Q3 2025 LyondellBasell Industries Earnings Call

We will conduct a question and answer session.

I would now like to turn the conference over to Mr. David Kinney head of Investor Relations. Sir. Please go ahead.

Speaker #1: Hello, and welcome to the LyondellBasell Teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes. Following today's presentation, we will conduct a question-and-answer session.

Thank you operator, and welcome everyone to today's call before we begin the discussion I would like to point out that a slide presentation that accompanies the call and is available on our website at investors start Lyondellbasell dot com today, we will be discussing our third quarter results, while making reference to some forward looking statements and non-GAAP financial measures, we believe the forward.

Speaker #1: I would now like to turn the conference over to Mr. David Kinney, Head of Investor Relations. Sir, please go ahead.

Speaker #2: Thank you, Operator, and welcome everyone to today's call. Before we begin the discussion, I would like to point out that a slide presentation accompanies the call and is available on our website at investors.lyondellbasell.com.

Statements are based upon reasonable assumptions and the alternative measures are useful to investors. Nonetheless, the forward looking statements are subject to significant risks and uncertainty. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our Investor relations.

Speaker #2: Today, we will be discussing our third-quarter results while making reference to some forward-looking statements and non-GAAP financial measures. We believe the forward-looking statements are based upon reasonable assumptions and the alternative measures are useful to investors.

Website com.

Speaker #2: Nonetheless, the forward-looking statements are subject to significant risk and uncertainty. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our Investor Relations website.

Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures such as EBITDA and earnings per share excluding identified items additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures together with other disclosures, including the earnings release and on our business results discussion.

Peter Vanacker: We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our Investor Relations website. Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures such as EBITDA and earnings per share, excluding identified items. Additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures, together with other disclosures, including the earnings release and our business results discussion. A recording of this call will be available by telephone beginning at 1:00 P.M. Eastern Time today until December 1 by calling 877-660-6853 in the United States and 201-612-7415 outside the United States. The access code for both numbers is 137-462-07.

Speaker #2: Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures such as EBITDA and earnings per share, excluding identified items.

A recording of this call will be available by telephone beginning at one PM Eastern time today until December one by calling 870 76606853 in the United States and 20161 to 741, 5% outside the United States. The access code for both numbers is 137%.

Speaker #2: Additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures, together with other disclosures including the earnings release and our business results discussion.

Speaker #2: A recording of this call will be available by telephone beginning at 1:00 PM Eastern Time today, until December 1st, by calling 877-660-6853 in the United States, and 201-612-7415 outside the United States.

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Joining today's call will be Peter Vanacker, windup cells, Chief Executive officer, or CFO. Augustine is care, though came fully our executive Vice President of global Olefins, <unk> Polyolefin, Aaron <unk>, our EVP of intermediates and derivatives and charcoal Brendan our EVP of advanced polymer solutions.

Speaker #2: The access code for both numbers is 137-462-07. Joining today's call will be Peter Vanacker, LyondellBasell's Chief Executive Officer. Our CFO, Augustinus Ciardo; Kim Foley, our Executive Vice President of Global Olefins and Polyolefins; Aaron Ledet, our EVP of Intermediates and Derivatives; and Torkel Rhenman, our EVP of Advanced Polymer Solutions.

Peter Vanacker: Joining today's call will be Peter Vanacker, LyondellBasell's Chief Executive Officer; our CFO, Agustin Izquierdo; Kim Foley, our Executive Vice President of Global Olefins & Polyolefins; Aaron Ledet, our EVP of Intermediates and Derivatives; and Torkel Rhenman, our EVP of Advanced Polymer Solutions. With that being said, I would now like to turn the call over to Peter. Thank you, Dave, and thank you all for joining today's call as we discuss our third quarter results. The LyondellBasell Industries NV team is making excellent progress on managing the cycle with meaningful progress from our cash improvement plan, which contributed to our very high cash conversion of 135% in the third quarter. We're well on our way to delivering on our $600 million target by year-end. Our actions are expected to increase cash flow by at least $1.1 billion by the end of 2026.

That being said I would now like to turn the call over to Peter.

Thank you Dave and thank you all for joining today's call as we discuss our third quarter results.

<unk> team is making excellent progress on managing the cycle with meaningful progress from our cash improvement plan, which contributed to our very high cash conversion of 135% in the third quarter.

Speaker #2: With that being said, I would now like to turn the call over to Peter.

Speaker #3: Thank you, Dave, and thank you all for joining today's call as we discuss our third-quarter results. The LYB team is making excellent progress on managing the cycle with meaningful progress from our cash improvement plan.

We're well on our way to delivering on our $600 million targets by year end.

And our actions are expected to increase cash flow by at least $1 $1 billion by the end of 2026.

Speaker #3: Which contributed to our very high cash conversion of 135% in the third quarter. We're well on our way to delivering on our $600 million target by year-end.

That is first take a moment to review <unk> safety performance with slide number three.

Safe operations are fundamental to our core values and essential for our future success as demonstrated by our September year to date total recordable incident rate of zero point, 12, which is even better than last year's top decile results.

Speaker #3: And our actions are expected to increase cash flow by at least $1.1 billion by the end of 2026. Let us first take a moment to review LYB's safety performance with slide number three.

Peter Vanacker: Let us first take a moment to review LyondellBasell Industries NV's safety performance with slide number three. Safe operations are fundamental to our core values and essential for our future success. This is demonstrated by our September year-to-date total recordable incident rate of 0.12, which is even better than last year's top decile result. Safety performance improved year on year, and this sustained trend is a direct reflection of the dedication and commitment of all our employees and contractors to operational excellence. Please turn to slide four as we discuss our financial performance. During the third quarter, cash generation improved as LyondellBasell Industries NV continued to navigate the cycle. Earnings were $1.01 per share with EBITDA of $835 million and $983 million of cash from operating activities. We returned $443 million to shareholders in the form of dividends.

Speaker #3: Safe operations are fundamental to our core values and essential for our future success. This is demonstrated by our September year-to-date total recordable incident rate of 0.12, which is even better than last year's top decile results.

Safety performance improved year on year and this sustained trend is a direct reflection of the dedication and commitment of all our employees and contractors to operational excellence.

Please turn to slide four as we discuss our financial performance.

Speaker #3: Safety performance improved year on year, and this sustained trend is a direct reflection of the dedication and commitment of all our employees and contractors to operational excellence.

During the third quarter cash generation improved as <unk> continued to navigate the cycle.

Earnings were $1 <unk> per share with EBITDA of $835 million and $983 million of cash from operating activities.

Speaker #3: Please turn to slide four as we discuss our financial performance. During the third quarter, cash generation improved as LYB continued to navigate the cycle.

We returned $443 million to shareholders in the form of dividends.

Speaker #3: Earnings were $1.01 per share, with EBITDA of $835 million and $983 million of cash from operating activities. We returned $443 million to shareholders in the form of dividends.

Turning to slide five let's discuss some encouraging trends developing in polyethylene markets.

In recent months <unk> demand has started to improve following the multiyear post COVID-19 downturn in both North America, and Europe 2025 domestic demand for polyethylene is the strongest we have seen since the start of the downturn in the third quarter of 2022.

Speaker #3: Turning to slide five, let's discuss some encouraging trends developing in polyethylene markets. In recent months, PE demand has started to improve following the multi-year post-COVID downturn.

Peter Vanacker: Turning to slide five, let's discuss some encouraging trends developing in polyethylene markets. In recent months, polyethylene demand has started to improve following the multi-year post-COVID downturn. In both North America and Europe, 2025 domestic demand for polyethylene is the strongest we have seen since the start of the downturn in the third quarter of 2022. Despite the recent volatility in U.S. exports caused by shifting trade and tariff policies, third quarter year-to-date North American demand is up by 2.5% relative to 2024. After a prolonged weakness following the onset of the Russia-Ukraine conflict, August year-to-date polyethylene volumes in Europe are up approximately 3% compared to the same period last year. Consumer packaging demand remains resilient, reflecting the essential role of polyolefins in everyday applications despite changing consumer behavior. At the same time, investments in durable goods to support trends in energy, digitalization, and infrastructure are also driving demand growth.

Despite the recent volatility in U S exports cost by shifting trade and tariff policies third quarter year to date, North American demand is up by two 5% relative to 2024.

Speaker #3: In both North America and Europe, 2025 domestic demand for polyethylene is the strongest we have seen since the start of the downturn in the third quarter of 2022.

After a prolonged weakness following the onset of the Russia, Ukraine conflict August year to date polyethylene volumes in Europe are up approximately 3% compared to the same period last year.

Speaker #3: Despite the recent volatility in US exports, costs by shifting trade and tariff policies third-quarter year-to-date North American demand is up by 2.5% relative to 2024.

Consumer packaging demand remains resilient, reflecting the essential role of polyolefin and everyday applications, despite changing consumer behavior at.

Speaker #3: After a prolonged weakness, following the onset of the Russia-Ukraine conflict, August year-to-date polyethylene volumes in Europe are up approximately 3% compared to the same period last year.

At the same time investments in durable goods to support trends in energy digitalization and infrastructure are also driving demand growth.

Speaker #3: Consumer packaging demand remains resilient. Reflecting the essential role of polyolefins in everyday applications, despite changing consumer behavior. At the same time, investments in durable goods to support trends in energy, digitalization, and infrastructure are also driving demand growth.

Renewable energy on data center construction requires durable high performance polymers for wire and cable <unk> conduits and water piping.

Electric vehicles use approximately 10% more plastic by weight 10 vehicles powered by internal combustion engines.

Speaker #3: Renewable energy and data center construction require durable, high-performance polymers for wire and cable jacketing, conduits, and water piping. Electric vehicles use approximately 10% more plastic by weight than vehicles powered by internal combustion engines.

Peter Vanacker: Renewable energy and data center construction requires durable, high-performance polymers for wire and cable jacketing, conduits, and water piping. Electric vehicles use approximately 10% more plastic by weight than vehicles powered by internal combustion engines. LyondellBasell Industries NV's broad portfolio of innovative polymers positions us well to meet the stringent performance and sustainability benchmarks required to address these attractive and growing market opportunities. Let me be clear: these are not yet green shoots for our financial results. Markets will need to absorb new capacity, and operating rates will need further improvement before suppliers develop meaningful pricing power. These inflections in demand trends are encouraging and could be the early indicators of a market recovery. With this in mind, let's turn to slide six and take a longer view on demand growth for polyethylene and polypropylene.

<unk> broad portfolio of innovative polymers position us well to meet the stringent performance and sustainability benchmarks required to address these attractive and growing market opportunities.

Let me be clear.

These are not yet green shoots for our financial results.

Speaker #3: LYB's broad portfolio of innovative polymers positions us well to meet the stringent performance and sustainability benchmarks required to address these attractive and growing market opportunities.

Markets will need to absorb new capacity and operating rates will need further improvement before suppliers develop meaningful pricing power.

But these inflections and demand trends are encouraging and could be early indicators of a market recovery.

Speaker #3: Let me be clear. These are not yet green shoots for our financial results. Markets will need to absorb new capacity, and operating rates will need further improvement before suppliers develop meaningful pricing power.

With this in mind, let's turn to slide six and take a longer view on demand growth for polyethylene and polypropylene.

Speaker #3: But these inflections in demand trends are encouraging and could be the early indicators of a market recovery. With this in mind, let's turn to slide six and take a longer view on demand growth for polyethylene and polypropylene.

As shown in the top chart global polyethylene demand has consistently grown at GDP plus rates are over 3% for at least 35 years. Unlike other markets like automobiles are housing polyethylene markets have exhibited consistent growth.

Speaker #3: As shown in the top chart, global polyethylene demand has consistently grown at GDP-plus rates of over 3% for at least 35 years. Unlike other markets, like automobiles or housing, polyethylene markets have exhibited consistent growth.

Peter Vanacker: As shown in the top chart, global polyethylene demand has consistently grown at GDP plus rates of over 3% for at least 35 years. Unlike other markets like automobiles or housing, polyethylene markets have exhibited consistent growth. Even after recessionary downturns and pandemic-related spikes, polyethylene demand quickly returns to its long-term trajectory. This reflects the power of the underlying trends driving global consumption, population growth, urbanization, and a rising middle class. Some observers questioned whether the flatter growth rates seen in 2022 and 2023 after the 2021 spike were reflective of a secular change. As you can see, in 2025, we are reverting to long-term global historic growth rates of over 3%. Most consultants are predicting continued growth through at least 2035, with some shifts in share of production from fossil-based feeds towards circular feedstocks.

Even after a recessionary downturn and pandemic related spikes polyethylene demand quickly returns to its long term trajectory.

This reflects the power of the underlying trends driving global consumption population growth year organization, and a rising middle class.

Speaker #3: Even after recessionary downturns and pandemic-related spikes, polyethylene demand quickly returns to its long-term trajectory. This reflects the power of the underlying trends driving global consumption.

Some observers questions, whether the flatter growth rates seen in 2022 and 2023. After the 2021 spike were reflective of a secular change.

Speaker #3: Population growth, urbanization, and a rising middle class. Some observers questioned whether the flatter growth rates seen in 2022 and 2023 after the 2021 spike were reflective of a secular change.

But as you can see in 2025, we are reverting to long term global historic growth rates of over 3%.

Most consultants are predicting continued growth through at least 2035 with some shifts in share of production from fossil based feeds towards circular feedstocks.

Speaker #3: But as you can see, in 2025, we are reverting to long-term global historic growth rates of over 3%. Most consultants are predicting continued growth through at least 2035, with some shifts in share of production from fossil-based feeds towards circular feedstocks.

Looking at the bottom chart mature markets, such as North America, and Europe leads and per capita consumption aligns with established demand patterns. Meanwhile, emerging regions, such as India and Africa provide significant long term growth opportunities as living standards improve in.

Speaker #3: Looking at the bottom chart, mature markets such as North America and Europe lead in per capita consumption aligned with established demand patterns. Meanwhile, emerging regions such as India and Africa provide significant long-term growth opportunities as living standards improve in these regions.

Peter Vanacker: Looking at the bottom chart, mature markets such as North America and Europe lead in per capita consumption aligned with established demand patterns. Meanwhile, emerging regions such as India and Africa provide significant long-term growth opportunities as living standards improve in these regions. China continues to demonstrate strong volume growth, supported by its extensive manufacturing base and industrial activity. In contrast, South America reflects comparatively lower consumption, which can be attributed to a smaller manufacturing footprint and lower industrial intensity relative to other regions. These trends reinforce the importance of regional dynamics, shaping the growth of polyolefins in the global market. While mature markets remain critical for stability, demand growth within these regions will be increasingly driven by infrastructure development, electrification, EV mobility, home care, and pharma, while emerging economies will drive meaningful volume growth. Importantly, this demand growth is not negatively impacted by circularity.

These regions.

China continues to demonstrate strong volume growth supported by its extensive manufacturing base in industrial activity and.

In contrast, South America reflect comparatively lower consumption, which can attribute it to a smaller manufacturing footprint and lower industrial intensity relative to other regions.

Speaker #3: China continues to demonstrate strong volume growth, supported by its extensive manufacturing base and industrial activity. In contrast, South America reflects comparatively lower consumption, which can be attributed to a smaller manufacturing footprint and lower industrial intensity relative to other regions.

These trends reinforce the importance of regional dynamics.

<unk> the growth of polyolefin in the global markets.

While mature markets remain critical for stability demand growth within these regions will be increasingly driven by infrastructure developments electrification EV mobility home care and pharma, while emerging economies will drive meaningful volume growth.

Importantly, does demand growth is negatively impacted by circularity.

In fact, we are seeing growth shifting towards innovation efficiency and circularity in these markets.

<unk> continues to lead in sustainable solutions by investing in innovative feedstock sourcing positioning us to capture value across diverse markets as we advance our strategy.

Peter Vanacker: In fact, we are seeing growth shifting toward innovation, efficiency, and circularity in these markets. LyondellBasell Industries NV continues to lead in sustainable solutions by investing in innovative feedstock sourcing, positioning us to capture value across diverse markets as we advance our strategy. On slide seven, let's shift to the supply side and discuss how capacity rationalization trends are accelerating and reshaping the global ethylene supply landscape. As seen on the chart to the left, announced and anticipated closures and idling from 2020 through 2028 add up to more than 21 million tons of ethylene capacity, representing roughly 10% of global supply. Asia is leading the way with recent government announcements highlighting the magnitude of this trend. South Korea is targeting closures of up to 25%, while Japan recently announced closures of 1.5 million tons. China is also a critical driver for global rationalization.

On slide seven let's shift to the supply sites and discuss how capacity rationalization trends are accelerating and reshaping the global ethylene supply landscape.

As seen on the chart to the left announced an anticipated closures and idling from 2020.

Through 2028 add up to more than 21 million tons of ethylene capacity.

Representing roughly 10% of global supply.

Asia is leading the way with recent government announcements highlighting the magnitude of this trend.

South Korea is targeting closures of up to 25%, while Japan recently announced closures of one 5 million tons.

China is also a critical driver for global rationalization with high costs for feedstocks much of the Chinese petrochemical industry is on the wrong end of the cost curve.

China's anti involution measures are focused on reducing uncompetitive capacity and approvals for new facilities are facing increased scrutiny.

Peter Vanacker: With high costs for feedstocks, much of the Chinese petrochemical industry is on the wrong end of the cost curve. China's anti-involution measures, or focused on reducing uncompetitive capacity and approvals for new facilities, are facing increased scrutiny. In Europe, regulatory burdens, persistently high operating costs, and weak margins are driving massive reductions in petrochemical capacity. Announced rationalizations total approximately 20% of regional capacity, and we expect more announcements will follow. The domino effect of these rationalizations is leading to an acceleration. Smaller petrochemical clusters are finding that the economics for cogeneration or industrial gas partners no longer work when a few assets are shuttered in smaller industrial parks. About 30% of all global closures have been announced in just the past 12 months, underscoring the speed and magnitude of this shift.

In Europe regulatory burdens persistently high operating costs and weak margins are driving massive reductions in petrochemical capacity.

Announced rationalizations total approximately 20% of regional capacity and we expect more announcements will follow.

The Domino effect of these rationalizations is leading to an acceleration.

Smaller petrochemical clusters are finding that the economics for cogeneration or industrial gas partners no longer work when a few assets are shuttered and smaller industrial parks.

In Europe regulatory burdens persistently, High operating costs, and weak margins are driving. Massive reductions in petrochemical capacity.

Announced rationalizations total approximately 20% of regional capacity and we expect more announcements will follow.

About 30% of our global closures have been announced in just the past 12 months underscoring the speed and magnitude of this shift.

The domino effect of these rationalizations is leading to an acceleration.

Our confidence that these closures will help to partially offset the overhang from the substantial capacity additions underway in China.

Smaller. Petrochemical clusters are finding that the economics for co-generation or industrial gas Partners. No longer work when a few assets are shuttered in smaller industrial parks,

At <unk>, we're leveraging the market trends that reinforce our strategy.

About 30% of all Global closures have been announced in just the past 12 months.

We're growing our presence and cost advantaged regions.

Peter Vanacker: We're confident that these closures will help to partially offset the overhang from the substantial capacity additions underway in China. At LyondellBasell Industries NV, we're leveraging the market trends that reinforce our strategy. We're growing our presence in cost-advantaged regions, upgrading our challenge positions, and leveraging our technology to ensure a strong presence in attractive markets. We're also cultivating deep partnerships with governments and regulators to ensure a fair trade environment and working towards smart policies, especially in Europe, that will provide critical support for our industry. Now, with that, I will turn it over to Agustin to discuss capital allocation and the progress on our cash improvement plan. Thank you, Peter, and good morning, everyone. Let me begin with slide eight and review the details of our third quarter capital allocation.

Underscoring, the speed and magnitude of this shift.

Grading our challenged positions and leveraging our technology to ensure a strong presence in attractive markets.

We're confident that these closures will help to partially offset. The overhang from the substantial capacity, additions underway in China.

We are also cultivating deep partnerships with governments and regulators to ensure a fair trade environments and working towards smart policies, especially in Europe.

That will provide critical support for our industry.

Now with that I will turn it over to August seem to discuss capital allocation and the progress on our cash improvement plan.

Thank you Peter and good morning, everyone. Let me begin with slide eight and review the details of our third quarter capital allocation.

But also cultivating deep Partnerships with governments and Regulators to ensure a fair trade environment and working towards smart policies, especially in Europe.

That will provide critical support for our industry.

As Peter mentioned, we generated $983 million of cash from operating activities an improvement of over two five times relative to the prior quarter.

Now, with that, I will turn it over to Agustin Izquierdo to discuss capital allocation and the progress on our cash improvement plan.

During the quarter, we returned $443 million through dividends, while funding $406 million of capital investment.

Peter Vanacker: As Peter mentioned, we generated $983 million of cash from operating activities, an improvement of over two and a half times relative to the prior quarter. During the quarter, we returned $443 million through dividends while funding $406 million of capital investment. Our team remains focused and committed to balanced and disciplined capital allocation as we navigate the cycle. Our investment-grade balance sheet remains our priority while we invest in safe and reliable operations and work to preserve shareholder returns. We continue to advance our strategic initiatives to build a stronger and more resilient LyondellBasell Industries NV. Today, we are announcing a further reduction in our 2026 capital expenditures to $1.2 billion. We will continue to work to complete our MoReTec One chemical recycling facility in Germany as we work to optimize our 2026 spending on maintenance.

Thank you, Peter, and good morning, everyone. Let me begin with slide 8 and review the details of our third quarter capital allocation.

Our team remains focused and committed to balanced and disciplined capital allocation as we navigate the cycle.

As Peter mentioned, we generated $983 million of cash from operating activities, an improvement of over 2.5 times relative to the prior quarter.

Our investment grade balance sheet remains our priority, while we invest in safe and reliable operations and work to preserve shareholder returns.

We continue to advance our strategic initiatives to build a stronger and more resilient <unk>.

During the quarter, we returned 443 million through dividends while funding 406 million of capital investment.

Today, we are announcing a further reduction in our 2026 capital expenditures to $1 2 billion.

Our team remains focused on and committed to balanced and disciplined capital allocation as we navigate the cycle.

We will continue to work to complete our more take one chemical recycling facility in Germany, as we work to optimize our 2026 spending on maintenance.

Our investment-grade balance sheet remains our priority while we invest in safe and reliable operations and work to preserve shareholder returns.

We continue to advance our strategic initiatives to build a stronger and more resilient LyondellBasell.

We are continuing to make good progress on the value enhancement program, which remains on track to exceed our target for 2025.

Today, we are announcing a further reduction in our 2026 Capital expenditures to 1.2 billion dollars.

Similarly, our cash improvement plan is on track to deliver our $600 million target of incremental cash flow.

Peter Vanacker: We are continuing to make good progress on the value enhancement program, which remains on track to exceed our target for 2025. Similarly, our cash improvement plan is on track to deliver our $600 million target of incremental cash flow. Year-to-date, we have achieved $150 million in fixed cost reductions. I will review the progress on our cash improvement plan in more depth on the next slide. We are taking clear actions to ensure that we can continue to successfully navigate the cycle with a commitment to our investment-grade credit rating as the foundation of our disciplined capital allocation framework. Please turn to slide nine, and let's continue by reviewing the progress on our 2025 cash improvement plan.

Year to date, we have achieved $150 million in fixed cost reductions.

I will review the progress on our cash improvement plan in more depth on the next slide.

We will continue to work to complete our more take 1 chemical, recycling, facility in Germany. As we work to optimize our 2026 spending on maintenance, We are continuing to make good progress on the value enhancement program, which remains on track to exceed our Target for 2025.

We are taking clear actions to ensure that we can continue to successfully navigate the cycle with a commitment to our investment grade credit rating is the foundation of our disciplined capital allocation framework.

Similarly, our cash improvement plan is on track to deliver our $600 million target of incremental cash flow.

Year to date. We have achieved. 150 million in fixed cost. Reductions.

Please turn to slide nine and let's continue by reviewing the progress on our 2025 cash improvement plan.

I will review the progress on our cash improvement plan in more depth on the next slide.

For this year, we are targeting $600 million of improvement through a combination of working capital fixed cost and capex reductions as part of our total commitment to deliver $1 $1 billion of improvement by the end of next year.

We are taking clear actions to ensure that we can continue to successfully navigate the cycle with a commitment to our investment. Grade credit rating as the foundation of our disciplined Capital allocation framework.

Peter Vanacker: For this year, we are targeting $600 million of improvement through a combination of working capital, fixed cost, and CapEx reductions as part of our total commitment to deliver $1.1 billion of improvement by the end of next year. We are making progress on working capital reductions through our traditional levers of managing inventories and payables. With this in mind, we are on track to meet our target of realizing approximately $200 million of working capital reductions. As you all know, LyondellBasell has historically led the industry with a low-cost operating model. Nevertheless, we have identified further opportunities to streamline our operations and are on track to exceed our $200 million fixed cost reduction target by the end of 2025, with year-to-date fixed cost reductions at approximately $150 million relative to our 2025 plan. From a CapEx reduction standpoint, we are making progress to reduce spending on an accrued basis.

We are making progress on working capital reductions through our traditional levers of managing inventories and payables with this in mind. We are on track to meet our target of realizing approximately $200 million of working capital reductions.

Please turn to slide 9 and let's continue by reviewing the progress on our 2025 cash Improvement plan.

As you all know <unk> has historically led the industry with our low cost operating model never.

For this year, we are targeting million dollars of improvements through a combination of working capital, fixed cost and capex. Reductions as part of our total commitment to deliver 1.1 billion dollars of improvement by the end of next year.

Nevertheless, we have identified further opportunities to streamline our operations and are on track to exceed our $200 million fixed cost reduction target by the end of 2025 with year to date fixed cost reductions at approximately $150 million relative to our 2025 plan.

We are making progress on working capital reductions through our traditional levers of managing inventories and payables. With this in mind, we are on track to meet our Target of realizing approximately 200 million dollars of working capital, reductions

As you all know, lyb has historically, led the industry with a low cost operating model.

And from a Capex reduction standpoint, we are making progress to reduce spending on an accrued basis.

But these reductions are impacted by timing of payments with cash realization currently trailing.

We continue to prioritize safe and reliable operations, while making progress on <unk>, one and delaying construction of flex two on more tech to until we see market conditions improve.

Nevertheless, we have identified further opportunities to streamline our operations and are on track to exceed our $200 million. Fixed cost reduction Target by the end of 2025 with year to date fixed cost. Reductions at approximately 150 million dollars relative to our 2025 plan.

Peter Vanacker: These reductions are impacted by timing of payments with cash realization currently trailing. We continue to prioritize safe and reliable operations while making progress on MoReTec One and delaying construction of Flex Two and MoReTec Two until we see market conditions improve. Together with working capital and fixed cost initiatives, these actions position us to deliver on our target to achieve $600 million of incremental cash flow in 2025. Now, please turn to slide 10 as we outline our cash generation. Over the past year, LyondellBasell generated $2.7 billion of cash from operating activities. Our team converted EBITDA into cash at a rate of 99% over the past 12 months and 135% during the third quarter, well above our long-term target of 80%. In the third quarter, we were able to maintain robust shareholder returns with dividends and share repurchases totaling $2 billion over the last 12 months.

Together with working capital and fixed cost initiatives. These actions position us to deliver on our target to achieve $600 million of incremental cash flow in 2025.

and from a capex reduction standpoint, we are making progress to reduce spending on an accurate basis but this reductions are impacted by timing of payments with cash realization currently trailing

Now please turn to slide 10, as we outline our cash generation.

Over the past year, Lyondellbasell generated $2 $7 billion of cash from operating activities.

We continue to prioritize safe and reliable operations while making progress on Mortach 1 and delaying construction of Flex 2 and more Tech 2 until we see market conditions improve.

Our team converted EBITDA into cash at a rate of 99% over the past 12 months and 135% during the third quarter well above our long term target of 80%.

Together with working capital and fixed cost initiatives. This actions position us to deliver on our Target to achieve 600 million dollars of incremental cash flow in 2025.

Now, please turn to slide 10 as we outline our cash generation.

In the third quarter, we were able to maintain robust shareholder returns with dividends and share repurchases totaling $2 billion over the last 12 months.

Over the past year Lionel, Basel generated 2.7 billion dollars of cash from operating activities.

Our cash balance increased during the third quarter to end at $1 $8 billion.

We will continue to take proactive steps to protect our investment grade balance sheet as we navigate the cycle.

Our team converted epine to cash at a rate of 99% over the past 12 months, and 135% during the third quarter, well above our long-term Target of 80%

Now, let's turn to slide 11, and I'll provide a brief overview of our segment results.

Peter Vanacker: Our cash balance increased during the third quarter to end at $1.8 billion. We will continue to take proactive steps to protect our investment-grade balance sheet as we navigate the cycle. Now, let's turn to slide 11, and I'll provide a brief overview of our segment results. Our business portfolio generated $835 million of EBITDA during the third quarter. Profitability in Olefins & Polyolefins (Americas) improved with lower cost of ethylene due to co-product contributions coupled with less downtime, following the successful completion of turnarounds at our Channelview Complex in the second quarter. In Intermediates and Derivatives, improvements in oxyfuels margins were partially offset by plant maintenance at our La Porte, Texas, acetyls facility and the normalization of unusually high second-quarter styrene margins. In technology, subdued licensing activity impacted third-quarter profitability, and all segments benefited from our progress on fixed cost reductions.

in the third quarter, we were able to maintain robust shareholder returns with dividends and share repurchases, totaling 2 billion dollars over the last 12 months.

Our business portfolio generated $835 million of EBITDA during the third quarter.

Profitability and all the things in polyolefin Americas improved with lower cost of ethylene due to co product contributions coupled with less downtime. Following the successful completion of turnaround side, our channel view complex in the second quarter.

Our cash balance increased during the third quarter to end at $1.8 billion. We will continue to take proactive steps to protect our investment-grade balance sheet as we navigate the cycle.

Of our segment results.

In intermediates and derivatives improvements in oxy fuel margins were partially offset by planned maintenance at our La Porte, Texas US Appeals facility and the normalization of unusually high second quarter styrene margins.

Our business portfolio generated 835 million of ibida during the third quarter.

In technology subdued licensing activity impacted third quarter profitability in all segments benefited from our progress on fixed cost reductions.

profitability in all the fins and polyenes Americas, improved with lower cost of ethylene, due to co-product contributions, coupled with less downtime, following the successful completion of turnarounds at our Channel View, complex in the second quarter,

Third quarter results included identified items of $1 $2 billion net of tax primarily associated with asset write downs in our OMB AI and advanced polymer solutions segments related to the prolonged downturn in the European petrochemical and global automotive industries.

In intermediate sun, derivative improvements in oxyfuel margins were partially offset by planned maintenance at our La Porte, Texas, acetals facility and the normalization of unusually high second quarter styrene margins.

Peter Vanacker: Third-quarter results included identified items of $1.2 billion net of tax, primarily associated with asset write-downs in our O&P EAI and Advanced Polymer Solutions segments related to the prolonged downturn in the European petrochemical and global automotive industries. We have also updated the guidance for our 2025 full-year effective tax rate to negative 13%, primarily due to these non-cash impairments recognized during the third quarter. In addition, our cash tax rate is expected to be substantially lower than our prior guidance. Please refer to our updated 2025 modeling guidance in the appendix to this slide deck describing impacts from plant maintenance and other useful financial metrics. With that, I will turn the call over to Kim. Thank you, Agustin. Let's begin the segment discussions on slide 12 with the performance of the Olefins & Polyolefins Americas segment.

In technology, subdued licensing, activity impacted third quarter, profitability, and all segments benefited from our progress on fixed cost. Reductions

We have also updated the guidance for 2025 full year effective tax rate to negative 13%, primarily due to these noncash impairments recognized during the third quarter.

In addition, our cash tax rate is expected to be substantially lower than our prior guidance.

third quarter results, included identified items of 1.2 billion dollars, net of tax primarily associated with asset right Downs. In our OMP eai and advanced polymer solution segments related to the prolonged downturn in the European petrochemical and Global Automotive Industries.

Please refer to our updated 2025 modeling guidance in the appendix to the slide deck, describing impacts from plant maintenance and other useful financial metrics.

With that I will turn the call over to Kim.

We have also updated the guidance for our 2025 full-year effective tax rate to negative 3%, primarily due to the non-cash impairments recognized during the third quarter.

Thank you Augustine, let's begin the segment discussion on slide 12, with the performance of the Olefins <unk> Polyolefin Americas segment.

In addition, our cash tax rate is expected to be substantially lower than our prior guidance.

During the third quarter, LNP Americas, EBITDA was $428 million, an improvement of 35% quarter on quarter.

Please refer to our updated 2025 modeling guidance in the appendix to this slide deck, describing impacts from plan maintenance and other useful financial metrics.

With that, I will turn the call over to Kim.

Seasonally higher demand and increased utilization following our channel do turnarounds support and sequential growth.

Peter Vanacker: During the third quarter, O&P Americas EBITDA was $428 million, an improvement of 35% quarter on quarter. Seasonally higher demand and increased utilization following our Channelview turnarounds supported sequential growth. Our third-quarter operating rates for the segment were approximately 85%, with our crackers running at approximately 95%. During the third quarter, North American olefins industry operating rates remained high, driven by favorable margins and good demand. Although industry margins declined, LyondellBasell integrated polyethylene margins improved by approximately 23% quarter over quarter, supported by the restart of the Channelview assets. During 2025, operations of our Hyperzone polyethylene plant in La Porte have significantly improved with more uptime, higher rates, and increased on-spec production of the full range of premium products. We will perform some modifications at the plant in early 2026 that should allow our Hyperzone PE technology to reliably deliver high-quality premium products with performance advantages that our customers desire.

Third quarter operating rates for this segment was approximately 85% with our crackers running at approximately 95%.

Thank you, Augustine. Let's begin the segment discussions on slide 12 with the performance of the elephants and poly olins, America segment.

During the third quarter, North American olefins industry operating rates remained high driven by favorable margins and good demand.

During the third quarter, P. America's Ibra was $428 million, representing an improvement of 35% quarter on quarter.

Seasonally higher demand and increased utilization, following our Channel View turnarounds, supported sequential growth.

Although industry margins declined <unk> integrated polyethylene margins improved by approximately 23% quarter over quarter supported by the restart of the channel view assets.

Our third quarter, operating rates for the segment was approximately 85% with our crackers running at approximately 95%.

During 2025 operations of our Hypersound polyethylene plant in La Porte have significantly improved with more uptime higher.

During the third quarter, the North American chemicals industry operating rates remained high, driven by favorable margins and good demand.

Their rates and increased on spec production of the full range of premium products.

We will perform some modifications at the plant in early 2026 that should allow our hypersound technology to reliably deliver high quality premium products with performance advantages that our customers desire. This as part of our portfolio transformation towards more specialized applications.

Although industry, margins declined, lyb integrated polyethylene margins. Improved by approximately 23% quarter over quarter supported by the restart of the channel view assets.

During 2025 operations of our hyper Zone. Polyethylene plant in the port have significantly improved with more uptime, higher rates, and increased on-spec production of the full range of Premium products.

In the fourth quarter, we expect typical seasonal trends of softer demand and customers desire to minimize year end inventories for pressure sales volumes. Nonetheless producers are also seeking to minimize inventories and reductions in the industry operating rate are providing evidence of adjustments to market conditions.

Peter Vanacker: This is part of our portfolio transformation towards more specialized applications. In the fourth quarter, we expect typical seasonal trends of softer demand and customers' desire to minimize year-end inventories will pressure sales volumes. Nonetheless, producers are also seeking to minimize inventories, and reductions in the industry operating rate are providing evidence of adjustments to market conditions. The balance of supply-demand will ultimately determine the success of our price increase initiatives. Sequentially higher natural gas and ethane prices are likely to result in somewhat higher costs during the fourth quarter, but we expect that this will be partially offset by our fixed cost reduction initiatives. Despite volatile oil prices, the favorable oil-to-gas ratio continues to provide an advantage to North American ethylene producers relative to oil-based production in other parts of the world.

We will perform some modifications at the plant in early 2026 that should allow our hyper Zone PE technology to reliably deliver high-quality premium products with performance advantages that our customers desire. This is part of our portfolio transformation towards more specialized applications.

The balance of supply demand will ultimately determine the success of our price increase initiatives.

Sequentially higher natural gas and ethane prices are likely to result in somewhat higher costs during the fourth quarter, but we expect that this will be partially offset by our fixed cost reduction initiatives.

in the fourth quarter, we expect typical seasonals trends of softer demand and customers desire to minimize urine inventories, while pressure sales volumes

Nonetheless, producers are also seeking to minimize inventories, and reductions in the industry operating rate are providing evidence of adjustments to market conditions.

Slight volatile oil prices the favorable oil to gas ratio continues to provide an advantage to north American ethylene producers relative to oil based production in other parts of the world.

The balance of supply and demand will ultimately determine the success of our price increase initiatives.

We remain focused on aligning our operating rates to manage working capital as serving domestic and export market demand.

Sequentially higher natural gas and ethane prices are likely to result in somewhat higher costs during the fourth quarter. However, we expect that this will be partially offset by our fixed cost reduction initiatives.

We expect to reduce our operating rates by 5% and our targeting 80% utilization across the segment during the fourth quarter.

Peter Vanacker: We remain focused on aligning our operating rates to manage working capital while serving domestic and export market demand. We expect to reduce our operating rates by 5% and are targeting 80% utilization across the segment during the fourth quarter. Please turn to slide 13 as we review the results of the Olefins & Polyolefins Europe, Asia, and International segment. During the third quarter, the segment generated EBITDA of $48 million. Altogether, EBITDA for both O&P segments improved by 31%. In EAI, segment EBITDA remained relatively flat as operational improvements helped offset margin pressures in polymers due to weak demand. Despite fewer operational constraints on some of our own assets, polymer margins declined due to increased competition from imports originating in cost-advantaged regions such as North America and the Middle East.

Please turn to slide 13, as we review the results of the olefin and Polyolefin Europe Asia and International segment.

Despite model oil prices, the favorable oil to gas ratio continues to provide an advantage to North American ethylene producers relative to oil-based production in other parts of the world.

We remain focused on aligning our operating rates to manage working capital while serving domestic and export market demand.

During the third quarter, the segment generated EBITDA of $48 million.

Altogether EBITDA for <unk> LNP segments improved by 31%.

We expect to reduce our operating rates by 5% and are targeting 80% utilization across the segments during the fourth quarter.

Segment EBITDA remained relatively flat as operational improvements helped offset margin pressures in polymers due to weak demand.

Please turn to slide 13 as we review the results of the Olin's and Poly, Olin's, Europe, Asia, and international segments.

Despite fewer operational constraints on some of our own assets.

During the third quarter, the segment generated evida of 48 million.

<unk> margins declined due to increased competition from imports of originating and cost advantaged regions, such as North America and the Middle East.

Altogether, evida for both on P segments, improved by 31%.

We continue to advance our strategic objectives in the regions as we progress on the proposed sale of the select European assets.

In the segment, Ibidio remained relatively flat as operational improvements helped offset margin pressures and polymers due to weak demand.

As part of this transaction I am proud to share that we have achieved a major milestone with the signing of the sales and purchase agreement.

Peter Vanacker: We continue to advance our strategic objectives in the regions as we progress on a proposed sale of the select European assets. As part of this transaction, I am proud to share that we have achieved a major milestone with the signing of the sales and purchase agreement. This marks another step towards closing the transaction, which we expect to occur in the first half of 2026. The transaction is another example of our strategy to grow and upgrade the core through optimizing our portfolio for long-term value creation. Additionally, as part of our second strategic pillar to build a profitable circular and low-carbon solutions business, we are making good progress on the construction of our MoReTec One facility in Wesseling, Germany. Major equipment deliveries are underway, and structural steel is being installed to position us for a successful ramp-up in 2027.

This marks another step towards closing the transaction, which we expect to occur in the first half of 2026.

Own assets polymer margins declined due to increased competition from imports originating in cost-advantage regions such as North America and the Middle East.

The transaction is another example of our strategy to grow and upgrade the core through optimizing our portfolio for long term value creation.

We continue to advance our strategic objectives in the regions as we progress on the proposed sale of the select European assets.

As part of this transaction, I am proud to share that. We have achieved a major Milestone with the signing of the sales and purchase agreement.

Additionally, as part of our second strategic pillar to build a profitable <unk> business, we are making good progress on the construction of our more tech one facility in <unk>, Germany.

This marks another step toward closing the transaction, which we expect to occur in the first half of 2026.

Major equipment deliveries are underway and structural steel is being installed to position us for a successful ramp up in 2027.

The transaction is another example of our strategy to grow and upgrade the core through optimizing our portfolio for long-term value creation.

Looking ahead to the fourth quarter, we expect similar seasonal softness in Europe rising feedstock costs are expected to add further pressure on margins.

Additionally, as part of our second strategic pillar to build a profitable clcs business. We are making good progress on the construction of our more Tech 1 facing Germany.

In response, we are taking steps to significantly reduced fourth quarter production, we intend to idle the larger of the two crackers indefinitely, Germany Olympics for at least 40 days during November and December.

Peter Vanacker: Looking ahead to the fourth quarter, we expect similar seasonal softness in Europe. Rising feedstock costs are expected to add further pressure on margins. In response, we are taking steps to significantly reduce fourth-quarter production. We intend to idle the larger of the two crackers in Wesseling, Germany, OM6, for at least 40 days during November and December. As such, we are targeting operating rates for approximately 60% across the segment during the fourth quarter. With that, I will turn the call over to Aaron. Thank you, Kim. Please turn to slide 14 as we look at the Intermediates and Derivatives segment. In the third quarter, segment EBITDA sequentially increased to $303 million, as improved margins for oxyfuels were partially offset by plant maintenance downtime in our La Porte acetyl assets.

Major equipment deliveries are underway, and structural steel is being installed to position us for a successful ramp-up in 2027.

As such we are targeting operating rates for approximately 60% across the segment during the fourth quarter.

Looking ahead to the fourth quarter, we expect similar seasonal softness in Europe, Rising feeds. Stock costs are expected to add further pressure on margins.

With that I will turn the call over to Aaron.

Thank you Kim please turn to slide 14, as we look at the intermediates and derivatives segment.

In the third quarter segment, EBITDA sequentially increased to $303 million as improved margins for oxy fuels were partially offset by planned maintenance downtime at our laporte asset sales assets.

In response, we are taking steps to significantly reduce fourth quarter production. We intend to idle the larger of the 2 crackers. Investing Germany. Om6 for at least 40 days during November and December.

As such we are targeting operating rates for approximately 60% across the segments during the fourth quarter.

With that, I will turn the call over to Iran.

Oxy fuels margins were supported by planned and unplanned outages that reduced the supply of high octane gasoline blend stocks in the Atlantic Basin.

Thank you, Kim. Please turn to slide 14. As we look at the intermediates and derivatives.

<unk> Bay Porte facility had a three week unplanned outage related to a third party supplier impacting EBITDA by approximately $15 million. While other notable outages included competitors, along the Gulf Coast and in Western Africa.

Peter Vanacker: Oxyfuels margins were supported by planned and unplanned outages that reduced the supply of high-octane gasoline blend stocks in the Atlantic Basin. Our Bayport facility had a three-week unplanned outage related to a third-party supplier, impacting EBITDA by approximately $15 million, while other notable outages included competitors along the Gulf Coast and in Western Africa. As a result of our downtime, LyondellBasell operating rates across the segment fell 5 percentage points short of our goal of 80% rates for the third quarter. Styrene margins normalized following second-quarter supply disruptions across the industry. In September, we began a planned turnaround of our acetyl assets that will continue into the fourth quarter. The turnaround will support the first steps of our catalyst conversion initiative aimed at improving margins and productivity while reducing our reliance on costly precious metals. As we navigate the cycle, our focus on operational excellence continues to deliver results.

in the third quarter segment, Evita sequentially increased to 303 million as improved margins for oxy fuels were partially offset by planned maintenance downtime at our leeport acetals assets,

As a result of our downtime <unk> operating rates across the segment saw five percentage points short of our goal of 80% rates for the third quarter.

Oxy fuels margins were supported by planned and unplanned outages that reduce the supply of high-octane gasoline blend stocks in the Atlantic basin.

Styrene margins normalized following second quarter supply disruptions across the industry.

In September we began planned turnaround of our asset sales assets that will continue into the fourth quarter.

Our Bayport facility had a 3-week unplanned outage related to a third-party supplier, impacting EBITDA by approximately $15 million, while other notable outages included competitors along the Gulf Coast and in Western Africa.

The turnaround will support the first steps of our catalyst conversion initiatives aimed at improving margins and productivity, while reducing our reliance on costly precious metals.

As a result of our downtime lyb operating rates across, the segments, till 5 percentage points, short of our goal of 80% rates. For the third quarter,

As we navigate this cycle our focus on operational excellence continues to deliver results in.

Starring margins. Normalize following second-quarter supply disruptions across the industry.

In addition to executing on the La Porte turnaround, we recently achieved a milestone with our channel view TBA facility exceeding benchmark production rates during the quarter, reflecting focused execution and reliability across the site.

in September, we began to planned turnaround of our

The turnaround will support the first steps of our Catalyst conversion initiative aimed at improving margins and productivity, while reducing our Reliance on costly precious metals.

Moving into the fourth quarter, we expect oxy fuels margins to moderate as typical year end trends take hold in both gasoline and butane prices, although perhaps not as pronounced as in previous years.

Peter Vanacker: In addition to executing on the La Porte turnaround, we recently achieved a milestone with our Channelview POTBA facility exceeding benchmark production rates during the quarter, reflecting focused execution and reliability across the site. Moving into the fourth quarter, we expect oxyfuels margins to moderate as typical year-end trends take hold in both gasoline and butane prices, although perhaps not as pronounced as in previous years. As part of our work to manage inventories, we will idle one of our POSM units in Channelview at the beginning of November for approximately 40 days. With this additional downtime, we expect to operate our Intermediates and Derivatives assets at a weighted average rate of approximately 75% during the fourth quarter. With that, I will turn the call over to Torkel. Thank you, Aaron. Please turn to slide 15 as we review results for the Advanced Polymer Solutions segment.

As we navigate the cycle, our focus on operational, excellence continues to deliver results.

As part of our work to manage inventories, we will idle one of our <unk> units and channel view at the beginning of November for approximately 40 days.

In addition to executing on the Leeport turnaround, we recently achieved a milestone with our Channel View, Potba facility, exceeding benchmark production rates during the quarter, reflecting focused execution and reliability across the site.

With this additional downtime, we expect to operate our assets at a weighted average rate of approximately 75% during the fourth quarter.

Moving into the fourth quarter, we expect oxyfuels margins to moderate as typical year-end trends take hold in both gasoline and butane prices, although perhaps not as pronounced as in previous years.

With that I will turn the call over to total.

Thank you Erin please turn to slide 15 US will review results for the advanced polymer solutions segment.

As part of our work to manage inventories we will idle 1 of our PSM units and channel view at the beginning of November for approximately 40 days.

Third quarter, EBITDA was $47 million as our cost discipline supported margin improvement to overcome headwinds and automotive markets.

With this additional downtime, we expect to operate our IND assets at a weighted average rate of approximately 75% during the fourth quarter.

Global automotive production volumes declined us Oems experienced typical downtime in the third quarter and our volumes slightly declined due to lower demand from customers in the construction and electronics industries.

With that, I will turn the call over to toll.

Peter Vanacker: Third-quarter EBITDA was $47 million. As our cost discipline supported margin improvement to overcome headwinds in automotive markets, global automotive production volumes declined as OEMs experienced typical downtime in the third quarter, and our volumes slightly declined due to lower demand from customers in the construction and electronics industries. EBITDA for the first nine months of 2025 exceeded full-year results for 2023 or 2024, clearly demonstrating the excellent progress the APS team is making to transform the business despite the challenging market environment. Looking ahead, we expect near-term demand to remain soft across key sectors and regions. Pricing pressures are partially offsetting the benefits of fixed cost reductions achieved through our cash improvement plan. Despite the challenging market backdrop, we remain laser-focused in our work to transform our APS segment to a customer-centric growth business.

Thank you, Aaron. Please turn to slide 15 as we review results for the advanced polymer solution segment.

EBITA for the first nine months of 2025 exceeded full year results for 2023 or 2024, clearly demonstrating the excellent progress. The <unk> team is making to transform the business despite the challenging market environment.

In the third quarter, EBITDA was $47 million as our cost. Discipline supported margin improvement to overcome headwinds in automotive markets.

Global Automotive production volumes declined, as oems experienced typical downtime in the third quarter and our volume slightly declined due to lower demand from customers in the construction and electronics Industries.

Looking ahead, we expect near term demand to remain soft across key sectors and regions.

Pricing pressures are partially offsetting the benefits of fixed cost reductions achieved through our cash improvement plan.

Despite the challenging market backdrop, we remain laser focused in our work to transform our Aps segment to our customer centric growth business.

Hit up for the first 9 months of 2025 exceeded full-year results for 2023 or 2024, clearly demonstrating the excellent progress the APS team is making to transform the business despite the challenging market environment.

Looking ahead. We expect near-term demand to remain, soft across key, sectors and regions.

With a 75% improvement in our net promoter score with customers since 2023, and having been recognized with supplier Excellence awards, but customers like Toyota Nissan and stay Lumpiness amongst others. We continue to increase our growth funnel and approve our win rates to gain new project qualifications.

Pricing pressures are partially offsetting the benefits of fixed costs. Reductions have been achieved through our Cash Improvement Plan.

Peter Vanacker: With a 75% improvement in our net promoter score with customers since 2023 and having been recognized with Supplier Excellence Awards by customers like Toyota, Nissan, and Stellantis, amongst others, we continue to increase our growth funnel and improve our win rates to gain new project qualifications. We are proactively managing the business portfolio and remain confident that the work we are doing will profitably transform the APS business and enable us to achieve our long-term goals. With that, I will return the call to Peter. Thank you, Torkel. Please turn to slide 16, and I will discuss the results for the Technology segment on behalf of Jim Stewart. Third-quarter EBITDA of $15 million was lower than the guidance we provided during our second-quarter call. Licensing profitability decreased as revenues declined, and market dynamics remain challenging with very low licensing activity and lower catalyst volumes.

Just like the challenging market backdrop, we remain laser-focused in our work to transform our APS segment into a customer-centric growth business.

We are proactively managing the business portfolio and remain confident that the work. We are doing will profitably transform the aps business and enable us to achieve our long term goals.

With that I will return the call to Peter.

Thank you to Oracle, Please turn to slide 16, and I will discuss the results for the technology segment on behalf of Jim Stewart.

With a 75% improvement in our net promoter score with customers since 2023, and having been recognized with supplier excellence awards by customers like Toyota, Nissan, and Stellantis, amongst others, we continue to increase our growth funnel and improve our win rates to gain new project qualifications.

Third quarter EBITDA of $15 million was lower than the guidance, we provided during our second quarter call.

We are proactively managing the business portfolio and remain confident that the work we are doing will profitably transform the APS business and enable us to achieve our long-term goals.

Licensing profitability decreased as revenues declines and market dynamics remain challenging with very low licensing activity and lower catalyst volumes.

With that, I will return the call to Peter.

Thank you. Please turn to slide 16, and I will discuss the results for the technology segment on behalf of Jim Stewart.

We see licensing activity has dropped nearly two thirds since its cyclical peak in 2018 with current levels comparable to the lows seen in the early two thousands underscoring the significant slowdown of investments in global petrochemical capacity.

Peter Vanacker: We see licensing activity has dropped nearly two-thirds since its cyclical peak in 2018, with current levels comparable to the lows seen in the early 2000s, underscoring the significant slowdown of investments in global petrochemical capacity. In contrast, margins for our catalyst increased on sales mix improvements. In the fourth quarter, we expect improved profitability as previously sold licenses achieve revenue milestones. Additionally, catalyst demand is expected to improve from the unusually low levels seen in the third quarter. As a result, we estimate that the fourth-quarter technology segment results will be similar to the first-quarter results. Let me share our views on our key regional and product markets on slide 17. In line with earlier comments, we expect typical year-end seasonality and our actions to proactively reduce operating rates will create headwinds across most businesses, resulting in lower fourth-quarter profitability.

Third quarter EBITDA of $15 million was lower than the guidance provided during our second quarter call. Licensing profitability decreased as revenues declined, and market dynamics remain challenging with very low licensing activity and lower catalyst volumes.

In contrast margins for our catalyst increased comp sales mix improvements.

During the fourth quarter, we expect to improve profitability as previously sold licenses achieved revenue milestones.

We see licensing activity has dropped nearly two-thirds since its cyclical peak in 2018. We have current levels comparable to the lows seen in the early 2000s.

Additionally, catalyst demand is expected to improve from the unusually low level seen in the third quarter. As a result, we estimate that the fourth quarter technology segment results will be similar to the first quarter results.

Underscoring this significant slowdown of investments in global petrochemical capacity.

In contrast, margins for our Catalyst increased due to sales mix improvements.

Let me share our views on our key regional and product markets on slide 17.

In the fourth quarter, we expect improved profitability as previously sold licenses achieve revenue milestones.

In line with earlier comments, we expect typical year end seasonality and our actions to proactively reduce operating rates will create headwinds across most businesses, resulting a lower fourth quarter profitability.

Additionally, Catalyst demand is expected to improve from the unusually low levels seen in the third quarter, as a result, we estimate that the fourth quarter technology, segment results will be similar to the first quarter results.

In the Americas exports will continue to play a critical role in balancing markets. Despite a small uptick in fourth quarter ethane costs U S. Feedstock based cost advantage is durable and will sustain regional competitiveness despite trade volatility.

Let me share our views on our key regional and product markets on slide 17.

Peter Vanacker: In the Americas, exports will continue to play a critical role in balancing markets. Despite a small uptick in fourth-quarter ethane costs, the U.S. feedstock-based cost advantage is durable and will sustain regional competitiveness despite trade volatility. As global trade flows adjust, these structural advantages will continue to allow LyondellBasell Industries NV to capture opportunities from cost-advantaged U.S. production. Within Europe, fourth-quarter demand is particularly weak, and polyolefin pricing remains under pressure from increased imports from the Middle East and North America. Nonetheless, circularity initiatives continue to benefit from supportive regional regulations, reinforcing consumer preferences for sustainable products in the region. In addition, accelerating capacity rationalizations will help to improve supply and demand balances across the industry. In Asia, near-term capacity additions will continue to pressure regional supply and demand dynamics.

In line with earlier comments, we expect typical year and seasonality. And our actions to proactively reduce operating rates will create headwinds across most businesses resulting in lower, fourth quarter profitability,

As global trade flows adjust these structural advantages will continue to allow <unk> to capture opportunities from cost advantaged U S production.

Within Europe fourth quarter demand is particularly weak and polyolefin pricing remains under pressure from increased imports from the middle East and North America.

In the Americas, exports will continue to play a critical role in balancing markets. Despite a small uptick in Q4 ethane costs, the U.S. feedstock-based cost advantage is durable and will sustain regional competitiveness, despite trade volatility.

Nonetheless, circularity initiatives continue to benefit from supportive regional regulations, reinforcing consumer preferences for sustainable products in the region. In addition, accelerating capacity rationalizations will help to improve supply and demand balances across the industry.

As global trade flows, adjust these structural advantages will continue to allow lyb to capture opportunities from cost Advantage us production.

Within Europe, fourth quarter demand is particularly weak, and polyphen pricing remains under pressure from increased imports from the Middle East and North America.

And Asia near term capacity additions will continue to pressure regional supply and demand dynamics that said, we remain cautiously optimistic as recent rationalization efforts in the region as well as China's anti involution measures could provide parcher offsets over the medium term.

Nonetheless, circularity initiatives, continue to benefit from supportive, Regional regulations reinforcing consumer preferences for sustainable products, in the region, in addition accelerating capacity rationalizations will help to improve supply and demand balances across the industry.

Within packaging markets demand remains good even amidst broader economic uncertainty as a shift towards value driven consumption for packaged foods and other essential products sustained steady demand for our products.

Peter Vanacker: That said, we remain cautiously optimistic as recent rationalization efforts in the region, as well as China's anti-involution measures, could provide partial offsets over the medium term. Within packaging markets, demand remains good even amid broader economic uncertainty as a shift towards value-driven consumption for packaged foods and other essential products sustains steady demand for our products. In building and construction markets, while lower interest rates are driving an increase in mortgage applications, affordability continues to constrain pent-up consumer demand for new and existing homes. In automotive markets, forecasts have become less pessimistic in the industry, as recent trade agreements are providing greater clarity and reducing uncertainty across the sector. Lastly, in oxyfuels, despite a strong October, the seasonal compression in gasoline crack spreads are expected to reduce profitability for the remainder of the year.

In Asia near-term capacity additions will continue to pressure Regional supply and demand. Dynamics that said, we remain cautiously optimistic as recent rationalization efforts in the region as well. As China's anti-invasion could provide partial offsets over the medium term.

And building and construction markets, while lower interest rates are driving an increase in mortgage applications affordability continues to constrain pent up consumer demand for new and existing homes.

In automotive markets forecasts have become less pessimistic in the industry has recent trade agreements are providing greater clarity and reducing uncertainty across the sector.

Within packaging, markets, demand remains good even amid broader, economic uncertainty, as a shift towards valued driven consumption for packaged foods, and other essential products sustained, steady demand for our products.

Lastly, and oxy fuels. Despite a strong October the seasonal compression and gasoline crack spreads are expected to reduce profitability for the remainder of the year. However, we expect industry downtime will provide some modest support for margins relative to typical fourth quarter trends.

In building and construction markets. While lower interest rates are driving. An increase in mortgage applications. Affordability continues to constrain pent-up consumer demand for new and existing homes.

In automotive markets forecasts have become less pessimistic in the industry as recent trade agreements or providing greater Clarity and reducing uncertainty across the sector.

As we conclude today's call I would like to acknowledge the resilience and discipline our team continues to demonstrate.

Peter Vanacker: However, we expect industry downtime will provide some modest support for margins relative to typical fourth-quarter trends. As we conclude today's call, I would like to acknowledge the resilience and discipline our team continues to demonstrate. Throughout the third quarter, we faced market headwinds, and we will undoubtedly face more challenges before the year is done. Our team continues to make smart decisions while operating our assets safely and reliably to deliver on their commitments and provide value for customers. We continue to navigate the cycle with discipline, agility, and a clear vision that will position LyondellBasell Industries NV to emerge stronger and deliver lasting value for all our stakeholders. I am proud to lead this dedicated team as we continue taking strategic actions to reshape LyondellBasell Industries NV, create value, and position our company for sustainable success. Now, with that, we're pleased to take your questions. Thank you.

Throughout the third quarter, we faced market headwinds and we will undoubtedly face more challenges before the year is done but our team continues to make smart decisions, while operating our assets safely and reliably to deliver on their commitments and provide value for customers.

Lastly, an oxy fuels, despite a strong October, the seasonal, compression and gasoline, crack spreads are expected to reduce profitability for the remainder of the year. However, we expect industry downtime will provide some modest support for margins relative to typical fourth quarter threads

I would like to acknowledge the resilience and discipline our team continues to demonstrate.

We continue to navigate the cycle with discipline agility, and a clear vision that will position <unk> to emerge stronger and deliver lasting value for all our stakeholders.

Throughout the third quarter, we Face Market headwinds and we will undoubtedly face more challenges before the year is done.

I am proud to lead this dedicated team as we continue taking strategic actions to reshape <unk> create value and position our company for sustainable success.

But our team continues to make smart decisions while operating our assets safely and reliably to deliver on their commitments and provide value for customers.

Now with that we're.

We're pleased to take your questions.

We continue to navigate the cycle with discipline agility and a Clear Vision that will position lyb to emerge stronger and deliver lasting value for all our stakeholders.

Thank you.

Ladies and gentlemen at this time, we'll begin the question and answer session.

As a reminder, if you have a question. Please press the star followed by the one on your Touchtone phone.

If you would like to withdraw your question. Please press the star followed by the team.

I am proud to lead this dedicated team as we continue taking strategic actions to reshape lyb, create value and position our company for sustainable success.

Now, with that.

We do ask you to limit to one question. Thank you.

We're pleased to take your questions.

Peter Vanacker: Ladies and gentlemen, at this time, we'll begin the question and answer session. As a reminder, if you have a question, please press the star followed by the one on your touch-tone phone. If you would like to withdraw your question, please press the star followed by the two. We do ask you to limit to one question. Thank you. Our first question comes from the line of Patrick Cunningham with Citi. Please proceed with your question. Hi. Good morning. I guess just on polyethylene, we seem to sit in a position of pretty resilient demand. You have some confidence exiting into next year on this growth trajectory.

Thank you.

Ladies and gentlemen.

Our first question comes from the line of Patrick Cunningham with Citigroup. Please proceed with your question.

Hi, Good morning, I guess just on polyethylene.

We seem to sit in a position pretty resilient demand do you have some confidence exiting into next year on this growth trajectory, but with $55 crude.

As a reminder, if you have a question, please press the star followed by the 1 on your touchtone phone. If you would like to withdraw your question, please press the star, followed, by the 2. We do ask you to limit to 1 question. Thank you.

Net capacity addition is more likely to accelerate versus the June quarter closures become meaningful and then some trade law uncertainty on top of that how would you weight the likelihood of any sort of inflection point in the supply and demand are underlying prices and margins into next year.

Our first question comes from the line of Patrick Cunningham with Citigroup. Please proceed with your question.

Hi, good morning.

Peter Vanacker: With $65 crude, net capacity additions more likely to accelerate versus this year before closures become meaningful, and then some trade flow uncertainty on top of that, how would you weight the likelihood of any sort of inflection point in supply and demand or underlying prices and margins into next year? Thank you, Patrick. Let me make a couple of comments on your question, and then I will hand over to Kim. Rightfully so. Yes, as we've shown in the presentation, you see that spike of additional capacity coming on stream in China during the next couple of years. As we have also shown, about 21 million tons of ethylene capacity is about to disappear as well. That's our estimation. Of course, not all of that has been really communicated and decided yet, but we believe that that will be a good balancing out of the overcapacity.

Thank you Patrick let.

Let me make a couple of comments on your question and then I will hand over to Kim.

Rightfully so yes, as we've shown in the presentation.

You'll see that spike of additional capacity coming on stream in China.

I guess, you know, just on polyethylene, you know, we seem to sit in a position of pretty resilient demands and you have some confidence, you know, exiting into next year on this growth trajectory, but with 65 crude, you know, net capacity additions, more likely to, you know, accelerate versus this year before closures become meaningful and then some trade flow uncertainty, on top of that. How would you wait the likelihood of any sort of inflection point? And, you know, supply and demand or underlying prices and margins into next year?

During the next couple of years, but as we have also shown about 'twenty one.

Thank you, Patrick. Um, let me make a couple of comments on your question and then I will hand over to Kim.

Tons of ethylene capacity is about to disappear as well that's our estimation.

Um,

Of course, not all of that has been really communicated and decided yet but we believe that.

That will.

B a good balancing outs of the overcapacity.

right for the soul. Yes. As we shown in the presentation. Uh, you see that Spike uh of additional capacity coming on stream in China, um, during the next couple of years. But as we have also shown about 21,

Please remind that a lot of that capacity in China.

At the wrong side of the cash cost curve as we said in the prepared remarks.

So they will have continuously difficulties to compete as well and therefore.

Million tons of Italy in capacity is about to disappear as well. That's our estimation of course. Not all of that has been, uh, really communicated and decided yet, but we believe that um, that will

Peter Vanacker: Please remind me that a lot of that capacity in China is at the wrong side of the cash cost curve, as we said in the prepared remarks. They will have continuously difficulties to compete as well. Therefore, if margins remain low, then they would run at minimum technical capacity. One may not, and I've said that before, look at nameplate capacities only. One needs to look at economically feasible capacity based upon current market conditions. We continue to see that polyethylene globally is very robust in terms of demand. That, of course, has to do with the different applications that it goes in. Consumer packaging continues to be very robust, what we have seen also in the past during critical periods in time, like, for example, a pandemic. We also see that there is more and more support by having lower inflation rates, lower interest rates.

If margins remain low then they would run at minimum technical capacity. So one may Nox and I've said that before.

Be a good balancing out of the over capacity, please. Remind, I mean, that a lot of that capacity in China,

Look at nameplate capacities, only one needs to look at economical feasible capacity base.

Based upon current market conditions.

We continue to see that polyethylene globally is very robust in terms of demand.

That of course has to do with a different application that it goes in consumer packaging continues to be very robust what we have seen also in the past during.

Okay.

Is at the wrong side of the cash cost curve as we said in the prepared remarks, uh, so they will have continuously difficulties to compete as well, and therefore, uh, if margins remain low, then they would run at minimum technical capacity. So 1 may not and I've said that before. Uh, look at name plate capacities. Only 1 needs to look at economical feasible capacity uh based upon current market conditions

<unk> periods in time like for example.

Pandemic.

We also see that there is more and more support.

We continue to see that polyene globally is very robust in terms of demand.

By having lower inflation.

Inflation rates lower interest rates.

That of course, we would expect.

Uh, that of course has to do with the different application that it goes in. Consumer packaging continues to be very robust. So, what we have seen also in the past during, um,

Will lead to more demand in Europe of goods.

One may expect during the next couple of years.

Critical periods in time. Like, for example, a pandemic.

The housing markets.

We also see that there is more and more support.

It would be more positive than what we have experienced in 2025 and the last thing that I want to point out is.

Peter Vanacker: That, of course, we would expect will lead to more demand in durable goods. One may expect during the next couple of years that then the housing market would be more positive than what we have experienced in 2025. The last thing that I want to point out is that government spending on infrastructure is one element that is driving demand. Tech, artificial intelligence, data centers, utility construction for power, EV cars, and that, they all demand applications. These are all applications that increase demand, not just for polyethylene, but also for polypropylene. Kim, anything you want to add?

Uh, by having lower, um, inflation rates, uh, lower interest rates.

Uh, that, of course, we would expect.

Government spending on infrastructure.

<unk> is one element that is driving demands.

Take artificial intelligence data centers.

Utility construction for power EV cars and that they.

They all demands and mean application. These are all applications that increased demand not just for polyethylene.

But also for polypropylene.

Anything you want to add I think the only thing that I would add all those comments Peter as it relates to Lyondellbasell and our ability for an inflection point in 2026 is going to be there has been new capacity derivative cap capacity brought online this year by one of our competitors and there is another proposed set of assets coming online next year.

Will lead to more demand uh in durable goods. Um 1 may expect during the next couple of years. Uh, that then the housing markets um, would be more positive than what we have experienced in 2025. The last thing that I want to point out is uh, that I mean, government spending on infrastructure, uh, is 1 element, that is driving demands, um, Tech, artificial intelligence data centers,

Um, utility construction for power, EV cars. And that, uh, they all demand. I mean application, these are all applications uh, that increase demand, not just for Poulan but also for poly prop.

Peter Vanacker: I think the only thing that I would add to all those comments, Peter, as it relates to LyondellBasell's and our ability for an inflection point in 2026 is going to be there's been new capacity, derivative capacity brought online this year by one of our competitors, and there's another proposed set of assets coming online next year. You're going to see a tightening in the ethylene market, and that's going to likely improve chain margins as we think about 2026. With regards to the oil-gas ratio, we continue to believe that the high oil-gas ratio is sustainable. We've seen oil-gas ratios in the range of 15 to 25. It would actually have to go down to, let's say, around 6, 7, 4. The productions in the Gulf Coast, to, let's say, have a flattening cost curve. We don't see that happening. We don't see that happening.

See a tightening in the ethylene market and thats going to likely improved <unk> margins as we think about 'twenty six.

And with regards to <unk> the oil gas ratio I mean, we continue to believe that the high oil gas ratio is sustainable.

Yes, we've seen oil gas ratios in the range of 15% to 25, it would actually have to go down.

To let's say around <unk>.

Cap capacity brought online this year by 1 of our competitors. And there's another proposed set of assets coming online next year. So you're going to see a tightening in the ethylene market, and that's going to likely improve change margins. As we think about 26,

Six seven.

Four.

D.

Production in the Gulf Coast.

And with regards to the oil and gas race, we continue to believe that the high oil and gas ratio is sustainable.

To let's say have a flattening cost a cost curve.

Don't see that happening.

We don't see that it's happening.

Yeah, we've seen our gas ratios in a range of 15 to 25. It would actually have to go down, um, to let's say around.

We're more looking at something in the range of.

6 7.

12% to 15 in the immediate foreseeable future.

um, for uh, the

Thank you. Our next question comes from the line of David Begleiter with Deutsche Bank. Please proceed with your question.

Peter Vanacker: We're more looking at something in the range of 12 to 15 in the immediate foreseeable future. Thank you. Our next question comes from the line of David Begleiter with Deutsche Bank. Please proceed with your question. Thank you. Good morning. Peter, in China, can you just go to what's happened there? You have a unique perspective given your JV. Why and how are these plants still running? Is it cheap Russian crude? Is it government support? Are they not allowed to close? Maybe you could relate that to your own experience with the Borouge JV. Thank you. Thank you, David. That allows me, I mean, then also that question to, again, highlight what I said at the prepared remarks. You said it rightfully. We have unique access to the Chinese markets, also due to our licensing activities. The licensing activities have dropped about 80% from its peak in 2019.

Thank you good morning, Peter.

Can you just got to watch whats happening there you have a unique perspective, given your JV. So.

Productions in the Gulf Coast uh, to let's say, have a flattening cost cost curve. Yeah. And we don't see that happening. Um, we don't see that happening. Um, we're more looking at something in a range of, um, uh, 12 to 15 in the immediate foreseeable future.

Why and how these plants are running as a cheap Russian crude is that government support or they're not allowed to close maybe you can relate that to your own experience with the <unk> JV. Thank you.

Please proceed with your question.

Thank you David.

And then also that question to again highlight what I said at the prepared remarks, I mean, you said rightfully we have a unique.

Thank you. Good morning. Peter, uh, in China, can you just go to what this is what's happening? There you have a unique perspective, keeping your JV. So

Access to the Chinese markets also due to our licensing activities.

And the licensing activities they have dropped.

How? Why? And how are these plants still running? Is it cheap Russian crude? Is it government support, or are they not allowed to close? Maybe you can relate that to your own experience with the BOAR JV. Thank you.

About 80% from its peak in 2019.

So thats really what youll see I mean that slow down that cyclicality because of course on one hand side there is no profitability.

Thank you, David. Um, that allows me. I mean, and also that question to again highlight. What I said at the prepared 3 marks, I mean, you said it, rightfully, we have a unique, um, access to the Chinese markets. Also, due to our licensing activities.

In China on the other hand site, you hear more and more in the next five year plan discussions locally going on around <unk>.

Peter Vanacker: That's really what you see, that slowdown, that cyclicality, because, of course, on one hand side, there is no profitability in China. On the other hand side, you hear more and more in the next five-year plan discussions locally going on around ethylene-related projects. The burden to get the approval from central NDRC is much higher than eventually it has been by local NDRCs in the past. If you look at our joint venture, we're running at technical minimum capacity. We are in first quartile lowest cost in China. If you compare that to the others, why are they running at minimum technical capacity and not shutting down? I think it continues to be mainly because of safeguarding employment. Everybody knows and everybody talks about the anti-involution measures.

And the licensing activities they have dropped about 80% from its peak in 2019.

Italy and related projects the burden I mean to get the approval from central in DRC is much higher that eventually it has been by local and <unk> in the past.

So, that's really what you see. I mean that slowed down that cyclicality, because of course, on one hand, there is no profitability.

If you look at our <unk> joint venture.

We're running at technical minimum capacity, if you look at and we are in first quartile lowest cost in China.

Compare that to the others why you are theyre running I mean at minimum technical capacity are not shutting down I think it continues to be mainly because of safeguarding employments, but everybody knows and everybody talks about TNT involution measures.

In China, on the other hand side, you hear more and more in the next 5 year plan discussions, locally going around around uh, Italy and related projects. The burden. I mean, to get the approval from Central ndrc is, is much higher than eventually, it has been by local ndrc and the past.

Um,

And even if it is still early and we don't have the full visibility you saw the chart in our presentation, we do expect.

If you look at our joint venture, we're running at technical minimum capacity. If you look at, and we are in first quartile, the lowest cost in China.

<unk> underground <unk> that there will be.

Quite some closures that will flow out of that anti evolution, so our level of confidence from quarter to quarter is increasing.

If you compare that to the others, why are they running? I mean, at minimum, technical capacity and not shutting down, I think it continues to be mainly because of safeguarding employment

Peter Vanacker: Even if it's still early and we don't have the full visibility, you saw the chart in our presentation, we do expect and hear that on the ground that there will be quite some closures that will flow out of that anti-involution. Our level of confidence from quarter to quarter is increasing that there will be capacity shutdowns in China. Kim? I think the only thing that I would add is just this week we announced at our JV that we have added ethane to the feed slate. We're looking to improve our cost position even more. Thank you. Our next question comes from the line of Matthew Blair with Tudor Pickering Holt. Please proceed with your question. Great. Thank you. Good morning. Can you talk a little bit about the security of the dividend? I think the current yield is up to 12%.

But everybody knows, and everybody talks about the entity involution measures.

We'll be capacity shutdowns in China.

Kevin I think the only thing that I would add is just this week, we announced at our JV that we have added ethane to the feed slate. So we're looking to improve our cost position even more.

Thank you. Our next question comes from the line of Matthew Blair with Tudor Pickering Holt. Please proceed with your question.

And even if it's still early and we don't have the full visibility. You saw the chart in our presentation, we do expect. Uh, and hear that on the grounds that there will be uh, quite some closures, uh, that will flow out of, um, that anti- involution. So our level of Confidence from quarter to quarter is increasing that there will be capacity shutdowns in in China,

Great. Thank you and good morning could you.

Talk a little bit about the security of the dividend.

Current yield is up 12% and strong.

Okay, I think the only thing that I would add is just this week we announced, uh, at our JV that we have added ethane to the feed slate. So, uh, we're looking to improve our cost position even more.

Strong cash conversion this year.

Free cash flow appears pretty unlikely to cover the dividend.

Thank you. Our next question comes from the line of Matthew Blair with Tudor Pickering Holt. Please proceed with your question.

So how are you thinking about this and the cash that we spent on a dividend would that be better served in areas like shoring up the balance sheet or maintenance capex or things like that.

Peter Vanacker: Despite the strong cash conversion this year, your free cash flow appears pretty unlikely to cover the dividend. How are you thinking about this? With the cash that you spend on the dividend, would that be better served in areas like shoring up the balance sheet or maintenance CapEx or things like that? Thank you, Matthew. Of course, we were expecting that someone would ask that question. Thank you for asking the question. Let me highlight four points on our thoughts on our dividends. First of all, as you all know, we were very careful in how we were managing our cash during the last couple of years. I know some people have asked us questions, why are we keeping that cushion? Today, I'm happy that we did take those decisions in the past. We started 2025 with a cash balance that provides us a cushion.

Thank you Matthew <unk> of course, I mean, we were expecting that someone would ask that question. So thank you for asking the question.

Let me highlight four points.

On her thoughts on our dividends first of all as you. All know we were very careful in how we were managing our cash during the last couple of years.

Uh, great. Thank you and good morning. Um, could you talk a little bit about the security of the dividends? I think the current yield is up to 12%, and despite the, um, the strong cash conversion this year, your free cash flow appears pretty unlikely to cover the dividends. Um, so how are you thinking about this? And, you know, with the cash that you spent on the dividend, would that be better served in areas like strengthening the balance sheet or, you know, maintenance capital?

Facts or or things like that.

And I know some people have.

I've asked those questions.

Why are.

Or are we keeping that.

That cushion.

Today I am happy that we did took dose to take those decisions in the past. So we started 2025 with a cash balance that provides us a question, yes, it's a robust cash balance of $3 4 billion.

Thank you, Matthew, and of course, I mean, uh, we were expecting that. Someone would ask that question. So, thank you for asking the question. Um, let me highlight, I mean, 4 Points. Um, on how our thoughts on our dividends, first of all, as you all know,

We were very careful in how we were managing our cash during the last couple of years.

Which has been much higher than the cash balance that we had.

In the past, which was more around 161 7 billion. That's the first 0.2nd point, we continue to take a balanced approach to capital allocation, especially as we are navigating the cycle.

And I know some people, yeah, have asked us questions. Um, why uh or we keeping uh that question.

Peter Vanacker: It's a robust cash balance of $3.4 billion, which has been much higher than the cash balance that we had in the past, which was more around $1.6, $1.7 billion. That's the first point. Second point, we continue to take a balanced approach to capital allocation, especially as we are navigating the cycle. We reminded you again, we are on track on the cash improvement plan. $1.1 billion at least until the end of 2026. The first tranche of $600 million until the end of 2025, we said well on track. We also communicated today when we looked into more details on our CapEx for next year that we could further reduce our CapEx from $1.4 billion to $1.2 billion again in 2026. The third point is our investment-grade balance sheet remains, of course, the foundation of our capital allocation strategy.

Today, I'm happy that we took those decisions in the past. So we started 2025 with a cash balance that provides us a question. It's a robust cash balance of $3.4 billion.

We will remind you again, we are on track on the cash improvement plan.

$1 $1 billion at least until the end of 2026, the first range of $600 million until the end of 2025, we set well on track.

$1.6 billion, $1.7 billion. That's the first point.

Second point: we continue to take a balanced approach to capital allocation, especially as we are navigating the cycle.

And.

We also communicated today when we look into more details on our Capex for next year that we could further reduce our capex from $1 4 billion to $1 2 billion again in 2026.

We reminded you again, we are on track with the cash improvement plan.

Um,

1.1 billion, at least until, uh, the end of 2026. The first range of $600 million, until the end of 2025, we set well on track.

Okay.

The third point is our investment great balance sheets remains of course, the foundation of our capital allocation strategy.

and,

You all know I mean that investment grades makes it cheaper to do business and avoids having to make dramatic changes to our strategy or our portfolio to address I mean.

We also communicated today, when we looked, I mean, into more details, on our capex for next year that we could further, reduce our capex from 1.4 billion to 1.2 billion again, in 2026.

The balance sheet and we continue to have very proactive dialogues with credit agencies. We're also fully aware of their expectations and the sensitivities.

Peter Vanacker: You all know that investment grades make it cheaper to do business, avoids having to make dramatic changes to our strategy or portfolio to address the balance sheet. We continue to have very proactive dialogues with credit agencies. We're also fully aware of their expectations and the sensitivities. Also, as part, you saw our actions of navigating the cycle. We proactively renegotiated a net debt-to-EBITDA covenant on our RCF in September from 3.5 multiple to 4.5 turns, and that through 2027. These are activities that build trust with the rating agencies. The last point I want to make is safe and reliable operations. Sustaining CapEx remains a core priority for us. We're not making, we're not short-cutting, we're not putting. Safety and reliability in jeopardy. As we have transformed already our portfolio, it means that also moving forward, we can do with less. Safe and reliability, so sustaining CapEx.

The third point is our investment rate balance sheets remains, of course the foundation of our Capital allocation strategy.

So also as parts you saw our actions of navigating the cycle, we proactively renegotiated the net debt to EBITDA covenants on our Rcs in September from three 5 million.

Multiple to four five turns in that through 2027 and that's of course also these are activities that build trust with the rating agencies and the last point I want to make is safe.

You all know, I mean that investment great makes it cheaper to do business, avoids. I mean, having to make dramatic changes to our strategy or portfolio to address. I mean, the balance sheet and we continue to have very proactive dialogues with credit agencies. We are also fully aware of their expectations and the sensitivities.

Safe and reliable operations and a sustaining capex remains a core priority for us So we're not making we're not.

Short cutting we're not putting safety and reliability.

<unk>.

But as we have transformed already over portfolio.

So, also, as part of our actions navigating the cycle, we proactively renegotiated the debt to Abbott of covenants on our RCF in September from a 3.5 multiple to 4.5 turns through 2027. And that's, of course, also, these are activities that build trust with the rating agencies. And the last point I want to make is.

It means that also moving forwards we can do with less.

Safe and reliability, so sustaining capex.

Safe and reliable operations remain a core priority for us, so we're not making any compromises on sustaining capital expenditures.

And the last element is progressing as we sit very well in that portfolio management and that is the exits of the four sites to sale that we have.

We're not shortcutting; we're not putting, um, safety and reliability, uh, in go.

Uh, but as we have transformed already over portfolio.

Asset, we're very goods involvements of equity.

In the entire process.

Peter Vanacker: The last element is progressing, as we said, very well in that portfolio management. That is the exit of the four sites, the sale that we have. As said, with very good involvement of Equita in the entire process. They are very committed. We continue to believe that we will be able to close in the first half of 2026. That, of course, will continue to free up CapEx for LyondellBasell Industries NV. Thank you. Our next question comes from the line of Jeff Zekauskas with JPMorgan. Please proceed with your question. Thanks very much. Your CapEx number for next year that you project, $1.2 billion, is below your depreciation and amortization. Are there any growth projects that are left in the capital budget for next year? If there are, which ones?

Uh, it means that also moving forwards. Uh we can do with less uh safe and reliability so sustaining capex.

They are very committed.

So therefore, we continue to believe that we will be able to close in the first half of 2026 and that of course will continue to free up capex.

<unk>.

Thank you. Our next question comes from the line of Jeff Zekauskas with Jpmorgan. Please proceed with your question.

And the last element is progressing, as we said, uh, very well in that portfolio management. And that is the exit, um, of the four sides, the sale that we have, um, as said with very good involvement of Equita in the entire process. Um, they are very committed.

Thanks very much.

Your capex number for <unk>.

And next year that you project $1 2 billion.

Um, so therefore, um, we continue to believe that we will be able to close in the first half of 2026, and that, of course, will continue to free up capex for LYB.

Is below your depreciation and amortization.

Are there any growth projects that are left.

Thank you. Our next question comes from the line of Jeff Zakas with JP Morgan. Please proceed with your question.

And the capital budget for next year and if there are more.

One.

Uh, thanks very much. Uh, your capex number for...

And for Augustine.

Do you expect your accounts payable to be very different in the fourth quarter than they were in the third quarter.

Next year, we project $1.2 billion.

Thank you Jeff for your question, let me take the first parts and then I will hand over to <unk> to take the second part.

Peter Vanacker: For Agustin, do you expect your accounts payable to be very different in the fourth quarter than they were in the third quarter? Thank you, Jeff, for your question. Let me take the first part, and then I will hand over to Agustin to take the second part. If you remember well, we have been investing quite above depreciation during the last at least four or five years. That gives us opportunities because we are not fully leveraging those opportunities yet because of where the market today is. Let me remind you that we have our Hyperzone that was standing for $170 million per year improvements. We're ramping it up. We do some additional smaller investments in Hyperzone to make it further reliable. We do the investment in assets, reliability, and the debottlenecking, the new technology, standing for $75 million. All of that, of course, mid-cycle margins.

If you remember well then.

Uh is below your depreciation and amortization um um. Are there any growth projects that are left um in the capital budget for next year? And if there are um which ones and for August

We have been investing.

Quite above depreciation during the last at least.

Do you expect your accounts payable to be very different in the fourth quarter than they were in the third quarter?

Four to five years.

And that gives us opportunities because we're not fully leveraging those.

Thank you, Jeff, for your question. Let me, uh, take the first part, um, and then I will hand over to Agustin to take the second part.

Those opportunities yet because of where the market today is.

Um, if you remember well, I mean, then, uh, we have been investing.

Let me remind you.

That we have met our hypersound.

Notwithstanding for $170 million per year improvements.

Quite above. I mean depreciation during, uh, the last at least, uh, 4 or 5 years.

um,

We are ramping it up we do some additional smaller investments in hypersound, so to make it very further reliable.

and that gives us opportunities because we are not fully leveraging upon those opportunities yet because of where the market today is,

We do the investment and asset reliability.

The debottlenecking, the new technology standing for a $75 million all of that of course mid cycle margins or.

Uh, let me remind you um that we have our hyper Zone.

That was standing for $170 million per year improvements.

Our <unk> continues to progress, which is signing for about $25 million plus per year in EBITDA.

We're ramping it up. We do some additional smaller investments in hyper zones, so, to make it very further, reliable.

<unk>, we have progressed it up to a point, where we said okay. We will see how the market further develops but we can activate it relatively quickly.

Peter Vanacker: Our MoReTec One continues to progress, which is standing for about $25 million plus per year in EBITDA. MoReTec Two, we have progressed it up to a point where we said, "Okay, we will see how the market further develops," but we can activate it relatively quickly if the market develops further, and in addition to that, if it also fits from a cash perspective. POTBA, as you know, standing for $450 million, mid-cycle margin. We've worked on capacity creep, which adds another $50 million on top of that $450 million. We've done productivity improvements in our POSM, $25 million. APS. Even if the market is very challenging, we continue to make very good progress. We've invested in NetPat. We're still working on the second phase. Remember, we've launched, I mean, about three years ago our value enhancement program.

If the market develops further and in addition to that if we also if it fits from a cash.

Um, we do the investment in assets reliability and, um, the debottlenecking the new technology standing for $75 million. All of that, of course, mid-cycle margins.

Perspective.

Our MR1 continues to progress, which is standing for about $2,500 plus per year in Aveda.

<unk> as you know, we're standing for $450 million mid cycle margin.

Worked on capacity creep.

Um, mrt2, we have progressed it up to a point where we set. Okay, we will see. I mean, how the market further develops, but we can activate it relatively quickly.

Which adds another $50 million on top of that $450 million.

We've done productivity improvements in our Apio is M <unk>.

Um, if the market develops further, and, in addition to that, if we also, um, if it fits from a cash perspective.

25 million Aps.

Even if the market is very challenging we continue to make very good progress we have invested a net pets, we're still working on the second phase.

A, as you know, was standing for $450 million, uh, mid-cycle margin.

And remember we've launched them in about three years ago or value enhancement program, we're well on track to exceed the $1 billion exit run rate mid cycle market margin target for the end of 2025 of that real contribution is about 700, what we call in periods is $700 million.

We've worked, I mean, on capacity creep, um, which adds another $50 million on top of that $450 million.

We've done productivity improvements in our PSM.

25 million APS.

Even if the market is very challenging, we continue to make very good progress. We have invested in net pads, and we're still working on the second phase.

Up to the end of this year so the delta between the one five and the $700 million, which is about.

Peter Vanacker: We're well on track to exceed, I mean, the $1 billion exit run rate mid-cycle margin target for the end of 2025. Of that, a real contribution is about $700 million, so what we call end periods is $700 million, up to the end of this year. The delta between the $1.15 billion and the $700 million, which is about $450 million, is something we did not capture yet on one hand side because of future potential growth and on the other hand side because we are substantially below mid-cycle margin. If you add it all up, I think we have quite some impressive growth opportunities as the market continues, as the market returns back, let's say, and we hope that that will happen already in 2026, but definitely 2027, 2028, and beyond. With that, Agustin, the second part of the question.

450.

Million is something we did not capture yet on one hand side because of future potential growth and on the other hand side, because we are substantially below mid cycle margins. So if you add it all up I think we have some quite some impressive.

Growth opportunities.

And remember we've launched I mean about 3 years ago our value enhancement program were well on track to exceed. I mean the 1 billion exit run rate mid-cycle Market. Mar margin Target for the end of 2025 of that real contribution is about 700. So what we call end periods is 700 million um, up to the end of this year. So the Delta between the 1.15 and the 700 million which is about uh, 450

As the markets.

Continue.

As the market returns back, let's say and we hope that that will happen already in 2026, but definitely 2027 2008 and beyond so with that obviously in the second part of the question.

Uh, million is something we did not capture yet on one hand side because of future potential growth. And on the other hand side because we are substantially below mid-cycle margins. So if you added all up, I think we have quite some impressive.

Sure Jeff. Thank you for the question happy to answer I think is just consistent with the remarks on the comments on operating rates that we're expecting for Q4. It is also normal debt our payables will be lower probably in the neighborhood 40 50 lower versus what you saw in Q3.

[Analyst]: Sure, Jeff. Thank you for the question. Happy to answer. I think it's just consistent with the remarks and comments on operating rates that we're expecting for Q4. It is also normal that our payables will be lower, probably in the neighborhood of $40 million, $50 million lower versus what you saw in Q3. I would also highlight that we are expecting a working capital release in Q4 close to $1 billion. This is consistent also with the cash improvement plan, with all the very good measures we're taking throughout the year and not dissimilar actually to what we did during the fourth quarter of 2023. We know how to do this, and we will again be very focused on cash generation.

But I would also highlight that we are expecting a working capital release in Q4, it's close to $1 billion. This is consistent also with the cash improvement plan with very good measures, we're taking throughout the year and not this similar actually to what we did during the fourth quarter of 2024. So we know how to do this and we will again be.

A growth opportunity, as the market continues to return, let's say, and we hope that that will happen already in 2026, but definitely in 2027, 2028, and beyond. So with that, Augustine, the second part of the question.

Sure, Jeff. Thank you for the question; happy to answer. Um, I think it is just consistent with the remarks and comments on operating rates that we're expecting for Q4. It is also normal that our payables will be lower, probably in the neighborhood of 40-50% lower versus what you saw in Q3.

Very focused on cash generation.

Thank you. Our next question comes from the line of John Roberts with Mizuho Securities. Please proceed with your question.

Thank you.

When you sell or out license technology. The customer's plant starts up several years later and you noted noted the low activity currently but.

Um, but I would also highlight that we are expecting a working capital release in Q4 close to $1 billion. This is consistent with the cash improvement plan and all the very good measures we're taking throughout the year. This is similar, actually, to what we did during the fourth quarter of 2020. So we know how to do this, and we will again be very focused on cash generation.

Operator: Thank you. Our next question comes from the line of John Roberts with Mizuho Securities. Please proceed with your question.

You have your catalyst sales kind of lag that.

Thank you.

Our next question.

When do your catalyst sales peak and more importantly, when is the drop off then in the new startups of the companies that you've licensed out license to.

[Analyst]: Thank you. When you sell or out-license technology, the customer's plant starts up several years later, and you noted the low activity currently. You have your catalyst sales kind of lag that. When do your catalyst sales peak? More importantly, when is the drop-off in the new startups of the companies that you've licensed, out-licensed to?

John Roberts with Mizuho Securities. Please proceed with your question.

Thank you John very good detailed question.

I mean normally.

The catalyst sale.

Um, thank you. Um, when you sell or out-license technology, the customer's plant starts up several years later and, you know, not noted the low activity currently. But, um, you have your Catalyst sales kind of lag that, um, when do your Catalyst sales peak?

I wouldn't say it really peaks and then it drops down.

It's more dependent on the run rates of the asset so what youll see today is assets debt or buying or.

And more importantly, when is the drop-off? Then, in the new startups of the companies that you've licensed or out-licensed to?

Peter Vanacker: Thank you, John. Very good, detailed question. I mean, normally, the catalyst sale, I wouldn't say it really peaks and then it drops down. It's more dependent on the run rates of the assets. What you see today is assets that are buying our catalysts, like, for example, in China, when they run at minimum technical capacity, then, of course, the sales of catalysts are slower because you don't consume the catalysts as fast. If operating rates would go up, or, for example, if new investments and commons stream, then you would continue to see that our catalyst sale is going up.

Catalysts.

Like for example in China when they run at minimum technical capacity then of course, the sales of catalyst or slower because you don't consume to catalyst SaaS.

Uh, thank you, John. Uh, very good detailed question. Um, I mean normally, uh, the Catalyst sale, um, I wouldn't say really peaks, and then it drops down.

But as Dave operating rates would go up or for example of new investments in common stream. Then you would continue to see that or catalyst sale is going up we've done in the last couple of years I didn't mention that.

Uh, it's more dependent on, uh, the run rates, uh, of the asset. So, what you see today are assets, um, that are buying our, uh, catalysts. Uh, like for example, in China, when they run at minimum technical capacity, then, of course, the sales of catalysts are slower because you don't consume the catalyst as fast.

When answering the question of Jeff.

But of course during the last couple of years, we had done some investments on Debottlenecking also on the catalyst sites to be prepared if the market picks up then we would be able of course also to then.

Peter Vanacker: We've done in the last couple of years, I didn't mention that when answering the question of Jeff, but, of course, during the last couple of years, we had done some investments, some de-bottlenecking also on the catalyst side, to be prepared if the market picks up, then we would be able, of course, also to then produce and sell those catalysts.

Produce and sell those catalysts.

Thank you.

Next question comes from the line of Frank Mitsch with Fermium Research. Please proceed with your question.

Alright, Thank you so much and happy Halloween everyone.

Uh, but as if operating rates would go up, um, or for example, if new investments and, uh, comment stream, then you would continue to see, uh, that our catalyst sale, uh, is going up. We've done in the last couple of years. I didn't mention that, um, when answering the question of Jeff, but of course, um, during the last couple of years we had done some, uh, investments on the bottlenecking also on the catalyst site, uh, to be prepared. If the market picks up, then we would be able, of course, also to then, uh,

Peter.

I'll comment and then I'll comment on a question my comment or.

Produce and sell those catalysts.

Just to summarize your thoughtful response on the dividend is that yes, we will pay in the near term if I am I interpreting that correctly and then secondly from a high level perspective looking at the fourth quarter, you outlined $110 million sequential headwind.

Operator: Thank you. Our next question comes from the line of Frank Mitsch with Fermium Research. Please proceed with your question.

Thank you.

[Analyst]: Thank you so much, and happy Halloween, everyone. Peter, a comment and a question. My comment, or, I guess to summarize your thoughtful response on the dividend is that yes, we will pay it in the near term, if I am interpreting that correctly. Secondly, from a high-level perspective, you know, looking at the fourth quarter, you outlined $110 million sequential headwinds from turnarounds. Obviously, we'll layer in some seasonality that's typical in the fourth quarter. Are there any other material puts and takes that we should be aware of looking at the fourth quarter relative to the third quarter?

Research. Please proceed with your question.

Uh, thank you so much and happy Halloween, everyone.

From turnarounds Odyssey.

Obviously, we'll layer in from seasonality.

That is typical in the fourth quarter or any other material puts and takes.

That we should be aware of looking at the fourth quarter relative to the third quarter.

Thank you Frank and thanks for wishing is a nice Halloween.

Not going to tell you if we are having a halloween costumes here in our room.

To your first question.

Again, as I said snap on the FERC points.

And what Youll see from our actions in.

Peter Vanacker: Thank you, Frank, and thanks for wishing us a nice Halloween. I'm not going to tell you if we are having Halloween costumes here in our room. To your first question, again, as I said, now on the four points, and what you see from our actions in navigating the cycle, we have that very sharp focus on cash conversion. We have our cash improvement plan. We're proceeding very well in that. We have a strong balance sheet to start that we have started with, and it continues to be in very good shape. From our history, this is a fantastic team that is really focused on execution. The team has shown in the past that we are excellent in execution. From that perspective, that's what we are doing. Control the controllables, focus on the execution, and make sure that we continue to make progress.

Um, uh, uh Peter, a, a comment in a, a comment in a question. My commenter, uh, I, I guess to summarize your thoughtful response on the dividend is that, yes, uh, we will pay it in the near term if I and my interpreting that correctly and then secondly, from a high level perspective, you know, looking at the fourth quarter, you outlined uh, 110 million sequential headwinds, uh, from turnarounds, you know, obviously we'll layer in, uh, some seasonality. Uh, that's typical in the fourth quarter or any other material puts and takes, uh, that that we should be aware of looking at the fourth quarter relative, to the third quarter,

<unk> to cycle that we have that very sharp focus on cash conversion, we have our cash improvement plan, we're proceeding very well and that we have a strong balance sheet to start that we have started with and it continues to be in very good shape.

Thank you, and thanks for wishing us a nice Halloween. Um, I'm not going to tell you if we are having any Halloween costumes here in our room.

I know from our history I mean, this is a fantastic team.

That is really focused on execution.

The team has shown in the past that we are excellent in execution.

So from that perspective, that's what we are doing I mean control the controllable.

To your first question, um, again, as I said, now on the 4 Points, um, and what you see from our actions in, uh, navigating the cycle. We have that very sharp focus on cash conversion. We have our cash improvement plan. We're proceeding very well in that. We have a strong balance sheet to start that we have started with, and it continues to be in very good shape.

Focus on the execution.

And make sure that we continue to make progress.

Uh, and you know, I mean from our history, I mean this is a fantastic team.

So I don't know what else I mean that I should say I mean to do that I'm very pleased.

That is really focused. I mean, on execution.

Yeah, when I see I mean, how aligned everybody in the company is and hope everybody is doing its best diligently.

Peter Vanacker: I don't know what else I should say to that. I'm very pleased when I see how aligned everybody in the company is and how everybody is doing its best, diligently, by controlling the controllables. To your second question, Q4 outlook. You're right. When we looked at the market environment and we had some work that we wanted to do in Wesseling at OM6, some work that we had to do in Matagorda, and then also looking at acetyls and POSM and IND. We said, "Let's take the opportunity now. Let's do it now in Q4 instead of waiting until, I don't know, maybe the second half of 2026." Then we are ready, and we don't have a lot of these downtimes, with its respective impact on the bottom line for 2026. That's a decision that we took. As you rightfully recalled, what that delta is compared to Q3.

<unk>.

By controlling the controllable.

To your second question Q4 outlook.

Youre right I mean, we.

When we looked at the market environment, and we had some work that we wanted to do.

In wrestling at <unk>, some work that we.

Uh, the team has shown in the past that we are excellent in execution. Uh, so from that perspective, that's what we are doing. I mean, control the controllers, focus on the execution, um, and make sure that we continue to make progress. Yeah. So, uh, I don't know what else? I mean that I should say, I mean to to that I'm, I'm very pleased. Um, yeah, when I see, I mean, how aligned everybody in the company is and how everybody is doing its best, uh, diligently, uh,

By controlling the controllables.

<unk> had to do I mean and matagorda.

Um, to your second question, Q4 outlook.

And then also looking at asset sales and <unk>. So we said, let's let's take the opportunity now let's do it now in Q4 instead of.

Waiting.

Until I don't know, maybe the second half of 2026.

So then we are ready and we don't have a lot of these.

These down times with its respective impact on the bottom line for 2026. So that's a decision that we that we took on assets.

Rightfully recalls I mean, what that delta as compared to Q3.

We have polyethylene prices price increases on the table.

We of course continue to.

Look at everything what is happening in the market I mean, p/e polyethylene has grown.

Exports continue to be robust based upon.

Peter Vanacker: We have polyethylene price increases on the table. We, of course, continue to look at everything that is happening in the market. Polyethylene has grown. Exports continue to be robust, based upon low delivered cost positions that manufacturers, including ourselves, have in the Gulf Coast. We will continue to push for price increases because we believe it is appropriate that polyethylene prices go up. Too early to say if we will be successful, but it gets a lot of attention, of course. Maybe I want to hand over also to Aaron to talk a little bit about MTBE, raw material margins, seasonality, to give a little bit more color on that because October was very strong in his area.

You're right. I mean, we, when we looked at the market environment and we had some work, I mean that we wanted to do um uh in wrestling at om6. Some work that we um, had to do. I mean in in in Matagorda uh, and then also uh, looking at acetil and PM. And and so we said, let's let's take your opportunity now. Let's do it. Now in Q4 instead of, uh, uh, waiting, uh, until I don't know, maybe the second half of 2026. Um, so then we are ready and we don't have a lot of these down times uh, with its respective, impacts on the bottom line for 2026. So that's a decision that we that we took and has set. You rightfully recalled. I mean, what that Delta is compared to, I mean, to Q3

Low delivered cost position manufacturers, including ourselves have.

Um, we have probably in prices, uh, price increases on the table.

In the Gulf Coast.

So we will continue to of course pushing for price increases because we believe it is appropriate that polyethylene prices prices go up.

Too early to say, if we will be successful.

But it gets a lot of attention of course, maybe I want to hand over also to Aaron to talk a little bit about MTBE.

Um, we, of course, continue to look at everything. What is happening in the market? I mean, PE for the italeem has grown, uh, exports uh, continue to be robust, uh, based upon low delivered cost positions that manufacturers, including ourselves, have in the Gulf Coast.

Raw material margins seasonality to give a little bit more color on that because October was was very strong in his area.

Uh, so we will continue to, of course, uh push. I mean for a price increases uh because we believe it is appropriate that for you. In price prices, go up.

um,

It's too early to say if we will be successful.

Yeah. Thanks, Peter I appreciate the opportunity to talk a little bit about MTBE. So it has to your point been a really good start to the quarter with premiums carrying over from September into October as I mentioned in my planned remarks much of the third quarter benefit was from both planned and unplanned outages.

Aaron Ledet: Yeah, thanks, Peter. I appreciate the opportunity to talk a little bit about MTBE. It has, to your point, been a really good start to the quarter with premiums carrying over from September into October. As I mentioned in my planned remarks, much of the third quarter benefit was from both planned and unplanned outages, not only in the U.S. Gulf Coast but in the Atlantic Basin. As we've seen those premiums carry over into October, I just want to remind everyone that 20% of U.S. Gulf Coast capacity remains offline and should be back in operation maybe second half of November. It's still possible that we see positive premiums carry over into November in what we would usually say is a seasonally low quarter for oxyfuels margins.

Um, but it gets a lot of attention. Of course, maybe I want to hand over, also to Aaron uh to talk a little bit about uh mtbe um, raw material margins. Um seasonality to give a little bit more uh color on that because October was was very strong in his area.

Not only in the U S Gulf coast, but in the Atlantic Basin.

And as we've seen those premiums carryover in October I, just want to remind everyone that 20%.

U S Gulf coast capacity remains offline and should be back in operation, maybe second half of November. So it's still possible that we see positive premiums carryover into November and what we would usually say is a seasonally low quarter for oxy fuels margins.

Yeah, thanks Peter. I appreciate the opportunity to talk a little bit about MTB, so it, it has uh, to your point, a really good start to the quarter with premiums carrying over from September into October. Uh, as I mentioned in my plan remarks, uh, much of the third quarter benefit was from both planned and unplanned outages.

Let me have a look I mean also Europe I mean diesel cracks are very strong year with everything that is happening around Russia.

Gasoline is performing better I would point you to Ara gasoline inventories are materially lower than normally at that point in the cycle.

Peter Vanacker: Yep. I mean, have a look, also Europe, diesel cracks are very strong, with everything that is happening around Russia. Gasoline is performing better. I point you to ARA gasoline inventories. They're materially lower than normally at that point in the cycle. We're not done yet with our fixed cost reductions in our cash improvement plan. We've delivered very well in Q3. Of course, you will see more that is flowing in Q4 as well. If I take everything together, yes, there is an impact that we have from those decisions on the increased downtime in Q4, very deliberate decisions due to turnarounds, due to maintenance work now instead of postponing it or doing it as normally we would probably say we would do it in 2026 somewhere.

And we're not done yet with our fixed cost reductions in our cash improvement plan, we have delivered.

Not only in the U.S. Gulf Coast, but in the Atlantic Basin, as we've seen those premiums carry over in October, I just want to remind everyone that 20% of U.S. Gulf Coast capacity remains offline and should be back in operation maybe in the second half of November. So it's still possible that we see positive premiums carry over into November in what we would usually say is a seasonally low quarter for oxy fuels margins.

Very well.

In Q3.

But of course, you will see more that is flowing in Q4 as well.

So if I take everything together, yes, I mean, there is an impact that we have from that those decisions.

And I mean, have a look. I mean, also Europe. I mean, diesel cracks are very strong. Yeah. With everything that is happening around Russia, um, yeah, gasoline is performing better. I would point you to ARA gasoline inventories. They are materially lower than normally at that point in the cycle.

On the increased downtime in Q4, very deliberate decisions due to turnarounds due to maintenance work now instead of postponing it or doing it.

Uh, and we're not done yet with um, our fixed cost reductions in our cache Improvement plan, we've delivered uh, very well in in Q3. Uh but of course uh you will see more uh, that is flowing in in Q4 as well.

Normally we would probably say we would do it in 2026 somewhere.

Thank you.

Question comes from the line of Matt Deyoe with Bank of America. Please proceed with your question.

Yes, there is some other channel filling in for Mark.

I wanted to ask a couple of the slides where you. So what are your show.

Do it in 2026 somewhere? Yeah.

Operator: Thank you. Our next question comes from the line of Matthew Blair with Bank of America. Please proceed with your question.

Already happened in April projected ethylene capacity closures in <unk>.

Firstly.

Kind of you can you discuss how many of these have already happened in prior years before 2024, because I believe that now since these goes back to 2020.

Thank you. Our next question comes from the line of Matt Dio with Bank of America. Please proceed with your question.

[Analyst]: Yes, thank you, Lisa Valerciano filling in for Matt. I want to ask about the slide where you show already happened and projected ethylene capacity closures. Firstly, can you discuss how many of these have already happened in prior years before 2024? I believe the notes say this goes back to 2020. For both ethylene as well as polyethylene, can you talk about where operating rates are today? Essentially, how important would the incremental closures be from today rather than just focus on the 2020 to 2024 period?

But for both ethylene as well as polyethylene can you talk about where operating rates are today, essentially how important it would be incremental closures be from today, rather than just folks from the 2020 to 2024 period.

Let me give it a first shot Matt. Thank you for your question.

Uh, yes, thank you. This is, um, I want to ask about the slide where you saw, where you saw, um, car, uh, already happened and a projected ethylene capacity closures. And, uh, firstly, um, can you discuss how many of these have already happened in prior years before 2024? Because I believe the notes say this goes back to 2020.

If I look at the closures and the announcements that have been made.

So far.

It's somewhere lets say in the ballpark of $9 5 million tons of ethylene capacity.

For both ethylene as well as polyethylene, can you talk about where operating rates are today? Essentially, how important would the incremental closures be from today rather than just focusing on the 2020 to 2024 period?

Peter Vanacker: Let me give it a first shot, Matt. Thank you for your question. If I look at the closures and the announcements that have been made so far, it's somewhere, let's say, in the ballpark of 9.5 million tons of ethylene capacity. There are still things that have been communicated, that have been talked about, that we would expect to see to come up with that 21 million tons. Again, on the 21 million tons, especially also on regions where these assets are not very competitive, like in Europe, for example, even if there is 20% of ethylene capacity that we expect to disappear based upon the announcements, we don't believe that we are at the end of all the announcements yet. We still expect there will be more to come.

There is still.

Things that have been communicated that have been talked about.

That we would expect to see to come up with that 21 million tonnes.

Let me give you the first shot, Matt. Thank you for your question. Um, if I look at the closures and the announcements that have been made.

um, so far

D.

And again on the 21 million tonnes, especially also on regions, where these assets are not very competitive like in Europe for example.

It's somewhere in the ballpark of 9.5 million tons of Italy in capacity. So there's...

Even if there is 20% of ethylene capacity.

Things that have been communicated that have been talked about, um, that we would expect to see come up with that 21 million tons.

Um,

<unk> that we expect to disappear based upon the announcements we don't believe that we are at the end of all the announcement yet we still expect there will be more to come.

The.

Yeah, I think the simple answer and the reason that we created this chart. The way that we did is said that you know what is closed today because so many people are announcing closures in the future and then there's this anticipation. So I'll also go back to some of the comments that Peter made in his prepared remarks.

And again, on the 21st, especially also on regions where it's, uh, these assets are not very competitive. Like in Europe, for example, even if there is 20% of Italy in capacity, uh, that we expect to disappear based upon the announcements, we don't believe that we are at the end, um, of all the announcements yet. We still expect there will be more to come.

Operator: I think the simple answer and the reason that we created this chart the way that we did is so that you know what is closed today, because so many people are announcing closures in the future. There is this anticipation. I will also go back to some of the comments that Peter made in his prepared remarks. You know, you'll notice, for example, in China, we don't show any anticipated closures, yet we all are hearing comments every day about anti-evolution and what that will be and whether you believe the criteria about 300 KT plants in 20 years or some of the new evolving criteria that is being discussed in China now. You have the potential for another 4 to 8 million metric tons that comes out there. The last comment that I want to reiterate is this domino effect. A lot of these are ethylene cracker announcements.

<unk>.

You'll notice for example in China, We don't show any anticipated closures yet we all are hearing comments everyday about anti involution in what that will be and weather.

Can. Yeah, yeah. I think that the

Sports are and the reason that

You believe the criteria of about 300 K T plants in 20 years are some of the new evolving.

Criteria that is being discussed in China now.

You have the potential for another four to 8 million metric tons that comes out there and then the last comment that I want to reiterate is this domino effect you know a lot of these are ethylene cracker announcements. So now the feedstocks are coming out of these derivatives and industrial parks and it leaves a lot of ambiguity around.

What is closed today because so many people are announcing closures in the future and then there's this anticipation? So I will also go back to some of the comments that Peter made in his prepared remarks. Um, you know, you'll notice, for example, in China. We don't show any anticipated closures yet. We all are hearing comments every day about anti-invasion and what that will be. And whether you, you know, you believe the criteria about 300 KT plants and 20 years or some of the new evolving, uh, criteria that is being discussed in China. Now,

Whats the steam provider is going to do what's the natural gas provider going to do is they're still going to be an economic situation for all parties involved in the complex. So I do believe Theres dominoes that we will also see and I want to point out to your second question on operating rates I mean, we need to differentiate.

Operator: Now the feedstocks are coming out of these derivatives and industrial parks, and it leaves a lot of ambiguity around what the steam provider is going to do, what the natural gas provider is going to do, and if this is still going to be an economic situation for all parties involved in the complex. I do believe there are dominoes that we will also see.

You have the potential for another 4 to 8 million metric tons that come out there. And then the last comment that I want to reiterate is this domino effect. You know, a lot of these are ethylene cracker announcements. So now the feedstocks are coming out of these derivatives and industrial parks, and it leaves a lot of ambiguity around.

That's a key message.

One of the first questions because low cost delivered assets are running at very high capacity at this point in time.

Peter Vanacker: I want to point out to your second question on operating rates. We need to differentiate, yeah? That's a key message that I had in one of the first questions because low-cost delivered assets are running at very high capacity at this point in time, yeah, because they are competitive. If you look at European capacities, if you look at Chinese capacities, then there, I would say, yeah, they are running at minimum technical capacity. That may be 70%, 75%, some of them minimum technical capacity if they don't have the flexibility is close to 80%. That's the scenario that you see unfolding during the entire year 2025. That's what you would expect.

Because they are competitive.

If you look at European capacities, if you look at Chinese capacities, then there I would say, yes, they are running at minimum technical capacity. So.

That maybe 70%, 75% some of them minimum technical capacity if they don't have the flexibility is close to 80%, but that's the scenario that you see unfolding during the entire year of 2025 and Thats, what you would expect.

Yeah, because they are competitive.

Also.

In a markets where supply and demand is not balanced is at the low cost delivered capacities will continue to make good returns.

Create good cash flow and run at maximum capacity whereby the other ones are either forced to consolidate to idle to shut down our run a technical minimum capacity.

Peter Vanacker: Also, in a market where supply and demand is not balanced, the low-cost delivered capacities will continue to make good returns, create good cash flow, and run at maximum capacity, whereby the other ones are either forced to consolidate, to idle, to shut down, or run at technical minimum capacity.

If you look at European capacities, if you look at Chinese capacities, then there I would say. Yeah, they are running at minimum technical capacity so that may be 70%, 75%, some of them, minimum technical capacity. If they don't have the flexibility is close to 80%, but that's the scenario that you see unfolding, um, during the entire year 2025, and that's what you would expect also, um, in a market where supply and demand

Thank you. Our final question. This morning will come from the line of Vincent Andrews with Morgan Stanley. Please proceed with your question.

Hi, This is Turner henricks on for Vincent.

I'm wondering if you all can help provide some thoughts on the bridge to 2026 in India. Specifically there are some items that we may need to level set for including sizable U S. Propylene oxide closure potential headwinds wins to octane cracks from our refinery in Nigeria, assuming the rates returned high levels.

And, um, it is not balanced. The low-cost delivered capacities will continue to make good returns, create good cash flow, and run at maximum capacity. However, the other ones are either forced to consolidate, idle, shut down, or run at a technical minimum capacity.

Operator: Thank you. Our final question this morning will come from the line of Vincent Andrews with Morgan Stanley. Please proceed with your question.

[Analyst]: Hi, this is Turner Hendricks on for Vincent. I'm wondering if you all can help provide some thoughts on the bridge to 2026 in IND. Specifically, there are some items that we may need to level set for, including sizable U.S. propylene oxide closure, potential headwinds to octane cracks from a refinery in Nigeria, assuming the rates return to high levels, reversal of this year's acetyls turnarounds for you all, and U.S. Gulf Coast competitor capacity coming back online in MTBE. It'd be great to hear some thoughts.

Thank you. Our final question. This morning will come from the line of Vincent Andrews with Morgan Stanley. Please proceed with your question.

Reversal of this year's Seattle's turnarounds for you all and U S. Gulf Coast competitor capacity coming back online in MTBE it'd be great to hear some thoughts.

Yes, a question for you.

Thank you for the final question.

So maybe I'll point to a few different comments and we have reason for optimism as we look to 2026 I'll start with <unk>.

Rationalization to your point, 10% of global capacity has been announced to come offline in the last 12 months and so on the the primary regions that we serve we're already seeing market share improvement, particularly in the U S and in Europe, you spoke to asset sales that's in <unk>.

They need to level set for including a sizable U.S. propane oxide closure potential, headwinds to octane cracks from a refinery in Nigeria, assuming the rates returned to high levels, a reversal of this year's acetals turnarounds for you all, and U.S. Gulf Coast competitor capacity coming back online and MTBE. It'd be great to hear some thoughts.

Peter Vanacker: Aaron, yeah.

[Analyst]: Question for you.

Peter Vanacker: Thank you for the final question. Maybe I'll point to a few different comments, and we have reason for optimism as we look to 2026. I'll start with PO rationalization to your point. 10% of global capacity has been announced to come offline in the last 12 months. In the primary regions that we serve, we're already seeing market share improvement, particularly in the U.S. and in Europe. You spoke to acetyls. You know, that's an investment that we've been waiting to make really at this level since COVID. We've been pushing capital out and waiting to invest in the asset. The investment that we're making, we do expect it not only to show in terms of improvement from reliability, but we'll also see additional capacity coming out of our acid unit next year.

<unk> that we've been waiting to make really.

This level since Covid, we've been pushing capital out and waiting to invest in the asset.

The investment that we're making we do expected not only to show in terms of improvement from reliability, but we'll also see additional capacity coming out of our acid unit next year.

I already mentioned in my planned remarks from a TBA capacity perspective, we've demonstrated that we can run beyond benchmark rates, a little less than 10% in and remember that's capex free capacity. So I'd say that's combine all three of those and Thats. The reason why I look to 2026.

Peter Vanacker: I already mentioned in my planned remarks from a POTBA capacity perspective, we've demonstrated that we can run beyond benchmark rates a little less than 10%. Remember, that's CapEx-free capacity. I'd say, combine all three of those, and that's the reason why I look to 2026 and have some optimism.

Yeah, the question for you yeah. Thank you. Thank you for the final question. Um, so maybe I'll I'll point to a few different comments and and we have reason for optimism as we look to uh, to 2026, I'll start with P rationalization to your point. 10% of global capacity has been announced to uh, to come offline in the last 12 months. Uh, and so, in the, the primary regions that we serve were already seeing market share Improvement, uh, particularly in the US and in Europe, uh, you spoke to acetals, you know, that's an investment that we've been waiting to make really, uh, at this level since Co we've been pushing Capital out and waiting, uh, to invest in the asset. Um, but the, the investment that we're making, we do expect it. Not only to, to show, uh, in terms of improvement from reliability, but we'll also see additional capacity coming out of our acid unit next year.

And have some optimism.

Thank you.

A question and answer session I will turn the floor back to Mr. <unk> for any final comments.

Thank you again for all your thoughtful questions let me.

Make some final comments.

Our sharp focus on cash conversion or cash improvement plan and our strong balance sheet is allowing us to successfully navigate through this prolonged downturn and our execution track record clearly demonstrates our progress.

Um, I already mentioned in my plan remarks from a ptba capacity perspective. Uh, We've demonstrated that we can run Beyond Benchmark rates, a little less than 10%. And, and remember that's capex free capacity. So I I'd say, you know, that's combine all 3 of those. And that's the reason why I Look to 2026 and and have some optimism.

Operator: Thank you. That concludes our question and answer session. I'll turn the floor back to Mr. Vanacker for any final comments.

Peter Vanacker: Thank you again for all your thoughts, for questions. Let me make some final comments. Our sharp focus on cash conversion or cash improvement plan and our strong balance sheet is allowing us to successfully navigate through this prolonged downturn. Our execution track record clearly demonstrates our progress. We've captured some of the value from our past investments in the new POTBA facility, HyperZone PE, the NetBed Joint Venture, and our value enhancement program. These investments will provide further upside as markets recover. In addition, with our ongoing investments in MoReTec One and our acetyls technology, LyondellBasell Industries NV is well positioned to capture market growth and create additional durable long-term value for our shareholders. Over the past three and a half years, we've actively managed our business portfolio, and we are progressing well with the execution of our European strategic assessment.

Thank you. That concludes our question and answer session, I'll turn the floor back to Mr. Vanner for any final comments,

We've captured some of the value from our past investments in the new TBA facility high Brazilian P/e, the netback joint venture and our value enhancement program. These investments will provide further upside as markets recover in addition, with our ongoing investments in more to take one and our acetyl.

Thank you again for all your thoughts and questions. Uh, let me...

um, make some final comments.

Or a sharp for focus on cash conversion or cash Improvement plan. And our strong balance sheet is allowing us to successfully navigate through this prolonged downturn, and our execution track records. Clearly demonstrates our progress.

Technology, <unk> is well positioned to capture market growth and create additional durable long term value for our shareholders.

Over the past three and a half years, we've actively managed our business portfolio and we are progressing well with the execution of our European strategic assessment. Upon completion, we will have established a much more focused industry, leading low cost model.

And we're finding some tail wins for $2026 2027.

We've captured some of the value from our past investments in the new potba, facility. Hyper Zone. PE the netbet joint venture and our value enhancement program. These investments will provide further upside as markets recover and addition with our ongoing investments in more Tech 1 and our asset sales. Technology lyb is well positioned to capture market growth, and create additional durable. Long-term value for our shareholders.

Monetary policy is becoming more accommodative for the industrial economy.

Peter Vanacker: Upon completion, we will have established a much more focused industry-leading low-cost model. We're finding some tailwinds for 2026 and 2027. Monetary policy is becoming more accommodative for the industrial economy. LyondellBasell Industries NV is prepared. After several years of heavy maintenance, we expect next year we will have less downtime, and our smaller footprint will require less sustaining capital to support our results over 2026 and 2027. We hope that you all have a great weekend and a great Halloween. Stay well and stay safe. Thank you.

<unk> is prepared after several years of heavy maintenance. We expect next year, we will have less downtime and our smaller footprint will require less sustaining capital to support our results over 'twenty six 'twenty seven.

Over the past 3.5 years, we've actively managed our business portfolio, and we are progressing well with the execution of our European strategic assessment. Upon completion, we will have established a much more focused, industry-leading, low-cost model.

And we are finding some Tailwinds for 2026 and 2027.

We hope that you all have a great weekend and a great Halloween stay well and stay safe. Thank you.

Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.

Monetary policy is becoming more accommodative for the industrial economy and lyb is prepared. After several years of heavy maintenance, we expect next year, we will have less downtime and our smaller Footprints will require less sustaining Capital to support our results over 26 and 27.

Operator: Thank you. This concludes today's conference.

We hope that you all have a great weekend and a great Halloween stay well and stay safe. Thank you.

Peter Vanacker: Thank you.

Operator: You may disconnect your lines at this time. Thank you for your participation.

Thank you, this concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.