LyondellBasell(US:LYB)2023-10-26 16:00Revenue Performance - Revenues for Q3 2023 increased by $319 million, or 3%, compared to Q2 2023, driven by higher volumes in O&P-Americas and I&D segments [111]. - Revenues for the first nine months of 2023 decreased by $9,067 million, or 23%, compared to the same period in 2022, primarily due to lower average sales prices [112]. - The company reported a total revenue of $10,625 million in Q3 2023, compared to $10,306 million in Q2 2023, and $31,178 million in the first nine months of 2023 compared to $40,245 million in the same period in 2022 [132]. - Sales and other operating revenues for the I&D segment increased by $419 million, or 16%, in Q3 2023 compared to Q2 2023, but decreased by $1,963 million, or 19%, in the first nine months of 2023 compared to the same period in 2022 [151][153]. - The Advanced Polymer Solutions (APS) segment reported a revenue decrease of $61 million, or 6%, in Q3 2023 compared to Q2 2023, and a decrease of $445 million, or 13%, in the first nine months of 2023 compared to the same period in 2022 [157][158]. - The Refining segment's revenues increased by $206 million, or 8%, in Q3 2023 compared to Q2 2023, but decreased by $1,946 million, or 21%, in the first nine months of 2023 compared to the same period in 2022 [165]. - The Technology segment's revenues increased by $64 million, or 42%, in Q3 2023 compared to Q2 2023, but decreased by $37 million, or 7%, in the first nine months of 2023 compared to the same period in 2022 [171]. Operating Income and Expenses - Operating income for the first nine months of 2023 decreased by $1,876 million, or 41%, compared to the first nine months of 2022, with declines across all segments [117]. - SG&A expenses increased by $182 million, or 19%, in the first nine months of 2023 compared to the same period in 2022, mainly due to higher employee-related expenses [115]. - Interest expense increased by $154 million, or 76%, in the first nine months of 2023 compared to the same period in 2022, largely due to lower capitalized interest [119]. - Comprehensive income decreased by $1,620 million in the first nine months of 2023 compared to the same period in 2022, primarily due to a decrease in net income [123]. Cash Flow and Capital Expenditures - Cash generated from operating activities in the first nine months of 2023 was $3,438 million, with $1,047 million allocated for capital expenditures and $1,415 million returned to shareholders [108]. - Cash provided by operating activities was $3,438 million in the first nine months of 2023, down from $4,515 million in the same period of 2022 [177][179]. - Capital expenditures in the first nine months of 2023 totaled $1,047 million, compared to $1,417 million in the same period of 2022 [181]. - The company plans to invest approximately $1.7 billion in capital expenditures for 2023, with about 70% allocated for sustaining maintenance [196]. Segment Performance - O&P-Americas segment revenue increased by $154 million, or 6%, in Q3 2023 compared to Q2 2023, but decreased by $3,246 million, or 28%, in the first nine months of 2023 compared to the same period in 2022 [135]. - EBITDA for the O&P-Americas segment decreased by $200 million, or 29%, in Q3 2023 compared to Q2 2023, and by $782 million, or 32%, in the first nine months of 2023 compared to the same period in 2022 [137]. - O&P-EAI segment revenue decreased by $283 million, or 10%, in Q3 2023 compared to Q2 2023, and by $2,865 million, or 26%, in the first nine months of 2023 compared to the same period in 2022 [143]. - EBITDA for the O&P-EAI segment decreased by $129 million, or 154%, in Q3 2023 compared to Q2 2023, and by $210 million, or 64%, in the first nine months of 2023 compared to the same period in 2022 [146]. - EBITDA for the I&D segment increased by $236 million, or 50%, in Q3 2023 compared to Q2 2023, and by $25 million, or 2%, in the first nine months of 2023 compared to the same period in 2022 [154]. - EBITDA for the APS segment decreased by $16 million, or 47%, in Q3 2023 compared to Q2 2023, and by $315 million, or 223%, in the first nine months of 2023 compared to the same period in 2022 [159]. - EBITDA for the Refining segment increased by $29 million, or 62%, in Q3 2023 compared to Q2 2023, but decreased by $303 million, or 45%, in the first nine months of 2023 compared to the same period in 2022 [167]. - EBITDA for the Technology segment increased by $67 million, or 85%, in Q3 2023 compared to Q2 2023, but decreased by $9 million, or 3%, in the first nine months of 2023 compared to the same period in 2022 [174]. Tax and Financial Position - The effective income tax rate for Q3 2023 was 17.0%, down from 20.8% in Q2 2023, primarily due to an audit settlement [120]. - Total debt, including current maturities, was $11,106 million as of September 30, 2023 [191]. - The company had total unused availability under credit facilities of $4,150 million at September 30, 2023 [192]. - As of September 30, 2023, the company had cash and cash equivalents totaling $2,833 million, with $1,638 million held outside the U.S. [190]. Future Outlook and Strategic Initiatives - The company expects average operating rates of 85% for O&P-Americas assets, 75% for European O&P-EAI assets, and 70% for I&D assets in Q4 2023 [197]. - The value enhancement program is anticipated to generate approximately $575 million in recurring annual net income improvement by the end of 2025, with a near-term target increased to $150 million of net income and $200 million of recurring annual EBITDA by year-end 2023 [198][199]. - The company plans to fund working capital, capital expenditures, and dividends with current available liquidity and cash from operations [188]. - The company expects seasonally softer demand across most businesses in Q4 2023, with pressures on global olefins and polyolefins margins due to higher feedstock costs and new industry capacity [197]. Shareholder Returns - In the first nine months of 2023, the company made dividend payments totaling $1,204 million, including a special dividend of $5.20 per share totaling $1,704 million paid in June 2022 [184]. - In the first nine months of 2023, the company repurchased approximately 2.3 million shares for $211 million under its share repurchase authorization [194]. Internal Controls - There have been no changes in internal controls over financial reporting that materially affected or are likely to materially affect internal control over financial reporting [217].