LyondellBasell Tops Q4 Revenue Estimates, Eyes Growth In 2025 Despite Market Headwinds

LyondellBasell Industries N.V. LYB shares are higher after the company reported better-than-expected fourth-quarter 2024 results.

LyondellBasell reported revenues of $9.497 billion, down 4.4% year-over-year and above the consensus of $9.225 billion. Adjusted EPS was at $0.75, which is in-line with the consensus.

Adjusted EBITDA stood at 689 million (-24.3% Y/Y), and the margin contracted 191 bps to 7.2%.

Fourth quarter margins declined as higher NGL and gas costs outpaced product prices, while seasonal demand slowed domestic and global markets.

Strong polyethylene exports helped offset some declines, but weaker gasoline crack spreads and European downtime further pressured margins.

LyondellBasell generated a $3.80 billion operating cash flow in 2024, with 90% cash conversion over 12 months.

Operating cash flow supported $1.8 billion in capital spending and $1.9 billion in shareholder returns through dividends and stock buybacks. As of December end, the company had an investment-grade balance sheet with $8.0 billion in liquidity, including $3.4 billion in cash.

“The volumes of our sustainable products are rapidly growing and aligned with our profitability targets. We are sharpening our focus on value creation while diligently managing and tracking our progress through a highly disciplined Value Enhancement Program. With a robust investment-grade balance sheet, LYB is well-positioned to deliver on our strategic promises and reward shareholders with a growing dividend as part of our overall value proposition,” commented LyondellBasell CEO Peter Vanacker.

LyondellBasell targets $3 billion in incremental Normalized EBITDA by 2027, unlocking $1.3 billion by 2024. Further gains are expected from ongoing growth initiatives in 2025.

Despite market headwinds, LyondellBasell remains well-positioned, focusing on cost-advantaged feedstocks, financial strength, and sustained shareholder returns while driving future profitability.

2025 Outlook: LyondellBasell anticipates seasonal demand improvements in the first quarter of 2025, supported by lower interest rates, moderate inflation, and rising durable goods consumption.

The company aligns operations with global demand, expecting Olefins & Polyolefins Americas at 80%, EAI at 75% and Intermediates & Derivatives at 80%.

LYB Price Action: LyondellBasell shares traded higher by 0.24% at $76.30 at publication Friday.

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Photo: Courtesy LyondellBassell