LYB · 10-Q · 2026Q3 · Full report

Middle East Supply Disruptions

LyondellBasell Industries N.V. · 2026-10-30 · Importance 38 · Surprise 24

Management says Middle East conflict-related supply disruptions constrained industry supply and affected pricing and margins in the first nine months of 2026. It expects conditions in the Middle East to remain fluid and a return to pre-conflict conditions to be nonlinear and take longer than anticipated. Customer buying patterns have also been affected by inventory levels and price volatility, while polyethylene domestic and export demand and oxyfuels margins and demand remained strong through the third quarter.

Key facts

• In the first nine months of 2026, I&D oxyfuels and related products increased EBITDA by 55% due to improved margins from higher crude and gasoline crack spreads; propylene oxide and derivatives increased EBITDA by 26%, primarily from supply-constrained margin expansion related to the Middle East conflict. source
• O&P-EAI polymer results reduced third-quarter 2026 EBITDA by 30% as margins declined due to lower prices and market volatility related to the Middle East conflict. source
• O&P-EAI olefins and polymer results increased EBITDA by 7% and 33%, respectively, in the first nine months of 2026, driven by higher margins from industry supply constraints associated with the Middle East conflict. source
• O&P-Americas first-nine-months 2026 revenue increased 17% from higher prices due to industry supply disruptions and 5% from higher sales volumes driven by increased co-product sales. source
• APS first-nine-months 2026 revenue increased 8% from higher average prices due to Middle East-related industry supply constraints, decreased 5% from weaker-demand-related lower volumes, and increased 2% from favorable foreign exchange. source
• In the first nine months of 2026, O&P-Americas and O&P-EAI margins improved due to industry supply constraints resulting from the Middle East conflict. source
• O&P-Americas third-quarter 2026 EBITDA declined primarily due to lower margins from softening prices and market conditions, reflecting pricing volatility associated with the Middle East conflict. source
• O&P-Americas first-nine-months 2026 EBITDA improved as prices and margins increased due to the Middle East conflict. source