HOUSTON and LONDON - LyondellBasell Industries (NYSE: LYB) announced net income for the first quarter 2023 of $474 million, or $1.44 per diluted share. During the quarter, the company recognized identified items of $348 million, net of tax. These items, which impacted first quarter earnings by $1.06 per share, included a non-cash goodwill impairment related to our Advanced Polymers Solutions segment and costs incurred from plans to exit the refining business. First quarter 2023 EBITDA was $1.1 billion, or $1.5 billion excluding identified items.
Global olefins and polyolefins margins increased during the first quarter driven by lower ethane cost in the U.S., lower energy costs and moderately improving global demand. LyondellBasell increased global operating rates to align with market conditions. Steady demand for fuels continued to support strong oxyfuels and refining margins.
In the first quarter, LyondellBasell generated $482 million in cash from operating activities and ended the quarter with $5.8 billion in available liquidity. The company remains committed to a disciplined approach to capital allocation. During the first quarter, approximately $350 million was reinvested in the business and $460 million was returned to shareholders through dividends and share repurchases. Over the past twelve months, the company returned 107% of free cash flow to shareholders.
At its Capital Markets Day (CMD) in March, LyondellBasell launched a new strategy targeting net income of $6.3 billion and $10 billion of normalized EBITDA by 2027. Prior to the CMD, the company announced several acquisitions and partnerships in line with its new strategy to meet the increasing need from customers and society for sustainable solutions. In less than a year since signing its first power purchase agreement, LyondellBasell achieved 70% of its target to procure at least 50% of its global electricity from renewable sources by 2030.
'We are rapidly advancing our strategy to create significant value by building a profitable Circular & Low Carbon Solutions business and establishing LyondellBasell as the industry leader in sustainability,' said Peter Vanacker, LyondellBasell Chief Executive Officer.
OUTLOOK
In the near-term, the company expects typical seasonal trends to drive modest improvement in global demand. Increased summer demand for transportation fuels should provide support for oxyfuels and refining margins. Delays in the start of North American polyethylene capacity additions across the industry are expected to reduce new market supply and support polyethylene margins. During the second quarter, LyondellBasell expects to operate Intermediates & Derivatives assets at 80% and modestly increase global olefins and polyolefins operating rates to 85% to match the market outlook. The company remains watchful for the effects of changes in global monetary policies and improving economic conditions in China on petrochemical markets during the second half of 2023.
'LyondellBasell remains focused on delivering our strategy to grow and upgrade our core businesses, build a profitable Circular & Low Carbon Solutions business and step up our performance and culture. We believe the combination of these strategic moves will capture significant value by positioning LyondellBasell as the leading investment in our industry with a more profitable and sustainable growth engine,' said Vanacker.
Free cash flow is net cash provided by operating activities less capital expenditures.
CONFERENCE CALL
LyondellBasell will host a conference call April 28 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Peter Vanacker, Executive Vice President and Chief Financial Officer Michael McMurray, Executive Vice President of Global Olefins and Polyolefins Ken Lane, Executive Vice President of Intermediates and Derivatives and Refining Kim Foley, Executive Vice President of Advanced Polymer Solutions Torkel Rhenman and Head of Investor Relations David Kinney. For event access, the toll-free dial-in number is 1-877-407-8029, international dial-in number is 201-689-8029 or click the CallMe link. The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings. A replay of the call will be available from 1:00 p.m. ET April 28 until May 28. The replay toll-free dial-in numbers are 1-877-660-6853 and 201-612-7415. The access ID for each is 13735436.
First Quarter 2023 Highlights
Net Income: $474 million, $822 million excluding identified items(a)
Diluted earnings per share: $1.44 per share; $2.50 per share excluding identified items, an improvement of more than 90% relative to the fourth quarter 2022
EBITDA: $1.1 billion, $1.5 billion excluding identified items
Net cash provided by operating activities: $482 million; $5.1 billion over trailing 12 months
Achieved 89% cash conversion(a) and 12% return on invested capital(a) over trailing 12 months
Returned $459 million to shareholders through dividends and share repurchases in the first quarter
Launched new strategy targeting net income(b) of $6.3 billion and $10 billion of normalized EBITDA(a)(b) by 2027
Successfully started up the world's largest propylene oxide plant
Achieved 70% of target to procure at least half of global electricity from renewable sources by 2030
ABOUT LYONDELLBASELL
We are LyondellBasell (NYSE: LYB) - a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producer of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.LyondellBasell.com or follow @LyondellBasell on LinkedIn.
FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words 'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'should,' 'will,' 'expect,' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; our ability to successfully implement initiatives identified pursuant to our value enhancement program and generate anticipated earnings; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to manage costs; future financial and operating results; benefits and synergies of any proposed transactions and our ability to align our assets with our core; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers to meet our targets and forecasts, and reduce our emissions and achieve net zero emissions by the time set in our goals; our ability to procure energy from renewable sources; our ability to build a profitable Circular & Low Carbon Solutions business; the successful shut down and closure of the Houston Refinery, including within the expected timeframe; our ability to successfully implement initiatives identified pursuant to our value enhancement program and generate anticipated earnings; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and to repay our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the 'Risk Factors' section of our Form 10-K for the year ended December 31, 2022, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
This release contains time sensitive information that is accurate only as of the date hereof. Information contained in this release is unaudited and is subject to change. We undertake no obligation to update the information presented herein except as required by law.
LYONDELLBASELL INDUSTRIES N.V. 
