LyondellBasell Industries (LYB) risk factors, FY2024 10-K

Risks Related to our Business and Industry

1. 01The cyclicality and volatility of the industries in which we participate may cause significant fluctuations in our operating results
2. 02In addition to changes in the supply and demand for products, changes in energy prices and other worldwide economic conditions can cause volatility. These factors result in significant fluctuations in profits and cash flow from period to period and over business cycles
3. 03A sustained decrease in the price of crude oil may adversely impact the results of our operations, primarily in North America
4. 04Costs and limitations on supply of raw materials and energy may result in increased operating expenses
5. 05Our ability to source raw materials or deliver products may be adversely affected by political instability, civil disturbances or other governmental actions
6. 06Our business is capital intensive and we rely on cash generated from operations and external financing to fund our growth and ongoing capital needs. Limitations on access to external financing could adversely affect our operating results

Risks Related to our Operations

1. 07Our operations are subject to risks inherent in the chemical industry, and we could be subject to liabilities for which we are not fully insured or that are not otherwise mitigated
2. 08Our business, including our results of operations and reputation, could be adversely affected by safety or product liability issues
3. 09Interruptions of operations at our facilities may result in increased liabilities or lower operating results
4. 10Some of these hazards may cause severe damage to or destruction of property and equipment, personal injury, loss of life, environmental damage, legal liability resulting from government action or litigation, loss of revenue, suspension of operations or the shutdown of affected facilities
5. 11Shared control or lack of control of joint ventures or equity investments may delay decisions or actions regarding our joint ventures, or adversely affect our financial results
6. 12We may be required to record material charges against our earnings due to any number of events including impairments of our assets
7. 13Sustained unfavorable market conditions may also result in asset impairments. For example, in 2024, challenging market conditions in Europe resulted in a $837 million non-cash impairment of property, plant and equipment in our O&P-EAI segment
8. 14Acquisitions or dispositions of assets or businesses could disrupt our business and harm our financial condition and stock price

Risks related to the Global Economy and Multinational Operations

1. 15Economic disruptions and downturns in general, and particularly continued global economic uncertainty or economic turmoil in emerging markets, could have a material adverse effect on our business, prospects, operating results, financial condition and cash flows
2. 16We sell products in highly competitive global markets and face significant price pressures
3. 17We operate internationally and are subject to exchange rate fluctuations, exchange controls, political risks and other risks relating to international operations
4. 18Changes in tax laws and regulations could affect our tax rate, financial condition and results of operations

Risks Related to Health, Safety, and the Environment

1. 19We cannot predict with certainty the extent of future costs under environmental, health and safety and other laws and regulations, and cannot guarantee they will not be material
2. 20We may incur substantial costs to comply with climate change legislation and related regulatory initiatives
3. 21Legislation and regulatory initiatives could lead to a decrease in demand for our products or reputational harm
4. 22The physical impacts of climate change can negatively impact our facilities and operations
5. 23Increased regulation or deselection of plastic could lead to a decrease in demand growth for some of our products
6. 24Failure to effectively and timely achieve our GHG emissions reduction goals could damage our reputation and have an adverse effect on the demand for our products
7. 25Failure to achieve our circularity goals could have an adverse effect on the demand for our products and damage our reputation
8. 26Increased IT and cybersecurity threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, data, products, facilities and services, and the expansion of related regulatory requirements could increase our costs and disrupt our operations
9. 27Many of our businesses depend on our intellectual property. Our future success will depend in part on our ability to develop new technologies and protect our intellectual property rights, and our inability to do so could reduce our ability to maintain our competitiveness and margins
10. 28Adverse results of legal proceedings could materially adversely affect us
11. 29If we lose key employees or are unable to attract and retain the employees we need, our business and operating results could be adversely affected
12. 30Significant changes in pension fund investment performance or assumptions relating to pension costs may adversely affect the valuation of pension obligations, the funded status of pension plans, and our pension cost