filings.toolsItem 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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Item 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars, except earnings per share | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| Trade | $ | 7,503 | $ | 8,518 | $ | 15,031 | $ | 16,654 | |||||||||||||||
| Related parties | 155 | 160 | 304 | 328 | |||||||||||||||||||
| 7,658 | 8,678 | 15,335 | 16,982 | ||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||
| Cost of sales | 6,871 | 7,244 | 13,999 | 14,444 | |||||||||||||||||||
| Impairments | 32 | — | 32 | — | |||||||||||||||||||
| Selling, general and administrative expenses | 435 | 402 | 836 | 823 | |||||||||||||||||||
| Research and development expenses | 35 | 33 | 69 | 65 | |||||||||||||||||||
| 7,373 | 7,679 | 14,936 | 15,332 | ||||||||||||||||||||
| Operating income | 285 | 999 | 399 | 1,650 | |||||||||||||||||||
| Interest expense | (118) | (120) | (225) | (247) | |||||||||||||||||||
| Interest income | 21 | 37 | 51 | 78 | |||||||||||||||||||
| Gain on sale of business | — | 293 | — | 293 | |||||||||||||||||||
| Other income, net | 29 | 9 | 50 | 14 | |||||||||||||||||||
| Income from continuing operations before equity investments and income taxes | 217 | 1,218 | 275 | 1,788 | |||||||||||||||||||
| Income (loss) from equity investments | 7 | (19) | 8 | (46) | |||||||||||||||||||
| Income from continuing operations before income taxes | 224 | 1,199 | 283 | 1,742 | |||||||||||||||||||
| Provision for income taxes | 69 | 253 | 105 | 363 | |||||||||||||||||||
| Income from continuing operations | 155 | 946 | 178 | 1,379 | |||||||||||||||||||
| (Loss) income from discontinued operations, net of tax | (40) | (22) | 114 | 18 | |||||||||||||||||||
| Net income | 115 | 924 | 292 | 1,397 | |||||||||||||||||||
| Dividends on redeemable non-controlling interests | (1) | (1) | (3) | (3) | |||||||||||||||||||
| Net income attributable to the Company shareholders | $ | 114 | $ | 923 | $ | 289 | $ | 1,394 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Net income (loss) attributable to the Company shareholders — | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Continuing operations | $ | 0.47 | $ | 2.89 | $ | 0.53 | $ | 4.21 | |||||||||||||||
| Discontinued operations | (0.13) | (0.07) | 0.35 | 0.05 | |||||||||||||||||||
| $ | 0.34 | $ | 2.82 | $ | 0.88 | $ | 4.26 | ||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Continuing operations | $ | 0.47 | $ | 2.88 | $ | 0.53 | $ | 4.20 | |||||||||||||||
| Discontinued operations | (0.13) | (0.06) | 0.35 | 0.05 | |||||||||||||||||||
| $ | 0.34 | $ | 2.82 | $ | 0.88 | $ | 4.25 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net income | $ | 115 | $ | 924 | $ | 292 | $ | 1,397 | |||||||||||||||
| Other comprehensive income (loss), net of tax – | |||||||||||||||||||||||
| Financial derivatives | (35) | 49 | (6) | 50 | |||||||||||||||||||
| Defined benefit pension and other postretirement benefit plans | 2 | 4 | (4) | 7 | |||||||||||||||||||
| Foreign currency translations | 127 | (44) | 189 | (104) | |||||||||||||||||||
| Total other comprehensive income (loss), net of tax | 94 | 9 | 179 | (47) | |||||||||||||||||||
| Comprehensive income | 209 | 933 | 471 | 1,350 | |||||||||||||||||||
| Dividends on redeemable non-controlling interests | (1) | (1) | (3) | (3) | |||||||||||||||||||
| Comprehensive income attributable to the Company shareholders | $ | 208 | $ | 932 | $ | 468 | $ | 1,347 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
| Millions of dollars | June 30, 2025 | December 31, 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,700 | $ | 3,375 | |||||||
| Restricted cash | 4 | 13 | |||||||||
| Accounts receivable: | |||||||||||
| Trade, net | 3,083 | 3,121 | |||||||||
| Related parties | 122 | 171 | |||||||||
| Inventories | 4,568 | 4,658 | |||||||||
| Prepaid expenses and other current assets | 767 | 928 | |||||||||
| Assets held for sale | 832 | — | |||||||||
| Total current assets | 11,076 | 12,266 | |||||||||
| Operating lease assets | 1,506 | 1,467 | |||||||||
| Property, plant and equipment | 25,588 | 24,174 | |||||||||
| Less: Accumulated depreciation | (9,861) | (9,108) | |||||||||
| Property, plant and equipment, net | 15,727 | 15,066 | |||||||||
| Equity investments | 4,080 | 4,121 | |||||||||
| Goodwill | 1,677 | 1,561 | |||||||||
| Intangible assets, net | 572 | 577 | |||||||||
| Other assets | 714 | 688 | |||||||||
| Total assets | $ | 35,352 | $ | 35,746 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
| Millions of dollars, except shares and par value data | June 30, 2025 | December 31, 2024 | |||||||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt | $ | 495 | $ | 498 | |||||||
| Short-term debt | 119 | 119 | |||||||||
| Accounts payable: | |||||||||||
| Trade | 2,630 | 3,220 | |||||||||
| Related parties | 483 | 512 | |||||||||
| Accrued and other current liabilities | 1,950 | 2,356 | |||||||||
| Liabilities held for sale | 567 | — | |||||||||
| Total current liabilities | 6,244 | 6,705 | |||||||||
| Long-term debt | 11,211 | 10,532 | |||||||||
| Operating lease liabilities | 1,407 | 1,419 | |||||||||
| Other liabilities | 1,919 | 1,967 | |||||||||
| Deferred income taxes | 2,536 | 2,535 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable non-controlling interests | 114 | 114 | |||||||||
| Shareholders’ equity: | |||||||||||
| Ordinary shares, €0.04 par value, 1,275 million shares authorized, 321,627,610 and 323,889,832 shares outstanding, respectively | 19 | 19 | |||||||||
| Additional paid-in capital | 6,139 | 6,150 | |||||||||
| Retained earnings | 8,732 | 9,325 | |||||||||
| Accumulated other comprehensive loss | (1,353) | (1,532) | |||||||||
| Treasury stock, at cost, 18,794,888 and 16,532,666 ordinary shares, respectively | (1,628) | (1,500) | |||||||||
| Total Company share of shareholders’ equity | 11,909 | 12,462 | |||||||||
| Non-controlling interests | 12 | 12 | |||||||||
| Total equity | 11,921 | 12,474 | |||||||||
| Total liabilities, redeemable non-controlling interests and equity | $ | 35,352 | $ | 35,746 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, | |||||||||||
| Millions of dollars | 2025 | 2024 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 292 | $ | 1,397 | |||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
| Depreciation and amortization | 655 | 752 | |||||||||
| Impairments | 32 | — | |||||||||
| Amortization of debt-related costs | 5 | 5 | |||||||||
| Share-based compensation | 55 | 53 | |||||||||
| Equity investments— | |||||||||||
| Equity (income) loss | (8) | 46 | |||||||||
| Distributions of earnings, net of tax | 18 | 40 | |||||||||
| Deferred income tax benefit | (30) | (55) | |||||||||
| Gain on sale of business | — | (293) | |||||||||
| Changes in assets and liabilities that provided (used) cash: | |||||||||||
| Accounts receivable | (81) | (604) | |||||||||
| Inventories | (85) | (335) | |||||||||
| Accounts payable | (433) | 373 | |||||||||
| Other, net | (648) | (145) | |||||||||
| Net cash (used in) provided by operating activities | (228) | 1,234 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Expenditures for property, plant and equipment | (1,022) | (967) | |||||||||
| Acquisition of equity method investments | (8) | (512) | |||||||||
| Proceeds from sale of business | — | 700 | |||||||||
| Proceeds from settlement of net investment hedges | 284 | — | |||||||||
| Payments for settlement of net investment hedges | (234) | — | |||||||||
| Other, net | 46 | (44) | |||||||||
| Net cash used in investing activities | $ | (934) | $ | (823) | |||||||
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, | |||||||||||
| Millions of dollars | 2025 | 2024 | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repurchases of Company ordinary shares | $ | (201) | $ | (75) | |||||||
| Dividends paid - common stock | (878) | (846) | |||||||||
| Issuance of long-term debt | 499 | 744 | |||||||||
| Payments of debt issuance costs | (5) | (7) | |||||||||
| Repayment of long-term debt | — | (775) | |||||||||
| Proceeds from settlement of cash flow hedges | — | 882 | |||||||||
| Payments for settlement of cash flow hedges | — | (835) | |||||||||
| Other, net | (13) | 19 | |||||||||
| Net cash used in financing activities | (598) | (893) | |||||||||
| Effect of exchange rate changes on cash | 76 | (59) | |||||||||
| Decrease in cash and cash equivalents and restricted cash | (1,684) | (541) | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | 3,388 | 3,405 | |||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 1,704 | $ | 2,864 | |||||||
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | 19 | $ | (1,559) | $ | 6,132 | $ | 9,064 | $ | (1,447) | $ | 12,209 | $ | 12 | |||||||||||||||||||||||||||
| Net income | — | — | — | 115 | — | 115 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 94 | 94 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 22 | 7 | (3) | — | 26 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($1.37 per share) | — | — | — | (443) | — | (443) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($15.00 per share) | — | — | — | (1) | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | (91) | — | — | — | (91) | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | 19 | $ | (1,628) | $ | 6,139 | $ | 8,732 | $ | (1,353) | $ | 11,909 | $ | 12 | |||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | $ | 19 | $ | (1,372) | $ | 6,112 | $ | 9,752 | $ | (1,532) | $ | 12,979 | $ | 14 | |||||||||||||||||||||||||||
| Net income | — | — | — | 924 | — | 924 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 9 | 9 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 45 | 10 | (4) | — | 51 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($1.34 per share) | — | — | — | (438) | — | (438) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($15.00 per share) | — | — | — | (1) | — | (1) | — | ||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | (75) | — | — | — | (75) | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | 19 | $ | (1,402) | $ | 6,122 | $ | 10,233 | $ | (1,523) | $ | 13,449 | $ | 14 | |||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 19 | $ | (1,500) | $ | 6,150 | $ | 9,325 | $ | (1,532) | $ | 12,462 | $ | 12 | |||||||||||||||||||||||||||
| Net income | — | — | — | 292 | — | 292 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 179 | 179 | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 73 | (11) | (4) | — | 58 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($2.71 per share) | — | — | — | (878) | — | (878) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($30.00 per share) | — | — | — | (3) | — | (3) | — | ||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | (201) | — | — | — | (201) | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | 19 | $ | (1,628) | $ | 6,139 | $ | 8,732 | $ | (1,353) | $ | 11,909 | $ | 12 |
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 19 | $ | (1,450) | $ | 6,145 | $ | 9,692 | $ | (1,476) | $ | 12,930 | $ | 14 | |||||||||||||||||||||||||||
| Net income | — | — | — | 1,397 | — | 1,397 | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | (47) | (47) | — | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 123 | (23) | (7) | — | 93 | — | ||||||||||||||||||||||||||||||||||
| Dividends - common stock ($2.59 per share) | — | — | — | (846) | — | (846) | — | ||||||||||||||||||||||||||||||||||
| Dividends - redeemable non-controlling interests ($30.00 per share) | — | — | — | (3) | — | (3) | — | ||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | (75) | — | — | — | (75) | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | 19 | $ | (1,402) | $ | 6,122 | $ | 10,233 | $ | (1,523) | $ | 13,449 | $ | 14 |
See Notes to the Consolidated Financial Statements.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
TABLE OF CONTENTS
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
LyondellBasell Industries N.V. is a limited liability company (Naamloze Vennootschap) incorporated under Dutch law by deed of incorporation dated October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”). LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a producer of gasoline blending components and a developer and licensor of technologies for the production of polymers.
The accompanying unaudited Consolidated Financial Statements have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The results for interim periods are not necessarily indicative of results for the entire year.
In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation. The related operating results of our refining business are reported as discontinued operations for all periods presented.
2. Accounting and Reporting Changes
Recently Adopted Guidance
There were no new standards or Accounting Standard Updates (“ASU”) adopted in the six months ended June 30, 2025, that had a material impact on the Consolidated Financial Statements.
Accounting Guidance Issued But Not Adopted as of June 30, 2025
Expense Disaggregation Disclosures—In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires incremental disclosures about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. While permitted, we do not plan to early adopt this guidance. The guidance may be applied either prospectively or retrospectively. The adoption of this ASU will not have a material impact on our Consolidated Financial Statements as the guidance relates only to disclosure.
Income Tax Disclosures—In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance requires companies to disclose certain specific categories in the rate reconciliation and provide additional information for reconciling items that meet the quantitative threshold of 5% of the expected tax using the applicable statutory income tax rate. There is also a required disclosure to provide the net income taxes paid or received disaggregated by federal, state, and foreign taxes with jurisdictions to be separately disclosed if the jurisdiction is 5% or more of the total net income taxes paid or received. The guidance is effective for annual periods beginning after December 15, 2024. We will adopt the new guidance for our Income Tax Disclosures in the 2025 annual period. The adoption of this ASU will not have a material impact on our Consolidated Financial Statements as the guidance relates only to disclosure.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
3. Discontinued Operations
The following table presents components of (Loss) income from discontinued operations, net of tax:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | 326 | $ | 2,345 | $ | 1,525 | $ | 4,435 | |||||||||||||||
| Cost of sales | 369 | 2,369 | 1,370 | 4,401 | |||||||||||||||||||
| Selling, general and administrative expenses | 2 | 5 | 4 | 9 | |||||||||||||||||||
| Operating (loss) income | (45) | (29) | 151 | 25 | |||||||||||||||||||
| Other (expense) income, net | (2) | 3 | (2) | 1 | |||||||||||||||||||
| (Benefit from) provision for income taxes | (7) | (4) | 35 | 8 | |||||||||||||||||||
| (Loss) income from discontinued operations, net of tax | $ | (40) | $ | (22) | $ | 114 | $ | 18 |
4. Assets Held for Sale
*Proposed European Asset Sale—*In June 2025, we entered into an agreement for the sale of select olefins & polyolefins assets and the associated business in Europe. The sites to be sold have been part of the previously announced European strategic assessment and are located in Berre l’Etang (France), Münchsmünster (Germany), Carrington (United Kingdom), and Tarragona (Spain). The sites identified for sale are within our Olefins & Polyolefins-Europe, Asia, International (“O&P-EAI”) segment. The agreement is a put option deed under which the purchaser has committed to enter into an agreed form purchase agreement if we exercise our put option, after conclusion of certain works council consultation processes.
Closing of the proposed transaction is currently expected in the first half of 2026, subject to the completion of the information and consultation processes with the relevant employee representative bodies in accordance with applicable laws, as well as regulatory and other customary closing conditions. The assets and liabilities associated with the business to be sold have been classified as held for sale in the Consolidated Balance Sheets as of June 30, 2025.
In connection with the sale, we expect to recognize a loss on sale of approximately $700 million to $900 million upon closing. The loss principally consists of the transfer of net working capital of approximately $340 million, a cash contribution of $300 million to the sold businesses prior to closing, a foreign currency translation adjustment of approximately $300 million to $400 million, and a net equity method investment of approximately $10 million, partially offset by the transfer of pension and other liabilities of $150 million to $250 million.
Other costs, including selling expenses, separation costs, and employee-related costs, of approximately $100 million to $150 million, are estimated to be incurred prior to closing. During the second quarter of 2025, we incurred $10 million of such costs in connection with this transaction.
During the second quarter of 2025, a non-cash impairment loss of $32 million was recognized and allocated to property, plant and equipment. The fair value of the disposal group was determined based on the expected consideration and other fair value indicators obtained through our marketing efforts and classified as Level 2 within the fair value hierarchy. The impairment charge is presented within Impairments in the Consolidated Statements of Income.
*U.S. Specialty Powders Business—*In the second quarter of 2025, we entered into an agreement to sell our U.S. specialty powders business for a total consideration of approximately $10 million, subject to working capital and other adjustments. The transaction is expected to close in the second half of 2025 and is subject to customary closing conditions. The business had been identified as a non-core business within our Advanced Polymer Solutions (“APS”) segment.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table summarizes the assets and liabilities held for sale in the Consolidated Balance Sheets:
| June 30, 2025 | |||||||||||||||||
| Millions of dollars | European Assets | U.S. Specialty Powders Business | Total | ||||||||||||||
| ASSETS | |||||||||||||||||
| Accounts receivable - Trade, net | $ | 345 | $ | — | $ | 345 | |||||||||||
| Inventories | 399 | 10 | 409 | ||||||||||||||
| Prepaid expenses and other current assets | 30 | — | 30 | ||||||||||||||
| Operating lease assets | 10 | 7 | 17 | ||||||||||||||
| Equity investments | 29 | — | 29 | ||||||||||||||
| Goodwill | — | 2 | 2 | ||||||||||||||
| Total assets held for sale | $ | 813 | $ | 19 | $ | 832 | |||||||||||
| LIABILITIES | |||||||||||||||||
| Accounts payable - Trade | $ | 207 | $ | — | $ | 207 | |||||||||||
| Accrued and other current liabilities | 112 | 1 | 113 | ||||||||||||||
| Operating lease liabilities | 7 | 6 | 13 | ||||||||||||||
| Other liabilities | 219 | 1 | 220 | ||||||||||||||
| Deferred income taxes | 14 | — | 14 | ||||||||||||||
| Total liabilities held for sale | $ | 559 | $ | 8 | $ | 567 |
5. Revenues
*Contract Balances—*Contract liabilities were $146 million and $117 million as of June 30, 2025 and December 31, 2024, respectively. Revenue recognized in each reporting period that was included in the contract liability balance at the beginning of the period was immaterial.
*Disaggregation of Revenues—*The following table presents our revenues disaggregated by key products:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| Olefins and co-products | $ | 933 | $ | 1,317 | $ | 1,999 | $ | 2,562 | |||||||||||||||
| Polyethylene | 1,882 | 1,942 | 3,660 | 3,840 | |||||||||||||||||||
| Polypropylene | 1,565 | 1,577 | 3,103 | 3,075 | |||||||||||||||||||
| Propylene oxide and derivatives | 556 | 630 | 1,144 | 1,232 | |||||||||||||||||||
| Oxyfuels and related products | 1,151 | 1,431 | 2,282 | 2,541 | |||||||||||||||||||
| Intermediate chemicals | 511 | 667 | 1,052 | 1,456 | |||||||||||||||||||
| Compounding and solutions | 913 | 943 | 1,817 | 1,903 | |||||||||||||||||||
| Other | 147 | 171 | 278 | 373 | |||||||||||||||||||
| Total | $ | 7,658 | $ | 8,678 | $ | 15,335 | $ | 16,982 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents our revenues disaggregated by geography, based upon the location of the customer:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| United States | $ | 2,654 | $ | 3,177 | $ | 5,509 | $ | 6,344 | |||||||||||||||
| Germany | 557 | 663 | 1,173 | 1,323 | |||||||||||||||||||
| China | 480 | 535 | 960 | 1,141 | |||||||||||||||||||
| Mexico | 400 | 432 | 809 | 868 | |||||||||||||||||||
| Italy | 359 | 393 | 686 | 794 | |||||||||||||||||||
| Japan | 286 | 360 | 604 | 594 | |||||||||||||||||||
| France | 298 | 301 | 563 | 558 | |||||||||||||||||||
| Poland | 210 | 247 | 413 | 489 | |||||||||||||||||||
| The Netherlands | 228 | 214 | 394 | 399 | |||||||||||||||||||
| Other | 2,186 | 2,356 | 4,224 | 4,472 | |||||||||||||||||||
| Total | $ | 7,658 | $ | 8,678 | $ | 15,335 | $ | 16,982 |
6. Accounts Receivable
Accounts receivable are reflected in the Consolidated Balance Sheets, net of allowance for credit losses of $3 million and $4 million as of June 30, 2025 and December 31, 2024, respectively.
7. Inventories
Inventories consisted of the following components:
| Millions of dollars | June 30, 2025 | December 31, 2024 | |||||||||
| Finished goods | $ | 2,963 | $ | 3,014 | |||||||
| Work-in-process | 126 | 145 | |||||||||
| Raw materials and supplies | 1,479 | 1,499 | |||||||||
| Total inventories | $ | 4,568 | $ | 4,658 |
During the first six months of 2025, inventory liquidations associated with our exit from the refinery business generated a last-in, first-out (“LIFO”) benefit of $196 million, net of tax, or $0.60 per diluted share. This benefit is reflected in (Loss) income from discontinued operations, net of tax in the Consolidated Statements of Income. No material inventory liquidations were recognized during the three months ended June 30, 2025, or the six months ended June 30, 2024.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
8. Debt
Long-term loans, notes and other debt, net of unamortized discount, debt issuance cost and cumulative fair value hedging adjustments, consisted of the following:
| Millions of dollars | June 30, 2025 | December 31, 2024 | |||||||||
| Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $10 million of debt issuance cost) | $ | 975 | $ | 975 | |||||||
| Guaranteed Notes due 2027, $300 million, 8.1% | 300 | 300 | |||||||||
| Issued by LYB International Finance B.V.: | |||||||||||
| Guaranteed Notes due 2043, $750 million, 5.25% ($17 million of discount; $6 million of debt issuance cost) | 727 | 726 | |||||||||
| Guaranteed Notes due 2044, $1,000 million, 4.875% ($9 million of discount; $8 million of debt issuance cost) | 983 | 983 | |||||||||
| Issued by LYB International Finance II B.V.: | |||||||||||
| Guaranteed Notes due 2026, €500 million, 0.875% ($1 million of debt issuance cost) | 582 | 515 | |||||||||
| Guaranteed Notes due 2027, $1,000 million, 3.5% ($1 million of discount; $1 million of debt issuance cost) | 588 | 584 | |||||||||
| Guaranteed Notes due 2031, €500 million, 1.625% ($3 million of discount; $2 million of debt issuance cost) | 579 | 514 | |||||||||
| Issued by LYB International Finance III LLC: | |||||||||||
| Guaranteed Notes due 2025, $500 million, 1.25% | 490 | 487 | |||||||||
| Guaranteed Notes due 2030, $500 million, 3.375% ($1 million of debt issuance cost) | 128 | 123 | |||||||||
| Guaranteed Notes due 2030, $500 million, 2.25% ($2 million of discount; $3 million of debt issuance cost) | 479 | 473 | |||||||||
| Guaranteed Notes due 2033, $500 million, 5.625% ($5 million of debt issuance cost) | 495 | 495 | |||||||||
| Guaranteed Notes due 2034, $750 million, 5.5% ($5 million of discount, $6 million of debt issuance cost) | 739 | 738 | |||||||||
| Guaranteed Notes due 2035, $500 million, 6.150% ($1 million of discount, $5 million of debt issuance cost | 494 | — | |||||||||
| Guaranteed Notes due 2040, $750 million, 3.375% ($1 million of discount; $7 million of debt issuance cost) | 742 | 742 | |||||||||
| Guaranteed Notes due 2049, $1,000 million, 4.2% ($13 million of discount; $10 million of debt issuance cost) | 977 | 976 | |||||||||
| Guaranteed Notes due 2050, $1,000 million, 4.2% ($6 million of discount; $10 million of debt issuance cost) | 984 | 982 | |||||||||
| Guaranteed Notes due 2051, $1,000 million, 3.625% ($2 million of discount; $10 million of debt issuance cost) | 941 | 918 | |||||||||
| Guaranteed Notes due 2060, $500 million, 3.8% ($4 million of discount; $5 million of debt issuance cost) | 486 | 482 | |||||||||
| Other | 17 | 17 | |||||||||
| Total | 11,706 | 11,030 | |||||||||
| Less current maturities | (495) | (498) | |||||||||
| Long-term debt | $ | 11,211 | $ | 10,532 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Fair value hedging adjustments associated with the fair value hedge accounting of our fixed-for-floating interest rate swaps for the applicable periods are as follows:
| Gains (Losses) | Cumulative Fair Value Hedging Adjustments Included in Carrying Amount of Debt | |||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | June 30, | December 31, | |||||||||||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2025, 1.25% | $ | (1) | $ | (1) | $ | (3) | $ | (1) | $ | 1 | $ | 4 | ||||||||||||||||||||||||||
| Guaranteed Notes due 2026, 0.875% | (1) | — | (1) | — | 3 | 4 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2027, 3.5% | (1) | — | (3) | 4 | 2 | 5 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2030, 3.375% | (2) | — | (5) | 3 | 13 | 18 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2030, 2.25% | (2) | — | (5) | 3 | 16 | 21 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2031, 1.625% | (1) | 1 | 1 | 2 | 2 | 1 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2050, 4.2% | (1) | (1) | (2) | (3) | — | 2 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2051, 3.625% | (9) | (1) | (23) | 10 | 47 | 70 | ||||||||||||||||||||||||||||||||
| Guaranteed Notes due 2060, 3.8% | (2) | — | (4) | 3 | 5 | 9 | ||||||||||||||||||||||||||||||||
| Total | $ | (20) | $ | (2) | $ | (45) | $ | 21 | $ | 89 | $ | 134 |
Fair value adjustments are recognized in Interest expense in the Consolidated Statements of Income.
Long-Term Debt
Senior Revolving Credit Facility—Our $3,750 million senior unsecured revolving credit facility (the “Senior Revolving Credit Facility”), which expires in July 2029, may be used for dollar and euro denominated borrowings. The facility also supports our commercial paper program, has a $200 million sub-limit for dollar and euro denominated letters of credit and a $1,000 million uncommitted accordion feature. Borrowings under the facility bear interest at either a base rate, secured overnight financing rate or EURIBOR rate, plus an applicable margin. Additional fees are incurred for the average daily unused commitments. As of June 30, 2025, we had no borrowings or letters of credit outstanding and $3,750 million of unused availability under this facility.
Guaranteed Notes due 2035—In May 2025, LYB International Finance III, LLC (“LYB Finance III”), a wholly owned finance subsidiary of LyondellBasell Industries N.V., issued $500 million of 6.150% guaranteed notes due 2035 (the “2035 Notes”) at a discounted price of 99.7%. Net proceeds after deducting original issuance discounts, underwriting fees and offering expenses totaled $494 million. Net proceeds from the sale of the notes are used for general corporate purposes, including the repayment of our 2025 Notes.
These unsecured notes, which are fully and unconditionally guaranteed by LyondellBasell Industries N.V., rank equally in right of payment to all of LYB Finance III’s and LyondellBasell Industries N.V.’s existing and future senior unsecured indebtedness and will rank senior in right of payment to any future subordinated indebtedness that LYB Finance III or LyondellBasell Industries N.V. incurs. There are no significant restrictions that would impede LyondellBasell Industries N.V., as guarantor, from obtaining funds by dividend or loan from its subsidiaries. The indenture governing these notes contains limited covenants, including those restricting our ability, and the ability of our subsidiaries, to incur indebtedness secured by significant property or by capital stock of subsidiaries that own significant property, enter into certain sale and lease-back transactions with respect to any significant property or enter into consolidations, mergers or sales of all or substantially all of our assets.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The 2035 Notes may be redeemed at any time in whole, or from time to time in part, prior to the scheduled maturity date, at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest (discounted at the treasury rate plus the applicable basis points) less interest accrued on the notes to be redeemed, and (ii) 100% of the principal amount of the notes redeemed; plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. The 2035 Notes may also be redeemed at any time, on or after the date that is three months prior to the scheduled maturity date of the notes at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. The notes are also redeemable upon certain tax events.
Short-Term Debt
U.S. Receivables Facility—Our U.S. Receivables Facility has a purchase limit of $900 million in addition to a $300 million uncommitted accordion feature. In May 2025, we extended the term of the facility to June 2026. This facility provides liquidity through the sale or contribution of trade receivables by certain of our U.S. subsidiaries to a wholly owned, bankruptcy-remote subsidiary on an ongoing basis and without recourse. We pay variable interest rates on our secured borrowings. Additional fees are incurred for the average daily unused commitments. This facility also provides for the issuance of letters of credit up to $200 million. As of June 30, 2025, we had no borrowings or letters of credit outstanding and $900 million unused availability under this facility.
Commercial Paper Program—We have a commercial paper program under which we may issue up to $2,500 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). As of June 30, 2025, we had no borrowings of outstanding commercial paper.
Precious Metal Financings—At both June 30, 2025 and December 31, 2024, we had $119 million of Short-term debt related to our precious metal financings.
Weighted Average Interest Rate—As of June 30, 2025 and December 31, 2024, our weighted average interest rates on outstanding Short-term debt were 1.6% and 1.1%, respectively.
Additional Information
Debt Compliance—As of June 30, 2025, we are in compliance with our debt covenants.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
9. Financial Instruments and Fair Value Measurements
We are exposed to market risks, such as changes in commodity pricing, interest rates and currency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative contracts pursuant to our risk management policies.
Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:
| Fair Value | |||||||||||||||||||||||||||||
| Millions of dollars | June 30, 2025 | December 31, 2024 | Balance Sheet Classification | ||||||||||||||||||||||||||
| Assets– | |||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | $ | 3 | $ | 14 | Prepaid expenses and other current assets | ||||||||||||||||||||||||
| Commodities | 9 | 7 | Other assets | ||||||||||||||||||||||||||
| Foreign currency | 11 | 146 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Foreign currency | — | 66 | Other assets | ||||||||||||||||||||||||||
| Interest rates | 18 | 16 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | 6 | 18 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Commodities | — | 2 | Other assets | ||||||||||||||||||||||||||
| Foreign currency | 1 | 16 | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Total | $ | 48 | $ | 285 | |||||||||||||||||||||||||
| Liabilities– | |||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | $ | 20 | $ | 14 | Accrued and other current liabilities | ||||||||||||||||||||||||
| Commodities | 1 | 5 | Other liabilities | ||||||||||||||||||||||||||
| Foreign currency | 103 | 9 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Foreign currency | 147 | — | Other liabilities | ||||||||||||||||||||||||||
| Interest rates | 26 | 36 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Interest rates | 102 | 146 | Other liabilities | ||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | 35 | 11 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Foreign currency | 20 | 1 | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Total | $ | 454 | $ | 222 |
The financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our short-term precious metal financings and Long-term debt:
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Millions of dollars | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
| Precious metal financings | $ | 119 | $ | 149 | $ | 119 | $ | 122 | |||||||||||||||
| Long-term debt | 11,199 | 9,697 | 10,521 | 9,048 | |||||||||||||||||||
| Total | $ | 11,318 | $ | 9,846 | $ | 10,640 | $ | 9,170 |
The financial instruments in the table above are classified as Level 2. Our other financial instruments classified within Current assets and Current liabilities have a short maturity and their carrying value approximates fair value.
Derivative Instruments:
Commodity Prices—The following table presents the notional amounts of our outstanding commodity derivative instruments:
| Notional Amount | Unit of Measure | Maturity Date | |||||||||||||||||||||
| Millions of units | June 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||
| Natural gas | 60 | 62 | MMBtu | 2025 to 2028 | |||||||||||||||||||
| Ethane | 14 | 14 | Bbls | 2025 to 2028 | |||||||||||||||||||
| Power | 1 | — | MWhs | 2025 to 2028 | |||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||
| Ethane | 21 | — | Bbls | 2025 to 2026 | |||||||||||||||||||
| Other commodities | 3 | 6 | Bbls | 2025 to 2026 | |||||||||||||||||||
Interest Rates—The following table presents the notional amounts of our outstanding interest rate derivative instruments:
| Notional Amount | |||||||||||||||||||||||||||||
| Millions of dollars | June 30, 2025 | December 31, 2024 | Maturity Date | ||||||||||||||||||||||||||
| Fair value hedges | $ | 2,035 | $ | 2,158 | 2025 to 2031 |
Foreign Currency Rates—The following table presents the notional amounts of our outstanding foreign currency derivative instruments:
| Notional Amount | |||||||||||||||||||||||
| Millions of dollars | June 30, 2025 | December 31, 2024 | Maturity Date | ||||||||||||||||||||
| Net investment hedges | $ | 2,779 | $ | 3,256 | 2025 to 2030 | ||||||||||||||||||
| Cash flow hedges | 294 | 300 | 2027 | ||||||||||||||||||||
| Not designated | 1,115 | 772 | 2025 to 2026 | ||||||||||||||||||||
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Impact on Earnings and Other Comprehensive Income (Loss)—The following tables summarize the pre-tax effect of derivative instruments recorded in Accumulated other comprehensive income (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:
| Effects of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | Income Statement | ||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified to Income from AOCI | Additional Gain (Loss) Recognized in Income | Income Statement | ||||||||||||||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | Classification | ||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | $ | — | $ | (1) | $ | — | $ | 1 | $ | — | $ | — | Sales and other operating revenues | ||||||||||||||||||||||||||||
| Commodities | (49) | 31 | 4 | 35 | — | — | Cost of sales | ||||||||||||||||||||||||||||||||||
| Foreign currency | (273) | 25 | 24 | 1 | 13 | 14 | Interest expense | ||||||||||||||||||||||||||||||||||
| Interest rates | — | — | 1 | 1 | 7 | (17) | Interest expense | ||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | (17) | 5 | Cost of sales | ||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | — | 13 | (Loss) income from discontinued operations, net of tax | ||||||||||||||||||||||||||||||||||
| Foreign currency | — | — | — | — | (52) | 16 | Other income, net | ||||||||||||||||||||||||||||||||||
| Total | $ | (322) | $ | 55 | $ | 29 | $ | 38 | $ | (49) | $ | 31 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Effects of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | Income Statement | ||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified to Income from AOCI | Additional Gain (Loss) Recognized in Income | Income Statement | ||||||||||||||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | Classification | ||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | $ | — | $ | (3) | $ | — | $ | 2 | $ | — | $ | — | Sales and other operating revenues | ||||||||||||||||||||||||||||
| Commodities | (12) | (17) | 2 | 73 | — | — | Cost of sales | ||||||||||||||||||||||||||||||||||
| Foreign currency | (392) | 120 | 35 | (27) | 25 | 35 | Interest expense | ||||||||||||||||||||||||||||||||||
| Interest rates | — | 11 | 2 | 2 | 20 | (61) | Interest expense | ||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | — | (1) | Sales and other operating revenues | ||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | (36) | 3 | Cost of sales | ||||||||||||||||||||||||||||||||||
| Commodities | — | — | — | — | 8 | 6 | (Loss) income from discontinued operations, net of tax | ||||||||||||||||||||||||||||||||||
| Foreign currency | — | — | — | — | (81) | 24 | Other income, net | ||||||||||||||||||||||||||||||||||
| Total | $ | (404) | $ | 111 | $ | 39 | $ | 50 | $ | (64) | $ | 6 | |||||||||||||||||||||||||||||
As of June 30, 2025, on a pre-tax basis, $5 million is scheduled to be reclassified from AOCI as an increase to Interest expense over the next twelve months.
Other Financial Instruments:
Cash and Cash Equivalents—As of June 30, 2025 and December 31, 2024, we had marketable securities classified as Cash and cash equivalents of $820 million and $2,610 million, respectively.
10. Income Taxes
For interim tax reporting, we estimate an annual effective tax rate which is applied to the year-to-date ordinary income. Tax effects of significant, unusual, or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains or losses, the amount of exempt income, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Our exempt income primarily includes interest income, export incentives, and equity earnings of joint ventures. Interest income earned by certain of our subsidiaries through intercompany financings is taxed at rates substantially lower than the U.S. statutory rate. Export incentives relate to tax benefits derived from elections and structures available for U.S. exports. Equity earnings attributable to the earnings of our joint ventures, when paid through dividends to certain European subsidiaries, are exempt from all or portions of normal statutory income tax rates. We currently anticipate the favorable treatment for interest income, dividends, and export incentives to continue in the current year based on current law. The United Kingdom, as well as certain other jurisdictions in which we operate, enacted legislation implementing the Organization for Economic Cooperation and Development’s Pillar Two Model Rules effective as of January 1, 2024. This legislation did not have a material impact on the Consolidated Financial Statements, however, we continue to assess and monitor legislative changes.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. OBBBA includes tax reform extending and modifying certain key Tax Cuts & Jobs Act provisions such as accelerated tax deductions for qualified property and domestic research expenditures, and modifications to the limitations on deductions for interest expense. The provisions of the OBBBA have different effective dates where some are effective in 2025 and others not until 2026. This legislation is not expected to have a material impact on the Consolidated Financial Statements; however, we continue to assess the impact.
Our effective income tax rate for the second quarter of 2025 was 30.8% compared to 21.1% for the second quarter of 2024. The higher effective tax rate for the second quarter of 2025 was primarily due to the discrete tax recognition of foreign exchange gains and losses with lower pre-tax earnings that increased our effective income tax rate by 26.9 percentage points. This increase to the effective tax rate was partially offset by the increased relative impact of our tax rate drivers, primarily exempt income and fluctuations in return to accruals, due to lower earnings that decreased our effective income tax rate by 15.3 percentage points.
Our effective income tax rate for the first six months of 2025 was 37.1% compared to 20.8% for the first six months of 2024. The higher effective tax rate for the first six months of 2025 was primarily due to the discrete tax recognition of foreign exchange gains and losses with lower pre-tax earnings that increased our effective tax rate by 32.2 percentage points. This increase to the effective tax rate was partially offset by the increased relative impact of our tax rate drivers, primarily exempt income, due to decreased earnings that decreased our effective income tax rate by 11.9 percentage points.
11. Commitments and Contingencies
Commitments—We have various purchase commitments for materials, supplies and services incidental to the ordinary conduct of business, generally for quantities required for our businesses and at prevailing market prices. These commitments are designed to ensure sources of supply and are not expected to be in excess of normal requirements. Additionally, we have capital expenditure commitments, which we incur in our normal course of business.
Financial Assurance Instruments—We have obtained letters of credit, performance and surety bonds and have issued financial and performance guarantees to support trade payables, potential liabilities and other obligations. Considering the frequency of claims made against the financial instruments we use to support our obligations, and the magnitude of those financial instruments in light of our current financial position, management does not expect that any claims against or draws on these instruments would have a material adverse effect on the Consolidated Financial Statements. We have not experienced any unmanageable difficulties in obtaining the required financial assurance instruments for our current operations.
Environmental Remediation—Accrued liabilities for future environmental remediation costs at current and former plant sites and other remediation sites totaled $101 million and $140 million as of June 30, 2025 and December 31, 2024, respectively. As of June 30, 2025, the accrued liabilities for individual sites range from less than $1 million to $41 million. The remediation expenditures are expected to occur over a number of years and are not concentrated in any single year. In our opinion, it is reasonably possible that losses in excess of the liabilities recorded may have been incurred. However, we cannot estimate any amount or range of such possible additional losses. New information about sites, new technology or future developments, such as involvement in investigations by regulatory agencies, could require us to reassess our potential exposure related to environmental matters.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Indemnification—We are parties to various indemnification arrangements, including arrangements entered into in connection with acquisitions, divestitures and the formation and dissolution of joint ventures. Pursuant to these arrangements, we provide indemnification to and/or receive indemnification from other parties in connection with liabilities that may arise in connection with the transactions and in connection with activities prior to completion of the transactions. These indemnification arrangements typically include provisions pertaining to third-party claims relating to environmental and tax matters and various types of litigation. As of June 30, 2025, we had not accrued any significant amounts for our indemnification obligations, and we are not aware of other circumstances that would likely lead to significant future indemnification obligations. We cannot determine with certainty the potential amount of future payments under the indemnification arrangements until events arise that would trigger a liability under the arrangements.
As part of our technology licensing contracts, we give indemnifications to our licensees for liabilities arising from possible patent infringement claims with respect to certain proprietary licensed technologies. Such indemnifications have a stated maximum amount and generally cover a period of 5 to 10 years.
*Legal Proceedings—*We are subject to various lawsuits and claims, including but not limited to, matters involving contract disputes, tort claims, and regulatory disputes alleging environmental damages, personal injury and/or property damage, some of which are covered by insurance. We vigorously defend ourselves and prosecute these matters as appropriate.
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor legal proceedings in which we are a party. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial, mediation or other resolution. We regularly assess the adequacy of legal accruals based on our professional judgment, experience and the information available regarding our cases.
Based on consideration of all relevant facts and circumstances, we do not believe the ultimate outcome of any currently pending lawsuit or claim against us will have a material adverse effect upon our operations, financial condition or Consolidated Financial Statements.
12. Shareholders’ Equity and Redeemable Non-controlling Interests
Shareholders’ Equity
Dividend Distributions—The following table summarizes the quarterly dividends paid in the period presented:
| Millions of dollars, except per share amounts | Dividend Per Ordinary Share | Aggregate Dividends Paid | Date of Record | ||||||||||||||
| March 2025 | $ | 1.34 | $ | 433 | March 10, 2025 | ||||||||||||
| June 2025 | 1.37 | 445 | June 2, 2025 | ||||||||||||||
| $ | 2.71 | $ | 878 |
Share Repurchase Authorization—In May 2025, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 23, 2026 (“2025 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. The timing and amount of these repurchases, which are determined based on our evaluation of market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. The repurchased shares, which are recorded at cost, are classified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table summarizes our share repurchase activity for the periods presented:
| Millions of dollars, except shares and per share amounts | Shares Repurchased | Average Purchase Price Per Share | Total Purchase Price, Including Commissions and Fees | |||||||||||||||||
| For the six months ended June 30, 2025: | ||||||||||||||||||||
| 2024 Share Repurchase Authorization | 3,037,987 | $ | 66.01 | $ | 201 | |||||||||||||||
| For the six months ended June 30, 2024: | ||||||||||||||||||||
| 2024 Share Repurchase Authorization | 784,505 | $ | 95.62 | $ | 75 | |||||||||||||||
Total cash paid for share repurchases for the six months ended June 30, 2025 and 2024 was $201 million and $75 million, respectively.
Ordinary Shares—The changes in the outstanding amounts of ordinary shares are as follows:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Ordinary shares outstanding: | |||||||||||
| Beginning balance | 323,889,832 | 324,483,402 | |||||||||
| Share-based compensation | 491,005 | 1,203,741 | |||||||||
| Employee stock purchase plan | 284,760 | 176,046 | |||||||||
| Purchase of ordinary shares | (3,037,987) | (784,505) | |||||||||
| Ending balance | 321,627,610 | 325,078,684 |
*Treasury Shares—*The changes in the amounts of treasury shares held by the Company are as follows:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Ordinary shares held as treasury shares: | |||||||||||
| Beginning balance | 16,532,666 | 15,939,096 | |||||||||
| Share-based compensation | (491,005) | (1,203,741) | |||||||||
| Employee stock purchase plan | (284,760) | (176,046) | |||||||||
| Purchase of ordinary shares | 3,037,987 | 784,505 | |||||||||
| Ending balance | 18,794,888 | 15,343,814 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the six months ended June 30, 2025 and 2024 are presented in the following tables.
Foreign Currency Translation Adjustments below include currency translation adjustments as well as gains (losses) on net investment hedges; the associated tax benefits or expenses are calculated separately for each component.
| Millions of dollars | Financial Derivatives | Defined Benefit Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||||||||
| December 31, 2024 | $ | (111) | $ | (281) | $ | (1,140) | $ | (1,532) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | (47) | (3) | 96 | 46 | |||||||||||||||||||||||||||||||
| Tax benefit before reclassifications | 12 | 1 | 93 | 106 | |||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 39 | (1) | — | 38 | |||||||||||||||||||||||||||||||
| Tax expense | (10) | (1) | — | (11) | |||||||||||||||||||||||||||||||
| Net other comprehensive income (loss) | (6) | (4) | 189 | 179 | |||||||||||||||||||||||||||||||
| Balance – June 30, 2025 | $ | (117) | $ | (285) | $ | (951) | $ | (1,353) |
| Millions of dollars | Financial Derivatives | Defined Benefit Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||||||||
| Balance – December 31, 2023 | $ | (226) | $ | (279) | $ | (971) | $ | (1,476) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 17 | — | (79) | (62) | |||||||||||||||||||||||||||||||
| Tax expense before reclassifications | (5) | — | (25) | (30) | |||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | 50 | 8 | — | 58 | |||||||||||||||||||||||||||||||
| Tax expense | (12) | (1) | — | (13) | |||||||||||||||||||||||||||||||
| Net other comprehensive income (loss) | 50 | 7 | (104) | (47) | |||||||||||||||||||||||||||||||
| Balance – June 30, 2024 | $ | (176) | $ | (272) | $ | (1,075) | $ | (1,523) |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The amounts reclassified out of each component of Accumulated other comprehensive loss are as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | Affected Line Item on the Consolidated Statements of Income | |||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
| Reclassification adjustments for: | |||||||||||||||||||||||||||||
| Financial derivatives: | |||||||||||||||||||||||||||||
| Commodities | $ | — | $ | 1 | $ | — | $ | 2 | Sales and other operating revenues | ||||||||||||||||||||
| Commodities | 4 | 35 | 2 | 73 | Cost of sales | ||||||||||||||||||||||||
| Foreign currency | 24 | 1 | 35 | (27) | Interest expense | ||||||||||||||||||||||||
| Interest rates | 1 | 1 | 2 | 2 | Interest expense | ||||||||||||||||||||||||
| Income tax expense | (7) | (11) | (10) | (12) | Provision for income taxes | ||||||||||||||||||||||||
| Financial derivatives, net of tax | 22 | 27 | 29 | 38 | |||||||||||||||||||||||||
| Amortization of defined pension items: | |||||||||||||||||||||||||||||
| Actuarial loss | 3 | 4 | 6 | 7 | Other income, net | ||||||||||||||||||||||||
| Prior service cost | 1 | — | 2 | 1 | Other income, net | ||||||||||||||||||||||||
| Curtailment gain | — | — | (9) | — | Income from discontinued operations, net of tax | ||||||||||||||||||||||||
| Income tax expense | (2) | — | (1) | (1) | Provision for income taxes | ||||||||||||||||||||||||
| Defined pension items, net of tax | 2 | 4 | (2) | 7 | |||||||||||||||||||||||||
| Total reclassifications, before tax | 33 | 42 | 38 | 58 | |||||||||||||||||||||||||
| Income tax expense | (9) | (11) | (11) | (13) | Provision for income taxes | ||||||||||||||||||||||||
| Total reclassifications, after tax | $ | 24 | $ | 31 | $ | 27 | $ | 45 | Amount included in net income |
Redeemable Non-controlling Interests
Our redeemable non-controlling interests relate to shares of cumulative perpetual special stock (“redeemable non-controlling interest stock”) issued by a consolidated subsidiary. As of June 30, 2025 and December 31, 2024, we had 113,053 shares of redeemable non-controlling interest stock outstanding. These shares may be redeemed at any time at the discretion of the holders.
In January and May 2025, we paid cash dividends of $15.00 per share to our redeemable non-controlling interest shareholders of record as of January 15, 2025 and April 15, 2025. These dividends totaled $3 million for each of the six month periods ended June 30, 2025 and 2024.
13. Per Share Data
Basic earnings per share is based upon the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share includes the effect of certain stock options and other equity-based compensation awards. Our unvested restricted stock units contain non-forfeitable rights to dividend equivalents and are considered participating securities. We compute basic and diluted earnings per share under the two-class method.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Earnings per share data is as follows:
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Millions of dollars | Continuing Operations | Discontinued Operations | Continuing Operations | Discontinued Operations | |||||||||||||||||||
| Net income (loss) | $ | 155 | $ | (40) | $ | 946 | $ | (22) | |||||||||||||||
| Dividends on redeemable non-controlling interests | (1) | — | (1) | — | |||||||||||||||||||
| Net income attributable to participating securities | (3) | — | (5) | — | |||||||||||||||||||
| Net income (loss) attributable to ordinary shareholders – basic and diluted | $ | 151 | $ | (40) | $ | 940 | $ | (22) | |||||||||||||||
| Millions of shares, except per share amounts | |||||||||||||||||||||||
| Basic weighted average common stock outstanding | 322 | 322 | 325 | 325 | |||||||||||||||||||
| Effect of dilutive securities | — | — | 1 | 1 | |||||||||||||||||||
| Diluted weighted average common stock outstanding | 322 | 322 | 326 | 326 | |||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.47 | $ | (0.13) | $ | 2.89 | $ | (0.07) | |||||||||||||||
| Diluted | $ | 0.47 | $ | (0.13) | $ | 2.88 | $ | (0.06) | |||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Millions of dollars | Continuing Operations | Discontinued Operations | Continuing Operations | Discontinued Operations | |||||||||||||||||||
| Net income | $ | 178 | $ | 114 | $ | 1,379 | $ | 18 | |||||||||||||||
| Dividends on redeemable non-controlling interests | (3) | — | (3) | — | |||||||||||||||||||
| Net income attributable to participating securities | (5) | — | (6) | — | |||||||||||||||||||
| Net income attributable to ordinary shareholders – basic and diluted | $ | 170 | $ | 114 | $ | 1,370 | $ | 18 | |||||||||||||||
| Millions of shares, except per share amounts | |||||||||||||||||||||||
| Basic weighted average common stock outstanding | 323 | 323 | 325 | 325 | |||||||||||||||||||
| Effect of dilutive securities | — | — | 1 | 1 | |||||||||||||||||||
| Diluted weighted average common stock outstanding | 323 | 323 | 326 | 326 | |||||||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.53 | $ | 0.35 | $ | 4.21 | $ | 0.05 | |||||||||||||||
| Diluted | $ | 0.53 | $ | 0.35 | $ | 4.20 | $ | 0.05 | |||||||||||||||
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
14. Segment and Related Information
Our operations are managed by senior executives who report to our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments. The Chief Executive Officer uses EBITDA as the primary measure for reviewing the profitability of our segments and allocating resources to the segments. We define EBITDA as net income before interest, income taxes, and depreciation and amortization. Our chief operating decision maker does not receive information about total assets by reportable segment.
The activities of each of our segments from which they earn revenues and incur expenses are described below:
-
Olefins and Polyolefins-Americas (“O&P-Americas”). Our O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
-
Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”). Our O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene.
-
Intermediates and Derivatives (“I&D”). Our I&D segment produces and markets propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals such as styrene monomer and acetyls.
-
Advanced Polymer Solutions (“APS”). Our APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders.
-
Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
“Other” includes intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefit costs other than service costs. Sales between segments are made at prices approximating prevailing market prices.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Summarized financial information concerning reportable segments is shown in the following tables for the periods presented:
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 1,851 | $ | 2,537 | $ | 2,244 | $ | 913 | $ | 113 | $ | — | $ | 7,658 | |||||||||||||||||||||||||||||||||
| Intersegment | 526 | 167 | 31 | 4 | 24 | (752) | — | ||||||||||||||||||||||||||||||||||||||||
| 2,377 | 2,704 | 2,275 | 917 | 137 | (752) | 7,658 | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 2,108 | 2,575 | 2,048 | 807 | 82 | (749) | 6,871 | ||||||||||||||||||||||||||||||||||||||||
| Impairments | — | 32 | — | — | — | — | 32 | ||||||||||||||||||||||||||||||||||||||||
| Income from equity investments | (4) | (3) | — | — | — | — | (7) | ||||||||||||||||||||||||||||||||||||||||
| Other items | 124 | 136 | 40 | 98 | 33 | 10 | 441 | ||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 164 | 38 | 99 | 20 | 11 | — | 332 | ||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | 313 | $ | 2 | $ | 286 | $ | 32 | $ | 33 | $ | (13) | $ | 653 | |||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 305 | $ | 115 | $ | 73 | $ | 19 | $ | 27 | $ | — | $ | 539 |
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 2,188 | $ | 2,659 | $ | 2,751 | $ | 943 | $ | 137 | $ | — | $ | 8,678 | |||||||||||||||||||||||||||||||||
| Intersegment | 738 | 183 | 44 | 5 | 22 | (992) | — | ||||||||||||||||||||||||||||||||||||||||
| 2,926 | 2,842 | 2,795 | 948 | 159 | (992) | 8,678 | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 2,297 | 2,693 | 2,344 | 844 | 57 | (991) | 7,244 | ||||||||||||||||||||||||||||||||||||||||
| Loss from equity investments | 1 | 16 | 2 | — | — | — | 19 | ||||||||||||||||||||||||||||||||||||||||
| Gain on sale of business | — | — | (293) | — | — | — | (293) | ||||||||||||||||||||||||||||||||||||||||
| Other items | 110 | 117 | 51 | 86 | 28 | 6 | 398 | ||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 152 | 54 | 103 | 22 | 10 | — | 341 | ||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | 670 | $ | 70 | $ | 794 | $ | 40 | $ | 84 | $ | (7) | $ | 1,651 | |||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 174 | $ | 107 | $ | 150 | $ | 25 | $ | 20 | $ | 2 | $ | 478 |
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P- Americas | O&P- EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 3,808 | $ | 4,972 | $ | 4,526 | $ | 1,817 | $ | 212 | $ | — | $ | 15,335 | |||||||||||||||||||||||||||||||||
| Intersegment | 1,050 | 332 | 47 | 8 | 45 | (1,482) | — | ||||||||||||||||||||||||||||||||||||||||
| 4,858 | 5,304 | 4,573 | 1,825 | 257 | (1,482) | 15,335 | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 4,381 | 5,085 | 4,281 | 1,607 | 126 | (1,481) | 13,999 | ||||||||||||||||||||||||||||||||||||||||
| Impairments | — | 32 | — | — | — | — | 32 | ||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | (11) | 3 | — | — | — | — | (8) | ||||||||||||||||||||||||||||||||||||||||
| Other items | 243 | 242 | 110 | 180 | 67 | 13 | 855 | ||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 319 | 77 | 198 | 40 | 21 | — | 655 | ||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | 564 | $ | 19 | $ | 380 | $ | 78 | $ | 85 | $ | (14) | $ | 1,112 | |||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 521 | $ | 239 | $ | 164 | $ | 49 | $ | 49 | $ | — | $ | 1,022 |
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
| Customers | $ | 4,275 | $ | 5,221 | $ | 5,278 | $ | 1,903 | $ | 305 | $ | — | $ | 16,982 | |||||||||||||||||||||||||||||||||
| Intersegment | 1,522 | 366 | 103 | 10 | 46 | (2,047) | — | ||||||||||||||||||||||||||||||||||||||||
| 5,797 | 5,587 | 5,381 | 1,913 | 351 | (2,047) | 16,982 | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 4,697 | 5,336 | 4,644 | 1,705 | 109 | (2,047) | 14,444 | ||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | (8) | 48 | 6 | — | — | — | 46 | ||||||||||||||||||||||||||||||||||||||||
| Gain on sale of business | — | — | (293) | — | — | — | (293) | ||||||||||||||||||||||||||||||||||||||||
| Other items | 220 | 225 | 121 | 175 | 61 | 15 | 817 | ||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 303 | 106 | 203 | 42 | 21 | — | 675 | ||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | 1,191 | $ | 84 | $ | 1,106 | $ | 75 | $ | 202 | $ | (15) | $ | 2,643 | |||||||||||||||||||||||||||||||||
| Capital expenditures | $ | 355 | $ | 194 | $ | 292 | $ | 48 | $ | 44 | $ | 3 | $ | 936 |
Other items include Selling, general and administrative (“SG&A”) expenses, Research and development expenses, and Other income, net.
LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
A reconciliation of EBITDA to Income from continuing operations before income taxes is shown in the following table for each of the periods presented. Indirect SG&A expense reallocation to continuing operations represents corporate SG&A expenses that were previously allocated to the refining segment:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| EBITDA: | |||||||||||||||||||||||
| Total segment EBITDA | $ | 666 | $ | 1,658 | $ | 1,126 | $ | 2,658 | |||||||||||||||
| Other EBITDA | (13) | (7) | (14) | (15) | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Depreciation and amortization expense | (332) | (341) | (655) | (675) | |||||||||||||||||||
| Interest expense | (118) | (120) | (225) | (247) | |||||||||||||||||||
| Indirect SG&A expense reallocation to continuing operations | — | (28) | — | (57) | |||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Interest income | 21 | 37 | 51 | 78 | |||||||||||||||||||
| Income from continuing operations before income taxes | $ | 224 | $ | 1,199 | $ | 283 | $ | 1,742 |
*Closure of European PO Joint Venture—*In March 2025, we announced our plans to permanently close the Propylene Oxide Styrene Monomer (POSM) production unit at the Maasvlakte site in the Netherlands. The Maasvlakte site is a joint venture between us and Covestro (our “European PO Joint Venture”). The joint venture was formed solely for the benefit of the partners and does not manufacture for any other parties. We report the cost of our product off-take as Inventory and the equity loss as Cost of sales in our Consolidated Financial Statements.
As of December 31, 2024, the book value of the European PO Joint Venture was immaterial largely due to asset impairments recognized during 2023. We will carry out a process to safely shut down and prepare for the demolition of the asset. We estimate our portion of the total shutdown costs will be approximately $215 million and will be incurred through 2027. During the first quarter of 2025, we incurred $117 million of shutdown costs.
Disposition of Ethylene Oxide & Derivatives (“EO&D”) Business—In May 2024, we sold our U.S. Gulf Coast-based EO&D business along with the production facilities located in Bayport, TX. The EO&D business was included in our I&D segment. In connection with the sale, we received cash proceeds of $700 million and recognized a pre-tax gain of $293 million in the first six months of 2024.
Acquisition of Joint Venture—In May 2024, we acquired a 35% interest in Saudi Arabia-based National Petrochemical Industrial Company (“NATPET”) from Alujain Corporation for approximately $500 million. The joint venture is enabled by our Spheripol polypropylene (“PP”) technology and positions us to expand our core PP business by gaining access to advantaged feedstocks. The joint venture has the capacity to produce 0.4 million tons of PP per year. We market the majority of the off-take through our global sales team. The joint venture is included in our O&P-EAI segment and accounted for using the equity method of accounting.
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