LyondellBasell(US:LYB)2025-10-31 17:24Financial Performance - In Q3 2025, revenues from continuing operations were $7,727 million, a 1% increase from Q2 2025, driven by a 3% increase in sales volumes and a 2% favorable foreign exchange impact [128]. - Operating income decreased by $1,016 million, or 356%, in Q3 2025 compared to Q2 2025, with significant declines in the APS, O&P-EAI, and Technology segments [133]. - For the first nine months of 2025, revenues decreased by $2,524 million, or 10%, compared to the same period in 2024, primarily due to lower average sales prices and reduced sales volumes [129]. - Comprehensive loss income decreased by $1,099 million in Q3 2025 compared to Q2 2025, mainly due to a decline in net loss income and unfavorable foreign currency translation impacts [142]. - For the third quarter of 2025, total revenues were $7,727 million, a 1% increase from $7,658 million in the previous quarter, but a 15% decrease from $25,586 million in the first nine months of 2024 [147]. - The overall operating loss for the company was $(731) million in Q3 2025, compared to an operating income of $285 million in Q2 2025 and $2,515 million in the first nine months of 2024 [147]. - The company reported a net loss of $(890) million for Q3 2025, compared to a net income of $115 million in Q2 2025 and a net income of $1,970 million in the first nine months of 2024 [147]. - EBITDA for the third quarter of 2025 was $(480) million, a significant decrease of $1,339 million or 50% compared to $3,859 million in the first nine months of 2024 [147]. - EBITDA decreased by $740 million, or 52%, in the first nine months of 2025 compared to the first nine months of 2024, primarily due to lower oxyfuels margins and shutdown costs related to the European PO Joint Venture [164][167][170]. - Revenue decreased by $1,151 million, or 14%, in the first nine months of 2025 compared to the first nine months of 2024, driven by lower average sales prices and a decline in sales volumes [166][167]. Impairment Charges - Non-cash impairment charges totaled $1,202 million in Q3 2025, significantly impacting the financial results due to a downturn in the European petrochemical and global automotive industries [132]. - The company recognized $782 million of non-cash impairment charges in the third quarter of 2025, impacting EBITDA significantly [171][175]. - A $400 million non-cash goodwill impairment charge was recognized in the third quarter of 2025, impacting the O&P-EAI segment's performance significantly [156]. - Non-cash impairment charges of $1,182 million were recognized in the third quarter of 2025 for reporting units within the O&P-EAI and APS segments [210]. Cash Flow and Capital Expenditures - Cash generated from operating activities for the first nine months of 2025 was $755 million, with capital expenditures amounting to $1,428 million and $1,522 million returned to shareholders through dividends and share repurchases [124]. - Cash provided by operating activities was $755 million in the first nine months of 2025, a decrease from $1,904 million in the same period of 2024 [186][187]. - Capital expenditures in the first nine months of 2025 totaled $1,428 million, compared to $1,335 million in 2024, with approximately 65% supporting sustaining maintenance [188]. - The capital budget for 2025 is approximately $1.7 billion, with $1.2 billion allocated for sustaining maintenance and the remainder for profit-generating growth projects [199]. Shareholder Returns and Debt - The company plans to target shareholder returns of 70% of free cash flow over the long term, balancing this with maintaining an investment-grade balance sheet [197]. - The company issued $500 million of 6.150% guaranteed notes due 2035 in May 2025, with proceeds used for general corporate purposes [192]. - Total debt as of September 30, 2025, was $11,856 million, with $4,650 million in unused availability under credit facilities [202]. - In the first half of 2025, approximately 3.0 million shares were repurchased for $201 million under the share repurchase authorization [204]. Segment Performance - The O&P-Americas segment reported sales of $2,606 million in Q3 2025, a 10% increase from $2,377 million in Q2 2025, but a 15% decrease from $8,779 million in the first nine months of 2024 [150]. - The O&P-EAI segment experienced a revenue decline of $117 million, or 4%, in Q3 2025 compared to Q2 2025, and a 6% decrease in the first nine months of 2025 compared to the same period in 2024 [157]. - The O&P-Americas segment's EBITDA increased by $105 million, or 34%, in Q3 2025 compared to Q2 2025, but decreased by $967 million, or 50%, in the first nine months of 2025 compared to the same period in 2024 [152]. - The O&P-EAI segment reported an EBITDA of $(381) million in Q3 2025, a decrease from $2 million in Q2 2025, and $(362) million in the first nine months of 2025 compared to $165 million in the same period in 2024 [157]. - The Technology segment's EBITDA was $15 million in Q3 2025, down from $33 million in Q2 2025, and $100 million in the first nine months of 2025 compared to $271 million in the same period in 2024 [150]. - The Technology segment's revenue decreased by $125 million, or 25%, in the first nine months of 2025 compared to the first nine months of 2024, primarily due to lower licensing revenues [179][181]. - The Advanced Polymer Solutions segment reported a revenue decrease of $114 million, or 4%, in the first nine months of 2025 compared to the first nine months of 2024, attributed to weaker automotive demand [172][174]. Future Outlook and Plans - The company plans to idle a larger cracker in Wesseling, Germany, and a propylene oxide/styrene monomer unit in Channelview, Texas, for about 40 days to align production with global demand [208]. - The company entered into a sales and purchase agreement for select olefins & polyolefins assets in Europe, with the transaction expected to close in the first half of 2026 [123]. - A proposed sale of select European olefins & polyolefins assets is expected to close in the first half of 2026, with a cash contribution of approximately $300 million to the disposal group prior to closing [200]. - Fourth quarter operating rates are expected to be 80% for O&P-Americas assets, 60% for European O&P-EAI assets, and 75% for I&D assets [208]. - The company anticipates that higher natural gas and feedstock costs will pressure integrated polyolefins margins in North America, while weak demand is expected to persist in Europe [207]. Research and Development - Research and development expenses for the first nine months of 2025 were $103 million, compared to $96 million in the same period of 2024, indicating a focus on innovation despite financial challenges [130].