LyondellBasell Industries N.V. (NYSE:LYB) Q3 2020 Earnings Conference Call - Final Transcript

Oct 30, 2020 • 11:00 am ET

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LyondellBasell Industries N.V. (NYSE:LYB) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Bhavesh V. Patel

benefited from improving volumes during the initial months of a recovering global economy. After excluding the non-cash impacts of LCM inventory benefits and an impairment of our refinery third quarter EBITDA was approximately $900 million, an improvement of more than $200 million relative to the second quarter. We continue to focus on cash generation and retention by efficiently converting more than 90% of our EBITDA into cash from operating activities and by carefully managing our working capital to end the quarter with approximately $5.5 billion of cash and available liquidity.

Our strong balance sheet has served us well by allowing the company to capture opportunity during this downturn through the establishment and start-up of a new integrated polyolefin joint venture in China, followed by the announcement in October of our intent to form another integrated polyethylene joint venture in Louisiana before the end of this year. Both of these joint ventures offer unique opportunities for LyondellBasell to grow one of the core areas of our business by investing in new, already operating, high-quality assets that have significant upside as market conditions continue to improve. These transactions are prime examples of our strategy to identify, develop and capture opportunities through business cycles.

Let's turn to Slide four and review our recent safety performance. Our employees and contractors maintain their focus on performing work safely to eliminate injuries, prevent virus spread and minimize emissions from our assets. During September, we had one recordable injury across our global workforce of more than 19,000 employees. Although, our goal is always zero injuries. The September year-to-date recordable injury rate across both our employees and contractors is on track to improve upon the top-decile industry performance we achieved in 2019. Our protocols for workplace sanitization, facial covering, social distancing, health screening and contact tracing have been successful in minimizing the spread of Coronavirus across our global facilities. We have no evidence of work-related COVID infections across our global workforce.

Our major manufacturing locations operated continuously throughout the pandemic as an essential industry. Our office workers have returned to work in Asia, and we are gradually increasing our office populations across the rest of the world in accordance with local regulations and safety metrics, driven by both employee and community infection rates. We are using a safe and responsible approach to gradually increase the number of personnel at our Houston headquarters during the fourth quarter.

In September, our company released our annual sustainability report, the cover of which is shown on Slide five. We hope that you will all take some time to review the report. You will note that the cover image of our report does not depict images of solar arrays, windmills or a pristine beach. Our products make modern life possible and often have a favorable environmental footprint relative to the alternatives. We recognize that plastic waste represents a substantial challenge for society.

And our goal is to play a central role in developing pragmatic solutions that balance the needs for environmental, economic and