lyb-20230203

NEWS RELEASE

FOR IMMEDIATE RELEASE

HOUSTON and LONDON, February 3, 2023

LyondellBasell Reports 2022 Earnings

Fourth Quarter 2022 Highlights

•Net Income: $353 million, $427 million excluding identified items(a)

•Diluted earnings per share: $1.07 per share, $1.29 per share excluding identified items

•EBITDA: $792 million, $865 million excluding identified items

•Delivered $1.6 billion of cash from operating activities

•Increased 2030 scope 1 and scope 2 greenhouse gas emission reduction target relative to 2020 levels and established a 2030 scope 3 reduction target to align with science-based guidance

•Advanced plans for plastic waste sorting and recycling facilities in U.S., Germany, India and China

•Began engineering on our first commercial advanced recycling plant utilizing LyondellBasell's proprietary MoReTec technology

•Received EcoVadis Gold Medal for sustainability performance with a 91st percentile ranking among more than 75,000 rated companies

Full Year 2022 Highlights

Strong financial performance from a diverse business portfolio

•Net Income: $3.9 billion, $4.1 billion excluding identified items

•Diluted earnings per share: $11.81 per share, $12.46 per share excluding identified items

•EBITDA: $6.3 billion, $6.5 billion excluding identified items

•Achieved 16% return on invested capital

•Delivered $6.1 billion in cash from operating activities

Launched comprehensive strategy review

•Established new organizational structure to capture value and accelerate sustainable growth

•Formed Circular and Low Carbon Solutions business unit to focus on rapidly growing demand for recycled and renewable-based solutions

•Took decisive action on the business portfolio with new partnerships, progress towards completion of new PO/TBA capacity, and plans to exit the refining business

•Launched value enhancement program targeting $750 million in recurring annual EBITDA by the end of 2025

Delivered strong shareholder returns

•Increased quarterly dividend by 5%; 12th consecutive year of annual dividend growth

•Paid $9.90 per share in regular and special dividends

•Returned $3.7 billion to shareholders in the form of dividends and share repurchases

(a) See “Information Related to Financial Measures” for a discussion of the Company’s use of non-GAAP financial measures and Table 2, Table 3 and Table 4 for reconciliations of these measures to the nearest GAAP measures. “Identified items” include adjustments for lower of cost or market (“LCM”), impairments and refinery exit costs.

Comparisons with the prior quarter, fourth quarter 2021 and year ended 2021 are available in the following table:

Table 1 - Earnings Summary


Millions of U.S. dollars (except share data)	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Sales and other operating revenues	$10,206	$12,250	$12,830	$50,451	$46,173
Net income	353	$572	726	3,889	5,617
Diluted earnings per share	1.07	1.75	2.18	11.81	16.75
Weighted average diluted share count	327	327	332	328	334
EBITDA (a)	792	1,108	1,395	6,301	8,689

Excluding Identified Items (a)


Net income	$427	$642	$1,207	$4,102	$6,098
Diluted earnings per share	1.29	1.96	3.63	12.46	18.19

Impairments, pre-tax	—	—	624	69	624
Refinery exit costs, pre-tax	95	92	—	187	—
EBITDA	865	1,192	2,019	6,527	9,313

LyondellBasell Industries (NYSE: LYB) today announced net income for the fourth quarter 2022 of $353 million, or $1.07 per share. During the quarter, the company recognized identified items of $74 million, net of tax. These items, which impacted earnings by $0.22 per share, were related to costs incurred from plans to exit the refining business. Fourth quarter 2022 EBITDA was $792 million, or $865 million excluding identified items. In addition to the identified items, non-cash LIFO inventory valuation charges impacted pre-tax quarterly results by approximately $90 million.

Full year 2022 net income was $3.9 billion, or $11.81 per share. During the year, the company recognized identified items of $213 million, net of tax. These items, which impacted full year earnings by $0.65 per share, included a non-cash impairment charge related to the sale of our Australian polypropylene business and costs incurred from plans to exit the refining business. Full year 2022 EBITDA was $6.3 billion, or $6.5 billion excluding identified items. In addition to the identified items, full year 2022 EBITDA was further impacted by a $103 million pre-tax pension settlement charge.

“In the fourth quarter, our businesses delivered excellent cash generation which enabled us to confidently advance our strategic priorities to build a stronger and more sustainable future for LyondellBasell. Our strategy development and implementation is proceeding well and has been supported by the creation of the new organizational structure. We aligned our goals for 2030 greenhouse gas emission reductions with science-based guidance by increasing our scope 1 and scope 2 emission reduction target to 42 percent and establishing a new scope 3 reduction target of 30 percent,” said Peter Vanacker, LyondellBasell Chief Executive Officer.

During the fourth quarter, price and margin pressures from new supply, customer destocking and weak demand in petrochemical markets stabilized at levels seen toward the end of the third quarter. The company reduced operating rates to match lower demand and decreased working capital by more than $700 million during the fourth quarter. Lower product prices were partially offset by moderating energy and feedstock costs. Margins for products from LyondellBasell's oxyfuels and refining businesses remained well above typical fourth quarter levels.

“During 2022, LyondellBasell's balanced business portfolio, excellent cash generation and strong, investment-grade balance sheet enabled the company to successfully navigate through challenging market conditions while continuing to provide significant returns for our shareholders,” said Vanacker.

Over the full year, petrochemical markets were pressured by high and volatile energy and feedstock costs as well as softer global demand. The company's Olefins & Polyolefins businesses encountered headwinds from reduced demand in Europe and Asia as well as global capacity additions. Lower consumer demand for durable goods compressed margins for several products in the Intermediates & Derivatives segment. Oxyfuels and refining margins benefited from increased global mobility and favorable markets.

LyondellBasell generated $6.1 billion in cash from operating activities during 2022. The company remains committed to a disciplined approach to capital allocation. In 2022, approximately $1.9 billion was reinvested in the business and $3.7 billion was returned to shareholders through the quarterly dividend, a special dividend and share repurchases.

In 2022, the company launched a comprehensive review of our strategy. Initial strategic actions included the decision to exit the refining business and the sale of the Australian polypropylene business. The Circular & Low Carbon Solutions business unit was created to accelerate progress in capturing value from serving the rapidly growing customer demand for recycled and renewable solutions. Organizational and cultural initiatives are being implemented to increase focus on agility, accountability and value generation. In October, the company introduced a value enhancement program that is expected to generate $750 million in recurring annual EBITDA by the end of 2025. Progress on this program is on track.

OUTLOOK

In January, demand from consumer packaging, oxyfuels and refining markets remained stable. Moderating energy and feedstock costs are providing some offsets to tepid global demand. Nonetheless, challenging market conditions are expected to persist through the first half of 2023. LyondellBasell is aligning production with global demand trends and expects first quarter average utilization rates for the assets operated by the company to be 80% for each of the Olefins & Polyolefins and Intermediates & Derivatives segments. Start-up activities for the new PO/TBA capacity in Houston remain on track for the end of the first quarter 2023. The company expects typical spring and summer seasonal demand improvements and is prepared to leverage any increased economic activity in China as the year progresses.

“LyondellBasell continues on its journey to build a resilient strategy that provides sustainable growth and value for the company, its shareholders and our customers. At our Capital Markets Day on March 14th, we will share our strategy aimed at extending the company's track record of cash generation and strong returns for shareholders,” said Vanacker.

CONFERENCE CALL

LyondellBasell will host a conference call February 3 at 11 a.m. EST. Participants on the call will include Chief Executive Officer Peter Vanacker, Executive Vice President and Chief Financial Officer Michael McMurray, Executive Vice President of Global Olefins and Polyolefins Ken Lane, Executive Vice President of Intermediates and Derivatives and Refining Kim Foley, Executive Vice President of Advanced Polymer Solutions Torkel Rhenman and Head of Investor Relations David Kinney. For event access, the toll-free dial-in number is 1-877-407-8029, international dial-in number is 201-689-8029 or click the CallMe link. 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 February 3 until March 3. The replay toll-free dial-in numbers are 1-877-660-6853 and 201-612-7415. The access ID for each is 13734290.

ABOUT LYONDELLBASELL

As a leader in the global chemical industry, LyondellBasell (NYSE: LYB) strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of waste and decarbonization. In 2022, LyondellBasell was named as one of FORTUNE Magazine's “World's Most Admired Companies” for the fifth consecutive year. For more information, please visit www.LyondellBasell.com or follow @LyondellBasell on LinkedIn.

FORWARD-LOOKING STATEMENTS

The statements in this release 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 and impacts related to the extent and duration of the pandemic; 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 operating rates; our ability to manage costs; 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; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers to meet our targets and forecasts, and reduce our emissions and achieve net zero emissions by the time set in our goals; our ability to procure energy from renewable sources; the successful shut down and closure

of the Houston Refinery, including within the expected timeframe; our ability to successfully implement initiatives identified pursuant to our value enhancement program and generate anticipated earnings; 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 repay 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” section of our Form 10-K for the year ended December 31, 2021, 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.

This release contains time sensitive information that is accurate only as of the date hereof. Information contained in this release is unaudited and is subject to change. We undertake no obligation to update the information presented herein 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, and EBITDA, net income and diluted EPS exclusive of identified items 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.

We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation and 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 identified items. Identified items include adjustments for “lower of cost or market" (“LCM”), impairment and refinery exit costs. 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, within the same fiscal year as the charge, 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. In April 2022 we announced our decision to cease operation of our Houston Refinery no later than the end of 2023. In connection with exiting the refinery business, we began to incur costs primarily consisting of accelerated lease amortization costs, personnel related costs, accretion of asset retirement obligations and depreciation of asset retirement costs.

Return on invested capital is a measure commonly used by investors to evaluate the efficiency at which a company's capital is allocated to generate income during a particular period. Return on invested capital means income from continuing operations, adjusted for interest expense, net of tax and items affecting comparability between periods divided by a two-year average of invested capital adjusted for items affecting comparability.

These measures as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. 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.

Additional operating and financial information may be found on our website at www.LyondellBasell.com/investorrelations. These measures as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated.

###

Source: LyondellBasell Industries

Media Contact: Kimberly Windon +1 713-309-7575

Investor Contact: David Kinney +1 713-309-7141


Table 2 - Reconciliations of Net Income to Net Income Excluding Identified Items and to EBITDA Including and Excluding Identified Items
	Three Months Ended						Year Ended
(Millions of U.S. dollars)	December 31, 2022		September 30, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Net income	$	353	$	572	$	726	$	3,889	$	5,617
add: Identified Items

Impairments, after-tax (a)	—		—		481		69		481
Refinery exit costs, after-tax (b)	74		70		—		144		—
Net income excluding identified items	$	427	$	642	$	1,207	$	4,102	$	6,098

Net income	$	353	$	572	$	726	$	3,889	$	5,617
Loss from discontinued operations, net of tax	2		1		5		5		6
Income from continuing operations	355		573		731		3,894		5,623
Provision for income taxes	34		154		135		882		1,163
Depreciation and amortization (c)	334		318		377		1,267		1,393
Interest expense, net	69		63		152		258		510
add: Identified Items

Impairments (a)	—		—		624		69		624
Refinery exit costs (d)	73		84		—		157		—
EBITDA excluding identified items	865		1,192		2,019		6,527		9,313
less: Identified items

Impairments (a)	—		—		(624)		(69)		(624)
Refinery exit costs (d)	(73)		(84)		—		(157)		—
EBITDA	$	792	$	1,108	$	1,395	$	6,301	$	8,689

(a) The fourth quarter and year ended December 31, 2021 reflects impairment charges related to the Houston Refinery. The year ended December 31, 2022 reflects impairment charges related to the sale of our Australian polypropylene business.

(b) Refinery exit costs, after-tax, include accelerated lease amortization costs of $43 million, $27 million, and $70 million, personnel related costs of $12 million, $37 million, and $49 million, accretion of asset retirement obligations of $2 million, less than $1 million, and $2 million, and depreciation of asset retirement costs of $17 million, $6 million, and $23 million, for the three months ended December 31, 2022 and September 30, 2022, and the year ended December 31, 2022, respectively.

(c) Depreciation and amortization includes depreciation of asset retirement costs of $22 million, $8 million and $30 million expensed during the three months ended December 31, 2022 and September 30, 2022, and the year ended December 31, 2022, respectively, in connection with exiting the Refining business.

(d) Refinery exit costs, include accelerated lease amortization costs of $55 million, $36 million, and $91 million, personnel related costs of $16 million, $48 million, and $64 million and accretion of asset retirement obligations of $2 million, less than $1 million, and $2 million during the three months ended December 31, 2022 and September 30, 2022, and the year ended December 31, 2022, respectively.


Table 3 - Reconciliation of Diluted EPS to Diluted EPS Excluding Identified Items
	Three Months Ended		Year Ended
	December 31, 2022			September 30, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Diluted earnings per share	$	1.07		$	1.75	$	2.18	$	11.81	$	16.75
Add: Identified items

Impairments	—			—		1.45		0.21		1.44
Refinery exit costs	0.22			0.21		—		0.44		—

Diluted earnings per share excluding identified items	$	1.29		$	1.96	$	3.63	$	12.46	$	18.19


Table 4 - Return on Invested Capital
	Year Ended
(Millions of U.S. dollars)	December 31, 2021		December 31, 2022
Net income			$	3,889
Loss from discontinued operations, net of tax			5
Income from continuing operations			3,894
Add:
Interest expense, net			258
Tax effect			(52)
Interest expense, net, after tax			206

Special items effecting comparability:

Refinery exit costs, after tax (a)			144
Total special items			144
Adjusted income from continuing operations			$	4,244

Divided by:
Average adjusted invested capital:
Shareholders’ equity	$	11,858	$	12,615
Long-term debt	11,246		10,540
Long-term operating lease liabilities	1,649		1,510
Current operating lease liabilities	336		344
Current debt:
Current maturities of long-term debt	6		432
Short-term debt	362		349
Invested capital	25,457		25,790
Cumulative effect of adjustments, after tax (b)	927		1,071
Adjusted invested capital	$	26,384	$	26,861

2-Yr average adjusted invested capital			$	26,623
Return on invested capital			16		%

(a) Refinery exit costs, after-tax, include accelerated lease amortization costs, personnel related costs, accretion of asset retirement obligations and depreciation of asset retirement costs of $70 million, $49 million, $2 million and $23 million, respectively.

(b) Cumulative effect of adjustments, after tax, includes impairments, after tax, of $446 million, $481 million recognized in 2020 and 2021, respectively, and refinery exit costs, after tax, recognized in 2022.

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.

This information should be read in conjunction with our Earnings Release for the period ended December 31, 2022, including the forward-looking statements and information related to financial measures.

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

Table 1 - O&P-Americas Financial Overview


Millions of U.S. dollars	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Operating income	$195	$391	$1,067	$2,082	$4,552
EBITDA	359	559	1,262	2,734	5,273

Three months ended December 31, 2022 versus three months ended September 30, 2022 - EBITDA decreased $200 million versus the third quarter 2022. Fourth quarter 2022 results decreased approximately $15 million due to last-in, first out (LIFO) inventory valuation charges relative to the third quarter 2022. Compared to the prior period, olefins results remained relatively unchanged with higher margins offset by lower volumes. The company's ethylene crackers operated at 80% of capacity with the raw materials being about 65% ethane and 25% other natural gas liquids. Polyolefins results decreased approximately $190 million driven by lower polyolefins spreads due to new market capacity and customer destocking.

Three months ended December 31, 2022 versus three months ended December 31, 2021 - EBITDA decreased $903 million versus the fourth quarter 2021. Fourth quarter 2022 results decreased approximately $15 million due to LIFO inventory valuation charges relative to the prior period. Olefins results decreased approximately $445 million driven by lower margins and volumes. Ethylene margins decreased driven by lower ethylene sales prices. Ethylene volumes declined due to reduced utilization. Combined polyolefin results decreased approximately $430 million due to lower polyolefins spreads resulting from soft demand and new market supply.

Full year ended December 31, 2022 versus full year ended December 31, 2021 - EBITDA decreased $2,539 million versus 2021. Compared to the prior period, olefins results decreased approximately $1,750 million due to lower margins and volumes. Ethylene margins decreased driven by lower demand, higher feedstock and energy costs and lower co-product sales prices. Ethylene volumes declined due to planned and unplanned downtime. Combined polyolefins results decreased approximately $720 million due to lower polyolefins margins driven by softer demand, new capacity and higher energy costs, partially offset by higher polyethylene export volumes.

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

Table 2 - O&P-EAI Financial Overview


Millions of U.S. dollars	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Operating income	($159)	($86)	$57	$14	$1,228
EBITDA	(152)	(83)	155	112	1,749
Identified items: Impairments	—	—	—	69	—
EBITDA excluding identified items	(152)	(83)	155	181	1,749

Three months ended December 31, 2022 versus three months ended September 30, 2022 - EBITDA decreased $69 million versus the third quarter 2022. Fourth quarter 2022 results decreased approximately $50 million due to LIFO inventory valuation charges relative to the third quarter 2022. Compared to the prior period, olefins results decreased approximately $55 million due to lower ethylene prices driven by weak demand. To match lower demand and manage working capital, the company's ethylene crackers operated at 60%. Approximately 25% of the raw materials were derived from non-naphtha feedstocks. Combined polyolefins results increased about $25 million driven by higher margins due to moderating energy costs.

Three months ended December 31, 2022 versus three months ended December 31, 2021 - EBITDA decreased $307 million versus the fourth quarter 2021. Fourth quarter 2022 results decreased approximately $20 million due to LIFO inventory valuation changes and approximately $15 million due to a decrease in the euro versus the U.S. dollar exchange rate relative to the prior period. Compared to the prior period, olefins results decreased about $20 million due to lower volumes driven by reduced utilization and lower margins. Combined polyolefins results decreased approximately $170 million due to margin decline driven by lower spread over monomer and higher energy costs. Polyolefins volumes decreased due to lower demand. Joint venture equity income decreased approximately $80 million due to lower spreads and higher energy costs.

Full year ended December 31, 2022 versus full year ended December 31, 2021 - Compared to 2021, EBITDA decreased $1,637 million, or $1,568 million excluding an impairment of $69 million related to the exit of our Australia polypropylene business. Full year 2022 results decreased approximately $170 million due to a decrease in the euro versus the U.S. dollar exchange rate. Compared to the prior period, olefins results decreased approximately $335 million driven by lower volumes and margins. Ethylene volumes decreased due to unplanned downtime and curtailed operating rates to manage working capital. Ethylene margins decreased due to higher feedstock and energy costs outpacing increased ethylene prices. Combined polyolefins results decreased approximately $665 million driven by lower margins and volumes. Polyolefins margins declined driven by lower spreads over monomer and higher energy costs. Polyolefins volumes decreased due to weaker demand. Equity income decreased approximately $380 million due to lower spreads across all joint ventures.

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 3 - I&D Financial Overview


Millions of U.S. dollars	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Operating income	$211	$290	$139	$1,604	$967
EBITDA	291	360	252	1,872	1,378

Three months ended December 31, 2022 versus three months ended September 30, 2022 - EBITDA decreased $69 million versus the third quarter 2022. Fourth quarter 2022 results decreased approximately $25 million due to LIFO inventory valuation charges relative to the third quarter 2022. Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $35 million driven by lower volumes due to soft demand. Intermediate Chemicals results increased about $95 million due to improved styrene margins. Oxyfuels & Related Products results decreased approximately $90 million driven by lower volumes and margins. Oxyfuels volumes declined as the timing of vessel sailings resulted in unusually high third quarter volumes. Oxyfuels margins declined, but still remained well above historical averages.

Three months ended December 31, 2022 versus three months ended December 31, 2021 - EBITDA increased $39 million versus the fourth quarter 2021. Fourth quarter 2022 results increased approximately $65 million due to LIFO inventory valuation changes relative to the prior period. Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $130 million with lower margins due to higher energy costs and lower volumes driven by lower demand for durable goods. Intermediate Chemicals results decreased about $75 million due to lower styrene margins driven by increased supply. Oxyfuels & Related Products results increased approximately $195 million driven by higher raw material margins and gasoline prices.

Full year ended December 31, 2022 versus full year ended December 31, 2021 - EBITDA increased $494 million versus 2021. Full year 2022 results decreased approximately $55 million due to a decrease in the euro versus the U.S. dollar exchange rate. Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $60 million driven by lower margins due to higher energy costs. Intermediate Chemicals results decreased about $80 million driven by lower margins due to higher energy and feedstock costs. Oxyfuels & Related Products increased approximately $735 million driven by significantly higher margins due to increased gasoline prices. Equity income decreased approximately $60 million due to lower propylene oxide and styrene margins in Asia.

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. Effective January 1, 2023, our Catalloy and polybutene-1 products will be reflected in our O&P—Americas and O&P—EAI segments.

Table 4 - Advanced Polymer Solutions Financial Overview


Millions of U.S. dollars	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Operating income (loss)	($25)	$38	($13)	$201	$286
EBITDA	3	66	24	312	409

Three months ended December 31, 2022 versus three months ended September 30, 2022 - EBITDA decreased $63 million versus the third quarter 2022. Fourth quarter 2022 results decreased approximately $25 million due to LIFO inventory valuation charges relative to the third quarter 2022. Compared to the prior quarter, Compounding & Solutions results decreased approximately $35 million due to decreased volumes driven by lower demand and decreased margins driven by higher raw material and energy costs. Advanced Polymers results were relatively unchanged.

Three months ended December 31, 2022 versus three months ended December 31, 2021 - EBITDA decreased $21 million versus the fourth quarter 2021. Fourth quarter 2022 results increased approximately $30 million due to LIFO inventory valuation changes relative to the prior period. Compared to the prior period, Compounding & Solutions results decreased approximately $45 million due to lower margins driven by higher raw material and energy costs. Advanced Polymers results were relatively unchanged.

Full year ended December 31, 2022 versus full year ended December 31, 2021 - EBITDA decreased $97 million versus 2021. Full year 2022 results decreased approximately $40 million due to a decrease in the euro versus the U.S. dollar exchange rate relative to the prior period. Compared to the prior period, Compounding & Solutions results decreased approximately $115 million due to lower margins driven by higher raw material and energy costs and volumes declined due to lower demand. Advanced Polymers results increased approximately $25 million due to higher Catalloy margins driven by product mix.

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

Table 5 - Refining Financial Overview


Millions of U.S. dollars	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Operating income (loss)	$221	$98	$(496)	$889	$(696)
EBITDA	249	106	(474)	921	(624)
Identified items:

Impairment	—	—	624	—	624
Refinery exit costs	73	84	—	157	—
EBITDA excluding identified items	322	190	150	1,078	—

Three months ended December 31, 2022 versus three months ended September 30, 2022 - Relative to the third quarter 2022, EBITDA increased $143 million, or $132 million excluding exit costs of $73 million in the fourth quarter and $84 million in the third quarter. Fourth quarter 2022 results increased approximately $40 million due to LIFO inventory valuation. Compared to the prior period, margins improved driven by favorable heavy crude pricing and higher Maya 2-1-1 industry crack spread to about $48 per barrel. The Houston Refinery operated at an average crude throughput of 229,000 barrels per day of about 85% utilization rate due to unplanned downtime and U.S. Gulf Coast weather events.

Three months ended December 31, 2022 versus three months ended December 31, 2021 - Compared to the fourth quarter 2021, EBITDA increased $723 million, or $172 million excluding exit costs of $73 million in the fourth quarter 2022 and an impairment of $624 million in the fourth quarter 2021 for the Houston Refinery. Fourth quarter 2022 results decreased approximately $10 million due to LIFO inventory valuation changes relative to the prior period. Compared to the prior period, margin improved as the Maya 2-1-1 industry benchmark increased about $25 per barrel driven by higher demand and tight market supply. Crude throughput decreased approximately 37,000 barrels per day due to unplanned downtime.

Full year ended December 31, 2022 versus full year ended December 31, 2021 - Relative to 2021, EBITDA increased $1,545 million, or $1,078 million excluding exit costs of $157 million in 2022 and an impairment of $624 million in 2021 for the Houston Refinery. Compared to the prior period, margins improved driven by an increase in the Maya 2-1-1 industry benchmark of about $24 per barrel to $45 per barrel driven by higher demand for transportation fuels. Crude throughput averaged 238,000 barrels per day, about 7,000 barrels per day higher than the prior period in response to market demand.

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

Table 6 - Technology Financial Overview


Millions of U.S. dollars	Three Months Ended			Year Ended
	December 31, 2022	September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Operating income	$50	$82	$163	$331	$471
EBITDA	59	92	173	366	514

Three months ended December 31, 2022 versus three months ended September 30, 2022 - EBITDA decreased $33 million compared to the third quarter 2022. Fourth quarter 2022 results decreased approximately $15 million due to LIFO inventory valuation charges relative to the third quarter 2022. Compared to the prior period, catalyst volumes decreased due to lower demand and licensing revenue decreased as fewer number of contracts reached revenue milestones.

Three months ended December 31, 2022 versus three months ended December 31, 2021 - EBITDA decreased $114 million versus the fourth quarter 2021. Fourth quarter 2022 results decreased approximately $20 million due to LIFO inventory valuation charges relative to the prior period. Compared to the prior period, licensing revenue as a lower number of contracts attained revenue milestones and catalyst volumes decreased due to lower demand.

Full year ended December 31, 2022 versus full year ended December 31, 2021 - EBITDA decreased $148 million versus 2021. Full year 2022 results decreased approximately $55 million due to a decrease in the euro versus the U.S. dollar exchange rate relative to the prior period. Compared to the prior period, licensing revenue decreased as a lower number of contracts attained revenue milestones.

Capital Spending and Cash Balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $473 million during the fourth quarter 2022 and $1.9 billion for the full year 2022. Our cash and liquid investment balance was $2.2 billion, which includes cash and cash equivalents, restricted cash and short-term investments. There were 326 million common shares outstanding as of December 31, 2022. The company paid dividends of $3.2 billion during 2022.


Table 7 - Reconciliation of EBITDA to EBITDA Excluding Identified Items by Segment

	Three Months Ended						Year Ended
Millions of U.S. dollars	December 31, 2022		September 30, 2022		December 31, 2021		December 31, 2022		December 31, 2021
EBITDA:
Olefins & Polyolefins - Americas	$	359	$	559	$	1,262	$	2,734	$	5,273
Olefins & Polyolefins - EAI	(152)		(83)		155		112		1,749
Intermediates & Derivatives	291		360		252		1,872		1,378
Advanced Polymer Solutions	3		66		24		312		409
Refining	249		106		(474)		921		(624)
Technology	59		92		173		366		514
Other	(17)		8		3		(16)		(10)
Continuing Operations	$	792	$	1,108	$	1,395	$	6,301	$	8,689

Add: Identified items:
Impairments:
Olefins & Polyolefins - EAI	$	—	$	—	$	—	$	69	$	—
Refining	—		—		624		—		624
Refinery exit costs:
Refining	73		84		—		157		—
Total identified items:	$	73	$	84	$	624	$	226	$	624

EBITDA excluding identified items:
Olefins & Polyolefins - Americas	$	359	$	559	$	1,262	2,734		$	5,273
Olefins & Polyolefins - EAI	(152)		(83)		155		181		1,749
Intermediates & Derivatives	291		360		252		1,872		1,378
Advanced Polymer Solutions	3		66		24		312		409
Refining	322		190		150		1,078		—
Technology	59		92		173		366		514
Other	(17)		8		3		(16)		(10)
Continuing Operations	$	865	$	1,192	$	2,019	$	6,527	$	9,313


Netherlands	001-34726	98-0646235
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


			(713)			309-7200						+44 (0)			207			220 2600						+31 (0)			10			2755 500


Exhibit Number						Description

99.1						Press Release dated February 3, 2023.

99.2						Business Results Discussion by Reporting Segment dated February 3, 2023.

104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.


☐			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))