LyondellBasell Industries N.V. — Call Transcript 2026

Hello, welcome to the LyondellBasell teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes. Following today's presentation, we will conduct a question-and-answer session. I would now like to turn the call over to Mr. David Kinney, Head of Investor Relations. Sir, you may begin. Thank you, operator, and welcome everyone to today's call. Before we begin the discussion, I would like to point out that a slide presentation accompanies the call and is available on our website at investors.lyondellbasell.com. Today, we will be discussing our first quarter results while making reference to some forward-looking statements and non-GAAP financial measures. We believe the forward-looking statements are based upon reasonable assumptions, and the alternative measures are useful to investors. Nonetheless, the forward-looking statements are subject to significant risk and uncertainty. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our investor relations website. Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures such as EBITDA and earnings per share, excluding identified items. Additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures, together with other disclosures, including the earnings release and our business results discussion. A recording of this call will be available by telephone beginning at 1:00 P.M. Eastern Time today until May 31st by calling 877-660-6853 in the United States and 201-612-7415 outside the United States. The access code for both numbers is 13746217. Joining today's call will be Peter Vanacker, LyondellBasell's Chief Executive Officer, our CFO, Agustín Izquierdo, Kimberly Foley, our Executive Vice President of Global Olefins & Polyolefins, Aaron Ledet, our EVP of Intermediates & Derivatives, and Torkel Rhenman, our EVP of Advanced Polymer Solutions. With that being said, I would now like to turn the call over to Peter. Thank you all for joining today's call as we discuss our first quarter results. Thank you, Dave. As some of you know, Dave Kinney is retiring after a decade leading Investor Relations and nearly 35 years with the company. I am sure you will all join me in congratulating Dave for his significant contributions to the company and wishing him well in retirement. Succeeding Dave is David Dennison, who brings nearly 30 years of industry experience to the role across planning, commercial, and strategic functions, including most recently in the circular and low-carbon solutions business. I am confident you will find David to be another great partner as our new Head of Investor Relations. Before we turn to our performance, I want to acknowledge the human impact of the tragic ongoing situation in the Middle East. The suffering and trauma of war is catastrophic for all involved, and our thoughts are with those affected. Our first priority is the continued safety of our people, and we have already executed on protocols to protect our employees and contractors in the region. This situation in the Middle East has materially disrupted global energy and petrochemicals markets. We expect the impacts will extend beyond the end of the year, with much of the world's petrochemical capacity constraints are shut down. LyondellBasell's U.S. and European production capacity is a critical resource for filling the global gap in supply for our essential products. Supported by our operational excellence and the work from our Value Enhancement Program, we are increasing production to meet these demands. At the same time, we remain focused on executing our strategy. Our portfolio transformation has reached another significant milestone with the sale of four European assets. While increased cash generation and profitability will improve our credit metrics, we are maintaining our discipline on capital expenditures, and we are undertaking deliberate actions to further streamline our fixed costs and underpin our ability to generate attractive value during both cyclical highs and lows. With that being said, let's take a moment to review LYB's safety performance with slide number three. Safety remains foundational to how we operate. Our year-to-date total recordable incident rate of 0.13 is among the best in our sector and reflects the commitment of our employees and contractors. Turning to slide four, the Middle East conflict and its unprecedented effects on energy prices and global logistics has shifted the paradigm for petrochemicals. At the high end of the cost curve, naphtha-based producers in China and Southeast Asia have faced sharply higher costs driven by the compound impact of higher crude prices, the loss of sanctioned crude discounts, and weak co-product values. In addition, pre-conflict, approximately half of Asia's imported crude came from the Middle East. The war has impacted security of supply for Asian crude and petrochemical feedstocks, leading to lower production and a substantial reduction of exports from the region. At the low end of the cost curve, U.S. ethane economics have improved, strengthening the cost advantage of LYB's U.S. Gulf Coast assets with low-cost raw materials and increased production to serve increased global demands. In Europe, higher prices are now offsetting higher energy and feedstock costs as imports from the Middle East and China decline. While this chart focuses on ethylene, we find similar dynamics in play across nearly all LYB products. Clearly, we are operating in a dynamic environment where dramatic changes are possible within short time periods. Our global operational and marketing network has already yielded valuable insights, which have enabled us to rapidly adapt to the changing environments. These insights inform our position that the impacts from the war will be long-lasting. We believe the geopolitical risk premium for crude oil will persist even after a resolution to the current conflict, and discounts for sanctioned crudes are unlikely to return. Both of these impacts should durably steepen the global cost curve relative to pre-war conditions. Across feedstocks and petrochemicals, physical damage from the war and accelerated shutdowns will require time and resources to repair. Some older, smaller, and less economical plants under evaluation for potential rationalization may not restart at all. This could provide a lasting benefit to supply and demand balances. Of course, we are mindful of the potential for second-order impacts, like demand destruction for discretionary spending, especially if oil prices remain at recent highs. We remain confident that our cost advantage asset base and deliberate execution will enable LYB to continue to generate value through the cycle. Let's turn to slide five as we discuss the tangible steps we are taking to execute on our strategy to build a more resilient LYB. Over the past three years, we have executed on significant portfolio transformation. This included ceasing refining operations, closing our Dutch PO joint venture, divesting our EO&D business, and the ongoing transformation of our APS portfolio. As we announced this morning, we reached another significant milestone in our portfolio transformation by completing the sale of four European assets. This transaction sharpens the focus of our capital allocation towards strategic assets that advance long-term value creation for LYB. We extend our gratitude to our friends and colleagues that helped accomplish this transaction. We are particularly thankful for those who are transferring to the new organization for their contributions, professionalism, and resilience throughout the process. As they transition to a standalone business, we wish them and the new company success in the next chapter ahead. We continue to benefit from our team's vigorous work on the cash improvement plan. We are making progress toward our target of $500 million of incremental cash flow this year, which will bring the cumulative total since 2025 to $1.3 billion. We remain focused on disciplined management of trade working capital, which despite higher volumes and prices, was $450 million lower on March 31st than a year prior. We are also continuing to streamline the organization, including our executive committee. The effects will flow through the organization over the coming months to create further efficiencies. First quarter fixed costs across the company are already under $50 million lower than first quarter of 2025, including closure costs. Since the end of 2024, we have reduced headcount by approximately 3,000 positions or 15% through the combination of fixed cost reductions and portfolio management, including the sale of our European assets announced earlier this morning. Our initiatives are yielding results and more improvements is on the way. Even with our sharp focus on capital discipline, we remain poised to realize future value creation. We're operating our Channelview PO/TBA plant above benchmark rates and modest investment in Hyperzone reliability and acetyl debottlenecks will deliver incremental value. Construction on MoReTec-1 continues as planned and is expected to ramp up towards the end of 2027. Together, we expect these future growth projects will increase our EBITDA by approximately $400 million. In addition, VEP continues to drive down our costs and increase our reliability and productivity. Now let's turn to slide six as we discuss our financial performance. During the first quarter, earnings were $0.49 per diluted share with EBITDA of $615 million. EBITDA improved by nearly 50%, supported by both typical seasonal trends and a significant improvement in market conditions during March. Cash and liquidity remained robust, with balances of $2.6 billion and $7.3 billion respectively at quarter end. I will now hand over to Agustin to discuss our financial performance in more detail. Agustin? Thank you, Peter, and good morning, everyone. Let me begin with slide seven as we outline our cash generation. Over the past 12 months, LyondellBasell converted EBITDA into cash at a rate of 111%, well above our long-term target of 80%. This performance reflects our laser focus on optimizing working capital and benefited from the timing of tax payments. In the second quarter, we expect higher prices and operating rates will result in an intentional build of working capital to capture market opportunities. As Peter mentioned, in the first quarter, our cash balance was $2.6 billion, and our available liquidity remains robust at $7.3 billion. Now let's turn to slide eight and review the details of our first quarter capital allocation. We consumed $269 million of cash in operating activities. This was expected and consistent with normal patterns for the first quarter. It also reflects the very low inventory levels we accomplished at the end of 2025 and our intentions to profitably capture higher prices and increase demand from the market in 2026. During the quarter, we funded $269 million of capital investments. We took proactive steps during the first quarter to protect our investment-grade balance sheet. Our Board approved a 50% reduction in our quarterly dividend to rebalance our capital allocation and improve financial flexibility. As a result, we returned $224 million to shareholders through dividends in the first quarter. With the change in outlook for 2026, we currently expect both our effective and cash tax rates for the year will range between 15%-20%. Despite the highly fluid macro environment, our capital allocation priorities remain consistent. We are committed to our investment-grade balance sheet as a foundation of our disciplined capital allocation framework. With the sale of four European assets, we have reached a milestone in our portfolio transformation, and while we have several attractive projects ready for investment, we will only move forward when the balance sheet and outlook is more secure. Regardless of the more favorable outlook for 2026, our near-term focus will remain on continuing to invest in safe and reliable operations to execute our cash improvement plan, to strengthen our investment-grade balance sheet and repay the 2026 and 2027 debt maturities we pre-funded in 2025. Now let's turn to slide nine, and I'll provide a brief overview of our segment results. Our business portfolio generated $615 million of EBITDA during the first quarter. Profitability improved across most businesses, led by stronger polyolefin margins and volumes, partially offset by reduced technology licensing activity. With that, I will turn the call over to Kim. Thank you, Agustín Izquierdo. Let's turn to slide 10 to discuss the performance of Olefins and Polyolefins-Americas segment. During the first quarter, O&P-Americas EBITDA was $327 million, double the prior quarter. In polyethylene, integrated margins improved due to favorable feedstock costs and successful contract price increases for polyethylene in both January and March. In March, export prices for polyethylene significantly increased as global production was impacted by the Middle East conflict. These benefits were partially offset by the impacts of Winter Storm Fern and the higher gas prices earlier in the quarter. Our first quarter operating rate for the segment was approximately 85%, with our crackers running at approximately 95%. During the first quarter, North American polyethylene sales for the industry increased by 6.5% year-over-year, while inventories fell by 7.6%. March domestic and overall sales volumes for North American polyethylene industry were the strongest since 2020. In the second quarter, we expect higher margins and volumes given the global supply tightness. Our order books are strong with April orders for polyethylene 20% above pre-war averages. We have announced substantial price increases to capture this momentum, including a cumulative $0.50 per pound in polyethylene across April and May, in addition to the gains realized in the first quarter, and $0.10 per pound polypropylene spread increases in both months. With ongoing supply constraints, North America is positioned to move from net importer to net exporter to meet stable global demand for polypropylene. We are focused on maximizing operating rates to meet the gap in global supply and expect 90% utilization of our nameplate capacity across the segment during the second quarter. The hard work in our value enhancement program and cash improvement plan is starting to add value through higher productivity and reliability at lower costs. Moving on to slide 11. Earlier, Peter showed the dramatic impact of the ongoing war in Iran on the ethylene cost curve. Here we outline the direct and indirect effects of the war on the production of ethylene, polyethylene, and polypropylene. In the Middle East, production has faced three principal challenges during the conflict. First, some plants have been hit directly, immediately impacting production with time to repair and restart unclear. Secondly, feedstock availability has been challenged, impacting plant operating rates or ability to operate at all. Thirdly, for plants where the normal route to market included passage through the Strait of Hormuz prior to the conflict, these plants have faced logistical bottlenecks resulting in the increased cost and time to market, and in some cases, reduced operating rates. Production in Asia has been primarily impacted by reduced feedstock availability. In China, which sources as much as 50% of its crude and substantial share of its naphtha from the Middle East, we hear the government has instructed refiners to prioritize limited feedstock availability towards the production of transportation fuels instead of chemicals. Ethylene cracker operating rates have steadily declined over the course of the conflict. Overall, this has meant that more than 20% of the global capacity for ethylene, polyethylene, and polypropylene is currently impacted by the ongoing conflict, as shown in the red bars on the chart. This dwarfs the expected capacity additions this year and takes each of these markets from oversupplied to tight. These production impacts have led to higher prices to incentivize additional production from regions with stable supply, principally North America and Europe. LYB's portfolio is optimally positioned to take advantage of these commercial opportunities with 90% of our PE capacity and 70% of our PP capacity within North America and Europe. Lastly, I wanted to highlight that although the outlook is more positive than we expected earlier in the year, we remain mindful of the second-order effects of higher prices. A structurally short market is usually resolved through demand destruction, which we see no evidence of currently or higher production. History has shown packaging demand remains robust in such scenarios. Demand for durable goods has already been consistently at a low level since 2022, and prices are still well below peak levels in 2021. We remain watchful and will adapt to how the market develops. We are confident that our actions to grow and upgrade the core, which has driven significant portfolio transformation, will continue to generate value in a range of macroeconomic scenarios. With that, let's turn to slide 12 as we review the results of the Olefins and Polyolefins-Europe, Asia, International segment. We reduced our first quarter EBITDA loss to $6 million driven by higher volumes, improved reliability, and lower fixed costs. While higher raw material prices pressured cracker margins during the first quarter, product pricing began to catch up during March, and higher volumes and improved utilization rates are improving our fixed cost coverage. Our Middle East joint ventures operated largely as planned during the quarter. While the region represents a relatively small portion of our global capacity, these cost-advantaged assets remain an important part of our portfolio over the long term. After the end of the quarter, LYB reached an important milestone in our portfolio transformation with the completion of the sale of four European assets. We are now better positioned with increased resilience and greater flexibility to capture market upside by leveraging a greater proportion of low-cost capacity. Looking ahead to the second quarter, polymer margins are improving as our team passes through higher costs for energy and raw materials. Feedstock costs are likely to remain dynamic as the market adapts to the ongoing conflict. We are seeing improved regional demand in Europe due to lower imports from the Middle East and China. We are increasing our operating rates to approximately 80% across the segment during the second quarter. With that, I'll turn the call over to Aaron. Thank you, Kim. Please turn to slide 13 as we look at the Intermediates and Derivatives segment. In the 1st quarter, segment EBITDA sequentially increased to $224 million, driven by stronger volumes supported by improving market conditions, partially offset by unplanned downtime at our LaPorte and Bayport facilities in Houston. Margins strengthened in propylene oxide with improved adders and increased demand for glycols into de-icers. In Oxyfuels, results declined during the quarter to reflect typically low winter seasonal demand and margins. Margin pressures for Oxyfuels were compounded by higher butane costs in Europe, with improving Oxyfuels prices amid Middle East tensions providing only a partial offset towards the end of the quarter. Unplanned downtime at our Bayport PO/TBA asset beginning in March reduced EBITDA by approximately $40 million in the quarter. Crude oil remains the single largest variable affecting Oxyfuels margins. As a rule of thumb, a $1 change in crude oil prices translates to roughly a $20 million annualized impact on Oxyfuels earnings, assuming full production and all other factors remain constant. Historically, Oxyfuels margins in the U.S. and Europe have been comparable. However, this year we are seeing a divergence. In the U.S., butane and methanol prices have increased far less than crude. In Europe, butane prices are near record highs relative to crude, compressing margins. Additionally, the outage at our Bayport PO/TBA facility has temporarily limited our ability to fully capture the favorable U.S. market environment. In Acetyls, we saw improved seasonal demand as we moved through the quarter. However, this improvement was more than offset by unplanned downtime due to a delayed restart of the LaPorte acetyls assets following Winter Storm Fern. Despite this, the methanol business continued to run throughout the quarter, providing a stable earnings contribution that underscores our benefits from integration across the I&D portfolio. Overall, underlying demand trends and market fundamentals continued to improve, positioning the segment for favorable performance during the second quarter. In Oxyfuels, we expect meaningful margin improvement in the second quarter from stronger seasonal demand and reduced supply from the Middle East and China. The Bayport PO/TBA asset is expected to restart toward the end of the second quarter with an estimated earnings impact of approximately $25 million per week while down. Taken together, these elements position us well for improved Oxyfuels margins in the coming quarters. In Acetyls, volumes and margins are expected to improve following the LaPorte asset restart, supported by seasonal demand recovery and tight global supply. Across the segment, we are targeting approximately 75% operating rates during the second quarter. I will now turn the call over to Torkel. Thank you, Aaron. Please turn to slide 14 as we review results for the Advanced Polymer Solutions segment. First quarter EBITDA was $58 million. APS volumes increased across most business driven by typical seasonal demand. Our customer focus continues to deliver tangible results contributing to volume momentum. Margins declined given pricing raw material costs following the start of the Middle East conflict. Looking ahead, we expect soft near term demand in automotive and other durable goods markets. We expect higher costs for raw materials, energy and logistics to persist, and we are proactively passing these higher costs along our value chain. Nonetheless, we expect contractual limits on pricing velocity will pressure margins over the near term. Despite the changes in macro environment, we continue to transform our APS segment to a customer-centric growth business. Our focus on customer centricity, cost, productivity, and portfolio changes over the past couple of years has contributed to the continued earnings improvement as seen by the 55% increase in EBITDA in 2025, and now a 26% improvement year-over-year for the first quarter. We are confident the work we are doing will profitably transform the APS business and enable us to achieve our long-term goals. With that, I will return the call to Peter. Thank you, Torkel. Please turn to slide 15 and I will discuss the results for the technology segment. First quarter EBITDA of $18 million was lower than our prior guidance due to declining licensing activity with slower global polyolefins capacity growth and lower catalyst sales volumes following shipping constraints associated with the Middle East war. We expect improved results in the second quarter as revenue from timing of shipments are recognized and licensing revenue milestones increase. As a result, we estimate that the second quarter technology segment results will be only slightly lower than our fourth quarter 2025 results. Let me share our views on our key regional and products markets on slide 16. Ongoing supply disruptions across multiple value chains are tightening availability and supporting improved pricing and margins. These dynamics are favoring regions with stable access to energy, raw materials and logistics, where LYB and other producers are being called on to fill the gap in global supply. In North America, pricing initiatives are supported by improving seasonal demands, increased emphasis on security of supply, and rapidly rising export prices with margins reinforced by the U.S. cost advantage. In Europe, higher costs are being offset by higher product prices supported by increased demand for local production as imports from the Middle East and Asia decline. With fewer imports entering the region, profitability is improving. In Asia, feedstock disruptions continue to constrain supply, forcing lower operating rates. While capacity additions in China persist, prolonged shutdowns and technical issues with restarts could accelerate capacity rationalization across the region. Within packaging markets, demand remains resilient, supported by essential needs for food, healthcare, and non-durable consumer goods. Demand in building and construction remains muted amid broader macro uncertainty. Inflationary pressures from the war are likely to delay potential benefits from lower interest rates and the inevitable recovery in durable goods demand. In automotive, global production is expected to decline slightly year-over-year, with additional risk tied to the ongoing Middle East war only offset by modest growth in South Asia and South America. Finally, in Oxyfuels, geopolitical volatility is driving price and margin upside in the U.S. As we conclude today's call, I would like to acknowledge that throughout the first quarter, our team continued to make smart decisions to successfully navigate a rapidly changing environment. We maximize commercial opportunities with discipline, agility, and a clear vision to position LYB as the leader in our industry and deliver lasting value for all our stakeholders. Now with that, we're pleased to take your questions. Thank you, sir. Ladies and gentlemen, at this time, we will begin the question-and-answer session. We do ask you to limit to one question. Our first question comes from the line of David Begleiter with Deutsche Bank. Please proceed with your question. Thank you. Good morning. Peter, the consultants have a pretty sharp erosion of polyethylene price increases in the back half of the year. I suspect you differ that forecast. Can you talk to why that you think they were probably being too bearish on PE price in the back half of the year? Thank you. Thank you, David. Good question to start with. I think, four weeks ago nobody expected or predicted that we would get a $0.30 per pound price increase for polyethylene and a $0.07 per pound spread increase for polypropylene. Just, I continue to be a bit skeptical, I mean, about those outlooks. If you, if you look at our review and we said it in the prepared remarks, we see that this disruption is not to be measured in quarters. It's probably gonna to be multiple quarters, definitely not months. It's a very large shock that we are experiencing. It's very global. It's driven by both asset impacts and logistics. You know these things normalize very slowly. Reference, as we hear, will be given first of all, if you talk about the supply disruptions, to crude oil, then after that, fertilizers, I mean, for foods. How fast will that actually move, I mean, to petrochemicals, remain to be seen. Our view that we continue to have is that there will be a sustained geopolitical risk premium that will continue to steepen the cost curve. Even after a resolution, the market may retain a higher risk premium for crudes. Steeper global cost curve can persist also versus the pre-war conditions. As you know, physical damage is not something that can be recovered very quickly. From that perspective as well, I mean, restart timing is uncertain. Rerouting logistics, as I talked about, I mean, the common view that we currently have in the market is, until that rerouting logistics will be somehow stable. is probably gonna be more like, I don't know, nine months, 12 months. In addition to that, if you have all these outages, these outages can become permanent. They can eventually also accelerate, I mean, the rationalization. With regards, I mean, to more specific polyethylene pricing, let me hand over to Kim. Peter, thanks for kind of sharing the view of the impacts of the shock effect. I think the other thing to remind everybody is, you know, we yesterday got confirmation on the $0.30 in April. We've got $0.20 out there in May. If you think about history and you look back at kind of peak pricing in 2021, the pricing there was still $0.10-$0.15 per pound higher. We in 2021, that pricing could clearly go through the economies. I think it can again as we go forward. Without any correction to the supply-demand imbalance, I'm not sure why pricing would go down as Peter alluded to in his opening remarks. I politely disagree with the consultants. Thank you. Our next question comes from line of Patrick Cunningham with Citi. Please proceed with your question. Hi, good morning, and thanks for taking my question. Maybe just on I&D. I guess if you could walk through, you know, any of the structural changes you've seen from a cost curve and supply and demand point, standpoint, given the conflict. Then just, you know, related, if the conflict persists and the Bayport turnaround does wrap up, you know, where would you anticipate operating rates and margins to trend in the back half? Yeah. Thank you for the question. I would start by saying, generally we have pricing power across the board in almost all of our products. We've seen, as examples in methanol pricing, it's doubled in the last three months from $300 a ton to $600 a ton, really across all regions. You take that through the acetyls chain. We've seen, acid pricing up 50% over that same timeframe. We've seen VAM pricing up 100% over that same timeframe. As I said, we've got pricing power really across the board from an acetyls perspective. Cost curve and acetyls relatively flat in both acid and VAM. When you look at our methanol cost curve, you know, U.S. natural gas pricing is the lowest across all regions right now. Obviously, we're advantaged in that spot. When I shift over to the PO business, both of our technologies, we actually just ran the cost curve last month. Both of our technologies, PO/TBA and PO/SM, are in the first quartile of the cost curve. It obviously puts us in an advantaged position. As you heard in my plan remarks, we currently plan to run our capacities at 75%. Utilization in the second quarter, a lot of that is due to the unplanned downtime in Bayport. As that site gets back up and running towards the end of the quarter, we do expect to run closer to 95%-100% full rates. I think one may say, I've been there, I mean, at Bayport, about 10 days ago, and what I witnessed is all hands on deck. People are working very diligently, different work streams, so that we get the site back up and running latest by the end of Q2. Isn't it, Aaron? That's correct. Yeah. Thank you. Our next question comes from line of Duffy Fischer with Goldman Sachs. Please proceed with your question. Yeah, good morning. Two questions maybe on O&P-Americas. If the situation in the Middle East persists, you know, it seems like we're consuming more molecules every day than we're producing today. What happens if we have to try to price polyethylene to destroy demand? I don't think we've ever done that. How high do you think that needs to go to balance supply-demand? The second one is, other than the starting point was lower for polypropylene versus polyethylene, how are you seeing those two chains play out relative to each other? Is one benefiting from this more than the other? Hi, Duffy. Good question. Before I answer the question, I mean, on O&P-Americas and how high does a polyethylene price actually have to go before you see demand destruction, let me remind everybody, I mean, that the vast majority of polyethylene is going into consumables. A lot of that, as you know, is going into packaging. If you go in a market environment, just like we have seen, I mean, in the pandemic and during a financial crisis, in 2008, 2009, behavior of people changes. People don't go as much to restaurants, but they consume at home, which means more packaging. That's one element. Not necessarily because one goes into a recession that leads, I mean, to destruction of demand for polyethylene. Secondly, it continues to be, I mean, the lowest cost, alternative and most efficient alternative, compared, I mean, to other materials, if you wanna package, or if you wanna produce piping, et cetera. Let's not forget these other alternatives also get more expensive in the current market environments. With that, Kim? Yeah, I'd just make a couple other comments. You know, we've had at least three years, maybe four years of, I'd say, tempered durable demand. You've got pent-up demand for durables. You saw these pricing levels pull through for polyethylene for sure in 2021. You asked a question about polypropylene. Polypropylene price today is $0.60-ish, we'll call it, lower than it was in 2021. You have a lot of pricing power there, and we are well-positioned to capitalize on that. You know, from a polypropylene perspective, between the Middle East production and then think of the LPG that feeds some of the PDH units in the Asia region, probably 70%+ of that market is impacted right now. I think the sleeping giant will be polypropylene as this continues to progress. Talking to a lot of my friends, I mean, in Europe, I see already that their behavior is starting to change. Instead of taking a weekend trip somewhere or taking a long holiday, I see that they are thinking about, "We not refurbish, we not stay at home, take a shorter holiday, locally, two day trips." We've seen that behavior in 2021 as well as we came out of the pandemic. Quite a lot of moving elements that we have here that I think one should consider. Thank you. Our next question comes from the line of Jeff Zekauskas with JPMorgan. Please proceed with your question. Thanks very much. The export price of polyethylene is maybe $1,640 a ton, and the price of polyethylene in Asia is maybe $1,285 a ton. For at least from our point of view, you know, maybe Asia is lower by $350 a ton. Why is that? Naphtha values in Asia have really jumped from about $600 a ton to $1,100 a ton, we really haven't seen that kind of raw material inflation, echoed or covered in the polyethylene prices. Can you give us an idea of what's going on? Jeff, I'll take that question. I think there's a couple of different components to that. You know, from a China perspective, they have a much bigger built-in pricing buffer than a lot of the other regions. They had significant crude inventories coming into pre-war. You know, you've heard anything from 4 months-6 months, so let's just generically call it five. You also have different buying behaviors, you have different inventory positions throughout. Let's walk through some of that. Many of the sites are integrated refineries that are processing the crude naphtha to naphtha crackers to polyethylene. That inventory today, two months into this war, is still crude that was bought at a discount to $60 pre-war. You've got coal to olefins production, which sets the floor for the pricing in China. Coal price hasn't changed significantly throughout this, similar to kind of North American ethane. You've got the floor being set by the lowest cost production, which is CTO. You've got relatively low priced crude flowing through those crackers. You've got inventory that they had in the system. When the war first broke out, you saw their pricing increase, recently you've seen their pricing hold or decrease as they're depleting the inventory that they have on hand, selling it to other parts of Southeast Asia. Their buffer, the way they operate their system, is slightly different than the rest of the world, but they are not exporting to regions that we are competing with in North America or in Europe. Maybe enhancing a little bit from a more conceptual point of view, Jeff, in especially what we are all waiting for on the outcome of the anti-involution measures. We continue to see that focus on replacement of old assets instead of newly developed projects. You saw the results in Q1 of our technology business. This is the lowest since, what, 15 years that we have seen in terms of demand, I mean, for licenses. We've also seen that some priorities are changing. Even projects that already have been approved by the NDRC for the, for the previous five-year plan, priorities are changing and targets for the replacement of the old assets is 2028, 2029. That's what we hear, I mean, on the ground. Which as a consequence, of course, could also mean reducing availability of cash for new projects, which again, explains why we don't see a lot of demand, I mean, for new licenses. It has definitely not disappeared because at those price levels in China, you see that the operations are running in crackers and polyethylene at lowest technical capacity. You see that players that are not integrated eventually have idled, have shut down their capacities. That's the picture on polyethylene. On polypropylene, it's even more stringent because a lot of PDH-PP plants, it's about 50%, Kim, of the capacity? Correct. Yeah. That is currently not operating. Thank you. Our next question comes from line of Vincent Andrews with Morgan Stanley. Please proceed with your question. Thank you and good morning. First of all, congratulations to Dave Kinney on a great run. Best wishes in your retirement. If I could ask you, Peter, on O&P-EAI, you're bringing operating rates up, which I assume means you're expecting profits. You've sold the assets, and that's gonna improve the cost structure. What level of profitability and, you know, and give us a wide range, would you expect for the second quarter, you know, as you see markets improve, your production levels come up, maybe you're selling out of some inventory as well. How should we be thinking about O&P-EAI in 2Q and maybe 3Q to the extent you can comment that far? Yeah. Thanks, Vincent. Of course, also thanks for your congratulations, I mean, to Dave. Has been quite a run in my four years working with him together. On EAI, I mean, let me first, I mean, focus here then on Europe. Everybody saw that we closed during the night, so early morning, Houston time on Velogy, the sale of our four assets. If I put that a bit in context as well with regards, I mean, to the contribution that part of the business portfolio has made to the overall LYB. Well, you know, the pretty much the numbers. It was small or even negative in 2025 and even in Q1. The focus, of course, for us, strategically has been that we really have the right portfolio moving forward. The portfolio in Europe that helps, let's say, on increasing our mid-cycle EBITDA margins. I remember once I have shown a slide in an earnings call with historic mid-cycle EBITDA margins globally for LYB of around 18%, and then with all the portfolio measures, increasing that to 21%+, which is quite attractive. Now, this helps, of course, by doing so because we can pool our CapEx to the assets that really have mid-cycle margins, above mid-cycle margins, much more profitable assets, which as a consequence means a reduction in the scope of Velogy for us, LyondellBasell, of about EUR 110 million per year in CapEx. What we have said in the past as well, a reduction in fixed costs directly related to that scope of about EUR 400 million per year. If margins, what we wish, of course, also to the new owner of the business, if margins continue to go up in Europe, we have, remember the potential of an earn-out of about EUR 100 million as well. Of course, we still will have a very interesting but more differentiated portfolio of products in Europe, with an ethylene capacity which is a bit more than 1 million tons, 1.5 million tons of polyethylene capacity and a bit more, I mean, on polypropylene capacity. And into that rural concept, you know, we also have the investments in Saudi Arabia at the West Coast in our polypropylene joint venture, where we continue to work on the second phase to expand and double the capacity of that joint venture. Moving forward with a different portfolio, we should be able over time, including that, of course, our MoReTec investments, we should be able, over time, to again have very attractive mid-cycle margins in Europe and not having a business approach whereby margins are being diluted. Maybe just to make a couple quick comments. You know, Europe typically sees 25% import on the polymer side. With the problem with the Strait of Hormuz, they're not seeing that. The supply-demand is very tight, continues to give you pricing power on the polymer side. The wild card, as everybody's alluded to, is the price of feedstocks. For example, some people have asked us, you know, pre-call, why are we only operating 80% in Europe? Because we wanna make sure the decisions that we make in Europe are based on sound integrated margin pull-through. In some cases, you know, we also face the same challenge that others do about the monomer availability at an affordable price point to run through some of our smaller assets that are non-integrated at the moment. We continue to see positive momentum. Just as a rule of thumb, a $100 per ton increase on an annualized basis is about $280 million. Thank you. Our next question comes from the line of John Roberts with Mizuho Securities. Please proceed with your question. Thank you. In the APS segment, how long do you think it will take to get your pricing to get spreads back with the underlying polyolefin cost increases that are being passed through there? Will the tightness in the polyolefins market at all tighten the engineered plastics industry as well? For the non-contracted business, we have aggressively moved, and we see actually, pretty good acceptance of the price increases, because the whole market is moving up. It's really the contracted, and some of those are monthly, and some of them are quarterly. It's mostly the quarterly part, where there's a delay. What we see, in our segment is actually market demand is surprisingly strong, and we see some movement in particular packaging and durable goods where demand is strong in the Western world, so Americas region and Europe. From what we see is that basically our customer demand is strong because there's less import of finished goods coming in from Asia, as well as from, plastics films, packaging films. That's helping our customers with actually pretty strong demand. We'll see how long that lasts, but that's a positive sign in terms of the market for our business. Thank you. Our next question comes from the line of Kevin McCarthy with Vertical Research Partners. Please proceed with your question. Yes, thank you. I'd echo my congratulations to Mr. Kinney. Very much appreciate your partnership over the years and best of luck to you. My question relates to O&P-Americas. If we look back at history, that business earned quarterly EBITDA between $1.5 billion and $1.6 billion at the last peak in the middle quarters of 2021. My question would be, you know, is that sort of level in your mind realistic or unrealistic in today's environment if the conflict were to persist? Maybe you could compare and contrast what you're seeing today versus what you saw back then. Let me start with a couple of comments on your very good question, Kevin, and then hand over also to Kim to give you a little bit more details on this. Well, Kim already said, I mean, that we have now a settlement of a $0.30 per pound in April after we had $0.10 per pound in March. If you take that settlement into consideration, then we're still, in terms of margins, $0.10-$0.15 per pound in terms of pricing. Sorry. In terms of pricing. In terms of pricing. We're still $0.10-$0.15 per pound below what we have seen in 2021. It's only $0.10-$0.15 per pound. That means, as a consequence with the price increase announcements that we continue to feel very strong about for the next month, we would get on that level or above that level of 2021. That is just the pricing element. If you look at it from a margin perspective, of course, we know that the margins are going up because ethane is currently much lower than it was at the end of last year, beginning of this year, which of course also has to do with the fact, I mean, that there is such a huge demand, I mean, for natural gas. You see that the spreads actually are going up. As a consequence, I would say, sure. I mean, nothing is impossible, if you look at what is currently going on, and we alluded to the fact that polyethylene is very robust also in inflationary scenarios. Kim, anything you wanna add? I'll just go back to a couple of the comments that I made earlier to try to connect a few of the dots. I think as it relates to North American polyethylene margins, what we see is, and CMA's forecast is similar, this is where we do agree with the consultants, that mid-cycle margins will be there in the second quarter. If you go back and look at 2021 mid-cycle margins for PE, yes, I think we're gonna be in a very similar situation. I also said earlier that in 2021 that we had a $0.60 higher price of polypropylene. I think it really depends how much polypropylene runs up. I don't think it will run up as fast as polyethylene has, but I do think the spreads will continue to increase. I would look at those two components differently when you're trying to look at how we performed in 2021 versus how we might perform in 2026. Thank you. Our next question comes from the line of Frank Mitsch with Fermium Research. Please proceed with your question. Thank you, and I need to come clean, Mr. Kinney. On the PPG call, I told Vince on the occasion of his retirement that he was the best IR ever. To be frank, it was always you. Best wishes, my friend. I'm sure we'll stay in touch. Aaron, I wanna come back on the I&D operating rates for the second quarter. You said 75%. Sure. given the outages that you have. You said that you're gonna end it, you know, at 95%-100%, you know, when you get everything back up and running. Is that sort of the run rate that we should be expecting in the third quarter? At, you know, as you see, as you can look out into the future? And then also for the first quarter, I think you guys guided to 85% operating rate in I&D, and I was curious as to what that actually came in at, given the outages. Thanks. Yeah. Thanks for the question. I guess I have to be careful about what I, what I promise in these calls, 95%-100%. Obviously, anything that we have available to us, we're gonna be running full. We still have some limitations at our LaPorte site in the asset unit that's limiting us to get to full rates. Obviously, once Bayport is back up and running, we will be running everything that we have at full capacity moving forward. 95%-100%, I wouldn't necessarily use that, but we will be running at benchmark rates across the board. Thank you. Our next question comes from the line of Mike Sison with Wells Fargo. Please proceed with your question. Hey, good morning, and congrats to Dave as well. In terms of polypropylene, you've talked about it a couple times. It's, you know, margins have been not a lot for the last couple years. Are, is that business or can that product line turn positive? It used to generate a good amount of EBITDA for polypropylene. How do you think that shapes up this year if the pricing outlook sort of holds? Yeah. I mean, the possibility, of course, I mean, Kim said it. I mean, we have the biggest upside, I mean, the sleeping giants. We have the biggest upside on the polypropylene side, and the market dynamic has completely changed. Normally, I mean, you know, the cash cost curves in polypropylene are very flat, I mean, between the different regions. Of course, now, that is changing the dynamic that we are having in the United States, where, as you know, we have a lot of our assets. Normally, polypropylene stayed in the markets where it was produced. Now, of course, there is a lot of demand because of the loss of propane to Asian polypropylene producers. A lot of demand, I mean, globally, to export, polypropylene, which of course uplifts, I mean, the markets, the margins, I mean, in the markets. Kim? I would agree with you, Peter. I think, you know, we've been operating polypropylene in Europe and in the U.S., call it 70%-75% the last two years. You've got a 20%, 15%-20% operating rating improvement opportunity as well as spread. The longer this goes on, the better. I think approximately what 70- From a polypropylene perspective. Yeah. I think probably what 70% of supply is impacted by the Strait of Hormuz's closure. Directly or indirectly, absolutely. Yeah. Yes. You've got the volume you lose out of the Middle East plus the LPG feed to the PDH. Yeah. Right. Thank you. Our next question comes from the line of Josh Spector with UBS. Please proceed with your question. Hi, good morning. Just wanted to ask a comment about licensing revenue and technology. I mean, I know you've been at a low level for some time here, and you've kinda highlighted there's been little activity in terms of looking at new projects, but your near-term outlook comments says that you expect that to increase. Is that a lag of just some existing kind of maybe discussions coming to fruition, or are you seeing actually more interest in, you know, certain other product chains about adding more capacity now? Thank you, Josh. I mean, it is a lag. It's simply because of some milestones that are being accomplished, and therefore, on the licensing, so not the catalyst sale, but on the licensing, Q2 should be better than Q1, as I said in the prepared remarks. It is definitely not related to having a higher demand. I said it before, demand is historically at the lowest level. We see projects that already were progressing, let's say around a couple of milestones that are now, as they call it, I mean, in the reserved status. They're not moving forward. They're being looked at again, and all that will delay, let's say the investments from already, let's say, last year, low licensing. The year before we saw reduced licensing. All that will come to fruition then in, let's say two, three, four years from now. Yeah. That means that there will not be a lot of investments that will come on stream. Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I'll turn the floor back to Peter Vanacker for any final comments. Thank you again for all the thoughtful questions. The events of the past two months have transformed the global cost curve for petrochemicals and created a massive gap in supply for LYB's essential products. While we all look forward to peace and the normalization of traffic through the Strait of Hormuz, the economic and logistical impacts of this conflict will persist many quarters beyond the eventual end of the disruption. Of course, at LYB, we're ramping up our cost advantage U.S. capacity to address the global supply gap for both domestic and export customers. In Europe, we're passing through higher costs for energy and raw materials so that local production can once again profitably serve local customer needs. Our global polypropylene capacity, as we alluded to before, the sleeping giant within LYB, is increasingly needed to serve global demands. You can be confident LYB will remain focused on our strategic priorities and long-term value creation in this dynamic environment. We hope you all have a great weekend. Stay well and stay safe. Thank you. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker 13: Hello, welcome to the LyondellBasell teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes. Following today's presentation, we will conduct a question-and-answer session. I would now like to turn the call over to Mr. David Kinney, Head of Investor Relations. Sir, you may begin. Hello, welcome to the LyondellBasell teleconference. hello welcome to the lyondellbasell teleconference At the request of LyondellBasell, this conference is being recorded for instant replay purposes. at the request of lyondellbasell this conference is being recorded for instant replay purposes Following today's presentation, we will conduct a question- and- answer session. following today's presentation we will conduct a question- and- answer session I would now like to turn the call over to Mr. David Kinney, Head of Investor Relations. i would now like to turn the call over to mr david kinney head of investor relations Sir, you may begin. sir you may begin

Speaker 4: Thank you, operator, and welcome everyone to today's call. Before we begin the discussion, I would like to point out that a slide presentation accompanies the call and is available on our website at investors.lyondellbasell.com. Today, we will be discussing our first quarter results while making reference to some forward-looking statements and non-GAAP financial measures. We believe the forward-looking statements are based upon reasonable assumptions, and the alternative measures are useful to investors. Nonetheless, the forward-looking statements are subject to significant risk and uncertainty. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our investor relations website. Thank you, operator, and welcome everyone to today's call. thank you operator and welcome everyone to today's call Before we begin the discussion, I would like to point out that a slide presentation accompanies the call and is available on our website at investors.lyondellbasell.com. before we begin the discussion i would like to point out that a slide presentation accompanies the call and is available on our website at investors.lyondellbasell.com Today, we will be discussing our first quarter results while making reference to some forward-looking statements and non-GAAP financial measures. today we will be discussing our first quarter results while making reference to some forward-looking statements and non-gaap financial measures We believe the forward-looking statements are based upon reasonable assumptions, and the alternative measures are useful to investors. we believe the forward-looking statements are based upon reasonable assumptions and the alternative measures are useful to investors Nonetheless, the forward-looking statements are subject to significant risk and uncertainty. nonetheless the forward-looking statements are subject to significant risk and uncertainty We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our investor relations website. we encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings which are also available on our investor relations website Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures such as EBITDA and earnings per share, excluding identified items. Additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures, together with other disclosures, including the earnings release and our business results discussion. A recording of this call will be available by telephone beginning at 1:00 P.M. Eastern Time today until May 31st by calling 877-660-6853 in the United States and 201-612-7415 outside the United States. The access code for both numbers is 13746217. Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures such as EBITDA and earnings per share, excluding identified items. comments made on this call will be in regard to our underlying business results using non-gaap financial measures such as ebitda and earnings per share excluding identified items Additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures, together with other disclosures, including the earnings release and our business results discussion. additional documents on our investor website provide reconciliations of non-gaap financial measures to gaap financial measures together with other disclosures including the earnings release and our business results discussion A recording of this call will be available by telephone beginning at 1:00 P.M. a recording of this call will be available by telephone beginning at 1:00 p.m Eastern Time today until May 31st by calling 877-660-6853 in the United States and 201-612-7415 outside the United States. eastern time today until may 31st by calling 877-660-6853 in the united states and 201-612-7415 outside the united states The access code for both numbers is 13746217. the access code for both numbers is 13746217 Joining today's call will be Peter Vanacker, LyondellBasell's Chief Executive Officer, our CFO, Agustín Izquierdo, Kimberly Foley, our Executive Vice President of Global Olefins & Polyolefins, Aaron Ledet, our EVP of Intermediates & Derivatives, and Torkel Rhenman, our EVP of Advanced Polymer Solutions. With that being said, I would now like to turn the call over to Peter. Joining today's call will be Peter Vanacker, LyondellBasell's Chief Executive Officer, our CFO, Agustín Izquierdo, Kimberly Foley, our Executive Vice President of Global Olefins & Polyolefins, Aaron Ledet, our EVP of Intermediates & Derivatives, and Torkel Rhenman, our EVP of Advanced Polymer Solutions. joining today's call will be peter vanacker lyondellbasell's chief executive officer our cfo agustín izquierdo kimberly foley our executive vice president of global olefins & polyolefins aaron ledet our evp of intermediates & derivatives and torkel rhenman our evp of advanced polymer solutions With that being said, I would now like to turn the call over to Peter. with that being said i would now like to turn the call over to peter

Speaker 15: Thank you all for joining today's call as we discuss our first quarter results. Thank you, Dave. As some of you know, Dave Kinney is retiring after a decade leading Investor Relations and nearly 35 years with the company. I am sure you will all join me in congratulating Dave for his significant contributions to the company and wishing him well in retirement. Succeeding Dave is David Dennison, who brings nearly 30 years of industry experience to the role across planning, commercial, and strategic functions, including most recently in the circular and low-carbon solutions business. I am confident you will find David to be another great partner as our new Head of Investor Relations. Before we turn to our performance, I want to acknowledge the human impact of the tragic ongoing situation in the Middle East. Thank you all for joining today's call as we discuss our first quarter results. thank you all for joining today's call as we discuss our first quarter results Thank you, Dave. thank you dave As some of you know, Dave Kinney is retiring after a decade leading Investor Relations and nearly 35 years with the company. as some of you know dave kinney is retiring after a decade leading investor relations and nearly 35 years with the company I am sure you will all join me in congratulating Dave for his significant contributions to the company and wishing him well in retirement. i am sure you will all join me in congratulating dave for his significant contributions to the company and wishing him well in retirement Succeeding Dave is David Dennison, who brings nearly 30 years of industry experience to the role across planning, commercial, and strategic functions, including most recently in the circular and low-carbon solutions business. succeeding dave is david dennison who brings nearly 30 years of industry experience to the role across planning commercial and strategic functions including most recently in the circular and low-carbon solutions business I am confident you will find David to be another great partner as our new Head of Investor Relations. i am confident you will find david to be another great partner as our new head of investor relations Before we turn to our performance, I want to acknowledge the human impact of the tragic ongoing situation in the Middle East. before we turn to our performance i want to acknowledge the human impact of the tragic ongoing situation in the middle east The suffering and trauma of war is catastrophic for all involved, and our thoughts are with those affected. Our first priority is the continued safety of our people, and we have already executed on protocols to protect our employees and contractors in the region. This situation in the Middle East has materially disrupted global energy and petrochemicals markets. We expect the impacts will extend beyond the end of the year, with much of the world's petrochemical capacity constraints are shut down. LyondellBasell's U.S. and European production capacity is a critical resource for filling the global gap in supply for our essential products. Supported by our operational excellence and the work from our Value Enhancement Program, we are increasing production to meet these demands. At the same time, we remain focused on executing our strategy. Our portfolio transformation has reached another significant milestone with the sale of four European assets. The suffering and trauma of war is catastrophic for all involved, and our thoughts are with those affected. the suffering and trauma of war is catastrophic for all involved and our thoughts are with those affected Our first priority is the continued safety of our people, and we have already executed on protocols to protect our employees and contractors in the region. our first priority is the continued safety of our people and we have already executed on protocols to protect our employees and contractors in the region This situation in the Middle East has materially disrupted global energy and petrochemicals markets. this situation in the middle east has materially disrupted global energy and petrochemicals markets We expect the impacts will extend beyond the end of the year, with much of the world's petrochemical capacity constraints are shut down. we expect the impacts will extend beyond the end of the year with much of the world's petrochemical capacity constraints are shut down LyondellBasell's U.S. and European production capacity is a critical resource for filling the global gap in supply for our essential products. lyondellbasell's u.s and european production capacity is a critical resource for filling the global gap in supply for our essential products Supported by our operational excellence and the work from our Value Enhancement Program, we are increasing production to meet these demands. supported by our operational excellence and the work from our value enhancement program we are increasing production to meet these demands At the same time, we remain focused on executing our strategy. at the same time we remain focused on executing our strategy Our portfolio transformation has reached another significant milestone with the sale of four European assets. our portfolio transformation has reached another significant milestone with the sale of four european assets While increased cash generation and profitability will improve our credit metrics, we are maintaining our discipline on capital expenditures, and we are undertaking deliberate actions to further streamline our fixed costs and underpin our ability to generate attractive value during both cyclical highs and lows. With that being said, let's take a moment to review LYB's safety performance with slide number three. Safety remains foundational to how we operate. Our year-to-date total recordable incident rate of 0.13 is among the best in our sector and reflects the commitment of our employees and contractors. Turning to slide four, the Middle East conflict and its unprecedented effects on energy prices and global logistics has shifted the paradigm for petrochemicals. While increased cash generation and profitability will improve our credit metrics, we are maintaining our discipline on capital expenditures, and we are undertaking deliberate actions to further streamline our fixed costs and underpin our ability to generate attractive value during both cyclical highs and lows. while increased cash generation and profitability will improve our credit metrics we are maintaining our discipline on capital expenditures and we are undertaking deliberate actions to further streamline our fixed costs and underpin our ability to generate attractive value during both cyclical highs and lows With that being said, let's take a moment to review LYB's safety performance with slide number three. with that being said let's take a moment to review lyb's safety performance with slide number three Safety remains foundational to how we operate. safety remains foundational to how we operate Our year-to-date total recordable incident rate of 0.13 is among the best in our sector and reflects the commitment of our employees and contractors. our year-to-date total recordable incident rate of 0.13 is among the best in our sector and reflects the commitment of our employees and contractors Turning to slide four, the Middle East conflict and its unprecedented effects on energy prices and global logistics has shifted the paradigm for petrochemicals. turning to slide four the middle east conflict and its unprecedented effects on energy prices and global logistics has shifted the paradigm for petrochemicals At the high end of the cost curve, naphtha-based producers in China and Southeast Asia have faced sharply higher costs driven by the compound impact of higher crude prices, the loss of sanctioned crude discounts, and weak co-product values. In addition, pre-conflict, approximately half of Asia's imported crude came from the Middle East. The war has impacted security of supply for Asian crude and petrochemical feedstocks, leading to lower production and a substantial reduction of exports from the region. At the low end of the cost curve, U.S. ethane economics have improved, strengthening the cost advantage of LYB's U.S. Gulf Coast assets with low-cost raw materials and increased production to serve increased global demands. In Europe, higher prices are now offsetting higher energy and feedstock costs as imports from the Middle East and China decline. At the high end of the cost curve, naphtha-based producers in China and Southeast Asia have faced sharply higher costs driven by the compound impact of higher crude prices, the loss of sanctioned crude discounts, and weak co-product values. at the high end of the cost curve naphtha-based producers in china and southeast asia have faced sharply higher costs driven by the compound impact of higher crude prices the loss of sanctioned crude discounts and weak co-product values In addition, pre-conflict, approximately half of Asia's imported crude came from the Middle East. in addition pre-conflict approximately half of asia's imported crude came from the middle east The war has impacted security of supply for Asian crude and petrochemical feedstocks, leading to lower production and a substantial reduction of exports from the region. the war has impacted security of supply for asian crude and petrochemical feedstocks leading to lower production and a substantial reduction of exports from the region At the low end of the cost curve, U.S. ethane economics have improved, strengthening the cost advantage of LYB's U.S. at the low end of the cost curve u.s ethane economics have improved strengthening the cost advantage of lyb's u.s Gulf Coast assets with low-cost raw materials and increased production to serve increased global demands. In Europe, higher prices are now offsetting higher energy and feedstock costs as imports from the Middle East and China decline. gulf coast assets with low-cost raw materials and increased production to serve increased global demands. in europe higher prices are now offsetting higher energy and feedstock costs as imports from the middle east and china decline While this chart focuses on ethylene, we find similar dynamics in play across nearly all LYB products. Clearly, we are operating in a dynamic environment where dramatic changes are possible within short time periods. Our global operational and marketing network has already yielded valuable insights, which have enabled us to rapidly adapt to the changing environments. These insights inform our position that the impacts from the war will be long-lasting. We believe the geopolitical risk premium for crude oil will persist even after a resolution to the current conflict, and discounts for sanctioned crudes are unlikely to return. Both of these impacts should durably steepen the global cost curve relative to pre-war conditions. Across feedstocks and petrochemicals, physical damage from the war and accelerated shutdowns will require time and resources to repair. While this chart focuses on ethylene, we find similar dynamics in play across nearly all LYB products. while this chart focuses on ethylene we find similar dynamics in play across nearly all lyb products Clearly, we are operating in a dynamic environment where dramatic changes are possible within short time periods. clearly we are operating in a dynamic environment where dramatic changes are possible within short time periods Our global operational and marketing network has already yielded valuable insights, which have enabled us to rapidly adapt to the changing environments. our global operational and marketing network has already yielded valuable insights which have enabled us to rapidly adapt to the changing environments These insights inform our position that the impacts from the war will be long-lasting. these insights inform our position that the impacts from the war will be long-lasting We believe the geopolitical risk premium for crude oil will persist even after a resolution to the current conflict, and discounts for sanctioned crudes are unlikely to return. we believe the geopolitical risk premium for crude oil will persist even after a resolution to the current conflict and discounts for sanctioned crudes are unlikely to return Both of these impacts should durably steepen the global cost curve relative to pre-war conditions. both of these impacts should durably steepen the global cost curve relative to pre-war conditions Across feedstocks and petrochemicals, physical damage from the war and accelerated shutdowns will require time and resources to repair. across feedstocks and petrochemicals physical damage from the war and accelerated shutdowns will require time and resources to repair Some older, smaller, and less economical plants under evaluation for potential rationalization may not restart at all. This could provide a lasting benefit to supply and demand balances. Of course, we are mindful of the potential for second-order impacts, like demand destruction for discretionary spending, especially if oil prices remain at recent highs. We remain confident that our cost advantage asset base and deliberate execution will enable LYB to continue to generate value through the cycle. Let's turn to slide five as we discuss the tangible steps we are taking to execute on our strategy to build a more resilient LYB. Over the past three years, we have executed on significant portfolio transformation. This included ceasing refining operations, closing our Dutch PO joint venture, divesting our EO&D business, and the ongoing transformation of our APS portfolio. Some older, smaller, and less economical plants under evaluation for potential rationalization may not restart at all. some older smaller and less economical plants under evaluation for potential rationalization may not restart at all This could provide a lasting benefit to supply and demand balances. this could provide a lasting benefit to supply and demand balances Of course, we are mindful of the potential for second-order impacts, like demand destruction for discretionary spending, especially if oil prices remain at recent highs. of course we are mindful of the potential for second-order impacts like demand destruction for discretionary spending especially if oil prices remain at recent highs We remain confident that our cost advantage asset base and deliberate execution will enable LYB to continue to generate value through the cycle. we remain confident that our cost advantage asset base and deliberate execution will enable lyb to continue to generate value through the cycle Let's turn to slide five as we discuss the tangible steps we are taking to execute on our strategy to build a more resilient LYB. let's turn to slide five as we discuss the tangible steps we are taking to execute on our strategy to build a more resilient lyb Over the past three years, we have executed on significant portfolio transformation. over the past three years we have executed on significant portfolio transformation This included ceasing refining operations, closing our Dutch PO joint venture, divesting our EO&D business, and the ongoing transformation of our APS portfolio. this included ceasing refining operations closing our dutch po joint venture divesting our eo&d business and the ongoing transformation of our aps portfolio As we announced this morning, we reached another significant milestone in our portfolio transformation by completing the sale of four European assets. This transaction sharpens the focus of our capital allocation towards strategic assets that advance long-term value creation for LYB. We extend our gratitude to our friends and colleagues that helped accomplish this transaction. We are particularly thankful for those who are transferring to the new organization for their contributions, professionalism, and resilience throughout the process. As they transition to a standalone business, we wish them and the new company success in the next chapter ahead. We continue to benefit from our team's vigorous work on the cash improvement plan. We are making progress toward our target of $500 million of incremental cash flow this year, which will bring the cumulative total since 2025 to $1.3 billion. As we announced this morning, we reached another significant milestone in our portfolio transformation by completing the sale of four European assets. as we announced this morning we reached another significant milestone in our portfolio transformation by completing the sale of four european assets This transaction sharpens the focus of our capital allocation towards strategic assets that advance long-term value creation for LYB. this transaction sharpens the focus of our capital allocation towards strategic assets that advance long-term value creation for lyb We extend our gratitude to our friends and colleagues that helped accomplish this transaction. we extend our gratitude to our friends and colleagues that helped accomplish this transaction We are particularly thankful for those who are transferring to the new organization for their contributions, professionalism, and resilience throughout the process. we are particularly thankful for those who are transferring to the new organization for their contributions professionalism and resilience throughout the process As they transition to a standalone business, we wish them and the new company success in the next chapter ahead. as they transition to a standalone business we wish them and the new company success in the next chapter ahead We continue to benefit from our team's vigorous work on the cash improvement plan. we continue to benefit from our team's vigorous work on the cash improvement plan We are making progress toward our target of $500 million of incremental cash flow this year, which will bring the cumulative total since 2025 to $1.3 billion. we are making progress toward our target of $500 million of incremental cash flow this year which will bring the cumulative total since 2025 to $1.3 billion We remain focused on disciplined management of trade working capital, which despite higher volumes and prices, was $450 million lower on March 31st than a year prior. We are also continuing to streamline the organization, including our executive committee. The effects will flow through the organization over the coming months to create further efficiencies. First quarter fixed costs across the company are already under $50 million lower than first quarter of 2025, including closure costs. Since the end of 2024, we have reduced headcount by approximately 3,000 positions or 15% through the combination of fixed cost reductions and portfolio management, including the sale of our European assets announced earlier this morning. Our initiatives are yielding results and more improvements is on the way. Even with our sharp focus on capital discipline, we remain poised to realize future value creation. We remain focused on disciplined management of trade working capital, which despite higher volumes and prices, was $450 million lower on March 31st than a year prior. we remain focused on disciplined management of trade working capital which despite higher volumes and prices was $450 million lower on march 31st than a year prior We are also continuing to streamline the organization, including our executive committee. we are also continuing to streamline the organization including our executive committee The effects will flow through the organization over the coming months to create further efficiencies. the effects will flow through the organization over the coming months to create further efficiencies First quarter fixed costs across the company are already under $50 million lower than first quarter of 2025, including closure costs. first quarter fixed costs across the company are already under $50 million lower than first quarter of 2025 including closure costs Since the end of 2024, we have reduced headcount by approximately 3,000 positions or 15% through the combination of fixed cost reductions and portfolio management, including the sale of our European assets announced earlier this morning. since the end of 2024 we have reduced headcount by approximately 3,000 positions or 15% through the combination of fixed cost reductions and portfolio management including the sale of our european assets announced earlier this morning Our initiatives are yielding results and more improvements is on the way. our initiatives are yielding results and more improvements is on the way Even with our sharp focus on capital discipline, we remain poised to realize future value creation. even with our sharp focus on capital discipline we remain poised to realize future value creation We're operating our Channelview PO/TBA plant above benchmark rates and modest investment in Hyperzone reliability and acetyl debottlenecks will deliver incremental value. Construction on MoReTec-1 continues as planned and is expected to ramp up towards the end of 2027. Together, we expect these future growth projects will increase our EBITDA by approximately $400 million. In addition, VEP continues to drive down our costs and increase our reliability and productivity. Now let's turn to slide six as we discuss our financial performance. During the first quarter, earnings were $0.49 per diluted share with EBITDA of $615 million. EBITDA improved by nearly 50%, supported by both typical seasonal trends and a significant improvement in market conditions during March. We're operating our Channelview PO/TBA plant above benchmark rates and modest investment in Hyperzone reliability and acetyl debottlenecks will deliver incremental value. we're operating our channelview po/tba plant above benchmark rates and modest investment in hyperzone reliability and acetyl debottlenecks will deliver incremental value Construction on MoReTec-1 continues as planned and is expected to ramp up towards the end of 2027. construction on moretec-1 continues as planned and is expected to ramp up towards the end of 2027 Together, we expect these future growth projects will increase our EBITDA by approximately $400 million. together we expect these future growth projects will increase our ebitda by approximately $400 million In addition, VEP continues to drive down our costs and increase our reliability and productivity. in addition vep continues to drive down our costs and increase our reliability and productivity Now let's turn to slide six as we discuss our financial performance. now let's turn to slide six as we discuss our financial performance During the first quarter, earnings were $0.49 per diluted share with EBITDA of $615 million. during the first quarter earnings were $0.49 per diluted share with ebitda of $615 million EBITDA improved by nearly 50%, supported by both typical seasonal trends and a significant improvement in market conditions during March. ebitda improved by nearly 50% supported by both typical seasonal trends and a significant improvement in market conditions during march Cash and liquidity remained robust, with balances of $2.6 billion and $7.3 billion respectively at quarter end. I will now hand over to Agustin to discuss our financial performance in more detail. Agustin? Cash and liquidity remained robust, with balances of $2.6 billion and $7.3 billion respectively at quarter end. I will now hand over to Agustin to discuss our financial performance in more detail. cash and liquidity remained robust with balances of $2.6 billion and $7.3 billion respectively at quarter end. i will now hand over to agustin to discuss our financial performance in more detail Agustin? agustin

Speaker 2: Thank you, Peter, and good morning, everyone. Let me begin with slide seven as we outline our cash generation. Over the past 12 months, LyondellBasell converted EBITDA into cash at a rate of 111%, well above our long-term target of 80%. This performance reflects our laser focus on optimizing working capital and benefited from the timing of tax payments. In the second quarter, we expect higher prices and operating rates will result in an intentional build of working capital to capture market opportunities. As Peter mentioned, in the first quarter, our cash balance was $2.6 billion, and our available liquidity remains robust at $7.3 billion. Now let's turn to slide eight and review the details of our first quarter capital allocation. We consumed $269 million of cash in operating activities. Thank you, Peter, and good morning, everyone. thank you peter and good morning everyone Let me begin with slide seven as we outline our cash generation. let me begin with slide seven as we outline our cash generation Over the past 12 months, LyondellBasell converted EBITDA into cash at a rate of 111%, well above our long-term target of 80%. over the past 12 months lyondellbasell converted ebitda into cash at a rate of 111% well above our long-term target of 80% This performance reflects our laser focus on optimizing working capital and benefited from the timing of tax payments. this performance reflects our laser focus on optimizing working capital and benefited from the timing of tax payments In the second quarter, we expect higher prices and operating rates will result in an intentional build of working capital to capture market opportunities. in the second quarter we expect higher prices and operating rates will result in an intentional build of working capital to capture market opportunities As Peter mentioned, in the first quarter, our cash balance was $2.6 billion, and our available liquidity remains robust at $7.3 billion. as peter mentioned in the first quarter our cash balance was $2.6 billion and our available liquidity remains robust at $7.3 billion Now let's turn to slide eight and review the details of our first quarter capital allocation. now let's turn to slide eight and review the details of our first quarter capital allocation We consumed $269 million of cash in operating activities. we consumed $269 million of cash in operating activities This was expected and consistent with normal patterns for the first quarter. It also reflects the very low inventory levels we accomplished at the end of 2025 and our intentions to profitably capture higher prices and increase demand from the market in 2026. During the quarter, we funded $269 million of capital investments. We took proactive steps during the first quarter to protect our investment-grade balance sheet. Our Board approved a 50% reduction in our quarterly dividend to rebalance our capital allocation and improve financial flexibility. As a result, we returned $224 million to shareholders through dividends in the first quarter. With the change in outlook for 2026, we currently expect both our effective and cash tax rates for the year will range between 15%-20%. This was expected and consistent with normal patterns for the first quarter. this was expected and consistent with normal patterns for the first quarter It also reflects the very low inventory levels we accomplished at the end of 2025 and our intentions to profitably capture higher prices and increase demand from the market in 2026. it also reflects the very low inventory levels we accomplished at the end of 2025 and our intentions to profitably capture higher prices and increase demand from the market in 2026 During the quarter, we funded $269 million of capital investments. during the quarter we funded $269 million of capital investments We took proactive steps during the first quarter to protect our investment-grade balance sheet. we took proactive steps during the first quarter to protect our investment-grade balance sheet Our Board approved a 50% reduction in our quarterly dividend to rebalance our capital allocation and improve financial flexibility. our board approved a 50% reduction in our quarterly dividend to rebalance our capital allocation and improve financial flexibility As a result, we returned $224 million to shareholders through dividends in the first quarter. as a result we returned $224 million to shareholders through dividends in the first quarter With the change in outlook for 2026, we currently expect both our effective and cash tax rates for the year will range between 15%-20%. with the change in outlook for 2026 we currently expect both our effective and cash tax rates for the year will range between 15%-20% Despite the highly fluid macro environment, our capital allocation priorities remain consistent. We are committed to our investment-grade balance sheet as a foundation of our disciplined capital allocation framework. With the sale of four European assets, we have reached a milestone in our portfolio transformation, and while we have several attractive projects ready for investment, we will only move forward when the balance sheet and outlook is more secure. Regardless of the more favorable outlook for 2026, our near-term focus will remain on continuing to invest in safe and reliable operations to execute our cash improvement plan, to strengthen our investment-grade balance sheet and repay the 2026 and 2027 debt maturities we pre-funded in 2025. Now let's turn to slide nine, and I'll provide a brief overview of our segment results. Despite the highly fluid macro environment, our capital allocation priorities remain consistent. despite the highly fluid macro environment our capital allocation priorities remain consistent We are committed to our investment-grade balance sheet as a foundation of our disciplined capital allocation framework. we are committed to our investment-grade balance sheet as a foundation of our disciplined capital allocation framework With the sale of four European assets, we have reached a milestone in our portfolio transformation, and while we have several attractive projects ready for investment, we will only move forward when the balance sheet and outlook is more secure. with the sale of four european assets we have reached a milestone in our portfolio transformation and while we have several attractive projects ready for investment we will only move forward when the balance sheet and outlook is more secure Regardless of the more favorable outlook for 2026, our near-term focus will remain on continuing to invest in safe and reliable operations to execute our cash improvement plan, to strengthen our investment-grade balance sheet and repay the 2026 and 2027 debt maturities we pre-funded in 2025. regardless of the more favorable outlook for 2026 our near-term focus will remain on continuing to invest in safe and reliable operations to execute our cash improvement plan to strengthen our investment-grade balance sheet and repay the 2026 and 2027 debt maturities we pre-funded in 2025 Now let's turn to slide nine, and I'll provide a brief overview of our segment results. now let's turn to slide nine and i'll provide a brief overview of our segment results Our business portfolio generated $615 million of EBITDA during the first quarter. Profitability improved across most businesses, led by stronger polyolefin margins and volumes, partially offset by reduced technology licensing activity. With that, I will turn the call over to Kim. Our business portfolio generated $615 million of EBITDA during the first quarter. our business portfolio generated $615 million of ebitda during the first quarter Profitability improved across most businesses, led by stronger polyolefin margins and volumes, partially offset by reduced technology licensing activity. profitability improved across most businesses led by stronger polyolefin margins and volumes partially offset by reduced technology licensing activity With that, I will turn the call over to Kim. with that i will turn the call over to kim

Speaker 11: Thank you, Agustín Izquierdo. Let's turn to slide 10 to discuss the performance of Olefins and Polyolefins-Americas segment. During the first quarter, O&P-Americas EBITDA was $327 million, double the prior quarter. In polyethylene, integrated margins improved due to favorable feedstock costs and successful contract price increases for polyethylene in both January and March. In March, export prices for polyethylene significantly increased as global production was impacted by the Middle East conflict. These benefits were partially offset by the impacts of Winter Storm Fern and the higher gas prices earlier in the quarter. Our first quarter operating rate for the segment was approximately 85%, with our crackers running at approximately 95%. During the first quarter, North American polyethylene sales for the industry increased by 6.5% year-over-year, while inventories fell by 7.6%. Thank you, Agustín Izquierdo. thank you agustín izquierdo Let's turn to slide 10 to discuss the performance of Olefins and Polyolefins-Americas segment. let's turn to slide 10 to discuss the performance of olefins and polyolefins-americas segment During the first quarter, O&P-Americas EBITDA was $327 million, double the prior quarter. during the first quarter o&p-americas ebitda was $327 million double the prior quarter In polyethylene, integrated margins improved due to favorable feedstock costs and successful contract price increases for polyethylene in both January and March. in polyethylene integrated margins improved due to favorable feedstock costs and successful contract price increases for polyethylene in both january and march In March, export prices for polyethylene significantly increased as global production was impacted by the Middle East conflict. in march export prices for polyethylene significantly increased as global production was impacted by the middle east conflict These benefits were partially offset by the impacts of Winter Storm Fern and the higher gas prices earlier in the quarter. these benefits were partially offset by the impacts of winter storm fern and the higher gas prices earlier in the quarter Our first quarter operating rate for the segment was approximately 85%, with our crackers running at approximately 95%. our first quarter operating rate for the segment was approximately 85% with our crackers running at approximately 95% During the first quarter, North American polyethylene sales for the industry increased by 6.5% year-over-year, while inventories fell by 7.6%. during the first quarter north american polyethylene sales for the industry increased by 6.5% year-over-year while inventories fell by 7.6% March domestic and overall sales volumes for North American polyethylene industry were the strongest since 2020. In the second quarter, we expect higher margins and volumes given the global supply tightness. Our order books are strong with April orders for polyethylene 20% above pre-war averages. We have announced substantial price increases to capture this momentum, including a cumulative $0.50 per pound in polyethylene across April and May, in addition to the gains realized in the first quarter, and $0.10 per pound polypropylene spread increases in both months. With ongoing supply constraints, North America is positioned to move from net importer to net exporter to meet stable global demand for polypropylene. We are focused on maximizing operating rates to meet the gap in global supply and expect 90% utilization of our nameplate capacity across the segment during the second quarter. March domestic and overall sales volumes for North American polyethylene industry were the strongest since 2020. march domestic and overall sales volumes for north american polyethylene industry were the strongest since 2020 In the second quarter, we expect higher margins and volumes given the global supply tightness. in the second quarter we expect higher margins and volumes given the global supply tightness Our order books are strong with April orders for polyethylene 20% above pre-war averages. our order books are strong with april orders for polyethylene 20% above pre-war averages We have announced substantial price increases to capture this momentum, including a cumulative $0.50 per pound in polyethylene across April and May, in addition to the gains realized in the first quarter, and $0.10 per pound polypropylene spread increases in both months. we have announced substantial price increases to capture this momentum including a cumulative $0.50 per pound in polyethylene across april and may in addition to the gains realized in the first quarter and $0.10 per pound polypropylene spread increases in both months With ongoing supply constraints, North America is positioned to move from net importer to net exporter to meet stable global demand for polypropylene. with ongoing supply constraints north america is positioned to move from net importer to net exporter to meet stable global demand for polypropylene We are focused on maximizing operating rates to meet the gap in global supply and expect 90% utilization of our nameplate capacity across the segment during the second quarter. we are focused on maximizing operating rates to meet the gap in global supply and expect 90% utilization of our nameplate capacity across the segment during the second quarter The hard work in our value enhancement program and cash improvement plan is starting to add value through higher productivity and reliability at lower costs. Moving on to slide 11. Earlier, Peter showed the dramatic impact of the ongoing war in Iran on the ethylene cost curve. Here we outline the direct and indirect effects of the war on the production of ethylene, polyethylene, and polypropylene. In the Middle East, production has faced three principal challenges during the conflict. First, some plants have been hit directly, immediately impacting production with time to repair and restart unclear. The hard work in our value enhancement program and cash improvement plan is starting to add value through higher productivity and reliability at lower costs. the hard work in our value enhancement program and cash improvement plan is starting to add value through higher productivity and reliability at lower costs Moving on to slide 11. moving on to slide 11 Earlier, Peter showed the dramatic impact of the ongoing war in Iran on the ethylene cost curve. earlier peter showed the dramatic impact of the ongoing war in iran on the ethylene cost curve Here we outline the direct and indirect effects of the war on the production of ethylene, polyethylene, and polypropylene. here we outline the direct and indirect effects of the war on the production of ethylene polyethylene and polypropylene In the Middle East, production has faced three principal challenges during the conflict. in the middle east production has faced three principal challenges during the conflict First, some plants have been hit directly, immediately impacting production with time to repair and restart unclear. first some plants have been hit directly immediately impacting production with time to repair and restart unclear Secondly, feedstock availability has been challenged, impacting plant operating rates or ability to operate at all. Thirdly, for plants where the normal route to market included passage through the Strait of Hormuz prior to the conflict, these plants have faced logistical bottlenecks resulting in the increased cost and time to market, and in some cases, reduced operating rates. Production in Asia has been primarily impacted by reduced feedstock availability. In China, which sources as much as 50% of its crude and substantial share of its naphtha from the Middle East, we hear the government has instructed refiners to prioritize limited feedstock availability towards the production of transportation fuels instead of chemicals. Ethylene cracker operating rates have steadily declined over the course of the conflict. Secondly, feedstock availability has been challenged, impacting plant operating rates or ability to operate at all. secondly feedstock availability has been challenged impacting plant operating rates or ability to operate at all Thirdly, for plants where the normal route to market included passage through the Strait of Hormuz prior to the conflict, these plants have faced logistical bottlenecks resulting in the increased cost and time to market, and in some cases, reduced operating rates. thirdly for plants where the normal route to market included passage through the strait of hormuz prior to the conflict these plants have faced logistical bottlenecks resulting in the increased cost and time to market and in some cases reduced operating rates Production in Asia has been primarily impacted by reduced feedstock availability. production in asia has been primarily impacted by reduced feedstock availability In China, which sources as much as 50% of its crude and substantial share of its naphtha from the Middle East, we hear the government has instructed refiners to prioritize limited feedstock availability towards the production of transportation fuels instead of chemicals. in china which sources as much as 50% of its crude and substantial share of its naphtha from the middle east we hear the government has instructed refiners to prioritize limited feedstock availability towards the production of transportation fuels instead of chemicals Ethylene cracker operating rates have steadily declined over the course of the conflict. ethylene cracker operating rates have steadily declined over the course of the conflict Overall, this has meant that more than 20% of the global capacity for ethylene, polyethylene, and polypropylene is currently impacted by the ongoing conflict, as shown in the red bars on the chart. This dwarfs the expected capacity additions this year and takes each of these markets from oversupplied to tight. These production impacts have led to higher prices to incentivize additional production from regions with stable supply, principally North America and Europe. LYB's portfolio is optimally positioned to take advantage of these commercial opportunities with 90% of our PE capacity and 70% of our PP capacity within North America and Europe. Lastly, I wanted to highlight that although the outlook is more positive than we expected earlier in the year, we remain mindful of the second-order effects of higher prices. Overall, this has meant that more than 20% of the global capacity for ethylene, polyethylene, and polypropylene is currently impacted by the ongoing conflict, as shown in the red bars on the chart. overall this has meant that more than 20% of the global capacity for ethylene polyethylene and polypropylene is currently impacted by the ongoing conflict as shown in the red bars on the chart This dwarfs the expected capacity additions this year and takes each of these markets from oversupplied to tight. this dwarfs the expected capacity additions this year and takes each of these markets from oversupplied to tight These production impacts have led to higher prices to incentivize additional production from regions with stable supply, principally North America and Europe. these production impacts have led to higher prices to incentivize additional production from regions with stable supply principally north america and europe LYB's portfolio is optimally positioned to take advantage of these commercial opportunities with 90% of our PE capacity and 70% of our PP capacity within North America and Europe. lyb's portfolio is optimally positioned to take advantage of these commercial opportunities with 90% of our pe capacity and 70% of our pp capacity within north america and europe Lastly, I wanted to highlight that although the outlook is more positive than we expected earlier in the year, we remain mindful of the second-order effects of higher prices. lastly i wanted to highlight that although the outlook is more positive than we expected earlier in the year we remain mindful of the second-order effects of higher prices A structurally short market is usually resolved through demand destruction, which we see no evidence of currently or higher production. History has shown packaging demand remains robust in such scenarios. Demand for durable goods has already been consistently at a low level since 2022, and prices are still well below peak levels in 2021. We remain watchful and will adapt to how the market develops. We are confident that our actions to grow and upgrade the core, which has driven significant portfolio transformation, will continue to generate value in a range of macroeconomic scenarios. With that, let's turn to slide 12 as we review the results of the Olefins and Polyolefins-Europe, Asia, International segment. We reduced our first quarter EBITDA loss to $6 million driven by higher volumes, improved reliability, and lower fixed costs. A structurally short market is usually resolved through demand destruction, which we see no evidence of currently or higher production. a structurally short market is usually resolved through demand destruction which we see no evidence of currently or higher production History has shown packaging demand remains robust in such scenarios. history has shown packaging demand remains robust in such scenarios Demand for durable goods has already been consistently at a low level since 2022, and prices are still well below peak levels in 2021. demand for durable goods has already been consistently at a low level since 2022 and prices are still well below peak levels in 2021 We remain watchful and will adapt to how the market develops. we remain watchful and will adapt to how the market develops We are confident that our actions to grow and upgrade the core, which has driven significant portfolio transformation, will continue to generate value in a range of macroeconomic scenarios. we are confident that our actions to grow and upgrade the core which has driven significant portfolio transformation will continue to generate value in a range of macroeconomic scenarios With that, let's turn to slide 12 as we review the results of the Olefins and Polyolefins-Europe, Asia, International segment. with that let's turn to slide 12 as we review the results of the olefins and polyolefins-europe asia international segment We reduced our first quarter EBITDA loss to $6 million driven by higher volumes, improved reliability, and lower fixed costs. we reduced our first quarter ebitda loss to $6 million driven by higher volumes improved reliability and lower fixed costs While higher raw material prices pressured cracker margins during the first quarter, product pricing began to catch up during March, and higher volumes and improved utilization rates are improving our fixed cost coverage. Our Middle East joint ventures operated largely as planned during the quarter. While the region represents a relatively small portion of our global capacity, these cost-advantaged assets remain an important part of our portfolio over the long term. After the end of the quarter, LYB reached an important milestone in our portfolio transformation with the completion of the sale of four European assets. We are now better positioned with increased resilience and greater flexibility to capture market upside by leveraging a greater proportion of low-cost capacity. Looking ahead to the second quarter, polymer margins are improving as our team passes through higher costs for energy and raw materials. While higher raw material prices pressured cracker margins during the first quarter, product pricing began to catch up during March, and higher volumes and improved utilization rates are improving our fixed cost coverage. while higher raw material prices pressured cracker margins during the first quarter product pricing began to catch up during march and higher volumes and improved utilization rates are improving our fixed cost coverage Our Middle East joint ventures operated largely as planned during the quarter. our middle east joint ventures operated largely as planned during the quarter While the region represents a relatively small portion of our global capacity, these cost-advantaged assets remain an important part of our portfolio over the long term. while the region represents a relatively small portion of our global capacity these cost-advantaged assets remain an important part of our portfolio over the long term After the end of the quarter, LYB reached an important milestone in our portfolio transformation with the completion of the sale of four European assets. after the end of the quarter lyb reached an important milestone in our portfolio transformation with the completion of the sale of four european assets We are now better positioned with increased resilience and greater flexibility to capture market upside by leveraging a greater proportion of low-cost capacity. we are now better positioned with increased resilience and greater flexibility to capture market upside by leveraging a greater proportion of low-cost capacity Looking ahead to the second quarter, polymer margins are improving as our team passes through higher costs for energy and raw materials. looking ahead to the second quarter polymer margins are improving as our team passes through higher costs for energy and raw materials Feedstock costs are likely to remain dynamic as the market adapts to the ongoing conflict. We are seeing improved regional demand in Europe due to lower imports from the Middle East and China. We are increasing our operating rates to approximately 80% across the segment during the second quarter. With that, I'll turn the call over to Aaron. Feedstock costs are likely to remain dynamic as the market adapts to the ongoing conflict. feedstock costs are likely to remain dynamic as the market adapts to the ongoing conflict We are seeing improved regional demand in Europe due to lower imports from the Middle East and China. we are seeing improved regional demand in europe due to lower imports from the middle east and china We are increasing our operating rates to approximately 80% across the segment during the second quarter. we are increasing our operating rates to approximately 80% across the segment during the second quarter With that, I'll turn the call over to Aaron. with that i'll turn the call over to aaron

Speaker 1: Thank you, Kim. Please turn to slide 13 as we look at the Intermediates and Derivatives segment. In the 1st quarter, segment EBITDA sequentially increased to $224 million, driven by stronger volumes supported by improving market conditions, partially offset by unplanned downtime at our LaPorte and Bayport facilities in Houston. Margins strengthened in propylene oxide with improved adders and increased demand for glycols into de-icers. In Oxyfuels, results declined during the quarter to reflect typically low winter seasonal demand and margins. Margin pressures for Oxyfuels were compounded by higher butane costs in Europe, with improving Oxyfuels prices amid Middle East tensions providing only a partial offset towards the end of the quarter. Unplanned downtime at our Bayport PO/TBA asset beginning in March reduced EBITDA by approximately $40 million in the quarter. Crude oil remains the single largest variable affecting Oxyfuels margins. Thank you, Kim. thank you kim Please turn to slide 13 as we look at the Intermediates and Derivatives segment. please turn to slide 13 as we look at the intermediates and derivatives segment In the 1st quarter, segment EBITDA sequentially increased to $224 million, driven by stronger volumes supported by improving market conditions, partially offset by unplanned downtime at our LaPorte and Bayport facilities in Houston. in the 1st quarter segment ebitda sequentially increased to $224 million driven by stronger volumes supported by improving market conditions partially offset by unplanned downtime at our laporte and bayport facilities in houston Margins strengthened in propylene oxide with improved adders and increased demand for glycols into de-icers. margins strengthened in propylene oxide with improved adders and increased demand for glycols into de-icers In Oxyfuels, results declined during the quarter to reflect typically low winter seasonal demand and margins. in oxyfuels results declined during the quarter to reflect typically low winter seasonal demand and margins Margin pressures for Oxyfuels were compounded by higher butane costs in Europe, with improving Oxyfuels prices amid Middle East tensions providing only a partial offset towards the end of the quarter. margin pressures for oxyfuels were compounded by higher butane costs in europe with improving oxyfuels prices amid middle east tensions providing only a partial offset towards the end of the quarter Unplanned downtime at our Bayport PO/TBA asset beginning in March reduced EBITDA by approximately $40 million in the quarter. unplanned downtime at our bayport po/tba asset beginning in march reduced ebitda by approximately $40 million in the quarter Crude oil remains the single largest variable affecting Oxyfuels margins. crude oil remains the single largest variable affecting oxyfuels margins As a rule of thumb, a $1 change in crude oil prices translates to roughly a $20 million annualized impact on Oxyfuels earnings, assuming full production and all other factors remain constant. Historically, Oxyfuels margins in the U.S. and Europe have been comparable. However, this year we are seeing a divergence. In the U.S., butane and methanol prices have increased far less than crude. In Europe, butane prices are near record highs relative to crude, compressing margins. Additionally, the outage at our Bayport PO/TBA facility has temporarily limited our ability to fully capture the favorable U.S. market environment. In Acetyls, we saw improved seasonal demand as we moved through the quarter. As a rule of thumb, a $1 change in crude oil prices translates to roughly a $20 million annualized impact on Oxyfuels earnings, assuming full production and all other factors remain constant. as a rule of thumb a $1 change in crude oil prices translates to roughly a $20 million annualized impact on oxyfuels earnings assuming full production and all other factors remain constant Historically, Oxyfuels margins in the U.S. and Europe have been comparable. historically oxyfuels margins in the u.s and europe have been comparable However, this year we are seeing a divergence. however this year we are seeing a divergence In the U.S., butane and methanol prices have increased far less than crude. in the u.s butane and methanol prices have increased far less than crude In Europe, butane prices are near record highs relative to crude, compressing margins. in europe butane prices are near record highs relative to crude compressing margins Additionally, the outage at our Bayport PO/TBA facility has temporarily limited our ability to fully capture the favorable U.S. market environment. additionally the outage at our bayport po/tba facility has temporarily limited our ability to fully capture the favorable u.s market environment In Acetyls, we saw improved seasonal demand as we moved through the quarter. in acetyls we saw improved seasonal demand as we moved through the quarter However, this improvement was more than offset by unplanned downtime due to a delayed restart of the LaPorte acetyls assets following Winter Storm Fern. Despite this, the methanol business continued to run throughout the quarter, providing a stable earnings contribution that underscores our benefits from integration across the I&D portfolio. Overall, underlying demand trends and market fundamentals continued to improve, positioning the segment for favorable performance during the second quarter. In Oxyfuels, we expect meaningful margin improvement in the second quarter from stronger seasonal demand and reduced supply from the Middle East and China. The Bayport PO/TBA asset is expected to restart toward the end of the second quarter with an estimated earnings impact of approximately $25 million per week while down. Taken together, these elements position us well for improved Oxyfuels margins in the coming quarters. However, this improvement was more than offset by unplanned downtime due to a delayed restart of the LaPorte acetyls assets following Winter Storm Fern. Despite this, the methanol business continued to run throughout the quarter, providing a stable earnings contribution that underscores our benefits from integration across the I&D portfolio. however this improvement was more than offset by unplanned downtime due to a delayed restart of the laporte acetyls assets following winter storm fern. despite this the methanol business continued to run throughout the quarter providing a stable earnings contribution that underscores our benefits from integration across the i&d portfolio Overall, underlying demand trends and market fundamentals continued to improve, positioning the segment for favorable performance during the second quarter. overall underlying demand trends and market fundamentals continued to improve positioning the segment for favorable performance during the second quarter In Oxyfuels, we expect meaningful margin improvement in the second quarter from stronger seasonal demand and reduced supply from the Middle East and China. in oxyfuels we expect meaningful margin improvement in the second quarter from stronger seasonal demand and reduced supply from the middle east and china The Bayport PO/TBA asset is expected to restart toward the end of the second quarter with an estimated earnings impact of approximately $25 million per week while down. the bayport po/tba asset is expected to restart toward the end of the second quarter with an estimated earnings impact of approximately $25 million per week while down Taken together, these elements position us well for improved Oxyfuels margins in the coming quarters. taken together these elements position us well for improved oxyfuels margins in the coming quarters In Acetyls, volumes and margins are expected to improve following the LaPorte asset restart, supported by seasonal demand recovery and tight global supply. Across the segment, we are targeting approximately 75% operating rates during the second quarter. I will now turn the call over to Torkel. In Acetyls, volumes and margins are expected to improve following the LaPorte asset restart, supported by seasonal demand recovery and tight global supply. in acetyls volumes and margins are expected to improve following the laporte asset restart supported by seasonal demand recovery and tight global supply Across the segment, we are targeting approximately 75% operating rates during the second quarter. across the segment we are targeting approximately 75% operating rates during the second quarter I will now turn the call over to Torkel. i will now turn the call over to torkel

Speaker 16: Thank you, Aaron. Please turn to slide 14 as we review results for the Advanced Polymer Solutions segment. First quarter EBITDA was $58 million. APS volumes increased across most business driven by typical seasonal demand. Our customer focus continues to deliver tangible results contributing to volume momentum. Margins declined given pricing raw material costs following the start of the Middle East conflict. Looking ahead, we expect soft near term demand in automotive and other durable goods markets. We expect higher costs for raw materials, energy and logistics to persist, and we are proactively passing these higher costs along our value chain. Nonetheless, we expect contractual limits on pricing velocity will pressure margins over the near term. Despite the changes in macro environment, we continue to transform our APS segment to a customer-centric growth business. Thank you, Aaron. thank you aaron Please turn to slide 14 as we review results for the Advanced Polymer Solutions segment. please turn to slide 14 as we review results for the advanced polymer solutions segment First quarter EBITDA was $58 million. first quarter ebitda was $58 million APS volumes increased across most business driven by typical seasonal demand. aps volumes increased across most business driven by typical seasonal demand Our customer focus continues to deliver tangible results contributing to volume momentum. our customer focus continues to deliver tangible results contributing to volume momentum Margins declined given pricing raw material costs following the start of the Middle East conflict. margins declined given pricing raw material costs following the start of the middle east conflict Looking ahead, we expect soft near term demand in automotive and other durable goods markets. looking ahead we expect soft near term demand in automotive and other durable goods markets We expect higher costs for raw materials, energy and logistics to persist, and we are proactively passing these higher costs along our value chain. we expect higher costs for raw materials energy and logistics to persist and we are proactively passing these higher costs along our value chain Nonetheless, we expect contractual limits on pricing velocity will pressure margins over the near term. nonetheless we expect contractual limits on pricing velocity will pressure margins over the near term Despite the changes in macro environment, we continue to transform our APS segment to a customer-centric growth business. despite the changes in macro environment we continue to transform our aps segment to a customer-centric growth business Our focus on customer centricity, cost, productivity, and portfolio changes over the past couple of years has contributed to the continued earnings improvement as seen by the 55% increase in EBITDA in 2025, and now a 26% improvement year-over-year for the first quarter. We are confident the work we are doing will profitably transform the APS business and enable us to achieve our long-term goals. With that, I will return the call to Peter. Our focus on customer centricity, cost, productivity, and portfolio changes over the past couple of years has contributed to the continued earnings improvement as seen by the 55% increase in EBITDA in 2025, and now a 26% improvement year-over-year for the first quarter. our focus on customer centricity cost productivity and portfolio changes over the past couple of years has contributed to the continued earnings improvement as seen by the 55% increase in ebitda in 2025 and now a 26% improvement year-over-year for the first quarter We are confident the work we are doing will profitably transform the APS business and enable us to achieve our long-term goals. we are confident the work we are doing will profitably transform the aps business and enable us to achieve our long-term goals With that, I will return the call to Peter. with that i will return the call to peter

Speaker 15: Thank you, Torkel. Please turn to slide 15 and I will discuss the results for the technology segment. First quarter EBITDA of $18 million was lower than our prior guidance due to declining licensing activity with slower global polyolefins capacity growth and lower catalyst sales volumes following shipping constraints associated with the Middle East war. We expect improved results in the second quarter as revenue from timing of shipments are recognized and licensing revenue milestones increase. As a result, we estimate that the second quarter technology segment results will be only slightly lower than our fourth quarter 2025 results. Let me share our views on our key regional and products markets on slide 16. Ongoing supply disruptions across multiple value chains are tightening availability and supporting improved pricing and margins. Thank you, Torkel. thank you torkel Please turn to slide 15 and I will discuss the results for the technology segment. please turn to slide 15 and i will discuss the results for the technology segment First quarter EBITDA of $18 million was lower than our prior guidance due to declining licensing activity with slower global polyolefins capacity growth and lower catalyst sales volumes following shipping constraints associated with the Middle East war. first quarter ebitda of $18 million was lower than our prior guidance due to declining licensing activity with slower global polyolefins capacity growth and lower catalyst sales volumes following shipping constraints associated with the middle east war We expect improved results in the second quarter as revenue from timing of shipments are recognized and licensing revenue milestones increase. we expect improved results in the second quarter as revenue from timing of shipments are recognized and licensing revenue milestones increase As a result, we estimate that the second quarter technology segment results will be only slightly lower than our fourth quarter 2025 results. as a result we estimate that the second quarter technology segment results will be only slightly lower than our fourth quarter 2025 results Let me share our views on our key regional and products markets on slide 16. let me share our views on our key regional and products markets on slide 16 Ongoing supply disruptions across multiple value chains are tightening availability and supporting improved pricing and margins. ongoing supply disruptions across multiple value chains are tightening availability and supporting improved pricing and margins These dynamics are favoring regions with stable access to energy, raw materials and logistics, where LYB and other producers are being called on to fill the gap in global supply. In North America, pricing initiatives are supported by improving seasonal demands, increased emphasis on security of supply, and rapidly rising export prices with margins reinforced by the U.S. cost advantage. In Europe, higher costs are being offset by higher product prices supported by increased demand for local production as imports from the Middle East and Asia decline. With fewer imports entering the region, profitability is improving. In Asia, feedstock disruptions continue to constrain supply, forcing lower operating rates. While capacity additions in China persist, prolonged shutdowns and technical issues with restarts could accelerate capacity rationalization across the region. Within packaging markets, demand remains resilient, supported by essential needs for food, healthcare, and non-durable consumer goods. These dynamics are favoring regions with stable access to energy, raw materials and logistics, where LYB and other producers are being called on to fill the gap in global supply. these dynamics are favoring regions with stable access to energy raw materials and logistics where lyb and other producers are being called on to fill the gap in global supply In North America, pricing initiatives are supported by improving seasonal demands, increased emphasis on security of supply, and rapidly rising export prices with margins reinforced by the U.S. cost advantage. in north america pricing initiatives are supported by improving seasonal demands increased emphasis on security of supply and rapidly rising export prices with margins reinforced by the u.s cost advantage In Europe, higher costs are being offset by higher product prices supported by increased demand for local production as imports from the Middle East and Asia decline. in europe higher costs are being offset by higher product prices supported by increased demand for local production as imports from the middle east and asia decline With fewer imports entering the region, profitability is improving. with fewer imports entering the region profitability is improving In Asia, feedstock disruptions continue to constrain supply, forcing lower operating rates. in asia feedstock disruptions continue to constrain supply forcing lower operating rates While capacity additions in China persist, prolonged shutdowns and technical issues with restarts could accelerate capacity rationalization across the region. while capacity additions in china persist prolonged shutdowns and technical issues with restarts could accelerate capacity rationalization across the region Within packaging markets, demand remains resilient, supported by essential needs for food, healthcare, and non-durable consumer goods. within packaging markets demand remains resilient supported by essential needs for food healthcare and non-durable consumer goods Demand in building and construction remains muted amid broader macro uncertainty. Inflationary pressures from the war are likely to delay potential benefits from lower interest rates and the inevitable recovery in durable goods demand. In automotive, global production is expected to decline slightly year-over-year, with additional risk tied to the ongoing Middle East war only offset by modest growth in South Asia and South America. Finally, in Oxyfuels, geopolitical volatility is driving price and margin upside in the U.S. As we conclude today's call, I would like to acknowledge that throughout the first quarter, our team continued to make smart decisions to successfully navigate a rapidly changing environment. We maximize commercial opportunities with discipline, agility, and a clear vision to position LYB as the leader in our industry and deliver lasting value for all our stakeholders. Now with that, we're pleased to take your questions. Demand in building and construction remains muted amid broader macro uncertainty. demand in building and construction remains muted amid broader macro uncertainty Inflationary pressures from the war are likely to delay potential benefits from lower interest rates and the inevitable recovery in durable goods demand. inflationary pressures from the war are likely to delay potential benefits from lower interest rates and the inevitable recovery in durable goods demand In automotive, global production is expected to decline slightly year-over-year, with additional risk tied to the ongoing Middle East war only offset by modest growth in South Asia and South America. in automotive global production is expected to decline slightly year-over-year with additional risk tied to the ongoing middle east war only offset by modest growth in south asia and south america Finally, in Oxyfuels, geopolitical volatility is driving price and margin upside in the U.S. finally in oxyfuels geopolitical volatility is driving price and margin upside in the u.s As we conclude today's call, I would like to acknowledge that throughout the first quarter, our team continued to make smart decisions to successfully navigate a rapidly changing environment. as we conclude today's call i would like to acknowledge that throughout the first quarter our team continued to make smart decisions to successfully navigate a rapidly changing environment We maximize commercial opportunities with discipline, agility, and a clear vision to position LYB as the leader in our industry and deliver lasting value for all our stakeholders. we maximize commercial opportunities with discipline agility and a clear vision to position lyb as the leader in our industry and deliver lasting value for all our stakeholders Now with that, we're pleased to take your questions. now with that we're pleased to take your questions

Speaker 13: Thank you, sir. Ladies and gentlemen, at this time, we will begin the question-and-answer session. We do ask you to limit to one question. Our first question comes from the line of David Begleiter with Deutsche Bank. Please proceed with your question. Thank you, sir. thank you sir Ladies and gentlemen, at this time, we will begin the question- and- answer session. ladies and gentlemen at this time we will begin the question- and- answer session We do ask you to limit to one question. we do ask you to limit to one question Our first question comes from the line of David Begleiter with Deutsche Bank. our first question comes from the line of david begleiter with deutsche bank Please proceed with your question. please proceed with your question

Speaker 3: Thank you. Good morning. Peter, the consultants have a pretty sharp erosion of polyethylene price increases in the back half of the year. I suspect you differ that forecast. Can you talk to why that you think they were probably being too bearish on PE price in the back half of the year? Thank you. Thank you. thank you Good morning. good morning Peter, the consultants have a pretty sharp erosion of polyethylene price increases in the back half of the year. peter the consultants have a pretty sharp erosion of polyethylene price increases in the back half of the year I suspect you differ that forecast. i suspect you differ that forecast Can you talk to why that you think they were probably being too bearish on PE price in the back half of the year? can you talk to why that you think they were probably being too bearish on pe price in the back half of the year Thank you. thank you

Speaker 15: Thank you, David. Good question to start with. I think, four weeks ago nobody expected or predicted that we would get a $0.30 per pound price increase for polyethylene and a $0.07 per pound spread increase for polypropylene. Just, I continue to be a bit skeptical, I mean, about those outlooks. If you, if you look at our review and we said it in the prepared remarks, we see that this disruption is not to be measured in quarters. It's probably gonna to be multiple quarters, definitely not months. It's a very large shock that we are experiencing. It's very global. It's driven by both asset impacts and logistics. You know these things normalize very slowly. Thank you, David. thank you david Good question to start with. good question to start with I think, four weeks ago nobody expected or predicted that we would get a $0.30 per pound price increase for polyethylene and a $0.07 per pound spread increase for polypropylene. i think four weeks ago nobody expected or predicted that we would get a $0.30 per pound price increase for polyethylene and a $0.07 per pound spread increase for polypropylene Just, I continue to be a bit skeptical, I mean, about those outlooks. just i continue to be a bit skeptical i mean about those outlooks If you, if you look at our review and we said it in the prepared remarks, we see that this disruption is not to be measured in quarters. if you if you look at our review and we said it in the prepared remarks we see that this disruption is not to be measured in quarters It's probably gonna to be multiple quarters, definitely not months. it's probably gonna to be multiple quarters definitely not months It's a very large shock that we are experiencing. it's a very large shock that we are experiencing It's very global. it's very global It's driven by both asset impacts and logistics. it's driven by both asset impacts and logistics You know these things normalize very slowly. you know these things normalize very slowly Reference, as we hear, will be given first of all, if you talk about the supply disruptions, to crude oil, then after that, fertilizers, I mean, for foods. How fast will that actually move, I mean, to petrochemicals, remain to be seen. Our view that we continue to have is that there will be a sustained geopolitical risk premium that will continue to steepen the cost curve. Even after a resolution, the market may retain a higher risk premium for crudes. Steeper global cost curve can persist also versus the pre-war conditions. As you know, physical damage is not something that can be recovered very quickly. From that perspective as well, I mean, restart timing is uncertain. Reference, as we hear, will be given first of all, if you talk about the supply disruptions, to crude oil, then after that, fertilizers, I mean, for foods. reference as we hear will be given first of all if you talk about the supply disruptions to crude oil then after that fertilizers i mean for foods How fast will that actually move, I mean, to petrochemicals, remain to be seen. how fast will that actually move i mean to petrochemicals remain to be seen Our view that we continue to have is that there will be a sustained geopolitical risk premium that will continue to steepen the cost curve. our view that we continue to have is that there will be a sustained geopolitical risk premium that will continue to steepen the cost curve Even after a resolution, the market may retain a higher risk premium for crudes. even after a resolution the market may retain a higher risk premium for crudes Steeper global cost curve can persist also versus the pre-war conditions. steeper global cost curve can persist also versus the pre-war conditions As you know, physical damage is not something that can be recovered very quickly. as you know physical damage is not something that can be recovered very quickly From that perspective as well, I mean, restart timing is uncertain. from that perspective as well i mean restart timing is uncertain Rerouting logistics, as I talked about, I mean, the common view that we currently have in the market is, until that rerouting logistics will be somehow stable. is probably gonna be more like, I don't know, nine months, 12 months. In addition to that, if you have all these outages, these outages can become permanent. They can eventually also accelerate, I mean, the rationalization. With regards, I mean, to more specific polyethylene pricing, let me hand over to Kim. Rerouting logistics, as I talked about, I mean, the common view that we currently have in the market is, until that rerouting logistics will be somehow stable. is probably gonna be more like, I don't know, nine months, 12 months. rerouting logistics as i talked about i mean the common view that we currently have in the market is until that rerouting logistics will be somehow stable is probably gonna be more like i don't know nine months 12 months In addition to that, if you have all these outages, these outages can become permanent. in addition to that if you have all these outages these outages can become permanent They can eventually also accelerate, I mean, the rationalization. they can eventually also accelerate i mean the rationalization With regards, I mean, to more specific polyethylene pricing, let me hand over to Kim. with regards i mean to more specific polyethylene pricing let me hand over to kim

Speaker 11: Peter, thanks for kind of sharing the view of the impacts of the shock effect. I think the other thing to remind everybody is, you know, we yesterday got confirmation on the $0.30 in April. We've got $0.20 out there in May. If you think about history and you look back at kind of peak pricing in 2021, the pricing there was still $0.10-$0.15 per pound higher. We in 2021, that pricing could clearly go through the economies. I think it can again as we go forward. Without any correction to the supply-demand imbalance, I'm not sure why pricing would go down as Peter alluded to in his opening remarks. I politely disagree with the consultants. Peter, thanks for kind of sharing the view of the impacts of the shock effect. peter thanks for kind of sharing the view of the impacts of the shock effect I think the other thing to remind everybody is, you know, we yesterday got confirmation on the $0.30 in April. i think the other thing to remind everybody is you know we yesterday got confirmation on the $0.30 in april We've got $0.20 out there in May. we've got $0.20 out there in may If you think about history and you look back at kind of peak pricing in 2021, the pricing there was still $0.10-$0.15 per pound higher. if you think about history and you look back at kind of peak pricing in 2021 the pricing there was still $0.10-$0.15 per pound higher We in 2021, that pricing could clearly go through the economies. we in 2021 that pricing could clearly go through the economies I think it can again as we go forward. i think it can again as we go forward Without any correction to the supply-demand imbalance, I'm not sure why pricing would go down as Peter alluded to in his opening remarks. without any correction to the supply-demand imbalance i'm not sure why pricing would go down as peter alluded to in his opening remarks I politely disagree with the consultants. i politely disagree with the consultants

Speaker 13: Thank you. Our next question comes from line of Patrick Cunningham with Citi. Please proceed with your question. Thank you. thank you Our next question comes from line of Patrick Cunningham with Citi. our next question comes from line of patrick cunningham with citi Please proceed with your question. please proceed with your question

Speaker 14: Hi, good morning, and thanks for taking my question. Maybe just on I&D. I guess if you could walk through, you know, any of the structural changes you've seen from a cost curve and supply and demand point, standpoint, given the conflict. Then just, you know, related, if the conflict persists and the Bayport turnaround does wrap up, you know, where would you anticipate operating rates and margins to trend in the back half? Hi, good morning, and thanks for taking my question. hi good morning and thanks for taking my question Maybe just on I&D. maybe just on i&d I guess if you could walk through, you know, any of the structural changes you've seen from a cost curve and supply and demand point, standpoint, given the conflict. i guess if you could walk through you know any of the structural changes you've seen from a cost curve and supply and demand point standpoint given the conflict Then just, you know, related, if the conflict persists and the Bayport turnaround does wrap up, you know, where would you anticipate operating rates and margins to trend in the back half? then just you know related if the conflict persists and the bayport turnaround does wrap up you know where would you anticipate operating rates and margins to trend in the back half

Speaker 1: Yeah. Thank you for the question. I would start by saying, generally we have pricing power across the board in almost all of our products. We've seen, as examples in methanol pricing, it's doubled in the last three months from $300 a ton to $600 a ton, really across all regions. You take that through the acetyls chain. We've seen, acid pricing up 50% over that same timeframe. We've seen VAM pricing up 100% over that same timeframe. As I said, we've got pricing power really across the board from an acetyls perspective. Cost curve and acetyls relatively flat in both acid and VAM. When you look at our methanol cost curve, you know, U.S. natural gas pricing is the lowest across all regions right now. Yeah. yeah Thank you for the question. thank you for the question I would start by saying, generally we have pricing power across the board in almost all of our products. i would start by saying generally we have pricing power across the board in almost all of our products We've seen, as examples in methanol pricing, it's doubled in the last three months from $300 a ton to $600 a ton, really across all regions. we've seen as examples in methanol pricing it's doubled in the last three months from $300 a ton to $600 a ton really across all regions You take that through the acetyls chain. you take that through the acetyls chain We've seen, acid pricing up 50% over that same timeframe. we've seen acid pricing up 50% over that same timeframe We've seen VAM pricing up 100% over that same timeframe. we've seen vam pricing up 100% over that same timeframe As I said, we've got pricing power really across the board from an acetyls perspective. as i said we've got pricing power really across the board from an acetyls perspective Cost curve and acetyls relatively flat in both acid and VAM. cost curve and acetyls relatively flat in both acid and vam When you look at our methanol cost curve, you know, U.S. natural gas pricing is the lowest across all regions right now. when you look at our methanol cost curve you know u.s natural gas pricing is the lowest across all regions right now Obviously, we're advantaged in that spot. When I shift over to the PO business, both of our technologies, we actually just ran the cost curve last month. Both of our technologies, PO/TBA and PO/SM, are in the first quartile of the cost curve. It obviously puts us in an advantaged position. As you heard in my plan remarks, we currently plan to run our capacities at 75%. Utilization in the second quarter, a lot of that is due to the unplanned downtime in Bayport. As that site gets back up and running towards the end of the quarter, we do expect to run closer to 95%-100% full rates. Obviously, we're advantaged in that spot. obviously we're advantaged in that spot When I shift over to the PO business, both of our technologies, we actually just ran the cost curve last month. when i shift over to the po business both of our technologies we actually just ran the cost curve last month Both of our technologies, PO/TBA and PO/SM, are in the first quartile of the cost curve. both of our technologies po/tba and po/sm are in the first quartile of the cost curve It obviously puts us in an advantaged position. it obviously puts us in an advantaged position As you heard in my plan remarks, we currently plan to run our capacities at 75%. as you heard in my plan remarks we currently plan to run our capacities at 75% Utilization in the second quarter, a lot of that is due to the unplanned downtime in Bayport. utilization in the second quarter a lot of that is due to the unplanned downtime in bayport As that site gets back up and running towards the end of the quarter, we do expect to run closer to 95%-100% full rates. as that site gets back up and running towards the end of the quarter we do expect to run closer to 95%-100% full rates

Speaker 15: I think one may say, I've been there, I mean, at Bayport, about 10 days ago, and what I witnessed is all hands on deck. People are working very diligently, different work streams, so that we get the site back up and running latest by the end of Q2. Isn't it, Aaron? I think one may say, I've been there, I mean, at Bayport, about 10 days ago, and what I witnessed is all hands on deck. i think one may say i've been there i mean at bayport about 10 days ago and what i witnessed is all hands on deck People are working very diligently, different work streams, so that we get the site back up and running latest by the end of Q2. people are working very diligently different work streams so that we get the site back up and running latest by the end of q2 Isn't it, Aaron? isn't it aaron

Speaker 1: That's correct. Yeah. That's correct. that's correct Yeah. yeah

Speaker 13: Thank you. Our next question comes from line of Duffy Fischer with Goldman Sachs. Please proceed with your question. Thank you. thank you Our next question comes from line of Duffy Fischer with Goldman Sachs. our next question comes from line of duffy fischer with goldman sachs Please proceed with your question. please proceed with your question

Speaker 5: Yeah, good morning. Two questions maybe on O&P-Americas. If the situation in the Middle East persists, you know, it seems like we're consuming more molecules every day than we're producing today. What happens if we have to try to price polyethylene to destroy demand? I don't think we've ever done that. How high do you think that needs to go to balance supply-demand? The second one is, other than the starting point was lower for polypropylene versus polyethylene, how are you seeing those two chains play out relative to each other? Is one benefiting from this more than the other? Yeah, good morning. yeah good morning Two questions maybe on O&P-Americas. two questions maybe on o&p-americas If the situation in the Middle East persists, you know, it seems like we're consuming more molecules every day than we're producing today. if the situation in the middle east persists you know it seems like we're consuming more molecules every day than we're producing today What happens if we have to try to price polyethylene to destroy demand? what happens if we have to try to price polyethylene to destroy demand I don't think we've ever done that. i don't think we've ever done that How high do you think that needs to go to balance supply-demand? how high do you think that needs to go to balance supply-demand The second one is, other than the starting point was lower for polypropylene versus polyethylene, how are you seeing those two chains play out relative to each other? the second one is other than the starting point was lower for polypropylene versus polyethylene how are you seeing those two chains play out relative to each other Is one benefiting from this more than the other? is one benefiting from this more than the other

Speaker 15: Hi, Duffy. Good question. Before I answer the question, I mean, on O&P-Americas and how high does a polyethylene price actually have to go before you see demand destruction, let me remind everybody, I mean, that the vast majority of polyethylene is going into consumables. A lot of that, as you know, is going into packaging. If you go in a market environment, just like we have seen, I mean, in the pandemic and during a financial crisis, in 2008, 2009, behavior of people changes. People don't go as much to restaurants, but they consume at home, which means more packaging. That's one element. Not necessarily because one goes into a recession that leads, I mean, to destruction of demand for polyethylene. Hi, Duffy. hi duffy Good question. good question Before I answer the question, I mean, on O&P-Americas and how high does a polyethylene price actually have to go before you see demand destruction, let me remind everybody, I mean, that the vast majority of polyethylene is going into consumables. before i answer the question i mean on o&p-americas and how high does a polyethylene price actually have to go before you see demand destruction let me remind everybody i mean that the vast majority of polyethylene is going into consumables A lot of that, as you know, is going into packaging. a lot of that as you know is going into packaging If you go in a market environment, just like we have seen, I mean, in the pandemic and during a financial crisis, in 2008, 2009, behavior of people changes. if you go in a market environment just like we have seen i mean in the pandemic and during a financial crisis in 2008 2009 behavior of people changes People don't go as much to restaurants, but they consume at home, which means more packaging. people don't go as much to restaurants but they consume at home which means more packaging That's one element. that's one element Not necessarily because one goes into a recession that leads, I mean, to destruction of demand for polyethylene. not necessarily because one goes into a recession that leads i mean to destruction of demand for polyethylene Secondly, it continues to be, I mean, the lowest cost, alternative and most efficient alternative, compared, I mean, to other materials, if you wanna package, or if you wanna produce piping, et cetera. Let's not forget these other alternatives also get more expensive in the current market environments. With that, Kim? Secondly, it continues to be, I mean, the lowest cost, alternative and most efficient alternative, compared, I mean, to other materials, if you wanna package, or if you wanna produce piping, et cetera. secondly it continues to be i mean the lowest cost alternative and most efficient alternative compared i mean to other materials if you wanna package or if you wanna produce piping et cetera Let's not forget these other alternatives also get more expensive in the current market environments. let's not forget these other alternatives also get more expensive in the current market environments With that, Kim? with that kim

Speaker 11: Yeah, I'd just make a couple other comments. You know, we've had at least three years, maybe four years of, I'd say, tempered durable demand. You've got pent-up demand for durables. You saw these pricing levels pull through for polyethylene for sure in 2021. You asked a question about polypropylene. Polypropylene price today is $0.60-ish, we'll call it, lower than it was in 2021. You have a lot of pricing power there, and we are well-positioned to capitalize on that. You know, from a polypropylene perspective, between the Middle East production and then think of the LPG that feeds some of the PDH units in the Asia region, probably 70%+ of that market is impacted right now. I think the sleeping giant will be polypropylene as this continues to progress. Yeah, I'd just make a couple other comments. yeah i'd just make a couple other comments You know, we've had at least three years, maybe four years of, I'd say, tempered durable demand. you know we've had at least three years maybe four years of i'd say tempered durable demand You've got pent-up demand for durables. you've got pent-up demand for durables You saw these pricing levels pull through for polyethylene for sure in 2021. you saw these pricing levels pull through for polyethylene for sure in 2021 You asked a question about polypropylene. you asked a question about polypropylene Polypropylene price today is $0.60-ish, we'll call it, lower than it was in 2021. polypropylene price today is $0.60-ish we'll call it lower than it was in 2021 You have a lot of pricing power there, and we are well-positioned to capitalize on that. you have a lot of pricing power there and we are well-positioned to capitalize on that You know, from a polypropylene perspective, between the Middle East production and then think of the LPG that feeds some of the PDH units in the Asia region, probably 70%+ of that market is impacted right now. you know from a polypropylene perspective between the middle east production and then think of the lpg that feeds some of the pdh units in the asia region probably 70%+ of that market is impacted right now I think the sleeping giant will be polypropylene as this continues to progress. i think the sleeping giant will be polypropylene as this continues to progress

Speaker 15: Talking to a lot of my friends, I mean, in Europe, I see already that their behavior is starting to change. Instead of taking a weekend trip somewhere or taking a long holiday, I see that they are thinking about, "We not refurbish, we not stay at home, take a shorter holiday, locally, two day trips." We've seen that behavior in 2021 as well as we came out of the pandemic. Quite a lot of moving elements that we have here that I think one should consider. Talking to a lot of my friends, I mean, in Europe, I see already that their behavior is starting to change. talking to a lot of my friends i mean in europe i see already that their behavior is starting to change Instead of taking a weekend trip somewhere or taking a long holiday, I see that they are thinking about, "We not refurbish, we not stay at home, take a shorter holiday, locally, two day trips." We've seen that behavior in 2021 as well as we came out of the pandemic. instead of taking a weekend trip somewhere or taking a long holiday i see that they are thinking about "we not refurbish we not stay at home take a shorter holiday locally two day trips." we've seen that behavior in 2021 as well as we came out of the pandemic Quite a lot of moving elements that we have here that I think one should consider. quite a lot of moving elements that we have here that i think one should consider

Speaker 13: Thank you. Our next question comes from the line of Jeff Zekauskas with JPMorgan. Please proceed with your question. Thank you. thank you Our next question comes from the line of Jeff Zekauskas with JPMorgan. our next question comes from the line of jeff zekauskas with jpmorgan Please proceed with your question. please proceed with your question

Speaker 7: Thanks very much. The export price of polyethylene is maybe $1,640 a ton, and the price of polyethylene in Asia is maybe $1,285 a ton. For at least from our point of view, you know, maybe Asia is lower by $350 a ton. Why is that? Naphtha values in Asia have really jumped from about $600 a ton to $1,100 a ton, we really haven't seen that kind of raw material inflation, echoed or covered in the polyethylene prices. Can you give us an idea of what's going on? Thanks very much. thanks very much The export price of polyethylene is maybe $1,640 a ton, and the price of polyethylene in Asia is maybe $1,285 a ton. the export price of polyethylene is maybe $1,640 a ton and the price of polyethylene in asia is maybe $1,285 a ton For at least from our point of view, you know, maybe Asia is lower by $350 a ton. for at least from our point of view you know maybe asia is lower by $350 a ton Why is that? why is that Naphtha values in Asia have really jumped from about $600 a ton to $1,100 a ton, we really haven't seen that kind of raw material inflation, echoed or covered in the polyethylene prices. naphtha values in asia have really jumped from about $600 a ton to $1,100 a ton we really haven't seen that kind of raw material inflation echoed or covered in the polyethylene prices Can you give us an idea of what's going on? can you give us an idea of what's going on

Speaker 11: Jeff, I'll take that question. I think there's a couple of different components to that. You know, from a China perspective, they have a much bigger built-in pricing buffer than a lot of the other regions. They had significant crude inventories coming into pre-war. You know, you've heard anything from 4 months-6 months, so let's just generically call it five. You also have different buying behaviors, you have different inventory positions throughout. Let's walk through some of that. Many of the sites are integrated refineries that are processing the crude naphtha to naphtha crackers to polyethylene. That inventory today, two months into this war, is still crude that was bought at a discount to $60 pre-war. You've got coal to olefins production, which sets the floor for the pricing in China. Jeff, I'll take that question. jeff i'll take that question I think there's a couple of different components to that. i think there's a couple of different components to that You know, from a China perspective, they have a much bigger built-in pricing buffer than a lot of the other regions. you know from a china perspective they have a much bigger built-in pricing buffer than a lot of the other regions They had significant crude inventories coming into pre-war. they had significant crude inventories coming into pre-war You know, you've heard anything from 4 months - 6 months, so let's just generically call it five. you know you've heard anything from 4 months - 6 months so let's just generically call it five You also have different buying behaviors, you have different inventory positions throughout. you also have different buying behaviors you have different inventory positions throughout Let's walk through some of that. let's walk through some of that Many of the sites are integrated refineries that are processing the crude naphtha to naphtha crackers to polyethylene. many of the sites are integrated refineries that are processing the crude naphtha to naphtha crackers to polyethylene That inventory today, two months into this war, is still crude that was bought at a discount to $60 pre-war. that inventory today, two months into this war is still crude that was bought at a discount to $60 pre-war You've got coal to olefins production, which sets the floor for the pricing in China. you've got coal to olefins production which sets the floor for the pricing in china Coal price hasn't changed significantly throughout this, similar to kind of North American ethane. You've got the floor being set by the lowest cost production, which is CTO. You've got relatively low priced crude flowing through those crackers. You've got inventory that they had in the system. When the war first broke out, you saw their pricing increase, recently you've seen their pricing hold or decrease as they're depleting the inventory that they have on hand, selling it to other parts of Southeast Asia. Their buffer, the way they operate their system, is slightly different than the rest of the world, but they are not exporting to regions that we are competing with in North America or in Europe. Coal price hasn't changed significantly throughout this, similar to kind of North American ethane. coal price hasn't changed significantly throughout this similar to kind of north american ethane You've got the floor being set by the lowest cost production, which is CTO. you've got the floor being set by the lowest cost production which is cto You've got relatively low priced crude flowing through those crackers. you've got relatively low priced crude flowing through those crackers You've got inventory that they had in the system. you've got inventory that they had in the system When the war first broke out, you saw their pricing increase, recently you've seen their pricing hold or decrease as they're depleting the inventory that they have on hand, selling it to other parts of Southeast Asia. when the war first broke out you saw their pricing increase recently you've seen their pricing hold or decrease as they're depleting the inventory that they have on hand selling it to other parts of southeast asia Their buffer, the way they operate their system, is slightly different than the rest of the world, but they are not exporting to regions that we are competing with in North America or in Europe. their buffer the way they operate their system is slightly different than the rest of the world but they are not exporting to regions that we are competing with in north america or in europe

Speaker 15: Maybe enhancing a little bit from a more conceptual point of view, Jeff, in especially what we are all waiting for on the outcome of the anti-involution measures. We continue to see that focus on replacement of old assets instead of newly developed projects. You saw the results in Q1 of our technology business. This is the lowest since, what, 15 years that we have seen in terms of demand, I mean, for licenses. We've also seen that some priorities are changing. Even projects that already have been approved by the NDRC for the, for the previous five-year plan, priorities are changing and targets for the replacement of the old assets is 2028, 2029. That's what we hear, I mean, on the ground. Maybe enhancing a little bit from a more conceptual point of view, Jeff, in especially what we are all waiting for on the outcome of the anti-involution measures. maybe enhancing a little bit from a more conceptual point of view jeff in especially what we are all waiting for on the outcome of the anti-involution measures We continue to see that focus on replacement of old assets instead of newly developed projects. we continue to see that focus on replacement of old assets instead of newly developed projects You saw the results in Q1 of our technology business. you saw the results in q1 of our technology business This is the lowest since, what, 15 years that we have seen in terms of demand, I mean, for licenses. this is the lowest since what 15 years that we have seen in terms of demand i mean for licenses We've also seen that some priorities are changing. we've also seen that some priorities are changing Even projects that already have been approved by the NDRC for the, for the previous five-year plan, priorities are changing and targets for the replacement of the old assets is 2028, 2029. even projects that already have been approved by the ndrc for the for the previous five-year plan priorities are changing and targets for the replacement of the old assets is 2028 2029 That's what we hear, I mean, on the ground. that's what we hear i mean on the ground Which as a consequence, of course, could also mean reducing availability of cash for new projects, which again, explains why we don't see a lot of demand, I mean, for new licenses. It has definitely not disappeared because at those price levels in China, you see that the operations are running in crackers and polyethylene at lowest technical capacity. You see that players that are not integrated eventually have idled, have shut down their capacities. That's the picture on polyethylene. On polypropylene, it's even more stringent because a lot of PDH-PP plants, it's about 50%, Kim, of the capacity? Which as a consequence, of course, could also mean reducing availability of cash for new projects, which again, explains why we don't see a lot of demand, I mean, for new licenses. which as a consequence of course could also mean reducing availability of cash for new projects which again explains why we don't see a lot of demand i mean for new licenses It has definitely not disappeared because at those price levels in China, you see that the operations are running in crackers and polyethylene at lowest technical capacity. it has definitely not disappeared because at those price levels in china you see that the operations are running in crackers and polyethylene at lowest technical capacity You see that players that are not integrated eventually have idled, have shut down their capacities. you see that players that are not integrated eventually have idled have shut down their capacities That's the picture on polyethylene. that's the picture on polyethylene On polypropylene, it's even more stringent because a lot of PDH-PP plants, it's about 50%, Kim, of the capacity? on polypropylene it's even more stringent because a lot of pdh-pp plants it's about 50% kim of the capacity

Speaker 11: Correct. Correct. correct

Speaker 15: Yeah. That is currently not operating. Yeah. yeah That is currently not operating. that is currently not operating

Speaker 13: Thank you. Our next question comes from line of Vincent Andrews with Morgan Stanley. Please proceed with your question. Thank you. thank you Our next question comes from line of Vincent Andrews with Morgan Stanley. our next question comes from line of vincent andrews with morgan stanley Please proceed with your question. please proceed with your question

Speaker 17: Thank you and good morning. First of all, congratulations to Dave Kinney on a great run. Best wishes in your retirement. If I could ask you, Peter, on O&P-EAI, you're bringing operating rates up, which I assume means you're expecting profits. You've sold the assets, and that's gonna improve the cost structure. What level of profitability and, you know, and give us a wide range, would you expect for the second quarter, you know, as you see markets improve, your production levels come up, maybe you're selling out of some inventory as well. How should we be thinking about O&P-EAI in 2Q and maybe 3Q to the extent you can comment that far? Thank you and good morning. thank you and good morning First of all, congratulations to Dave Kinney on a great run. first of all congratulations to dave kinney on a great run Best wishes in your retirement. best wishes in your retirement If I could ask you, Peter, on O&P-EAI, you're bringing operating rates up, which I assume means you're expecting profits. if i could ask you peter on o&p-eai you're bringing operating rates up which i assume means you're expecting profits You've sold the assets, and that's gonna improve the cost structure. you've sold the assets and that's gonna improve the cost structure What level of profitability and, you know, and give us a wide range, would you expect for the second quarter, you know, as you see markets improve, your production levels come up, maybe you're selling out of some inventory as well. what level of profitability and you know and give us a wide range would you expect for the second quarter you know as you see markets improve your production levels come up maybe you're selling out of some inventory as well How should we be thinking about O&P-EAI in 2Q and maybe 3Q to the extent you can comment that far? how should we be thinking about o&p-eai in 2q and maybe 3q to the extent you can comment that far

Speaker 15: Yeah. Thanks, Vincent. Of course, also thanks for your congratulations, I mean, to Dave. Has been quite a run in my four years working with him together. On EAI, I mean, let me first, I mean, focus here then on Europe. Everybody saw that we closed during the night, so early morning, Houston time on Velogy, the sale of our four assets. If I put that a bit in context as well with regards, I mean, to the contribution that part of the business portfolio has made to the overall LYB. Well, you know, the pretty much the numbers. It was small or even negative in 2025 and even in Q1. The focus, of course, for us, strategically has been that we really have the right portfolio moving forward. Yeah. yeah Thanks, Vincent. thanks vincent Of course, also thanks for your congratulations, I mean, to Dave. of course also thanks for your congratulations i mean to dave Has been quite a run in my four years working with him together. has been quite a run in my four years working with him together On EAI, I mean, let me first, I mean, focus here then on Europe. on eai i mean let me first i mean focus here then on europe Everybody saw that we closed during the night, so early morning, Houston time on Velogy, the sale of our four assets. everybody saw that we closed during the night so early morning houston time on velogy the sale of our four assets If I put that a bit in context as well with regards, I mean, to the contribution that part of the business portfolio has made to the overall LYB. if i put that a bit in context as well with regards i mean to the contribution that part of the business portfolio has made to the overall lyb Well, you know, the pretty much the numbers. well you know the pretty much the numbers It was small or even negative in 2025 and even in Q1. it was small or even negative in 2025 and even in q1 The focus, of course, for us, strategically has been that we really have the right portfolio moving forward. the focus of course for us strategically has been that we really have the right portfolio moving forward The portfolio in Europe that helps, let's say, on increasing our mid-cycle EBITDA margins. I remember once I have shown a slide in an earnings call with historic mid-cycle EBITDA margins globally for LYB of around 18%, and then with all the portfolio measures, increasing that to 21%+, which is quite attractive. Now, this helps, of course, by doing so because we can pool our CapEx to the assets that really have mid-cycle margins, above mid-cycle margins, much more profitable assets, which as a consequence means a reduction in the scope of Velogy for us, LyondellBasell, of about EUR 110 million per year in CapEx. What we have said in the past as well, a reduction in fixed costs directly related to that scope of about EUR 400 million per year. The portfolio in Europe that helps, let's say, on increasing our mid-cycle EBITDA margins. the portfolio in europe that helps let's say on increasing our mid-cycle ebitda margins I remember once I have shown a slide in an earnings call with historic mid-cycle EBITDA margins globally for LYB of around 18%, and then with all the portfolio measures, increasing that to 21%+, which is quite attractive. i remember once i have shown a slide in an earnings call with historic mid-cycle ebitda margins globally for lyb of around 18% and then with all the portfolio measures increasing that to 21%+ which is quite attractive Now, this helps, of course, by doing so because we can pool our CapEx to the assets that really have mid-cycle margins, above mid-cycle margins, much more profitable assets, which as a consequence means a reduction in the scope of Velogy for us, LyondellBasell, of about EUR 110 million per year in CapEx. now this helps of course by doing so because we can pool our capex to the assets that really have mid-cycle margins above mid-cycle margins much more profitable assets which as a consequence means a reduction in the scope of velogy for us lyondellbasell of about eur 110 million per year in capex What we have said in the past as well, a reduction in fixed costs directly related to that scope of about EUR 400 million per year. what we have said in the past as well a reduction in fixed costs directly related to that scope of about eur 400 million per year If margins, what we wish, of course, also to the new owner of the business, if margins continue to go up in Europe, we have, remember the potential of an earn-out of about EUR 100 million as well. Of course, we still will have a very interesting but more differentiated portfolio of products in Europe, with an ethylene capacity which is a bit more than 1 million tons, 1.5 million tons of polyethylene capacity and a bit more, I mean, on polypropylene capacity. If margins, what we wish, of course, also to the new owner of the business, if margins continue to go up in Europe, we have, remember the potential of an earn-out of about EUR 100 million as well. if margins what we wish of course also to the new owner of the business if margins continue to go up in europe we have remember the potential of an earn-out of about eur 100 million as well Of course, we still will have a very interesting but more differentiated portfolio of products in Europe, with an ethylene capacity which is a bit more than 1 million tons, 1.5 million tons of polyethylene capacity and a bit more, I mean, on polypropylene capacity. of course we still will have a very interesting but more differentiated portfolio of products in europe with an ethylene capacity which is a bit more than 1 million tons 1.5 million tons of polyethylene capacity and a bit more i mean on polypropylene capacity And into that rural concept, you know, we also have the investments in Saudi Arabia at the West Coast in our polypropylene joint venture, where we continue to work on the second phase to expand and double the capacity of that joint venture. Moving forward with a different portfolio, we should be able over time, including that, of course, our MoReTec investments, we should be able, over time, to again have very attractive mid-cycle margins in Europe and not having a business approach whereby margins are being diluted. And into that rural concept, you know, we also have the investments in Saudi Arabia at the West Coast in our polypropylene joint venture, where we continue to work on the second phase to expand and double the capacity of that joint venture. and into that rural concept you know we also have the investments in saudi arabia at the west coast in our polypropylene joint venture where we continue to work on the second phase to expand and double the capacity of that joint venture Moving forward with a different portfolio, we should be able over time, including that, of course, our MoReTec investments, we should be able, over time, to again have very attractive mid-cycle margins in Europe and not having a business approach whereby margins are being diluted. moving forward with a different portfolio we should be able over time including that of course our moretec investments we should be able over time to again have very attractive mid-cycle margins in europe and not having a business approach whereby margins are being diluted

Speaker 11: Maybe just to make a couple quick comments. You know, Europe typically sees 25% import on the polymer side. With the problem with the Strait of Hormuz, they're not seeing that. The supply-demand is very tight, continues to give you pricing power on the polymer side. The wild card, as everybody's alluded to, is the price of feedstocks. For example, some people have asked us, you know, pre-call, why are we only operating 80% in Europe? Because we wanna make sure the decisions that we make in Europe are based on sound integrated margin pull-through. In some cases, you know, we also face the same challenge that others do about the monomer availability at an affordable price point to run through some of our smaller assets that are non-integrated at the moment. We continue to see positive momentum. Maybe just to make a couple quick comments. maybe just to make a couple quick comments You know, Europe typically sees 25% import on the polymer side. you know europe typically sees 25% import on the polymer side With the problem with the Strait of Hormuz, they're not seeing that. with the problem with the strait of hormuz they're not seeing that The supply-demand is very tight, continues to give you pricing power on the polymer side. the supply-demand is very tight continues to give you pricing power on the polymer side The wild card, as everybody's alluded to, is the price of feedstocks. the wild card as everybody's alluded to is the price of feedstocks For example, some people have asked us, you know, pre-call, why are we only operating 80% in Europe? for example some people have asked us you know pre-call why are we only operating 80% in europe Because we wanna make sure the decisions that we make in Europe are based on sound integrated margin pull-through. because we wanna make sure the decisions that we make in europe are based on sound integrated margin pull-through In some cases, you know, we also face the same challenge that others do about the monomer availability at an affordable price point to run through some of our smaller assets that are non-integrated at the moment. in some cases you know we also face the same challenge that others do about the monomer availability at an affordable price point to run through some of our smaller assets that are non-integrated at the moment We continue to see positive momentum. we continue to see positive momentum Just as a rule of thumb, a $100 per ton increase on an annualized basis is about $280 million. Just as a rule of thumb, a $100 per ton increase on an annualized basis is about $280 million. just as a rule of thumb a $100 per ton increase on an annualized basis is about $280 million

Speaker 13: Thank you. Our next question comes from the line of John Roberts with Mizuho Securities. Please proceed with your question. Thank you. thank you Our next question comes from the line of John Roberts with Mizuho Securities. our next question comes from the line of john roberts with mizuho securities Please proceed with your question. please proceed with your question

Speaker 8: Thank you. In the APS segment, how long do you think it will take to get your pricing to get spreads back with the underlying polyolefin cost increases that are being passed through there? Will the tightness in the polyolefins market at all tighten the engineered plastics industry as well? Thank you. thank you In the APS segment, how long do you think it will take to get your pricing to get spreads back with the underlying polyolefin cost increases that are being passed through there? in the aps segment how long do you think it will take to get your pricing to get spreads back with the underlying polyolefin cost increases that are being passed through there Will the tightness in the polyolefins market at all tighten the engineered plastics industry as well? will the tightness in the polyolefins market at all tighten the engineered plastics industry as well

Speaker 16: For the non-contracted business, we have aggressively moved, and we see actually, pretty good acceptance of the price increases, because the whole market is moving up. It's really the contracted, and some of those are monthly, and some of them are quarterly. It's mostly the quarterly part, where there's a delay. What we see, in our segment is actually market demand is surprisingly strong, and we see some movement in particular packaging and durable goods where demand is strong in the Western world, so Americas region and Europe. From what we see is that basically our customer demand is strong because there's less import of finished goods coming in from Asia, as well as from, plastics films, packaging films. That's helping our customers with actually pretty strong demand. For the non-contracted business, we have aggressively moved, and we see actually, pretty good acceptance of the price increases, because the whole market is moving up. for the non-contracted business we have aggressively moved and we see actually pretty good acceptance of the price increases because the whole market is moving up It's really the contracted, and some of those are monthly, and some of them are quarterly. it's really the contracted and some of those are monthly and some of them are quarterly It's mostly the quarterly part, where there's a delay. it's mostly the quarterly part where there's a delay What we see, in our segment is actually market demand is surprisingly strong, and we see some movement in particular packaging and durable goods where demand is strong in the Western world, so Americas region and Europe. what we see in our segment is actually market demand is surprisingly strong and we see some movement in particular packaging and durable goods where demand is strong in the western world so americas region and europe From what we see is that basically our customer demand is strong because there's less import of finished goods coming in from Asia, as well as from, plastics films, packaging films. from what we see is that basically our customer demand is strong because there's less import of finished goods coming in from asia as well as from plastics films packaging films That's helping our customers with actually pretty strong demand. that's helping our customers with actually pretty strong demand We'll see how long that lasts, but that's a positive sign in terms of the market for our business. We'll see how long that lasts, but that's a positive sign in terms of the market for our business. we'll see how long that lasts but that's a positive sign in terms of the market for our business

Speaker 13: Thank you. Our next question comes from the line of Kevin McCarthy with Vertical Research Partners. Please proceed with your question. Thank you. thank you Our next question comes from the line of Kevin McCarthy with Vertical Research Partners. our next question comes from the line of kevin mccarthy with vertical research partners Please proceed with your question. please proceed with your question

Speaker 10: Yes, thank you. I'd echo my congratulations to Mr. Kinney. Very much appreciate your partnership over the years and best of luck to you. My question relates to O&P-Americas. If we look back at history, that business earned quarterly EBITDA between $1.5 billion and $1.6 billion at the last peak in the middle quarters of 2021. My question would be, you know, is that sort of level in your mind realistic or unrealistic in today's environment if the conflict were to persist? Maybe you could compare and contrast what you're seeing today versus what you saw back then. Yes, thank you. yes thank you I'd echo my congratulations to Mr. Kinney. i'd echo my congratulations to mr kinney Very much appreciate your partnership over the years and best of luck to you. very much appreciate your partnership over the years and best of luck to you My question relates to O&P-Americas. my question relates to o&p-americas If we look back at history, that business earned quarterly EBITDA between $1.5 billion and $1.6 billion at the last peak in the middle quarters of 2021. if we look back at history that business earned quarterly ebitda between $1.5 billion and $1.6 billion at the last peak in the middle quarters of 2021 My question would be, you know, is that sort of level in your mind realistic or unrealistic in today's environment if the conflict were to persist? my question would be you know is that sort of level in your mind realistic or unrealistic in today's environment if the conflict were to persist Maybe you could compare and contrast what you're seeing today versus what you saw back then. maybe you could compare and contrast what you're seeing today versus what you saw back then

Speaker 15: Let me start with a couple of comments on your very good question, Kevin, and then hand over also to Kim to give you a little bit more details on this. Well, Kim already said, I mean, that we have now a settlement of a $0.30 per pound in April after we had $0.10 per pound in March. If you take that settlement into consideration, then we're still, in terms of margins, $0.10-$0.15 per pound in terms of pricing. Sorry. Let me start with a couple of comments on your very good question, Kevin, and then hand over also to Kim to give you a little bit more details on this. let me start with a couple of comments on your very good question kevin and then hand over also to kim to give you a little bit more details on this Well, Kim already said, I mean, that we have now a settlement of a $0.30 per pound in April after we had $0.10 per pound in March. well kim already said i mean that we have now a settlement of a $0.30 per pound in april after we had $0.10 per pound in march If you take that settlement into consideration, then we're still, in terms of margins, $0.10-$0.15 per pound in terms of pricing. if you take that settlement into consideration then we're still in terms of margins $0.10-$0.15 per pound in terms of pricing Sorry. sorry

Speaker 11: In terms of pricing. In terms of pricing. in terms of pricing

Speaker 15: In terms of pricing. We're still $0.10-$0.15 per pound below what we have seen in 2021. It's only $0.10-$0.15 per pound. That means, as a consequence with the price increase announcements that we continue to feel very strong about for the next month, we would get on that level or above that level of 2021. That is just the pricing element. If you look at it from a margin perspective, of course, we know that the margins are going up because ethane is currently much lower than it was at the end of last year, beginning of this year, which of course also has to do with the fact, I mean, that there is such a huge demand, I mean, for natural gas. You see that the spreads actually are going up. In terms of pricing. in terms of pricing We're still $0.10-$0.15 per pound below what we have seen in 2021. we're still $0.10-$0.15 per pound below what we have seen in 2021 It's only $0.10-$0.15 per pound. it's only $0.10-$0.15 per pound That means, as a consequence with the price increase announcements that we continue to feel very strong about for the next month, we would get on that level or above that level of 2021. that means as a consequence with the price increase announcements that we continue to feel very strong about for the next month we would get on that level or above that level of 2021 That is just the pricing element. that is just the pricing element If you look at it from a margin perspective, of course, we know that the margins are going up because ethane is currently much lower than it was at the end of last year, beginning of this year, which of course also has to do with the fact, I mean, that there is such a huge demand, I mean, for natural gas. if you look at it from a margin perspective of course we know that the margins are going up because ethane is currently much lower than it was at the end of last year beginning of this year which of course also has to do with the fact i mean that there is such a huge demand i mean for natural gas You see that the spreads actually are going up. you see that the spreads actually are going up As a consequence, I would say, sure. I mean, nothing is impossible, if you look at what is currently going on, and we alluded to the fact that polyethylene is very robust also in inflationary scenarios. Kim, anything you wanna add? As a consequence, I would say, sure. as a consequence i would say sure I mean, nothing is impossible, if you look at what is currently going on, and we alluded to the fact that polyethylene is very robust also in inflationary scenarios. i mean nothing is impossible if you look at what is currently going on and we alluded to the fact that polyethylene is very robust also in inflationary scenarios Kim, anything you wanna add? kim anything you wanna add

Speaker 11: I'll just go back to a couple of the comments that I made earlier to try to connect a few of the dots. I think as it relates to North American polyethylene margins, what we see is, and CMA's forecast is similar, this is where we do agree with the consultants, that mid-cycle margins will be there in the second quarter. If you go back and look at 2021 mid-cycle margins for PE, yes, I think we're gonna be in a very similar situation. I also said earlier that in 2021 that we had a $0.60 higher price of polypropylene. I think it really depends how much polypropylene runs up. I don't think it will run up as fast as polyethylene has, but I do think the spreads will continue to increase. I'll just go back to a couple of the comments that I made earlier to try to connect a few of the dots. i'll just go back to a couple of the comments that i made earlier to try to connect a few of the dots I think as it relates to North American polyethylene margins, what we see is, and CMA's forecast is similar, this is where we do agree with the consultants, that mid-cycle margins will be there in the second quarter. i think as it relates to north american polyethylene margins what we see is and cma's forecast is similar this is where we do agree with the consultants that mid-cycle margins will be there in the second quarter If you go back and look at 2021 mid-cycle margins for PE, yes, I think we're gonna be in a very similar situation. if you go back and look at 2021 mid-cycle margins for pe yes i think we're gonna be in a very similar situation I also said earlier that in 2021 that we had a $0.60 higher price of polypropylene. i also said earlier that in 2021 that we had a $0.60 higher price of polypropylene I think it really depends how much polypropylene runs up. i think it really depends how much polypropylene runs up I don't think it will run up as fast as polyethylene has, but I do think the spreads will continue to increase. i don't think it will run up as fast as polyethylene has but i do think the spreads will continue to increase I would look at those two components differently when you're trying to look at how we performed in 2021 versus how we might perform in 2026. I would look at those two components differently when you're trying to look at how we performed in 2021 versus how we might perform in 2026. i would look at those two components differently when you're trying to look at how we performed in 2021 versus how we might perform in 2026

Speaker 13: Thank you. Our next question comes from the line of Frank Mitsch with Fermium Research. Please proceed with your question. Thank you. thank you Our next question comes from the line of Frank Mitsch with Fermium Research. our next question comes from the line of frank mitsch with fermium research Please proceed with your question. please proceed with your question

Speaker 6: Thank you, and I need to come clean, Mr. Kinney. On the PPG call, I told Vince on the occasion of his retirement that he was the best IR ever. To be frank, it was always you. Best wishes, my friend. I'm sure we'll stay in touch. Aaron, I wanna come back on the I&D operating rates for the second quarter. You said 75%. Thank you, and I need to come clean, Mr. Kinney. thank you and i need to come clean mr kinney On the PPG call, I told Vince on the occasion of his retirement that he was the best IR ever. on the ppg call i told vince on the occasion of his retirement that he was the best ir ever To be frank, it was always you. to be frank it was always you Best wishes, my friend. best wishes my friend I'm sure we'll stay in touch. i'm sure we'll stay in touch Aaron, I wanna come back on the I&D operating rates for the second quarter. aaron i wanna come back on the i&d operating rates for the second quarter You said 75%. you said 75%

Speaker 1: Sure. Sure. sure

Speaker 6: given the outages that you have. You said that you're gonna end it, you know, at 95%-100%, you know, when you get everything back up and running. Is that sort of the run rate that we should be expecting in the third quarter? At, you know, as you see, as you can look out into the future? And then also for the first quarter, I think you guys guided to 85% operating rate in I&D, and I was curious as to what that actually came in at, given the outages. Thanks. given the outages that you have. given the outages that you have You said that you're gonna end it, you know, at 95%-100%, you know, when you get everything back up and running. you said that you're gonna end it you know at 95%-100% you know when you get everything back up and running Is that sort of the run rate that we should be expecting in the third quarter? is that sort of the run rate that we should be expecting in the third quarter At, you know, as you see, as you can look out into the future? at you know as you see as you can look out into the future And then also for the first quarter, I think you guys guided to 85% operating rate in I&D, and I was curious as to what that actually came in at, given the outages. and then also for the first quarter i think you guys guided to 85% operating rate in i&d and i was curious as to what that actually came in at given the outages Thanks. thanks

Speaker 1: Yeah. Thanks for the question. I guess I have to be careful about what I, what I promise in these calls, 95%-100%. Obviously, anything that we have available to us, we're gonna be running full. We still have some limitations at our LaPorte site in the asset unit that's limiting us to get to full rates. Obviously, once Bayport is back up and running, we will be running everything that we have at full capacity moving forward. 95%-100%, I wouldn't necessarily use that, but we will be running at benchmark rates across the board. Yeah. yeah Thanks for the question. thanks for the question I guess I have to be careful about what I, what I promise in these calls, 95%-100%. i guess i have to be careful about what i what i promise in these calls 95%-100% Obviously, anything that we have available to us, we're gonna be running full. obviously anything that we have available to us we're gonna be running full We still have some limitations at our LaPorte site in the asset unit that's limiting us to get to full rates. we still have some limitations at our laporte site in the asset unit that's limiting us to get to full rates Obviously, once Bayport is back up and running, we will be running everything that we have at full capacity moving forward. 95%-100%, I wouldn't necessarily use that, but we will be running at benchmark rates across the board. obviously once bayport is back up and running we will be running everything that we have at full capacity moving forward 95%-100% i wouldn't necessarily use that but we will be running at benchmark rates across the board

Speaker 13: Thank you. Our next question comes from the line of Mike Sison with Wells Fargo. Please proceed with your question. Thank you. thank you Our next question comes from the line of Mike Sison with Wells Fargo. our next question comes from the line of mike sison with wells fargo Please proceed with your question. please proceed with your question

Speaker 12: Hey, good morning, and congrats to Dave as well. In terms of polypropylene, you've talked about it a couple times. It's, you know, margins have been not a lot for the last couple years. Are, is that business or can that product line turn positive? It used to generate a good amount of EBITDA for polypropylene. How do you think that shapes up this year if the pricing outlook sort of holds? Hey, good morning, and congrats to Dave as well. hey good morning and congrats to dave as well In terms of polypropylene, you've talked about it a couple times. in terms of polypropylene you've talked about it a couple times It's, you know, margins have been not a lot for the last couple years. it's you know margins have been not a lot for the last couple years Are, is that business or can that product line turn positive? are is that business or can that product line turn positive It used to generate a good amount of EBITDA for polypropylene. it used to generate a good amount of ebitda for polypropylene How do you think that shapes up this year if the pricing outlook sort of holds? how do you think that shapes up this year if the pricing outlook sort of holds

Speaker 15: Yeah. I mean, the possibility, of course, I mean, Kim said it. I mean, we have the biggest upside, I mean, the sleeping giants. We have the biggest upside on the polypropylene side, and the market dynamic has completely changed. Normally, I mean, you know, the cash cost curves in polypropylene are very flat, I mean, between the different regions. Of course, now, that is changing the dynamic that we are having in the United States, where, as you know, we have a lot of our assets. Normally, polypropylene stayed in the markets where it was produced. Now, of course, there is a lot of demand because of the loss of propane to Asian polypropylene producers. Yeah. yeah I mean, the possibility, of course, I mean, Kim said it. i mean the possibility of course i mean kim said it I mean, we have the biggest upside, I mean, the sleeping giants. i mean we have the biggest upside i mean the sleeping giants We have the biggest upside on the polypropylene side, and the market dynamic has completely changed. we have the biggest upside on the polypropylene side and the market dynamic has completely changed Normally, I mean, you know, the cash cost curves in polypropylene are very flat, I mean, between the different regions. normally i mean you know the cash cost curves in polypropylene are very flat i mean between the different regions Of course, now, that is changing the dynamic that we are having in the United States, where, as you know, we have a lot of our assets. of course now that is changing the dynamic that we are having in the united states where as you know we have a lot of our assets Normally, polypropylene stayed in the markets where it was produced. normally polypropylene stayed in the markets where it was produced Now, of course, there is a lot of demand because of the loss of propane to Asian polypropylene producers. now of course there is a lot of demand because of the loss of propane to asian polypropylene producers A lot of demand, I mean, globally, to export, polypropylene, which of course uplifts, I mean, the markets, the margins, I mean, in the markets. Kim? A lot of demand, I mean, globally, to export, polypropylene, which of course uplifts, I mean, the markets, the margins, I mean, in the markets. a lot of demand i mean globally to export polypropylene which of course uplifts i mean the markets the margins i mean in the markets Kim? kim

Speaker 11: I would agree with you, Peter. I think, you know, we've been operating polypropylene in Europe and in the U.S., call it 70%-75% the last two years. You've got a 20%, 15%-20% operating rating improvement opportunity as well as spread. The longer this goes on, the better. I would agree with you, Peter. i would agree with you peter I think, you know, we've been operating polypropylene in Europe and in the U.S., call it 70% - 75% the last two years. i think you know we've been operating polypropylene in europe and in the u.s call it 70% - 75% the last two years You've got a 20%, 15% - 20% operating rating improvement opportunity as well as spread. you've got a 20% 15% - 20% operating rating improvement opportunity as well as spread The longer this goes on, the better. the longer this goes on the better

Speaker 15: I think approximately what 70- I think approximately what 70- i think approximately what 70-

Speaker 11: From a polypropylene perspective. From a polypropylene perspective. from a polypropylene perspective

Speaker 15: Yeah. I think probably what 70% of supply is impacted by the Strait of Hormuz's closure. Yeah. yeah I think probably what 70% of supply is impacted by the Strait of Hormuz's closure. i think probably what 70% of supply is impacted by the strait of hormuz's closure

Speaker 11: Directly or indirectly, absolutely. Directly or indirectly, absolutely. directly or indirectly absolutely

Speaker 15: Yeah. Yeah. yeah

Speaker 11: Yes. You've got the volume you lose out of the Middle East plus the LPG feed to the PDH. Yes. yes You've got the volume you lose out of the Middle East plus the LPG feed to the PDH. you've got the volume you lose out of the middle east plus the lpg feed to the pdh

Speaker 15: Yeah. Right. Yeah. yeah Right. right

Speaker 13: Thank you. Our next question comes from the line of Josh Spector with UBS. Please proceed with your question. Thank you. thank you Our next question comes from the line of Josh Spector with UBS. our next question comes from the line of josh spector with ubs Please proceed with your question. please proceed with your question

Speaker 9: Hi, good morning. Just wanted to ask a comment about licensing revenue and technology. I mean, I know you've been at a low level for some time here, and you've kinda highlighted there's been little activity in terms of looking at new projects, but your near-term outlook comments says that you expect that to increase. Is that a lag of just some existing kind of maybe discussions coming to fruition, or are you seeing actually more interest in, you know, certain other product chains about adding more capacity now? Hi, good morning. hi good morning Just wanted to ask a comment about licensing revenue and technology. just wanted to ask a comment about licensing revenue and technology I mean, I know you've been at a low level for some time here, and you've kinda highlighted there's been little activity in terms of looking at new projects, but your near-term outlook comments says that you expect that to increase. i mean i know you've been at a low level for some time here and you've kinda highlighted there's been little activity in terms of looking at new projects but your near-term outlook comments says that you expect that to increase Is that a lag of just some existing kind of maybe discussions coming to fruition, or are you seeing actually more interest in, you know, certain other product chains about adding more capacity now? is that a lag of just some existing kind of maybe discussions coming to fruition or are you seeing actually more interest in you know certain other product chains about adding more capacity now

Speaker 15: Thank you, Josh. I mean, it is a lag. It's simply because of some milestones that are being accomplished, and therefore, on the licensing, so not the catalyst sale, but on the licensing, Q2 should be better than Q1, as I said in the prepared remarks. It is definitely not related to having a higher demand. I said it before, demand is historically at the lowest level. We see projects that already were progressing, let's say around a couple of milestones that are now, as they call it, I mean, in the reserved status. They're not moving forward. They're being looked at again, and all that will delay, let's say the investments from already, let's say, last year, low licensing. The year before we saw reduced licensing. Thank you, Josh. thank you josh I mean, it is a lag. i mean it is a lag It's simply because of some milestones that are being accomplished, and therefore, on the licensing, so not the catalyst sale, but on the licensing, Q2 should be better than Q1, as I said in the prepared remarks. it's simply because of some milestones that are being accomplished and therefore on the licensing so not the catalyst sale but on the licensing q2 should be better than q1 as i said in the prepared remarks It is definitely not related to having a higher demand. it is definitely not related to having a higher demand I said it before, demand is historically at the lowest level. i said it before demand is historically at the lowest level We see projects that already were progressing, let's say around a couple of milestones that are now, as they call it, I mean, in the reserved status. we see projects that already were progressing let's say around a couple of milestones that are now as they call it i mean in the reserved status They're not moving forward. they're not moving forward They're being looked at again, and all that will delay, let's say the investments from already, let's say, last year, low licensing. they're being looked at again and all that will delay let's say the investments from already let's say last year low licensing The year before we saw reduced licensing. the year before we saw reduced licensing All that will come to fruition then in, let's say two, three, four years from now. All that will come to fruition then in, let's say two, three, four years from now. all that will come to fruition then in let's say two three four years from now

Speaker 9: Yeah. Yeah. yeah

Speaker 15: That means that there will not be a lot of investments that will come on stream. That means that there will not be a lot of investments that will come on stream. that means that there will not be a lot of investments that will come on stream

Speaker 13: Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I'll turn the floor back to Peter Vanacker for any final comments. Thank you. thank you Ladies and gentlemen, that concludes our time allowed for questions. ladies and gentlemen that concludes our time allowed for questions I'll turn the floor back to Peter Vanacker for any final comments. i'll turn the floor back to peter vanacker for any final comments

Speaker 15: Thank you again for all the thoughtful questions. The events of the past two months have transformed the global cost curve for petrochemicals and created a massive gap in supply for LYB's essential products. While we all look forward to peace and the normalization of traffic through the Strait of Hormuz, the economic and logistical impacts of this conflict will persist many quarters beyond the eventual end of the disruption. Of course, at LYB, we're ramping up our cost advantage U.S. capacity to address the global supply gap for both domestic and export customers. In Europe, we're passing through higher costs for energy and raw materials so that local production can once again profitably serve local customer needs. Our global polypropylene capacity, as we alluded to before, the sleeping giant within LYB, is increasingly needed to serve global demands. Thank you again for all the thoughtful questions. thank you again for all the thoughtful questions The events of the past two months have transformed the global cost curve for petrochemicals and created a massive gap in supply for LYB's essential products. the events of the past two months have transformed the global cost curve for petrochemicals and created a massive gap in supply for lyb's essential products While we all look forward to peace and the normalization of traffic through the Strait of Hormuz , the economic and logistical impacts of this conflict will persist many quarters beyond the eventual end of the disruption. while we all look forward to peace and the normalization of traffic through the strait of hormuz the economic and logistical impacts of this conflict will persist many quarters beyond the eventual end of the disruption Of course, at LYB, we're ramping up our cost advantage U.S. capacity to address the global supply gap for both domestic and export customers. of course at lyb we're ramping up our cost advantage u.s capacity to address the global supply gap for both domestic and export customers In Europe, we're passing through higher costs for energy and raw materials so that local production can once again profitably serve local customer needs. in europe we're passing through higher costs for energy and raw materials so that local production can once again profitably serve local customer needs Our global polypropylene capacity, as we alluded to before, the sleeping giant within LYB, is increasingly needed to serve global demands. our global polypropylene capacity as we alluded to before the sleeping giant within lyb is increasingly needed to serve global demands You can be confident LYB will remain focused on our strategic priorities and long-term value creation in this dynamic environment. We hope you all have a great weekend. Stay well and stay safe. Thank you. You can be confident LYB will remain focused on our strategic priorities and long-term value creation in this dynamic environment. you can be confident lyb will remain focused on our strategic priorities and long-term value creation in this dynamic environment We hope you all have a great weekend. we hope you all have a great weekend Stay well and stay safe. stay well and stay safe Thank you. thank you

Speaker 13: Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Thank you. thank you This concludes today's conference. this concludes today's conference You may disconnect your lines at this time. you may disconnect your lines at this time Thank you for your participation. thank you for your participation