LyondellBasell: Strong Q3 Performance Driven by Operational Excellence

LyondellBasell Industries NV (LYB) reported its third-quarter 2024 earnings on November 1, showcasing a robust performance driven by operational excellence and strategic initiatives. The chemical company's strong results highlight its resilience in the face of changing market conditions and commitment to long-term growth.

**Key Financial Highlights**

LyondellBasell's third-quarter 2024 earnings featured:

* Diluted earnings per share (EPS) of $1.75, excluding identified items
* Net income of $573 million, with $617 million excluding identified items
* Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.2 billion
* Cash from operating activities of $670 million
* Returned $479 million to shareholders through dividends and share repurchases


**Segment Performance**

* Olefins and Polyolefins – Americas: Strong performance driven by favorable ethane and natural gas costs, coupled with higher polyethylene prices.
* Olefins and Polyolefins – Europe, Asia, International: Expanded margins due to lower feedstock costs and stable polyolefins prices.
* Intermediates and Derivatives: Revenues of $2,896 million, a 6% decrease from the previous year's levels, with EBITDA of $358.64 million.
* Refining: Revenues of $1,764.9 million, a significant decline of 33.8% year-over-year, due to lower crude oil prices and gasoline crack spreads.

**Strategic Initiatives and Outlook**

LyondellBasell continues to make progress toward its long-term sustainability goals, including the construction of the MoReTec-1 catalytic advanced recycling facility in Germany. The company expects fourth-quarter operating rates of 85% for North American olefins and polyolefins assets, 60% for European O&P assets, and 75% for Intermediates & Derivatives assets.


In conclusion, LyondellBasell's strong third-quarter 2024 earnings demonstrate the company's operational excellence and commitment to long-term growth. Despite facing challenges in the Refining segment, LYB's robust performance in other segments, coupled with its strategic initiatives and focus on sustainability, positions the company well for future success. Investors should consider LyondellBasell as a strong value investment in the chemical sector.