HOUSTON and LONDON, Feb. 2, 2024
/PRNewswire/ --
Fourth Quarter 2023 Highlights
- Net Income: $185 million,
$411 million excluding identified
items(a)
- Diluted earnings per share: $0.56
per share, $1.26 per share excluding
identified items
- EBITDA: $639 million,
$910 million excluding identified
items
- Generated $1.5 billion of cash
from operating activities resulting in 171% cash
conversion(b)
- Returned $406 million in
dividends to shareholders
- Took final investment decision to build first commercial-scale
catalytic advanced recycling plant utilizing LYB's proprietary
MoReTec technology
- Announced divestiture of Ethylene Oxide and Derivatives
business for $700 million
Subsequent Event
- Entered agreement to acquire 35% of NATPET, a Saudi Arabian
PDH/PP joint venture, for $500
million
Full Year 2023 Highlights
Delivered resilient results amid bottoming markets
- Net Income: $2.1 billion,
$2.8 billion excluding identified
items
- Diluted earnings per share: $6.46
per share, $8.65 per share excluding
identified items
- EBITDA: $4.5 billion,
$5.2 billion excluding identified
items
- Generated $4.9 billion in cash
from operating activities
- Achieved 98% cash conversion(b)
Launched new strategy
- Three-pillar strategy to create a more profitable and
sustainable growth engine for LYB
- Significant progress on the strategy in 2023
- Successful start-up of world's largest propylene oxide
plant
- Active management of portfolio through divestiture, capacity
rationalization and investments
- Unlocked more than $300 million
net income(c) and $400
million in recurring annual EBITDA(c) through our
Value Enhancement Program
- Built foundation for a profitable Circular and Low-Carbon
Solutions business
Continued commitment to disciplined
capital allocation
- Increased quarterly dividend by 5%, 13th consecutive
year of annual dividend growth
- Returned $1.8 billion to
shareholders in dividends and share repurchases
- Issued inaugural green bond for $500
million
(a)
|
See "Information
Related to Financial Measures" for a discussion of the Company's
use of non-GAAP financial measures and Tables 2-9 for
reconciliations or calculations of these financial measures.
"Identified items" include inventory adjustments for lower of
cost or market ("LCM"), impairments and refinery exit
costs.
|
(b)
|
Cash conversion means
net cash provided by operating activities divided by EBITDA
excluding LCM and impairment.
|
(c)
|
Year-end run rate based
on 2017-2019 mid-cycle margins and modest inflation relative to
2021 baseline.
|
Comparisons with the prior quarter, fourth quarter 2022 and year
ended 2022 are available in the following table:
Table 1 -
Earnings Summary
|
Millions of U.S.
dollars (except share data)
|
Three Months
Ended
|
Year
Ended
|
December 31,
2023
|
September 30,
2023
|
December 31,
2022
|
December 31,
2023
|
December 31,
2022
|
Sales and other
operating revenues
|
$9,929
|
$10,625
|
$10,206
|
$41,107
|
$50,451
|
Net income
|
185
|
747
|
353
|
2,121
|
3,889
|
Diluted earnings per
share
|
0.56
|
2.29
|
1.07
|
6.46
|
11.81
|
Weighted average
diluted share count
|
326
|
325
|
327
|
326
|
328
|
EBITDA(a)
|
639
|
1,356
|
792
|
4,509
|
6,301
|
|
Excluding
Identified Items(a)
|
Net income excluding
identified items
|
$411
|
$804
|
$427
|
$2,838
|
$4,102
|
Diluted earnings per
share excluding identified items
|
1.26
|
2.46
|
1.29
|
8.65
|
12.46
|
Impairments,
pre-tax
|
241
|
25
|
—
|
518
|
69
|
Refinery exit costs,
pre-tax
|
50
|
49
|
95
|
334
|
187
|
EBITDA excluding
identified items
|
910
|
1,410
|
865
|
5,222
|
6,527
|
(a)
|
See "Information
Related to Financial Measures" for a discussion of the Company's
use of non-GAAP financial measures and Tables 2-9 for
reconciliations or calculations of these financial measures.
"Identified items" include adjustments for lower of cost or market
("LCM"), impairments and refinery exit costs.
|
LyondellBasell Industries (NYSE: LYB) today announced net income
for the fourth quarter 2023 of $185
million, or $0.56 per
share. During the quarter, the company recognized identified
items of $226 million, net of
tax. These items, which impacted earnings by $0.70 per share included non-cash asset
impairments and costs incurred from plans to exit the refining
business. Fourth quarter 2023 EBITDA was $639 million, or $910
million excluding identified items. In addition to the
identified items, non-cash LIFO inventory valuation charges
impacted pre-tax quarterly results by approximately $55 million.
Full year 2023 net income was $2.1
billion, or $6.46 per
share. During the year, the company recognized identified
items of $717 million, net of
tax. These items, which impacted full year earnings by
$2.19 per share included
non-cash asset impairments and costs incurred from plans to exit
the refining business. Full year 2023 EBITDA was $4.5 billion, or $5.2
billion excluding identified items.
"During the fourth quarter, LyondellBasell's businesses
delivered exceptional cash conversion amid challenging market
conditions while we rapidly moved forward with our strategy.
We have a clear and focused roadmap to deliver a more profitable
and sustainable growth engine for LYB. In the fourth quarter,
we announced the divestiture of our Ethylene Oxide and Derivatives
business and our decision to build the first catalytic advanced
recycling plant using LYB's proprietary MoReTec
technology. And just two weeks ago, we announced a new
propylene and polypropylene joint venture in Saudi Arabia.
These actions demonstrate our laser-sharp focus on execution," said
Peter Vanacker, LYB Chief Executive
Officer.
Significantly lower fourth quarter gasoline crack spreads
impacted refining and oxyfuels margins as well as the value of
co-product fuels in the Olefins & Polyolefins Americas
segment. In the North American polyethylene market, steady
domestic demand and increased exports were supported by lower
ethane raw material costs. Seasonally slow demand resulted in
low operating rates for most businesses.
Throughout the year, petrochemical markets faced headwinds from
soft global demand, capacity additions and economic
uncertainty. Markets were broadly pressured by weak demand
for durable goods, which impacted margins in the Olefins &
Polyolefins, Intermediates & Derivatives and Advanced Polymer
Solutions segments. In contrast, oxyfuels margins benefited
from tight supply and strong summertime gasoline crack spreads,
leading to record annual oxyfuels earnings for LYB.
LYB generated $4.9 billion in cash
from operating activities during 2023. The company remained
committed to a disciplined approach to capital allocation. In
2023, approximately $1.5 billion was
reinvested in the business through capital expenditures while
$1.8 billion was returned to
shareholders through quarterly dividends and share
repurchases. The company maintains a robust investment-grade
balance sheet, with $7.6 billion of
available liquidity at year-end.
LyondellBasell's strategy is focused on generating value-added
growth to deliver $3 billion of
incremental Normalized EBITDA by 2027(d). The
company is accelerating value creation through decisive portfolio
management, growth of manufacturing hubs to meet rapidly growing
demand for recycled and renewable solutions and initiatives that
are instilling an ownership culture. The LYB Value
Enhancement Program underpins this culture shift, delivering a 2023
year-end run rate of more than $300
million of net income and $400
million of recurring annual EBITDA.
"In the ten months since we launched LyondellBasell's strategy,
the passion, commitment and alignment of our global team is
increasingly visible in our actions, culture and results. The
successful startup of our new propylene oxide and oxyfuels plant is
one example of our commitment to grow and upgrade our core
businesses. We built strong foundations for our Circular and
Low Carbon Solutions business by forming partnerships to source and
sort plastic waste while moving forward on our first tranche of
advanced recycling capacity. And our cultural transformation
is well underway. Employee enthusiasm for the Value
Enhancement Program allowed us to far exceed the original 2023
targets for the program. Outstanding cash conversion
bolstered our investment-grade balance sheet and provided strong
returns for LYB shareholders," said Vanacker.
OUTLOOK
In the first quarter of 2024, seasonally slow
demand and economic uncertainty are expected to provide continued
headwinds for most businesses. Relatively low ethane raw
material costs are continuing to benefit North American Olefins
& Polyolefins margins while regional demand is showing modest
improvement. The company expects oxyfuels and refining
margins to be within typical winter seasonal ranges. In
China, January demand was subdued
as buyers managed inventories around Lunar New Year holidays and
growth remained uncertain. Spring and summer seasonal demand
improvements are expected across global markets. LYB is
aligning first quarter operating rates with global demand and
expects to operate Olefins & Polyolefins Americas assets at
approximately 80%, and both Olefins & Polyolefins EAI assets
and Intermediates & Derivatives assets at approximately
75%.
(d)
|
2027 incremental
Normalized EBITDA reflects expected improvement over a 2022
year-end asset portfolio with 2013-2022 historical average margins
and operating rates and the benefits associated with our strategic
initiatives. Please see "Information Related to Financial Measures"
for additional information on Normalized EBITDA.
|
CONFERENCE CALL
LyondellBasell will host a conference
call February 2 at 11 a.m. EST. Participants on the call will
include Chief Executive Officer Peter
Vanacker, Executive Vice President and Chief Financial
Officer Michael McMurray, Executive
Vice President of Global Olefins and Polyolefins Ken Lane, Executive Vice President of
Intermediates and Derivatives and Refining Kim Foley, Executive
Vice President of Advanced Polymer Solutions Torkel Rhenman and Head of Investor Relations
David Kinney. For event access, the toll-free dial-in number
is 1-877-407-8029, international dial-in number is 201-689-8029 or
click the CallMe link. The slides and webcast that accompany
the call will be available at
www.LyondellBasell.com/earnings. A replay of the call will be
available from 1:00 p.m. EST
February 2 until March 2. The
replay toll-free dial-in numbers are 1-877-660-6853 and
201-612-7415. The access ID for each is 13742056.
ABOUT LYONDELLBASELL
We are LyondellBasell – a leader
in the global chemical industry creating solutions for everyday
sustainable living. Through advanced technology and focused
investments, we are enabling a circular and low carbon economy.
Across all we do, we aim to unlock value for our customers,
investors and society. As one of the world's largest
producers of polymers and a leader in polyolefin technologies, we
develop, manufacture and market high-quality and innovative
products for applications ranging from sustainable transportation
and food safety to clean water and quality healthcare. For
more information, please visit or follow @LyondellBasell on
LinkedIn.
FORWARD-LOOKING STATEMENTS
The statements in this
release relating to matters that are not historical facts are
forward-looking statements. These forward-looking statements
are based upon assumptions of management of LyondellBasell which
are believed to be reasonable at the time made and are subject to
significant risks and uncertainties. When used in this
release, the words "estimate," "believe," "continue," "could,"
"intend," "may," "plan," "potential," "predict," "should," "will,"
"expect," and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Actual results could
differ materially based on factors including, but not limited to,
market conditions, the business cyclicality of the chemical,
polymers and refining industries; the availability, cost and price
volatility of raw materials and utilities, particularly the cost of
oil, natural gas, and associated natural gas liquids; our ability
to successfully implement initiatives identified pursuant to our
Value Enhancement Program and generate anticipated earnings;
competitive product and pricing pressures; labor conditions; our
ability to attract and retain key personnel; operating
interruptions (including leaks, explosions, fires, weather-related
incidents, mechanical failure, unscheduled downtime, supplier
disruptions, labor shortages, strikes, work stoppages or other
labor difficulties, transportation interruptions, spills and
releases and other environmental risks); the supply/demand balances
for our and our joint ventures' products, and the related effects
of industry production capacities and operating rates; our ability
to manage costs; future financial and operating results; benefits
and synergies of any proposed transactions; receipt of required
regulatory approvals and the satisfaction of closing conditions for
our proposed transactions; final investment decision and the
construction and operation of any proposed facilities described;
our ability to align our assets and expand our core; legal and
environmental proceedings; tax rulings, consequences or
proceedings; technological developments, and our ability to develop
new products and process technologies; our ability to meet our
sustainability goals, including the ability to operate safely,
increase production of recycled and renewable-based polymers to
meet our targets and forecasts, and reduce our emissions and
achieve net zero emissions by the time set in our goals; our
ability to procure energy from renewable sources; our ability to
build a profitable Circular & Low Carbon Solutions business;
the continued operation of and successful shut down and closure of
the Houston Refinery, including within the expected timeframe;
potential governmental regulatory actions; political unrest and
terrorist acts; risks and uncertainties posed by international
operations, including foreign currency fluctuations; and our
ability to comply with debt covenants and to repay our debt.
Additional factors that could cause results to differ materially
from those described in the forward-looking statements can be found
in the "Risk Factors" section of our Form 10-K for the year ended
December 31, 2022, which can be found
at www.LyondellBasell.com on the Investor Relations page and on the
Securities and Exchange Commission's website at www.sec.gov.
There is no assurance that any of the actions, events or results of
the forward-looking statements will occur, or if any of them do,
what impact they will have on our results of operations or
financial condition. Forward-looking statements speak only as
of the date they were made and are based on the estimates and
opinions of management of LyondellBasell at the time the statements
are made. LyondellBasell does not assume any obligation to
update forward-looking statements should circumstances or
management's estimates or opinions change, except as required by
law.
This release contains time sensitive information that is
accurate only as of the date hereof. Information contained in this
release is unaudited and is subject to change. We undertake
no obligation to update the information presented herein except as
required by law.
INFORMATION RELATED TO FINANCIAL MEASURES
This release
makes reference to certain non-GAAP financial measures as defined
in Regulation G of the U.S. Securities Exchange Act of 1934, as
amended.
We report our financial results in accordance with U.S.
generally accepted accounting principles, but believe that certain
non-GAAP financial measures, such as EBITDA, and EBITDA, net income
and diluted EPS exclusive of identified items provide useful
supplemental information to investors regarding the underlying
business trends and performance of the company's ongoing operations
and are useful for period-over-period comparisons of such
operations. Non-GAAP financial measures should be considered
as a supplement to, and not as a substitute for, or superior to,
the financial measures prepared in accordance with GAAP.
We calculate EBITDA as income from continuing operations plus
interest expense (net), provision for (benefit from) income taxes,
and depreciation and amortization. EBITDA should not be
considered an alternative to profit or operating profit for any
period as an indicator of our performance, or as an alternative to
operating cash flows as a measure of our liquidity. We also
present EBITDA, net income and diluted EPS exclusive of identified
items. Identified items include adjustments for "lower of
cost or market" ("LCM"), impairments and refinery exit costs.
Our inventories are stated at the lower of cost or market.
Cost is determined using the last-in, first-out ("LIFO") inventory
valuation methodology, which means that the most recently incurred
costs are charged to cost of sales and inventories are valued at
the earliest acquisition costs. Fluctuation in the prices of
crude oil, natural gas and correlated products from period to
period may result in the recognition of charges to adjust the value
of inventory to the lower of cost or market in periods of falling
prices and the reversal of those charges in subsequent interim
periods, within the same fiscal year as the charge, as market
prices recover. Property, plant and equipment are recorded at
historical costs. If it is determined that an asset or asset
group's undiscounted future cash flows will not be sufficient to
recover the carrying amount, an impairment charge is recognized to
write the asset down to its estimated fair value. Goodwill is
tested for impairment annually in the fourth quarter or whenever
events or changes in circumstances indicate that the fair value of
a reporting unit with goodwill is below its carrying amount.
If it is determined that the carrying value of the reporting unit
including goodwill exceeds its fair value, an impairment charge is
recognized. We assess our equity investments for impairment
whenever events or changes in circumstances indicate that the
carrying amount of the investment may not be recoverable. If
the decline in value is considered to be other-than-temporary, the
investment is written down to its estimated fair value. In
April 2022 we announced our decision
to cease operation of our Houston Refinery. In connection
with exiting the refinery business, we began to incur costs
primarily consisting of accelerated lease amortization costs,
personnel related costs, accretion of asset retirement obligations
and depreciation of asset retirement costs.
Recurring annual EBITDA for the Value Enhancement Program is the
year-end EBITDA run rate estimated based on 2017-2019 mid-cycle
margins and modest inflation relative to a 2021 baseline.
Normalized EBITDA assumes 2013-2022 historical average margins
and operating rates and reflects the benefits associated with the
following strategic initiatives: Grow & Upgrade the Core,
Building a Profitable CLCS Business and Step Up Performance &
Culture. Incremental Normalized EBITDA cannot be reconciled
to net income due to the inherent difficulty in quantifying certain
amounts that are necessary for such reconciliation at the strategic
initiative level, including adjustments that could be made for
interest expense (net), provision for (benefit from) income taxes
and depreciation & amortization, the amounts of which, based on
historical experience, could be significant.
Cash conversion is a measure commonly used by investors to
evaluate liquidity. Cash conversion means net cash provided
by operating activities divided by EBITDA excluding LCM and
impairment. We believe cash conversion is an important
financial metric as it helps management and other parties determine
how efficiently the company is converting earnings into
cash.
These non-GAAP financial measures as presented herein, may not
be comparable to similarly titled measures reported by other
companies due to differences in the way the measures are
calculated. In addition, we include calculations for certain
other financial measures to facilitate understanding. This
release contains time sensitive information that is accurate only
as of the time hereof. Information contained in this release
is unaudited and subject to change.
LyondellBasell undertakes no obligation to update the
information presented herein except to the extent required by
law.
Additional operating and financial information may be found on
our website at www.LyondellBasell.com/investorrelations.
These measures as presented herein, may not be comparable to
similarly titled measures reported by other companies due to
differences in the way the measures are calculated.
Table 2 -
Reconciliations of Net Income to Net Income Excluding Identified
Items and to EBITDA Including and Excluding Identified
Items
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
Millions of U.S.
dollars
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Net
income
|
$
185
|
|
$
747
|
|
$
353
|
|
$
2,121
|
|
$
3,889
|
add: Identified
items
|
|
|
|
|
|
|
|
|
|
Impairments,
pre-tax(a)
|
241
|
|
25
|
|
—
|
|
518
|
|
69
|
Refinery exit costs,
pre-tax(b)
|
50
|
|
49
|
|
95
|
|
334
|
|
187
|
Benefit from income
taxes related to identified items
|
(65)
|
|
(17)
|
|
(21)
|
|
(135)
|
|
(43)
|
Net income excluding
identified items
|
$
411
|
|
$
804
|
|
$
427
|
|
$
2,838
|
|
$
4,102
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
185
|
|
$
747
|
|
$
353
|
|
$
2,121
|
|
$
3,889
|
Loss from discontinued
operations, net of tax
|
1
|
|
1
|
|
2
|
|
5
|
|
5
|
Income from
continuing operations
|
186
|
|
748
|
|
355
|
|
2,126
|
|
3,894
|
(Benefit from)
provision for income taxes
|
(7)
|
|
153
|
|
34
|
|
501
|
|
882
|
Depreciation and
amortization(c)
|
380
|
|
367
|
|
334
|
|
1,534
|
|
1,267
|
Interest expense,
net
|
80
|
|
88
|
|
69
|
|
348
|
|
258
|
add: Identified
items
|
|
|
|
|
|
|
|
|
|
Impairments(a)
|
241
|
|
25
|
|
—
|
|
518
|
|
69
|
Refinery exit
costs(d)
|
30
|
|
29
|
|
73
|
|
195
|
|
157
|
EBITDA excluding
identified items
|
910
|
|
1,410
|
|
865
|
|
5,222
|
|
6,527
|
less: Identified
items
|
|
|
|
|
|
|
|
|
|
Impairments(a)
|
(241)
|
|
(25)
|
|
—
|
|
(518)
|
|
(69)
|
Refinery exit
costs(d)
|
(30)
|
|
(29)
|
|
(73)
|
|
(195)
|
|
(157)
|
EBITDA
|
$
639
|
|
$
1,356
|
|
$
792
|
|
$
4,509
|
|
$
6,301
|
|
|
|
|
|
|
|
|
|
|
(a) The year ended
December 31, 2023 reflects non-cash impairment charges of $518
million, which includes $192 million related to Dutch PO/SM joint
venture assets in our Intermediates & Derivatives segment,
recognized in the fourth quarter of 2023, and a non-cash goodwill
impairment charge of $252 million in our Advanced Polymer Solutions
segment, recognized in the first quarter of 2023. The year ended
December 31, 2022 reflects a non-cash impairment charge of $69
million related to the sale of our polypropylene manufacturing
facility in Australia.
|
(b) Refinery exit
costs include accelerated lease amortization costs, personnel
related costs, accretion of asset retirement obligations and
depreciation of asset retirement costs. See Table 9 for additional
detail on refinery exit costs.
|
(c) Depreciation
and amortization includes depreciation of asset retirement costs in
connection with exiting the Refining business. See Table 9 for
additional detail on refinery exit costs.
|
(d) Refinery exit
costs include accelerated lease amortization costs, personnel
related costs and accretion of asset retirement obligations. See
Table 9 for additional detail on refinery exit costs.
|
Table 3 -
Reconciliation of Diluted EPS to Diluted EPS Excluding Identified
Items
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
September
30, 2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Diluted earnings per
share
|
$
0.56
|
|
$
2.29
|
|
$
1.07
|
|
$
6.46
|
|
$
11.81
|
add: Identified
items
|
|
|
|
|
|
|
|
|
|
Impairments
|
0.59
|
|
0.05
|
|
—
|
|
1.41
|
|
0.21
|
Refinery exit
costs
|
0.11
|
|
0.12
|
|
0.22
|
|
0.78
|
|
0.44
|
Diluted earnings per
share excluding identified items
|
$
1.26
|
|
$
2.46
|
|
$
1.29
|
|
$
8.65
|
|
$
12.46
|
|
|
|
|
|
|
|
|
|
|
Table 4 -
Reconciliation of Net Cash Provided by Operating Activities to
EBITDA Including and Excluding
LCM and Impairments
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
Millions of U.S.
dollars
|
December
31,
2023
|
|
December
31,
2023
|
Net cash provided by
operating activities
|
$
1,504
|
|
$
4,942
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
(380)
|
|
(1,534)
|
Impairments(a)
|
(241)
|
|
(518)
|
Amortization of
debt-related costs
|
(2)
|
|
(9)
|
Share-based
compensation
|
(20)
|
|
(91)
|
Equity loss, net of
distributions of earnings
|
(91)
|
|
(189)
|
Deferred income tax
benefit (provision)
|
5
|
|
(43)
|
Changes in assets and
liabilities that used (provided) cash:
|
|
|
|
Accounts
receivable
|
(392)
|
|
(110)
|
Inventories
|
(214)
|
|
(18)
|
Accounts
payable
|
(110)
|
|
(141)
|
Other, net
|
126
|
|
(168)
|
Net income
|
185
|
|
2,121
|
Loss from discontinued
operations, net of tax
|
1
|
|
5
|
Income from continuing
operations
|
186
|
|
2,126
|
(Benefit from)
provision for income taxes
|
(7)
|
|
501
|
Depreciation and
amortization
|
380
|
|
1,534
|
Interest expense,
net
|
80
|
|
348
|
add: LCM
charges
|
—
|
|
—
|
add:
Impairments(a)
|
241
|
|
518
|
EBITDA excluding LCM
and impairments
|
880
|
|
5,027
|
less: LCM
charges
|
—
|
|
—
|
less:
Impairments(a)
|
(241)
|
|
(518)
|
EBITDA
|
$
639
|
|
$
4,509
|
|
|
|
|
(a) Reflects
non-cash impairment charges of $518 million, which includes $192
million related to Dutch PO/SM
joint venture assets in our Intermediates & Derivatives
segment, recognized in the fourth quarter of 2023, and a
non-cash goodwill impairment charge of $252 million in our Advanced
Polymer Solutions segment, recognized
in the first quarter of 2023.
|
Table 5 -
Calculation of Cash Conversion
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
Millions of U.S.
dollars
|
December 31,
2023
|
|
December 31,
2023
|
Net cash provided by
operating activities
|
$
1,504
|
|
$
4,942
|
Divided by:
|
|
|
|
EBITDA excluding LCM
and impairment(a)
|
880
|
|
5,027
|
Cash
conversion
|
171 %
|
|
98 %
|
|
|
|
|
(a) See Table 4
for a reconciliation of net cash provided by operating activities
to EBITDA
including and excluding LCM and impairments.
|
Table 6 -
Calculation of Cash and Liquid Investments and Total
Liquidity
|
|
|
|
Millions of U.S.
dollars
|
December
31,
2023
|
Cash and cash
equivalents and restricted cash
|
$
|
3,405
|
Short-term
investments
|
|
—
|
Cash and liquid
investments
|
$
|
3,405
|
|
|
|
Availability under
Senior Revolving Credit Facility
|
|
3,250
|
Availability under U.S.
Receivables Facility
|
|
900
|
Total
liquidity
|
$
|
7,555
|
|
|
|
Table 7 -
Calculation of Dividends and Share Repurchases
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
Millions of U.S.
dollars
|
December 31,
2023
|
|
December 31,
2023
|
Dividends - common
stock
|
$
406
|
|
$
1,610
|
Repurchase of Company
ordinary shares
|
—
|
|
211
|
Dividends and share
repurchases
|
$
406
|
|
$
1,821
|
|
|
|
|
Table 8 -
Reconciliation of Net Income to recurring annual
EBITDA for the Value Enhancement Program
|
|
|
|
|
|
Millions of U.S.
dollars
|
|
|
2023
|
Net income
|
|
|
$
|
300
|
Provision for income
taxes
|
|
|
|
75
|
Depreciation and
amortization
|
|
|
|
25
|
Interest expense,
net
|
|
|
|
—
|
EBITDA
|
|
|
$
|
400
|
|
|
|
|
|
Note: In 2022, we
launched the Value Enhancement Program.
In 2023, the program delivered a 2023 a year-end run rate of
approximately $300 million of net income and $400 million of
recurring annual EBITDA.
|
Table 9 - Refinery
Exit Costs
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
Millions of U.S.
dollars
|
December 31,
2023
|
|
September
30, 2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Refinery exit
costs:
|
|
|
|
|
|
|
|
|
|
Accelerated lease
amortization costs
|
$
10
|
|
$
11
|
|
$
55
|
|
$
110
|
|
$
91
|
Personnel
costs
|
17
|
|
16
|
|
16
|
|
76
|
|
64
|
Asset retirement
obligation accretion
|
3
|
|
2
|
|
2
|
|
9
|
|
2
|
Asset retirement cost
depreciation
|
20
|
|
20
|
|
22
|
|
139
|
|
30
|
Total refinery exits
costs
|
$
50
|
|
$
49
|
|
$
95
|
|
$
334
|
|
$
187
|
|
|
|
|
|
|
|
|
|
|
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SOURCE LyondellBasell