Fri, Apr 25, 4:19 PM (24 days ago)
**LyondellBasell Industries N.V. (LYB) Q1 2025 Financial Performance Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $7,677 million, down 8% from Q1 2024 ($8,304 million) and down 2% from Q4 2024 ($7,808 million). The decrease was driven by lower volumes and unfavorable foreign exchange impacts, partially offset by higher average sales prices. - **Profit Margins:** Operating income was $114 million in Q1 2025, a significant improvement from a loss of $597 million in Q4 2024, but down from $651 million in Q1 2024. The improvement was due to the absence of impairment charges and better margins in some segments. - **Net Income:** Net income was $177 million in Q1 2025, up from a loss of $603 million in Q4 2024, but down from $473 million in Q1 2024. The improvement was due to better operating income and lower impairment charges. - **Cash Flow:** The company used $579 million in cash from operating activities in Q1 2025, primarily due to a build-up in working capital. Capital expenditures were $483 million, and the company returned $543 million to shareholders through dividends and share repurchases. **Segment Performance:** - **Olefins and Polyolefins-Americas (O&P-Americas):** EBITDA decreased due to lower margins driven by higher feedstock costs. - **Olefins and Polyolefins-Europe, Asia, International (O&P-EAI):** EBITDA improved due to the absence of impairment charges and better margins. - **Intermediates and Derivatives (I&D):** EBITDA decreased due to shutdown costs and lower margins. - **Advanced Polymer Solutions (APS):** EBITDA increased due to higher margins and the absence of impairment charges. - **Technology:** EBITDA decreased due to lower licensing results. **Trends and Uncertainties:** - The company expects seasonal demand improvements in Q2 2025, with moderating feedstock costs and improved margins in some segments. - The company announced a Cash Improvement Plan targeting $500 million in annualized savings, including deferral of capital spending, reduction in working capital, and fixed cost reductions. - The company faces uncertainties related to macroeconomic volatility, regulatory changes, and global trade policies. **Future Operations Impact:** - The company plans to continue its capital allocation strategy, focusing on shareholder returns, debt repayment, and maintaining a strong investment-grade balance sheet. - The company will prioritize capital spending on maintenance and growth projects, with a focus on achieving its sustainability targets.