In advance of publishing its first-quarter 2020 financial results on 1 May, LyondellBasell (LYB, Houston, Texas / USA; www.lyondellbasell.com) provided a glance at how its businesses are performing against the backdrop of the ongoing coronavirus pandemic and the plunge in the price of oil, both of which are impacting global markets for its products. Currently, the US-headquartered olefins and polyolefins giant said all of its major global manufacturing sites are operational, as chemicals have been declared an “essential” industry.

“Demand for plastics used in packaging and medical applications is still robust,” CEO Bob Patel said. In response to lower demand from segments such as automotive, however, the group has temporarily idled “several small plants” – which it declined to identify – in its newest segment, Advanced Polymer Solutions. The segment incorporates activities of A. Schulman, acquired by LyondellBasell in August 2019 (see Plasteurope.com of 23.08.2018). Lower oil prices and reduced demand for transportation fuels are affecting the refining and oxyfuels segments, and this is expected to adversely affect results for the second quarter, the CEO added.

First-quarter 2020 figures are expected to show group net income in the range of USD 110-180m, with EBITDA in the range of USD 610-680m. As the full extent of the pandemic and the oil price drop remains uncertain, Patel said LYB has developed strategies to respond to a variety of economic scenarios, including “disciplined approach to capital deployment.”

To reduce operational and financial risk, management is postponing selected but as yet unspecified growth projects and planned maintenance. The reduced activity will also lower 2020 capital spending by around 20% to USD 1.9 bn from the initially projected USD 2.4 bn planned earlier.