LyondellBasell: $177 Million in Net Income for Q1 2025

LyondellBasell (LYB) announced its results for Q1 2025. The company reported Q1 net income of $177 million, or $0.54 per diluted share. During the quarter, the company recognized $67 million of identified items (after tax). These items impacted Q1 EPS by $0.21 and were related to costs incurred in the closure of the Netherlands PO joint venture, which were offset by revenue from discontinued refinery operations. Q1 2025 EBITDA was $655 million, or $576 million excluding identified items.

“The LYB team continued to execute well in the first quarter. With the successful completion of planned maintenance at our largest ethylene crackers in Europe and the U.S., our assets are well prepared to meet growing seasonal demand while adapting to dynamic trade flows through a flexible global manufacturing network. As we have done over the past two years, we continue to take smart actions to strengthen our near-term cash generation while remaining committed to delivering on our three-pillar strategy through a prolonged industry downturn. Our financial and operational discipline enables us to effectively navigate macroeconomic challenges, deliver sustainable growth, and deliver a strong and reliable dividend through the cycle,” said Peter Vanacker, CEO of LyondellBasell.

During the first quarter, the company continued to take a balanced approach to capital allocation, with $483 million spent on investment expenditures and $543 million returned to shareholders through dividends and share repurchases. Uses of cash in the first quarter included increases in receivables and inventory related to increased sales following maintenance outages, deferred payment of prior year cash taxes, and share repurchases. At the end of the quarter, the company held $1.9 billion in cash and cash equivalents and maintained $6.5 billion in available liquidity.

LYB continued to navigate dynamic market conditions in the first quarter while advancing its three-pillar strategy. The company strengthened its market position by securing contracts for cost-advantaged feedstock allocations in the Middle East and making a final investment decision to expand its propylene capacity in the United States. In response to continued macroeconomic volatility, LYB announced a $500 million cash improvement plan focused on improving financial performance.

Looking ahead to the second quarter, the company expects seasonal demand to improve across most businesses. Natural gas and ethane feedstock costs have moderated in the United States, and operations in Europe and Asia have benefited from lower crude oil costs. Oxyfuel margins are expected to improve during the summer driving season as gasoline crack spreads increase. In Europe, the rapid pace of capacity rationalization continues, which is expected to improve the regional supply-demand balance in the coming years. In addition, a more constructive approach to European economic and regulatory policies also provides measured optimism. Despite economic uncertainty, global packaging demand should remain resilient to meet consumer demand for packaged food, healthcare and other essential daily necessities.

In line with global demand and the company's planned maintenance, LYB expects second quarter operating rates to reach 85% for North American olefins and polyolefins (O&P) assets, 75% for European O&P assets, and 85% for intermediates and derivatives (I&D) assets.