LyondellBasell has reported a sharp jump in second-quarter earnings.

 

This, as tighter global petrochemical supplies boosted margins, while the company accelerated its strategic overhaul by completing the sale of four European assets and pressing ahead with its cash improvement program.

 

The global chemicals producer posted net income of $559 million, or $1.71 per diluted share, for the quarter ended June 30, up sharply from $125 million, or $0.38 per share, in the previous quarter and $115 million, or $0.34 per share, a year earlier.

 

Excluding one-time items, net income climbed to $1.4 billion, while EBITDA reached $2.1 billion, reflecting stronger operating performance across its business segments.

 

The results came as geopolitical instability tightened global supply chains, allowing the company to capitalize on higher polymer margins and stronger pricing through increased operating rates and disciplined commercial execution.

 

"In a dynamic macroeconomic environment, we delivered exceptional results through deliberate commercial actions, the strength of our advantaged portfolio and improved market conditions supporting margin expansion," said Peter Vanacker, LYB chief executive officer. 

 

"We responded quickly to the global supply disruption by increasing operating rates to serve our customers, demonstrating the flexibility and resilience of our global asset base and supply chain. We also took decisive actions with the divestment of select European assets and continued progress on our Cash Improvement Plan. 

 

"These actions are repositioning LYB with a structurally lower cost base providing improved margins and enhanced cash generation. We continue to prioritize safety, reliability, cost discipline and capital allocation to deliver sustainable value for our shareholders."

 

The company said reported earnings included $842 million in identified items after tax, largely reflecting the loss on the sale of selected European assets and an impairment related to an Olefins & Polyolefins Americas joint venture.

 

LyondellBasell's North American olefins and polyolefins operations ran at approximately 90% utilization during the quarter, benefiting from expanding polymer margins and favorable co-product pricing as global supplies tightened. Its Europe, Asia and International operations also posted stronger results, supported by wider polymer spreads and improved contributions from joint ventures.

 

The Intermediates and Derivatives segment delivered higher earnings as margins improved for oxyfuels, methanol and propylene oxide derivatives, although an unplanned outage at the Bayport PO/TBA facility partially offset gains. The plant resumed operations in June and ended the quarter at full operating rates, positioning the business for stronger volumes in the second half of the year.

 

LyondellBasell generated $752 million in operating cash flow during the quarter. Capital spending totaled $270 million, while shareholders received $224 million through dividends. The company ended June with $2.6 billion in cash and cash equivalents and $7.1 billion in available liquidity.

 

A major milestone during the quarter was the completion of the divestiture of four European assets, a move the company said strengthens its portfolio by lowering its structural cost base and increasing exposure to more advantaged feedstocks. 

 

Management also said it remains on track to deliver $500 million in incremental cash by the end of 2026 through its Cash Improvement Plan, driven by lower fixed costs and reduced capital expenditure.

 

Looking ahead, LyondellBasell warned that ongoing instability in the Middle East is expected to keep energy and petrochemical markets volatile, with uncertainty over when disrupted supplies will fully return. While the company does not expect a significant slowdown in demand across its key markets, it said short-term price uncertainty could affect customer buying patterns.

 

For the third quarter, the company expects operating rates of 85% for North American olefins and polyolefins assets, 70% for European assets and 85% for its Intermediates and Derivatives business as it balances planned maintenance with market demand.