LyondellBasell Americas EBITDA Falls as Polymer Prices Soften

The Tip Desk · October 30, 2026 · 3 min read

Net income was $758 million, or $2.32 a share, as Intermediates & Derivatives EBITDA rose $343 million to $720 million.

LyondellBasell Industries (LYB) reported third-quarter 2026 net income of $758 million, or $2.32 a share, up from $559 million, or $1.71 a share, in the second quarter. Sales and other operating revenues were $8,499 million.

The sequential profit increase reflected a lighter identified-items load rather than a recovery in Olefins & Polyolefins. EBITDA excluding identified items was $1,512 million. Identified items net of tax were $70 million, or $0.22 a share, including closure costs for a European propylene oxide joint venture.

O&P-Americas was the main drag. Segment EBITDA was $641 million, down $542 million from the second quarter, or $626 million excluding identified items. The company said olefins results decreased about $320 million and combined polyolefins about $265 million on lower prices and market conditions tied to the Middle East conflict. Ethylene crackers ran at about 90% of capacity, with feedstock about 75% ethane and 25% other natural gas liquids. Profitability fell versus the second quarter, the company said, even as integrated polyethylene margins ended the quarter at approximately 50% above 2025 levels after September price momentum.

O&P-EAI EBITDA excluding identified items was $13 million. Versus the second quarter, olefins results decreased about $65 million on lower volumes after the May sale of certain European assets, combined polyolefins decreased about $130 million on lower prices, and equity income decreased about $50 million. Ethylene crackers operated at about 70% of capacity. The May divestiture had produced a $734 million pre-tax loss on sale in the second quarter.

Intermediates & Derivatives moved the other way. Segment EBITDA was $720 million, up $343 million from the second quarter, or $409 million excluding identified items, which included about $76 million of shutdown costs for the European PO joint venture. The company said profitability rose largely on oxyfuels: global supply disruptions lifted crack spreads, gasoline blend economics boosted octane values, and Europe and U.S. oxyfuel margins expanded. Bayport PO/TBA ran at full rates after a June restart, and Channelview PO/TBA utilization rose to about 110% under the Value Enhancement Program. Acetyls benefited from improved reliability at LaPorte.

Cash from operating activities was $1.7 billion, including a working-capital release. Capital expenditures were $303 million and dividends $224 million. The company repaid a planned €500 million note in September and ended the quarter with $3.2 billion in cash and cash equivalents and $7.7 billion in available liquidity.

Chief executive Peter Vanacker said the company was optimizing feedstocks, directing products to the most attractive markets and aligning operating rates with demand, and that oxyfuels strength and higher I&D profitability highlighted the diversified portfolio. Conditions in the Middle East are likely to remain fluid, the company said, with a return to pre-conflict conditions likely to be non-linear. Polyethylene domestic and export demand is strong, it said, and polymer pricing improved through the end of the third quarter.

For the fourth quarter, LYB expects operating rates of 85% for North American O&P assets, 60% for European O&P assets and 75% for Intermediates & Derivatives, with a planned maintenance project at a North American polypropylene asset and a seasonal release of working capital. Capital allocation priorities, it said, remain unchanged: operate and maintain assets, deleverage, maintain the dividend and invest selectively.