LyondellBasell — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $758 million ($2.32 per diluted share) for the three months ended September 30, 2026, compared to net income of $559 million ($1.71 per share) in the prior quarter and a net loss of $890 million ($2.77 per share) in the same period last year.
• Reported net income of $1,442 million ($4.42 per share) for the nine months ended September 30, 2026, compared to a net loss of $598 million ($1.89 per share) in the prior year period.
• Sales and other operating revenues were $8,499 million for the quarter, down from $9,177 million in Q2 2026 and up from $7,727 million in Q3 2025.
• EBITDA was $1.420 billion for the quarter, up from $1.252 billion in Q2 2026 and significantly higher than the $(480) million loss in Q3 2025.
• EBITDA excluding identified items was $1.512 billion for the quarter, compared to $2.127 billion in Q2 2026 and $835 million in Q3 2025.
• Nine-month EBITDA was $3.240 billion, compared to $781 million in the prior year period.
• Nine-month EBITDA excluding identified items was $4.254 billion, compared to $2.126 billion in the prior year period.
• Recognized $70 million of identified items, net of tax, during the quarter, including closure costs for a European propylene oxide joint venture.
• Generated $1.7 billion in cash from operating activities during the quarter.
• Capital expenditures were $303 million; shareholder returns via dividends were $224 million.
• Repaid a €500 million note maturity in September.
• Held $3.2 billion in cash and cash equivalents and $7.7 billion in total liquidity at quarter-end.

Guidance and Future Outlook:

• Expects fourth quarter operating rates of 85% for North American O&P assets, 60% for European O&P assets, and 75% for Intermediates & Derivatives assets to align with global demand and planned maintenance.
• Anticipates normal seasonal demand patterns and ongoing supply uncertainty in the fourth quarter.
• Expects a seasonal release of working capital in the fourth quarter.
• Notes that conditions in the Middle East are likely to remain fluid with a potential return to pre-conflict conditions taking longer than anticipated.
• Polyethylene domestic and export demand remains strong, with pricing improving through the end of the third quarter.
• Oxyfuels margins and demand remain strong.
• Capital allocation priorities remain focused on safe asset operation, balance sheet strengthening through deleveraging, maintaining an attractive dividend, and selective investment.

Business Segments and Product Lines:

• Olefins and Polyolefins (O&P) – Americas: Profitability fell in the third quarter compared to the second quarter, driven by lower prices for polymers and olefin products.
• O&P – Europe, Asia and International: Polymer prices fell, pressuring margins; volumes were lower sequentially due to the sale of certain European assets in May 2026.
• Intermediates and Derivatives (I&D): Delivered materially higher quarterly profitability, largely driven by oxyfuels.
• Oxyfuels: Global supply disruptions led to higher crack spreads and favorable gasoline blend economics expanded Europe and U.S. oxyfuel margins.
• Channelview PO/TBA Asset: Utilization increased to approximately 110% through the Value Enhancement Program.
• Bayport PO/TBA: Operated at full rates following a successful restart in June.
• Acetyls: Benefited from improved reliability at LaPorte.
• Clinton Turnaround: Completed on time and under budget.
• European Asset Divestiture: Completed the divestiture of select European O&P assets and associated businesses in May 2026.
• Dutch PO Joint Venture: Permanent closure announced in March 2025, resulting in shutdown-related charges.
• Refining Business: Previously disclosed as the Refining segment, reported as a discontinued operation following the cessation of business operations at the Houston refinery in February 2025.

Market and Competitive Landscape:

• Industry integrated polyethylene margins ended the third quarter at approximately 50% above 2025 levels, supported by positive polyethylene price momentum in September.
• Customer buying patterns have been impacted by inventory levels and price volatility.
• Reliable supply and operational flexibility are expected to remain important differentiators as markets adjust.
• The company's cost-advantaged assets and exposure to diverse end markets are positioned to underpin future earnings and cash flow.

Risks and Challenges:

• Ongoing geopolitical uncertainty in the Middle East and potential non-linear return to pre-conflict conditions.
• Dynamic market conditions with diverging impacts in key markets.
• Price volatility for polymers and olefin products.
• Forward-looking statements are subject to risks including market conditions, raw material cost volatility, labor conditions, operating interruptions, supply/demand balances, and regulatory actions.

Management Commentary and Tone:

• CEO Peter Vanacker stated the company delivered "another quarter of strong earnings and robust cash conversion through disciplined execution."
• Management highlighted the strength of the global, cost-advantaged portfolio and the resilience of the leaner structure.
• Strategy involves optimizing feedstocks, directing products to attractive markets, and aligning operating rates with demand.
• Management emphasized prioritizing safety, reliability, and cost discipline to maximize margins and generate cash.
• The tone reflects confidence in the diversified portfolio, specifically noting the strength of the oxyfuels business and higher I&D profitability.

Other Key Points:

• Conference call scheduled for October 30 at 11 a.m. EDT featuring CEO Peter Vanacker, CFO Agustin Izquierdo, and other senior executives.
• The company continues to execute the Cash Improvement Plan, including reducing global structural fixed costs.
• Non-GAAP measures (EBITDA, net income, and EPS excluding identified items) are provided to supplement GAAP results, with identified items including LCM adjustments, loss on sale of business, asset write-downs, Cash Improvement Plan costs, site closure costs, European transaction costs, and discontinued operations.
• The company holds leading positions in polyolefins, oxyfuels, propylene oxide, and acetyls.