LyondellBasell Industries N.V. LYB reported first-quarter fiscal 2024 revenues of $9.925 billion, down from $10.25 billion a year ago, beating the consensus of $9.73 billion.
Adjusted EBITDA stood at $1.06 billion (-26.8% Y/Y), and the margin contracted by 346 bps to 10.7%.
Adjusted EPS stood at $1.53, down from $2.50 a year ago, beating the consensus of $1.37.
The company mentioned that lower natural gas costs in North America boosted olefins and polyolefins margins, with improved polyethylene demand, though volumes faced downtime. In Europe, Red Sea logistics issues limited imports, enhancing local olefins and polyolefins output.
Globally, weak durable goods demand pressured polypropylene and propylene oxide volumes and margins.
LyondellBasell cash used in operating activities for the quarter totaled $(114) million, compared to cash provided of $482 million a year ago. The company returned $408 million in dividends to shareholders.
LYB stated that the use of cash by operating activities during the quarter was due to a build-in working capital driven by expected seasonality and higher volumes and prices in several businesses.
LYB's cash and liquid investment balance was $2.33 billion as of March 31, 2024, and total liquidity stood at $6.48 billion.
The company reported cash provided by operating activities over the last 12 months of $4.3 billion, resulting in 93% cash conversion.
Outlook: LyondellBasell expects seasonal demand improvements across most businesses in the second quarter.
LYB expects to operate its assets in line with market demand, with average operating rates of 85% for global olefins and polyolefins assets and 80% for the Intermediates & Derivatives assets.
Price Action: LYB shares traded higher by 1.53% at $101.21 at the last check Friday.
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