LyondellBasell Industries NV
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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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
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Financial Instruments and Fair Value Measurements
- Financial Instruments and Fair Value Measurements
We are exposed to market risks, such as changes in commodity pricing, interest rates and currency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative contracts pursuant to our risk management policies.
Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:
| Fair Value | |||
|---|---|---|---|
| Millions of dollars | September 30, 2024 | December 31, 2023 | Balance Sheet Classification |
| Assets– | |||
| Derivatives designated as hedges: | |||
| Commodities | $— | $1 | Prepaid expenses and other current assets |
| Foreign currency | 40 | 44 | Prepaid expenses and other current assets |
| Foreign currency | 20 | 45 | Other assets |
| Interest rates | 27 | 38 | Prepaid expenses and other current assets |
| Derivatives not designated as hedges: | |||
| Commodities | 52 | 98 | Prepaid expenses and other current assets |
| Commodities | 3 | — | Other assets |
| Foreign currency | 2 | 3 | Prepaid expenses and other current assets |
| Total | $144 | $229 | |
| Liabilities– | |||
| Derivatives designated as hedges: | |||
| Commodities | $52 | $109 | Accrued and other current liabilities |
| Commodities | 22 | 33 | Other liabilities |
| Foreign currency | 24 | 40 | Accrued and other current liabilities |
| Foreign currency | 38 | 32 | Other liabilities |
| Interest rates | 33 | 31 | Accrued and other current liabilities |
| Interest rates | 120 | 172 | Other liabilities |
| Derivatives not designated as hedges: | |||
| Commodities | 27 | 52 | Accrued and other current liabilities |
| Foreign currency | 10 | 10 | Accrued and other current liabilities |
| Total | $326 | $479 | |
The financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.
Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our short-term precious metal financings and long-term debt:
| September 30, 2024 | December 31, 2023 | |||
|---|---|---|---|---|
| Millions of dollars | Carrying Value | Fair Value | Carrying Value | Fair Value |
| Precious metal financings | $121 | $130 | $117 | $114 |
| Long-term debt | 11,120 | 10,197 | 10,316 | 9,225 |
| Total | $11,241 | $10,327 | $10,433 | $9,339 |
The financial instruments in the table above are classified as Level 2. Our other financial instruments classified within Current assets and Current liabilities have a short maturity and their carrying value approximates fair value.
Derivative Instruments:
Commodity Prices—The following table presents the notional amounts of our outstanding commodity derivative instruments:
| Notional Amount · Unit of Measure · Maturity Date | ||||
|---|---|---|---|---|
| Millions of units · September 30, 2024 · December 31, 2023 | ||||
| Derivatives designated as hedges: | ||||
| Natural gas | 70 | 72 | MMBtu | 2024 to 2027 |
| Ethane | 16 | 18 | Bbls | 2024 to 2026 |
| Power | 1 | 1 | MWhs | 2024 to 2027 |
| Refined products | — | 1 | Bbls | 2024 |
| Derivatives not designated as hedges: | ||||
| Crude oil | 3 | 12 | Bbls | 2024 |
| Ethane | 1 | — | Bbls | 2024 |
| Refined products | 11 | 16 | Bbls | 2024 to 2026 |
| Precious metals | — | 1 | Troy Ounces | 2024 to 2025 |
| Renewable Identification Numbers | 15 | 59 | RINs | 2024 |
Interest Rates—The following table presents the notional amounts of our outstanding interest rate derivative instruments:
| Notional Amount | |||
|---|---|---|---|
| Millions of dollars | September 30, 2024 | December 31, 2023 | Maturity Date |
| Cash flow hedges | $— | $200 | 2024 |
| Fair value hedges | 2,174 | 2,171 | 2025 to 2031 |
Foreign Currency Rates—The following table presents the notional amounts of our outstanding foreign currency derivative instruments:
| Notional Amount | |||
|---|---|---|---|
| Millions of dollars | September 30, 2024 | December 31, 2023 | Maturity Date |
| Net investment hedges | $3,274 | $3,289 | 2024 to 2030 |
| Cash flow hedges | 300 | 1,150 | 2027 |
| Not designated | 998 | 555 | 2024 to 2025 |
Impact on Earnings and Other Comprehensive Income—The following tables summarize the pre-tax effect of derivative instruments recorded in Accumulated other comprehensive income (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:
| Effects of Financial Instruments | |||||||
|---|---|---|---|---|---|---|---|
| Three Months Ended September 30, | |||||||
| Balance Sheet · Income Statement | |||||||
| Gain (Loss)Recognized inAOCI · Gain (Loss) Reclassified to Income from AOCI · Additional Gain(Loss) Recognizedin Income · Income Statement | |||||||
| Millions of dollars | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | Classification |
| Derivatives designated as hedges: | |||||||
| Commodities | $— | $— | $2 | $— | $— | $— | Sales and other operating revenues |
| Commodities | (22) | (24) | 34 | 6 | — | — | Cost of sales |
| Foreign currency | (143) | 83 | 13 | (27) | 15 | 18 | Interest expense |
| Interest rates | — | 39 | 1 | 1 | 45 | (47) | Interest expense |
| Derivatives not designated as hedges: | |||||||
| Commodities | — | — | — | — | 53 | 10 | Sales and other operating revenues |
| Commodities | — | — | — | — | (41) | (34) | Cost of sales |
| Foreign currency | — | — | — | — | (39) | 5 | Other income (expense), net |
| Total | $(165) | $98 | $50 | $(20) | $33 | $(48) | |
| Effects of Financial Instruments | |||||||
|---|---|---|---|---|---|---|---|
| Nine Months Ended September 30, | |||||||
| Balance Sheet · Income Statement | |||||||
| Gain (Loss)Recognized inAOCI · Gain (Loss) Reclassified to Income from AOCI · Additional Gain(Loss) Recognizedin Income · Income Statement | |||||||
| Millions of dollars | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | Classification |
| Derivatives designated as hedges: | |||||||
| Commodities | $(3) | $— | $4 | $— | $— | $— | Sales and other operating revenues |
| Commodities | (39) | (32) | 107 | 25 | — | — | Cost of sales |
| Foreign currency | (23) | 20 | (14) | (13) | 50 | 56 | Interest expense |
| Interest rates | 11 | 37 | 3 | 4 | (16) | (77) | Interest expense |
| Derivatives not designated as hedges: | |||||||
| Commodities | — | — | — | — | (16) | (24) | Sales and other operating revenues |
| Commodities | — | — | — | — | 36 | (7) | Cost of sales |
| Foreign currency | — | — | — | — | (15) | (19) | Other income (expense), net |
| Total | $(54) | $25 | $100 | $16 | $39 | $(71) | |
As of September 30, 2024, on a pre-tax basis, $4 million is scheduled to be reclassified from AOCI as an increase to Interest expense over the next twelve months.
Other Financial Instruments:
Cash and Cash Equivalents—At September 30, 2024 and December 31, 2023, we had marketable securities classified as Cash and cash equivalents of $1,710 million and $2,432 million, respectively.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.