LYB · LyondellBasell Industries N.V.

LyondellBasell reported first quarter 2026 results showing sequential improvement with GAAP net income of $125 million and EBITDA of $568 million, up significantly from the prior quarter's loss amid Middle East war impacts steepening the global petrochemical cost curve. Olefins & Polyolefins-Americas drove the rebound, with EBITDA doubling to $327 million due to lower feedstock costs, higher polyethylene prices from tightening markets, and operational agility from prior Value Enhancement Program initiatives. Ethylene crackers ran at maximum rates with 75% ethane feedstock. O&P-Europe, Asia, International improved to $(35) million EBITDA despite identified items like $15 million asset write-downs and $10 million European transaction costs, benefiting from higher polyolefins margins amid supply disruptions. Intermediates & Derivatives EBITDA rose to $224 million on stronger propylene oxide pricing and demand, offset by oxyfuels compression and outages. Advanced Polymer Solutions and Technology segments contributed positively but trailed peaks. CEO Peter Vanacker highlighted leveraging cost-advantaged North American assets, portfolio transformation via the European asset sale, and Cash Improvement Plan for fixed cost reductions. Cash from operations used $269 million due to typical Q1 working capital build amid higher volumes/prices, balanced by equal capex and $224 million dividends. Q2 outlook signals major uplift from supply tightness, with North America export gains, European margin improvements post-divestiture, and targeted operating rates: North America O&P maximum, Europe O&P 80%, I&D 75%. The completed sale to AEQUITA of select European olefins/polyolefins assets and business enhances footprint resilience and low-cost focus.