Olefin & Polyolefins Americas (O&P Americas) EBITDA: $521 million; lower feedstock and energy costs offset by lower volumes due to planned and unplanned downtime.
Olefin & Polyolefins Europe, Asia, and International (O&P EAI) EBITDA: $14 million; higher volumes from near-shoring and increased demand from restocking improved results.
Refining Segment EBITDA: $71 million; improvement in gasoline crack spread partially offset by lower volumes related to planned and unplanned downtime.
Intermediates & Derivatives (I&D) Segment EBITDA: $312 million; benefited from logistics disruptions and higher styrene margins, though offset by lower oxyfuels margins.
Advanced Polymer Solutions (APS) EBITDA: $35 million; improved due to higher volumes across the portfolio and improved product mix, offset by fixed cost investments.
Technology Segment EBITDA: $118 million; higher licensing revenue and improved catalyst margins contributed to the results.
Cash from Operating Activities: Consumed about $100 million, primarily due to a working capital build of just over $600 million.
Future Guidance
Operating Rates: Expect operations at 85% for global olefins and polyolefins assets and 80% for intermediates and derivative assets in Q2.
Financial Targets for Circular and Low-Carbon Solutions business: Incremental EBITDA contribution of $500 million by 2027 and $1 billion by 2030.
Technology Segment: Q2 results expected to be similar or slightly better than Q4 2023.
Refining Segment: Aim to maximize crude throughput at the refinery and operate approximately 95% of capacity in Q2.
Trends, Market Conditions, Sentiment
Circular and Low-Carbon Solutions (CLCS): Strong emphasis on building a profitable CLCS business, leveraging investments across plastic waste sourcing, advanced sorting, mechanical recycling, and advanced recycling.
Market Dynamics: North American polyethylene market shows stable domestic prices with high export demand. European markets expected to see modest improvements with recovering industrial activity. Slow but steady improvement observed in China markets.
Seasonal Demand: Typical increases expected along with moderate improvements in markets throughout the year, including improved export demand for polyethylene in the Americas.
Notable Quotes
”There is no greater accomplishment than having every member of our team return home in the same health as when they began their working day,” emphasizing the importance of safety.
”LyondellBasell continues to generate resilient results while managing challenging market conditions,” reflecting on the company’s performance amidst industry pressures.
”We are executing on 3 strategic pillars,” detailing the firm’s strategy towards growth and sustainability.
”We’re building this business through a disciplined, capital-efficient strategy that leverages our existing infrastructure and our competitive advantages,” referring to the development of the CLCS business.
”We believe California offers a favorable backdrop to increase the recovery of plastic waste,” highlighting the strategic acquisition of California-based recycling assets.
”Our resilient cash generation has resulted in $1.8 billion returned to shareholders over the last 12 months through both dividends and share repurchases,” underscoring the company’s strong financial management and shareholder value creation.
