LyondellBasell Industries NV
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
LYB$60.72-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001489393-24-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001489393-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 150 current paragraphs.
65 unchanged; 61 reworded; 22 added; 22 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Results for the first nine months of 2024 remained relatively flat compared to the first nine months of 2023. Our Refining segment results decreased as a result of decreases in the Maya 2-1-1 industry crack spread. Our I&D segment results decreased due to lower gasoline crack spreads which impacted our oxyfuels business partially offset by the gain on the sale of the Ethylene Oxide & Derivatives (“EO&D”) business. These decreases were offset by improvement in our Advanced Polymer Solutions (“APS”) segment results driven primarily by the absence of a non-cash goodwill impairment recognized in the first quarter of 2023. Additionally, improvements in our O&P-Americas and O&P-EAI segments were driven by higher olefins margins driven by higher ethylene prices coupled with lower costs.
Current report
Revenues decreased by $373 million or 1% in the first nine months of 2024 compared to the first nine months of 2023 due to lower sales volumes.
Current report
First nine months of 2024 versus first nine months of 2023—Higher propylene and polypropylene average sales prices resulted in a 7% increase in revenue. Lower volumes driven by lower cracker operating rates resulted in a 3% decrease in revenue.
Current report
EBITDA—EBITDA increased by $88 million, or 13%, in the third quarter of 2024 compared to the second quarter of 2024 and by $250 million, or 15%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
Third quarter of 2024 versus second quarter of 2024—Higher olefins results led to a 22% increase in EBITDA driven by higher margins resulting from higher ethylene average sales prices due to industry cracker downtime and lower ethane feedstock cost. Lower polymer results led to a 7% decrease in EBITDA primarily due to lower margins reflecting higher monomer cost.
Current report
Overview—EBITDA increased in the third quarter of 2024 compared to the second quarter of 2024, and in the first nine months of 2024 relative to the first nine months of 2023, primarily due to margin improvements.
Current report
EBITDA—EBITDA increased by $11 million, or 16%, in the third quarter of 2024 compared to the second quarter of 2024 and by $49 million, or 42%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
Third quarter of 2024 versus second quarter of 2024—EBITDA improved largely due to higher polyolefins results which were driven by moderately higher margins.
Current report
Revenue—Revenues decreased by $109 million, or 4%, in the third quarter of 2024 compared to the second quarter of 2024 and by $358 million, or 4%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
EBITDA—EBITDA decreased by $477 million, or 60%, in the third quarter of 2024 compared to the second quarter of 2024 and by $183 million, or 11%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
First nine months of 2024 versus first nine months of 2023—Oxyfuels and related products results led to an EBITDA decrease of 26% driven by lower margins reflecting lower gasoline cracks and blend premiums. Propylene oxide and derivatives results drove a 3% decrease in EBITDA as lower demand pressured margins. EBITDA increased 18% primarily due to the recognition of the gain on sale of the EO&D business during the first nine months of 2024.
Current report
Overview—EBITDA decreased in the third quarter of 2024 relative to the second quarter of 2024 primarily due to lower demand. During the first nine months of 2023 we recognized a non-cash goodwill impairment charge of $252 million.
Current report
Third quarter of 2024 versus second quarter of 2024— Decreases in volumes and margins resulted in a 35% and 18% reduction in EBITDA, respectively, primarily driven by lower automotive demand in Europe.
Current report
Overview—EBITDA decreased in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023 primarily due to lower margins.
Current report
Revenue—Revenues decreased by $291 million, or 12%, in the third quarter of 2024 compared to the second quarter of 2024 and by $825 million, or 11%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
EBITDA—EBITDA decreased by $53 million, or 757%, in the third quarter of 2024 compared to the second quarter of 2024 and by $381 million, or 103%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
Overview—EBITDA decreased in the third quarter of 2024 compared to the second quarter of 2024 primarily due to lower licensing results. EBITDA decreased in the first nine months of 2024 relative to the first nine months of 2023 primarily due to lower catalyst margins and licensing results.
Current report
EBITDA—EBITDA decreased by $15 million, or 18%, in the third quarter of 2024 compared to the second quarter of 2024 and by $27 million, or 9%, in the first nine months of 2024 compared to the first nine months of 2023.
Current report
First nine months of 2024 versus first nine months of 2023—Lower catalyst margins reflecting an unfavorable product mix led to a 6% decrease in EBITDA. Licensing contracts which reached significant milestones had lower average values resulting in a 5% decline in EBITDA.
Current report
The following table summarizes operating, investing and financing cash flow activities:
Current report
In the first nine months of 2024, foreign currency contracts with an aggregate notional value of €400 million expired. Upon settlement of these foreign currency contracts, we paid €400 million ($445 million at the expiry spot rate) to our counterparties and received $463 million from our counterparties.
Current report
In the first nine months of 2023, foreign currency contracts with an aggregate notional value of €500 million expired. Upon settlement of these foreign currency contracts, we paid €500 million ($550 million at the expiry spot rate) to our counterparties and received $612 million from our counterparties.
Removed paragraphs (22)
Previous report
Results for the first six months of 2024 compared to the first six months of 2023 improved driven in part by the absence of a non-cash goodwill impairment recognized in our Advanced Polymer Solutions (“APS”) segment in the first quarter of 2023. Technology results improved as more contracts reached significant milestones. Results for our Refining segment decreased as margins declined. An increase in loss from equity investments drove the decrease in our O&P-EAI segment results. Our O&P-Americas segment results decreased as margins were compressed by higher monomer costs.
Previous report
In May 2024, we divested our U.S. Gulf Coast-based Ethylene Oxide & Derivatives (“EO&D”) business for $700 million, while investing approximately $500 million to acquire a 35% interest in Saudi Arabia-based National Petrochemical Industrial Company (“NATPET”).
Previous report
Revenues remained relatively unchanged in the first six months of 2024 compared to the first six months of 2023. Higher volumes resulted in a 1% increase in revenues, which was partially offset by a 1% decrease in revenues due to lower average sales prices.
Previous report
First six months of 2024 versus first six months of 2023—Higher average polypropylene sales prices resulted in a 5% increase in revenue.
Previous report
EBITDA—EBITDA increased by $149 million, or 29%, in the second quarter of 2024 compared to the first quarter of 2024 and decreased by $29 million, or 2%, in the first six months of 2024 compared to the first six months of 2023.
Previous report
Second quarter of 2024 versus first quarter of 2024—Higher olefins results led to a 21% increase in EBITDA driven equally by higher volumes and margins resulting from the absence of planned and unplanned outages and higher ethylene prices, respectively. Higher polyolefins results led to a 7% increase in EBITDA primarily driven by an increase in margins due to increased polyethylene pricing despite higher ethylene costs and increased polypropylene spreads driven by lower propylene costs.
Previous report
Overview—EBITDA increased in the second quarter of 2024 compared to the first quarter of 2024, primarily due to higher olefins margins and improved results from our equity investments. EBITDA decreased in the first six months of 2024 relative to the first six months of 2023 primarily due to losses from equity investments.
Previous report
Revenue—Revenues increased by $97 million, or 4%, in the second quarter of 2024 compared to the first quarter of 2024 and decreased by $34 million, or 1%, in the first six months of 2024 compared to the first six months of 2023.
Previous report
EBITDA—EBITDA increased by $56 million, or 400%, in the second quarter of 2024 compared to the first quarter of 2024 and decreased by $77 million, or 48%, in the first six months of 2024 compared to the first six months of 2023.
Previous report
First six months of 2024 versus first six months of 2023—EBITDA increased 33% due to the recognition of the gain on sale of the EO&D business in the second quarter of 2023.
Previous report
Overview—EBITDA increased in the second quarter of 2024 relative to the first quarter of 2024 primarily due to higher margins. During the first quarter of 2023 we recognized a non-cash goodwill impairment charge of $252 million, no similar charges were recognized during the first six months of 2024.
Previous report
Revenue—Revenues decreased by $17 million, or 2%, in the second quarter of 2024 compared to the first quarter of 2024 and by $44 million, or 2%, in the first six months of 2024 compared to the first six months of 2023.
Previous report
EBITDA—EBITDA increased by $5 million or 14% in the second quarter of 2024 compared to the first quarter of 2024 and by $267 million or 139% in the first six months of 2024 compared to the first six months of 2023.
Previous report
Second quarter of 2024 versus first quarter of 2024—EBITDA increased by $5 million primarily due to higher margins reflecting higher average sales prices.
Previous report
Overview—EBITDA decreased in the second quarter of 2024 compared to the first quarter of 2024 and in the first six months of 2024 compared to the first six months of 2023 primarily due to lower margins.
Previous report
EBITDA—EBITDA decreased by $62 million, or 113%, in the second quarter of 2024 compared to the first quarter of 2024 and by $245 million, or 84%, in the first six months of 2024 compared to the first six months of 2023.
Previous report
Overview—EBITDA decreased in the second quarter of 2024 compared to the first quarter of 2024 and increased in the first six months of 2024 relative to the first six months of 2023 primarily due to licensing results.
Previous report
First six months of 2024 versus first six months of 2023—Higher licensing revenues resulting from more contracts with higher average values reaching significant milestones drove a 15% increase in revenue. Higher catalyst volumes resulted in a 3% increase in revenue primarily driven by higher demand. Higher average catalyst sales prices resulted in a 2% increase in revenues.
Previous report
EBITDA—EBITDA decreased by $34 million, or 29%, in the second quarter of 2024 compared to the first quarter of 2024 and increased by $50 million, or 33%, in the first six months of 2024 compared to the first six months of 2023.
Previous report
Second quarter of 2024 versus first quarter of 2024—Licensing results led to a 21% decrease in EBITDA as a result of more contracts with lower average values reaching significant milestones. Lower catalyst volumes resulted in a 7% decrease in EBITDA driven by lower polymer end-use demand.
Previous report
Operating, investing and financing activities of continuing operations, which are discussed below, are presented in the following table:
Previous report
In July 2024, we amended our credit agreement to increase our senior unsecured revolving credit facility from $3,250 million to $3,750 million and extend the maturity to July 2029.
Reworded paragraphs (61)
Previous wording
Results for the second quarter of 2024 improved compared to the first quarter of 2024. Second quarter volumes benefited from increased production and improving seasonal demand. Our Olefins and Polyolefins-Americas (“O&P-Americas”) segment volumes increased while favorable ethane and natural gas costs continued to provide support for margins. Our Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segment benefited from polyethylene margin expansion with increased utilization of advantaged liquified petroleum gas (“LPG”) feedstocks in Europe. Our Intermediates & Derivatives (“I&D”) segment benefited from improved oxyfuels volumes driven by production from our newest propylene oxide/tertiary butyl alcohol (“PO/TBA”) plant in Houston, Texas. Intermediate chemical margins and volumes improved, largely due to higher production from our acetyls assets. Refining margins fell due to lower crack spreads.
Current wording
Results for the third quarter of 2024 declined compared to the second quarter of 2024. In our Olefins and Polyolefins-Americas (“O&P-Americas”) segment, integrated polyethylene margins increased, driven by favorable ethane and natural gas costs coupled with higher polyethylene prices. Our third quarter volumes benefited from high cracker operating rates that captured improved margins on ethylene sales. In our Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segment, integrated polyethylene margins expanded due to lower feedstock costs and stable polyolefins prices. Margins for our Intermediates and Derivatives (“I&D”) and Refining segments fell due to lower crude oil prices and gasoline crack spreads.
Previous wording
During the quarter, we announced a strategic review of some of our European assets to position the company for a more sustainable and circular future by strengthening profitability and competitive advantage in the region.
Current wording
During the second quarter of 2024, we announced a strategic review of some of our European assets to position the company for a more sustainable and circular future by strengthening profitability and competitive advantage in the region.
Previous wording
We remain committed to our balanced and disciplined capital allocation strategy. During the first six months of 2024 we generated $1,234 million in cash from operating activities, invested $967 million in capital expenditures and returned $921 million to shareholders through dividend payments and share repurchases.
Current wording
We remain committed to our balanced and disciplined capital allocation strategy. During the first nine months of 2024 we generated $1,904 million in cash from operating activities, invested $1,335 million in capital expenditures and returned $1,400 million to shareholders through dividend payments and share repurchases.
Previous wording
Revenues—Revenues increased by $633 million, or 6%, in the second quarter of 2024 compared to the first quarter of 2024. Higher volumes, driven by improved availability and demand, resulted in a 4% increase in revenues. Higher average sales prices for many of our products resulted in a 2% increase in revenues.
Current wording
Revenues—Revenues decreased by $236 million, or 2%, in the third quarter of 2024 compared to the second quarter of 2024. Lower volumes, driven by lower demand and unplanned downtime in our refining segment, resulted in a 2% decrease in revenues. Lower average sales prices for many of our products resulted in a 1% decrease in revenues. Favorable foreign exchange impact resulted in a 1% increase in revenues.
Previous wording
Cost of Sales—Cost of sales increased by $385 million, or 4%, in the second quarter of 2024 compared to the first quarter of 2024 and by $179 million, or 1%, in the first six months of 2024 compared to the first six months of 2023, primarily driven by higher feedstock and energy costs, including the impact of our commodity hedges.
Current wording
Cost of Sales—Cost of sales decreased by $68 million, or 1%, in the third quarter of 2024 compared to the second quarter of 2024 and increased by $82 million, or less than 1%, in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by feedstock and energy costs, including the impact of our commodity hedges.
Previous wording
Impairments—During the first six months of 2023 we recognized a non-cash goodwill impairment charge of $252 million in our APS segment after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments.
Current wording
Impairments—During the first nine months of 2023 we recognized a non-cash goodwill impairment charge of $252 million in our APS segment after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments. Additionally, we recognized a non-cash impairment charge of $25 million related to capital project costs in our O&P-Americas segment.
Previous wording
SG&A Expenses—Selling, general and administrative (“SG&A”) expenses decreased by $19 million, or 4%, in the second quarter of 2024 compared to the first quarter of 2024 and increased by $53 million, or 7%, in the first six months of 2024 compared to the first six months of 2023, primarily attributable to changes in employee-related expenses.
Current wording
SG&A Expenses—Selling, general and administrative (“SG&A”) expenses remained relatively unchanged in the third quarter of 2024 compared to the second quarter of 2024 and increased by $79 million, or 7%, in the first nine months of 2024 compared to the first nine months of 2023, primarily attributable to an increase in employee-related expenses.
Previous wording
Operating Income—Operating income increased by $266 million, or 38%, in the second quarter of 2024 compared to the first quarter of 2024. Operating income in our I&D, O&P-Americas, O&P-EAI and APS segments increased by $180 million, $163 million, $41 million and $2 million, respectively. These increases were partially offset by decreases in our Refining and Technology segments of $81 million and $37 million, respectively.
Current wording
Operating Income—Operating income decreased by $168 million, or 17%, in the third quarter of 2024 compared to the second quarter of 2024. Operating income in our I&D, Refining, APS and Technology segments decreased by $182 million, $35 million, $20 million and $13 million, respectively. These decreases were partially offset by increases in our O&P-Americas and O&P-EAI segments of $77 million and $9 million, respectively.
Previous wording
Operating income decreased by $50 million, or 3%, in the first six months of 2024 compared to the first six months of 2023. Operating income in our Refining, I&D, O&P-EAI and O&P-Americas segments decreased by $216 million, $77 million, $56 million and $20 million, respectively. The decreases were partially offset by increases in our APS and Technology segments of $266 million and $50 million, respectively.
Current wording
Operating income decreased by $262 million, or 10%, in the first nine months of 2024 compared to the first nine months of 2023. Operating income in our I&D, Refining, and Technology segments decreased by $478 million, $359 million and $25 million, respectively. These decreases were partially offset by increases in our APS, O&P-Americas and O&P-EAI segments of $267 million, $250 million and $78 million, respectively.
Previous wording
(Loss) Income from Equity Investments—Loss from equity investments decreased by $8 million, or 30%, in the second quarter of 2024 compared to the first quarter of 2024 primarily driven by improved margins at our Asian joint ventures in our O&P-EAI segment.
Current wording
(Loss) Income from Equity Investments—Loss from equity investments remained relatively unchanged in the third quarter of 2024 compared to the second quarter of 2024.
Previous wording
Income from equity investments decreased by $51 million or 1020% in the first six months of 2024 compared to the first six months of 2023. Approximately half of the decrease was driven by lower margins at our Mexico joint venture in our O&P-Americas segment. The remainder of the change is primarily driven by a one-time gain on sale of an asset recognized by one of our European joint ventures in our O&P-EAI segment in the first quarter of 2023.
Current wording
Income from equity investments decreased by $77 million or 700% in the first nine months of 2024 compared to the first nine months of 2023. Approximately 60% of the decrease was driven by changes in our O&P-EAI segment, including the impact of a one-time gain on sale of an asset recognized by one of our European joint ventures in the first quarter of 2023. The remaining change was primarily driven by lower polypropylene margins at our Mexican joint venture in our O&P-Americas segment.
Previous wording
Income Taxes—Our effective income tax rate for the second quarter of 2024 was 21.2% compared to 20.4% for the first quarter of 2024. In the second quarter of 2024, the impact of changes in pre-tax income in countries with varying statutory tax rates and fluctuations in foreign exchange gains or losses increased our effective income tax rate by 2.0% and 0.9%, respectively. These increases were partially offset by the reduced relative impact of our tax rate drivers, primarily exempt income, due to increased earnings including the gain on the EO&D divestiture recognized in the second quarter of 2.1%.
Current wording
Income Taxes—Our effective income tax rate for the third quarter of 2024 was 18.8% compared to 21.2% for the second quarter of 2024. In the third quarter of 2024, the impact of changes in pre-tax income in countries with varying statutory tax rates, changes in return to accrual adjustments, and an increase in exempt income decreased our effective income tax rate by 2.8%, 2.8%, and 1.2%, respectively. These decreases were partially offset by fluctuations in foreign exchange gains or losses that increased our effective income tax rate by 4.3%.
Previous wording
Our effective income tax rate for the first six months of 2024 was 21.0% compared to 22.9% for the first six months of 2023. The lower effective tax rate for the first six months of 2024 was primarily due to the first quarter 2023 goodwill impairment, for which there was no tax benefit, of 2.8%, an audit settlement during the second quarter 2023 of 2.4%, and changes in foreign exchange gains or losses of 1.0%. These decreases were partially offset by a 4.1% increase in our effective income tax rate due to a decrease in exempt income.
Current wording
Our effective income tax rate for the first nine months of 2024 was 20.4% compared to 20.8% for the first nine months of 2023. The lower effective income tax rate for the first nine months of 2024 was primarily due to the first quarter 2023 goodwill impairment, for which there was no tax benefit, and an audit settlement during the second quarter 2023 of 1.7% and 1.6%, respectively. These decreases were partially offset by a 2.3% increase in our effective income tax rate due to a decrease in exempt income.
Previous wording
Comprehensive Income—Comprehensive income increased by $516 million in the second quarter of 2024 compared to the first quarter of 2024, and by $122 million in the first six months of 2024 compared to the first six months of 2023, primarily due to the increase in Net income. The components of Other comprehensive income (loss) are discussed below.
Current wording
Comprehensive Income—Comprehensive income decreased by $211 million in the third quarter of 2024 compared to the second quarter of 2024, primarily due to the decrease in Net income. Comprehensive income increased by $164 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to the net favorable impacts of unrealized changes in foreign currency translation adjustments. The components of Other comprehensive income (loss) are discussed below.
Previous wording
Financial derivatives designated as cash flow hedges, primarily our commodity swaps, led to an increase in Comprehensive income of $48 million and $43 million in the second quarter of 2024 compared to the first quarter of 2024 and in the first six months of 2024 compared to the first six months of 2023, respectively, reflecting commodity price volatility.
Current wording
Financial derivatives designated as cash flow hedges, primarily our commodity swaps, led to a decrease in Comprehensive income of $37 million and an increase of $38 million in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023, respectively, reflecting commodity price volatility.
Previous wording
Defined pension and postretirement benefit plans remained relatively unchanged in the second quarter of 2024 compared to the first quarter of 2024 and in the first six months of 2024 compared to the first six months of 2023.
Current wording
Defined pension and postretirement benefit plans remained relatively unchanged in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023.
Previous wording
Foreign currency translations remained relatively unchanged in the second quarter of 2024 compared to the first quarter of 2024. Foreign currency translations decreased Comprehensive income by $132 million in the first six months of 2024 compared to the first six months of 2023, primarily due to the strengthening of the U.S dollar relative to the euro offset by the effective portion of our net investment hedges.
Current wording
Foreign currency translations increased by $178 million and $88 million in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023, respectively, primarily due to the weakening of the U.S. dollar relative to the euro, partially offset by the effective portion of our net investment hedges.
Previous wording
Overview—EBITDA increased in the second quarter of 2024 compared to the first quarter of 2024, primarily due to improved olefins results. EBITDA decreased in the first six months of 2024 relative to the first six months of 2023 driven by lower polymer margins.
Current wording
Overview—EBITDA increased in the third quarter of 2024 compared to the second quarter of 2024, and in the first nine months of 2024 relative to the first nine months of 2023, primarily due to improved olefins margins.
Previous wording
We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the second and first quarter of 2024, and the first six months of 2024 and 2023, approximately 70% to 80% of the raw materials used in our North American crackers was ethane.
Current wording
We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the third and second quarter of 2024, and the first nine months of 2024 and 2023, approximately 75% of the raw materials used in our North American crackers was ethane.
Previous wording
The following table sets forth selected financial information for the O&P-Americas segment including (Loss) income from equity investments, which is a component of EBITDA:
Current wording
The following table sets forth selected financial information for the O&P-Americas segment including Income (loss) from equity investments, which is a component of EBITDA:
Previous wording
Revenue—Revenues for our O&P-Americas segment increased by $55 million, or 2% in the second quarter of 2024 compared to the first quarter of 2024 and by $262 million, or 5%, in the first six months of 2024 compared to the first six months of 2023.
Current wording
Revenue—Revenues for our O&P-Americas segment increased by $56 million, or 2% in the third quarter of 2024 compared to the second quarter of 2024 and by $363 million, or 4%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Revenue increased by 5% as a result of higher ethylene average sales prices driven by an increase in demand. Lower co-product sales volumes driven by planned outages led to a 3% decrease in revenue.
Current wording
Third quarter of 2024 versus second quarter of 2024—Revenue increased by 1% as a result of higher average sales prices driven by a decline in olefins supply in the industry. Higher sales volumes, driven by improved operating rates, contributed to a 1% increase in revenue.
Previous wording
First six months of 2024 versus first six months of 2023—Lower polyolefins results led to a 6% decrease in EBITDA primarily driven by lower margins reflecting higher monomer costs. EBITDA decreased 2% due to lower income from equity investments reflecting lower polypropylene margins at our joint venture in Mexico. Higher olefins results led to a 9% increase in EBITDA primarily due to higher margins driven by higher average ethylene sales prices and lower feedstock and energy costs.
Current wording
First nine months of 2024 versus first nine months of 2023—Higher olefins results led to a 23% increase in EBITDA driven by higher margins reflecting higher ethylene average sales prices and lower feedstock and energy costs. Lower polyolefins results led to a 5% decrease in EBITDA primarily driven by lower margins reflecting higher monomer costs. EBITDA decreased 2% due to lower income from equity investments reflecting lower polypropylene margins at our joint venture in Mexico.
Previous wording
Ethylene Raw Materials—In Europe, naphtha is the primary raw material for our ethylene production and represented approximately 60% to 65% of the raw materials used in the second and first quarter of 2024, and in the first six months of 2024 and 2023.
Current wording
Ethylene Raw Materials—In Europe, naphtha is the primary raw material for our ethylene production and represented approximately 55% to 65% of the raw materials used in the third and second quarter of 2024, and in the first nine months of 2024 and 2023.
Previous wording
Revenue—Revenues decreased by $33 million, or 17%, in the second quarter of 2024 compared to the first quarter of 2024 and increased by $58 million, or 20%, in the first six months of 2024 compared to the first six months of 2023.
Current wording
Revenue—Revenues decreased by $33 million, or 1%, in the third quarter of 2024 compared to the second quarter of 2024 and increased by $329 million, or 4%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Higher average sales prices resulted in a 3% increase in revenue as sales prices generally correlate with crude oil prices, which on average, increased compared to the first quarter of 2024. Higher volumes resulted in a revenue increase of 2% primarily due to an increase in demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%.
Current wording
Third quarter of 2024 versus second quarter of 2024—Lower volumes resulted in a revenue decrease of 2% primarily due to a decrease in demand. Lower average sales prices resulted in a 1% decrease as sales prices generally correlate with crude oil prices, which on average, decreased compared to the second quarter of 2024. Favorable foreign exchange impacts resulted in a revenue increase of 2%.
Previous wording
First six months of 2024 versus first six months of 2023—Lower average sales prices resulted in a decrease of 2% due to lower polyethylene demand. Higher volumes resulted in an increase of 1% due to the absence of planned and unplanned downtime.
Current wording
First nine months of 2024 versus first nine months of 2023—Higher average sales prices resulted in an increase of 2% due to increased demand. Higher volumes resulted in an increase of 2% due to higher demand.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Higher olefins results led to a 264% increase in EBITDA primarily driven by higher margins as a result of higher ethylene prices and lower costs of ethylene production driven by an increased use of advantaged feedstocks. Improved results from our equity investments led to an increase in EBITDA of 100% mainly attributable to improved margins at our Asian joint ventures.
Current wording
First nine months of 2024 versus first nine months of 2023—Higher polyolefins results led to a 73% increase in EBITDA primarily driven by higher margins as a result of higher average sales prices and lower energy costs. Improved olefins results resulted in a 21% increase in EBITDA primarily driven by higher margins as a result of higher ethylene prices and lower costs of ethylene production reflecting an increased use of advantaged feedstocks. Losses from our equity investments led to a decline in EBITDA of 40% driven by lower results from our Saudi Arabian and Asian joint ventures combined with the absence of a gain on sale of asset recognized by one of our joint ventures in Europe in the first quarter of 2023.
Previous wording
Overview—EBITDA increased in the second quarter of 2024 compared to the first quarter of 2024, and in the first six months of 2024 compared to the first six months of 2023 primarily due to recognition of a gain on the sale of the EO&D business. Higher volumes for oxyfuels and related products and intermediate chemicals further contributed to the increase in EBITDA in the second quarter of 2024 compared to the first quarter of 2024.
Current wording
Overview—EBITDA decreased in the third quarter of 2024 compared to the second quarter of 2024, primarily due to the absence of the gain on the sale of the EO&D business recognized in the second quarter of 2024. EBITDA decreased in the first nine months of 2024 compared to the first nine months of 2023 primarily due to lower margins for oxyfuels and related products, partially offset by the recognition of a gain on the sale of the EO&D business in the second quarter of 2024.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Sales volumes increased due to the absence of unplanned downtime resulting in a 10% increase in revenue. Lower average sales prices resulted in a 2% decrease in revenue driven primarily by MTBE blend premiums reflecting increased market supply.
Current wording
Third quarter of 2024 versus second quarter of 2024—Lower average sales prices resulted in a 6% decrease in revenue driven primarily by lower crude and gasoline crack spreads. Sales volumes increased due to the absence of unplanned downtime resulting in a 1% increase in revenue. Favorable foreign exchange impact resulted in a 1% increase in revenue.
Previous wording
First six months of 2024 versus first six months of 2023—Sales volumes increased resulting in a 4% increase in revenue due to additional PO/TBA production. Lower average sales prices resulted in a 3% decrease in revenue driven by oxyfuels and related products as a result of lower gasoline crack spreads.
Current wording
First nine months of 2024 versus first nine months of 2023—Lower average sales prices resulted in a 6% decrease in revenue driven by oxyfuels and related products as a result of lower gasoline crack spreads and blend premiums. Sales volumes increased resulting in a 2% increase in revenue due to additional PO/TBA production.
Previous wording
Second quarter of 2024 versus first quarter of 2024—In the second quarter of 2024 we recognized a $293 million gain on the sale of our EO&D business which resulted in a 94% increase in EBITDA. Improved oxyfuels and related products results led to an EBITDA increase of 29% as volumes increased due to the absence of unplanned downtime coupled with increased production at our newest PO/TBA asset. Intermediate chemicals results improved, resulting in a 17% increase in EBITDA primarily driven by higher volumes reflecting the absence of unplanned downtime.
Current wording
Third quarter of 2024 versus second quarter of 2024—In the second quarter of 2024 we recognized a $293 million gain on the sale of our EO&D business. The absence of a similar gain in the third quarter resulted in a 37% decrease in EBITDA. Oxyfuels and related products results led to an EBITDA decrease of 15% as margins decreased reflecting lower gasoline crack spreads.
Previous wording
Revenue—Revenues increased by $255 million, or 12%, in the second quarter of 2024 compared to the first quarter of 2024 and decreased by $214 million, or 5%, in the first six months of 2024 compared to the first six months of 2023.
Current wording
Revenue—Revenues decreased by $52 million, or 5%, in the third quarter of 2024 compared to the second quarter of 2024 and by $47 million, or 2%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Sales volumes decreased resulting in a 4% decrease in revenue stemming from lower demand. Average sales prices increased resulting in a 2% increase in revenue reflecting favorable product mix.
Current wording
Third quarter of 2024 versus second quarter of 2024—Sales volumes decreased resulting in a 6% decrease in revenue stemming from lower demand. Favorable foreign exchange impacts resulted in a revenue increase of 1%.
Previous wording
First six months of 2024 versus first six months of 2023—Average sales prices decreased resulting in a 5% decrease in revenue. Sales volumes increased resulting in a 3% increase in revenue due to increased recycled compounds capacity.
Current wording
First nine months of 2024 versus first nine months of 2023—Average sales prices decreased resulting in a 3% decrease in revenue. Sales volumes increased resulting in a 1% increase in revenue due to increased recycled compounds capacity.
Previous wording
EBITDA—EBITDA increased by $482 million, or 154%, in the second quarter of 2024 compared to the first quarter of 2024 and by $208 million, or 23%, in the first six months of 2024 compared to the first six months of 2023.
Current wording
EBITDA—EBITDA decreased by $21 million or 53% in the third quarter of 2024 compared to the second quarter of 2024 and increased by $268 million or 154% in the first nine months of 2024 compared to the first nine months of 2023.
Previous wording
First six months of 2024 versus first six months of 2023—During the first quarter of 2023 we recognized a non-cash goodwill impairment charge of $252 million after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments. The absence of a similar impairment charge in the first six months of 2024 was the primary driver for the improved EBITDA results.
Current wording
First nine months of 2024 versus first nine months of 2023—During the first nine months of 2023 we recognized a non-cash goodwill impairment charge of $252 million after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments. The absence of a similar impairment charge in the first nine months of 2024 was the primary driver for the improved EBITDA results.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Higher sales volumes due to the absence of planned and unplanned outages led to an 8% increase in revenue. Higher product prices led to a revenue increase of 4% due to an average Brent crude oil price increase of approximately $3.15 per barrel.
Current wording
Third quarter of 2024 versus second quarter of 2024—Lower sales volumes due to unplanned outages at our fluid catalytic cracking unit led to a 7% decrease in revenue. Lower product prices led to a revenue decrease of 5% due to an average Brent crude oil price decrease of approximately $6.46 per barrel.
Previous wording
First six months of 2024 versus first six months of 2023—Lower product prices led to a revenue decrease of 4% due to lower average sales prices reflecting lower margins on refined products. Sales volumes decreased resulting in a 1% decrease in revenue due to slightly lower operating rates.
Current wording
First nine months of 2024 versus first nine months of 2023—Lower product prices led to a revenue decrease of 8% due to lower average sales prices reflecting lower margins on refined products. Sales volumes decreased resulting in a 3% decrease in revenue due to lower operating rates.
Previous wording
Second quarter of 2024 versus first quarter of 2024—Lower margins resulted in an EBITDA decrease of 178% in the second quarter of 2024 due to a decrease in the Maya 2-1-1 industry crack spread of approximately $4.57 per barrel to $29.13 per barrel and a decrease in byproduct margins partially offset by the impact of commodity hedges. Higher volumes, as a result of the absence of planned and unplanned downtime in the second quarter of 2024, resulted in a 76% increase in EBITDA.
Current wording
Third quarter of 2024 versus second quarter of 2024—Lower margins resulted in an EBITDA decrease of 486% in the third quarter of 2024 primarily due to a decrease in the Maya 2-1-1 industry crack spread of approximately $3.49 per barrel to $25.64 per barrel driven by lower gasoline crack spreads driven by lower demand and high industry operating rates. An increase in costs incurred related to our planned exit from the refining business in the third quarter of 2024 compared to the second quarter of 2024 resulted in a 214% decrease in EBITDA.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
First nine months of 2024 versus first nine months of 2023—Lower licensing revenues resulting from contracts with lower average values reaching significant milestones drove a 3% decrease in revenue.
Current report — wording carried from elsewhere
In May 2023, we issued $500 million of 5.625% guaranteed notes due 2033.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
First six months of 2024 versus first six months of 2023—Losses from our equity investments led to a decline in EBITDA of 19% primarily driven by the absence of a gain on sale of asset recognized by one of our joint ventures in Europe in the first quarter of 2023.