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LyondellBasell Q3 2021 Earnings and Revenue Reflect Robust Demand
October 29, 2021

In its Q3 2021 earnings call, global petrochemical major LyondellBasell reported a net income of $1.76 billion, or $5.25/share, which was well above its net income of $114 million in Q3 2020. The increase in net income came as Q3 revenue was at $12.7 billion, almost double compared to the same timeframe a year earlier.

Although net income was up in Q3 of this year, it was down from Q2 net sales of $2.06 billion, while sales and revenues were up $11.6 billion in Q2

The company said its Q3 results reflects robust demand for its products and tight market conditions, which supported strong margins across most of its businesses.

"In North America, solid demand supported continued strength in benchmark integrated Polyethylene margins and drove Polypropylene spreads to historic highs," said Bob Patel in his final earnings call for the company before stepping down as CEO by the end of the year. "In contrast, higher naphtha and natural gas liquids feedstock prices in Europe led to margin compression for both olefins and polyolefins in our Olefins and Polyolefins EAI segment."

Patel added that strong market conditions and cash generation from the company's growth investments resulted in record cash from operating activities during Q3, as it redeemed $500 million in bonds to bring its year-to-date debt reduction to $2.4 billion and repurchased 1 million shares during the quarter.

Looking ahead, Patel said the company expects strong demand its products to continue as the roll out of vaccines drives further improvement in economic activity around the world.

"Over the next several quarters, we expect unmet consumer demand will extend strength in automotive, construction and other durable goods markets," said Patel. "While margins are likely to moderate due to increasing feedstock prices, energy costs and winter seasonality, we anticipate ongoing benefits from strong markets and tight industry supply."

By Brian Balboa for The Plastics Exchange.

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