Houston, TX – LyondellBasell Industries announced net income for the second quarter 2022 of $1.6 billion, or $4.98 per share. The company recognized a $69 million non-cash impairment charge during the quarter related to the exit from our Australian polypropylene business that impacted earnings by $0.21 per share. Second quarter 2022 EBITDA was $2.4 billion, or $2.5 billion excluding LCM and impairment. Second quarter 2022 EBITDA was further impacted by a $94 million non-cash pension settlement charge.
“With a diverse portfolio, strong cash generation and disciplined capital allocation, LyondellBasell is already well-regarded as one of the best operated companies in our sector. After my first two months as LyondellBasell CEO, I am convinced that our team has the passion and dedication required to grow these capabilities. Our aim is to build upon our strong position, our scale and our reach to establish LyondellBasell as a leader in serving the world’s growing needs for circular and sustainable materials while reducing our carbon footprint. I look forward to sharing more of our plans about how LyondellBasell will advance our strategy and unlock additional value over the coming months,” said Peter Vanacker, LyondellBasell Chief Executive Officer.
“Looking specifically at the second quarter, LyondellBasell’s global portfolio of businesses delivered strong earnings and cash generation driven by record results from our Intermediates & Derivatives segment and exceptional refining margins. In addition, LyondellBasell is making tangible progress toward our goals to help address the global challenges of climate change and plastic waste,” said Vanacker.
LyondellBasell’s broad portfolio supported an 18 percent sequential growth in EBITDA during the second quarter. The Intermediates & Derivatives segment delivered record profitability. The Houston refinery ran at a rate of nearly 95 percent to support increased demand for gasoline, diesel and jet fuel. Olefins and polyolefins markets reflected distinct regional dynamics. While North American demand for products used in consumer packaging end markets remained strong, the company’s volumes in Europe decreased due to downtime at the cracker in France and moderating regional demand near the end of the quarter. In China, markets remained weak due to zero-COVID measures and logistical challenges. Advanced Polymer Solutions results continued to be hindered by automotive production constraints.
LyondellBasell generated $1.6 billion in cash from operating activities during the quarter. The company remains committed to a disciplined approach to capital allocation. In the second quarter, $532 million was reinvested back into the businesses and $2.1 billion was returned to shareholders through the combination of a special dividend, an increased quarterly dividend and modest share repurchases. Strong shareholder returns continue to be a capital allocation priority at LyondellBasell.
During the quarter, LyondellBasell signed several renewable power purchase agreements that will help reduce the carbon footprint of operations. Since the launch of the Circulen portfolio in 2019, the company has sold over 140,000 tons of polymer manufactured from recycled and renewable feedstocks; an amount that represents the annual polyethylene and polypropylene demand from the population of Houston. LyondellBasell is scaling up the Circulen product lines to address the growing demand from our customers and society for renewable and circular materials.