LyondellBasell Industries (NYSE: LYB) reported Q1 EPS of $3.18, $0.59 better than the analyst estimate of $2.59. Revenue for the quarter came in at $9.08 billion versus the consensus estimate of $9.09 billion.

"First quarter performance built upon the economic momentum we saw toward the end of last year. We experienced persistently strong consumer-driven demand, recovery in durable goods markets and industry supply constraints, which enabled price increases and drove margin improvements for many of our products. During February, unusually cold weather and related power outages impacted operations in our industry across the state of Texas and reduced our production volumes. In March we achieved the first full quarter of results for our newly-formed Louisiana joint venture. We benefited from the increased geographic diversity of our portfolio as the Louisiana ethylene cracker operated continuously when most Texas assets were down due to the cold weather. Tight markets and strong demand drove margin improvements in both of our Olefins and Polyolefins segments as well as most of the businesses in our Intermediates and Derivatives segment. Higher demand from automotive and other non-durable markets increased volumes for our Advanced Polymer Solutions segment while margins compressed due to rapidly rising raw material costs. As the industry enters the second quarter with very low inventory levels, we expect these favorable market conditions will persist as production returns," said Bob Patel, LyondellBasell CEO.

"Amidst a rapidly recovering global economy and improving market conditions, we remained focused on advancing the circular economy and the sustainable solutions we offer customers. Over the past two years, we expanded our mechanical recycling manufacturing capacity in Europe through our Quality Circular Polymers joint venture with SUEZ and also commercialized polyethylene and polypropylene products made with renewable bio-based feedstocks. We are advancing LyondellBasell's proprietary catalyzed pyrolysis technology at our MoReTec molecular recycling pilot facility in Italy with the goal of eventually bringing this potentially game-changing technology to commercial scale. In April we launched a suite of products under the brand name Circulen that enables brand owners to improve the sustainability of their consumer products," said Patel.

OUTLOOK

"LyondellBasell is emerging stronger from the pandemic and the associated global recession. With no significant planned maintenance for our assets during the second quarter, we plan to operate at nearly full capacity worldwide to meet robust demand that is expected to persist due to low inventories and maintenance downtime across our industry. Strong North American integrated polyethylene margins are anticipated to continue as U.S. producers seek to fulfill domestic order backlogs, rebuild inventories and serve export demand. During the second half of 2021, increased mobility should drive higher demand for gasoline and jet fuel, improving margins for our Refining and Oxyfuels & Related Products businesses. We also expect that moderating feedstock costs will increase second quarter margins for our Advanced Polymer Solutions segment."

"We believe that our recent value-driven growth investments should enable LyondellBasell to establish new benchmarks for the profitability of our company over the coming years. With an improving outlook for cash generation, we remain committed to further strengthening our investment grade balance sheet through deleveraging. In both January and April, we repaid $500 million of outstanding debt for a total of $1 billion year to date with more debt reduction planned for the remainder of 2021. By extending our robust track record of cash generation and fortifying our balance sheet, we are emerging stronger, building upon our current momentum and continuing to capture opportunities through business cycles," Patel said.

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