Asset Structure Analysis
LyondellBasell Industries N.V.’ s total assets were $37 billion and $36.4 billion as of December 31, 2023 and December 31, 2022, respectively.
As of December 31, 2023, the company had property, plant and equipment, net of $15.5 billion, operating lease assets of $1.5 billion, equity investments of $3.9 billion and goodwill of 1.65 billion.
Property, plant and equipment, net accounted for 41.9% of total assets.
Operating lease assets consisted of 4% of total assets.
Equity investments made up 10.5% of total assets.
Goodwill constituted 4.5% of total assets.
The company reported total current assets of $13.2 billion, comprising 35.7% of total assets.
The company held $3.4 billion in cash and cash equivalents, accounting for 9.2% of total assets.
Liquidity and Solvency
Total current liabilities were $7.15 billion as of December 31, 2023.
The current ratio was 1.85 for 2023 with strong liquidity.
Total liabilities were about $24 billion as of December 31, 2023.
The debt ratio was 64.8% of total assets.
Given that the ratio of fixed assets to total assets is very huge , the real debt ratio is higher than the 64.8% or the 64.8% is not a low number.
A lot of liabilities need a lot of cash flow to support.
Net cash provided by operating activities was $4.9 billion, $6.1 billion and $7.7 billion for 2023, 2022 and 2021, respectively.
Profitability Analysis
Sales and other operating revenues were $41.1 billion, $50.5 billion and $46.2 billion in 2023, 2022 and 2021, respectively.
The sales and other operating revenues in 2023 were down 18.6% year-on-year.
The sales and other operating revenues in 2022 were up 9.4% year on year.
Cost of sales were $35.8 billion, $43.8 billion and $37.4 billion in 2023, 2022 and 2021, respectively.
Gross profit margin was 12.9%, 13.3% and 19% for 2023, 2022 and 2021, respectively.
Operating income was $3 billion, $5.1 billion and $6.8 billion in 2023, 2022 and 2021, respectively.
Operating profit margin was 7.3%, 10% and 14.7% for 2023, 2022 and 2021, respectively.
Net income was $2.1 billion, $3.9 billion and $5.6 billion in 2023, 2022 and 2021, respectively.
Net profit margin was 5.1%, 7.7% and 12.1% in 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Net cash provided by operating activities was $4.9 billion, $6.1 billion and $7.7 billion in 2023, 2022 and 2021, respectively.
Expenditures were $1.5 billion, $1.9 billion and $2 billion in 2023, 2022 and 2021, respectively.
The free cash flow was $3.4 billion, $4.2 billion and $5.7 billion in 2023, 2022 and 2021, respectively.
LyondellBasell Industries N.V. returned capital to shareholders in cash dividends.
Dividends paid were $1.6 billion, $3.2 billion and $1.5 billion in 2023, 2022 and 2021, respectively.
LyondellBasell Industries N.V. ‘s operating performance for Q1
Sales and other operating revenues were $9.9 billion and $10.2 billion in Q1 2024 and Q1 2023, respectively.
Operating income was $704 million and $713 million in Q1 2024 and Q1 2023, respectively.
Net income was $473 million and $474 million in Q1 2024 and Q1 2023, respectively.
Conclusion
LyondellBasell Industries N.V.’ s dividends yield is about 5.64%.
We think that the dividends yield of 5.64% is unattractive for buying the stock, and the stock price increase is almost unlikely.
The content is for reference only and does not constitute investment advice.
Introduction
LyondellBasell Industries N.V. is a global, independent chemical company and was incorporated, as a Naamloze Vennootschap, under Dutch law on October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “our,” “us” and “LyondellBasell” are used in this report to refer to the businesses of LyondellBasell Industries N.V. and its consolidated subsidiaries.
We participate globally across the petrochemical value chain and are an industry leader in many of our product lines. Our chemicals businesses consist primarily of large processing plants that convert large volumes of liquid and gaseous hydrocarbon feedstocks into plastic resins and other chemicals. Our chemical products tend to be basic building blocks for other chemicals and plastics. Our plastic products are used in large volumes as well as smaller specialty applications. Our customers use our plastics and chemicals to manufacture a wide range of products that people use in their everyday lives including food packaging, home furnishings, automotive components, paints and coatings. Our refining business consists of our Houston refinery, which processes crude oil into refined products such as gasoline and distillates. We also develop and license chemical and polyolefin process technologies and manufacture and sell polyolefin catalysts.
Our financial performance is influenced by the supply and demand for our products, the cost and availability of feedstocks and commodity products, global and regional production capacity, our operational efficiency and our ability to control costs. We have a strong operational focus and, as a large volume producer of commodities, continuously strive to differentiate ourselves through safe, reliable and low-cost operations in all of our businesses. We purchase large quantities of natural gas, electricity and steam which we use as energy to fuel our facilities and purchase large quantities of natural gas liquids and crude oil derivatives which we use as feedstocks. The relatively low cost of natural gas-derived raw materials in the U.S. versus the global cost of crude oil-derived raw materials has had a significant positive influence on the profitability of our North American operations.
