LYB - Earnings call transcript Q2 2024 | LyondellBasell Industries N.V.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the LyondellBasell Teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes. [Operator Instructions] I would now like to turn the conference over to Mr. David Kinney, Head of Investor Relations. Sir, you may begin.

David Kinney

welcome, today's and operator, you, everyone, call. to Thank

www.lyondellbasell.com/investorrelations. I to accompanies point we website call begin that like discussion, the at our on presentation Before out would a is available and the slide

to reference statements Today, we will statements risk We to forward-looking useful discussing significant alternative our are measures. investors. are based and financial the the assumptions to to and the measures We while non-GAAP the uncertainty. business statements believe encourage some more results learn that made excluding presentation could be subject measures, actual factors making slides items. on earnings forward-looking forward-looking be upon Nonetheless, and reasonable are in this differ you our our are to the regulatory the and per our share, on by which call business financial filings, will reviewing lead non-GAAP our to results using and also such regard in website. Comments cautionary underlying EBITDA Relations statements as identified available results Investor about

documents the Additional measures, disclosures, website other non-GAAP of our with together GAAP reconciliations including measures provide to release results financial discussion. financial and business our earnings on Investor

of Vice and Polymer Michael our Joining be Officer; of CFO, LyondellBasell's our Advanced Intermediates Peter and McMurray; of EVP Polyolefins Rhenman, Olefins President Executive EVP Kim Solutions. Torkel Chief today's our Global our and Refining; Foley, Ledet, Executive Vanacker, will call Aaron and Derivatives;

well our as During today's on as call we updates results on will strategy. quarter focus long-term second

I our over Peter. the now turn outlook. We like call discuss will With that dynamics also would being said, market near-term current and to to

Peter Z. Vanacker

second did excellent on market whilst today joining We you. again, job navigating of of our as laser-focused people all you an to welcome and Yet Dave, being execution we strategy. our discuss results. you, our us challenging the conditions quarter Thank appreciate

performance our core success. discuss and of part X excellence operational our in LYB history safety Slide performance. leadership continued safety with begin being with has a in of Let's a

more or incidents, consistently importantly, significant have goal results. safely X delivered towards we our operate we industry-leading But to injuries made improvements accidents. safety with XXXX, to back Going have day each

rate is and contractors June total incident recordable LYB's year-to-date for employees X.XX.

comparison, it our than Xx For Getting operational the is X.XX, XXXX, higher well-being right do. foundational was financial than but Safety what ensures excellence rate to also we benefits returns. of incident in today. and workforce, performance our more our

to further Our excited to improvements. team on outstanding for to deliver point, as has progress excellent our strategy to committed well demonstrated actions this we focus Today, and our I'm remain results long-term discuss as the LYB. resilient reach

X as review quarter. Please briefly turn we the Slide to

business quarter, XX% volumes for improved North underlying nearly demand polyolefins energy costs the operations. results remain to quarter low. over and first while by Second increased improve, from driven continues feedstock American by our

strategy. polyolefins LPG intermediates and our derivatives, LYB's record in sales flexibility generation share benefits Core EBITDA $X.X within quarterly execution our oxyfuels for of cash provided volumes. impressive results billion. from PO/TBA expanded due to an the activities. Earnings support improved of feedstocks olefins the European $X.X increase our to were per Our advantaged operating from LYB generated in are utilization strong our capacity with of billion disciplined and seen cash clearly $X.XX

Slide is on long-term that the focus strategy strategic Let's turn our creation. growth and to X driving value X-pillar and review

a that by profitable a $X Last took we XXXX. X/X quarter on fourth add clear core, As are growing we that define criteria are to core businesses and business. portfolio. upgrading we work incremental solutions building of circular to making to describe talk in very goal we nearly about described look target and into billion grow to XXXX, during earnings, will how and businesses. during with underway unlocked are When good we EBITDA progress our we our we low-carbon deeper normalized Today, upgrade we core are our the the quarter, our use about

Slide X. to Moving

these Let's criteria. review

positions leading and hard on leverages working to end up advantaged is circular on renewable and access that deliver well capital build are and portfolio focused a We to markets growing feedstocks. our of returns that above market cost attractive

that once we executed see will a we company. and profitable, transformation be focused more will You have this streamlined much

cost or on are decisions attractive in disciplined well Our investing grounded our above pursue organic returns commitment growth by M&A to capital. our of

Middle as global low-carbon leveraging making great East. covered feedstocks access and last advantaged we profitable building to quarter, circular to business. and in America And and found North LYB's progress positions solutions typically are in technology our finally, increase We we're market the a

as feedstocks advantaged and Middle America defined the North have we low-cost NGLs East. in Historically,

expanding our grow renewable positions we for feedstocks. As favorable include this CLCS and are to business, definition we circular

stake a of the lot us, joint in portfolio and you busy upgrade and of business implemented of parallel focus with to was our we the of EO&D venture. again have May NATPET in sale grow our a for speed. with completion acquisition the and actions As know, the our month great

a assets of strategic of announced that our also success. we will future European review for footprint our reposition Importantly, some sustainable

LYB goals and let Slide for highlight On me upgrading by our growing X, core simultaneously reshaping our businesses.

investments PO/TBA capacity We our are for of example, Saudi adding Arabia. in and formation value joint venture our in, through the growth NATPET

opportunities that also accretive be LYB. expect are evaluating find continuously projects will We to and for more

onetime growth improved not a also incremental margins. cost-cutting enhancement production delivering through and program LYB's value VEP Our initiative. is capacity is

VEP focused way in details LYB's progress new more moments. our our on some unlocking working, in on embedded value and is will few a Michael VEP of Our share is culture. becoming

were we divesting motivation refinery, the is capital-intensive the of than EBITDA delivered no Our the asset that by portfolio the example profitability. expand Houston refinery only end quarter the noncore cases, exiting average by periods right illustrated One actually percentage shut brief historically on of businesses. will first margin upgrading a by side X. about has Slide is LYB's for or later points. down X of upgrades some the After of In accomplished XXXX,

sustainable growth. provide not not business for Simply owners. The LYB we future. did best position European Derivatives a position review strategic put, will assets with the and were not for Oxide a our Ethylene and of our our did criteria leading divested Our footprint fit

a moves stronger, All business more LYB. these building for aim and more portfolio of profitable focused towards

into review Let's European roll strategic X. on our Slide

undertaking position We to for LYB's markets. this footprint regional review future are

Our reshape long-term in alignment for with lasting our portfolio a business goal European success. our is to for remains strategy LYB. market core Europe

in our Our are all X that the LYB's for point, assets left business. the on top meet this on analysis determines listed options the table. do criteria current At not configuration core their

profitable ethylene our could assets with another like well fit a these and oxide Just strategic business, and future owner. derivatives have

may a refinery, rationalization Houston the the like we possibility, as sites. Divestiture our group best determine a assets that separately of or for some is option is or

While on on it the outcomes, portfolio global is relatively limited. too the impact early is company's to speculate the

chart, from the review glean subject our assets can represent these XX% you only of to about global capacity As lines. the product for

our LYB's first LYB European have assets segment presence. In maintain In I&D, PO/TBA will our And circular will near solution in core utilize European set. and presence investing a a strong Germany, technology. build Germany. world-leading and are to renewable our technology we to continue Cologne Italy strong

reliable operations continue This the ongoing efficient We our all sites. importantly, stakeholders employees, and safe, to most who high includes demonstrate at potential despite to relevant buyers governance, will the uncertainty. and productive commitment with partners, continue local our engagement business impacted

panel to stakeholders. Our aim is for swiftly value move LYB to maximize

discuss let financial our With me Michael to turn more over call that, to in results detail. the

Michael McMurray

everyone. good and Peter, morning, you, Thank .

X, our me generation. Slide to cash turn resilient start Please let and by discussing

operating Over $X.X of past from billion generated the LyondellBasell year, cash activities.

Our team months. impressive XX% during the XX at converted last into EBITDA cash an rate cash conversion

of the balance almost our $X.X was to return a free target. we of the billion. repurchases. result, $X.X At line our share our quarter, cash and dividends billion in $X.X nearly able XX% were cash represents flow, end As with shareholders of through second billion to long-term This

and Let's details quarter continue of capital our XX review second with allocation. Slide the

of Peter As an $X.X billion impressive operating we from generated cash mentioned, activities.

returned per track we secure, $XXX through while $X.XX we $XXX to continuing million investment. of share, our increased dividend of During record competitive quarterly repurchases providing million the by and dividend funding dividends X% for shareholders. May, our growing share and In capital our a quarter,

disciplined balanced strategy. as capital part committed our to is of team Our allocation and long-term

the $X Within approximately billion liquidity. a of second million our During while the increasing ethylene with divested extended the credit facility joint of We derivatives maturity NATPET polypropylene integrated Arabia. available $XXX billion. invested revolving oxide we further few approximately facility quarter, LYB to acquire of XXXX, and Saudi quarter size million. a for the successfully to by the In liquidity $X.XX finished amended July, by share business we in $XXX million of $XXX to our XX% venture strengthening the and weeks,

integral Slide Let's a a our XX. our is long-term brief progress enhancement program on highly VEP The continue on strategy. and update component of with successful value

VEP will the XXXX. are our million confident EBITDA approximately in that in to estimate We contribute $XXX

year's after less out rapidly Our first we To more launching this on segment years team value program. is business this have contributions provide progress, and by category. delivering broken X than detail

As our the with anticipate of company benefit and margins. of rates. $XXX of variable value. driven incremental In and the from approximately O&P-Americas, largest profitable $XXX contribution you benefit increased we also by across $XX about might XXXX, million improving most is from million increased million We segment expect, generating mix about volume, segment, the improved higher anticipate reliability product

costs position. $XX to enhancement value Overall, generation, identified fixed estimate approximately by the leading program on lower million increased year. improve and results fixed has primarily value will functions across this our the corporate benefit manufacturing opportunities focused program While cost also that we is our our

new unlocking culture. is LYB's our as program VEP Peter As mentioned, is embedded and becoming working value process of that an in evergreen way a

almost to the our XX, segments. than EBITDA volumes, of a most portfolio summer to provide Slide businesses. our quarter. each I overview quarter, coupled Let's higher increased during improved the margins with production $X.X modestly Seasonal turn prior business higher across demand, of delivered second billion of from asset of led base, of and will our the results LYB's XX% brief

of Gulf early impacted some our ahead U.S. operations proactively of Hurricane down storm. Beryl across the our assets Coast. In July, LYB the shut

potential the to conditions. our assets prudent approach community reduces Our for damage surrounding adverse during and the

property workplace O&P-Americas not we and As a material. that EBITDA third estimate experience segment. result, approximately injuries by million quarter downtime approximately in we not storm-related did Nonetheless, XX% impact was our with damage will $XX any

XXXX activity we impacts guidance capital, relatively to planned maintenance remainder operating meet of for updated focus appendix on modeling and a With modest slide market for In the maintenance the to to metrics. continue deck, other provide the we planned our have the demand. align year. sharp levels We rates financial working of

intermediates quarter, third olefins and we polyolefin XX% and assets. assets of for XX% for the polyolefin derivative During expect and for our olefins assets, XX% North American rates and our operating European

With that, to Kim. I will Kim? over turn the call

Kimberly Foley

Michael. Thank you,

segment the Polyolefins and XX on the begin Americas Olefins discussions Slide segment. the with Let's of performance

production LYB gas that supported Increased During the remain EBITDA million. while ethane second integrated to margins polyethylene and polyethylene O&P-Americas quarter, higher ethylene were pleased and costs volumes higher low. natural We modestly and see led to $XXX was margins. prices were by

is polyolefins polyethylene nearly American in both producer from North decades. 'XX. polyethylene strengthening absorbing built in America the domestic Strong for over XX% well relationships is half with expansions in export is June XXXX, by pull Demand positioned first over recent the and strong LYB up markets as capacity the year-to-date with largest demand of customer sales North region. industry third

North provides of In energy American seasonal oil-based oil of expected an favorable backdrop polyolefin continued the prices, integrated Low producers the parts to other to oil North benefiting a the third ratio high anticipate are in feedstock Amid demand production advantage costs we quarter, relative margins. to relatively world. to strength. persist, American gas and

with Despite remain July, additional Gulf Coast U.S. disruptions U.S. Nonetheless, the from over well supplied. coming is for olefins hurricane markets young, polyolefins potential months. in season still the early Hurricane disruptions Beryl the and

rates North will growth, export of have the quarter, and remain American capacity decade XX% third operating demand, domestic our targeting After on During additions polyolefins utilization. market to slowed aligning down. a serve we focused unprecedented

of with new a and year Please of over past turn leading capacity lower triggered for or markets export for wave advantage online additions world-scale for and rates to North abundant changing well every operating and decade. supplied supply. the oil X gas coming and reduced Slide polyethylene take polyolefins advent nearly the to the shale-based review low-cost and and to olefins sometimes XX polypropylene NGL In margins. feedstocks, plants XXXXs, X American the became domestic the we outlook as production of our early

constrained are of North Over served tepid new little by is capacity America. returning well first remain and no America the volumes horizon, business. sales long-term in Polypropylene volumes but double-digit will years Demand as rates higher this trends, After Latin in online on improving, come for demand meaningful local tightening demand the core goods. durable during we half next LyondellBasell's to supply. await American growth few polyethylene very also for and North supply the and the of growing utilization increasingly at growth rebound bode inevitable X years, demand North in balances growth, With year. polyolefins rates America are supply

as the polyethylene $XX with Please Asia our ethylene integrated of second LYB's XX turn and LPGs, of Slide as production such in European In Polyolefins of advantaged we feedstocks results utilization review expanded EBITDA from to Europe, advantaged segment. margins cost and XX% the feedstocks. International LYB's came Olefins increased quarter, of the million. Approximately resulting

imports, higher but polymers. cracker local Sea and prices coproducts logistic European supported Red costs benefiting subsided constrain demand the significant largely European quarter modest higher olefins for amidst have improvement Additionally, margins challenges shipping for producers. seasonal during

and Looking planned the one the maintenance steady crackers ahead, olefins demand we continue German Europe. summer will anticipate of begin at that in into fourth through September, quarter. polyolefins we will our In

As XX% operating targeting are result, quarter. a rates we the approximately for third

of of Saudi part propane businesses, Peter technology. of May. the with Saudi partner, joint end core strategic venture assets. operates our Arabian completed The cost-advantaged And May, joint and net venture review significantly announced to are European XX% feedstock of some and in the of tons at share our using the LYB's Together materials polypropylene evaluating new currently concessions of As joint strategy integrated of in by the the grow we polyolefins capacity we XXX,XXX raw upgrade our leveraging acquisition local a pet ferrous opportunities Arabia. polypropylene Alujain, venture also and olefins we our grow to discussed as

to evaluate future options position working Our in the region. LYB our for order team diligently and is success

review of XX turn let's segment. the results Now Slide the Refining to and

cracks, offset $XX lower cracks improvements offset gasoline second was first crack million. slow quarter to following Maya modest with a downtime by Margins season. the by distillate driving was partially EBITDA quarter than decreased by quarter driven slight production spreads. Second the Higher more lower indicating demand, in start

benefited remained supply. ample program market second high, hedging Our Industry quarter rates leading operating relatively to results.

operating to In we quarter. high support approximately spreads and expect gasoline continued the summer rates to crack capacity intend the refiners. at third stable term, XX% near operate for in demand of We

of shut the of operation no of Looking and later these remain ahead, the XXXX. we committed assets safe until we than to the reliable end down, first quarter

third Additional ramp-down quarter be will regarding our during update. our details provided

and Our support site making progress team solution in is growth evaluating to projects good transform the in of low-carbon our strategy. circular

turn the With over to will that, Aaron. I call

Aaron Ledet

Kim. to Thank increased $XXX Derivatives driven oxyfuels. quarter, production demand second record and segment. the XX as we delivered Intermediates for EBITDA you, turn oxyfuels by In million seasonal was the above which margins Please Slide summer well look quarter. as quarterly levels. segment production We historical at octane to PO/TBA demand increasing the asset, keeping with strong at robust benchmark during our by volumes the is rates from newest underway, margins driving operated remain close season and Oxyfuels

driven goods against for industry production as and outages were improved improved oxide the Chemicals to impacts inflation. a volumes high steady modest in margins due interest margins by Propylene remained assets. of rates acetyls, from higher and LYB's backdrop for demand derivatives durable of Intermediate

materials and As quarter. butane Low of line at for the should one our through provide steady with expect later third into third will margins season. through cost oxyfuels PO/TBA seasonal profitability. assets will and maintenance we continue continue driving our octane for Bayport to raw move of we quarter the continued in remainder In benefit the support guidance, begin fourth planned the the for oxyfuels demand premiums quarter,

I&D continue and expect during production the assets demand match rates XX% operate at to our approximately with market quarter. will of our We to

to we quarter As gain results. sale oxide the identified of Michael as book is mentioned ethylene during sale earlier, which derivatives the We second our quarter. for completed businesses second our INEOS on in a $XXX million an of million $XXX reflected item the recorded

and as grow to I&D as we of our Our POSM joint the segment European in the ongoing work part strategic Netherlands venture Maasvlakte upgrade evaluate review. continues our

local our We with . the and in our working workforce. Covestro, closely JV, stakeholders partner are

I will With to over the that, turn call Torkel.

Torkel Rhenman

review Slide for the you, as Please we Aaron. quarter Solutions turn second segment. the Thank to XX Polymer results Advanced

million. increased transformation and seasonal improvements automotive work was production decrease quarter most as pricing. in modestly Second to $XX our APS EBITDA Europe a slight across led Margins businesses Lower volumes. higher led to in

anticipate Looking our offer modest on third for from focus OEMs improvement the in shorter our year expect and the more ahead, improvement. strategic We initiatives our near-term growth driven qualification But volumes seasonal we pipeline. remainder by quarter. masterbatch cycles at downtime and in through of typical business the headwinds opportunities has restoring automotive

focused rate to our We're investing goals our growth deliver funnel with expanding team value our and for on mindset team in our core the with win continuously Our the growth on and business. is long-term increasing a customers. APS

With that, I Peter. to will return the call back

Peter Z. Vanacker

Please Torkel. Seward. turn the Slide you, results segment Jim discuss of and the for behalf will Technology on Thank XX, to I

quarter of milestones catalyst results. associated Second expect catalyst revenue, reflected moderating revenue strong volumes. third and that million with increase, In after we will normalizing first $XX licensing quarter EBITDA quarter, with coupled licensing the high

result, first quarter estimate will third results. segment be that similar Technology to a As quarter results we

in the summarize higher Slide market our and XX. quarter long-term and results me conditions. our LYB second production second reflect strategy modest let Now with volumes quarter, seasonal outlook improvements

production. our for expect assets Middle in with towards low feedstocks cost markets. and Looking results relative of a competitive the provide year, operating the well a we half a U.S. where regions global durable half slight slow the and second LYB's continue to are over energy in East improvement first to recovery oil-based in positioned, advantage

allocation capital our our and shareholders. strategy returns in to disciplined remains team high Our delivering

and succeed market modestly as to is great equipped shape sheet well we balance conditions in improve. Our are

to XXXX. track is million approximately Our in contribute EBITDA $XXX value to enhancement program on

enthusiasm the so forward to we stepping on look results with next update are a up as more dive our on we deeper providing our from culture and and at thrilled are far how progress VEP substantive LYB. performance We and quarter our

At leading and executing on this last our market technologies long-term Capital strategy grow are our Through our outlined we businesses. our Markets and strategy. positions, we core upgrade year, footprint to Day global

strategy reshape competitive improve LYB, create portfolio profitability will advantages. our but only business will also sustainable and not Our grow to

we Kim XXXX, see improving American earlier, towards returning highlighted polyolefin historical long-term growth in As rates. demand North

in I bodes improvements take our well in our coming look ahead, as value, actions America for lead sustainable over proud to am operating LYB company limited years. high-performing North we team position As the continued and margins associated capacity rates unlock for and to decisive additions success. we future reshape

With to take that, pleased we're questions. your now

Operator

from [Operator line Instructions] of comes Byrne the of Bank with Our first Steve question America.

Steve Byrne

You're the facility to refinery I as other end considered of shutter and becoming the such quarter, for plastic first options you planning some center. that at that have the know recycling a

hydrogen you bit billion be is, $X My think offered potentially which type circular X also -- the hub. in a EBITDA products target of are there was expect as from for on that? a I those you of generating million any provide if administration ton, you the by as can of, the an transparency contingent change? end on plans to What scuttled could question I guess, of it little you funding DOE, the And decade. you do get have the

Peter Z. Vanacker

my your side. welcome Steve, and thank warm much from you question, very for

to have with down good our teams QX run multiple mean refinery, again refinery of In projects we it's before. have end remarks at the the times, very the couple making of latest regards to that the to alluded prepared and a XXXX. latest our progress at I at announced are the we that meantime, On in that plan the we

our second in One investment of is MoReTec. them

next hydro the our is The plan Cologne Houston hub, bring first Wesseling, the in to treaters. remember, to the second steam we one up to the leverage refinery one, crackers in on

oil modified then that that example, number those plastic our hydro for in to would pipelines we have Channelview. treaters, And steam supplied MoReTec oil so produced be upgrade We two. in, being crackers through plastic can the is

-- year. So a will that's I hope on proceeding that well. that a first one first milestone that still decision this decision is take project we

also produce project second used Houston. hydrocarbons not the cooking at We produced to are wastes. is refinery in these as leverage opportunities we hydrocarbon, plastic renewable so but refinery a upon around renewable those The other type hydrocarbons, to see the out feedstock of eventually the hydrocarbons oil have waste in equipment or our

we go same And then would and hydrocarbons again, our to them. to same we the pipelines the those then upon that, crackers crack would would principle, Channelview and based polymerize through them

our part, part renewable MoReTec elements which have one, renew we Circulen is the hydrocarbons. other the the and upon recycling So done the investment based advanced based family on upon X of

So we had all that past. is in the proceeding well to as alluded

Michael McMurray

are to say before We without question, to that the had move the around Steve, something. lot a hydrogen a the probably questions next this projects lot from it's then subsidies. would received our of clarify Michael. I challenged morning of we online. operating I on wanted And rates posted we that materials

So I few clarify can for let points me you a if see all.

for both and In we as the second Intermediates XX% April, segment rates quarter and XX% O&P-EAI for operating and to Derivatives. O&P-Americas for guided

for largely for guidance. were were second quarter for website, rates quarter results that the -- the Our with and business on posted O&P-EAI. In O&P-Americas disclosed rates cracker cracker line XX% XX% discussion operating we in our second

both crackers in olefins. the rates to at quarter higher second during for our We favorable operated regions economics capture

quarter plants for operated match lower polymers. market second polymer to at demand Our rates

Kim Aaron As we third XX% at will I&D segment at and operate at XX%. the quarter, mentioned, and the O&P-Americas O&P-EAI during XX%,

during EAI, reduce the the that Beryl cracker about third downtime turnaround we investing third Hurricane during points some for a took proactively are starting our we O&P-Americas, X quarter. by larger In In rates percentage on will quarter.

continue expect to ethylene, other will higher than the attractive propylene in our We capture coproducts. to and regions crackers for operate margins at rates both segment

we our during in Bayport, the on In plants are a Texas one performing quarter. third of turnaround PO/TBA I&D, older

oxide our to for we the venture at are and styrene region. some taking in Netherlands In joint in the downtime propylene addition, demand balance the POSM market low

out on to questions clarification. IR for reach the further to have rates, feel please team free you any If further

Operator

of comes with from TPH. Matthew Blair line next Our the question

Matthew Blair

had PO on side. the some I questions

new give at approximate the how million benefits in the of on plant Channelview. to target of rate on the in mentioned basis? $XXX guidance contribution $XXX to you Could annual stacks So million the your up some an run us EBITDA least PO/TBA you the The quarter mid-cycle or also are end release And deck talk which picking think then on outlook markets about you PO the Can for improvements amount up? finally, mentioned new of you this PO. in of I some back talk the can a about here? there's half fair China capacity volume supply-demand year.

Peter Z. Vanacker

and On Thank to as welcome you, Matthew, well you. propylene oxide.

you in the pleased, PO/TBA close, facility to facility, very that the If last up, to year during of we am we say started I mean, have XX% utilization. about new talk QX I capacity successfully mean, terms that I run

think made huge time a of that's short in a pretty years to to that a of period such of be facility based because I a run relatively have the that's up. success ramping investment such XX capacity upon in my able to industry, major we that's close much nameplate

to give So Aaron over with the that, and supply on will I little also bit market background a to demand. hand more

Aaron Ledet

goes as the I say durable most polyurethane into Thank roughly Peter, Yes. as and look at you demand, you know, into going X/X of would with thank many PO for you, that applications of question. overall we chain. the it

impact the half have rate be second We rebound durables, first will optimistic We the from year. it year. from of the either least seen not an in cuts have noticeable on durables us, this part to any the of that We at immediate. don't rebound although won't they over remain rebound expect

comes X/X remains we're other than PO what derivatives The through for And might and little -- anticipating and BDO. somewhat glycols we demand also bit were glycols better be BDO while a modest. really

is demand generally now. PO So speaking, modest right relatively

Peter Z. Vanacker

add, want just mean, do big I to the on picture. I

January Now we've well. the And to And the higher capacities the X, technology, Commission, NDRC costly. are to technology chlorohydrin-based approximately in actually, most still look a emissions, the National total China technology ban XXXX, older, I to which is would is XXXX. as end produce at oxide. world, the say, Reform in different propylene the that Development half of PO capacities announced on upon on that more COX of a of by past chlorohydrin the is alluded the has based One and needs so-called

of propylene about we technology. oxide So chlorohydrin estimate is XX% China

is in So going place be to partially that, that to compared offset, if if probably fully propylene in going you China look that will taken see -- been is the at oxide mean these in to the that and investments China. new offset, capacity banned rationalizations you not additional have I

Operator

Mitsch Our question next comes Fermium Research. line the of from Frank with

Frank Mitsch

et had might other the sheet solid flow markets And scope generation for M&A, into things, Curious the balance cash for cetera. here cash your there of not side the the quarter. given be outlook of positive I you on in question a the a flow buyback balance what is and your here, the dipped toes back second year there. whether or

generally, So question. cash of the use just

Peter Z. Vanacker

very capital QX yield at total I'm that pleased, say was I X%. course, Of to the return mean,

you So something I of to think that's very want Frank? on attractive. add the Michael, question

Michael McMurray

Yes.

And the but billion, $X.X XX% Frank. XX%. free XX is Peter for cash conversion, well we and as which delivering just -- generated and in I is a into And and thanks -- well mean, ahead kind as the EBITDA some which itself, did and dividend grew things. the for as about strong we the converted our question, alluded, year buybacks we of last -- we our of quarter. just thinking In cash. a reputation have you So company know of that a flow months, couple

buybacks be the I we mix, As probably continue think half, in second to to the look will somewhat modestly.

fully in XX% long-term guidance But fully perspective, to of the returning So we're place, still investors our cautious. is cash being from free it. to little committed a a bit and flow we're

Operator

question line Mizuho the from Securities. Roberts comes Our John of with next

John Ezekiel Roberts

different operational I plastics delays be some here. are than has circular Lyondell. they've to that plastics -- would a all initial there know Eastman initiatives it problems seem would circular adoptions customer got in program that think, very and But I would common,

frame time from targets? chemical is your about any for concerns actually So is you X.X giving XXXX short years pretty now that investments. a

Peter Z. Vanacker

John, you welcome for question. and well, your thank as

difficult are plants, compare is say in one to technology, can our we technologies mean, a I where also R&D we and course, What running our other. up Ferrara in -- Italy. on I Of unit which MoReTec each to have our people have

a is that scale X It's mean mean plans, a an it's not I plant. small but this I about not plant. I mean scale not stores, the either. is So lab high industrial

we're So the -- on that. with ground starting very the mean has on been good And prepare, mean, investments. MoReTec on I have mean, I The the finalized. investments one we experience. scope, to I

that is proceeding So Wesseling. well in

for Cologne our hub. So

is, as different said leveraging process you process, catalysis. practically I experience we it process times, a catalytic there other in any vast is Our our is because multiple out find upon have that than

Operator

next question from Begleiter Deutsche David line of Bank. the with comes Our

David Begleiter

Peter, price of the July half embedding as half, in are for first versus results polyethylene higher in you increases included well? what your second expectation and specifically

Peter Z. Vanacker

look year. QX David, welcome, the QX thank you well. course, this at than question for your mean first and group you I last if as of perspective, better from a then of was half year

than QX impressively, better Now QX. mean, better quite QX, I than was XX%

seen a to alluded you to refinery point end what which to now the we year. environment than I business, its call, excludes It's before have different make as in in the want operations. refining is we that going Another is if last

better results year. if for you refining without results without results So refining compare last year, with are last QX year, then than QX our this

we improving core the as progressing. So are is business

second the as per the remain mean, we on price in of polyethylene cheap. to expect that remarks, pound alluded question you said American beginning Kim chain. will as inventory markets. prepared year, exports. We look, all your only half in been to X through value And practically we see the America $X.XX record demand They growth at North we're are hurricane if what season. exports, don't North ethane capacity well the absorbed this Now throughout in any buildup has the increased increases I of the

should price look that that things, I one very momentum you also if So good a these we at have support, increases for would expect then and all mean, polyethylene.

American North per see I market price increases. will $X.XX support there, in increases which momentum mean, see, Xx of to pound least you much the course, but how are the should of We the at out these price have

Operator

Partners. of from Our McCarthy Research line comes next Kevin with question Vertical the

Kevin McCarthy

outlined Peter, regarding European perhaps more asset provide the on And moving importantly, color more divesting, decisions, Can at you time a bit or I might detail forward? little buckets be for the X likely? rationalizing appreciate about you you that these X of the profit, evaluation your more review the in how ongoing the upgrading which of but terms does footprint. look like of line Slide what arrived

Peter Z. Vanacker

Good Kevin. much, very you Thank question.

because lot we that to we disclose all we options course, not you I have keep as market. continue in this addition announcement at made point Of But the there's in know, open. in time mean, a can the the

joint XX-XX which to have oxide made market by us a little . I One with on discussions announcement POSM those potential have a #X. bit the the Maasvlakte, like having differentiate is in to around need that assets. you propylene allows the Slide with units So also owners so the that venture part in Covestro. other for is we saw

a you different, is bit identified the that than that of course, the I within compare, scope. sites cracker/PE/PP have we to mean, if So

diligent. say. not opportunity I not is very the I that any say are And in we well, have delay we would that need excluding at that point and we focused, progressing will be can thing So to this We're time. taken. laser We're actions one

Operator

the with question UBS. line next Spector comes Josh of from Our

Christopher Perrella

more over the know the half for half. Perrella The -- I at I on maintenance a the to Chris look second trying schedule. maintenance half there's just Taking maintenance was the It's barrel updated similar looks thank you impact. guidance, Josh. color for relatively it moving what's the second in in slowing momentum -- half? the could sort the some second earnings weighing quarter parts? or seasonal Is decline on of saw that in you the a Or on the -- there? add you

Peter Z. Vanacker

Chris, good I thanks, a continue that to question. on bit already we built up. PE. there momentum Well, is being talked see

the see So which, strongest versus to that and look Exports this up up, is X since the say, just at domestic in June. X% May demand if you years. X% X%, remind U.S. by were around just quarter was let's QX PE, everybody, versus you QX,

in these a I on alluded mean, all mean, The price we same And highest, have also second that polypropylene. to bit exports were the about increases valid, they So is the I the marketplace. time. I

I So mean to improve. continues we -- demand

packaging, go down. to would We're in consumer But if go consequence consumer areas that already Of so other of course, there a inflation go see rates low, to rigid for up, polypropylene, that improvements still still as films. confidence in waiting we're down interest for rates even seeds, some durable waiting that especially for goods. we confidence remains a is like bit

and polyethylene quite book also on order is full polypropylene. Our

with So with locally, up. we around issue absorbed The X%, think we messages, slowly but then on as additional we that the inflation as continues the being of we're go southern Europe well. continues slowly X% stream, China is down China. to countries, soft. see, around coming is demand, growth, with that is in seen But rates Europe, is have capacity happy on to We especially see there higher main continue be Europe that that that the And GDP part encouraging demands. southern some numbers to be well. that higher going

at look slow see increase you continued demand. together, the in if So we of terms everything a increase,

terms course, mean, -- available. we talk Wesseling I our creation. you turnarounds have utilization we see I momentum, have steady mean, because momentum some of worried clarifications these if we cracker so we much, we half that slow in because Michael see Europe, that that the own percentages to and you it's the that. on of demand mean, continue well, year in our of rest you good But for are capacity that demand gives I and So big but lesser if capacity we because scheduled in made It's about assured, have continuous of not actions about mainly growth, second on have

slightly And a that half seasonally, second flattish to weakest know strongest, to Chris, So the QX, first reminder. you second tend seasonally then and third and just with versus half. up quarters fourth as the be the first the

Operator

with comes Hassan question the Ahmed Global. of Alembic next Our from line

Hassan Ahmed

obviously, last this be that apologies nice late, in before. has to And EBITDA side asked driven this of you a some or things. quarter, up the Peter. guys stable. then And joined there segment question the call partly volatility if obviously by things. historically, I&D bump well. EBITDA over saw been oxyfuel quite X, there used so as of I But the side around the a the was in year question

suss of this levels trying these out continuation Just sort -- nature to what historically how of the profitability the historically of sustainability sort and eddie of you business. guys of steady think about a

Peter Z. Vanacker

it business, around Thank of couple around I you know, of a more the Aaron propylene made I&D Hassan. comments couple can business. your a oxides, here, he have he the maybe question. I also the mean remarks. I you, oxyfuels you room as since but for PO, and heading was over Thank make the hand I that is in additional

Aaron Ledet

Yes. it. in point couple And of steady. quarter. your Thank thanks earnings for the appreciate Peter. I sold very We you, question, to agree the O&D I'd a the I&D different being things. about historical comment with Hassan. I second business

So you that that have consider from profile. removing to

planned close benchmark. facility better added we've that facility to PO/TBA operating than rates now the However, and we're

benefit construction, technology. We've demand, to challenges that's running optimizing talked assets the at that given housing assets POXX to earlier actually U.S. would with that to given And all see forward, being close we PO/TBA POSM in prioritize just our we with in look with to I comment with demand it's like of assets the according are specifically in seeing being that's more our we're reflecting supply and already made and August why why current we PO the benchmark demand. automotive, When our assets the that As durable idled meet POSM, position. currently we're swing that you're on cost specifically region. looking Michael assets, those

in the that built answer down some we some earlier immediate, steady but coming potentially rates there. That do still not see do forecast, question to that see remains being into I&D going previous be interest upside our it expect said, with I and that's forward. my potential potential currently I we won't upside mentioned

Peter Z. Vanacker

Of new we very that well. very because have course, plant well running PO/TBA that we're positioned is

if we good starts capacity So available then but have to up, the durable the fulfill demand moving demand.

Operator

line the Wolf Parkinson question Chris Research. with comes next Our of from

Christopher Parkinson

in supplies I just like want it of seems increases a towards into bit the decade, the have the seen U.S. dive mean, other you more in end plateauing to polypropylene of regions world. I dynamics. little but

you're the So of as in be on just as front costs we helpful as how well to thinking business the 'XX. about of views feedstock current dynamics particularly would your go supply about that terms into think

Peter Z. Vanacker

elaborate let durable really in really is States we despite mean, about Kim, going before that domestic we I that fact, yet Thank X% not the was you, Chris. saw me the means the United have substantially, I mean also I up which over QX, hand since up to -- quarter is is demand in polypropylene the polypropylene versus QX demand this strongest seen for that XXXX. that goods

So with that, Kim?

Kimberly Foley

of in add would ask the Peter, the global China So I of in a of I that guess specifically what is you years. last couple polypropylene, dynamics, lot about when you've to over growth seen overall kind

less polypropylene, the may XX% much to XX%. So market. would or see of versus seeing regional contrast you is just export play what compare in Polypropylene in polyethylene. be it and export It's a polyethylene more X% U.S. what like you're -- you XX% to more of out the than market where

dynamic around a based dynamic, question is that much your it's feedstock feedstocks. and So the regional to more on

what getting really in interesting supply and cost of North you're thing parts of the specifically whether So from in is units, you're is it the it propylene. propylene right PDH of that's from now your reliability refineries, the then different getting dynamic world, that of whether an America, on-purpose

to ethane that's phasing a been been PDH people coming online olefins feedstocks. have out they've propylene of out There's gone brought as been lighter lot of as crackers capacity

and on polypropylene having causing purpose grade would seeing see the you're So you call higher propylene problems. reliability problems we -- what PDH

on So things in the I there hope some were that here other going your I answers apologize, room. question.

Peter Z. Vanacker

increase, for improvement July per North pound is America polypropylene. that for the $X.XX And price I Chris, we have of mean, table the market spread a also on in on

Operator

Morgan Our of comes Vincent line the with last Stanley. question from Andrews

Turner Hinrichs

or something more run values were they This is EAI, for because co-product attractive Hinrichs when else? XX% like on was think It Turner ran I with you in typically Vincent. naphtha naphtha you looked propane, that at can

Peter Z. Vanacker

Kim?

Kimberly Foley

-- best good especially we were in the crackers simple that European the is well values, time. of answer at optimization There our co-product that, as felt Your very yes. butadiene as was

it's As best feedstock Europe just week-to-week we'll in produce value and or to important, our it I in we and whether optimize coproduct. very think U.S., because always said not the the is It's sometimes always ethylene, slate the it's past, are looking we've crackers the the reiterate of LYB. for in

Operator

of comments. question-and-answer the session. end We will for to have the closing turn over Vanacker the I back Mr. reached call

Peter Z. Vanacker

very Thank of you you all Yes. Thank the much. questions. again for thoughtful

focused we advantaged still of this strategy progress our call. that? on a asset much I that articulate a saying am believe couple mix. of excellent why well key make LYB more as with to leading portfolio a maybe company making messages me are I Let as product And

XX%; cost state-of-the-art; EBITDA of advantage billion I yield good actions without from all, quite you $X goal feedstock our in to margin is LyondellBasell's by XXXX; incremental average mean, XX% increase refining regions dividend operations second we is, we're first to clear add normalized already our our capital at in see due fourth, I above share total and our of that X% advantaged return historical production an to making secondly, XX% EBITDA volume. have quarter on progress we our that have think, current about buybacks and increased some also to third,

that have we say, XX%, strategic will grow after years. to implemented assessment, couple let's our in that, of a we so around expect European And

Stay forward to Thank progress to you and So as of great updates all make strategy. stay much. all hope we look very healthy well, sharing our a continue you course, safe. of months coming have on weekend. stay the over aspects We we long-term

Operator

today's at your your lines Thank time. for this and concludes you you disconnect And participation. this may conference,

LyondellBasell Industries (LYB) 2 Aug 242024 Q2 Earnings call transcript