Peter Vanacker
Chief Executive Officer at LyondellBasell Industries
Thank you, David. Welcome to all of you. We appreciate you joining us today as we discuss our first quarter 2023 results. We will begin on Slide number 3 with our safety performance. Our workforce continues to deliver excellent safety performance for the start of 2023. LyondellBasell's year-to-date incident rate for employees and contractors is 0.16, which continues to be below the rate seen in prior years. Safety will continue to be a fundamental part of our core values as we move forward with the implementation of our exciting new strategy.
Let's turn to Slide number 4 and review the new strategy that we launched last month at our Capital Markets Day. As you can see, much work was already underway. Our strategy is built around three pillars. We're convinced that the successful implementation of our new strategy will increase our normalized EBITDA by $3 billion to $10 billion by 2027. This should ultimately result in a more profitable and sustainable growth engine for LyondellBasell.
The three pillars for growing and upgrading our core, building a profitable circular and low-carbon solutions business; and finally, stepping up our performance and culture. And the growth in upgrading the core, we are focused on the areas of our portfolio where we have leading positions and competitive advantages that are aligned with our long-term goals. We will reinvest to grow and improve upon those advantaged positions by leveraging our leading technologies to generate returns at scale.
In the second pillar, we are committed to building a profitable circular and low-carbon solutions business that would enable our leadership in circularity and address the massive customer demand for these products and solutions in a profitable way. We expect this business will generate at least $1 million of incremental EBITDA by 2030.
The third pillar of our strategy is to step up our performance and culture. Our company has a well-earned reputation for strong operational excellence and cost leadership. Our goal is to build on these strengths to capture untapped value across the company through modest investments. We have established a value enhancement program that is prioritizing and delivering on these initiatives. Our value enhancement program is on track to deliver more than $750 million of recurring annual EBITDA by the end of 2025.
These three pillars do not stand alone. The pillars of our strategy are interconnected and reinforce each other. For example, we step up our performance and culture to create value. We will reinvest that value in growing and upgrading our core. Returns from a larger and more profitable core will be allocated to build a more sustainable circular and low-carbon solutions business. And the cash generation from all these activities will continue to provide generous shareholder returns. Our strategy serves the needs of our customers, employees, investors and society.
We did not wait until our Capital Markets Day in March to start executing this strategy. Slide number four highlights our actions across three pillars over the past year. As part of growing and upgrading the core, we announced in April 2022 that we would exit the refining business. We are now evaluating options to transform the facility to serve our long-term objectives, particularly around circular and low-carbon solutions. Last April, we divested our Australian polypropylene business and at our Capital Markets Day, we announced a strategic review for our ethylene oxide & derivatives business.
We are improving our focus with investments in businesses that fit with our long-term strategy. An example is the successful start-up of our new PO/TBA facility, the largest propylene oxide plant in the world over the past month. This project was an enormous undertaking across two Houston area facilities. During the height of construction, we had a workforce of more than 3,000 people. This is the sixth PO/TBA plant built by LyondellBasell since inventing the technology in the 1960s. Our plant doubles the scale of our prior plans, improves yields, increases product recovery and incorporates hundreds of design improvements that save energy, reduce emissions, and lower costs.
The net result is that we believe propylene oxide from our PO/TBA technology has a lower carbon footprint relative to the most widely used PO technologies. And our cost of production is the lowest in the world. The new plant was producing on-spec products at rates of 70% or above within one month from start-up. I want to sincerely thank our team for all the hard work and dedication that went into this extremely successful launch of a new production capacity.
The PO/TBA plant is just one example of how we are growing and upgrading our core businesses. Through our value enhancement program, our team is unlocking additional production volumes across our business portfolio through hundreds of initiatives to increased capacity and improve reliability. In the second half of last year, we established our circular and low-carbon solutions business unit to address the rapidly growing demand for circular and renewable products. Since that time, we have staffed up the organization and announced multiple acquisitions, partnerships and other arrangements.
Just this week, we announced that LyondellBasell will acquire the other half of our QCP mechanical recycling joint venture in Europe. This is another step forward in our work to achieve our sustainability goals. We are securing recycled and renewable feedstocks and building regional hubs to leverage our technologies and provide powerful advantages for our comprehensive business model.
Last December, we increased our greenhouse gas emission reduction goals to establish a leadership position within our industry by aligning with science-based climate guidance. As part of this, we set a goal to procure at least half of our global electricity from renewable sources by 2030. In just 10 months, we've announced agreements that will achieve 70% of our renewable power target with approximately 1,100 megawatts of renewable generation capacity. The agreements will reduce LyondellBasell's greenhouse gas emissions by approximately 1.1 million tons, and that is nearly 15% of our 2020 Scope 2 emissions.
We provide an in-depth look at our progress on sustainability with our newly published 2022 sustainability report. And as you know, that is available on our website. This report highlights how we can create substantial enterprise value through leadership in sustainability, which is core to our strategy of creating solutions for everyday sustainable living. Our work to step-up performance and culture is the third pillar of our strategy. In October, we streamlined our organizational structure to improve line of sight with clear accountabilities and improved alignment across our commercial and manufacturing functions.
And at our Capital Markets Day, Torkel describes the work that is underway to transform our Advanced Polymer Solutions segment. In addition, we are leveraging the structure of our value enhancement program to drive commercial excellence and improve our customer focus. Altogether, the three pillars of LyondellBasell's strategy are working side by side to form a growth engine that captures value and delivers a more profitable and sustainable portfolio of businesses.
Let's now turn to Slide Number 5 to discuss our financial performance. During the first quarter, LyondellBasell's business portfolio delivered solid results, reflecting moderately improving market conditions. Earnings were $2.50 per share, more than 90% at best our fourth quarter results. EBITDA was $1.5 billion, and we generated nearly $500 million in cash from operating activities.
We ended the quarter with $1. 8 billion of cash on hand and $5.8 billion of available liquidity. Our company generated 12% return on invested capital over the past 12 months. The strength of our investment-grade balance sheet and our disciplined approach to capital allocation enable us to confidently move forward with our strategy, while continuing to provide attractive returns to shareholders through all stages of the business cycle.
With that, I will turn the call over to Michael first and then to each of our business leaders, who will describe our financial and segment results in more detail.
