Company Reports

LyondellBasell is focused on making its existing portfolio more resilient by divesting assets in Europe. It’s also increasing its production presence in North America, where it mostly operates today due to access to cheap natural gas inputs. Lyondell converts that gas into higher-value commodity chemicals and plastics, which are typically price-linked to crude oil. Earnings move in tandem with this spread between natural gas and oil. The firm is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives. These products are building blocks for downstream chemicals and plastics. They also carry a wide array of end-market uses, such as packaging, automotive, construction, and fuel.

We are transferring coverage of BASF, Dow, and LyondellBasell, which are some of the largest global commodity chemical producers. These firms primarily create value by converting oil and natural gas liquids into higher-value plastics, polymers, foams, and additives for a wide range of end markets.

LyondellBasell reported another strong quarter in 2026, with EBITDA sequentially improving across all segments. The positive results reflected a mix of cost actions and strong pricing in polyethylene, which is being held up by supply shocks across the Middle East.

LyondellBasell is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives, including propylene oxide. These products are the building blocks for downstream chemicals and plastics used in industrial and consumer markets alike. Roughly 70% of LyondellBasell’s ethylene and polyethylene production capacity is in North America. Its total ethylene and propylene capacity is fairly evenly split between North American and international markets.

LyondellBasell is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives, including propylene oxide. These products are the building blocks for downstream chemicals and plastics used in industrial and consumer markets alike. Roughly 70% of LyondellBasell’s ethylene and polyethylene production capacity is in North America. Its total ethylene and propylene capacity is fairly evenly split between North American and international markets.

LyondellBasell's first-quarter results saw adjusted EBITDA up year over year, driven by the US-Iran conflict and the resulting supply shock, as well as the company's cost-reduction initiatives. Lyondell shares were up 2% at the time of writing as the market reacted to management's bullish outlook.

The US and Iran agreed to a two-week ceasefire as part of a broader negotiation to end the conflict, which included Iran reopening the Strait of Hormuz to shipping traffic. US chemicals stocks Celanese, Dow, Eastman, and LyondellBasell were down 1% to 12% at the time of writing.

US chemicals producer stocks ranged from down 1% to up 2% at the time of writing on March 2, following the closure of the Strait of Hormuz and the news that QatarEnergy is temporarily shutting down its natural gas production.

LyondellBasell is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives, including propylene oxide. These products are the building blocks for downstream chemicals and plastics used in industrial and consumer markets alike. Roughly 70% of LyondellBasell’s ethylene and polyethylene production capacity is in North America. Its total ethylene and propylene capacity is fairly evenly split between North American and international markets.

LyondellBasell shares rallied 4% on Feb. 20, following an announcement that the firm plans to cut the quarterly dividend by roughly half from $1.37 per share to $0.69. At the new rate, shareholders should receive $2.76 per share annually.

LyondellBasell shares fell 4% on Jan. 30, even as the company beat its free cash flow improvement target. The company's results reflected dour chemicals market conditions as profits fell substantially in 2025 from 2024.

LyondellBasell's third-quarter earnings continued to exhibit a global slowdown in commodity chemicals as profits were down versus the prior-year quarter. Lyondell shares were up 2% at the time of writing as the market reacted to positive free cash flow that exceeded dividends.

LyondellBasell is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives, including propylene oxide. These products are the building blocks for downstream chemicals and plastics used in industrial and consumer markets alike. Roughly 70% of LyondellBasell’s ethylene and polyethylene production capacity is in North America. Its total ethylene and propylene capacity is fairly evenly split between North American and international markets.

We've updated our midcycle Brent oil price assumption to $65 per Barrel from $60. Our long-term forecast marries our bullish in-house oil demand view with Rystad's supply projections.

LyondellBasell's second-quarter earnings exemplified our view of a commodity chemicals cyclical trough as adjusted EBITDA was down nearly 50% versus the prior-year quarter. Lyondell shares were down 6% at the time of writing as the market reacted to the weak results.

LyondellBasell is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives, including propylene oxide. These products are the building blocks for downstream chemicals and plastics used in industrial and consumer markets alike. Roughly 70% of LyondellBasell’s ethylene and polyethylene production capacity is in North America. Its total ethylene and propylene capacity is fairly evenly split between North American and international markets.

Since the US announcement of global tariffs on April 2, US chemicals stocks vastly underperformed the Morningstar US Total Return Index and Morningstar US Basic Materials Index, even after the US and China announced tariff reductions on May 12.

LyondellBasell reported lower profits due to reduced unit margins despite companywide volume growth. The company announced it will reduce capital expenditures, working capital, and fixed costs in response to a softening demand outlook. Lyondell shares were down slightly at the time of writing.

LyondellBasell is one of the largest petrochemical producers in the world, manufacturing ethylene, propylene, and myriad chemical derivatives, including propylene oxide. These products are the building blocks for downstream chemicals and plastics used in industrial and consumer markets alike. Roughly 70% of LyondellBasell’s ethylene and polyethylene production capacity is in North America. Its total ethylene and propylene capacity is fairly evenly split between North American and international markets.

President Trump announced sweeping tariffs that featured a minimum 10% tariff on all US imports, with only limited exceptions and higher rates for select countries. Most US-listed chemicals producers were down on the news.