LyondellBasell reports first quarter 2025 earnings

Core Insights - LyondellBasell Industries reported a net income of $177 million for Q1 2025, a significant recovery from a net loss of$603 million in Q4 2024, and a decrease from $473 million in Q1 2024 [1][4] - The company’s diluted earnings per share (EPS) was$0.54, compared to a loss of $1.87 in the previous quarter and$1.44 in the same quarter last year [1][4] - EBITDA for Q1 2025 was $655 million, recovering from a negative EBITDA of$399 million in Q4 2024, but down from $1,046 million in Q1 2024 [1][4] Financial Performance - Sales and other operating revenues for Q1 2025 were$7,677 million, down from $7,808 million in Q4 2024 and$8,304 million in Q1 2024 [1] - Net income excluding identified items was $110 million, down from$255 million in Q4 2024 and $433 million in Q1 2024 [2] - Cash used by operating activities was$579 million, with $543 million returned to shareholders through dividends and share repurchases [4][8] Strategic Actions - The company is focusing on a three-pillar strategy, including strengthening its U.S. Gulf Coast position and optimizing its global footprint with cost-advantaged feedstocks [4][9] - A$500 million Cash Improvement Plan has been announced to enhance financial results [4][9] - The company has ceased operations at its Houston refinery and announced the closure of a Dutch PO joint venture, resulting in exit costs of $117 million [4][26] Market Conditions - In North America, integrated polyethylene profitability faced challenges due to lower volumes and margins, while U.S. polypropylene volumes increased by 12% compared to the prior quarter [6] - European operations benefited from improved ethylene cracker utilization and seasonal demand, leading to better profitability in integrated polyethylene [6] - Margins in the acetyls and oxyfuels value chains declined due to higher natural gas prices impacting costs [7] Outlook - The company anticipates seasonal demand improvements across most businesses in Q2 2025, with moderated U.S. natural gas and ethane feedstock costs [10] - Oxyfuels margins are expected to improve with higher gasoline crack spreads during the summer driving season [10] - The company plans to maintain operating rates of 85% for North American olefins and polyolefins assets in Q2 2025 [11]