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LYB

LyondellBasell Industries Reports Decrease in Q3 Operations

LyondellBasell Industries N.V. has recently released its 10-Q report, providing detailed insights into its financial performance and operations. The company operates as a chemical company with a global presence, including in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, and the Netherlands. It operates in six segments: Olefins and Polyolefins—Americas; Olefins and Polyolefins—Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. Its products include olefins, polyolefins, polyethylene, polypropylene, propylene oxide, and derivatives, among others.

In the third quarter of 2025, the company's results from continuing operations decreased compared to the second quarter of 2025, primarily due to non-cash impairment charges recognized for its Olefins and Polyolefins-Europe, Asia, International and Advanced Polymer Solutions segments. The company's sales volumes improved, supported by increased olefins margins and higher sales volumes in its Olefins and Polyolefins-Americas segment. However, polypropylene demand remained weak. The company also started a two-month turnaround at its La Porte, Texas acetyls unit during the period.

For the first nine months of 2025, the company's results from continuing operations decreased compared to the same period in 2024, primarily due to non-cash impairment charges recognized for its Olefins and Polyolefins-Europe, Asia, International and Advanced Polymer Solutions segments. The company also entered into a sales and purchase agreement for the sale of select olefins & polyolefins assets and the associated business in Europe, with the closing of the proposed transaction expected in the first half of 2026.

During the first nine months of 2025, the company generated $755 million of cash from operating activities, invested $1,428 million in capital expenditures, and returned $1,522 million to shareholders through dividend payments and share repurchases.

In the third quarter of 2025, the company's revenues increased by $69 million, or 1%, compared to the second quarter of 2025, driven by higher sales volumes and favorable foreign exchange impact, partially offset by lower average sales prices for many of its products. However, in the first nine months of 2025, the company's revenues decreased by $2,524 million, or 10%, compared to the same period in 2024, primarily due to lower average sales prices and lower sales volumes driven by lower demand.

The company's cost of sales decreased by $50 million, or 1%, in the third quarter of 2025 compared to the second quarter of 2025, and by $927 million, or 4%, in the first nine months of 2025 compared to the first nine months of 2024, primarily due to lower feedstock and energy costs. Additionally, the company recognized non-cash impairment charges totaling $1,202 million during the third quarter of 2025, driven by the sustained decline in its market capitalization.

The company's segment analysis revealed that its O&P-Americas segment saw improved profitability in the third quarter of 2025, while its O&P-EAI, I&D, APS, and Technology segments faced challenges, leading to decreases in operating income.

The market has reacted to these announcements by moving the company's shares -3.23% to a price of $45.20. Check out the company's full 10-Q submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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