LYB Releases Q3 2025 Earnings Report

Net (Loss) Profit: ($890 million); excluding recognized items, $330 million.

■ Diluted (loss) earnings per share: (2.77) USD per share; excluding recognized items, 1.01 USD per share.

■ Profit before interest, taxes, depreciation, and amortization: ($480 million); $835 million excluding recognized items.

■ Non-cash asset impairment: $1.202 billion

Cash flow from operating activities: $983 million

The cash conversion rate reached 135% in the third quarter of 2025.

Returned $443 million to shareholders through dividends in the third quarter of 2025.

Maintain stable operations and financial discipline to address cyclical changes.

• The cash improvement plan is progressing as planned and is expected to achieve the target of $600 million by 2025.

• Hyperzone PE and Channelview PO/TBA operational rates have improved, exceeding the design capacity benchmark.

• Transformation of the product portfolio in the Advanced Polymers Solutions (APS) business and enhancement of customer satisfaction drive performance improvement.

• The sale of European assets is progressing smoothly, with regulatory approval obtained and the purchase agreement signed.

The company reported a net loss of $890 million in the third quarter of 2025, equivalent to a diluted loss of $2.77 per share. In this quarter, the company recognized $1.2 billion in after-tax identified items. These items had an impact of $3.78 on earnings per share for the third quarter and involved non-cash asset impairments, transaction-related expenses, cash improvement plans, and discontinued operations. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the third quarter of 2025 was negative $480 million; excluding identified items, it was $835 million.

The profitability of the Americas Olefins and Polyolefins (O&P) business improved due to the enhancement of olefin margins and the increase in sales volume following the successful completion of maintenance at the Channelview plant in Texas. The polyethylene spread narrowed due to rising monomer costs. The company's strong position in the North American market, the increase in export volume to major global markets, and the growth in domestic demand for polyethylene drove the increase in sales volume. Polypropylene demand remains weak. Improvement in European operations led to higher monomer production, but polymer prices are under pressure from intensified import competition.

In the Intermediates and Derivatives (I&D) business, the performance of the pure oxygen fuel benefited from the increase in octane blending premiums, the decline in butane raw material prices, and a slight growth in sales volume. These positive factors were partially offset by the decline in styrene margins due to the normalization of global supply. In September, LYB began a two-month maintenance of its acetyl facility in La Porte, Texas, to improve the production efficiency and operational reliability of this asset.

In the third quarter, LYB generated $983 million in cash flow from operations, with a cash conversion rate of 135%. LYB continues to maintain a balanced capital allocation, including $406 million in capital expenditures and $443 million returned to shareholders through dividends. The company's cash reserves have increased, holding $1.8 billion in cash and cash equivalents at the end of the quarter, with available liquidity of $6.5 billion.

Strategic Highlights

In the fourth quarter, year-end seasonal factors and lower operating rates are expected to impact the performance of most businesses. In North America, rising natural gas and raw material costs may pressure the margins of polyolefin integration. In Europe, the trend of weak industrial and consumer demand is expected to continue. Global capacity optimization and China's anti-involution measures provide more positive support for the industry's mid-term outlook. In October, industry shutdowns supported the margins of pure oxygen fuels, but seasonal rises in raw material costs and declines in octane levels are expected to pressure the profitability of pure oxygen fuels for the remainder of the quarter. The APS business faces ongoing pricing pressure, but cost-cutting measures are expected to offset some of the impact.

In November, LYB will shut down its large cracker unit in Wesseling, Germany, and a PO/SM monomer unit in Channelview, Texas, USA. Each unit will be shut down for about 40 days. The shutdown aims to adjust production in line with global demand, reduce working capital, and perform maintenance work. The company expects the fourth-quarter operating rates to be approximately 80% for North American O&P assets, 60% for European O&P assets, and 75% for I&D assets.