LyondellBasell(US:LYB)2024-11-01 18:29Financial Performance - Revenues for Q3 2024 decreased by $236 million, or 2%, compared to Q2 2024, primarily due to lower volumes and average sales prices [110]. - Operating income for Q3 2024 decreased by $168 million, or 17%, compared to Q2 2024, with declines in I&D, Refining, APS, and Technology segments [114]. - Comprehensive income decreased by $211 million in Q3 2024 compared to Q2 2024, primarily due to a decrease in net income [121]. - Total operating revenues for the company were $10,322 million in Q3 2024, down from $10,558 million in Q2 2024, and $30,805 million for the first nine months of 2024, compared to $31,178 million for the same period in 2023 [128]. - Operating income for the total company was $802 million in Q3 2024, down from $970 million in Q2 2024, and $2,476 million for the first nine months of 2024, compared to $2,738 million for the same period in 2023 [128]. - Revenue decreased by $358 million, or 4%, in the first nine months of 2024 compared to the same period in 2023, driven by lower average sales prices for oxyfuels and related products [144]. - The refining segment's revenue decreased by $825 million, or 11%, in the first nine months of 2024 compared to the same period in 2023, primarily due to lower product prices and sales volumes [158]. Cash Flow and Investments - The company generated $1,904 million in cash from operating activities during the first nine months of 2024, with $1,335 million invested in capital expenditures [106]. - Cash provided by operating activities was $1,904 million in the first nine months of 2024, reflecting earnings adjusted for non-cash items [168]. - Cash provided by operating activities for the first nine months of 2023 was $3,438 million, reflecting earnings adjusted for noncash items and cash used by working capital [170]. - In the first nine months of 2023, working capital components used $447 million of cash, primarily due to increases in accounts receivable and inventories [171]. - Capital expenditures in the first nine months of 2024 totaled $1,335 million, up from $1,047 million in the same period of 2023, with approximately 75% supporting sustaining maintenance [172]. - The company sold its EO&D business for $700 million and invested approximately $500 million to acquire a 35% stake in the NATPET joint venture in the second quarter of 2024 [173]. Segment Performance - Integrated polyethylene margins in the O&P-Americas segment increased due to favorable ethane and natural gas costs, along with higher polyethylene prices [103]. - O&P-Americas segment revenue increased by $56 million, or 2%, in Q3 2024 compared to Q2 2024, and by $363 million, or 4%, in the first nine months of 2024 compared to the same period in 2023 [132]. - EBITDA for the O&P-Americas segment rose by $88 million, or 13%, in Q3 2024 compared to Q2 2024, and by $250 million, or 15%, in the first nine months of 2024 compared to the first nine months of 2023 [134]. - O&P-EAI segment revenue decreased by $33 million, or 1%, in Q3 2024 compared to Q2 2024, but increased by $329 million, or 4%, in the first nine months of 2024 compared to the same period in 2023 [138]. - EBITDA for the O&P-EAI segment improved by $11 million, or 16%, in Q3 2024 compared to Q2 2024, and by $49 million, or 42%, in the first nine months of 2024 compared to the first nine months of 2023 [140]. - The refining segment reported a loss of $92 million in Q3 2024, compared to a loss of $57 million in Q2 2024, and a loss of $125 million for the first nine months of 2024, compared to a profit of $234 million for the same period in 2023 [128]. - EBITDA for the Technology segment decreased by $27 million, or 9%, in the first nine months of 2024 compared to the same period in 2023, attributed to lower catalyst margins and licensing results [165]. Tax and Expenses - The effective income tax rate for Q3 2024 was 18.8%, a decrease from 21.2% in Q2 2024, influenced by changes in pre-tax income and exempt income [119]. - SG&A expenses increased by $79 million, or 7%, in the first nine months of 2024 compared to the same period in 2023, mainly due to higher employee-related expenses [113]. - The company reported a total depreciation and amortization expense of $381 million in Q3 2024, down from $387 million in Q2 2024, and $1,133 million for the first nine months of 2024, compared to $1,154 million for the same period in 2023 [129]. Shareholder Returns and Debt - In the first nine months of 2024, dividend payments totaled $1,283 million, compared to $1,204 million in the same period in 2023 [176]. - The company plans to target shareholder returns of 70% of free cash flow over the long term, defined as net cash provided by operating activities less capital expenditures [180]. - As of September 30, 2024, total debt was $11,260 million, with total unused availability under credit facilities amounting to $4,650 million [181][182]. - As of September 30, 2024, cash and cash equivalents totaled $2,621 million, including $1,223 million held outside the U.S. [181]. Future Outlook - In the fourth quarter of 2024, the company expects operating rates of 85% for O&P-Americas assets, 60% for European O&P-EAI assets, and 75% for I&D assets [187]. - The company repurchased approximately 1.2 million shares for $117 million in the first nine months of 2024 under its share repurchase authorization [185].