LyondellBasell Navigates Challenging Times with Strong Safety Performance and Strategic Portfolio Management
LyondellBasell, a leading chemical company, reported strong safety performance in its first quarter 2025 results. Despite challenging and volatile market conditions, the company's team demonstrated exceptional resilience and commitment to executing its strategy.
In his opening remarks, Peter Vanacker, Chief Executive Officer of LyondellBasell, highlighted the importance of safety in the company's operations. "Our operational success starts with our core focus on safety," he said, noting that the company had achieved a March year-to-date total recordable incident rate of 0.12, an improvement over previous years.
Under Vanacker's leadership, LyondellBasell has been actively reshaping its portfolio to adapt to changing market conditions and uncertainty. In recent years, the company has sold several non-core assets, including Italian polypropylene assets, the EO&D business, and refining operations. These divestitures have resulted in approximately $300 million of annual fixed cost reductions, net of one-time costs.
The company's value enhancement program (VEP) continues to deliver value to the bottom line, with a target of unlocking $1 billion in recurring annual EBITDA by the end of 2025. A significant portion of this will come from fixed cost reductions, including an additional $50 million expected from the remaining five assets under review as part of the European strategic review.
LyondellBasell has also demonstrated responsible cash management and capital deployment. The company managed its capital expenditures wisely throughout the cycle, with spending in 2024 approximately $300 million below guidance. Additionally, proactive working capital management delivered a cash inflow of $100 million in 2024.
Kim Foley, Executive Vice President of Global Olefins and Polyolefins and Refining, noted that the company's focus on executing its strategy and adapting to changing market conditions has enabled it to navigate challenging times. Aaron Ledet, EVP of Intermediates and Derivatives, highlighted the importance of LyondellBasell's proactive approach to working capital management.
Torkel Rhenman, EVP of Advanced Polymer Solutions, commented on the company's commitment to delivering value through its VEP and strategic portfolio management. The company's financial results reflect its dedication to responsible cash management and capital deployment.
