Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 20222023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                
Commission file number: 001-34726
LYONDELLBASELL INDUSTRIES N.V.
(Exact name of registrant as specified in its charter)
Netherlands 98-0646235
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1221 McKinney St.,4th Floor, One Vine Street
Suite 300LondonDelftseplein 27E
Houston,TexasW1J0AH3013AARotterdam
USA77010United KingdomNetherlands
(Addresses of registrant’s principal executive offices) (Zip Code)
(713)309-7200+44 (0)207220 2600+31 (0)102755 500
(Registrant’s telephone numbers, including area codes)

(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange On Which Registered
Ordinary Shares, €0.04 Par ValueLYBNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
The registrant had 327,621,817325,274,141 ordinary shares, €0.04 par value, outstanding at April 27, 202226, 2023 (excluding 12,647,65015,148,357 treasury shares).


Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
TABLE OF CONTENTS
 
 Page



Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
March 31,
Three Months Ended
March 31,
Millions of dollars, except earnings per shareMillions of dollars, except earnings per share20222021Millions of dollars, except earnings per share20232022
Sales and other operating revenues:Sales and other operating revenues:Sales and other operating revenues:
TradeTrade$12,840 $8,851 Trade$10,076 $12,840 
Related partiesRelated parties317 231 Related parties171 317 
13,157 9,082 10,247 13,157 
Operating costs and expenses:Operating costs and expenses:Operating costs and expenses:
Cost of salesCost of sales11,136 7,678 Cost of sales8,864 11,136 
ImpairmentImpairment252 — 
Selling, general and administrative expensesSelling, general and administrative expenses328 287 Selling, general and administrative expenses385 328 
Research and development expensesResearch and development expenses32 29 Research and development expenses33 32 
11,496 7,994 9,534 11,496 
Operating incomeOperating income1,661 1,088 Operating income713 1,661 
Interest expenseInterest expense(74)(110)Interest expense(116)(74)
Interest incomeInterest incomeInterest income23 
Other income, netOther income, net19 25 Other income, net19 
Income from continuing operations before equity investments and income taxesIncome from continuing operations before equity investments and income taxes1,608 1,005 Income from continuing operations before equity investments and income taxes625 1,608 
Income from equity investmentsIncome from equity investments29 137 Income from equity investments17 29 
Income from continuing operations before income taxesIncome from continuing operations before income taxes1,637 1,142 Income from continuing operations before income taxes642 1,637 
Provision for income taxesProvision for income taxes316 70 Provision for income taxes167 316 
Income from continuing operationsIncome from continuing operations1,321 1,072 Income from continuing operations475 1,321 
Loss from discontinued operations, net of taxLoss from discontinued operations, net of tax(1)(2)Loss from discontinued operations, net of tax(1)(1)
Net incomeNet income1,320 1,070 Net income474 1,320 
Dividends on redeemable non-controlling interestsDividends on redeemable non-controlling interests(2)(2)Dividends on redeemable non-controlling interests(2)(2)
Net income attributable to the Company shareholdersNet income attributable to the Company shareholders$1,318 $1,068 Net income attributable to the Company shareholders$472 $1,318 
Earnings per share:Earnings per share:Earnings per share:
Net income (loss) attributable to the Company shareholders —
Net income attributable to the Company shareholders —Net income attributable to the Company shareholders —
BasicBasicBasic
Continuing operationsContinuing operations$4.01 $3.20 Continuing operations$1.45 $4.01 
Discontinued operationsDiscontinued operations— (0.01)Discontinued operations— — 
$4.01 $3.19 $1.45 $4.01 
DilutedDilutedDiluted
Continuing operationsContinuing operations$4.00 $3.19 Continuing operations$1.44 $4.00 
Discontinued operationsDiscontinued operations— (0.01)Discontinued operations— — 
$4.00 $3.18 $1.44 $4.00 
See Notes to the Consolidated Financial Statements.


1

Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended
March 31,
Millions of dollars20222021
Net income$1,320 $1,070 
Other comprehensive income (loss), net of tax –
Financial derivatives88 175 
Defined benefit pension and other postretirement benefit plans11 
Foreign currency translations(25)(107)
Total other comprehensive income, net of tax68 79 
Comprehensive income1,388 1,149 
Dividends on redeemable non-controlling interests(2)(2)
Comprehensive income attributable to the Company shareholders$1,386 $1,147 
Three Months Ended
March 31,
Millions of dollars20232022
Net income$474 $1,320 
Other comprehensive income (loss), net of tax –
Financial derivatives88 
Defined benefit pension and other postretirement benefit plans
Foreign currency translations59 (25)
Total other comprehensive income, net of tax65 68 
Comprehensive income539 1,388 
Dividends on redeemable non-controlling interests(2)(2)
Comprehensive income attributable to the Company shareholders$537 $1,386 
See Notes to the Consolidated Financial Statements.


2

Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
 
Millions of dollarsMillions of dollarsMarch 31, 2022December 31, 2021Millions of dollarsMarch 31,
2023
December 31,
2022
ASSETSASSETSASSETS
Current assets:Current assets:Current assets:
Cash and cash equivalentsCash and cash equivalents$1,785 $1,472 Cash and cash equivalents$1,790 $2,151 
Restricted cashRestricted cashRestricted cash14 
Short-term investments— 
Accounts receivable:Accounts receivable:Accounts receivable:
Trade, netTrade, net5,092 4,565 Trade, net3,715 3,392 
Related partiesRelated parties299 243 Related parties186 201 
InventoriesInventories4,979 4,901 Inventories5,158 4,804 
Prepaid expenses and other current assetsPrepaid expenses and other current assets1,127 1,022 Prepaid expenses and other current assets1,161 1,292 
Total current assetsTotal current assets13,291 12,217 Total current assets12,024 11,845 
Operating lease assetsOperating lease assets1,905 1,946 Operating lease assets1,677 1,725 
Property, plant and equipmentProperty, plant and equipment22,733 22,382 Property, plant and equipment24,130 23,724 
Less: Accumulated depreciationLess: Accumulated depreciation(8,004)(7,826)Less: Accumulated depreciation(8,729)(8,337)
Property, plant and equipment, netProperty, plant and equipment, net14,729 14,556 Property, plant and equipment, net15,401 15,387 
Equity investmentsEquity investments4,743 4,786 Equity investments4,266 4,295 
GoodwillGoodwill1,866 1,875 Goodwill1,605 1,827 
Intangible assets, netIntangible assets, net673 695 Intangible assets, net651 662 
Other assetsOther assets647 667 Other assets631 624 
Total assetsTotal assets$37,854 $36,742 Total assets$36,255 $36,365 
See Notes to the Consolidated Financial Statements.






3

Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
 
Millions of dollars, except shares and par value dataMillions of dollars, except shares and par value dataMarch 31, 2022December 31, 2021Millions of dollars, except shares and par value dataMarch 31,
2023
December 31,
2022
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITYLIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITYLIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Current liabilities:Current liabilities:Current liabilities:
Current maturities of long-term debtCurrent maturities of long-term debt$$Current maturities of long-term debt$432 $432 
Short-term debtShort-term debt141 362 Short-term debt343 349 
Accounts payable:Accounts payable:Accounts payable:
TradeTrade4,238 3,460 Trade3,029 3,106 
Related partiesRelated parties776 831 Related parties543 477 
Accrued liabilitiesAccrued liabilities2,376 2,571 Accrued liabilities2,166 2,396 
Total current liabilitiesTotal current liabilities7,539 7,230 Total current liabilities6,513 6,760 
Long-term debtLong-term debt11,175 11,246 Long-term debt10,601 10,540 
Operating lease liabilitiesOperating lease liabilities1,610 1,649 Operating lease liabilities1,507 1,510 
Other liabilitiesOther liabilities2,215 2,295 Other liabilities1,899 1,954 
Deferred income taxesDeferred income taxes2,487 2,334 Deferred income taxes2,886 2,858 
Commitments and contingenciesCommitments and contingencies00Commitments and contingencies
Redeemable non-controlling interestsRedeemable non-controlling interests116 116 Redeemable non-controlling interests114 114 
Shareholders’ equity:Shareholders’ equity:Shareholders’ equity:
Ordinary shares, €0.04 par value, 1,275 million shares authorized, 327,644,034
and 329,536,389 shares outstanding, respectively
19 19 
Ordinary shares, €0.04 par value, 1,275 million shares authorized, 325,468,601 and 325,723,567 shares outstanding, respectivelyOrdinary shares, €0.04 par value, 1,275 million shares authorized, 325,468,601 and 325,723,567 shares outstanding, respectively19 19 
Additional paid-in capitalAdditional paid-in capital6,056 6,044 Additional paid-in capital6,092 6,119 
Retained earningsRetained earnings9,514 8,563 Retained earnings9,277 9,195 
Accumulated other comprehensive lossAccumulated other comprehensive loss(1,735)(1,803)Accumulated other comprehensive loss(1,307)(1,372)
Treasury stock, at cost, 12,625,433 and 10,675,605 ordinary shares, respectively(1,156)(965)
Treasury stock, at cost, 14,953,897 and 14,698,931 ordinary shares, respectivelyTreasury stock, at cost, 14,953,897 and 14,698,931 ordinary shares, respectively(1,360)(1,346)
Total Company share of shareholders’ equityTotal Company share of shareholders’ equity12,698 11,858 Total Company share of shareholders’ equity12,721 12,615 
Non-controlling interestsNon-controlling interests14 14 Non-controlling interests14 14 
Total equityTotal equity12,712 11,872 Total equity12,735 12,629 
Total liabilities, redeemable non-controlling interests and equityTotal liabilities, redeemable non-controlling interests and equity$37,854 $36,742 Total liabilities, redeemable non-controlling interests and equity$36,255 $36,365 
See Notes to the Consolidated Financial Statements.





4

Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
Three Months Ended
March 31,
Millions of dollarsMillions of dollars20222021Millions of dollars20232022
Cash flows from operating activities:Cash flows from operating activities:Cash flows from operating activities:
Net incomeNet income$1,320 $1,070 Net income$474 $1,320 
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortizationDepreciation and amortization311 335 Depreciation and amortization396 311 
ImpairmentImpairment252 — 
Amortization of debt-related costsAmortization of debt-related costsAmortization of debt-related costs
Share-based compensationShare-based compensation18 19 Share-based compensation24 18 
Equity investments—Equity investments—Equity investments—
Equity incomeEquity income(29)(137)Equity income(17)(29)
Distributions of earnings, net of taxDistributions of earnings, net of tax34 20 Distributions of earnings, net of tax22 34 
Deferred income tax provision (benefit)137 (83)
Deferred income tax provisionDeferred income tax provision137 
Changes in assets and liabilities that provided (used) cash:Changes in assets and liabilities that provided (used) cash:Changes in assets and liabilities that provided (used) cash:
Accounts receivableAccounts receivable(629)(593)Accounts receivable(279)(629)
InventoriesInventories(117)(360)Inventories(319)(117)
Accounts payableAccounts payable724 327 Accounts payable40 724 
Other, netOther, net(271)(32)Other, net(120)(271)
Net cash provided by operating activitiesNet cash provided by operating activities1,502 571 Net cash provided by operating activities482 1,502 
Cash flows from investing activities:Cash flows from investing activities:Cash flows from investing activities:
Expenditures for property, plant and equipmentExpenditures for property, plant and equipment(446)(340)Expenditures for property, plant and equipment(352)(446)
Proceeds from maturities of available-for-sale debt securities— 74 
Proceeds from equity securitiesProceeds from equity securities226 Proceeds from equity securities— 
Acquisition of equity method investmentAcquisition of equity method investment(2)— 
Other, netOther, net(18)(19)Other, net(17)(18)
Net cash used in investing activitiesNet cash used in investing activities(456)(59)Net cash used in investing activities(371)(456)
Cash flows from financing activities:Cash flows from financing activities:Cash flows from financing activities:
Repurchases of Company ordinary sharesRepurchases of Company ordinary shares(217)— Repurchases of Company ordinary shares(70)(217)
Dividends paid - common stockDividends paid - common stock(371)(352)Dividends paid - common stock(389)(371)
Repayments of long-term debt— (500)
Net repayments of commercial paper(169)— 
Net proceeds from (repayments of) commercial paperNet proceeds from (repayments of) commercial paper— (169)
Collateral received from interest rate derivativesCollateral received from interest rate derivatives51 66 Collateral received from interest rate derivatives— 51 
Other, netOther, net(7)Other, net(18)(7)
Net cash used in financing activitiesNet cash used in financing activities(713)(782)Net cash used in financing activities(477)(713)
Effect of exchange rate changes on cashEffect of exchange rate changes on cash(16)(32)Effect of exchange rate changes on cash14 (16)
Increase (decrease) in cash and cash equivalents and restricted cash317 (302)
(Decrease) increase in cash and cash equivalents and restricted cash(Decrease) increase in cash and cash equivalents and restricted cash(352)317 
Cash and cash equivalents and restricted cash at beginning of periodCash and cash equivalents and restricted cash at beginning of period1,477 1,765 Cash and cash equivalents and restricted cash at beginning of period2,156 1,477 
Cash and cash equivalents and restricted cash at end of periodCash and cash equivalents and restricted cash at end of period$1,794 $1,463 Cash and cash equivalents and restricted cash at end of period$1,804 $1,794 
See Notes to the Consolidated Financial Statements.


5

Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Ordinary SharesAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Company
Share of
Shareholders’
Equity
Non-
Controlling
Interests
Millions of dollarsIssuedTreasury
Balance, December 31, 2022$19 $(1,346)$6,119 $9,195 $(1,372)$12,615 $14 
Net income— — — 474 — 474 — 
Other comprehensive income— — — — 65 65 — 
Share-based compensation— 60 (27)(1)— 32 — 
Dividends - common stock ($1.19 per share)— — — (389)— (389)— 
Dividends - redeemable non-controlling interests ($15.00 per share)— — — (2)— (2)— 
Repurchases of Company ordinary shares— (74)— — — (74)— 
Balance, March 31, 2023$19 $(1,360)$6,092 $9,277 $(1,307)$12,721 $14 
Ordinary SharesAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Company
Share of
Shareholders’
Equity
Non-
Controlling
Interests
Millions of dollarsIssuedTreasury
Balance, December 31, 2021$19 $(965)$6,044 $8,563 $(1,803)$11,858 $14 
Net income— — — 1,320 — 1,320 — 
Other comprehensive income— — — — 68 68 — 
Share-based compensation— 11 12 — 27 — 
Dividends - common stock ($1.13 per share)— — — (371)— (371)— 
Dividends - redeemable non-controlling interests ($15.00 per share)— — — (2)— (2)— 
Repurchases of Company ordinary shares— (202)— — — (202)— 
Balance, March 31, 2022$19 $(1,156)$6,056 $9,514 $(1,735)$12,698 $14 
Ordinary SharesAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Company
Share of
Shareholders’
Equity
Non-
Controlling
Interests
Millions of dollarsIssuedTreasury
Balance, December 31, 2020$19 $(531)$5,986 $4,440 $(1,943)$7,971 $17 
Net income— — — 1,070 — 1,070 — 
Other comprehensive income— — — — 79 79 — 
Share-based compensation— 25 — 34 — 
Dividends - common stock ($1.05 per share)— — — (352)— (352)— 
Dividends - redeemable non-controlling interests ($15.00 per share)— — — (2)— (2)— 
Sales of non-controlling interest— — — — — — (3)
Balance, March 31, 2021$19 $(506)$5,993 $5,158 $(1,864)$8,800 $14 
See Notes to the Consolidated Financial Statements.


6

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTS
 
PagePage
1.1.1.
2.2.2.
3.3.3.
4.4.4.
5.5.5.
6.6.6.
7.7.7.
8.8.8.
9.9.9.
10.10.10.
11.11.11.
12.12.12.
 


7

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.    Basis of Presentation
LyondellBasell Industries N.V. is a limited liability company (Naamloze Vennootschap) incorporated under Dutch law by deed of incorporation dated October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”). LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a refiner of crude oil, a significant producer of gasoline blending components and a developer and licensor of technologies for the production of polymers.
The accompanying unaudited Consolidated Financial Statements have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.2022. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The results for interim periods are not necessarily indicative of results for the entire year.
Effective January 1, 2023, our Catalloy and polybutene-1 products were moved from our Advanced Polymer Solutions (“APS”) segment and reintegrated into our Olefins and Polyolefins-Americas (O&P-Americas”) and Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segments. This move allows the APS team to focus on our compounding and solutions business, and to develop a more agile operating model with meaningful regional and segment growth strategies. Segment information provided throughout the report has been revised for all periods presented to reflect these changes.
2.    Accounting and Reporting Changes
Recently Adopted Guidance
There were no new standards or Accounting Standard Updates (“ASU”) adoptedSupplier Finance Program—In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The guidance requires an entity that uses supplier finance programs in connection with the quarter ended Marchpurchase of goods and services to disclose certain qualitative and quantitative information about its programs including the key terms and conditions, activity during the period, and potential magnitude. The guidance is effective retrospectively for the year ending December 31, 2022 that had2023, including interim periods, with disclosures required for each period for which a balance sheet is presented, except for the disclosure of roll forward information, which is effective for fiscal years beginning after December 15, 2023. The adoption of this guidance did not have a material impact on our Consolidated Financial Statements.
Accounting Guidance Issued But Not Adopted as of March 31, 20222023
Government Assistance—Fair Value MeasurementIn November 2021,June 2022, the Financial Accounting Standards Board (“FASB”)FASB issued ASU 2021-10, Government Assistance2022-03, Fair Value Measurement (Topic 832)820): Disclosures by Business Entities about Government Assistance.Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The guidance requires disclosures about assistance received from the governmentclarifies that have been accounted for by analogizing to a grant or contribution accounting model including the nature and form of assistance, the accounting policies used to account for the assistance and its impactcontractual restriction on the entity’s financial statements.sale of an equity security is not considered part of the unit of account of the equity security because it is a characteristic of the entity holding the equity security rather than a characteristic of the security and is not considered in measuring its fair value. The guidance is effective prospectively for annualthe year ending December 31, 2024, including the interim periods, beginning after December 15, 2021, with early applicationthe impact of adoption reflected in earnings. Early adoption is permitted. The adoption of this guidance will not have a material impact on our Consolidated Financial Statements.


8

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


3.    Revenues
Contract Balances—Contract liabilities were $214$175 million and $169$167 million at March 31, 20222023 and December 31, 2021,2022, respectively. Revenue recognized in each reporting period, included in the contract liability balance at the beginning of the period, was immaterial.
Disaggregation of Revenues—Effective January 1, 2023, our Catalloy and polybutene-1 products were moved from our APS segment and reintegrated into our O&P-Americas and O&P-EAI segments. See Note 12 for additional detail regarding the change in segments. Consistent with this change, we have updated the disclosure of revenue disaggregated by key products for all periods presented.
The following table presents our revenues disaggregated by key products:
Three Months Ended
March 31,
Millions of dollars20222021
Sales and other operating revenues:
Olefins and co-products$1,157 $1,091 
Polyethylene2,684 2,153 
Polypropylene2,014 1,718 
Propylene oxide and derivatives885 502 
Oxyfuels and related products1,254 607 
Intermediate chemicals1,110 578 
Compounding and solutions1,135 1,038 
Advanced polymers272 231 
Refined products2,458 993 
Other188 171 
Total$13,157 $9,082 

Three Months Ended
March 31,
Millions of dollars20232022
Sales and other operating revenues:
Olefins and co-products$883 $1,157 
Polyethylene2,016 2,707 
Polypropylene1,526 2,263 
Propylene oxide and derivatives641 885 
Oxyfuels and related products1,233 1,254 
Intermediate chemicals746 1,110 
Compounding and solutions995 1,135 
Refined products2,057 2,458 
Other150 188 
Total$10,247 $13,157 
The following table presents our revenues disaggregated by geography, based upon the location of the customer:
Three Months Ended
March 31,
Three Months Ended
March 31,
Millions of dollarsMillions of dollars20222021Millions of dollars20232022
Sales and other operating revenues:Sales and other operating revenues:Sales and other operating revenues:
United StatesUnited States$6,074 $4,086 United States$4,852 $6,074 
GermanyGermany995 765 Germany786 995 
ChinaChina656 560 China514 656 
MexicoMexico430 442 
ItalyItaly518 378 Italy376 518 
Mexico442 247 
JapanJapan423 230 Japan365 423 
FranceFrance294 387 
PolandPoland395 270 Poland239 395 
The NetherlandsThe Netherlands390 270 The Netherlands233 390 
France387 290 
OtherOther2,877 1,986 Other2,158 2,877 
TotalTotal$13,157 $9,082 Total$10,247 $13,157 


9

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


4.    Accounts Receivable
Our accounts receivable are reflected in the Consolidated Balance Sheets, net of allowance for credit losses of $6 million as of March 31, 20222023 and December 31, 2021.2022.

5.    Inventories
Inventories consisted of the following components:
Millions of dollarsMillions of dollarsMarch 31, 2022December 31, 2021Millions of dollarsMarch 31,
2023
December 31,
2022
Finished goodsFinished goods$3,382 $3,329 Finished goods$3,443 $3,027 
Work-in-processWork-in-process206 178 Work-in-process219 227 
Raw materials and suppliesRaw materials and supplies1,391 1,394 Raw materials and supplies1,496 1,550 
Total inventoriesTotal inventories$4,979 $4,901 Total inventories$5,158 $4,804 


10

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


6.    Debt
Long-term loans, notes and other debt, net of unamortized discount and debt issuance cost, consisted of the following:
Millions of dollarsMillions of dollarsMarch 31, 2022December 31, 2021Millions of dollarsMarch 31,
2023
December 31,
2022
Senior Notes due 2024, $1,000 million, 5.75% ($2 million of debt issuance cost)$773 $773 
Senior Notes due 2024, $1,000 million, 5.75% ($1 million of debt issuance cost)Senior Notes due 2024, $1,000 million, 5.75% ($1 million of debt issuance cost)$774 $774 
Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $11 million of debt issuance cost)Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $11 million of debt issuance cost)974 974 Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $11 million of debt issuance cost)974 974 
Guaranteed Notes due 2027, $300 million, 8.1%Guaranteed Notes due 2027, $300 million, 8.1%300 300 Guaranteed Notes due 2027, $300 million, 8.1%300 300 
Issued by LYB International Finance B.V.:Issued by LYB International Finance B.V.:Issued by LYB International Finance B.V.:
Guaranteed Notes due 2023, $750 million, 4.0% ($1 million of discount)424 423 
Guaranteed Notes due 2043, $750 million, 5.25% ($19 million of discount; $7 million of debt issuance cost)724 724 
Guaranteed Notes due 2044, $1,000 million, 4.875% ($10 million of discount; $9 million of debt issuance cost)981 981 
Guaranteed Notes due 2023, $750 million, 4.0%Guaranteed Notes due 2023, $750 million, 4.0%425 424 
Guaranteed Notes due 2043, $750 million, 5.25% ($19 million of discount; $6 million of debt issuance cost)Guaranteed Notes due 2043, $750 million, 5.25% ($19 million of discount; $6 million of debt issuance cost)725 725 
Guaranteed Notes due 2044, $1,000 million, 4.875% ($10 million of discount; $8 million of debt issuance cost)Guaranteed Notes due 2044, $1,000 million, 4.875% ($10 million of discount; $8 million of debt issuance cost)982 982 
Issued by LYB International Finance II B.V.:Issued by LYB International Finance II B.V.:Issued by LYB International Finance II B.V.:
Guaranteed Notes due 2026, €500 million, 0.875% ($1 million of discount; $2 million of debt issuance cost)Guaranteed Notes due 2026, €500 million, 0.875% ($1 million of discount; $2 million of debt issuance cost)547 562 Guaranteed Notes due 2026, €500 million, 0.875% ($1 million of discount; $2 million of debt issuance cost)529 518 
Guaranteed Notes due 2027, $1,000 million, 3.5% ($3 million of discount; $3 million of debt issuance cost)612 631 
Guaranteed Notes due 2031, €500 million, 1.625% ($5 million of discount; $3 million of debt issuance cost)547 558 
Guaranteed Notes due 2027, $1,000 million, 3.5% ($2 million of discount; $2 million of debt issuance cost)Guaranteed Notes due 2027, $1,000 million, 3.5% ($2 million of discount; $2 million of debt issuance cost)590 587 
Guaranteed Notes due 2031, €500 million, 1.625% ($4 million of discount; $3 million of debt issuance cost)Guaranteed Notes due 2031, €500 million, 1.625% ($4 million of discount; $3 million of debt issuance cost)528 516 
Issued by LYB International Finance III LLC:Issued by LYB International Finance III LLC:Issued by LYB International Finance III LLC:
Guaranteed Notes due 2025, $500 million, 1.25% ($1 million of discount; $3 million of debt issuance cost)479 486 
Guaranteed Notes due 2025, $500 million, 1.25% ($1 million of discount; $2 million of debt issuance cost)Guaranteed Notes due 2025, $500 million, 1.25% ($1 million of discount; $2 million of debt issuance cost)477 475 
Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of debt issuance cost)Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of debt issuance cost)133 143 Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of debt issuance cost)124 120 
Guaranteed Notes due 2030, $500 million, 2.25% ($3 million of discount; $4 million of debt issuance cost)481 490 
Guaranteed Notes due 2030, $500 million, 2.25% ($3 million of discount; $3 million of debt issuance cost)Guaranteed Notes due 2030, $500 million, 2.25% ($3 million of discount; $3 million of debt issuance cost)473 469 
Guaranteed Notes due 2040, $750 million, 3.375% ($2 million of discount; $7 million of debt issuance cost)Guaranteed Notes due 2040, $750 million, 3.375% ($2 million of discount; $7 million of debt issuance cost)741 741 Guaranteed Notes due 2040, $750 million, 3.375% ($2 million of discount; $7 million of debt issuance cost)741 741 
Guaranteed Notes due 2049, $1,000 million, 4.2% ($15 million of discount; $10 million of debt issuance cost)975 975 
Guaranteed Notes due 2049, $1,000 million, 4.2% ($14 million of discount; $10 million of debt issuance cost)Guaranteed Notes due 2049, $1,000 million, 4.2% ($14 million of discount; $10 million of debt issuance cost)976 976 
Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost)Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost)976 981 Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost)973 971 
Guaranteed Notes due 2051, $1,000 million, 3.625% ($3 million of discount; $11 million of debt issuance cost)957 986 
Guaranteed Notes due 2051, $1,000 million, 3.625% ($2 million of discount; $11 million of debt issuance cost)Guaranteed Notes due 2051, $1,000 million, 3.625% ($2 million of discount; $11 million of debt issuance cost)914 897 
Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $6 million of debt issuance cost)Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $6 million of debt issuance cost)490 490 Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $6 million of debt issuance cost)484 481 
OtherOther69 34 Other44 42 
TotalTotal11,183 11,252 Total11,033 10,972 
Less current maturitiesLess current maturities(8)(6)Less current maturities(432)(432)
Long-term debtLong-term debt$11,175 $11,246 Long-term debt$10,601 $10,540 


11

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Fair value hedging adjustments associated with the fair value hedge accounting of our fixed-for-floating interest rate swaps for the applicable periods are as follows: 
Gains (Losses)Cumulative Fair Value
Hedging Adjustments Included
in Carrying Amount of Debt
Gains (Losses)Cumulative Fair Value
Hedging Adjustments Included
in Carrying Amount of Debt
Three Months Ended
March 31,
March 31,December 31,Three Months Ended
March 31,
March 31,December 31,
Millions of dollarsMillions of dollars2022202120222021Millions of dollars2023202220232022
Guaranteed Notes due 2025, 1.25%Guaranteed Notes due 2025, 1.25%$$— $$Guaranteed Notes due 2025, 1.25%$(2)$$12 $14 
Guaranteed Notes due 2026, 0.875%Guaranteed Notes due 2026, 0.875%Guaranteed Notes due 2026, 0.875%(1)12 13 
Guaranteed Notes due 2027, 3.5%Guaranteed Notes due 2027, 3.5%19 (27)(46)Guaranteed Notes due 2027, 3.5%(3)19 (3)— 
Guaranteed Notes due 2030, 3.375%Guaranteed Notes due 2030, 3.375%10 — (2)Guaranteed Notes due 2030, 3.375%(4)10 17 21 
Guaranteed Notes due 2030, 2.25%Guaranteed Notes due 2030, 2.25%10 — 12 Guaranteed Notes due 2030, 2.25%(3)10 21 24 
Guaranteed Notes due 2031, 1.625%Guaranteed Notes due 2031, 1.625%(2)— 11 
Guaranteed Notes due 2050, 4.2%Guaranteed Notes due 2050, 4.2%— Guaranteed Notes due 2050, 4.2%(2)11 13 
Guaranteed Notes due 2051, 3.625%Guaranteed Notes due 2051, 3.625%29 — 29 — Guaranteed Notes due 2051, 3.625%(17)29 73 90 
Guaranteed Notes due 2060, 3.8%Guaranteed Notes due 2060, 3.8%(3)— 
TotalTotal$84 $$44 $(40)Total$(37)$84 $158 $195 
Fair value adjustments are recognized in Interest expense in the Consolidated Statements of Income.
Short-term loans, notes and other debt consisted of the following:
Millions of dollarsMillions of dollarsMarch 31, 2022December 31, 2021Millions of dollarsMarch 31,
2023
December 31,
2022
U.S. Receivables FacilityU.S. Receivables Facility$— $— U.S. Receivables Facility$— $— 
Commercial paperCommercial paper35 204 Commercial paper200 200 
Precious metal financingsPrecious metal financings106 155 Precious metal financings142 131 
OtherOther— Other18 
Total Short-term debtTotal Short-term debt$141 $362 Total Short-term debt$343 $349 
Long-Term Debt
Senior Revolving Credit Facility—Our $3,250 million Seniorsenior unsecured revolving credit facility (the “Senior Revolving Credit Facility,Facility”), which expires in November 2026, may be used for dollar and euro denominated borrowings. The facility has a $200 million sub-limit for dollar and euro denominated letters of credit, a $1,000 million uncommitted accordion feature and supports our commercial paper program. Borrowings under the facility bear interest at either a base rate, LIBOR rate or EURIBOR rate, plus an applicable margin. Additional fees are incurred for the average daily unused commitments. At March 31, 2022,2023, we had no borrowings or letters of credit outstanding and $3,215$3,050 million of unused availability under this facility.


12

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Short-Term Debt
U.S. Receivables Facility—Our U.S. Receivables Facility, which expires in June 2024, has a purchase limit of $900 million in addition to a $300 million uncommitted accordion feature. This facility provides liquidity through the sale or contribution of trade receivables by certain of our U.S. subsidiaries to a wholly owned, bankruptcy-remote subsidiary on an ongoing basis and without recourse. We pay variable interest rates on our secured borrowings. Additional fees are incurred for the average daily unused commitments. This facility also provides for the issuance of letters of credit up to $200 million. At March 31, 2022,2023, we had no borrowings or letters of credit outstanding and $900 million unused availability under this facility.


12

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Commercial Paper Program—We have a commercial paper program under which we may issue up to $2,500 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). Interest rates on the commercial paper outstanding at March 31, 20222023 are based on the terms of the notes and range from 0.45%4.90% to 0.55%4.98%. At March 31, 2022,2023, we had $35$200 million of outstanding commercial paper.
Weighted Average Interest Rate—At March 31, 20222023 and December 31, 2021,2022, our weighted average interest rates on outstanding Short-term debt were 1.2%4.0% and 0.9%3.7%, respectively.
Additional Information
Debt Discount and Issuance CostsComplianceAmortization of debt discounts and debt issuance costs resulted in amortization expense of $4 million and $5 million for the three months ended March 31, 2022 and 2021, respectively, which is included in Interest expense in the Consolidated Statements of Income.
As of March 31, 2022,2023, we are in compliance with our debt covenants.
Supply Chain Finance Arrangements
We facilitate a voluntary supply chain finance (“SCF”) program that provides suppliers, at their sole discretion, the opportunity to sell their receivables due from us to a participating financial intermediary in order to be paid earlier than our contracted payment terms. We are not a party to any agreement between our suppliers and the financial intermediary. When a supplier utilizes the program and receives an early payment from the financial intermediary, the supplier takes a discount on the invoice. We pay the financial intermediary the full amount of the invoice on the contractually agreed upon due date. The majority of the suppliers using the program are on 90-day payment terms. We have no economic impact from a supplier’s decision to take an early payment. No guarantees are provided by us or any of our subsidiaries under the program.
As of March 31, 2023 and December 31, 2022, Accounts payable-Trade included $63 million and $53 million, respectively, payable to suppliers who have elected to participate in the supply chain financing program. We do not believe that future changes in the availability of supply chain financing will have a significant impact on our liquidity.




13

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

7.    Financial Instruments and Fair Value Measurements
We are exposed to market risks, such as changes in commodity pricing, interest rates and currency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative contracts pursuant to our risk management policies.
Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:
March 31, 2022December 31, 2021  March 31, 2023December 31, 2022 
Millions of dollarsMillions of dollarsNotional AmountFair ValueNotional AmountFair ValueBalance Sheet
Classification
Millions of dollarsNotional AmountFair ValueNotional AmountFair ValueBalance Sheet
Classification
Assets–Assets–Assets–
Derivatives designated as hedges:Derivatives designated as hedges:Derivatives designated as hedges:
CommoditiesCommodities$30 $40 $41 $24 Prepaid expenses and other current assetsCommodities$$$— $— Prepaid expenses and other current assets
CommoditiesCommodities32 — — Other assets
Foreign currencyForeign currency903 114 903 109 Prepaid expenses and other current assets
Foreign currencyForeign currency2,099 114 2,725 133 Other assets
Interest ratesInterest rates— 28 — 16 Prepaid expenses and other current assets
Interest ratesInterest rates400 10 400 25 Other assets
Derivatives not designated as hedges:Derivatives not designated as hedges:
CommoditiesCommodities215 39 192 27 Prepaid expenses and other current assets
Foreign currencyForeign currency144 160 — Prepaid expenses and other current assets
TotalTotal$3,801 $312 $4,380 $310 
Liabilities–Liabilities–
Derivatives designated as hedges:Derivatives designated as hedges:
CommoditiesCommodities$16 $$35 $14 Accrued liabilities
CommoditiesCommodities24 — — Other liabilities
Foreign currencyForeign currency614 90 614 63 Prepaid expenses and other current assetsForeign currency— 27 — 15 Accrued liabilities
Foreign currencyForeign currency2,085 61 1,785 43 Other assetsForeign currency1,500 29 650 Other liabilities
Interest ratesInterest rates— 13 — Prepaid expenses and other current assetsInterest rates— 26 — 23 Accrued liabilities
Interest ratesInterest rates— — 300 Other assetsInterest rates2,168 191 2,164 229 Other liabilities
Derivatives not designated as hedges:Derivatives not designated as hedges:Derivatives not designated as hedges:
CommoditiesCommodities55 12 221 30 Prepaid expenses and other current assetsCommodities143 50 11 Accrued liabilities
CommoditiesCommodities12 — — Other assetsCommodities11 Other liabilities
Foreign currencyForeign currency83 — 34 Prepaid expenses and other current assetsForeign currency423 11 236 Accrued liabilities
Non-derivatives:
Equity securities— — Short-term investments
TotalTotal$2,879 $217 $3,004 $177 Total$4,285 $300 $3,142 $309 
The financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.


1314

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


 March 31, 2022December 31, 2021 
Millions of dollarsNotional AmountFair ValueNotional AmountFair ValueBalance Sheet
Classification
Liabilities–
Derivatives designated as hedges:
Foreign currency$— $26 $— $14 Accrued liabilities
Foreign currency1,499 80 1,800 99 Other liabilities
Interest rates— — Accrued liabilities
Interest rates2,763 247 1,863 280 Other liabilities
Derivatives not designated as hedges:
Commodities176 14 24 Accrued liabilities
Commodities31 — — Other Liabilities
Foreign currency544 14 188 Accrued liabilities
Total$5,013 $392 $3,875 $399 
The financial instruments in the table above are classified as Level 2, except for our investment in equity securities which are measured at fair value using the net asset value per share, or its equivalent, practical expedient and are not classified in the fair value hierarchy. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.
Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our Short-term precious metal financings and Long-term debt:
March 31, 2022December 31, 2021March 31, 2023December 31, 2022
Millions of dollarsMillions of dollarsCarrying
 Value
Fair
 Value
Carrying
 Value
Fair
Value
Millions of dollarsCarrying
 Value
Fair
 Value
Carrying
 Value
Fair
Value
Precious metal financingsPrecious metal financings$106 $105 $155 $130 Precious metal financings$142 $114 $131 $113 
Long-term debtLong-term debt11,150 11,379 11,218 12,756 Long-term debt10,580 9,201 10,517 8,882 
TotalTotal$11,256 $11,484 $11,373 $12,886 Total$10,722 $9,315 $10,648 $8,995 
The financial instruments in the table above are classified as Level 2. Our other financial instruments classified within Current assets and Current liabilities have a short maturity and their carrying value generally approximates fair value.
Derivative Instruments:
Commodity Prices—The following table presents the notional amounts of our outstanding commodity derivative instruments:
March 31, 2022December 31, 2021
Millions of dollarsNotional AmountNotional AmountMaturity Date
Derivatives designated as hedges:
Cash flow hedges$30 $41 2022
Derivatives not designated as hedges:
Commodity contracts274 245 2022


14

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


March 31, 2023December 31, 2022
Millions of dollarsNotional AmountNotional AmountMaturity Date
Derivatives designated as hedges:
Cash flow hedges$80 $35 2023 to 2026
Derivatives not designated as hedges:
Commodity contracts369 249 2023 to 2024
Interest Rates—The following table presents the notional amounts of our outstanding interest rate derivative instruments:
March 31, 2022December 31, 2021
Millions of dollarsNotional AmountNotional AmountMaturity Date
Cash flow hedges$1,000 $1,000 2023 to 2024
Fair value hedges1,763 1,163 2025 to 2030
As of March 31, 2022 and December 31, 2021, Other assets included $187 million and $238 million of collateral related to these forward-starting interest swaps, representing the maximum amount of collateral that may be required under these contracts.
March 31, 2023December 31, 2022
Millions of dollarsNotional AmountNotional AmountMaturity Date
Cash flow hedges$400 $400  2024
Fair value hedges2,168 2,164 2025 to 2031
Foreign Currency Rates—The following table presents the notional amounts of our outstanding foreign currency derivative instruments:
March 31, 2022December 31, 2021
Millions of dollarsNotional AmountNotional AmountMaturity Date
Net investment hedges$3,048 $3,048 2022 to 2030
Cash flow hedges1,150 1,150 2024 to 2027
Not designated627 222 2022 to 2023
Impact on Earnings and Other Comprehensive Income—The following tables summarize the pre-tax effect of derivative and non-derivative instruments recorded in Accumulated other comprehensive loss (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:
 Effects of Financial Instruments
Three Months Ended March 31,
Balance SheetIncome Statement
 Gain (Loss) Recognized in AOCIGain (Loss) Reclassified
to Income
from AOCI
Additional Gain (Loss) Recognized in IncomeIncome Statement
Millions of dollars202220212022202120222021Classification
Derivatives designated as hedges:
Commodities$26 $$(11)$(1)$— $— Cost of sales
Foreign currency44 148 (25)(92)(4)12 Interest expense
Interest rates112 223 Interest expense
Derivatives not designated as hedges:
Commodities— — — — 36 Sales and other operating revenues
Commodities— — — — 11 Cost of sales
Foreign currency— — — — (19)(14)Other income, net
Total$182 $377 $(35)$(92)$20 $14 
March 31, 2023December 31, 2022
Millions of dollarsNotional AmountNotional AmountMaturity Date
Net investment hedges$3,352 $3,128 2023 to 2030
Cash flow hedges1,150 1,150 2024 to 2027
Not designated567 396 2023 to 2024


15

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Impact on Earnings and Other Comprehensive Income
—The following tables summarize the pre-tax effect of derivative instruments recorded in Accumulated other comprehensive loss (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:
Effects of Financial Instruments
Three Months Ended March 31,
Balance SheetIncome Statement
Gain (Loss)
Recognized in
AOCI
Gain (Loss) Reclassified
to Income
from AOCI
Additional Gain
(Loss) Recognized
in Income
Income Statement
Millions of dollars202320222023202220232022Classification
Derivatives designated as hedges:
Commodities$(5)$26 $19 $(11)$— $— Cost of sales
Foreign currency(55)44 20 (25)14 (4)Interest expense
Interest rates(14)112 23 (77)Interest expense
Derivatives not designated as hedges:
Commodities— — — — (33)36 Sales and other operating revenues
Commodities— — — — 27 Cost of sales
Foreign currency— — — — (11)(19)Other income, net
Total$(74)$182 $40 $(35)$20 $(61)
As of March 31, 2022,2023, on a pre-tax basis, $6$3 million is scheduled to be reclassified from Accumulated other comprehensive loss as an increase to interestInterest expense over the next twelve months.
Other Financial Instruments:
Cash and Cash Equivalents—At March 31, 20222023 and December 31, 2021,2022, we had marketable securities classified as Cash and cash equivalents of $1,089$1,065 million and $438$1,191 million, respectively.
8.    Income Taxes
For interim tax reporting, we estimate an annual effective tax rate which is applied to the year-to-date ordinary income. Tax effects of significant, unusual, or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.Our effective income tax rate fluctuates based on, among other factors, changes in pretaxpre-tax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains or losses, the amount of exempt income, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws.


16

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Our exempt income primarily includes interest income, export incentives, and equity earnings ofjoint ventures. Interest income earned by certain of our European subsidiaries through intercompany financings is taxed at rates substantially lower than the U.S. statutory rate. Export incentives relate to tax benefits derived from elections and structures available for U.S. exports. Equity earnings attributable to the earnings of our joint ventures, when paid through dividends to certain European subsidiaries, are exempt from all or portions of normal statutory income tax rates. We currently anticipate the favorable treatment for interest income, dividends, and export incentives to continue in the near term; however, this treatment is based on current law and tax rulings, which could change if the tax reform proposals in the U.S. and the Pillar Two proposals bylaw. We continue to monitor the Organization for Economic Cooperation and Development (“OECD”) are enacted.’s Pillar One and Two legislation which focus on taxing rights and minimum taxes in countries where we operate, including the United Kingdom; however, we do not expect the impact to be material based on the principles agreed to at this stage.
Our effective income tax ratesrate for the first quarter of 20222023 was 19.3%26.0% compared to 6.1%with 19.3% for the first quarter of 2021. In2022. The higher effective tax rate for the first quarter of 2021, we benefited from return2023 was primarily due to accrual adjustments primarily associated with a step-up of certain Italian assets to fair market value and benefits resulting from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) of 10.5% and 2.6% respectively; such benefits did not impact our effective tax rate in the first quarter 2023 goodwill impairment, for which there is no tax benefit, of 2022.

6.6%.
9.    Commitments and Contingencies
Commitments—We have various purchase commitments for materials, supplies and services incidental to the ordinary conduct of business, generally for quantities required for our businesses and at prevailing market prices. These commitments are designed to assure sources of supply and are not expected to be in excess of normal requirements. As of March 31, 2022,Additionally, we hadhave capital expenditure commitments, which we incurredincur in our normal course of business, including commitments of approximately $366 million related to building our new PO/TBA plant in Houston, Texas.business.
Financial Assurance Instruments—We have obtained letters of credit, performance and surety bonds and have issued financial and performance guarantees to support trade payables, potential liabilities and other obligations. Considering the frequency of claims made against the financial instruments we use to support our obligations, and the magnitude of those financial instruments in light of our current financial position, management does not expect that any claims against or draws on these instruments would have a material adverse effect on our Consolidated Financial Statements. We have not experienced any unmanageable difficulties in obtaining the required financial assurance instruments for our current operations.


16

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Environmental Remediation—Our accrued liability for future environmental remediation costs at current and former plant sites and other remediation sites totaled $135$126 million and $138$127 million as of March 31, 20222023 and December 31, 2021,2022, respectively. At March 31, 2022,2023, the accrued liabilities for individual sites range from less than $1 million to $27$25 million. The remediation expenditures are expected to occur over a number of years and are not concentrated in any single year. In our opinion, it is reasonably possible that losses in excess of the liabilities recorded may have been incurred. However, we cannot estimate any amount or range of such possible additional losses. New information about sites, new technology or future developments, such as involvement in investigations by regulatory agencies, could require us to reassess our potential exposure related to environmental matters.
Indemnification—We are parties to various indemnification arrangements, including arrangements entered into in connection with acquisitions, divestitures and the formation and dissolution of joint ventures. Pursuant to these arrangements, we provide indemnification to and/or receive indemnification from other parties in connection with liabilities that may arise in connection with the transactions and in connection with activities prior to completion of the transactions. These indemnification arrangements typically include provisions pertaining to third-party claims relating to environmental and tax matters and various types of litigation. As of March 31, 2022,2023, we had not accrued any significant amounts for our indemnification obligations, and we are not aware of other circumstances that would likely lead to significant future indemnification obligations. We cannot determine with certainty the potential amount of future payments under the indemnification arrangements until events arise that would trigger a liability under the arrangements.
As part of our technology licensing contracts, we give indemnifications to our licensees for liabilities arising from possible patent infringement claims with respect to certain proprietary licensed technologies. Such indemnifications have a stated maximum amount and generally cover a period of 5 to 10 years.


17

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Legal Proceedings—We are subject to various lawsuits and claims, including but not limited to, matters involving contract disputes, environmental damages, personal injury and property damage. We vigorously defend ourselves and prosecute these matters as appropriate.
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor legal proceedings in which we are a party. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial, mediation or other resolution. We regularly assess the adequacy of legal accruals based on our professional judgment, experience and the information available regarding our cases.
Based on a consideration of all relevant facts and circumstances, we do not believe the ultimate outcome of any currently pending lawsuit against us will have a material adverse effect upon our operations, financial condition or Consolidated Financial Statements.
10.    Shareholders’ Equity and Redeemable Non-controlling Interests
Shareholders’ Equity
Dividend Distributions—The following table summarizedsummarizes the dividends paid in the periodperiods presented:
Millions of dollars, except per share amountsDividend Per Ordinary ShareAggregate Dividends PaidDate of Record
March 2022$1.13 $371 March 7, 2022


17

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Millions of dollars, except per share amountsDividend Per
Ordinary Share
Aggregate
Dividends Paid
Date of Record
March 2023 - Quarterly dividend$1.19 $389 March 6, 2023
Share Repurchase Authorization—In May 2021,2022, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 28, 27, 2023 (“2022 (“2021 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. The timing and amount of these repurchases, which are determined based on our evaluation of market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. The repurchased shares, which are recorded at cost, are classified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans.
The following table summarizes our share repurchase activity for the periodperiods presented:
Millions of dollars, except shares and per share amountsMillions of dollars, except shares and per share amountsShares
Repurchased
Average
Purchase
Price
Total Purchase Price, Including
Commissions and Fees
Millions of dollars, except shares and per share amountsShares
Repurchased
Average
Purchase
Price
Total Purchase Price, Including
Commissions and Fees
For three months ended March 31, 2023:For three months ended March 31, 2023:
2022 Share Repurchase Authorization2022 Share Repurchase Authorization846,500 $87.28 $74 
For three months ended March 31, 2022:For three months ended March 31, 2022:For three months ended March 31, 2022:
2021 Share Repurchase Authorization2021 Share Repurchase Authorization2,073,378 $97.70 $202 2021 Share Repurchase Authorization2,073,378 $97.70 $202 
Total cash paid for share repurchases for the three months ended March 31, 2023 and 2022 was $70 million and $217 million.million, respectively. Cash payments made during the reporting period may differ from the total purchase price, including commissions and fees, due to the timing of payments. There were no share repurchases during the three months ended March 31, 2021.
Ordinary Shares—The changes in the outstanding amounts of ordinary shares are as follows:
 Three Months Ended
March 31,
 20222021
Ordinary shares outstanding:
Beginning balance329,536,389 334,015,220 
Share-based compensation123,550 247,964 
Employee stock purchase plan57,473 49,956 
Purchase of ordinary shares(2,073,378)— 
Ending balance327,644,034 334,313,140 
Treasury Shares—The changes in the amounts of treasury shares held by the Company are as follows:
Three Months Ended
March 31,
 20222021
Ordinary shares held as treasury shares:
Beginning balance10,675,605 6,030,408 
Share-based compensation(123,550)(247,964)
Employee stock purchase plan— (49,956)
Purchase of ordinary shares2,073,378 — 
Ending balance12,625,433 5,732,488 


18

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Ordinary Shares
—The changes in the outstanding amounts of ordinary shares are as follows:
 Three Months Ended
March 31,
 20232022
Ordinary shares outstanding:
Beginning balance325,723,567 329,536,389 
Share-based compensation516,142 123,550 
Employee stock purchase plan75,392 57,473 
Purchase of ordinary shares(846,500)(2,073,378)
Ending balance325,468,601 327,644,034 
Treasury Shares—The changes in the amounts of treasury shares held by the Company are as follows:
Three Months Ended
March 31,
 20232022
Ordinary shares held as treasury shares:
Beginning balance14,698,931 10,675,605 
Share-based compensation(516,142)(123,550)
Employee stock purchase plan(75,392)— 
Purchase of ordinary shares846,500 2,073,378 
Ending balance14,953,897 12,625,433 
Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the three months ended March 31, 20222023 and 20212022 are presented in the following tables:
Millions of dollarsFinancial
Derivatives
Defined Benefit
Pension and Other
Postretirement
Benefit Plans
Foreign
Currency
Translation
Adjustments
Total
Balance – December 31, 2021$(354)$(528)$(921)$(1,803)
Other comprehensive income (loss) before reclassifications147 — (14)133 
Tax expense before reclassifications(32)— (11)(43)
Amounts reclassified from accumulated other comprehensive loss(35)— (27)
Tax (expense) benefit(3)— 
Net other comprehensive income (loss)88 (25)68 
Balance – March 31, 2022$(266)$(523)$(946)$(1,735)
Millions of dollarsFinancial
Derivatives
Unrealized
Gains on Available
-for-Sale
Debt Securities
Defined Benefit
Pension and Other
Postretirement
Benefit Plans
Foreign
Currency
Translation
Adjustments
Total
Balance – December 31, 2020$(426)$$(752)$(766)$(1,943)
Other comprehensive income (loss) before reclassifications315 — — (93)222 
Tax expense before reclassifications(68)— — (14)(82)
Amounts reclassified from accumulated other comprehensive loss(92)— 15 — (77)
Tax (expense) benefit20 — (4)— 16 
Net other comprehensive income (loss)175 — 11 (107)79 
Balance – March 31, 2021$(251)$$(741)$(873)$(1,864)
Millions of dollarsFinancial
Derivatives
Defined Benefit
Pension and Other
Postretirement
Benefit Plans
Foreign
Currency
Translation
Adjustments
Total
Balance – December 31, 2022$(146)$(182)$(1,044)$(1,372)
Other comprehensive income (loss) before reclassifications(35)— 49 14 
Tax benefit before reclassifications— 10 19 
Amounts reclassified from accumulated other comprehensive loss40 — 43 
Tax expense(10)(1)— (11)
Net other comprehensive income59 65 
Balance – March 31, 2023$(142)$(180)$(985)$(1,307)


19

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Millions of dollarsFinancial
Derivatives
Defined Benefit
Pension and Other
Postretirement
Benefit Plans
Foreign
Currency
Translation
Adjustments
Total
Balance – December 31, 2021$(354)$(528)$(921)$(1,803)
Other comprehensive income (loss) before reclassifications147 — (14)133 
Tax expense before reclassifications(32)— (11)(43)
Amounts reclassified from accumulated other comprehensive loss(35)— (27)
Tax (expense) benefit(3)— 
Net other comprehensive income (loss)88 (25)68 
Balance – March 31, 2022$(266)$(523)$(946)$(1,735)
The amounts reclassified out of each component of Accumulated other comprehensive loss are as follows: 
Three Months Ended
March 31,
Affected Line Item on
the Consolidated
Statements of Income
Three Months Ended
March 31,
Affected Line Item on
the Consolidated
Statements of Income
Millions of dollarsMillions of dollars20222021Millions of dollars20232022Affected Line Item on
the Consolidated
Statements of Income
Reclassification adjustments for:Reclassification adjustments for:Reclassification adjustments for:
Financial derivatives:Financial derivatives:Financial derivatives:
CommoditiesCommodities$(11)$(1)Cost of salesCommodities$19 $(11)Cost of sales
Foreign currencyForeign currency(25)(92)Interest expenseForeign currency20 (25)Interest expense
Interest ratesInterest ratesInterest expenseInterest ratesInterest expense
Income tax benefit20 Provision for income taxes
Income tax (expense) benefitIncome tax (expense) benefit(10)Provision for income taxes
Financial derivatives, net of taxFinancial derivatives, net of tax(27)(72)Financial derivatives, net of tax30 (27)
Amortization of defined pension items:Amortization of defined pension items:Amortization of defined pension items:
Actuarial lossActuarial lossOther income, net
Prior service costPrior service costOther income, netPrior service costOther income, net
Actuarial loss14 Other income, net
Income tax expenseIncome tax expense(3)(4)Provision for income taxesIncome tax expense(1)(3)Provision for income taxes
Defined pension items, net of taxDefined pension items, net of tax11 Defined pension items, net of tax
Total reclassifications, before taxTotal reclassifications, before tax(27)(77)Total reclassifications, before tax43 (27)
Income tax benefit16 Provision for income taxes
Income tax (expense) benefitIncome tax (expense) benefit(11)Provision for income taxes
Total reclassifications, after taxTotal reclassifications, after tax$(22)$(61)Amount included in net incomeTotal reclassifications, after tax$32 $(22)Amount included in net income
Redeemable Non-controlling Interests
Our redeemable non-controlling interests relate to shares of cumulative perpetual special stock (“redeemable non-controlling interest stock”) issued by a consolidated subsidiary. As of March 31, 20222023 and December 31, 2021,2022, we had 115,374113,466 and 113,471 shares of redeemable non-controlling interest stock outstanding. In February 2022, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2022.outstanding, respectively. These dividends totaled $2 million for eachshares may be redeemed at any time at the discretion of the three months ended March 31, 2022 and 2021.

holders.


20

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


In February 2023, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2023. These dividends totaled $2 million for each of the three months ended March 31, 2023 and 2022.
11.    Per Share Data
Basic earnings per share is based upon the weighted average number of shares of common stock outstanding during the periods.period. Diluted earnings per share includes the effect of certain stock option and other equity-based compensation awards. Our unvested restricted stock units contain non-forfeitable rights to dividend equivalents and are considered participating securities. We calculate basic and diluted earnings per share under the two-class method.
Earnings per share data is as follows:
Three Months Ended March 31, Three Months Ended March 31,
2022202120232022
Millions of dollarsMillions of dollarsContinuing
Operations
Discontinued
Operations
Continuing
Operations
Discontinued
Operations
Millions of dollarsContinuing
Operations
Discontinued
Operations
Continuing
Operations
Discontinued
Operations
Net income (loss)Net income (loss)$1,321 $(1)$1,072 $(2)Net income (loss)$475 $(1)$1,321 $(1)
Dividends on redeemable non-controlling interestsDividends on redeemable non-controlling interests(2)— (2)— Dividends on redeemable non-controlling interests(2)— (2)— 
Net income attributable to participating securitiesNet income attributable to participating securities(2)— (2)— Net income attributable to participating securities(1)— (2)— 
Net income (loss) attributable to ordinary shareholders – basic and dilutedNet income (loss) attributable to ordinary shareholders – basic and diluted$1,317 $(1)$1,068 $(2)Net income (loss) attributable to ordinary shareholders – basic and diluted$472 $(1)$1,317 $(1)
Millions of shares, except per share amountsMillions of shares, except per share amountsMillions of shares, except per share amounts
Basic weighted average common stock outstandingBasic weighted average common stock outstanding328 328 334 334 Basic weighted average common stock outstanding326 326 328 328 
Effect of dilutive securitiesEffect of dilutive securities— — Effect of dilutive securities
Potential dilutive sharesPotential dilutive shares329 329 334 334 Potential dilutive shares327 327 329 329 
Earnings per share:Earnings per share:Earnings per share:
BasicBasic$4.01 $— $3.20 $(0.01)Basic$1.45 $— $4.01 $— 
DilutedDiluted$4.00 $— $3.19 $(0.01)Diluted$1.44 $— $4.00 $— 




21

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


12.    Segment and Related Information
Our operations are managed by senior executives who report to our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments, and our Chief Executive Officer uses the operating results of each of the operating segments for performance evaluation and resource allocation.
The activities of each of our segments from which they earn revenues and incur expenses are described below: 
Olefins and Polyolefins—AmericasO&P-Americas (“O&P—Americas”). Our O&P—Americas&P-Americas segment produces and markets olefins and co-products, polyethylene, polypropylene, Catalloyand polypropylene.polybutene-1.
Olefins and Polyolefins—Europe, Asia, InternationalO&P-EAI (“O&P—EAI”). Our O&P—EAI&P-EAI segment produces and markets olefins and co-products, polyethylene, polypropylene, Catalloyand polypropylene.polybutene-1.
Intermediates and Derivatives (“I&D”). Our I&D segment produces and markets propylene oxide and its derivatives, oxyfuels and related products, and intermediate chemicals such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Advanced Polymer Solutions (“APS”).APS. Our APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders, and advanced polymers, which includes Catalloy and polybutene-1.powders.
Refining. Our Refining segment refines heavy, high-sulfur crude oil and other crude oils of varied types and sources available on the U.S. Gulf Coast into refined products, including gasoline and distillates.
Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Our chief operating decision maker uses EBITDA as the primary measure for reviewing profitability of our segments, and therefore, we have presented EBITDA for all segments. We define EBITDA as earnings from continuing operations before interest, income taxes, and depreciation and amortization.
“Other” includes intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefit costs other than service costs. Sales between segments are made primarily at prices approximating prevailing market prices.
Summarized financial information concerning reportable segments is shown in the following tables for the periods presented:
Three Months Ended March 31, 2022
Millions of dollarsO&P–
Americas
O&P–
EAI
I&DAPSRefiningTechnologyOtherTotal
Sales and other operating revenues:
Customers$2,325 $3,543 $3,276 $1,407 $2,458 $148 $— $13,157 
Intersegment1,270 219 63 262 33 (1,848)— 
3,595 3,762 3,339 1,408 2,720 181 (1,848)13,157 
Income (loss) from equity investments33 (5)— — — — 29 
EBITDA911 188 546 125 148 103 (1)2,020 
Capital expenditures132 89 163 18 14 29 446 
Three Months Ended March 31, 2023
Millions of dollarsO&P-
Americas
O&P-
EAI
I&DAPSRefiningTechnologyOtherTotal
Sales and other operating revenues:
Customers$1,727 $2,710 $2,641 $995 $2,057 $117 $— $10,247 
Intersegment1,081 182 41 133 22 (1,461)— 
2,808 2,892 2,682 997 2,190 139 (1,461)10,247 
Income (loss) from equity investments23 (6)(1)— — — 17 
EBITDA541 77 426 (226)246 73 (6)1,131 
Capital expenditures82 54 179 17 17 352 


22

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Three Months Ended March 31, 2022
Millions of dollarsO&P–
Americas
O&P–
EAI
I&DAPSRefiningTechnologyOtherTotal
Sales and other operating revenues:
Customers$2,453 $3,687 $3,276 $1,135 $2,458 $148 $— $13,157 
Intersegment1,281 239 63 262 33 (1,879)— 
3,734 3,926 3,339 1,136 2,720 181 (1,879)13,157 
Income (loss) from equity investments33 (5)— — — — 29 
EBITDA939 214 546 71 148 103 (1)2,020 
Capital expenditures135 89 163 15 14 29 446 
The following assets are summarized and reconciled to consolidated totals in the following table:
Millions of dollarsO&P-
Americas
O&P-
EAI
I&DAPSRefiningTechnologyTotal
March 31, 2023
Property, plant and equipment, net$6,337 $1,914 $5,800 $639 $193 $518 $15,401 
Equity investments2,038 1,663 563 — — 4,266 
December 31, 2022
Property, plant and equipment, net$6,378 $1,880 $5,728 $636 $255 $510 $15,387 
Equity investments2,053 1,655 585 — — 4,295 
Segment Structure Changes and Related Goodwill Impairment—Effective January 1, 2023, our Catalloy and polybutene-1 products were moved from our APS segment and reintegrated into our O&P-Americas and O&P-EAI segments. Accordingly, on January 1, 2023, we allocated goodwill from our APS segment to our O&P-Americas and O&P-EAI segments of $315 million and $269 million, respectively, based on the relative fair values of the products that were reintegrated compared to the fair value of the APS segment.
As of December 31, 2022, goodwill included in our APS reporting unit was $1,370 million, the majority of which related to the 2018 acquisition of A. Schulman. As of December 31, 2022, a large portion of the APS reporting unit’s fair value was derived from our Catalloy and polybutene-1 products, which had disproportionately low carrying values in comparison to the remaining assets of the reporting unit, which had relatively higher carrying values due to the 2018 purchase price allocation associated with the acquisition of A. Schulman. As a result of the reallocation of goodwill and the change in both fair value and carrying value among reporting units, we determined the APS reporting units goodwill fair value to be $753 million, resulting in a non-cash goodwill impairment charge of $252 million in the first quarter of 2023 in our APS segment. Fair values were determined utilizing a discounted cash flow method under the income approach and assumptions including management’s view on long-term growth rates in our industry, discount rates and other assumptions based on a market participant perspective, which are inherently subjective. The fair value of the reporting unit is Level 3 within the fair value hierarchy.


23

Table of Contents

LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Three Months Ended March 31, 2021
Millions of dollarsO&P–
Americas
O&P–
EAI
I&DAPSRefiningTechnologyOtherTotal
Sales and other operating revenues:
Customers$2,135 $2,840 $1,704 $1,269 $993 $141 $— $9,082 
Intersegment724 207 63 133 24 (1,152)— 
2,859 3,047 1,767 1,270 1,126 165 (1,152)9,082 
Income from equity investments30 95 12 — — — — 137 
EBITDA867 412 182 135 (110)94 1,585 
Capital expenditures65 40 145 20 25 22 23 340 

Exit of Houston Refinery Operations—
In April 2022 we announced our decision to cease operation of our Houston Refineryrefinery no later than December 31, 2023. We determinedthe end of 2023 after determining that exiting the refining business by the end of next year is theour best strategic and financial path forward for the company. Our exit of the refining business progresses our decarbonization goals, and the site’s prime location gives us more options for advancing our future strategic objectives, including circularity. In the interim, we will continue serving the fuels market, which is expected to remain strong in the near-term, and consider potential transactions and alternatives for the site.

forward. In connection with the planned exit plan,from the refinery business, during the first quarter of 2023 we expensed accelerated lease amortization costs of $51 million, personnel costs of $16 million, asset retirement cost depreciation of $55 million, and asset retirement obligation accretion of $2 million. In subsequent periods, we expect to incur certainadditional costs primarily consisting of accelerated amortization of operating lease assets of approximately $300$100 million to $400$200 million, asset decommissioningpersonnel costs of approximately $150$40 million to $250 million, personnel related costs of approximately $80 million to $120$70 million and other charges of approximately $50 million to $100 million. Additionally, we estimate that the Houston refinery’s asset retirement obligations are in the range of $150 million to $450 million. As of March 31, 2023, we intend to proceed with an orderly shut-down, werecorded asset retirement obligations of $253 million representing our best estimate. We do not expectanticipate any material cash payments related to recognize these charges all at once, but over time through 2024. The actual size and timingthe exit of costs associated with the closure may differ from our current expectations, and such differences mayrefinery business to be material.

made in 2023.
A reconciliation of EBITDA to Income from continuing operations before income taxes is shown in the following table for each of the periods presented:
Three Months Ended
March 31,
Three Months Ended
March 31,
Millions of dollarsMillions of dollars20222021Millions of dollars20232022
EBITDA:EBITDA:EBITDA:
Total segment EBITDATotal segment EBITDA$2,021 $1,580 Total segment EBITDA$1,137 $2,021 
Other EBITDAOther EBITDA(1)Other EBITDA(6)(1)
Less:Less:Less:
Depreciation and amortization expenseDepreciation and amortization expense(311)(335)Depreciation and amortization expense(396)(311)
Interest expenseInterest expense(74)(110)Interest expense(116)(74)
Add:Add:Add:
Interest incomeInterest incomeInterest income23 
Income from continuing operations before income taxesIncome from continuing operations before income taxes$1,637 $1,142 Income from continuing operations before income taxes$642 $1,637 



2324

Table of Contents
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL

This discussion should be read in conjunction with the information contained in our Consolidated Financial Statements, and the accompanying notes elsewhere in this report. Unless otherwise indicated, the “Company”, “we”,“Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”).

Effective January 1, 2023, our
Catalloy and polybutene-1 products were moved from our Advanced Polymer Solutions (“APS”) segment and reintegrated into our Olefins and Polyolefins-Americas (“O&P-Americas”) and Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segments. Segment information provided herein has been revised for all periods presented to reflect these changes.
In November 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, which we applied as of December 31, 2021. Pursuant to this final rule, for interim reporting, we have elected to compare the changes in our results of operations of the most recently completed quarter to the immediately preceding sequential quarter as management believes this is more useful in identifying current business trends and provides a more meaningful comparison.
OVERVIEW

During the first quarter 2022 we reversed fourth quarter trends and achieved price increases for polyethylene and polypropylene while rapidly rising feedstock and energy costs compressed olefins and polyolefinsof 2023, margins in our O&P—Americas segment. European&P-Americas and O&P-EAI segments increased driven by lower ethane cost in the U.S., lower energy costs and moderately improving global demand. We increased global operating rates to align with market conditions. Steady demand for polymers remained solid despite ongoing challenges from the war in Ukraine. Our ethylene cracker in La Porte, Texas, restarted ahead of schedule in March after completing a major planned maintenance turnaround. In our oxyfuels and refining businesses, increasing demand for transportation fuels and higher prices for gasoline and diesel ledcontinued to improvementssupport margins in our results. Advanced Polymer Solutions profitability increased due to higher volumesIntermediates and margins as automotive demand improved from the fourth quarter of 2021.Derivatives and Refining segments.

As a result of the war in Ukraine, in March we announced that, effective immediately, we will not enter into any new business transactions or relationships with Russian state-owned entities and also that we intend to discontinue business relationships with Russian state-owned entities to the extent legally possible. We do not expect these measures will have a direct material impact on our operations or financial position.

We continued to generate substantial cash during the quarter as cash provided by operating activities provided $1,502 million in the first quarter of 2022. During the first quarter of 20222023, we generated $482 million in cash from operating activities. We remain committed to a disciplined approach to capital allocation. During the first quarter of 2023, we reinvested $352 million in the businesses through capital expenditures and we paid dividends of $389 million to shareholders and repurchased approximately 2.1$70 million worth of our outstanding ordinary shares. In the first quarter of 2023 we successfully started up the world's largest PO/TBA plant.
In March 2023, we announced the decision to explore strategic options for our U.S. Gulf Coast-based ethylene oxide & derivatives (“EO&D”) business as it is not a business where we seek a leading long-term position.



2425

Table of Contents
Results of operations for the periods discussed are presented in the table below:
Three Months EndedThree Months Ended
March 31,December 31,March 31, March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenuesSales and other operating revenues$13,157 $12,830 $9,082 Sales and other operating revenues$10,247 $10,206 $13,157 
Cost of salesCost of sales11,136 10,934 7,678 Cost of sales8,864 9,356 11,136 
Impairments— 624 — 
ImpairmentImpairment252 — — 
Selling, general and administrative expensesSelling, general and administrative expenses328 328 287 Selling, general and administrative expenses385 334 328 
Research and development expensesResearch and development expenses32 33 29 Research and development expenses33 29 32 
Operating incomeOperating income1,661 911 1,088 Operating income713 487 1,661 
Interest expenseInterest expense(74)(153)(110)Interest expense(116)(85)(74)
Interest incomeInterest incomeInterest income23 16 
Other income, net19 35 25 
Income from equity investments29 72 137 
Other income (expense), netOther income (expense), net(9)19 
Income (loss) from equity investmentsIncome (loss) from equity investments17 (20)29 
Income from continuing operations before income taxesIncome from continuing operations before income taxes1,637 866 1,142 Income from continuing operations before income taxes642 389 1,637 
Provision for income taxesProvision for income taxes316 135 70 Provision for income taxes167 34 316 
Income from continuing operationsIncome from continuing operations1,321 731 1,072 Income from continuing operations475 355 1,321 
Loss from discontinued operations, net of taxLoss from discontinued operations, net of tax(1)(5)(2)Loss from discontinued operations, net of tax(1)(2)(1)
Net incomeNet income1,320 726 1,070 Net income474 353 1,320 
Other comprehensive income (loss), net of tax –Other comprehensive income (loss), net of tax –Other comprehensive income (loss), net of tax –
Financial derivativesFinancial derivatives88 (60)175 Financial derivatives(5)88 
Defined benefit pension and other postretirement benefit plansDefined benefit pension and other postretirement benefit plans168 11 Defined benefit pension and other postretirement benefit plans212 
Foreign currency translationsForeign currency translations(25)(28)(107)Foreign currency translations59 232 (25)
Total other comprehensive income, net of taxTotal other comprehensive income, net of tax68 80 79 Total other comprehensive income, net of tax65 439 68 
Comprehensive incomeComprehensive income$1,388 $806 $1,149 Comprehensive income$539 $792 $1,388 



2526

Table of Contents
RESULTS OF OPERATIONS
RevenuesRevenue increasedRevenues remained relatively unchanged in the first quarter of 2023 compared to the fourth quarter of 2022. Lower volumes driven by $327lower demand resulted in a 2% decrease in revenues. Favorable foreign exchange impacts resulted in a 2% increase in revenues.
Revenues decreased by $2,910 million, or 3%22%, in the first quarter of 20222023 compared to the fourthfirst quarter of 2021.2022. Average sales prices were higherlower for many of our products as sales prices generally correlate with crude oil prices, which increased relative to the fourth quarter of 2021. These higher prices led to a 7% increase in revenue. This increase was partially offset by a 3% decline in revenue as a result of lower sales volumes driven by outages in our O&P—Americas and Refining segments. Revenue also decreased 1% as a result of unfavorable foreign exchange impacts.
Revenues increased by $4,075 million, or 45%, in the first quarter of 2022 compared to the first quarter of 2021. Average sales prices were higher for many of our products as sales prices generally correlate with crude oil prices, which increased relative to the first quarter of 2021.2022. These higherlower prices led to a 31% increase13% decrease in revenue. Higher salesLower volumes driven by increasedlower demand resulted in a revenue increase of 14%.7% decrease in revenues. Unfavorable foreign exchange impacts resulted in a 2% decrease in revenues.
Cost of Sales—Cost of sales increaseddecreased by $202$492 million, or 2%5%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and by $3,458$2,272 million, or 45%20%, in the first quarter of 20222023 compared to the first quarter of 2021. The increase2022. These decreases were primarily related to higherdriven by lower feedstock and energy costs.
Impairment—During the first quarter of 2023 we recognized a non-cash goodwill impairment charge of $252 million in our APS segment after the effect of moving our Catalloy and polybutene-1 products from our APS segment and reintegrating into our O&P-Americas and O&P-EAI segments. See Note 12 to our Consolidated Financial Statements for additional information.
Operating Income—Operating income increased by $750$226 million, or 82%46%, in the first quarter of 20222023 compared to the fourth quarter of 2021.2022. Operating income in our Refining,O&P-EAI, O&P-Americas, I&D, APS and O&PEAI segments increased $644 million, $329 million, $101 million and $81 million, respectively. These increases were partially offset by a decrease in Operating income in our O&PAmericas and Technology segments of $339 million and $70 million, respectively.
Operating income increased by $573 million, or 53%, in the first quarter of 2022 compared to the first quarter of 2021. Operating income in our I&D, Refining, O&PAmericas and Technology segments increased by $380$177 million, $278$154 million, $41$109 million, and $11 million, respectively. These increases were partially offset by a decreasedecreases in our APS and Refining segments of $197 million and $35 million, respectively.
Operating income decreased by $948 million, or 57%, in the first quarter of 2023 compared to the first quarter of 2022. Operating income in our O&PEAI&P-Americas, APS, I&D, O&P-EAI and APSTechnology segments of $121decreased by $383 million, $285 million, $148 million, $142 million and $16$32 million, respectively. These decreases were partially offset by an increase in our Refining segment of $38 million.
Results for each of our business segments are discussed further in the Segment Analysis section below.
Income from Equity Investments—Income from our equity investments decreased by $43 million, or 60%, in the first quarter of 2022 compared to the fourth quarter of 2021 and by $108 million, or 79%, in the first quarter of 2022 compared to the first quarter of 2021. The decrease was mainly attributable to margin compression due to decreased demand and lower prices in Asia.
Income Taxes—Our effective income tax rate for the first quarter of 20222023 was 19.3%26.0% compared to 15.6%with 9.0% for the fourth quarter of 2021.2022. The higher effective tax rate infor the first quarter of 20222023 was primarily attributable to higher pre-tax earnings and lower exempt incomefluctuations in uncertain tax positions of 18.3%, coupled with the first quarter 2023 goodwill impairment, for which resulted in a 3% and 2.6% increase in our effectivethere is no tax rate, respectively.benefit, of 6.6%. These increases were partially offset by a 2.6% decrease in the effective tax rate driven by changes in unrecognized tax benefits.foreign exchange gains or losses of 6.4%.
Our effective income tax rate for the first quarter of 20222023 was 19.3%26.0% compared to 6.1%with 19.3% for the first quarter of 2021. In2022. The higher effective tax rate for the first quarter of 2021, we benefited from return2023 was primarily due to accrual adjustments primarily associated with a step-up of certain Italian assets to fair market value and benefits resulting from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) of 10.5% and 2.6% respectively; such benefits did not impact our effective tax rate in the first quarter 2023 goodwill impairment, for which there is no tax benefit, of 2022. 6.6%.
Our income tax results are discussed further in Note 8 to the Consolidated Financial Statements.


2627

Table of Contents
Comprehensive Income—Comprehensive income increaseddecreased by $582$253 million in the first quarter of 20222023 compared to the fourth quarter of 2021. The increase is2022, primarily due to higher net income and changesthe decreases in financial derivative instruments primarily driven by periodic changes in benchmark interest rates, partially offset by the impact of defined pension and other post-retirement benefits.
postretirement benefit plans and foreign currency translations gains, offset by an increase in net income. Comprehensive income increaseddecreased by $239$849 million in the first quarter of 20222023 compared to the first quarter of 2021. The increase is2022, primarily due to higherthe decline in net income. The activities from the remaining components of Comprehensive income and changes in foreign currency translation adjustments, partially offset by changes in financial derivative instruments primarily driven by periodic changes in benchmark interest rates.are discussed below.
In the first quarter of 2022, the cumulative after-tax effects of ourFinancial derivatives designated as cash flow hedges, were net gains of $88 million. Pre-tax gains of $112 million related toprimarily our forward-starting interest rate swaps, were driven by periodic changes in benchmark interest ratesremained relatively unchanged in the first quarter of 2022. The fluctuations of the U.S. dollar against the euro and the periodic changes in benchmark interest rates, in the first quarter of 2022, resulted in pre-tax gains of $9 million, related2023 compared to our cross-currency swaps. Pre-tax losses of $25 million related to our cross-currency swaps were reclassified from Accumulated other comprehensive loss to Interest expense in the first quarter of 2022. The remaining change pertains to our commodity cash flow hedges.
In the fourth quarter of 2021, the cumulative after-tax effects of our2022. Financial derivatives designated as cash flow hedges, were net losses of $60 million. Included in this amount, were pre-tax losses of $42 million related toprimarily our forward-starting interest rate swaps, driven by the periodic changeled to a decrease in benchmark interest rates in the fourth quarterComprehensive income of 2021. The fluctuations of the U.S. dollar against the euro and the periodic changes in benchmark interest rates in the fourth quarter of 2021, resulted in pre-tax gains of $80 million, related to our cross-currency swaps. Pre-tax losses of $88 million related to our cross-currency swaps were reclassified from Accumulated other comprehensive loss to Interest expense in the fourth quarter of 2021.
In the first quarter of 2021, the cumulative after-tax effects of our derivatives designated as cash flow hedges were net gains of $175 million. Included in this amount, were pre-tax gains of $223 million related to forward-starting interest rate swaps, driven by the periodic change in benchmark interest rates in the first quarter of 2021.
We recognized defined benefit pension and other post-retirement benefit plan pre-tax gains of $214 million, related to changes in actuarial assumptions, primarily related to an increase in discount rate and higher actual returns versus expected returns on plan assets in the fourth quarter of 2021.
The predominant functional currency for our operations outside of the U.S. is the euro. Relative to the U.S. dollar, the value of the euro weakened in the first quarter of 2022, the fourth and the first quarter of 2021, resulting in net losses reflected in the Consolidated Statements of Comprehensive Income. The net losses related to unrealized changes in foreign currency translation impacts include pre-tax gains of $35 million, $52 million and $62$84 million in the first quarter of 2022, the fourth and2023 compared to the first quarter of 2021, respectively, which represent2022 due to periodic changes in the benchmark interest rates, combined with lower notional amounts outstanding during the first quarter of 2023.
Defined pension and other postretirement benefit plans led to a decrease in Comprehensive income of $210 million in the first quarter of 2023 compared to the fourth quarter of 2022, as the fourth quarter of 2022 reflected annual changes in actuarial assumptions. Defined pension and postretirement benefit plans remained relatively unchanged in the first quarter of 2023 compared to the first quarter of 2022.
Foreign currency translation gains in Comprehensive income decreased by $173 million in the first quarter of 2023 compared to the fourth quarter of 2022, primarily due to the weakening of the U.S. dollar relative to the euro, offset by the effective portion of our net investment hedges. Foreign currency translation gains in Comprehensive income increased by $84 million in the first quarter of 2023 compared to the first quarter of 2022, primarily due to the strengthening of the U.S. dollar relative to the euro.
See Notes 7 and 10 to our Consolidated Financial Statements for further discussions.


2728

Table of Contents
Segment Analysis
We use earnings from continuing operations before interest, income taxes, and depreciation and amortization (“EBITDA”) as our measure of profitability for segment reporting purposes. This measure of segment operating results is used by our chief operating decision maker to assess the performance of and allocate resources to our operating segments. Intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefits other than service costs are included in “Other”. For additional information related to our operating segments, as well as a reconciliation of EBITDA to its nearest GAAPgenerally accepted accounting principles (“GAAP”) measure, Income from continuing operations before income taxes, see Note 12 to our Consolidated Financial Statements.
Our continuing operations are managed through six reportable segments: O&P-Americas, O&P-EAI, I&D, APS, Refining and Technology.
Revenues and the components of EBITDA for the periods presented are reflected in the table below:
Three Months EndedThree Months Ended
March 31,December 31,March 31,March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenues:Sales and other operating revenues:Sales and other operating revenues:
O&PAmericas segment
$3,595 $4,012 $2,859 
O&PEAI segment
3,762 3,530 3,047 
O&P-Americas segmentO&P-Americas segment$2,808 $2,818 $3,734 
O&P-EAI segmentO&P-EAI segment2,892 2,523 3,926 
I&D segmentI&D segment3,339 2,934 1,767 I&D segment2,682 2,562 3,339 
APS segmentAPS segment1,408 1,253 1,270 APS segment997 901 1,136 
Refining segmentRefining segment2,720 2,643 1,126 Refining segment2,190 2,633 2,720 
Technology segmentTechnology segment181 257 165 Technology segment139 145 181 
Other, including intersegment eliminationsOther, including intersegment eliminations(1,848)(1,799)(1,152)Other, including intersegment eliminations(1,461)(1,376)(1,879)
TotalTotal$13,157 $12,830 $9,082 Total$10,247 $10,206 $13,157 
Operating income (loss):Operating income (loss):Operating income (loss):
O&PAmericas segment
$728 $1,067 $687 
O&PEAI segment
138 57 259 
O&P-Americas segmentO&P-Americas segment$371 $217 $754 
O&P-EAI segmentO&P-EAI segment21 (156)163 
I&D segmentI&D segment468 139 88 I&D segment320 211 468 
APS segmentAPS segment88 (13)104 APS segment(247)(50)38 
Refining segmentRefining segment148 (496)(130)Refining segment186 221 148 
Technology segmentTechnology segment93 163 82 Technology segment61 50 93 
Other, including intersegment eliminationsOther, including intersegment eliminations(2)(6)(2)Other, including intersegment eliminations(6)(3)
TotalTotal$1,661 $911 $1,088 Total$713 $487 $1,661 
Depreciation and amortization:Depreciation and amortization:Depreciation and amortization:
O&PAmericas segment
$144 $151 $143 
O&PEAI segment
47 47 53 
O&P-Americas segmentO&P-Americas segment$144 $149 $144 
O&P-EAI segmentO&P-EAI segment48 35 47 
I&D segmentI&D segment81 115 80 I&D segment110 87 81 
APS segmentAPS segment29 34 28 APS segment22 24 29 
Refining segmentRefining segment— 21 19 Refining segment61 28 — 
Technology segmentTechnology segment10 12 Technology segment11 11 10 
TotalTotal$311 $377 $335 Total$396 $334 $311 
Income (loss) from equity investments:
O&PAmericas segment
$33 $21 $30 
O&PEAI segment
50 95 
I&D segment(5)12 
APS segment— (1)— 
Total$29 $72 $137 



2829

Table of Contents
Three Months EndedThree Months Ended
March 31,December 31,March 31,March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Income (loss) from equity investments:Income (loss) from equity investments:
O&P-Americas segmentO&P-Americas segment$23 $17 $33 
O&P-EAI segmentO&P-EAI segment(29)
I&D segmentI&D segment(6)(8)(5)
APS segmentAPS segment(1)— — 
TotalTotal$17 $(20)$29 
Other income (expense), net:Other income (expense), net:Other income (expense), net:
O&PAmericas segment
$$23 $
O&PEAI segment
O&P-Americas segmentO&P-Americas segment$$$
O&P-EAI segmentO&P-EAI segment
I&D segmentI&D segment(4)I&D segment
APS segmentAPS segmentAPS segment— — 
Refining segmentRefining segment— Refining segment(1)— — 
Technology segmentTechnology segment— — Technology segment(2)— 
Other, including intersegment eliminationsOther, including intersegment eliminationsOther, including intersegment eliminations(7)(11)
TotalTotal$19 $35 $25 Total$$(9)$19 
EBITDA:EBITDA:EBITDA:
O&PAmericas segment
$911 $1,262 $867 
O&PEAI segment
188 155 412 
O&P-Americas segmentO&P-Americas segment$541 $384 $939 
O&P-EAI segmentO&P-EAI segment77 (148)214 
I&D segmentI&D segment546 252 182 I&D segment426 291 546 
APS segmentAPS segment125 24 135 APS segment(226)(26)71 
Refining segmentRefining segment148 (474)(110)Refining segment246 249 148 
Technology segmentTechnology segment103 173 94 Technology segment73 59 103 
Other, including intersegment eliminationsOther, including intersegment eliminations(1)Other, including intersegment eliminations(6)(17)(1)
TotalTotal$2,020 $1,395 $1,585 Total$1,131 $792 $2,020 

Olefins and PolyolefinAmericasPolyolefin-Americas Segment

Overview—EBITDA in the first quarter of 2022 decreased2023 increased compared to the fourth quarter of 2021 due to higher feedstock cost2022 driven by improvements in olefins and increasedpolyethylene margins. EBITDA decreased in the first quarter of 2023 relative to the first quarter of 20212022 primarily driven by higher polyolefins results.

lower margins across most businesses.
Ethylene Raw Materials—We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the first quarter of 20222023, and the first and fourth quarterquarters of 20212022, approximately 60%65% to 70% of the raw materials used in our North American crackers was ethane.


30

Table of Contents
The following table sets forth selected financial information for the O&PAmericas&P-Americas segment including Income from equity investments, which is a component of EBITDA:

Three Months Ended
 March 31,December 31,March 31,
Millions of dollars202220212021
Sales and other operating revenues$3,595 $4,012 $2,859 
Income from equity investments33 21 30 
EBITDA911 1,262 867 


29

Table of Contents
Three Months Ended
 March 31,December 31,March 31,
Millions of dollars202320222022
Sales and other operating revenues$2,808 $2,818 $3,734 
Income from equity investments23 17 33 
EBITDA541 384 939 
Revenue—Revenues for our O&PAmericas&P-Americas segment declinedremained relatively unchanged in the first quarter of 2023 compared to the fourth quarter of 2022 and decreased by $417$926 million, or 10%25%, in the first quarter of 2022 compared to the fourth quarter of 2021 and increased by $736 million, or 26%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.

First quarter of 20222023 versus fourth quarter of 20212022Volume declines resulted inRevenue decreased by 6% as a revenue decreaseresult of 8% due to planned and unplanned outages. Lowerlower co-product sales volumes. Higher average sales prices resulted in a 2% decrease in revenue increase of 6% primarily driven by improving demand and lower demand.industry supply due to outages.

First quarter of 20222023 versus first quarter of 20212022HigherLower average sales prices across all products resulted in a 23% increase27% decrease in revenue primarily driven by tightincreased market conditions.supply. Higher sales volumevolumes resulted in a revenue increase of 3%2% as the first quartera result of 2021 was impacted by the effects of unusually cold temperatures and associated electrical power outages that led to shutdowns of manufacturing facilities in Texas.higher co-products sales.

EBITDA—EBITDA decreasedincreased by $351$157 million, or 28%41%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and increaseddecreased by $44$398 million, or 5%42%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.

First quarter of 20222023 versus fourth quarter of 20212022Higher olefins results led to a 40% increase in EBITDA driven by higher margins as a result of lower feedstock and energy cost. Higher polyethylene results led to a 12% increase in EBITDA due to higher margins driven by higher average sales prices. Lower olefinpolypropylene results led to a 14% decrease in EBITDA primarily due to lower margins driven by higher feedstock costs. Lower polyethylene and polypropylene results led to a 10% and 5% decrease in EBITDA, respectively, primarily due to polyolefin sales price decreases in combination with higher feedstock costs.spreads resulting from increased industry supply and weak demand for durable goods.

First quarter of 20222023 versus first quarter of 20212022HigherLower polyethylene and polypropylene results led to a 18% and 3% increase in EBITDA, respectively, primarily due to sales price increases and lower feedstock costs. Lower olefin results led to a 15% decrease in EBITDA primarily driven by lower margins as a result of lower average sales prices. Lower olefins results led to a 13% decrease in EBITDA due to lower margins driven by a decline in the average sales price of ethylene partially offset by lower feedstock costs. Lower polypropylene results led to a 13% decrease in EBITDA driven by a decrease in margin constraints from rising feedstock and energy costsas a result of lower spreads due to increased industry supply and lower ethylene sales prices.demand.
Olefins and PolyolefinEurope,Polyolefin-Europe, Asia, International Segment

Overview—EBITDA increased in the first quarter of 20222023 compared to the fourth quarter of 20212022 primarily due to improved olefins margins, increased polymer volumes, and higher product margins andincome from equity investments. EBITDA decreased in the first quarter of 2023 relative to the first quarter of 2021 mainly2022 primarily as a result of lower olefin margins and equity income.

During the first quarter of 2022 and fourth quarter of 2021 we operated our ethylene crackers at 74% and 71% of capacity, respectively, due to planned maintenance compared with an operating rate of 98% in the first quarter of 2021. The first quarter of 2022 was also impacted by feedstock disruptions driven by the war in Ukraine.

polymers margins.
Ethylene Raw Materials—In Europe, heavy liquids arenaphtha is the primary raw materialsmaterial for our ethylene production and represented approximately 70% of the raw materials used in the first quarter of 20222023 and 65% and 75% used in the first and fourth quarterquarters of 2021.2022, respectively.


31

Table of Contents
The following table sets forth selected financial information for the O&PEAI&P-EAI segment including Income from equity investments, which is a component of EBITDA:
Three Months EndedThree Months Ended
March 31,December 31,March 31, March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenuesSales and other operating revenues$3,762 $3,530 $3,047 Sales and other operating revenues$2,892 $2,523 $3,926 
Income from equity investments50 95 
(Loss) income from equity investments(Loss) income from equity investments(29)
EBITDAEBITDA188 155 412 EBITDA77 (148)214 




30

Table of Contents
Revenue—Revenues increased by $232$369 million, or 7%15%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and decreased by $715$1,034 million, or 23%26%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.
First quarter of 20222023 versus fourth quarter of 20212022—Higher volumes resulted in a revenue increase of 14% primarily due to higher demand. Favorable foreign exchange impacts resulted in a revenue increase of 5%. Lower average sales prices resulted in a 7% increase4% decrease in revenue as sales prices generally correlate with crude oil prices, which on average, increaseddecreased compared to the fourth quarter of 2021. Volume improvements resulted in a revenue increase of 3% primarily due to increased demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 3%.2022.

First quarter of 20222023 versus first quarter of 20212022HigherLower average sales prices resulted in a 27% increase16% decrease in revenue as sales prices generally correlate with crude oil prices, which on average, increaseddecreased compared to the first quarter of 2021.2022. Lower volumes resulted in a revenue decrease of 3%6% primarily due to lower demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%4%.

EBITDA—EBITDA increased by $33$225 million, or 21%152%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and decreased by $224$137 million, or 54%64%, in the first quarter of 20222023 compared to the first quarter of 2021.

First quarter of 2022 versus fourth quarter of 2021—Higher polyethylene and polypropylene results led to a 19% and 5% increase in EBITDA, respectively, largely attributed to higher margins. Higher olefins results led to a 14% increase in EBITDA primarily driven by higher margins as monomer prices increased, partially offset by higher feedstock and energy costs. Lower income from our equity investments led to decreases in EBITDA of 32% mainly attributable to margin compression due to decreased demand and lower prices in Asia. The fourth quarter of 2021 included a $30 million LIFO inventory valuation charge, a similar charge was not incurred during the first quarter of 2022.

First quarter of 20222023 versus firstfourth quarter of 20212022LowerHigher olefins results led to a 25% decrease61% increase in EBITDA primarily driven by higher margins as a result of lower margins attributableenergy costs. Higher polyolefins results led to a 28% increase in EBITDA primarily driven by higher feedstock and energy costs which outpacedvolumes due to increased ethylene and co-product prices. Lowerdemand. Improved income from our equity investments led to decreasesan increase in EBITDA of 23%20% mainly attributable to margin compression as noted above. Unfavorable foreign exchange impactsa gain on sale of asset recognized by one of our joint ventures in Europe. During the fourth quarter of 2022 we recognized last-in, first out (“LIFO”) inventory valuation charges of $56 million. The absence of similar charges in the first quarter of 2023 resulted in a 38% increase in EBITDA.
First quarter of 2023 versus first quarter of 2022—Lower polymer results led to an 84% decrease in EBITDA decrease of 4%.primarily driven by decreased margins resulting from lower polyolefins spreads reflecting weak demand. Higher olefins results led to a 21% increase in EBITDA, which was primarily driven by higher margins resulting from lower feedstock costs which outpaced decreased ethylene prices.

Other
—Planned maintenance in 2022 for our O&P—EAI segment is expected to impact EBITDA by approximately $95 million for the full year, $35 million higher than previously estimated due to additional work related to planned maintenance at our cracker in Berre, France in the second quarter

32

Table of 2022.Contents
Intermediates and Derivatives Segment

Overview—EBITDA increased in the first quarter of 2023 compared to the fourth quarter of 2022, primarily driven by improved margins for oxyfuels and related products. EBITDA decreased in the first quarter of 2023 compared to the first and fourth quarter of 2021,2022, primarily driven by highera decrease in margins across most businesses due to market supply tightness coupled with strong demand recovery.for propylene oxide and derivatives and intermediate chemicals, partially offset by margin improvements for oxyfuels and related products.
The following table sets forth selected financial information for the I&D segment including Income (loss) from equity investments, which is a component of EBITDA:
Three Months EndedThree Months Ended
March 31,December 31,March 31, March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenuesSales and other operating revenues$3,339 $2,934 $1,767 Sales and other operating revenues$2,682 $2,562 $3,339 
(Loss) income from equity investments(5)12 
Loss from equity investmentsLoss from equity investments(6)(8)(5)
EBITDAEBITDA546 252 182 EBITDA426 291 546 




31

Table of Contents
Revenue—Revenues increased by $405$120 million, or 14%5%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and decreased by $1,572$657 million, or 89%20%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.
First quarter of 20222023 versus fourth quarter of 20212022Sales volumes increased resulting in a 9% increase in revenue, largely due to improved operating rates at our acetyls facilities. Higher average sales prices resulted in a 6%2% increase in revenue asrevenue. Favorable foreign exchange impacts resulted in a 2% increase in revenue. Sales volumes improved resulting in a 1% increase in revenue.
First quarter of 2023 versus first quarter of 2022—Lower average sales prices generally correlate with crude oil prices, which on average, increased comparedresulted in a 9% decrease in revenue driven by lower pricing in PO derivatives, acetyls and styrene as a result of higher market supply. Sales volumes decreased resulting in a 9% reduction in revenue due to the fourth quarter of 2021.lower demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%2%.

First quarter of 2022 versus first quarter of 2021—Higher average sales prices resulted in a 55% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the same period in 2021. Sales volumes increased resulting in a 35% increase in revenue, mainly due to absence of the impact of unusually cold temperatures and associated electrical power outages that led to shutdowns of our manufacturing facilities in Texas in early 2021. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%.

EBITDA—EBITDA increased by $294$135 million, or 117%46%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and decreased by $364$120 million, or 200%22%, in the first quarter of 20222023 compared to the first quarter of 2021.

2022.
First quarter of 20222023 versus fourth quarter of 20212022EBITDA improved 25% as a result of higher oxyfuels and related products results driven by increased margins as a result of higher blend premiums and a tight gasoline market. During the fourth quarter of 2022 we recognized a $26 million LIFO inventory valuation charge. The absence of a similar charge in the first quarter of 2023 resulted in a 9% increase in EBITDA. Propylene oxide and derivatives results drove a 3% increase in EBITDA primarily as a result of increased volumes. Favorable foreign exchange impacts resulted in a 2% increase in EBITDA.
First quarter of 2023 versus first quarter of 2022—Propylene oxide and derivatives results drove a 31% decrease in EBITDA as margins declined due to lower demand. Intermediate chemicals results declined, resulting in a 20% decrease in EBITDA, primarily driven by lower margins due to lower average sales prices from higher market supply. Oxyfuels and related products results led to an EBITDA increase of 50% primarily26% driven by margin improvement as a result ofimprovements resulting from higher product prices. Propylene oxideblend premiums and derivatives results led to increases in EBITDA of 20% due to improved margins driven by increased demand for durable goods. Intermediate chemicals results increased EBITDA by 17% equally driven by higher margins and volumes due to tight industry supply and improved operations. The fourth quarter of 2021 included a $93 million LIFO inventory valuation charge; a similar charge was not incurred during the first quarter of 2022.strong gasoline crack spreads.


33

First quarterTable of 2022 versus first quarter of 2021—Propylene oxide and derivatives results increased EBITDA by 113% primarily as a result of higher margins due to strong demand recovery coupled with tight market supply resulting from industry outages. Intermediate chemicals results increased EBITDA by 77% due to improved margins driven by higher demand and tight market conditions. Oxyfuels and related products results increased EBITDA by 42% primarily driven by margin improvement as a result of improved demand and higher gasoline prices. Lower income from our equity investments led to decreases in EBITDA of 10% mainly attributable to lower propylene oxide margins in Asia. Unfavorable foreign exchange impacts resulted in a EBITDA decrease of 9%.Contents
Advanced Polymer Solutions Segment

OverviewEBITDA increased in the first quarter of 2022 relative to the fourth quarter of 2021 primarily due to higher demand for our products and the absence of a LIFO adjustment recognized during the fourth quarter of 2021. EBITDA decreased in the first quarter of 20222023 relative to the fourth quarter of 2022 and the first quarter of 20212022 primarily due to lower demandthe recognition of a non-cash goodwill impairment charge in the first quarter of 2023. See Note 12 to our Consolidated Financial Statements for our products.additional information.
The following table sets forth selected financial information for the APS segment including lossesIncome from equity investments, which is a component of EBITDA:
Three Months EndedThree Months Ended
March 31,December 31,March 31, March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenuesSales and other operating revenues$1,408 $1,253 $1,270 Sales and other operating revenues$997 $901 $1,136 
Loss from equity investmentsLoss from equity investments— (1)— Loss from equity investments(1)— — 
EBITDAEBITDA125 24 135 EBITDA(226)(26)71 


Revenue—Revenues increased by $96 million, or 11%, in the first quarter of 2023 compared to the fourth quarter of 2022 and decreased by $139 million, or 12%, in the first quarter of 2023 compared to the first quarter of 2022.
First quarter of 2023 versus fourth quarter of 2022—Sales volumes increased resulting in a 10% increase in revenue stemming from higher demand. Foreign exchange impacts resulted in a revenue increase of 2%. Average sales price decreased resulting in a 1% decrease in revenue.
First quarter of 2023 versus first quarter of 2022—Sales volumes decreased resulting in a 5% decrease in revenue stemming from lower demand. Average sales price decreased resulting in a 5% decrease in revenue. Unfavorable foreign exchange impacts resulted in a revenue decrease of 2%.
EBITDA—EBITDA decreased by $200 million in the first quarter of 2023 compared to the fourth quarter of 2022 and by $297 million in the first quarter of 2023 compared to the first quarter of 2022.
During the first quarter of 2023 we recognized a non-cash goodwill impairment charge of $252 million after the effect of moving our Catalloy and polybutene-1 products from our APS segment and reintegrating into our O&P-Americas and O&P-EAI segments. See Note 12 to our Consolidated Financial Statements for additional information.
First quarter of 2023 versus fourth quarter of 2022—Margins in the first quarter of 2023 improved compared to the fourth quarter of 2022, due to higher sales prices resulting in an EBITDA improvement of 100%. During the fourth quarter of 2022 we recognized a $21 million LIFO inventory valuation charge. The absence of a similar charge in the first quarter of 2023 resulted in an 81% increase in EBITDA compared to the fourth quarter of 2022. The remaining change was primarily due to the recognition of the non-cash goodwill impairment charge in the first quarter of 2023, discussed above.
First quarter of 2023 versus first quarter of 2022— Margins in the first quarter of 2023 decreased compared to the first quarter of 2022, primarily due to higher production and raw material costs resulting a 31% decrease in EBITDA. Lower volumes resulted in a 24% decrease in EBITDA as a result of a decrease in demand. The remaining change was primarily due to the recognition of the non-cash goodwill impairment charge in the first quarter of 2023, discussed above.



3234

Table of Contents
Refining Segment
RevenueOverviewRevenues increased by $155 million, or 12%,EBITDA remained relatively unchanged in the first quarter of 2022 compared2023 relative to the fourth quarter of 2021 and by $138 million, or 11%, in the first quarter of 2022 comparedprimarily due to the first quarterabsence of 2021.
First quarter of 2022 versus fourth quarter of 2021—Sales volumes improved resultinga LIFO inventory valuation benefit recognized in a 12% increase in revenue stemming from higher automotive and construction demand. Average sales price increased resulting in a 3% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the fourth quarter of 2021. Foreign exchange impacts resulted in a revenue decrease of 3%.

First quarter of 2022 versus first quarter of 2021—Average sales price increased resulting in a 19% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the same period in 2021. Sales volumes decreased resulting in a 7% decrease in revenue stemming from lower automotive demand. Foreign exchange impacts resulted in a revenue decrease of 1%.

EBITDA—EBITDA increased by $101 million, or 421%, in the first quarter of 2022 compared to the fourth quarter of 2021 and decreased by $10 million, or 7%, in the first quarter of 2022 compared to the first quarter of 2021.

First quarter of 2022 versus fourth quarter of 2021—Compounding and solutions results led to an EBITDA increase of 146% primarily due to higher volumes drivenoffset by higher demand from automotive manufacturers. Increased advanced polymer results led to an EBITDA increase of 42% due to higher volumes driven by increased seasonal demand. The fourth quarter of 2021 included a $55 million LIFO inventory valuation charge; a similar charge was not incurred during the first quarter of 2022.

First quarter of 2022 versus first quarter of 2021—Compounding and solutions results led to an EBITDA decrease of 13% primarily due to lower volumes driven by lower demand due to constrained production in automotive, appliance and other end markets as a result of semiconductor shortages. Our advanced polymers business results increased 8%, driven by higher price spreads. Unfavorable foreign exchange impacts resulted in a EBITDA decrease of 6%.
Refining Segment

Overviewmargins. EBITDA increased in the first quarter of 2022 relative2023 compared to the first and fourth quarter of 20212022 due to higher margins and the absence of a non-cash impairment charge recognized during the fourth quarter of 2021.margins.

The following table sets forth selected financial information and heavy crude oil processing rates for the Refining segment and the U.S. refining market margins for the applicable periods. “Brent” is a light sweet crude oil and is one of the main benchmark prices for purchases of oil worldwide. “Maya” is a heavy sour crude oil grade produced in Mexico that is a relevant benchmark for heavy sour crude oils in the U.S. Gulf Coast market. References to industry benchmarks for refining market margins are to industry prices reported by Platts, a division of S&P Global.
Three Months EndedThree Months Ended
March 31,December 31,March 31, March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenuesSales and other operating revenues$2,720 $2,643 $1,126 Sales and other operating revenues$2,190 $2,633 $2,720 
EBITDAEBITDA148 (474)(110)EBITDA246 249 148 
Thousands of barrels per dayThousands of barrels per dayThousands of barrels per day
Heavy crude oil processing ratesHeavy crude oil processing rates255 266 152 Heavy crude oil processing rates226 229 255 
Market margins, dollars per barrelMarket margins, dollars per barrelMarket margins, dollars per barrel
Brent - 2-1-1Brent - 2-1-1$22.31 $15.54 $10.57 Brent - 2-1-1$29.44 $31.11 $22.31 
Brent - Maya differentialBrent - Maya differential8.51 8.04 4.75 Brent - Maya differential19.39 17.01 8.51 
Total Maya 2-1-1Total Maya 2-1-1$30.82 $23.58 $15.32 Total Maya 2-1-1$48.83 $48.12 $30.82 



33

Table of Contents
Revenue—Revenues increaseddecreased by $77$443 million, or 3%17%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and by $1,594$530 million, or 142%19%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.

First quarter of 20222023 versus fourth quarter of 20212022HigherSales volumes declined resulting in a 10% decrease in revenue due to unplanned downtime. Lower product prices led to a revenue increasedecrease of 10%7% due to an average Brent crude oil price increasedecrease of approximately $18$6.38 per barrel.

First quarter of 2023 versus first quarter of 2022Sales volumes decreased resulting in a 7%14% decrease in revenue due to the impact of downtime associated with unplanned outages at one of our coking units.
First quarter of 2022 versus first quarter of 2021—Higherdowntime. Lower product prices led to a revenue increasedecrease of 87%5% due to an average Brent crude oil price increasedecrease of approximately $36$15.16 per barrel. Sales volumes increased resulting in a 55% increase in revenue due to improved supply and demand as the first quarter of 2021 was impacted by planned and unplanned outages, including the effects of unusually cold temperatures and associated electrical power outages that led to shutdowns of our manufacturing facilities in Texas.

EBITDA—EBITDA increaseddecreased by $622$3 million, or 131%1%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and increased by $258$98 million, or 235%66%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.

First quarter of 20222023 versus fourth quarter of 20212022—During the fourth quarter of 2021,2022 we recognized a non-cash impairment charge of $624 million relating to our Houston refinery’s asset group as well as a $52 million LIFO inventory benefit; nobenefit of $40 million. The absence of a similar items were incurred duringbenefit in the first quarter of 2022. Margin improvements, driven by an increase in the Maya 2-1-1 market margin,2023 resulted in a 13% increase16% decrease in EBITDA. Volumes declinedLower volumes as a result of unplanned maintenance whichdowntime resulted in a 3%6% decrease in EBITDA. Increased margins primarily driven by higher by-product crack spreads resulted in a 19% increase in EBITDA.

First quarter of 20222023 versus first quarter of 20212022Volumes increased as demand improved for refined products which resulted inMargin improvement drove a 8% increase in EBITDA. The remaining135% increase in EBITDA was driven by margin improvementsprimarily due to an increase in the Maya 2-1-1 market margin resultingmargin. EBITDA decreased 22% as a result of a decrease in volumes driven by unplanned downtime. Additionally, higher costs incurred related to our planned exit from higher demand.

Other—In April 2022 we announced our decisionthe refining business in the first quarter of 2023 resulted in a 47% decrease in EBITDA compared to cease operationthe first quarter of our Houston Refinery no later than December 31, 2023.2022. See Note 12 to the Consolidated Financial Statements for additional information.information regarding our planned exit of the refining business.
35

Table of Contents
Technology Segment

OverviewEBITDA increased in the first quarter of 2023 compared to the fourth quarter of 2022 primarily due to the absence of a LIFO inventory valuation charge recognized in the fourth quarter of 2022. EBITDA decreased in the first quarter of 2022 compared2023 relative to the fourth quarter of 2021 from lower licensing revenues and increased in the first quarter of 2022 relative to the first of 2021primarily driven by higherlower catalyst volumes.

The following table sets forth selected financial information for the Technology segment:

Three Months EndedThree Months Ended
March 31,December 31,March 31, March 31,December 31,March 31,
Millions of dollarsMillions of dollars202220212021Millions of dollars202320222022
Sales and other operating revenuesSales and other operating revenues$181 $257 $165 Sales and other operating revenues$139 $145 $181 
EBITDAEBITDA103 173 94 EBITDA73 59 103 

Revenue—Revenues decreased by $76$6 million, or 30%4%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and increased by $16$42 million, or 10%23%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.

First quarter of 20222023 versus fourth quarter of 20212022—Licensing revenues decreased by 32%7% as fewer contracts reached significant milestones during the quarter. HigherChanges in average catalyst sales price resulted in a revenue decrease of 2%. A favorable foreign exchange impact increased revenue by 5%.

First quarter of 2023 versus first quarter of 2022— Lower catalyst volumes resulted in a 3% increase18% decrease in revenue primarily driven by continued strongweaker demand. Changes in average catalyst sales price resulted in a revenue increase of 4%. An unfavorable2% decrease in revenue. Unfavorable foreign exchange impact decreased revenue by 5%.

34

Table of Contents
First quarter of 2022 versus first quarter of 2021—Higher catalyst volumesimpacts resulted in a 13% increase in revenue primarily driven by strong demand. Changes in average catalyst sales price resulted in a 3%2% decrease in revenue. HigherLower licensing revenues resulted inresulting from fewer contracts reaching significant milestones drove a 1% increasedecrease in revenue. An unfavorable foreign exchange impact decreased revenue by 1%.

EBITDA—EBITDA decreasedincreased by $70$14 million, or 40%24%, in the first quarter of 20222023 compared to the fourth quarter of 20212022 and increaseddecreased by $9$30 million, or 10%29%, in the first quarter of 20222023 compared to the first quarter of 2021.2022.

First quarter of 20222023 versus fourth quarter of 20212022Higher catalyst margins and favorable foreign exchange impacts resulted in a 12% and 10% increase in EBITDA, decreases were primarily driven by lowerrespectively, compared to the fourth quarter of 2022. Lower licensing revenuerevenues resulting from fewer contracts reaching significant milestones which resulted inled to a 49%20% decrease in revenue. This decreaseEBITDA. The remaining change was partially offset by an increase in catalyst margins driven by higher average sales prices which resulted in a 7% increase in EBITDA.

due to the fourth quarter of 2022 LIFO inventory valuation charge.
First quarter of 20222023 versus first quarter of 20212022EBITDA improvements were Lower catalyst volumes driven by higher catalyst volumes whichlower demand resulted in an EBITDA increasedecrease of 19%26%. Unfavorable foreign exchange impacts resulted in an EBITDA decrease of 7%3%.


3536

Table of Contents
FINANCIAL CONDITION
Operating, investing and financing activities of continuing operations, which are discussed below, are presented in the following table:
Three Months Ended
March 31,
Three Months Ended
March 31,
Millions of dollarsMillions of dollars20222021Millions of dollars20232022
Cash provided by (used in):Cash provided by (used in):Cash provided by (used in):
Operating activitiesOperating activities$1,502 $571 Operating activities$482 $1,502 
Investing activitiesInvesting activities(456)(59)Investing activities(371)(456)
Financing activitiesFinancing activities(713)(782)Financing activities(477)(713)
Operating Activities—Cash provided by operating activities of $1,502482 million in the first quarter of 2023 primarily reflected earnings adjusted for non-cash items and by the main components of working capital—Accounts receivable, Inventories, and Accounts payable.
In the first quarter of 2023, the main components of working capital used $558 million of cash driven primarily by increases in Accounts receivable and Inventories. The increase in Accounts receivable was primarily driven by higher volumes and average sales prices in our O&P-EAI, I&D and APS segments. The increase in Inventories was primarily due to inventory build associated with the timing of the start-up of our PO/TBA plant in Houston, TX as well as planned and unplanned outages.
Cash provided by operating activities of $1,502 million in the first quarter of 2022 primarily reflected earnings adjusted for non-cash items and cash used by the main components of working capital—Accounts receivable, Inventories and Accounts payable.capital.
In the first quarter of 2022, the main components of working capital used $22 million of cash driven primarily by an increase in Inventories and Accounts receivable, partially offset by an increase in Accounts payable. The increase in Inventories was primarily due to an increase in raw material costs coupled with an increase in inventory in anticipation of turnaround activity in the I&D segment. The increase in Accounts receivable was driven by higher revenues across several of our businesses primarily driven by higher volumes and higher average sales prices. The increase in Accounts payable was primarily driven by increases in our Refining and O&PAmericas&P-Americas segments as a result of increased raw material and energy costs.
Cash provided by operating activities of $571 million in the first quarter of 2021 reflected earnings adjusted for non-cash items and cash used by the main components of working capital.
In the first quarter of 2021, the main components of working capital used $626 million of cash driven primarily by an increase in Accounts receivable and Inventories partially offset by an increase in Accounts payable. The increase in Accounts receivable was driven by higher revenues for our O&P—Americas, O&P—EAI, and APS segments. The increase in Inventory was primarily driven by higher inventory volumes, due to lower crude oil consumption as a result of Texas weather events, and prices within our Refining segment. The increase in Accounts payables was primarily driven by increased raw material costs.
Investing Activities—Capital expenditures in the first quarter of 20222023 totaled $446$352 million compared to $340$446 million in the first quarter of 2021.2022. Approximately 40%45% and 55%40% of our capital expenditures in the first quarter of 20222023 and 2021,2022, respectively, was for profit-generating growth projects, primarily our PO/TBA plant, with the remaining expenditures supporting sustaining maintenance. See Note 12 to the Consolidated Financial Statements for additional information regarding capital expenditures by segment.
Financing ActivitiesWe invest cashmade dividend payments totaling $389 million and $371 million in investment-grade and other high-quality instruments that provide adequate flexibility to redeploy funds as needed to meet our cash flow requirements while maximizing yield.
In the first quarter of 2023 and 2022, and 2021, we received proceeds of $8 million and $226 million, respectively, from the liquidation of our investment in equity securities.respectively. Additionally, in the first quarter of 2021 we received proceeds of $74 million from maturities of certain available-for-sale debt securities.
Financing Activities—In the first quarter of2023 and 2022, we made payments of $70 million and $217 million to repurchase outstanding ordinary shares. We made dividend payments totaling $371 million and $352 million in the first quarter of 2022 and 2021,shares, respectively.
In the first quarter of 2022, we made net repayments of $169 million related to the issuance and repurchase of commercial paper instruments under our commercial paper program.


36

Table of Contents
In the first quarter of 2022, and 2021, we received a return of collateral of $51 million, and $66 million, respectively, related to the positions held with our counterparties for certain forward-starting interest rate swaps.
In the first quarter


37

Table of 2021, we repaid $500 million outstanding under our $4,000 million senior unsecured delayed draw term loan credit facility due March 2022.Contents
Liquidity and Capital Resources
Overview
We plan to fund our working capital, capital expenditures, debt service, dividends and other cash requirements with our current available liquidity and cash from operations, which could be affected by general economic, financial, competitive, legislative, regulatory, business and other factors, many of which are beyond our control. CashDebt repayment, and the purchase of shares under our share repurchase authorization, may be funded from cash and cash equivalents, cash from our short-term investments, cash from operating activities, proceeds from the issuance of debt, or a combination thereof, may be usedthereof.
As part of our overall capital allocation strategy, we plan to fundprovide returns to shareholders in the purchaseform of shares under ourdividends and share repurchase authorization.

repurchases. Barring any significant or unforeseen business challenges, mergers or acquisitions, over the long-term, we are targeting shareholder returns of 70% of free cash flow, defined as net cash provided by operating activities less capital expenditures. We intend to continue to declare and pay quarterly dividends, with the goal of increasing the dividend over time, after giving consideration to our cash balances and expected results from operations. Our focus on funding our dividends while remaining committed to a strong investment grade balance sheet continues to be the foundation of our capital allocation strategy.

Cash and Liquid Investments
As of March 31, 2022,2023, we had Cash and cash equivalents totaling $1,785$1,790 million, which includes $1,024$734 million in jurisdictions outside of the U.S., principally inthe majority of which is held within the European Union and the United Kingdom. There are currently no legal or economic restrictions that would materially impede our transfers of cash.
Credit Arrangements
At March 31, 2022,2023, we had total debt, including current maturities, of $11,324$11,376 million. Additionally, we had $211$198 million of outstanding letters of credit, bank guarantees and surety bonds issued under uncommitted credit facilities to support trade payables and other obligations.
We had total unused availability under our credit facilities of $4,115$3,950 million at March 31, 2022,2023, which included the following: 
$3,2153,050 million under our $3,250 million Senior Revolving Credit Facility, which backs our $2,500 million commercial paper program. Availability under this facility is net of outstanding borrowings, outstanding letters of credit provided under the facility and notes issued under our commercial paper program. At March 31, 2022,2023, we had $35$200 million of outstanding commercial paper, net of discount, and no borrowings or letters of credit outstanding under this facility; and
$900 million under our $900 million U.S. Receivables Facility. Availability under this facility is subject to a borrowing base of eligible receivables, which is reduced by outstanding borrowings and letters of credit, if any. At March 31, 2022,2023, we had no borrowings or letters of credit outstanding under this facility.
At any time and from time to time, we may repay or redeem our outstanding debt, including purchases of our outstanding bonds in the open market, through privately negotiated transactions or a combination thereof, in each case using cash and cash equivalents, cash from our short-term investments, cash from operating activities, proceeds from the issuance of debt or proceeds from asset divestitures. Any repayment or redemption of our debt will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. In connection with such repurchases or redemptions, we may incur cash and non-cash charges, which could be material in the period in which they are incurred.
In accordance with our current interest rate risk management strategy and subject to management’s evaluation of market conditions and the availability of favorable interest rates among other factors, we may from time to time enter into interest rate swap agreements to economically convert a portion of our fixed rate debt to variable rate debt or convert a portion of our variable rate debt to fixed rate debt.


3738

Table of Contents
Share Repurchases
In May 2021,2022, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 28, 2022 (“2021 Share Repurchase Authorization”),27, 2023, which superseded any prior repurchase authorizations. Our share repurchase authorization does not have a stated dollar amount, and purchases may be made through open market purchases, private market transactions or other structured transactions. Repurchased shares could be retired or used for general corporate purposes, including for various employee benefit and compensation plans. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased. In the first quarter of 2022,2023, we purchased approximately 2.10.8 million shares under our 2021 Share Repurchase Authorizationshare repurchase authorizations for $202$74 million.
As of April 27, 2022,26, 2023, we had approximately 26.730.7 million shares remaining under the current authorization. The timing and amounts of additional shares repurchased, if any, will be determined based on our evaluation of market conditions and other factors, including any additional authorizations approved by our shareholders. For additional information related to our share repurchase authorizations, see Note 10 to the Consolidated Financial Statements.
CURRENT BUSINESS OUTLOOK
WeIn the near-term, we expect typical improvementsseasonal trends to drive modest improvement in summer seasonal demand will extend market strength for our products as the global economy continues to navigate geopolitical uncertainty and volatile costs for energy and feedstocks. Outside of China, we anticipate benefits from continueddemand. Increased summer demand for consumer packaging, improving volumestransportation fuels should provide support for automotive polymer compounds, seasonal demand for durable goods usedoxyfuels and refining margins. Delays in buildingthe start of North American polyethylene capacity additions across the industry are expected to reduce new market supply and construction markets as well as strong markets for our oxyfuels products. We forecast a favorable outlook for our refining segment as we work toward exiting the business by the end of next year. Insupport polyethylene margins. During the second quarter, margins are likely to improve as the prices for our products catch up with increased feedstock and energy costs. Additionally, we expect reductions into operate our I&D segment assets at 80% and modestly increase our O&P-Americas and O&P-EAI operating rates driven by maintenance downtimeto approximately 85%. We remain watchful for the effects of changes in Europeglobal monetary policies and unsustainable production economicsimproving economic conditions in China on petrochemical markets during the second half of 2023.
In March 2023, we launched a new strategy which is focused on growing sustainable value and encompasses three key elements which include growing and upgrading our core businesses, building a profitable circular and low carbon solutions business and stepping up performance and culture.
CRITICAL ACCOUNTING POLICIES
Goodwill Impairment—We evaluate the recoverability of the carrying value of goodwill annually or more frequently if events or changes in circumstances indicate that the carrying amount of the goodwill of a reporting unit may not be fully recoverable.
Effective January 1, 2023, our Catalloy and polybutene-1 products were moved from our APS segment and reintegrated into our O&P-Americas and O&P-EAI segments. When moved, a portion of the APS reporting unit’s goodwill was allocated to tightenthe O&P-Americas and O&P-EAI segments based on the product’s relative fair values compared to the reportable segment.
In the first quarter of 2023, we evaluated goodwill for impairment immediately before and after the transfer of these products. Our evaluation resulted in the recognition of a non-cash goodwill impairment of $252 million recognized in our APS segment. Refer to Note 12 to our Consolidated Financial Statements.
Fair values were determined utilizing a discounted cash flow method under the income approach and assumptions including management’s view on long-term growth rates in our industry, discount rates and other assumptions based on a market supply overparticipant perspective, which are inherently subjective. Discount rates utilized in our cash flow model were based on a variety of factors, including market and economic conditions, the coming months.risk and nature of the cash flows and the rate of return required by market participants. We continue monitoring risks on supply chainsbelieve our fair value estimates of projected financial information are reasonable and inflation.consistent with those used in our planning, capital investment and business performance reviews. However, actual results may differ from these projections.
An estimate of the sensitivity to net income resulting from impairment calculations is not practicable, given the numerous assumptions, including pricing, volumes and discount rates, which could materially affect our estimates. That is, unfavorable adjustments to some of the above listed assumptions may be offset by favorable adjustments in other assumptions.


39

Table of Contents
ACCOUNTING AND REPORTING CHANGES
For a discussion of the potential impact of new accounting pronouncements on our Consolidated Financial Statements, see Note 2 to the Consolidated Financial Statements.







3840

Table of Contents
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934.1934 (the “Exchange Act”). You can identify our forward-looking statements by the words “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions.
We based forward-looking statements on our current expectations, estimates and projections of our business and the industries in which we operate. We caution you that these statements are not guarantees of future performance. They involve assumptions about future events that, while made in good faith, may prove to be incorrect, and involve risks and uncertainties we cannot predict. Our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including the following: 
the cost of raw materials represents a substantial portion of our operating expenses, and energy costs generally follow price trends of crude oil, natural gas liquids and/or natural gas; price volatility can significantly affect our results of operations and we may be unable to pass raw material and energy cost increases on to our customers due to the significant competition that we face, the commodity nature of our products and the time required to implement pricing changes;
our operations in the United States (“U.S.”) have benefited from low-cost natural gas and natural gas liquids; decreased availability of these materials (for example, from their export or regulations impacting hydraulic fracturing in the U.S.) could reduce the current benefits we receive;
if crude oil prices fall materially, or remainare low relative to U.S. natural gas prices, we wouldcould see less benefit from low-cost natural gas and natural gas liquids and it could have a negative effect on our results of operations;
industry production capacities and operating rates may lead to periods of oversupply and low profitability;
we may face unplanned operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failures, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental incidents) at any of our facilities, which would negatively impact our operating results; for example, because the Houston refinery is our only refining operation, we would not have the ability to increase production elsewhere to mitigate the impact of any outage at that facility;
changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate could increase our costs, restrict our operations and reduce our operating results;
our ability to execute our organic growth plans may be negatively affected by our ability to complete projects on time and on budget;
our ability to acquire newor dispose of product lines or businesses could disrupt our business and assetsharm our financial condition;
our ability to successfully implement initiatives identified pursuant to our value enhancement program and integrate those operations into our existing operations and make cost-saving changes in operations;generate anticipated earnings;
uncertainties associated with worldwide economies could create reductions in demand and pricing, as well as increased counterparty risks, which could reduce liquidity or cause financial losses resulting from counterparty default;
uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impactsCOVID-19 pandemic due to local or regional spread of the pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession;virus;
the negative outcome of any legal, tax and environmental proceedings or changes in laws or regulations regarding legal, tax and environmental matters may increase our costs, reduce demand for our products, or otherwise limit our ability to achieve savings under current regulations;


3941

Table of Contents
any loss or non-renewal of favorable tax treatment under tax agreements or tax treaties, or changes in tax laws, regulations or treaties, may substantially increase our tax liabilities;
we may be required to reduce production or idle certain facilities because of the cyclical and volatile nature of the supply-demand balance in the chemical and refining industries, which would negatively affect our operating results;
we rely on continuing technological innovation, and an inability to protect our technology, or others’ technological developments could negatively impact our competitive position;
we may be unable to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers, and reduce our emissions;
we may be unable to shut down the Houston refinery within the expected timeframe or incur additional charges or expenses;
we have significant international operations, and fluctuations in exchange rates, valuations of currencies and our possible inability to access cash from operations in certain jurisdictions on a tax-efficient basis, if at all, could negatively affect our liquidity and our results of operations;
we are subject to the risks of doing business at a global level, including wars, terrorist activities, political and economic instability and disruptions and changes in governmental policies, which could cause increased expenses, decreased demand or prices for our products and/or disruptions in operations, all of which could reduce our operating results;
if we are unable to achieve our emission reduction, circularity, or other sustainability targets, it could result in reputational harm, changing investor sentiment regarding investment in our stock or a negative impact on our access to and cost of capital;
if we are unable to comply with the terms of our credit facilities, indebtedness and other financing arrangements, those obligations could be accelerated, which we may not be able to repay; and
we may be unable to incur additional indebtedness or obtain financing on terms that we deem acceptable, including for refinancing of our current obligations; higher interest rates and costs of financing would increase our expenses.
Any of these factors, or a combination of these factors, could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements. Our management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels.
All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and any other cautionary statements that may accompany such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements.
Item 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market and regulatory risks is described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2021.2022. Our exposure to such risks has not changed materially in the three months ended March 31, 2022.2023.


42

Table of Contents
Item 4.    CONTROLS AND PROCEDURES
As of March 31, 2022,2023, with the participation of our management, our Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial and accounting officer) carried out an evaluation, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Act”), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Act). Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2022.2023.
There have been no changes in our internal controls over financial reporting, as defined in Rule 13a-15(f) of the Act, in the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.






4043

Table of Contents
PART II. OTHER INFORMATION
Item 1.    LEGAL PROCEEDINGS
Information regarding our litigation and legal proceedings can be found in Note 9 to the Consolidated Financial Statements, which is incorporated into this Item 1 by reference.
In September 2013, U.S. Environmental Protection Agency (“EPA”) Region V issuedFebruary 2020, the State of Texas filed suit against Houston Refining, LP, a Noticesubsidiary of LyondellBasell, in Travis County District Court seeking civil penalties and Findinginjunctive relief for violations of Violation alleging violations at our Morris, Illinois facilitythe Texas Clean Air Act related to flaring activity. The Notice generally alleges failuresseveral emission events. In July 2020, Harris County, Texas petitioned to monitor steam usageintervene in the lawsuit and improper flare operations. In the FallState added additional claims to its petition relating to self-reported deviations of 2020, EPA referred the matter to the U.S. Department of Justice (“DOJ”) and EPA Headquarters for civil judicial enforcement. In March 2022, EPA and DOJ made a revised penalty demand of $324,000.Houston Refining’s air operating permit. We are currently engaged in settlement discussions with the State to finalize the termsresolve this matter, and reasonably believe resolution of this matter will result in a payment of a settlement agreement.penalty in excess of $300,000.
On July 27, 2021, approximately 160,000 pounds of liquid process material containing primarily acetic acid was released from a reactor at the La Porte acetic acid unit. In October 2021, the Texas Commission on Environmental Quality (“TCEQ”) issued a Notice of Enforcement for the incident. In November 2021, the State of Texas filed a petition on behalf of the TCEQ seeking injunctive relief and civil penalties for unauthorized air pollution and regulatory nuisance related to the incident. As of April 17, 2023, we have agreed in principle with the State of Texas to resolve this matter with a civil penalty of $1.1 million; an agreed final judgment is being prepared to be lodged for public comment and entered by the court.

Additional information about our environmental proceedings can be found in Part I, Item 3 of our 20212022 Annual Report on Form 10-K, which is incorporated into this Item 1 by reference.
Item 1A.    RISK FACTORS
There have been no material changes to the risk factors associated with our business previously disclosed in “Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2021.2022.
Item 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 
Issuer Purchases of Equity Securities Issuer Purchases of Equity Securities Issuer Purchases of Equity Securities
PeriodPeriodTotal Number
of Shares
Purchased
Average Price
Paid per Share
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Authorizations
Maximum Number
of Shares That May Yet
Be Purchased Under the
Plans or Authorizations
PeriodTotal Number
of Shares
Purchased
Average Price
Paid per Share
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Authorizations
Maximum Number
of Shares That May Yet
Be Purchased Under the
Plans or Authorizations
January 1 - January 31January 1 - January 311,041,397 $96.24 1,041,397 27,799,832 January 1 - January 31— $— — 31,740,731 
February 1 - February 28February 1 - February 28791,081 $99.88 791,081 27,008,751 February 1 - February 28— $— — 31,740,731 
March 1 - March 31March 1 - March 31240,900 $96.83 240,900 26,767,851 March 1 - March 31846,500 $87.28 846,500 30,894,231 
TotalTotal2,073,378 $97.70 2,073,378 26,767,851 Total846,500 $87.28 846,500 30,894,231 
On May 28, 2021,27, 2022, our shareholders approved a share repurchase authorization of up to 34,004,56334,026,947 shares of our ordinary shares, through November 28, 2022,27, 2023, which superseded any prior repurchase authorizations. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased.
Item 4.    MINE SAFETY DISCLOSURES
Not applicable.
4144

Table of Contents
Item 6.     EXHIBITS
Exhibit NumberDescription
31.1*
31.2*
32*
101.INS*XBRL Instance Document–The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*XBRL Schema Document
101.CAL*XBRL Calculation Linkbase Document
101.DEF*XBRL Definition Linkbase Document
101.LAB*XBRL Labels Linkbase Document
101.PRE*XBRL Presentation Linkbase Document
104*Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


* Filed herewith


4245

Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

LYONDELLBASELL INDUSTRIES N.V.
Date:April 29, 202228, 2023
/s/ Chukwuemeka A. Oyolu
Chukwuemeka A. Oyolu
Senior Vice President,
Chief Accounting Officer and Investor Relations
(Principal Accounting Officer)







4346