LYB reports Q3 losses in ‘challenging market environment’

Global chemical company LyondellBasell (LYB) has announced its earnings for the third quarter of 2025, including a net income loss of $890 million.

The number is down from the $115 million profit reported in the second quarter. By comparison, the Netherlands-based company with a U.S. headquarters in Houston reported a $573 million profit during the third quarter of 2024.

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LYB generated $983 million in cash from operating activities with 135 percent cash conversion during the third quarter and continued to balance capital allocation between capital expenditures of $406 million and $443 for shareholder returns through dividends. By the end of the quarter Sept. 30, the company held $1.8 billion in cash and cash equivalents and maintained $6.5 billion in available liquidity.

It also reports improved profitability for its Olefins and Polyolefins Americas segment, supported by increased olefins margins and higher sales volumes following the successful completion of turnarounds at its facility in Channelview, Texas.

“Polyethylene spreads decreased as monomer costs rose,” LYB says in its report. “LYB sales volumes improved on higher domestic demand for polyethylene supported by the company’s strong North American market position, along with higher export flows to key global markets.”

LYB notes that polypropylene demand “remained weak,” while improved operations in Europe yielded higher monomer volumes while polymer prices were pressured by increased competition from imports.

In its Intermediates and Derivatives segment, LYB reports its oxyfuels results benefited from increased octane blend premiums, lower butane raw material prices and modestly higher sales volumes, partially offset by declining styrene margins as global supply normalized. In September, the company says it started a two-month turnaround at its La Porte, Texas acetyls plant that it believes will position the site for improved productivity and reliability.

LYB says it continues to balance capital allocation between investment in the business and shareholder returns while prioritizing safe and reliable operations. Additionally, the company says it is executing on its priorities and its cash improvement plan remains on track to deliver on a $600 million target for 2025, and a minimum of $1.1 billion by the end of 2026. The company reports its capital expenditures will be reduced to $1.2 billion in 2026 by optimizing maintenance spending while supporting the ongoing construction of the company’s first chemical recycling plant, MoReTec-1, in Germany. The company says “good progress” has been made at the MoReTec-1 site, with major equipment deliveries and construction currently taking place.

LYB says it took another step in its “portfolio transformation” with regulatory approvals and the purchase agreement for the sale of four of its European assets, adding that its Channelview facility has exceeded its nameplate operating rates, its Hyperzone polyethylene plant has improved performance, and its Advanced Polymer Solutions segment has leveraged a 75 percent increase in customer satisfaction relative to 2023.

“LYB continues to navigate a challenging market environment while remaining focused on delivering long-term value,” CEO Peter Vanacker says. “Our cash improvement plan is on track to achieve our $600 million target in 2025 and a minimum of $1.1 billion by the end of 2026, by reducing fixed costs, managing working capital and optimizing capital investment to strengthen free cash flow. We are prioritizing our investment-grade balance sheet while investing in safe and reliable operations. Our strategy is resilient, and we remain confident in our ability to create long-term value for investors.”

Looking ahead

In the fourth quarter, LYB says year-end seasonality and lower operating rates are expected to impact results across most businesses. In North America, the company says higher natural gas and feedstock costs are likely to pressure integrated polyolefins margins while, in Europe, weak industrial and consumer demand is expected to persist.

“Global capacity rationalizations and anti-involution measures in China are supporting a more constructive midterm outlook for the industry,” LYB says. “Industry downtime supported oxyfuels margins during October, but seasonally higher costs for feedstocks and lower octane values are expected to pressure oxyfuels profitability for the remainder of the quarter.

“In Advanced Polymer Solutions, pricing pressures persist, but cost reduction initiatives are expected to offset some of the impact.”

In November, the company says it will idle its cracker in Wesseling, Germany, and one of the propylene oxide/styrene monomer units in Channelview. Each site will be down for about 40 days.

“The downtime will allow for maintenance activities while aligning production with global demand and reducing working capital,” the company says.

It expects fourth-quarter operating rates of 80 percent for North American olefins and polyolefins (O&P) assets, 60 percent for European O&P assets and 75 percent for Intermediates and Derivatives assets.