LyondellBasell Posts $758 Million Quarterly Profit On Oxyfuels, Agrees To Sell Shuttered Houston Refinery
The chemicals maker swung from an $890 million loss a year earlier as fuel additives offset weaker polymer margins, and it set a $320.5 million refinery sale.
LyondellBasell, which makes plastics and chemicals that other manufacturers turn into packaging, car parts and paints, reported third-quarter net income of $758 million, or $2.32 per diluted share, against an $890 million loss a year earlier. Separately, it agreed to sell its shuttered Houston refinery business to a Valero Energy subsidiary for $320.5 million, according to an 8-K filed Friday.
Oxyfuels carry the quarter
Excluding identified items such as site closure costs, net income was $828 million, or $2.54 per share. That compares with $330 million, or $1.01 per share, a year earlier, but trails the second quarter's $1.401 billion, or $4.30 per share.
The Intermediates and Derivatives segment drove the profit. Its EBITDA, a measure of earnings before interest, taxes, depreciation and amortization, rose to $720 million from $377 million in the second quarter. Oxyfuels, fuel additives blended into gasoline, added about $350 million, split equally between stronger gasoline crack spreads and higher volumes after the Bayport site restarted following a second-quarter outage.
CEO Peter Vanacker said the strength of the oxyfuels business and "materially higher Intermediates & Derivatives profitability" showed the benefits of a diversified portfolio.
Polymer profits slide
Olefins and Polyolefins-Americas EBITDA fell to $641 million from $1.183 billion in the second quarter, on lower polymer and olefin prices. The company said integrated polyethylene margins still ended the quarter about 50% above 2025 levels.
In Europe, Asia and International, polymer prices fell and volumes dropped after the May sale of certain European assets. Advanced Polymer Solutions EBITDA slipped to $37 million from $77 million on weaker automotive demand.
Operating cash flow was $1.7 billion, including a release of working capital. LyondellBasell repaid a €500 million note, paid $224 million in dividends and ended the quarter with $3.2 billion in cash and $7.7 billion of available liquidity.
Selling the Houston refinery
The refinery buyer is acquiring Houston Refining, L.P., which owns the former refinery site and related assets. LyondellBasell shut refining operations there in February 2025 and has reported the business as a discontinued operation. The sale is expected to close in the fourth quarter of 2026.
For the fourth quarter, the company expects operating rates of 85% for North American olefins and polyolefins assets, 60% for European ones and 75% for Intermediates and Derivatives assets, citing planned maintenance at a North American polypropylene asset.
LyondellBasell hosted its earnings call at 11 a.m. EDT Friday, with the refinery sale due to close in the fourth quarter of 2026.
