LyondellBasell Industries today announced results for the third quarter 2026. The company reported net income for the third quarter 2026 of $758 million. During the quarter, the company recognized $70 million of identified items, net of tax. These items included closure costs for a European propylene oxide (PO) joint venture. Third quarter 2026 EBITDA was $1.4 billion, or $1.5 billion excluding identified items.

“In an evolving macroeconomic environment, we delivered another quarter of strong earnings and robust cash conversion through disciplined execution underscored by the strength of our global, cost-advantaged portfolio,” said Peter Vanacker, LYB chief executive officer. “We are leveraging the flexibility and resilience of our leaner structure by optimizing feedstocks, directing products to the most attractive markets and aligning operating rates with demand. The strength of our oxyfuels business and materially higher Intermediates and Derivatives profitability highlight the benefits of our diversified portfolio. We continue to prioritize safety, reliability and cost discipline, to maximize margins, generate cash and deliver sustainable value for our shareholders.”

Geopolitical uncertainty created mixed Q3 results across key markets. In the O&P – Americas segment, lower polymer and olefin prices reduced sequential profitability, though September price momentum pushed integrated polyethylene margins ~50% above 2025 levels. Operational efficiency was highlighted by the timely, under-budget completion of the Clinton facility turnaround. Meanwhile, the O&P – Europe, Asia and International segment faced margin pressure from falling polymer prices, alongside lower sequential volumes due to a May 2026 European asset sale.

LyondellBasell’s (LYB) Intermediates and Derivatives segment achieved substantially higher quarterly profits, fueled by surging oxyfuel demand and strong operational execution. Under its Value Enhancement Program, the company pushed Channelview PO/TBA plant utilization to 110%, while the recently restarted Bayport facility ran at maximum capacity. Profits were further amplified by elevated global crack spreads, high octane values from favorable gasoline blending, and improved reliability at the La Porte acetyls plant.

LYB generated $1.7 billion in cash from operating activities during the third quarter, including a release of working capital. Capital allocation was balanced between capital expenditures of $303 million and $224 million of shareholder returns through dividends. The company also repaid its €500 million note maturity in September as planned. At the end of the quarter, LYB held $3.2 billion in cash and cash equivalents and $7.7 billion in available liquidity.

OUTLOOK

Middle East conditions remain volatile, delaying a return to stability. While inventory levels and price fluctuations have altered customer buying habits, polyethylene demand and pricing strengthened through Q3, alongside robust oxyfuels margins. In this shifting environment, supply reliability and operational flexibility are key differentiators, leaving the company well-positioned to drive future earnings and cash flow through its cost-advantaged assets and diverse market reach.

Looking ahead to the fourth quarter, LYB anticipates typical seasonal demand trends alongside persistent supply chain uncertainties. The company has scheduled a maintenance turnaround at one of its North American polypropylene facilities. To match prevailing global demand and accommodate this planned downtime, LYB projects fourth-quarter operating rates to reach 85% for North American Olefins & Polyolefins (O&P) assets, 60% for European O&P assets, and 75% for Intermediates & Derivatives (I&D) assets. Additionally, the final quarter of the year is projected to generate a standard seasonal release of working capital.