Lyondell Basell 2Q17 Earnings Call Notes

Bhavesh Vaghjibhai Patel – LyondellBasell Industries NV

Operating rates at 95-99% of capacity

“Slide 5/6 illustrates our strong second quarter performance, with operating rates of 98% of nameplate capacity across our U.S. and European ethylene crackers. Our polyethylene production operated at 95% of capacity. And I’m particularly pleased to report the rebound in performance at our Houston refinery, where crude throughput rates increased to an average of 99% of capacity during the second quarter.”

Ehtylene prices have decreased

“During July, spot ethylene prices have decreased due to strong industry supply and increased inventories. After relatively light spring maintenance season, consulting services are predicting a return to typical levels of per-planned maintenance for September and October. Polyethylene markets are balanced, while polypropylene demand is relatively strong. No major maintenance is planned in our olefin system for the remainder of 2017.”

Markets are still relatively balanced

“Yes, I think markets are still relatively balanced here in the U.S. and globally. And so, as evidenced by initial reports of the rollover on polyethylene price here in July, I won’t hazard a forecast on the future. But I think we’re going into the second half of the year with pretty balanced markets and demand growing at a good pace globally. So I think that whatever lies ahead we’re going into it with very strong operating rates and very constructive markets.”