LyondellBasell tops quarterly profit estimates as global supply disruptions boost margins

LyondellBasell Industries

31/07/2026 12:21

July 31 (Reuters) - Petrochemicals manufacturer LyondellBasell LYB.N on Friday beat Wall Street estimates for second-quarter profit, as global supply disruptions lifted polymer margins, and increased operating rates at its North American assets.
LyondellBasell said geopolitical instability created supply-constrained conditions across its businesses, driving higher polymer margins and favorable co-product pricing. 

Here are some details:
The chemicals maker operated its North American olefins and polyolefins assets at about 90% utilization during the second quarter.
It reported adjusted earnings of $4.30 per share for the quarter ended June 30, compared with analysts' average estimate of $3.41 per share, according to data compiled by LSEG.
Quarterly sales rose 20% to $9.18 billion from a year ago, narrowly exceeding estimates of $9.15 billion.
Shares of LyondellBasell were up 3.19% in premarket trading following the results.
Net income for the quarter rose to $559 million, or $1.71 per diluted share, from $115 million, or 34 cents per share, a year earlier.
Results also improved at its Europe, Asia and international olefins and polyolefins business, helped by stronger polymer spreads and joint venture contributions.
Higher margins for oxyfuels, methanol and propylene oxide derivatives lifted earnings in its intermediates and derivatives segment.
The company said an unplanned outage at its Bayport PO/TBA plant partly offset those gains. The facility restarted in June and exited the quarter at full operating rates.
LyondellBasell completed the sale of four European assets in the quarter, recording a $734 million pre-tax loss on the divestiture.
The company remains on track to generate $500 million in incremental cash by the end of 2026 through fixed-cost cuts and lower capital spending.
It warned that uncertainty over when conflict-disrupted Middle East supply would return could keep energy and petrochemical markets volatile into 2027.

 (Reporting by Khusbu Jena in Bengaluru; Editing by Shreya Biswas)
 ((Khusbu.Jena@thomsonreuters.com))