LyondellBasell(US:LYB)2025-02-27 19:10Environmental Compliance and Sustainability - In 2024, the company incurred capital expenditures of $269 million for health, safety, and environmental compliance, with an estimated $250 million expected annually for 2025 and 2026[89]. - The company aims to produce and market at least 2 million metric tons of recycled and renewable-based polymers annually by 2030, representing approximately 20% of its 2024 global sales of polyethylene and polypropylene[91]. - The Wesseling site in Germany implemented projects expected to reduce scope 1 emissions by approximately 130 thousand metric tons annually compared to 2020 levels[94]. - Power purchase agreements secured in 2024 are expected to generate an estimated 5.0 million megawatt hours of renewable electricity annually, reducing scope 2 emissions by more than 1.8 million metric tons of carbon emissions[95]. - Ceasing operations at the Houston refinery in Q1 2025 is expected to reduce scope 1 and 2 GHG emissions by more than 3 million metric tons annually and scope 3 emissions by approximately 40 million metric tons annually[96]. - The company has a goal to reduce absolute scope 1 and 2 GHG emissions by 42% and absolute scope 3 emissions by 30% by 2030 relative to a 2020 baseline[93]. - Capital spending to support sustainability goals, including investments in emissions reduction, will represent approximately 25% of total capital expenditures over the next two years[100]. Workforce and Diversity - As of December 31, 2024, the company had approximately 20,000 employees, with women holding 25% of global senior leadership roles[104][105]. - The company aims for at least 33% female and 33% male senior leaders globally by 2032[105]. - In 2024, the company achieved a 22% participation rate in its employee networks, up from 18% in 2023[107]. Financial Performance - For the year ended December 31, 2024, the company reported sales and other operating revenues of $40,302 million, a decrease of 1.96% from $41,107 million in 2023[370]. - The operating income for 2024 was $1,817 million, down 40.5% from $3,053 million in 2023[370]. - The net income attributable to the company shareholders for 2024 was $1,360 million, a decline of 35.5% compared to $2,114 million in 2023[370]. - The company recorded a provision for income taxes of $240 million in 2024, down from $501 million in 2023[370]. - Cash flows from operating activities for 2024 were $3,819 million, a decrease of 22.7% from $4,942 million in 2023[380]. - The total assets of the company as of December 31, 2024, were $35,746 million, a decrease from $37,000 million in 2023[375]. - The company reported impairments of $949 million in 2024, significantly higher than $518 million in 2023[370]. - The company’s comprehensive income for 2024 was $1,311 million, down from $2,017 million in 2023[372]. Debt and Financial Management - At December 31, 2024, approximately 81% of the company's debt portfolio incurred interest at a fixed rate, while the remaining 19% incurred interest at a variable rate[345]. - The total notional amount of interest rate swaps was $2,158 million and $2,171 million for 2024 and 2023, respectively[344]. - The company has no borrowings under its Commercial Paper Program and no outstanding borrowings under its $3,750 million Senior Revolving Credit Facility and $900 million U.S. Receivables Facility as of December 31, 2024[346]. - Total long-term debt as of December 31, 2024, is $10,532 million, a slight increase from $10,333 million in 2023[498]. - The company has $11,030 million in total debt, with current maturities of $498 million[498]. - Aggregate maturities of debt include $617 million in 2025, $522 million in 2026, and $893 million in 2027[500]. Joint Ventures and Investments - The U.S. PO Joint Venture has an annual production capacity of 680 thousand tons of propylene oxide (PO) and the company takes the remaining PO production in-kind[409]. - The Louisiana Joint Venture produced 1.1 million tons of ethylene and polyethylene in 2024, a decrease from 1.2 million tons in 2023 and an increase from 1.0 million tons in 2022[413]. - The company accounts for joint ventures using the equity method, reporting the cost of product off-take as inventory and equity loss as cost of sales[411]. - The company recognized a non-cash impairment charge of $837 million related to property, plant, and equipment in the O&P-EAI segment due to challenging market conditions in Europe[483]. - Total equity investments increased to $4,121 million in 2024 from $3,907 million in 2023, with capital contributions of $113 million in 2024[492]. Inventory and Assets - Total inventories decreased to $4,658 million in 2024 from $4,765 million in 2023, with finished goods valued at $3,014 million[477]. - The estimated net realizable value of inventories over LIFO cost was approximately $1,310 million in 2024, down from $1,478 million in 2023[477]. - The company reported accounts receivable net of allowance for credit losses of $4 million in 2024, down from $6 million in 2023[476]. - The total depreciation and amortization expense for 2024 was $1,522 million, slightly down from $1,534 million in 2023[482]. Tax and Compliance - The company recognizes uncertain income tax positions when it is more likely than not that the position will be sustained upon examination[421]. - The company maintained effective internal control over financial reporting as of December 31, 2024, as confirmed by an independent audit[352]. Commodity and Currency Management - The company engages in commodity swap, option, and futures contracts to manage commodity price risk[336]. - The company utilizes cross-currency swap contracts to manage foreign currency exchange risk associated with intercompany loans[438]. - Forward-starting interest rate contracts are employed to mitigate risks from adverse changes in benchmark interest rates on future debt issuances[439]. - The company executes commodity futures, options, and swaps to manage commodity price volatility related to raw material purchases and product sales[440]. - Fair value measurements of commodity derivatives are based on closing market prices and third-party broker quotes[449].