LyondellBasell Industries has published its Q1 2025 financial results, the summary of which is presented below:

 

LyondellBasell overall key financials

• Total EBITDA: $655 million

• EBITDA excluding identified items: $576 million

• Capital spending: $483 million

• Cash & liquid investments: $1.9 billion

Olefins & Polyolefins — Americas (O&P Americas)

• Products: Olefins, co-products, polyethylene (PE), polypropylene (PP)

• Operating income: $85 million

• Change Q/Q: –$240 million

• Change Y/Y: –$271 million

• EBITDA: $251 million

• Change Q/Q: –$245 million

• Change Y/Y: –$270 million

• Performance drivers: Higher ethane costs, Channelview maintenance, lower ethylene and PE margins

• Combined polyolefin results decreased by approximately $140 million due to lower PE margins driven by higher ethylene monomer costs

• Utilisation: Crackers at ~80% capacity; feedstock ~80% ethane, ~20% other NGLs.

Olefins & Polyolefins — Europe, Asia, International (O&P EAI)

• Products: Olefins, co-products, PE, PP

• Operating loss: ($23) million

• Change Q/Q: +$1,043 million

• Change Y/Y: –$12 million

• EBITDA: $17 million

• Change Q/Q: +$1,173 million

• Change Y/Y: +$3 million

• Performance drivers: No asset impairment this quarter vs Q4 2024; improved margins; better polyolefin volumes

• Olefins results decreased by approximately $20 million due to lower margins driven by higher feedstock costs partially offset by higher ethylene prices and lower volumes due to unplanned downtime

• Combined polyolefins results decreased by approximately $10 million due to higher energy pricing and lower volumes resulting from unplanned downtime

• Utilisation: Crackers at ~80% capacity; 35% non-naphtha feedstocks.

Intermediates & Derivatives (I&D)

• Products: Propylene oxide, oxyfuels, styrene, acetyls

• Operating loss: ($9) million

• Change Q/Q: –$146 million

• Change Y/Y: –$221 million

• EBITDA: $94 million

• Change Q/Q: –$147 million

• Change Y/Y: –$218 million

• Propylene Oxide & Derivatives results decreased by approximately $25 million due to lower material and derivatives margins

• Intermediate Chemicals results increased by approximately $20 million due to higher volumes and margins with higher methanol pricing and lower feedstock costs coupled with the absence of downtime

• Oxyfuels & Related Products results decreased by approximately $115 million as margins were significantly compressed on lower gasoline pricing and blend premiums

• Performance drivers: Dutch PO JV shutdown costs; weaker market conditions in key value chains.

Advanced Polymer Solutions (APS)

• Products: PP compounds, engineered plastics, masterbatches

• Operating income: $17 million

• Change Q/Q: +$88 million

• Change Y/Y: +$30 million

• EBITDA: $46 million

• Change Q/Q: +$86 million

• Change Y/Y: +$11 million

• Performance drivers: Higher margins, cost reduction initiatives.

Technology

• Products: Polyolefin process licensing, catalyst manufacturing

• Operating income: $42 million

• Change Q/Q: –$56 million

• Change Y/Y: –$67 million

• EBITDA: $52 million

• Change Q/Q: –$56 million

• Change Y/Y: –$66 million

• Performance drivers: Fewer licensing contracts closed; lower catalyst sales.

Other & Discontinued Operations

• Discontinued operations EBITDA: $196 million (refinery closure benefits)

• Other (including eliminations) EBITDA: ($1) million

Meanwhile, the company addressed the current uncertainty connected to global trade tensions, stating that LYB is well-positioned to navigate tariff uncertainty through several factors. Firstly, approximately 75% of global polyolefin production is sold in domestic markets. Secondly, world-leading cost-advantaged feedstock positions from US and Middle Eastern production. Besides, the direct impact from escalating tariffs is limited to <10% of polyolefin sales, the company states. Furthermore, around 8% of the company’s global sales are directly exposed to other potential counter-tariffs, less than 1% of global sales are directly exposed to US tariffs, and around 1% of the global sales are directly exposed to potential counter-tariffs from China.

On the top of that, LyondellBasell is strengthening its cost-advantaged position in the Middle East through a partnership with Sipchem, having been awarded ethane and butane allocations for a new petrochemical complex in Jubail, Saudi Arabia, where LYB will hold a 40% stake. The project includes a 1.5 million tpy ethylene cracker and a portfolio of downstream polyolefin derivatives, leveraging cost-advantaged feedstocks. Development is progressing through a measured and disciplined approach, with a joint feasibility study underway targeting a 2031 start-up.

Demand-wise, Peter Vanacker, the company’s CEO, explained that despite lower crude prices, China's demand remains weak, and investment-driven stimulus initiatives have yet to support direct consumption. The PE trade deficit in China is expected to remain significant even with new capacity. The demand for additional licenses has dropped, impacting future capacity buildup. Kim Foley, EVP, added that while naphtha prices have decreased, PE quotes in China have also dropped, compressing margins. The Bora joint venture continues to operate at technical minimums, indicating challenges for other capacities.

In its earnings call, the company’s CEO Peter Vanacker stated that LyondellBasell is hardly a major exporter of PE and has strong domestic volumes due to its differentiated portfolio and customer relationships. Kimberly Foley added that in the context of trade tensions, the company’s trade flows are adjusting, with exports shifting to Southeast Asia and other markets, ensuring that LyondellBasell remains well-positioned globally.

As for earlier announced European assets review, Peter Vanacker indicated that the European strategic review is progressing well, with updates expected by mid-year. The focus is on upgrading the portfolio, which should enhance EBITDA. The company aims to emerge stronger from the cycle, with a more focused and profitable European presence.

In its near-term market outlook, the company mentioned the following:

• North America: Potential upside due to lower feedstock costs; potential for trade disruption as supply chains re-adjust; PE price increase announced;

• Europe: Lower feedstock costs helping margins; pricing power on lower imports; ongoing rationalisation in the European petrochemicals market; German stimulus measures* expected to provide medium-term support.

• Asia: Additional supportive measures (fiscal, monetary, stimulus) encouraging domestic consumption; sentiment negatively impacted by trade escalations.

In downstream, the company expects steady global demand for packaging even in periods of economic uncertainty; modest housing demand growth for US existing homes to be likely offset by weakness elsewhere; and potential for US trade disruption in automotive.

*On 13 July 2023, the European Commission provided a financial grant to LyondellBasell Industries to finance its MoReTec-1 project, which aims to construct a plastics recycling plant in Germany. The project was selected as a beneficiary of the EU's Innovation Fund. Specifically, the MoReTec-1 project aims to construct an advanced plastics recycling plant in Germany. The plant will convert processed mixed plastic waste into pyrolysis oil and pyrolysis gas for use as feedstock in crackers. The recycling plant will be able to operate fully on renewable electricity.

Thirteen European producers of strapping materials have formed the Project Alliance Strapping to seek the exclusion of strapping materials from the requirements of the new EU Packaging and Packaging Waste Regulation (PPWR). The issue is particularly critical with Article 29, which sets mandatory quotas for the reuse of packaging for transportation, including strapping materials.

Polypropylene (PP) and polyethylene terephthalate (PET) — the two key materials used in strapping production — are known for their high strength, moisture resistance, full recyclability, and energy efficiency in production, making them highly eco-friendly compared to other types of packaging.

However, industry representatives warn that the repeated use of recycled PP and PET strapping is unsafe, as over time these materials lose strength, which can lead to cargo instability during transportation. Furthermore, the organisation of reverse collection and reuse of such strapping is practically unfeasible from a logistical perspective.

Martin Bussmann, a representative of Mosca and Vice-Chair of the alliance, stated: ‘In principle, we support and welcome the PPWR. However, there is an urgent need for action regarding Article 29, which defines the requirements and quotas for the reuse of transportation safety devices such as stretch film, pallet covers, and strapping materials.’

The alliance plans to submit a scientifically-backed position paper to the European Commission by mid-2025. The document will argue that a ban on the single-use of PP and PET strapping will lead to a reduction in transportation safety and an increase in overall waste. The arguments will be supported by studies, including research conducted by the Fraunhofer Institute.

The alliance includes companies such as Mosca, Teufelberger, Fromm Plastics, Messersi, Sekisui Jushi, Embalcer, Cpdesign, Green Tech, and others.

China's economy demonstrated robust growth in Q1 2025, with GDP reaching CNY 31,875.8 billion, up 5.4% year-on-year, according to recent government data.

The manufacturing sector showed particularly strong performance, with value added increasing by 7.1% year-on-year. High-tech production grew by 9.7%, accelerating 0.8 percentage points faster than in 2024.

However, Chinese citizens are concerned that recent US tariff announcements could impact China's manufacturing exports, particularly in the automotive, high-tech sectors and, by extension, polymer market.

Reminder: China increased tariffs on US goods to 125% from 84% on 11 April in retaliation to President Donald Trump's recent tariff hikes. Chinese officials stated that with tariffs at current levels, ‘there is no longer a market for US goods imported into China’ and warned they would ignore any further US increases. China expressed openness to trade talks with the US on 16 April, even after the White House clarified that China now faces up to a 245% tariff on imports in the United States.