LyondellBasell Reports 2018 Earnings

  • Net Income: $0.7 billion in the fourth quarter; $4.7 billion in 2018
  • Diluted earnings per share: $1.79 per share in the fourth quarter; $12.01 per share in 2018
  • EBITDA: $1.2 billion in the fourth quarter; $6.9 billion in 2018
  • Record annual EBITDA for Intermediates & Derivatives and Technology segments
  • Implemented our tenth dividend increase to $1.00 per share in 2018
  • Paid dividends and repurchased 11.5 million shares totaling $1.4 billion in the fourth quarter; $3.4 billion in 2018

LyondellBasell Industries (NYSE: LYB) announced net income for the fourth quarter 2018 of $0.7 billion, or $1.79 per share.  Fourth quarter 2018 EBITDA was $1.2 billion.  Full year 2018 net income was $4.7 billion, or $12.01 per share, and EBITDA was $6.9 billion.  The full year 2018 included a $346 million non-cash tax settlement that increased earnings by $0.88 per share and $73 million of transaction and integration costs that decreased earnings by $0.14 per share.  Integration activities related to the acquisition of A. Schulman are on schedule with $47 million in forward annual run-rate synergies as of December 31, 2018.

„During the past year LyondellBasell extended our proven track record of delivering strong earnings for our shareholders.  Despite market challenges in the second half of 2018 and both planned and unplanned downtime that impacted fourth quarter earnings by approximately $225 million, we leveraged the diversity of our global business portfolio and the agility of our commercial teams to generate approximately $5.5 billion of cash from operating activities for the year.  In 2018 we improved upon our company safety record and established new EBITDA records in our Intermediates & Derivatives and Technology segments through market improvements, targeted contracting strategies and an increased number of polyolefin technology licenses,“ said Bob Patel, LyondellBasell CEO.

„Our fourth quarter results were impacted by the extraordinary fall in the price of crude oil, unusual operational events and a very difficult refining market.  As oil prices fell by 40% during the fourth quarter, our non-U.S. Olefins and Polyolefins business experienced declining demand as customers delayed orders and destocked inventories in expectations of lower pricing.  This destocking and associated pricing pressures compounded the effects of typical fourth quarter seasonality.  Our Olefins and Polyolefins, Europe, Asia and International segment was also impacted by decreased automotive demand, low water levels on the Rhine River, extended maintenance at our Wesseling, Germany cracker and feedstock supply constraints at our Münchsmünster, Germany cracker during the fourth quarter.  High U.S. gasoline inventories and unusually weak discounts for Maya crude oil pressured our fourth quarter refining margins.  Nevertheless, we are well positioned to capture the benefits of expected refining market improvements with no planned maintenance at our refinery in 2019 or 2020.“

„With the acquisition of A. Schulman in August, we captured an opportunity to expand into new markets, created an additional platform for growth and realized $47 million in forward annual run-rate synergies, with more to come in 2019 and 2020.  We managed our business portfolio by launching an innovative recycling joint venture with Suez, strengthening our joint venture footprint in Asia, divesting a carbon black subsidiary in France and working toward the consolidation of assets from Linde at our La Porte, Texas site.  In February, we increased our quarterly dividend by 11% and we returned $3.4 billion to shareholders in dividends and share repurchases during 2018,“ Patel said.

OUTLOOK
„During the first weeks of the year, we have seen normalization of markets with increased polymer demand and modest improvements in the discount for Maya crude oil.  LyondellBasell’s growth accelerates in 2019 with the planned startup of our Hyperzone polyethylene plant and continued construction on our new PO/TBA plant which is on track for completion in 2021.  Global polyethylene capacity additions are expected to moderate during 2019 and 2020, providing support for high industry operating rates and ethylene chain profitability.“

„Our strong balance sheet offers optionality for investment in our organic growth pipeline and value-creating inorganic opportunities while our cash flows continue to provide significant shareholder returns,“ said Patel.

Quelle: LyondellBasell