In January 2024, LyondellBasell entered into an agreement to acquire a 35% interest in Saudi Arabia-based National Petrochemical Industrial Company (NATPET) for approximately $500 million. The transaction is expected to close in the coming months and will be included in the O&P-EAI segment.

Costs incurred for the planned exit from the refinery business through March 31, 2024, were $557 million. The estimated total exit costs range from $560 million to $1.050 billion.

Capital expenditures in Q1 2024 totaled $483 million, with approximately 80% supporting sustaining maintenance and the remaining supporting profit-generating growth projects.

The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2024.

In the first quarter of 2024, LyondellBasell successfully issued $750 million of guaranteed notes to refinance the 2024 maturity at a lower rate. This demonstrates proactive debt management.

Average operating rates were 85% for O&P-Americas and O&P-EAI segments and 80% for the Intermediates & Derivatives segment. This indicates some operational challenges impacting production volume.

There have been no material changes to the risk factors associated with the business previously disclosed in “Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023.

The cautionary statement emphasizes that actual outcomes and results may differ materially from forward-looking statements due to a variety of factors including raw material costs, industry capacity, unplanned operating interruptions, and economic conditions.

In North America, lower costs for natural gas-based feedstocks and energy benefited olefins and polyolefins margins, providing a competitive advantage in that region.

In Europe, logistics disruptions in the Red Sea restricted competitive imports and led to increased volumes from our local assets, indicating a shift in competitive dynamics.

Globally, tepid demand for durable goods continued to challenge volumes and margins for polypropylene and propylene oxide, indicating a competitive disadvantage in those product lines.

As of April 24, 2024, approximately 33.1 million shares remained under the share repurchase authorization, indicating continued commitment to returning capital to shareholders.

Dividend payments totaled $408 million in the first quarter of 2024, demonstrating a commitment to shareholder returns.

LyondellBasell is targeting shareholder returns of 70% of free cash flow, defined as net cash provided by operating activities less capital expenditures, over the long term.

In the second quarter of 2024, the company expects seasonal demand improvements across most of its segments.

The company continues to monitor targeted stimulus efforts and remains watchful for demand improvements in China, indicating the importance of that market.

Low costs for natural gas and NGLs should continue to benefit margins for North American and Middle East production relative to higher oil-based costs in most other regions.