LyondellBasell Lifts Third-Quarter Net Income on Stronger Oxyfuels Profitability

Aditi Sarkar

02 November 2026 11:34 PM AEDT

LyondellBasell Lifts Third-Quarter Net Income on Stronger Oxyfuels Profitability

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Highlights

Third-quarter 2026 Net Income rose to US$758 million, or US$2.32 per diluted share, from US$559 million in the second quarter.
Excluding identified items, EBITDA reached about US$1.51 billion, with the Intermediates and Derivatives segment posting materially higher profitability.
Operations generated about US$1.7 billion of cash, helped by a Working Capital release, while dividends totaled US$224 million.
The company repaid a 500 million euro note in September and ended the quarter with US$7.69 billion of liquidity.

LyondellBasell Industries N.V. (NYSE:LYB) reported a sequential rise in third-quarter Earnings on 30 October 2026, as strong oxyfuels margins and improved plant reliability in its Intermediates and Derivatives Business offset softer polymer prices.

The chemicals and plastics producer posted net income of US$758 million for the quarter, up from US$559 million in the second quarter and a loss of US$890 million a year earlier. Chief Executive Officer Peter Vanacker pointed to the flexibility and resilience of a leaner structure and a global, cost-advantaged portfolio.

Earnings Rebound Led by Intermediates and Derivatives

Diluted EPS for the third quarter of 2026 was US$2.32, or US$2.54 excluding identified items. EBITDA totaled US$1.42 billion, or about US$1.51 billion excluding identified items, while sales fell to US$8.50 billion from US$9.18 billion in the second quarter. Identified items of US$70 million after tax related mainly to closure costs for a European propylene oxide joint venture.

Intermediates and Derivatives profitability rose materially, largely on oxyfuels. Utilization at the Channelview propylene oxide and tertiary butyl alcohol plant reached about 110%, Bayport returned to full rates after a June restart, and acetyls benefited from better reliability at La Porte.

Polymer Price Pressure in Olefins and Polyolefins

Olefins and Polyolefins Americas profitability declined from the second quarter on lower polymer and olefin prices, although polyethylene margins ended the quarter about 50% above 2025 levels and prices gained momentum in September. The Clinton turnaround was completed on time and under budget.

In Europe, Asia and International, lower polymer prices squeezed margins and volumes fell sequentially, reflecting the May 2026 sale of select European assets. Site closure costs of US$77 million in the quarter included US$31 million of employee charges for the planned closure of a polypropylene Facility in Brindisi, Italy.

Cash Generation and Balance Sheet

Cash from operations reached about US$1.7 billion, and capital expenditures were US$303 million. LyondellBasell paid US$224 million in dividends and repaid a 500 million euro note in September as planned. Cash and cash equivalents ended the quarter at US$3.23 billion, with total Liquidity of US$7.69 billion. The company also reported continued progress under its Cash Improvement Plan, announced in April 2025, including lower global structural fixed costs.

Fourth-Quarter Operating Expectations

For the fourth quarter of 2026, LyondellBasell expects operating rates of about 85% for North American olefins and polyolefins, 60% for European olefins and polyolefins, and 75% for Intermediates and Derivatives. Management anticipates normal seasonal demand, continued Supply uncertainty, planned maintenance at a North American polypropylene asset and a seasonal working capital release.

FAQs

Q: What drove LyondellBasell's Q3 2026 earnings?

A: Higher Intermediates and Derivatives profitability, largely from oxyfuels, along with improved reliability at several US plants, offset lower polymer prices.

Q: How much cash did the company generate?

A: Cash from operations was about US$1.7 billion in the third quarter, including a working capital release.

Q: What operating rates does LyondellBasell expect in Q4 2026?

A: About 85% for North American and 60% for European olefins and polyolefins, and 75% for Intermediates and Derivatives.

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