LyondellBasell Postpones Restart of Berre, France Cracker until Next Year

Rhea-AI Summary

LyondellBasell (NYSE: LYB) announced that its ethylene cracker in Berre, France, will remain offline until early 2023 due to a fire on August 2. Although repairs are expected to be completed by November, the company cited high energy costs, declining margins, and reduced demand for products in the region as reasons for the delay. This decision may impact the company's production capabilities and financial performance in the near term.

Positive

• None.

Negative

• Delay in restarting the Berre ethylene cracker until early 2023 affects production.
• Ongoing high energy costs and compressing margins may strain financial performance.
• Decreased demand for products in the region raises concerns about future sales.

HOUSTON and BERRE, France, Sept. 28, 2022 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced the ethylene cracker at its integrated olefins and polyolefins production site in Berre, France will not restart until early 2023.

The chemical company's French ethylene cracker was damaged by a fire on August 2. While repairs should be completed by November, the combination of persistently high energy costs, compressing margins and falling demand for products in the region contributed to the decision to delay the restart. 

ABOUT LYONDELLBASELL
As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization. In 2022, LyondellBasell was named as one of FORTUNE Magazine's "World's Most Admired Companies" for the fifth consecutive year. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.

FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the chemical and polymers industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; and risks and uncertainties posed by international operations, including foreign currency fluctuations. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2021, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law. This release contains time sensitive information that is accurate only as of the date hereof.

 

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SOURCE LyondellBasell Industries

FAQ

When will the Berre ethylene cracker restart?

The Berre ethylene cracker is expected to restart in early 2023.

What caused the delay in the Berre cracker restart?

The delay is due to a fire on August 2, combined with high energy costs, declining margins, and reduced demand.

What is LyondellBasell's stock symbol?

LyondellBasell's stock symbol is LYB.

What was the impact of the fire on LyondellBasell?

The fire damaged the ethylene cracker, leading to a postponement of its restart.

Are there any financial implications for LyondellBasell due to the cracker delay?

Yes, the delay may negatively impact production capacity and financial performance.