LyondellBasell(US:LYB)2024-02-21 16:00Environmental and Sustainability Goals - In 2023, the company incurred capital expenditures of $256 million for health, safety, and environmental compliance, with estimates of $246 million in 2024 and $288 million in 2025[90]. - The company aims to produce and market at least two million metric tons of recycled and renewable-based polymers annually by 2030, representing approximately 20% of its 2023 global sales of polyethylene and polypropylene[92]. - The company plans to reduce scope 1 and 2 greenhouse gas emissions by 42% by 2030 and scope 3 emissions by 30% relative to a 2020 baseline[95]. - The Wesseling site in Germany is expected to reduce scope 1 emissions by 150 thousand metric tons annually through process heat recovery and electrification projects starting in 2024[96]. - The company has executed power purchase agreements that will generate an estimated 3.7 million megawatt hours of renewable electricity annually, reducing scope 2 emissions by more than 1.3 million metric tons of carbon emissions[97]. - Closing the Houston refinery by the end of Q1 2025 is expected to reduce scope 1 and 2 GHG emissions by over 3 million metric tons annually and scope 3 emissions by approximately 40 million metric tons annually[98]. - The company aims to secure at least 50% of its global electricity from renewable sources by 2030, achieving almost 90% of this target as of December 2023[97]. - The company plans to allocate approximately 20% of its total capital expenditures over the next two years to support sustainability goals[102]. Financial Performance - For the year ended December 31, 2023, the company reported sales and other operating revenues of $41,107 million, a decrease of 18.5% compared to $50,451 million in 2022[387]. - The operating income for 2023 was $3,053 million, down 40.0% from $5,101 million in 2022[387]. - The net income attributable to the company shareholders for 2023 was $2,114 million, a decline of 45.5% from $3,882 million in 2022[387]. - The comprehensive income attributable to the company shareholders for 2023 was $2,010 million, a decrease of 53.5% from $4,313 million in 2022[389]. - Net income for 2023 was $2,121 million, a decrease of 45.5% from $3,889 million in 2022[398]. - Net cash provided by operating activities decreased to $4,942 million in 2023 from $6,119 million in 2022, reflecting a decline of 18.8%[398]. - Cash flows used in investing activities were $1,777 million in 2023, compared to $1,977 million in 2022, a decrease of 10.1%[401]. - Dividends paid on common stock in 2023 amounted to $1,610 million, down from $3,246 million in 2022, a reduction of 50.5%[401]. - The company repurchased $211 million of ordinary shares in 2023, compared to $420 million in 2022, a decrease of 49.8%[401]. Assets and Liabilities - Total current assets increased to $13,152 million in 2023, compared to $11,845 million in 2022, reflecting a growth of 11.0%[392]. - The total assets of the company reached $37,000 million as of December 31, 2023, up from $36,365 million in 2022, indicating a growth of 1.8%[392]. - The company’s long-term debt decreased slightly to $10,333 million in 2023 from $10,540 million in 2022[394]. - The company’s cash and cash equivalents increased significantly to $3,390 million in 2023, compared to $2,151 million in 2022, representing a growth of 57.5%[392]. - The company reported contract liabilities of $175 million as of December 31, 2023, compared to $167 million in 2022[492]. - Total assets held for sale amounted to $444 million, while total liabilities held for sale were $120 million as of December 31, 2023[491]. Equity and Investments - The company reported an equity loss of $20 million in 2023, compared to an income of $5 million in 2022[398]. - The ending balance of equity investments decreased to $3,907 million in 2023 from $4,295 million in 2022, reflecting a loss from equity investments of $20 million[509]. - Capital contributions to PO Joint Ventures in 2023 were $54 million, compared to $108 million in 2022[509]. - A non-cash impairment charge of $192 million was recorded for the European PO joint venture in Q4 2023 due to negative financial performance[510]. Debt and Interest Management - As of December 31, 2023, the total notional amount of interest rate swaps was $2,171 million, effectively converting fixed-rate debt to variable-rate debt[357]. - Approximately 80% of the company's debt portfolio incurred interest at a fixed rate as of December 31, 2023[358]. - The company has available borrowing capacity under its $3,250 million Senior Revolving Credit Facility and $900 million U.S. Receivables Facility, with no outstanding borrowings as of December 31, 2023[359]. - The company employs interest rate swaps to manage interest rate risk, converting fixed-rate debt to floating-rate debt[460]. Operational Metrics - The product off-take of propylene oxide and its co-products from the PO Joint Ventures was 2.2 million tons in 2023, compared to 2.4 million tons in 2022 and 2.6 million tons in 2021[431]. - The product off-take of ethylene and polyethylene from the Louisiana Joint Venture was 1.2 million tons in 2023, up from 1.0 million tons in 2022 and 1.1 million tons in 2021[431]. Tax and Compliance - The company recorded an income tax provision of $501 million as of December 31, 2023, with unrecognized tax benefits amounting to $288 million[380]. - The company recognizes uncertain income tax positions when it is more likely than not that the position will be sustained upon examination[440]. Impairments and Charges - The company reported a non-cash goodwill impairment of $252 million in the Advanced Polymer Solutions segment in Q1 2023 due to the transfer of certain businesses[434]. - The carrying amount of goodwill as of December 31, 2023, was $1,647 million, net of accumulated impairment charges of $252 million[506]. - A non-cash goodwill impairment charge of $252 million was recognized in Q1 2023 in the Advanced Polymer Solutions segment[508]. Miscellaneous - The company has various sales facilities worldwide, with executive offices located in London, Rotterdam, Houston, and Hong Kong[123]. - The company’s Asia-Pacific headquarters are located in Hong Kong, with technical support centers in multiple countries[123].