024, LyondellBasell Industries N.V. has a market capitalization of approximately $28 billion. The stock has shown resilience in the market with the following key statistics:
| Metric | Value |
|---|---|
| Current Stock Price | $86.32 |
| 52-Week High | $120.45 |
| 52-Week Low | $75.12 |
| Dividend Yield | 4.5% |
| Price-to-Earnings Ratio (P/E) | 10.5 |
Recent Developments
In 2024, LyondellBasell has engaged in strategic acquisitions and divestitures that may influence ownership dynamics. Notably, the company sold its Ethylene Oxide & Derivatives business for $700 million, which is expected to enhance shareholder value and return on equity.
Additionally, the company has initiated a share repurchase program, allocating $117 million for share buybacks in the first nine months of 2024, further impacting the ownership landscape.
Conclusion on Ownership Structure
The ownership structure of LyondellBasell Industries N.V. reflects a robust mix of institutional and retail investors, alongside significant insider participation. The ongoing strategic initiatives and market performance will continue to shape the company's shareholder dynamics in the future.
LyondellBasell Industries N.V. (LYB) Mission Statement
Overview of Mission Statement
The mission of LyondellBasell Industries N.V. is to be the leading global supplier of plastics, chemicals, and fuels, dedicated to sustainability and innovation. The company aims to create value for its stakeholders through responsible operations and a commitment to safety, diversity, and environmental stewardship.
Key Components of the Mission Statement
- Leadership in Industry: Positioning itself as a leader in the global market for plastics and chemicals.
- Sustainability: Focusing on sustainable practices to reduce environmental impact.
- Innovation: Continuously innovating to meet customer needs and improve product offerings.
- Stakeholder Value: Creating value not just for shareholders but for all stakeholders including employees, customers, and communities.
Financial Performance and Goals
In the first nine months of 2024, LyondellBasell reported total sales and other operating revenues of $30.805 billion, a decrease from $31.178 billion in the same period of 2023. The company's EBITDA for the same period was $3.865 billion, reflecting a slight decline from $3.870 billion year-over-year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Sales and Other Operating Revenues | $30.805 billion | $31.178 billion |
| EBITDA | $3.865 billion | $3.870 billion |
| Net Income | $1.976 billion | $1.940 billion |
| Dividends Paid | $1.283 billion | $1.204 billion |
Recent Strategic Initiatives
LyondellBasell has undertaken several strategic initiatives to align with its mission. In May 2024, the company sold its U.S. Gulf Coast-based Ethylene Oxide & Derivatives business for $700 million, recognizing a pre-tax gain of $293 million. This move is part of a broader strategy to streamline operations and focus on core competencies.
Commitment to Sustainability
The company emphasizes its commitment to sustainability through investments in technology and processes that reduce emissions and enhance recycling capabilities. In the first nine months of 2024, LyondellBasell allocated approximately 75% of its $1.335 billion capital expenditures to sustaining maintenance and environmental projects.
Market Position and Competitive Landscape
As of September 30, 2024, LyondellBasell had a total debt of $11.260 billion, with significant unused availability under its credit facilities amounting to $4.650 billion. The company continues to maintain a robust liquidity position, supporting its mission to innovate and lead in the chemical industry.
Employee and Community Engagement
LyondellBasell is committed to fostering a diverse and inclusive workplace. The company actively engages with communities to promote education, safety, and economic development, reflecting its mission to create value for all stakeholders.
How LyondellBasell Industries N.V. (LYB) Works
Company Overview
LyondellBasell Industries N.V. is a global leader in the production of polymers and chemicals, operating through several segments: Olefins and Polyolefins-Americas, Olefins and Polyolefins-Europe, Asia, International, Intermediates and Derivatives, Advanced Polymer Solutions, Refining, and Technology.
Financial Performance
As of the third quarter of 2024, LyondellBasell reported the following financial highlights:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Sales and Operating Revenues | $10,322 million | $10,558 million | $10,625 million |
| Cost of Sales | $9,080 million | $9,148 million | $9,198 million |
| Operating Income | $802 million | $970 million | $1,127 million |
| Net Income | $577 million | $925 million | $748 million |
| EBITDA | $1,174 million | $1,644 million | $1,382 million |
Segment Performance
The company's segments performed as follows in Q3 2024:
| Segment | Sales & Operating Revenues | EBITDA |
|---|---|---|
| O&P-Americas | $2,982 million | $758 million |
| O&P-EAI | $2,809 million | $81 million |
| I&D | $2,120 million | $317 million |
| APS | $2,795 million | $19 million |
| Refining | $2,054 million | ($60 million) |
| Technology | $69 million | $69 million |
Capital Expenditures and Investments
Capital expenditures for the first nine months of 2024 totaled $1,335 million, compared to $1,047 million in the same period of 2023. Key investments included:
- $1,283 million in dividends paid to shareholders
- $117 million in share repurchases
- $700 million from the sale of the EO&D business
- $500 million invested to acquire a 35% stake in the NATPET joint venture
Debt and Liquidity
As of September 30, 2024, LyondellBasell's total long-term debt was reported at $11,132 million. Key debt instruments include:
| Debt Instrument | Amount (Millions) | Interest Rate | Maturity |
|---|---|---|---|
| Guaranteed Notes due 2030 | $500 | 2.25% | 2030 |
| Guaranteed Notes due 2033 | $500 | 5.625% | 2033 |
| Guaranteed Notes due 2034 | $750 | 5.5% | 2034 |
| Guaranteed Notes due 2040 | $750 | 3.375% | 2040 |
| Guaranteed Notes due 2049 | $1,000 | 4.2% | 2049 |
| Guaranteed Notes due 2050 | $1,000 | 4.2% | 2050 |
| Guaranteed Notes due 2051 | $1,000 | 3.625% | 2051 |
| Guaranteed Notes due 2060 | $500 | 3.8% | 2060 |
Market Trends and Outlook
LyondellBasell's performance is closely tied to the pricing of raw materials, particularly crude oil and natural gas. The company has seen fluctuations in average sales prices and margins across its segments, influenced by market conditions.
In the first nine months of 2024, the company generated $1,904 million in cash from operating activities, reflecting the effects of market demand and operational efficiency.
Environmental and Regulatory Considerations
As of September 30, 2024, accrued liabilities for future environmental remediation costs totaled $143 million. The company is actively managing its environmental obligations as part of its operational strategy.
How LyondellBasell Industries N.V. (LYB) Makes Money
Revenue Streams
LyondellBasell Industries N.V. generates revenue through various segments, primarily focusing on the production and marketing of olefins, polyolefins, intermediates, and derivatives, as well as refining products. As of the first nine months of 2024, the company reported total revenues of $30.805 billion, a decrease from $31.178 billion in the same period of 2023.
| Segment | Sales and Other Operating Revenues (Millions) |
|---|---|
| Olefins and Co-products | $2,950 |
| Polyethylene | $5,788 |
| Polypropylene | $4,782 |
| Propylene Oxide and Derivatives | $1,803 |
| Oxyfuels and Related Products | $3,914 |
| Intermediate Chemicals | $2,120 |
| Compounding and Solutions | $2,795 |
| Refined Products | $6,120 |
| Other | $533 |
| Total | $30,805 |
Segment Performance
Segment performance varies significantly based on market conditions and product demand. In the first nine months of 2024, the Olefins and Polyolefins-Americas segment generated revenues of $8.779 billion, reflecting a 4% increase compared to the previous year. The Olefins and Polyolefins-Europe, Asia, and International segment contributed $8.396 billion, also showing a 4% increase year-on-year.
Cost Structure
The company's cost of sales for the first nine months of 2024 was $26.991 billion, slightly higher than $26.909 billion in the same period of 2023. This increase was primarily driven by rising feedstock and energy costs.
| Expense Type | Cost (Millions) |
|---|---|
| Cost of Sales | $26,991 |
| Selling, General and Administrative Expenses | $1,237 |
| Research and Development Expenses | $96 |
EBITDA and Net Income
EBITDA for the first nine months of 2024 was reported at $3.865 billion, a slight decrease from $3.870 billion in the same period of 2023. The net income attributable to shareholders was $1.965 billion, compared to $1.931 billion in the previous year.
| Financial Metric | Value (Millions) |
|---|---|
| EBITDA | $3,865 |
| Net Income | $1,965 |
Investment and Capital Expenditures
LyondellBasell has maintained a disciplined capital allocation strategy, investing $1.335 billion in capital expenditures during the first nine months of 2024. This investment supports ongoing operations and future growth initiatives.
Market Conditions and Challenges
The refining segment faced challenges in 2024, with revenues decreasing to $6.489 billion from $7.314 billion in 2023. This decline was attributed to lower margins and decreased demand for refined products.
| Segment | Sales and Other Operating Revenues (Millions) |
|---|---|
| Refining | $6,489 |
Equity Investments and Losses
Losses from equity investments amounted to $66 million for the first nine months of 2024, a significant decline compared to an income of $11 million in the same period of 2023.
Cash Flow and Shareholder Returns
In the first nine months of 2024, LyondellBasell generated $1.904 billion in cash from operating activities. The company returned $1.400 billion to shareholders through dividends and share repurchases, reflecting its commitment to shareholder value.
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Article updated on 8 Nov 2024
Resources:
- LyondellBasell Industries N.V. (LYB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of LyondellBasell Industries N.V. (LYB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LyondellBasell Industries N.V. (LYB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.