LyondellBasell Industries has announced net income for the fourth quarter 2021 of $0.7 billion, or $2.18 per share. The company recognized a $624 million non-cash impairment charge during the quarter related to the Houston refinery. The impairment reduced net income by $481 million or $1.45 per share. Fourth quarter 2021 EBITDA was $1.4 billion, or $2.0 billion excluding LCM and impairment. Debt extinguishment costs reduced fourth quarter net income by $53 million or $0.16 per share.
Full year 2021 net income was $5.6 billion, or $16.75 per share. Impairment charges related to the refinery reduced full year 2021 net income by $481 million, or $1.44 per share. Full year 2021 EBITDA was $8.7 billion, or $9.3 billion excluding LCM and impairment. Debt extinguishment costs reduced full year net income by $102 million or $0.30 per share.
"LyondellBasell achieved record profitability in 2021 supported by robust demand, tight markets and the company's recent growth investments. Our Olefins & Polyolefins Americas and Technology segments both posted record annual EBITDA. Profit margins reached all-time highs across many of LyondellBasell's businesses despite global supply chain disruptions and the spread of new COVID variants," said Ken Lane, LyondellBasell Interim CEO.
"During the fourth quarter, higher costs for energy and feedstocks compressed margins, particularly in Europe. Strong demand drove LyondellBasell's U.S. ethylene cracker operating rates to 97 percent while planned maintenance constrained production at two of our European crackers. The resumption of our acetic acid production increased volumes in our Intermediates & Derivatives segment and offset weaker Oxyfuels margins. Improving demand for transportation fuels drove higher margins which enabled our Refining segment to post its second consecutive quarter of positive results."
"LyondellBasell's substantial cash generation allowed the company to complete our goal of reducing long-term debt by $4 billion during 2021. We do not plan to pursue further debt reduction in 2022. At the same time, we repurchased 5.2 million shares and increased our annual dividend for the eleventh consecutive year. We are continuing to pursue a highly disciplined capital allocation strategy that aims to provide significant returns for shareholders."
"In addition to our financial performance, LyondellBasell remains focused on substantive and ambitious goals to help address the opportunities from circularity and the challenges of climate change. During 2021, we stepped up our circularity and climate commitments with the launch of our Circulen portfolio of products and by accelerating the cadence of our carbon reduction plans with the establishment of a 2050 net zero target," Lane said.
"With forecasts for above-average GDP growth in 2022, we expect continued strength in demand for our products. Supply chain disruptions and virus surges have been restraining pent-up consumer demand across the global economy. As vaccinations facilitate a more sustainable global reopening and supply chains normalize, LyondellBasell's businesses should benefit from increased demand for both goods and services. We are closely monitoring rising feedstock and energy costs, particularly at our European operations. Elevated levels of ethylene industry maintenance activities scheduled for the first half of 2022 are likely to constrain supply. We expect tight markets for acetyls and propylene oxide will continue to drive strong profitability within our I&D segment. In January, our Advanced Polymers Solutions segment benefited from increased order volumes for our products used in automotive production."
"LyondellBasell's earnings and cash flows are stepping up from levels seen over the last decade. We are expanding our production with the commissioning of new facilities in China and the U.S. during 2022. We announced that we are accelerating our commitments to help address climate change. With our new CEO Peter Vanacker joining the company at the end of the second quarter, LyondellBasell is well poised to continue delivering on our track record of substantial cash generation and strong returns for shareholders," said Lane.
