LyondellBasell Industries N.V.
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 25, 2025
LYB$60.72-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001489393-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0001489393-25-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 132 current paragraphs.
61 unchanged; 33 reworded; 38 added; 56 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation. The related operating results of our refining business are reported as discontinued operations for all periods presented.
Current report
Results for the first quarter of 2025 decreased compared to the first quarter of 2024. In our O&P-Americas segment, integrated polyethylene profitability was pressured by lower margins associated with higher ethane and natural gas costs. Margins for our I&D segment fell due to lower gasoline pricing and blend premiums. In our Technology segment, licensing results decreased.
Current report
Revenues decreased by $627 million or 8% in the first quarter of 2025 compared to the first quarter of 2024. Lower sales volumes driven by planned and unplanned outages and lower demand led to a 6% decrease in revenue. Unfavorable foreign exchange impact led to a 2% decrease in revenues.
Current report
Cost of Sales—Cost of sales increased by $125 million, or 2%, in the first quarter of 2025 compared to the fourth quarter of 2024 primarily due to $117 million in shutdown costs recognized during the first quarter of 2025 related to our plans to permanently close the Propylene Oxide Styrene Monomer (POSM) production unit at the Maasvlakte site in the Netherlands, a joint venture between us and Covestro. Cost of sales remained relatively unchanged in the first quarter of 2025 compared to the first quarter of 2024.
Current report
Impairments—During the fourth quarter of 2024, we recognized non-cash impairment charges of $944 million, primarily consisting of impairments of property, plant and equipment of $892 million in our O&P-EAI and Advanced Polymer Solutions (“APS”) segments.
Current report
Operating Income (Loss)—Operating income increased by $711 million, or 119%, in the first quarter of 2025 compared to the fourth quarter of 2024. Operating income in our O&P-EAI and APS segments increased by $1,043 million and $88 million, respectively. These increases were partially offset by decreases in our O&P-Americas, I&D and Technology segments of $249 million, $146 million, and $56 million, respectively.
Current report
Income (Loss) from Equity Investments—Income from equity investments improved by $152 million or 101%, in the first quarter of 2025 compared to the fourth quarter of 2024 as the fourth quarter of 2024 reflects the recognition of a deferred tax valuation allowance by a Chinese joint venture in our O&P-EAI segment. Income from equity investments increased by $28 million or 104% in the first quarter of 2025 compared to the first quarter of 2024 as the first quarter of 2024 included equity losses recognized by a Chinese joint venture in our O&P-EAI segment.
Current report
Income Taxes—Our effective income tax rate for the first quarter of 2025 was 61.0% compared to 31.2% for the fourth quarter of 2024. The higher effective tax rate for the first quarter of 2025 was due to decreased pre-tax earnings relative to our tax rate drivers, primarily changes in foreign exchange gains or losses recognized discretely, which increased the effective tax rate by 56.3 percentage points. This increase to the effective tax rate was partially offset by changes in earnings in countries with varying statutory tax rates, largely attributable to fourth quarter 2024 non-cash impairments, decreasing the effective tax rate by 26.0 percentage points.
Current report
Our effective income tax rate for the first quarter of 2025 was 61.0% compared to 20.3% for the first quarter of 2024. The discrete tax recognition of foreign exchange gains and losses with lower pre-tax earnings increased our effective tax rate by 39.3 percentage points in the first quarter of 2025.
Current report
Income (Loss) from Discontinued Operations, Net of Tax—Income from discontinued operations increased by $194 million in the first quarter of 2025 compared to the fourth quarter of 2024, and by $114 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the liquidation of low cost inventory in the first quarter of 2025.
Current report
Overview—EBITDA decreased in the first quarter of 2025 compared to the fourth quarter of 2024 and first quarter of 2024, primarily due to lower margins largely driven by higher feedstock costs.
Current report
First quarter of 2025 versus fourth quarter of 2024—Lower volumes due to planned and unplanned outages resulted in a 14% decrease in revenue. Higher ethylene and polyethylene average sales prices resulted in a 4% increase in revenue.
Current report
First quarter of 2025 versus first quarter of 2024—Lower co-product volumes driven by planned and unplanned outages resulted in a 12% decrease in revenue. Lower average sales prices for co-products driven by lower oil environment resulted in a 2% decrease in revenue.
Current report
EBITDA—EBITDA decreased by $245 million, or 49%, in the first quarter of 2025 compared to the fourth quarter of 2024 and by $270 million, or 52%, in the first quarter of 2025 compared to the first quarter of 2024.
Current report
First quarter of 2025 versus fourth quarter of 2024—Lower olefins results led to a 44% decrease in EBITDA driven by lower margins resulting from higher ethane feedstock and natural gas costs coupled with lower co-product contribution as a result of the planned maintenance at our Channelview site. Lower polymer results led to a 15% decrease in EBITDA primarily due to lower margins reflecting increased monomer cost. During the fourth quarter of 2024 we recognized a LIFO inventory charge of $22 million. The absence of a similar charge in the first quarter of 2025 resulted in a 4% increase in EBITDA.
Current report
Overview—During the fourth quarter of 2024 we recognized an $837 million non-cash impairment of property, plant and equipment related to assets included in our European strategic review. The absence of similar charges in the first quarter of 2025 resulted in an increase in EBITDA compared to the fourth quarter of 2024. EBITDA also increased in the first quarter of 2025 relative to the first quarter of 2024, as improved performance from our equity investments was partially offset by lower olefins and polyethylene results.
Current report
First quarter of 2025 versus first quarter of 2024—Lower volumes resulted in a decrease of 4% due to lower demand and unplanned downtime. Higher average sales prices resulted in a 2% increase in revenue. Unfavorable foreign exchange impacts resulted in a 3% decrease in revenues.
Current report
First quarter of 2025 versus fourth quarter of 2024—The absence of impairment charges in the first quarter of 2025 relative to the fourth quarter of 2024 resulted in a 72% increase in EBITDA. Improved results from our equity investments resulted in a 13% increase in EBITDA as the fourth quarter of 2024 was impacted by the recognition of a deferred tax valuation allowance by a Chinese joint venture. Improved olefins led to a 6% increase in EBITDA. Approximately 60% of the change was driven by improved margins as ethylene prices improved while variable costs declined with the remainder driven by higher volumes from the absence of planned downtime. Improved polymer results led to a 4% increase in EBITDA driven by increased margins as a result of higher average sales prices.
Current report
First quarter of 2025 versus first quarter of 2024—A decrease in loss from equity investments led to a 186% increase in EBITDA driven by the absence of losses recognized by a Chinese joint venture in the first quarter of 2024. Lower olefins results drove a 164% decrease in EBITDA. Approximately 50% of the change was driven by lower volumes as a result of unplanned downtime and the remainder was due to lower margins driven by higher feedstock costs. Lower polyolefins results led to a 143% decrease in EBITDA primarily driven by lower volumes resulting from lower demand and unplanned downtime.
Current report
Overview—EBITDA decreased in the first quarter of 2025 compared to the fourth quarter of 2024 and the first quarter of 2024 primarily as a result of shutdown costs incurred by our European PO Joint Venture. The remainder of the change was largely driven by a decrease in oxyfuels and related products margins.
Current report
First quarter of 2025 versus fourth quarter of 2024—Sales volumes decreased due to lower demand for oxyfuels and related products resulting in a 5% decrease in revenue. Higher average sales prices resulted in a 2% increase in revenue largely as a result of higher feedstock pricing driving up product pricing.
Current report
EBITDA—EBITDA decreased by $147 million, or 61%, in the first quarter of 2025 compared to the fourth quarter of 2024 and by $218 million, or 70%, in the first quarter of 2025 compared to the first quarter of 2024.
Current report
First quarter of 2025 versus fourth quarter of 2024—In March 2025, we announced our plans to permanently close the POSM production unit at the Maasvlakte site in the Netherlands, a joint venture between us and Covestro. This resulted in the recognition of $117 million of shut-down costs which decreased EBITDA by 49%. Oxyfuels and related products results led to an EBITDA decrease of 8%. Approximately, half of the decrease was driven by lower margins reflecting lower blend premiums with the other half driven by a decrease in volumes due to lower demand. Intermediate chemicals results led to an 8% decrease in EBITDA driven primarily by lower margins from higher raw material costs.
Current report
First quarter of 2025 versus first quarter of 2024—Oxyfuels and related products results led to an EBITDA decrease of 38% as margins were significantly compressed on lower gasoline pricing and blend premiums. The remainder of the change was primarily driven by shutdown costs discussed above.
Current report
Overview—EBITDA increased in the first quarter of 2025 relative to the fourth quarter of 2024, primarily due to a non-cash impairment charge recognized in the fourth quarter of 2024 related to our specialty powders business. EBITDA increased in the first quarter of 2025 relative to the first quarter of 2024, primarily due to higher margins.
Current report
Revenue—Revenues increased by $83 million, or 10%, in the first quarter of 2025 compared to the fourth quarter of 2024 and decreased by $57 million, or 6%, in the first quarter of 2025 compared to the first quarter of 2024.
Current report
First quarter of 2025 versus fourth quarter of 2024—Sales volumes increased resulting in a 12% increase in revenue stemming from seasonal demand improvements. Lower average sales prices resulted in a 1% decrease in revenue. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%.
Current report
First quarter of 2025 versus fourth quarter of 2024—During the fourth quarter of 2024, we recognized a non-cash impairment charge of $55 million related to our specialty powders business. The absence of a similar impairment charge in the first quarter of 2025 resulted in a 138% increase in EBITDA. Increased volumes primarily driven by seasonal demand resulted in a 63% increase in EBITDA.
Current report
First quarter of 2025 versus first quarter of 2024—Increased margins, driven by higher sales margins and cost efficiency improvements, resulted in a 57% increase in EBITDA. Lower volumes driven by weaker automotive demand and challenging marketing conditions resulted in a 20% decrease in EBITDA.
Current report
Revenue—Revenues decreased by $54 million, or 31%, in the first quarter of 2025 compared to the fourth quarter of 2024 and by $72 million, or 38%, in the first quarter of 2025 compared to the first quarter of 2024.
Current report
First quarter of 2025 versus first quarter of 2024—Lower licensing revenues resulting from recognition of revenue on fewer contracts drove a 29% decrease in revenue. Lower catalyst volumes driven by weaker market sentiment resulted in a 7% decrease in revenues. Unfavorable foreign exchange impact resulted in a 3% decrease in revenues. Higher catalyst average sales prices resulted in a 1% increase in revenues.
Current report
EBITDA—EBITDA decreased by $56 million, or 52%, in the first quarter of 2025 compared to the fourth quarter of 2024 and by $66 million, or 56%, in the first quarter of 2025 compared to the first quarter of 2024.
Current report
First quarter of 2025 versus fourth quarter of 2024—Licensing results led to a 43% decrease in EBITDA driven by recognition of revenue on fewer contracts. During the fourth quarter of 2024 we recognized a LIFO inventory benefit of $8 million. The absence of a similar benefit in the first quarter of 2025 resulted in a 7% decrease in EBITDA.
Current report
First quarter of 2025 versus first quarter of 2024—Licensing results led to a 45% decrease in EBITDA driven by recognition of revenue on fewer contracts. Lower catalyst volumes driven by weaker market sentiment resulted in a 9% decrease in EBITDA.
Current report
Cash Improvement Plan
Current report
In April 2025, to address ongoing macroeconomic volatility, we announced a Cash Improvement Plan targeting a $500 million run-rate in annualized savings. The Cash Improvement Plan includes three initiatives: (1) deferral of $100 million of capital spending; (2) $200 million reduction in working capital; and (3) fixed cost reductions of $200 million, excluding one-time implementation costs estimated to be less than $50 million. Working capital and fixed cost reductions are relative to our internal 2025 plan. We will continue to prioritize capital spending on maintenance and certain growth projects. Fixed cost reductions may be achieved through contract changes, reductions in employees and employee-related expenses or other means.
Current report
In the second quarter of 2025, we expect seasonal demand improvements across most businesses. U.S. natural gas and ethane feedstock costs have moderated and operations in Europe and Asia are benefiting from lower crude oil costs. Oxyfuels margins should improve with higher gasoline crack spreads during the summer driving season. In Europe, the rapid pace of capacity rationalization continues and is expected to improve regional supply and demand balances over the coming years. Additionally, more constructive approaches to European economic and regulatory policies are providing measured optimism. Despite economic uncertainty, global packaging demand should remain resilient in serving consumer needs for packaged food, healthcare and other essential everyday products.
Current report
We continue to monitor the direct and indirect effects of tariffs on our business amidst fluctuating trade policies. Our global supply network is mainly positioned to serve local demand. Approximately 75% of our polyethylene and polypropylene polymers are sold within domestic markets and not subject to direct impacts from tariffs. On a global scale, less than 10% of our polyolefin sales volumes are expected to experience direct effects from escalating tariffs and counter-tariffs related to U.S. trade.
Removed paragraphs (56)
Previous report
Results for the first nine months of 2024 remained relatively flat compared to the first nine months of 2023. Our Refining segment results decreased as a result of decreases in the Maya 2-1-1 industry crack spread. Our I&D segment results decreased due to lower gasoline crack spreads which impacted our oxyfuels business partially offset by the gain on the sale of the Ethylene Oxide & Derivatives (“EO&D”) business. These decreases were offset by improvement in our Advanced Polymer Solutions (“APS”) segment results driven primarily by the absence of a non-cash goodwill impairment recognized in the first quarter of 2023. Additionally, improvements in our O&P-Americas and O&P-EAI segments were driven by higher olefins margins driven by higher ethylene prices coupled with lower costs.
Previous report
During the second quarter of 2024, we announced a strategic review of some of our European assets to position the company for a more sustainable and circular future by strengthening profitability and competitive advantage in the region.
Previous report
Revenues decreased by $373 million or 1% in the first nine months of 2024 compared to the first nine months of 2023 due to lower sales volumes.
Previous report
Cost of Sales—Cost of sales decreased by $68 million, or 1%, in the third quarter of 2024 compared to the second quarter of 2024 and increased by $82 million, or less than 1%, in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by feedstock and energy costs, including the impact of our commodity hedges.
Previous report
Impairments—During the first nine months of 2023 we recognized a non-cash goodwill impairment charge of $252 million in our APS segment after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments. Additionally, we recognized a non-cash impairment charge of $25 million related to capital project costs in our O&P-Americas segment.
Previous report
SG&A Expenses—Selling, general and administrative (“SG&A”) expenses remained relatively unchanged in the third quarter of 2024 compared to the second quarter of 2024 and increased by $79 million, or 7%, in the first nine months of 2024 compared to the first nine months of 2023, primarily attributable to an increase in employee-related expenses.
Previous report
Operating income decreased by $262 million, or 10%, in the first nine months of 2024 compared to the first nine months of 2023. Operating income in our I&D, Refining, and Technology segments decreased by $478 million, $359 million and $25 million, respectively. These decreases were partially offset by increases in our APS, O&P-Americas and O&P-EAI segments of $267 million, $250 million and $78 million, respectively.
Previous report
Gain on Sale of Business—In the second quarter of 2024, we completed the sale of our EO&D business and associated production facilities located in Bayport, Texas and recognized a pre-tax gain of $293 million. See Note 12 to the Consolidated Financial Statements for additional information.
Previous report
(Loss) Income from Equity Investments—Loss from equity investments remained relatively unchanged in the third quarter of 2024 compared to the second quarter of 2024.
Previous report
Income from equity investments decreased by $77 million or 700% in the first nine months of 2024 compared to the first nine months of 2023. Approximately 60% of the decrease was driven by changes in our O&P-EAI segment, including the impact of a one-time gain on sale of an asset recognized by one of our European joint ventures in the first quarter of 2023. The remaining change was primarily driven by lower polypropylene margins at our Mexican joint venture in our O&P-Americas segment.
Previous report
Income Taxes—Our effective income tax rate for the third quarter of 2024 was 18.8% compared to 21.2% for the second quarter of 2024. In the third quarter of 2024, the impact of changes in pre-tax income in countries with varying statutory tax rates, changes in return to accrual adjustments, and an increase in exempt income decreased our effective income tax rate by 2.8%, 2.8%, and 1.2%, respectively. These decreases were partially offset by fluctuations in foreign exchange gains or losses that increased our effective income tax rate by 4.3%.
Previous report
Our effective income tax rate for the first nine months of 2024 was 20.4% compared to 20.8% for the first nine months of 2023. The lower effective income tax rate for the first nine months of 2024 was primarily due to the first quarter 2023 goodwill impairment, for which there was no tax benefit, and an audit settlement during the second quarter 2023 of 1.7% and 1.6%, respectively. These decreases were partially offset by a 2.3% increase in our effective income tax rate due to a decrease in exempt income.
Previous report
Defined pension and postretirement benefit plans remained relatively unchanged in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023.
Previous report
Overview—EBITDA increased in the third quarter of 2024 compared to the second quarter of 2024, and in the first nine months of 2024 relative to the first nine months of 2023, primarily due to improved olefins margins.
Previous report
Third quarter of 2024 versus second quarter of 2024—Revenue increased by 1% as a result of higher average sales prices driven by a decline in olefins supply in the industry. Higher sales volumes, driven by improved operating rates, contributed to a 1% increase in revenue.
Previous report
First nine months of 2024 versus first nine months of 2023—Higher propylene and polypropylene average sales prices resulted in a 7% increase in revenue. Lower volumes driven by lower cracker operating rates resulted in a 3% decrease in revenue.
Previous report
Third quarter of 2024 versus second quarter of 2024—Higher olefins results led to a 22% increase in EBITDA driven by higher margins resulting from higher ethylene average sales prices due to industry cracker downtime and lower ethane feedstock cost. Lower polymer results led to a 7% decrease in EBITDA primarily due to lower margins reflecting higher monomer cost.
Previous report
Overview—EBITDA increased in the third quarter of 2024 compared to the second quarter of 2024, and in the first nine months of 2024 relative to the first nine months of 2023, primarily due to margin improvements.
Previous report
Revenue—Revenues decreased by $33 million, or 1%, in the third quarter of 2024 compared to the second quarter of 2024 and increased by $329 million, or 4%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous report
First nine months of 2024 versus first nine months of 2023—Higher average sales prices resulted in an increase of 2% due to increased demand. Higher volumes resulted in an increase of 2% due to higher demand.
Previous report
Third quarter of 2024 versus second quarter of 2024—EBITDA improved largely due to higher polyolefins results which were driven by moderately higher margins.
Previous report
First nine months of 2024 versus first nine months of 2023—Higher polyolefins results led to a 73% increase in EBITDA primarily driven by higher margins as a result of higher average sales prices and lower energy costs. Improved olefins results resulted in a 21% increase in EBITDA primarily driven by higher margins as a result of higher ethylene prices and lower costs of ethylene production reflecting an increased use of advantaged feedstocks. Losses from our equity investments led to a decline in EBITDA of 40% driven by lower results from our Saudi Arabian and Asian joint ventures combined with the absence of a gain on sale of asset recognized by one of our joint ventures in Europe in the first quarter of 2023.
Previous report
Overview—EBITDA decreased in the third quarter of 2024 compared to the second quarter of 2024, primarily due to the absence of the gain on the sale of the EO&D business recognized in the second quarter of 2024. EBITDA decreased in the first nine months of 2024 compared to the first nine months of 2023 primarily due to lower margins for oxyfuels and related products, partially offset by the recognition of a gain on the sale of the EO&D business in the second quarter of 2024.
Previous report
Revenue—Revenues decreased by $109 million, or 4%, in the third quarter of 2024 compared to the second quarter of 2024 and by $358 million, or 4%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous report
Third quarter of 2024 versus second quarter of 2024—Lower average sales prices resulted in a 6% decrease in revenue driven primarily by lower crude and gasoline crack spreads. Sales volumes increased due to the absence of unplanned downtime resulting in a 1% increase in revenue. Favorable foreign exchange impact resulted in a 1% increase in revenue.
Previous report
EBITDA—EBITDA decreased by $477 million, or 60%, in the third quarter of 2024 compared to the second quarter of 2024 and by $183 million, or 11%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous report
Third quarter of 2024 versus second quarter of 2024—In the second quarter of 2024 we recognized a $293 million gain on the sale of our EO&D business. The absence of a similar gain in the third quarter resulted in a 37% decrease in EBITDA. Oxyfuels and related products results led to an EBITDA decrease of 15% as margins decreased reflecting lower gasoline crack spreads.
Previous report
First nine months of 2024 versus first nine months of 2023—Oxyfuels and related products results led to an EBITDA decrease of 26% driven by lower margins reflecting lower gasoline cracks and blend premiums. Propylene oxide and derivatives results drove a 3% decrease in EBITDA as lower demand pressured margins. EBITDA increased 18% primarily due to the recognition of the gain on sale of the EO&D business during the first nine months of 2024.
Previous report
Overview—EBITDA decreased in the third quarter of 2024 relative to the second quarter of 2024 primarily due to lower demand. During the first nine months of 2023 we recognized a non-cash goodwill impairment charge of $252 million.
Previous report
First nine months of 2024 versus first nine months of 2023—Average sales prices decreased resulting in a 3% decrease in revenue. Sales volumes increased resulting in a 1% increase in revenue due to increased recycled compounds capacity.
Previous report
EBITDA—EBITDA decreased by $21 million or 53% in the third quarter of 2024 compared to the second quarter of 2024 and increased by $268 million or 154% in the first nine months of 2024 compared to the first nine months of 2023.
Previous report
Third quarter of 2024 versus second quarter of 2024— Decreases in volumes and margins resulted in a 35% and 18% reduction in EBITDA, respectively, primarily driven by lower automotive demand in Europe.
Previous report
First nine months of 2024 versus first nine months of 2023—During the first nine months of 2023 we recognized a non-cash goodwill impairment charge of $252 million after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments. The absence of a similar impairment charge in the first nine months of 2024 was the primary driver for the improved EBITDA results.
Previous report
Refining Segment
Previous report
Overview—EBITDA decreased in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023 primarily due to lower margins.
Previous report
The following table sets forth selected financial information and heavy crude oil processing rates for the Refining segment and the U.S. refining market margins for the applicable periods. “Brent” is a light sweet crude oil and is one of the main benchmark prices for purchases of oil worldwide. “Maya” is a heavy sour crude oil grade produced in Mexico that is a relevant benchmark for heavy sour crude oils in the U.S. Gulf Coast market. References to industry benchmarks for refining market margins are to industry prices reported by Platts, a division of S&P Global.
Previous report
Third quarter of 2024 versus second quarter of 2024—Lower sales volumes due to unplanned outages at our fluid catalytic cracking unit led to a 7% decrease in revenue. Lower product prices led to a revenue decrease of 5% due to an average Brent crude oil price decrease of approximately $6.46 per barrel.
Previous report
First nine months of 2024 versus first nine months of 2023—Lower product prices led to a revenue decrease of 8% due to lower average sales prices reflecting lower margins on refined products. Sales volumes decreased resulting in a 3% decrease in revenue due to lower operating rates.
Previous report
EBITDA—EBITDA decreased by $53 million, or 757%, in the third quarter of 2024 compared to the second quarter of 2024 and by $381 million, or 103%, in the first nine months of 2024 compared to the first nine months of 2023.
Previous report
Third quarter of 2024 versus second quarter of 2024—Lower margins resulted in an EBITDA decrease of 486% in the third quarter of 2024 primarily due to a decrease in the Maya 2-1-1 industry crack spread of approximately $3.49 per barrel to $25.64 per barrel driven by lower gasoline crack spreads driven by lower demand and high industry operating rates. An increase in costs incurred related to our planned exit from the refining business in the third quarter of 2024 compared to the second quarter of 2024 resulted in a 214% decrease in EBITDA.
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Reworded paragraphs (33)
Previous wording
Results for the third quarter of 2024 declined compared to the second quarter of 2024. In our Olefins and Polyolefins-Americas (“O&P-Americas”) segment, integrated polyethylene margins increased, driven by favorable ethane and natural gas costs coupled with higher polyethylene prices. Our third quarter volumes benefited from high cracker operating rates that captured improved margins on ethylene sales. In our Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segment, integrated polyethylene margins expanded due to lower feedstock costs and stable polyolefins prices. Margins for our Intermediates and Derivatives (“I&D”) and Refining segments fell due to lower crude oil prices and gasoline crack spreads.
Current wording
Results for the first quarter of 2025 increased compared to the fourth quarter of 2024, which included $944 million of impairments primarily in our Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segment. In our Olefins and Polyolefins-Americas (“O&P-Americas”) segment, integrated polyethylene profitability was pressured by lower volumes and margins associated with planned and unplanned maintenance coupled with higher ethane and natural gas costs. In our O&P-EAI segment, improved integrated polyethylene profitability was driven by improved margins and increased ethylene cracker utilization following planned maintenance and typical seasonal demand improvements coupled with modest customer restocking. In our Intermediates and Derivatives (“I&D”) segment, acetyls and oxyfuels margins declined as higher natural gas prices impacted costs. The lower ratio of oil-to-gas prices remained a headwind affecting the Company's relative feedstock economics across several value chains.
Previous wording
We remain committed to our balanced and disciplined capital allocation strategy. During the first nine months of 2024 we generated $1,904 million in cash from operating activities, invested $1,335 million in capital expenditures and returned $1,400 million to shareholders through dividend payments and share repurchases.
Current wording
During the first quarter of 2025 we used $579 million of cash from operating activities primarily due to a build of working capital. In connection with our overall capital allocation strategy, we invested $483 million in capital expenditures and returned $543 million to shareholders through dividend payments and share repurchases.
Previous wording
Revenues—Revenues decreased by $236 million, or 2%, in the third quarter of 2024 compared to the second quarter of 2024. Lower volumes, driven by lower demand and unplanned downtime in our refining segment, resulted in a 2% decrease in revenues. Lower average sales prices for many of our products resulted in a 1% decrease in revenues. Favorable foreign exchange impact resulted in a 1% increase in revenues.
Current wording
Revenues—Revenues decreased by $131 million, or 2%, in the first quarter of 2025 compared to the fourth quarter of 2024. Lower volumes, driven by planned and unplanned outages in our O&P-Americas segment and lower demand, resulted in a 6% decrease in revenues. Unfavorable foreign exchange impact resulted in a 1% decrease in revenues. Higher average sales prices for many of our products resulted in a 5% increase in revenues.
Previous wording
Operating Income—Operating income decreased by $168 million, or 17%, in the third quarter of 2024 compared to the second quarter of 2024. Operating income in our I&D, Refining, APS and Technology segments decreased by $182 million, $35 million, $20 million and $13 million, respectively. These decreases were partially offset by increases in our O&P-Americas and O&P-EAI segments of $77 million and $9 million, respectively.
Current wording
Operating income decreased by $537 million, or 82%, in the first quarter of 2025 compared to the first quarter of 2024. Operating income in our O&P-Americas, I&D, Technology and O&P-EAI segments decreased by $271 million, $221 million, $67 million and $12 million, respectively. These decreases were partially offset by an increase of $4 million in our APS segment.
Previous wording
Comprehensive Income—Comprehensive income decreased by $211 million in the third quarter of 2024 compared to the second quarter of 2024, primarily due to the decrease in Net income. Comprehensive income increased by $164 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to the net favorable impacts of unrealized changes in foreign currency translation adjustments. The components of Other comprehensive income (loss) are discussed below.
Current wording
Comprehensive Income (Loss)—Comprehensive income increased by $1,023 million in the first quarter of 2025 compared to the fourth quarter of 2024, primarily due to the increase in Net income and the net favorable impacts of unrealized changes in foreign currency translation adjustments. Comprehensive income decreased by $155 million in the first quarter of 2025 compared to the first quarter of 2024, primarily due to the decrease in Net income offset by the net favorable impacts of unrealized changes in foreign currency translation adjustments. The components of Other comprehensive income (loss) are discussed below.
Previous wording
Financial derivatives designated as cash flow hedges, primarily our commodity swaps, led to a decrease in Comprehensive income of $37 million and an increase of $38 million in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023, respectively, reflecting commodity price volatility.
Current wording
Financial derivatives designated as cash flow hedges, primarily our commodity swaps, led to a decrease in Comprehensive income of $24 million and an increase of $28 million in the first quarter of 2025 compared to the fourth quarter of 2024 and in the first quarter of 2025 compared to the first quarter of 2024, respectively, reflecting commodity price volatility.
Previous wording
Foreign currency translations increased by $178 million and $88 million in the third quarter of 2024 compared to the second quarter of 2024 and in the first nine months of 2024 compared to the first nine months of 2023, respectively, primarily due to the weakening of the U.S. dollar relative to the euro, partially offset by the effective portion of our net investment hedges.
Current wording
Foreign currency translations increased by $261 million and $122 million in the first quarter of 2025 compared to the fourth quarter of 2024 and in the first quarter of 2025 compared to the first quarter of 2024, respectively, primarily due to the weakening of the U.S. dollar relative to the euro, partially offset by the effective portion of our net investment hedges.
Previous wording
We use earnings from continuing operations before interest, income taxes, and depreciation and amortization (“EBITDA”) as our measure of profitability for segment reporting purposes. This measure of segment operating results is used by our chief operating decision maker to assess the performance of and allocate resources to our operating segments. Intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefits other than service costs are included in “Other”. See the table below for a reconciliation of EBITDA to its nearest generally accepted accounting principles (“GAAP”) measure.
Current wording
We use net income before interest, income taxes, and depreciation and amortization (“EBITDA”) as our measure of profitability for segment reporting purposes. This measure of segment operating results is used by our chief operating decision maker to assess the performance of and allocate resources to our operating segments. Intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefits other than service costs are included in “Other”. See the table below for a reconciliation of EBITDA to its nearest generally accepted accounting principles (“GAAP”) measure.
Previous wording
Our continuing operations are managed through six reportable segments: O&P-Americas, O&P-EAI, I&D, APS, Refining and Technology. Revenues and other information by segment for the periods presented are reflected in the tables below:
Current wording
Our continuing operations are managed through five reportable segments: O&P-Americas, O&P-EAI, I&D, APS, and Technology. Revenues and other information by segment for the periods presented are reflected in the tables below:
Previous wording
We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the third and second quarter of 2024, and the first nine months of 2024 and 2023, approximately 75% of the raw materials used in our North American crackers was ethane.
Current wording
We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the first quarter of 2025, and the first and fourth quarters of 2024, approximately 75% to 80% of the raw materials used in our North American crackers was ethane.
Previous wording
Revenue—Revenues for our O&P-Americas segment increased by $56 million, or 2% in the third quarter of 2024 compared to the second quarter of 2024 and by $363 million, or 4%, in the first nine months of 2024 compared to the first nine months of 2023.
Current wording
Revenue—Revenues for our O&P-Americas segment decreased by $273 million, or 10% in the first quarter of 2025 compared to the fourth quarter of 2024 and by $390 million, or 14%, in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
First nine months of 2024 versus first nine months of 2023—Higher olefins results led to a 23% increase in EBITDA driven by higher margins reflecting higher ethylene average sales prices and lower feedstock and energy costs. Lower polyolefins results led to a 5% decrease in EBITDA primarily driven by lower margins reflecting higher monomer costs. EBITDA decreased 2% due to lower income from equity investments reflecting lower polypropylene margins at our joint venture in Mexico.
Current wording
First quarter of 2025 versus first quarter of 2024—Lower polymer results led to a 27% decrease in EBITDA primarily driven by lower margins reflecting higher monomer costs. Lower olefins results led to a 25% decrease in EBITDA driven by lower ethylene margins from increased energy costs coupled with lower co-product prices.
Previous wording
Ethylene Raw Materials—In Europe, naphtha is the primary raw material for our ethylene production and represented approximately 55% to 65% of the raw materials used in the third and second quarter of 2024, and in the first nine months of 2024 and 2023.
Current wording
Ethylene Raw Materials—In Europe, naphtha is the primary raw material for our ethylene production and represented approximately 60% to 65% of the raw materials used in the first quarter of 2025, and in the first and fourth quarters of 2024.
Previous wording
Revenue—Revenues decreased by $52 million, or 5%, in the third quarter of 2024 compared to the second quarter of 2024 and by $47 million, or 2%, in the first nine months of 2024 compared to the first nine months of 2023.
Current wording
Revenue—Revenues increased by $129 million, or 5%, in the first quarter of 2025 compared to the fourth quarter of 2024 and decreased by $145 million, or 5%, in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
Third quarter of 2024 versus second quarter of 2024—Lower volumes resulted in a revenue decrease of 2% primarily due to a decrease in demand. Lower average sales prices resulted in a 1% decrease as sales prices generally correlate with crude oil prices, which on average, decreased compared to the second quarter of 2024. Favorable foreign exchange impacts resulted in a revenue increase of 2%.
Current wording
First quarter of 2025 versus fourth quarter of 2024—Higher volumes resulted in a revenue increase of 5% primarily due to the absence of planned maintenance. Higher average sales prices resulted in a 1% increase in revenue. Unfavorable foreign exchange impacts resulted in a revenue decrease of 1%.
Previous wording
EBITDA—EBITDA increased by $88 million, or 13%, in the third quarter of 2024 compared to the second quarter of 2024 and by $250 million, or 15%, in the first nine months of 2024 compared to the first nine months of 2023.
Current wording
EBITDA—EBITDA increased by $1,173 million, or 101%, in the first quarter of 2025 compared to the fourth quarter of 2024 and by $3 million, or 21%, in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
Revenue—Revenues decreased by $291 million, or 12%, in the third quarter of 2024 compared to the second quarter of 2024 and by $825 million, or 11%, in the first nine months of 2024 compared to the first nine months of 2023.
Current wording
Revenue—Revenues decreased by $59 million, or 3%, in the first quarter of 2025 compared to the fourth quarter of 2024 and by $288 million, or 11%, in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
First nine months of 2024 versus first nine months of 2023—Lower average sales prices resulted in a 6% decrease in revenue driven by oxyfuels and related products as a result of lower gasoline crack spreads and blend premiums. Sales volumes increased resulting in a 2% increase in revenue due to additional PO/TBA production.
Current wording
First quarter of 2025 versus first quarter of 2024—Lower average sales prices resulted in an 8% decrease in revenue driven by oxyfuels and related products as a result of lower crude, gasoline crack spreads, and blend premiums. Sales volumes declined resulting in a 2% decrease in revenue due to the second quarter of 2024 sale of our Ethylene Oxide & Derivatives (“EO&D”) business and associated production facilities located in Bayport, Texas. Unfavorable foreign exchange impacts resulted in a 1% decrease in revenue.
Previous wording
The following table sets forth selected financial information for the APS segment including Loss from equity investments, which is a component of EBITDA:
Current wording
The following table sets forth selected financial information for the APS segment:
Previous wording
Third quarter of 2024 versus second quarter of 2024—Sales volumes decreased resulting in a 6% decrease in revenue stemming from lower demand. Favorable foreign exchange impacts resulted in a revenue increase of 1%.
Current wording
First quarter of 2025 versus first quarter of 2024—Sales volumes decreased resulting in a 5% decrease in revenue stemming from lower demand. Unfavorable foreign exchange impacts resulted in a revenue decrease of 2%. Higher average sales prices resulted in a 1% increase in revenue.
Previous wording
EBITDA—EBITDA increased by $11 million, or 16%, in the third quarter of 2024 compared to the second quarter of 2024 and by $49 million, or 42%, in the first nine months of 2024 compared to the first nine months of 2023.
Current wording
EBITDA—EBITDA increased by $86 million or 215% in the first quarter of 2025 compared to the fourth quarter of 2024 and by $11 million or 31% in the first quarter of 2025 compared to the first quarter of 2024.
Previous wording
Overview—EBITDA decreased in the third quarter of 2024 compared to the second quarter of 2024 primarily due to lower licensing results. EBITDA decreased in the first nine months of 2024 relative to the first nine months of 2023 primarily due to lower catalyst margins and licensing results.
Current wording
Overview—EBITDA decreased in the first quarter of 2025 compared to the fourth quarter of 2024 and first quarter of 2024, primarily due to lower licensing results as the pace of global polyolefin capacity additions moderates.
Previous wording
Third quarter of 2024 versus second quarter of 2024—Lower licensing revenues resulting from fewer contracts reaching significant contract milestones drove a 10% decrease in revenue. Lower catalyst average sales prices resulted in a 3% decrease in revenues. Higher catalyst volumes resulted in a 3% increase in revenues primarily driven by higher demand in the U.S. Favorable foreign exchange impact resulted in a 2% increase in revenues.
Current wording
First quarter of 2025 versus fourth quarter of 2024—Lower licensing revenues resulting from recognition of revenue on fewer contracts drove a 28% decrease in revenue. Lower catalyst average sales prices from product mix resulted in a 3% decrease in revenues. Unfavorable foreign exchange impact resulted in a 2% decrease in revenues. Higher catalyst volumes resulted in a 2% increase in revenues driven by improved demand relative to the prior quarter.
Previous wording
Operating Activities—Cash provided byoperating activities of$1,904 millionin the first nine months of 2024 primarily reflected earnings adjusted for non-cash items and cash used by the main components of working capital—Accounts receivable, Inventories, and Accounts payable.
Current wording
Operating Activities—Cash used in operating activities of$579 millionin the first three months of 2025 primarily reflected earnings adjusted for non-cash items, payment of taxes and cash used by the main components of working capital—Accounts receivable, Inventories, and Accounts payable. In the first three months of 2025, the main components of working capital used $716 million of cash primarily driven by increased Accounts receivable and Inventories associated with higher volumes following maintenance downtime.
Previous wording
Cash providedby operating activities of $3,438 million in the first nine months of 2023 primarily reflected earnings adjusted for non-cash items and cash used by the main components of working capital.
Current wording
Cash usedby operating activities of $114 million in the first three months of 2024 primarily reflected earnings adjusted for non-cash items and cash used by the main components of working capital. In the first three months of 2024, the main components of working capital used $629 million of cash driven by increases in Accounts receivable due to higher volumes and prices across most of our segments.
Previous wording
Investing Activities—Capital expenditures in the first nine months of 2024 totaled $1,335 million compared to $1,047 million in the first nine months of 2023, of which approximately 75% and 65%, respectively, support sustaining maintenance such as turnaround activities at several sites as well as other plant Health, Safety and Environmental projects. The remaining expenditures support profit-generating growth projects. See Note 12 to the Consolidated Financial Statements for additional information regarding capital expenditures by segment.
Current wording
Investing Activities—Capital expenditures in both the first three months of 2025 and 2024 totaled $483 million, of which approximately 65% and 80%, respectively, support sustaining maintenance such as turnaround activities at several sites as well as other plant Health, Safety and Environmental projects. The remaining expenditures support profit-generating growth projects.
Previous wording
Financing Activities—We made dividend payments totaling $1,283 million and $1,204 million in the first nine months of 2024 and 2023, respectively. Additionally, we made payments of $117 million and $211 million to repurchase outstanding ordinary shares in the first nine months of 2024 and 2023, respectively.
Current wording
Financing Activities—We made dividend payments totaling $433 million and $408 million in the first three months of 2025 and 2024, respectively. Additionally, we made payments of $110 million to repurchase outstanding ordinary shares in the first three months of 2025. We had no share repurchases in the first quarter of 2024.
Previous wording
As of September 30, 2024, we had Cash and cash equivalents totaling $2,621 million, which includes $1,223 million in jurisdictions outside of the U.S., the majority of which is held within the European Union and the United Kingdom. There are currently no legal or economic restrictions that would materially impede our transfers of cash.
Current wording
As of March 31, 2025, we had Cash and cash equivalents totaling $1,867 million, which includes $556 million in jurisdictions outside of the U.S., the majority of which is held within the United Kingdom. There are currently no legal or economic restrictions that would materially impede our transfers of cash.
Previous wording
At September 30, 2024, we had total debt, including current maturities, of $11,260 million. Additionally, we had $171 million of outstanding letters of credit, bank guarantees and surety bonds issued under uncommitted credit facilities.
Current wording
At March 31, 2025, we had total debt, including current maturities, of $11,220 million. Additionally, we had $185 million of outstanding letters of credit, bank guarantees and surety bonds issued under uncommitted credit facilities.
Previous wording
In May 2024, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 24, 2025, which superseded any prior repurchase authorizations. Our share repurchase authorization does not have a stated dollar amount, and purchases may be made through open market purchases, private market transactions or other structured transactions. Repurchased shares could be retired or used for general corporate purposes, including for various employee benefit and compensation plans. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased. In the first nine months of 2024, we purchased approximately 1.2 million shares under our share repurchase authorizations for $117 million.
Current wording
In May 2024, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares through November 24, 2025, which superseded any prior repurchase authorizations. Our share repurchase authorization does not have a stated dollar amount, and purchases may be made through open market purchases, private market transactions or other structured transactions. Repurchased shares could be retired or used for general corporate purposes, including for various employee benefit and compensation plans. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased. In the first three months of 2025, we purchased approximately 1.5 million shares under our share repurchase authorizations for $110 million.
Previous wording
As of October 30, 2024, we had approximately 32.8 million shares remaining under the current authorization. The timing and amounts of additional shares repurchased, if any, will be determined based on our evaluation of market conditions and other factors, including any additional authorizations approved by our shareholders. For additional information related to our share repurchase authorizations, see Note 10 to the Consolidated Financial Statements.
Current wording
As of April 23, 2025, we had approximately 28.8 million shares remaining under the current authorization. The timing and amounts of additional shares repurchased, if any, will be determined based on our evaluation of market conditions and other factors, including any additional authorizations approved by our shareholders. For additional information related to our share repurchase authorizations, see Note 11 to the Consolidated Financial Statements.
Previous wording
In the fourth quarter of 2024, we expect year-end seasonality to result in softer demand across most businesses. Sequentially higher natural gas and ethane feedstock costs are expected to moderate North American integrated polyolefins margins during the fourth quarter. Oxyfuels and refining margins are expected to continue to decline with low gasoline crack spreads and the conclusion of the summer driving season. To align with global demand and our planned maintenance, we expect fourth quarter operating rates of 85% for our O&P-Americas assets, 60% for our European O&P-EAI assets and 75% for our I&D assets. Easing interest rates are expected to improve demand for durable goods during 2025, benefiting our polypropylene and I&D businesses.
Current wording
To align with global demand and our planned maintenance, we expect second quarter operating rates of 85% for our O&P-Americas assets, 75% for our European O&P-EAI assets and 85% for our I&D assets.
Previous wording
•changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate could increase our costs, restrict our operations and reduce our operating results;
Current wording
•changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate could increase our costs through tariffs or otherwise, limit or disrupt trade, restrict our operations and reduce our operating results;