0001489393-21-000003.txt : 20210129 0001489393-21-000003.hdr.sgml : 20210129 20210129064521 ACCESSION NUMBER: 0001489393-21-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20210129 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210129 DATE AS OF CHANGE: 20210129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LyondellBasell Industries N.V. CENTRAL INDEX KEY: 0001489393 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 980646235 STATE OF INCORPORATION: P7 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34726 FILM NUMBER: 21568035 BUSINESS ADDRESS: STREET 1: 1221 MCKINNEY ST STREET 2: SUITE 700 CITY: HOUSTON STATE: TX ZIP: 77010 BUSINESS PHONE: 713-309-7603 MAIL ADDRESS: STREET 1: 1221 MCKINNEY ST STREET 2: SUITE 700 CITY: HOUSTON STATE: TX ZIP: 77010 8-K 1 lyb-20210129.htm 8-K lyb-20210129
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 ____________________________________________
FORM 8-K
____________________________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 29, 2021
____________________________________________ 
LYONDELLBASELL INDUSTRIES N.V.
(Exact Name of Registrant as Specified in Charter) 
 ____________________________________________ 
Netherlands001-3472698-0646235
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)

1221 McKinney St.,
4th Floor, One Vine Street
Suite 300LondonDelftseplein 27E
Houston, Texas
W1J0AH3013AARotterdam
USA77010United KingdomNetherlands
(Addresses of principal executive offices) 
(713)309-7200+44 (0)207220 2600+31 (0)102755 500
(Registrant’s telephone numbers, including area codes) 
(Former Name or Former Address, if Changed Since Last Report)
_____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of Each ClassTrading SymbolName of Each Exchange On Which Registered
Ordinary Shares, €0.04 Par ValueLYBNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 2.02.    Results of Operations and Financial Conditions.
    On January 29, 2021, LyondellBasell Industries N.V. announced earnings results for the quarter ended December 31, 2020. A copy of our earnings release is attached as Exhibit 99.1 and incorporated into this Item 2.02 by reference.
    The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will not be incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.


Item 9.01.     Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberDescription
99.1
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.







SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
  LYONDELLBASELL INDUSTRIES N.V.
Date: January 29, 2021 By:/s/ Jeffrey A. Kaplan
  Jeffrey A. Kaplan
  Executive Vice President
and Chief Legal Officer






EX-99.1 2 a2020q4exhibit991.htm EX-99.1 Document

lyblogosecconverted1.jpg
NEWS RELEASE
FOR IMMEDIATE RELEASE
HOUSTON and LONDON, January 29, 2021
LyondellBasell Reports 2020 Earnings
Full Year 2020 Highlights
Resilient Earnings
Net Income: $1.4 billion, $1.9 billion excluding LCM and Impairment1
Diluted earnings per share: $4.24 per share, $5.61 per share excluding LCM and Impairment
EBITDA: $3.3 billion, $3.9 billion excluding LCM and Impairment
Advanced Growth Initiatives
Expanded polyethylene capacity with new 500 kt per year Hyperzone plant in Texas
New joint ventures in China and Louisiana; both accretive to earnings in the fourth quarter
Expanded circular polymers joint venture capacity by 20 kt in Belgium
Strong Cash Conversion and Dividends
88% conversion of EBITDA (excluding LCM and Impairment) to cash from operating activities
Paid $4.20 per share in dividends; our tenth consecutive year of increasing total quarterly dividends
Fourth Quarter 2020 Highlights
Net Income: $0.9 billion, $0.7 billion excluding LCM and Impairment
Diluted earnings per share: $2.55 per share, $2.19 per share excluding LCM and Impairment
Highest fourth quarter EBITDA since 2017: $1.4 billion, $1.3 billion excluding LCM and Impairment
Refinanced $2.4 billion of debt to extend maturities and capture attractive interest rates
Liquidity of $5.2 billion as of December 31, 2020
Comparisons with the prior quarter, fourth quarter 2019 and year ended 2019 are available in the following table:
Table 1 - Earnings Summary
Millions of U.S. dollars (except share data)Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Sales and other operating revenues$7,937$6,776$8,179$27,753$34,727
Net income8551146121,4273,397
Diluted earnings per share2.550.331.834.249.58
Weighted average diluted share count334334334334353
EBITDA (a)
1,4134461,1723,2855,692

Excluding LCM and Impairment1
Net income $736$427$637$1,884$3,422
Diluted earnings per share2.191.271.905.619.65
LCM (benefits) charges, pre-tax(147)(160)331633
Impairment, pre-tax582582
EBITDA1,2668881,2053,8835,725
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of net income to EBITDA, including and excluding LCM and impairment.
___________________________________________
1 LCM stands for “lower of cost or market.” Impairment is related to the Refining segment. An explanation of LCM and why we have excluded LCM and impairment from certain financial information can be found under “Information Related to Financial Measures.”

1


LyondellBasell Industries (NYSE: LYB) today announced net income for the fourth quarter 2020 of $0.9 billion, or $2.55 per share. The quarter included a $147 million non-cash, lower of cost or market (LCM) inventory valuation benefit that increased net income by $119 million or $0.36 per share. Fourth quarter EBITDA was $1.4 billion, or $1.3 billion excluding LCM.

Full year 2020 net income was $1.4 billion, or $4.24 per share. The full year results included a $582 million non-cash impairment charge related to the Houston refinery and $16 million of non-cash, LCM inventory valuation charges. LCM and Impairment charges reduced full year 2020 net income by $457 million, or $1.37 per share. Full year 2020 EBITDA was $3.3 billion, or $3.9 billion excluding LCM and impairment. During 2020, costs for integration and restructuring impacted net income by $33 million or $0.10 per share.

“During 2020, LyondellBasell demonstrated financial and operational resilience against an extremely challenging backdrop of a global pandemic, the associated recession, volatile oil prices and significant capacity additions in our industry. We moved swiftly to create a safe work environment for our employees and continuously supply customers with essential products throughout the pandemic. Our strengths in operational excellence, cost management and capital discipline served us well as we quickly adapted to dynamic conditions by aggressively managing inventories, minimizing working capital and bolstering liquidity by rapidly accessing capital markets and efficiently generating cash. LyondellBasell honored commitments to investors by both maintaining an investment grade credit rating and continuing to fund dividends and capital investments with cash from operations. Taken together, these actions enabled us to successfully navigate a challenging year and remain focused on our strategy to build a stronger company for our stakeholders,” said Bob Patel, LyondellBasell CEO.

“During the fourth quarter, strong and persistent consumer-driven demand, industry supply constraints and continued recovery in durable goods markets reduced the impact of typical end-of-year slowdowns for our businesses. During this period, we operated well and met robust demand for polyolefins used in consumer packaging and healthcare applications. Margins improved for Olefins and Polyolefins, Propylene Oxide & Derivatives and Intermediate Chemicals businesses driven by higher demand and tight markets. Rebounding automotive manufacturing drove increased volumes for our Advanced Polymer Solutions businesses. The Refining and Oxyfuels & Related Products businesses continued to face headwinds from low global mobility resulting in stagnant demand for transportation fuels.”

“LyondellBasell nimbly managed the challenges of 2020 and our team advanced on our goal to create a stronger company for the longer term. We expanded our participation in the rapidly growing Chinese market by forming a new integrated olefin and polyolefin joint venture with Bora. In December, we expanded our manufacturing footprint on the U.S. Gulf Coast through the formation of an integrated polyethylene joint venture in Louisiana with Sasol. Both joint ventures provided immediate benefits to our fourth quarter profitability without the project completion risks associated with the construction of greenfield projects.”

“Our company remained focused on the substantive and ambitious goals outlined in our most recent Sustainability Report to develop circular and sustainable business models for our products. We took action to advance our goals of annually producing and marketing two million tons of recycled and renewable-based polymers, including the start-up of our MoReTec molecular recycling pilot plant in Ferrara, Italy and the expansion of our mechanical recycling capacity in Europe through our Quality Circular Polymers joint venture with SUEZ. We are dedicated to disciplined and sustainable growth that ensures our chemical and polymer products will continue to provide value for society,” Patel said.
2


    
OUTLOOK

“Improving trends seen in the closing weeks of December are continuing into the first quarter of 2021 and providing a bridge to the seasonal upticks typically seen in our businesses during the second and third quarters. Elevated export demand to China and Latin America combined with tight markets are supporting strong margins for our Olefins and Polyolefins businesses. Increased demand from automotive and construction markets has pushed the January order book for our Advanced Polymer Solutions segment to higher levels than the fourth quarter 2020 average. With wider deployment of coronavirus vaccines, we anticipate that increasing mobility and transportation fuel demand could provide significant upside for our oxyfuels and refining businesses during the latter half of this year.”

“LyondellBasell's measured approach to advancing value-driven growth is delivering results. The Advanced Polymer Solutions platform is serving broader markets and beginning to capture the benefits from more than $200 million in synergies. Our next-generation Hyperzone high-density polyethylene technology expanded our U.S. capacity and is establishing new benchmarks for differentiated product performance. We formed two integrated cracker joint ventures that are quickly delivering accretive returns from high-quality assets benefiting from advantaged feedstocks and growing markets. In January 2021, we continued on this strategy to form a new joint venture to build our second world-scale propylene oxide and styrene monomer unit in China.”

“In the near term, the top priority for our balance sheet is debt reduction. In January, we repaid $500 million of debt outstanding with more deleveraging planned for the remainder of 2021. We are well-poised to harvest profitability from our disciplined growth initiatives that should increase free cash flow and allow us to further strengthen our investment grade balance sheet,” said Patel.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology.

Comments and analysis represent underlying business activity and are exclusive of LCM and impairment.
3


Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.

Table 2 - O&P-Americas Financial Overview
Millions of U.S. dollars Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Operating income$516$309$365$1,170$1,777
EBITDA7224744981,8102,302
LCM (benefits) charges, pre-tax(70)25325
EBITDA excluding LCM7224045231,8132,327

Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $318 million versus the third quarter 2020, excluding an unfavorable $70 million variance due to LCM inventory benefits in the third quarter. Fourth quarter 2020 results benefited approximately $70 million due to last-in, first out (LIFO) inventory valuation changes relative to the prior period. Olefins results increased $185 million with higher margins and volumes. Margins increased primarily due an increase in the prices of ethylene and propylene, while volumes increased due to higher demand. Polyolefin results increased about $65 million driven by improved margins with a spread increase of polyethylene over ethylene and of polypropylene over propylene.

Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $199 million versus the fourth quarter 2019, excluding a favorable $25 million variance due to LCM inventory charges in the fourth quarter 2019. Fourth quarter 2020 results decreased approximately $15 million due to LIFO inventory valuation changes relative to the prior period. Olefins results increased approximately $65 million due to an increase in ethylene volumes from increased demand partially offset by lower margins. Polyolefin results increased $140 million driven by increased demand. Margin improved due to an increase in the price of polyethylene and an increase in polyolefin volumes.

Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $514 million versus 2019, excluding a favorable $22 million variance due to LCM inventory charges. 2020 results decreased approximately $75 million due to LIFO inventory changes relative to the prior period. Olefins results decreased about $220 million versus 2019 with a significant decrease in margin partially offset by an increase in volume. Margins decreased driven by lower co-product prices outpacing reduced feedstock costs. Volumes increased driven by strong demand. Polyolefin results decreased approximately $215 million driven by a spread decrease in polyethylene and polypropylene over monomer partially offset by an increase in polyethylene volume. Volume increased due to increased demand and start-up of the Hyperzone plant.

4


Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins & Co-products, polyethylene and polypropylene.

Table 3 - O&P-EAI Financial Overview
Millions of U.S. dollars Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Operating income$144$52$59$412$673
EBITDA3041481448261,062
LCM (benefits) charges, pre-tax(53)(17)
EBITDA excluding LCM2511311448261,062

Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $120 million versus the third quarter 2020, excluding a favorable $36 million variance due to LCM inventory benefits. Fourth quarter 2020 results benefited approximately $40 million due to LIFO inventory valuation changes relative to the prior period. Olefins results were relatively unchanged compared to the third quarter 2020. Margin declined due to increased maintenance expense offset by increased ethylene volume. Combined polyolefins results increased $20 million driven by higher polyolefin volumes due to our new Bora joint venture production coupled with higher demand. Joint venture equity income increased approximately $60 million with over half of the increase attributable to our Bora joint venture.

Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $107 million versus the fourth quarter 2019, excluding a favorable $53 million variance due to LCM inventory benefits in the fourth quarter 2020. Compared with the prior period, olefins results increased $25 million primarily driven by increased margins and volumes. Margins were higher driven by lower feedstock prices partially offset by lower ethylene prices. Combined polyolefins results increased more than $20 million largely due to higher polyolefin volumes and polyethylene margin partially offset by a decrease in polypropylene spread. Joint venture equity income increased $65 million driven by Bora.

Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $236 million versus 2019. Full year 2020 results include the impact of approximately $30 million due to LIFO inventory changes and a benefit of approximately $25 million due to an increase in the euro versus the U.S. dollar exchange rate relative to 2019. Compared with the prior period, olefins results decreased $140 million due to lower margins driven by declining ethylene prices outpacing lower feedstock costs. Combined polyolefins results decreased about $115 million due to lower margins partially offset by increased polyolefin volumes from the start-up of Bora. Polyolefin margins declined driven by spread decreases in polyethylene and polypropylene over monomer. Joint venture equity income increased approximately $15 million driven by the start-up of Bora partially offset by lower polyethylene margins.

5


Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.

Table 4 - I&D Financial Overview
Millions of U.S. dollars Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Operating income$166$180$249$501$1,249
EBITDA2622673298331,557
LCM (benefits) charges, pre-tax(66)(22)10
EBITDA excluding LCM1962453298431,557

Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA decreased $49 million versus the third quarter 2020, excluding a favorable $44 million variance due to LCM inventory benefits. Results for the fourth quarter decreased approximately $70 million due to LIFO inventory changes relative to the prior quarter. Compared to the prior period, Propylene Oxide & Derivatives results increased more than $25 million driven by higher margins due to strong Asia demand and market tightness. Intermediate Chemicals results were relatively unchanged. Oxyfuels & Related Products results decreased approximately $10 million driven by lower margins partially offset by an increase in volumes. Margins declined due to higher butane feedstock prices and further weakening of gasoline spreads.

Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $133 million versus the fourth quarter 2019. Results for the fourth quarter decreased approximately $55 million due to LIFO inventory changes relative to the prior quarter. Propylene Oxide & Derivatives results increased approximately $40 million with improved margins and higher volumes due to strong Asia demand and market tightness. Intermediate Chemicals results increased about $50 million driven by improved volumes and higher margins in most products, primarily styrene. Volumes increased due to higher demand for most products and absence of planned maintenance in the fourth quarter 2019. Oxyfuels & Related Products results decreased $175 million driven by lower margins due to reduced gasoline prices and lower octane blend premiums.

Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $714 million versus 2019, excluding an unfavorable $10 million variance due to LCM inventory charges in 2020. Results for 2020 decreased approximately $40 million due to LIFO inventory changes relative to the prior year. Propylene Oxide & Derivatives results decreased $15 million due to lower margins partially offset by higher volumes due to strong Asia demand. Intermediate Chemicals results decreased about $185 million driven by margin declines in most businesses. Oxyfuels & Related Products decreased approximately $465 million with a significant decrease in margins driven by reduced gasoline prices and lower octane blend premiums.

6


Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1.

Table 5 - Advanced Polymer Solutions Financial Overview
Millions of U.S. dollars Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Operating income$123$116$13$226$290
EBITDA15215754378424
LCM (benefits) charges, pre-tax(26)(40)838
EBITDA excluding LCM12611762381432

Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $9 million versus the third quarter 2020, excluding an unfavorable $14 million variance due to LCM inventory benefits. Results for the fourth quarter increased approximately $15 million due to LIFO inventory changes relative to the prior quarter. Compounding & Solutions results were relatively unchanged with higher volumes due to continued automotive manufacturing recovery offset by lower margins. Advanced Polymers results were relatively unchanged.

Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $64 million versus the fourth quarter 2019, excluding a favorable $34 million variance due to LCM inventory changes. Results for the fourth quarter benefited from a variance in integration costs of $38 million and were impacted by LIFO inventory changes of approximately $10 million compared to the prior period. Compounding & Solutions results increased $40 million primarily driven by improved margins due to product mix. Advanced Polymers results were relatively unchanged.

Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $51 million versus 2019, excluding a favorable $15 million variance due to LCM inventory changes. Compared to the prior period, results benefited from a variance in integration costs of $80 million. Results for 2020 decreased approximately $25 million due to LIFO inventory changes relative to the prior year. Compounding & Solutions results decreased approximately $70 million driven by significantly lower volumes due to automotive and appliance sector shutdowns partially offset by higher margins due to product mix. Advanced Polymers results decreased about $35 million due to lower margins and volumes driven by reduced construction market demand.

7


Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.

Table 6 - Refining Financial Overview
Millions of U.S. dollars Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Operating income (loss)$(93)$(733)$(19)$(1,024)$(240)
EBITDA(72)(692)22(871)(65)
LCM (benefits) charges, pre-tax(2)(11)
Impairment, pre-tax582582
EBITDA excluding LCM and impairment(74)(121)22(289)(65)

Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $47 million versus the third quarter 2020, excluding an unfavorable variance of $11 million due to LCM benefits and an impairment of $582 million for the Houston Refinery in the third quarter. Margins improved due to lower fixed costs and improved margin capture. A small improvement in the Maya 2-1-1 industry benchmark crack spread to $10.11 per barrel was more than offset by increased costs for renewable identification number credits (RINs). The Houston Refinery operated at 80% utilization rate or an average crude throughput of 214,000 barrels per day matching reduced demand.

Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $96 million versus the fourth quarter 2019, excluding a favorable variance of $2 million due to LCM benefits in the fourth quarter 2020. Margin declined as the Maya 2-1-1 industry benchmark decreased by $9.35 per barrel relative to same period last year. The Houston Refinery operated at 214,000 barrels per day, 53,000 barrels per day lower than prior period due to sluggish demand for refined products.

Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $224 million versus 2019, excluding an impairment of $582 million for the Houston Refinery in the third quarter 2020. Margins decreased driven by a decline in the Maya 2-1-1 industry benchmark from $17.52 per barrel to $12.63 per barrel. Crude throughput averaged 223,000 barrels per day, 40,000 barrels per day lower than prior period in response to market demand.

8


Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

Table 7 - Technology Financial Overview
Millions of U.S. dollars Three Months EndedYear Ended
December 31, 2020September 30,
2020
December 31, 2019December 31, 2020December 31, 2019
Operating income$35$101$132$287$374
EBITDA45111138324411
LCM (benefits) charges, pre-tax
EBITDA excluding LCM45111138324411

Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA decreased $66 million versus the third quarter 2020. Compared to the prior period, results were driven by a lower number of licenses reaching revenue recognition milestones. Catalyst margins increased due to inventory mix partially offset by a decrease in volumes as customers managed inventories at year-end.

Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $93 million versus the fourth quarter 2019 primarily due to reduced licensing revenue.

Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $87 million versus 2019 driven by lower licensing revenue.


Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $274 million during the fourth quarter 2020 and $1.9 billion for the full year 2020. Our cash and liquid investment balance was $2.5 billion at December 31, 2020. There were 334 million common shares outstanding as of December 31, 2020. The company paid dividends of $1.4 billion during 2020.


Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable GAAP measure, to EBITDA are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.

9


CONFERENCE CALL
LyondellBasell will host a conference call January 29 at 11 a.m. EST. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.

The toll-free dial-in number in the U.S. is 1-800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.

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. EST January 29 until February 28 at 11:59 p.m. EST. The replay dial-in numbers are 1-800-846-0305 (U.S.) and 1-402-998-0543 (international). The passcode for each is 6541.


ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the “World's Most Admired Companies” for the third consecutive year.  More information about LyondellBasell can be found at www.LyondellBasell.com.


FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference 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; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession; 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
10


operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; future financial and operating results; benefits and synergies of any proposed transactions; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; 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 amend, extend, repay, redeem, service, and reduce 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” sections of our Form 10-K for the year ended December 31, 2019, and our Forms 10-Q for the quarters ended March 31, 2020, and September 30, 2020. 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.


INFORMATION RELATED TO FINANCIAL MEASURES
This release makes reference to certain non-GAAP financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.

We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, net income and diluted EPS exclusive of adjustments for lower of cost or market (“LCM”) and impairment, and certain liquidity measures provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity. We also present EBITDA, net income and diluted EPS exclusive of adjustments for LCM and impairment. LCM is an accounting rule consistent with GAAP related to the valuation of inventory. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover. Property, plant and equipment are recorded at historical costs. If it is determined that an asset or asset group’s undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value.
11



Conversion of EBITDA excluding LCM and impairment to cash from operating activities is a measure that provides an indicator of a company’s operational efficiency and management and may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. For purposes of this release, conversion of EBITDA excluding LCM and impairment to cash from operating activities means cash from operating activities divided by EBITDA excluding LCM and impairment.

Free cash flow is a measure of profitability commonly used by investors to evaluate performance and may not be comparable to similarly titled measures reported by other companies due to differences in the way the measure is calculated. For the purposes of this release, free cash flow means net cash provided by operating activities minus capital expenditures.

Additionally, liquidity is a measure that provides an indicator of value to investors. For purposes of this release, liquidity includes cash and cash equivalents, restricted cash and restricted cash equivalents, short term investments, and availability under our Senior Revolving Credit Facility and our Receivables Facility.

Additional operating and financial information, including reconciliations of non-GAAP measures to the most directly comparable GAAP measure, may be found in Table 9 at the end of this release and on our website at www.LyondellBasell.com/investorrelations.


OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
###
Source: LyondellBasell Industries

Media Contact: Michael Waldron +1 713-309-7575
Investor Contact: David Kinney +1 713-309-7141

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Table 8 - Reconciliation of Segment Information to Consolidated Financial Information
20192020
(Millions of U.S. dollars)Q1Q2Q3Q4TotalQ1Q2Q3Q4Total
Sales and other operating revenues:
Olefins & Polyolefins - Americas$2,111 $2,114 $2,137 $2,073 $8,435 $1,792 $1,433 $1,840 $2,210 $7,275 
Olefins & Polyolefins - EAI2,535 2,505 2,309 2,155 9,504 2,224 1,702 1,982 2,459 8,367 
Intermediates & Derivatives1,894 2,062 2,046 1,832 7,834 1,770 1,157 1,538 1,804 6,269 
Advanced Polymer Solutions1,339 1,258 1,186 1,067 4,850 1,096 705 1,004 1,108 3,913 
Refining1,882 2,180 2,134 2,055 8,251 1,448 919 1,101 1,259 4,727 
Technology141 173 146 203 663 122 177 193 167 659 
Other/Eliminations(1,124)(1,244)(1,236)(1,206)(4,810)(958)(547)(882)(1,070)(3,457)
Continuing Operations$8,778 $9,048 $8,722 $8,179 $34,727 $7,494 $5,546 $6,776 $7,937 $27,753 
Operating income (loss):
Olefins & Polyolefins - Americas$384 $504 $524 $365 $1,777 $238 $107 $309 $516 $1,170 
Olefins & Polyolefins - EAI186 226 202 59 673 135 81 52 144 412 
Intermediates & Derivatives314 372 314 249 1,249 131 24 180 166 501 
Advanced Polymer Solutions119 91 67 13 290 70 (83)116 123 226 
Refining(59)(110)(52)(19)(240)(314)116 (733)(93)(1,024)
Technology73 96 73 132 374 47 104 101 35 287 
Other— (2)(4)(1)(7)(3)(10)(2)(13)
Continuing Operations$1,017 $1,177 $1,124 $798 $4,116 $304 $339 $23 $893 $1,559 
Depreciation and amortization:
Olefins & Polyolefins - Americas$115 $117 $118 $120 $470 $124 $133 $134 $134 $525 
Olefins & Polyolefins - EAI53 52 51 52 208 53 53 55 53 214 
Intermediates & Derivatives72 74 75 74 295 70 74 79 82 305 
Advanced Polymer Solutions29 30 32 42 133 44 39 40 29 152 
Refining43 44 41 41 169 42 49 40 21 152 
Technology10 11 10 37 10 10 37 
Continuing Operations$322 $328 $327 $335 $1,312 $342 $356 $358 $329 $1,385 
EBITDA:(a)
Olefins & Polyolefins - Americas$516 $635 $653 $498 $2,302 $366 $248 $474 $722 $1,810 
Olefins & Polyolefins - EAI296 331 291 144 1,062 189 185 148 304 826 
Intermediates & Derivatives390 448 390 329 1,557 203 101 267 262 833 
Advanced Polymer Solutions148 120 102 54 424 113 (44)157 152 378 
Refining(15)(66)(6)22 (65)(272)165 (692)(72)(871)
Technology83 107 83 138 411 56 112 111 45 324 
Other10 — (13)(9)(7)— (15)
Continuing Operations$1,428 $1,579 $1,513 $1,172 $5,692 $646 $760 $466 $1,413 $3,285 
Capital, turnarounds and IT deferred spending:
Olefins & Polyolefins - Americas$276 $257 $295 $271 $1,099 $204 $190 $130 $19 $543 
Olefins & Polyolefins - EAI64 39 45 65 213 42 34 38 52 166 
Intermediates & Derivatives179 238 317 330 1,064 353 305 103 119 880 
Advanced Polymer Solutions16 11 14 18 59 13 10 18 22 63 
Refining43 53 41 12 149 16 21 15 11 63 
Technology17 17 26 34 94 30 26 24 31 111 
Other16 97 20 121 
Continuing Operations$599 $622 $742 $731 $2,694 $660 $588 $425 $274 $1,947 
(a) See Table 9 for the reconciliation of net income to EBITDA, including and excluding LCM and impairment.


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Table 9 - Reconciliation of Net Income to EBITDA, including and excluding LCM and Impairment
20192020
(Millions of U.S. dollars)Q1Q2Q3Q4TotalQ1Q2Q3Q4Total
Net income $817 $1,003 $965 $612 $3,397 $144 $314 $114 $855 $1,427 
add: LCM charges (benefits), after-tax— — — 25 25 351 (88)(133)(119)11 
add: Impairment of long-lived assets, after-tax— — — — — — — 446 — 446 
Net income excluding LCM and impairment817 1,003 965 637 3,422 495 226 427 736 1,884 
less: LCM (charges) benefits, after-tax— — — (25)(25)(351)88 133 119 (11)
less: Impairment of long-lived assets, after-tax— — — — — — — (446)— (446)
Net income817 1,003 965 612 3,397 144 314 114 855 1,427 
Loss (income) from discontinued operations, net of tax— — (1)— 
Income from continuing operations817 1,006 969 612 3,404 143 315 114 857 1,429 
Provision for (benefit from) income taxes(a)
203 169 136 140 648 75 (32)(125)39 (43)
Depreciation and amortization322 328 327 335 1,312 342 356 358 329 1,385 
Interest expense, net86 76 81 85 328 86 121 119 188 514 
add: LCM charges (benefits), pre-tax— — — 33 33 419 (96)(160)(147)16 
EBITDA excluding LCM1,428 1,579 1,513 1,205 5,725 1,065 664 306 1,266 3,301 
add: Impairment of long-lived assets, pre-tax— — — — — — — 582 — 582 
EBITDA excluding LCM and impairment1,428 1,579 1,513 1,205 5,725 1,065 664 888 1,266 3,883 
less: LCM (charges) benefits, pre-tax— — — (33)(33)(419)96 160 147 (16)
less: Impairment of long-lived assets, pre-tax— — — — — — — (582)— (582)
EBITDA$1,428 $1,579 $1,513 $1,172 $5,692 $646 $760 $466 $1,413 $3,285 
(a) The third quarter of 2019 includes a non-cash benefit of $85 million, from the release of unrecognized tax benefits and associated accrued interest.








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P7 001-34726 98-0646235 1221 McKinney St. 4th Floor, One Vine Street Suite 300 London Delftseplein 27E Houston TX W1J0AH 3013AA Rotterdam US 77010 GB NL (713) 309-7200 +44 (0) 207 220 2600 +31 (0) 10 2755 500 false false false false Ordinary Shares, €0.04 Par Value LYB NYSE false XML 10 R1.htm IDEA: XBRL DOCUMENT v3.20.4
    Document and Entity Information Document
    Jan. 29, 2021
    Entity Information [Line Items]  
    Document Type 8-K
    Document Period End Date Jan. 29, 2021
    Entity Registrant Name LYONDELLBASELL INDUSTRIES N.V.
    Entity Incorporation, State or Country Code P7
    Entity File Number 001-34726
    Entity Tax Identification Number 98-0646235
    Written Communications false
    Soliciting Material false
    Pre-commencement Tender Offer false
    Pre-commencement Issuer Tender Offer false
    Title of 12(b) Security Ordinary Shares, €0.04 Par Value
    Trading Symbol LYB
    Security Exchange Name NYSE
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    Entity Address, State or Province TX
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    Local Phone Number 220 2600
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    Entity Address, City or Town Rotterdam
    Entity Address, Country NL
    Entity Address, Postal Zip Code 3013AA
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    City Area Code 10
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