First-quarter net income at LyondellBasell (LYB, Houston, Texas; www.lyondellbasell.com) fell 64% year-on-year to USD 474 mn (EUR 430 mn) largely due to an impairment charge related to the Advanced Polymers Solutions (APS) segment and costs incurred from plans to exit the refining business.

EBITDA excluding identified items dropped 44% to USD 1.13 bn while sales declined 22.1% to USD 10.24 bn. Global olefins and polyolefins margins increased during the first quarter, driven by lower ethane costs in the US, lower energy costs, and moderately improving global demand.

Related: LyondellBasell sees higher core profit for Circular & Low Carbon Solutions

EBITDA at the Olefins & Polyolefins (O&P) Americas segment shed 42.4% to USD 541 mn, with the olefins results decreasing around USD 130 mn on the back of lower ethylene sales prices. Declining product prices caused the combined polyolefin results to recede around USD 260 mn.

At O&P Europe Asia International, EBITDA shrank 64% to USD 77 mn. Olefin results rose USD 45 mn due to lower feedstock costs. EBITDA at APS, where the acquired A. Schulman activities were bundled in 2018, swung to a loss of USD 226 mn from a profit of USD 71 mn.

In the near term, LyondellBasell expects typical seasonal trends to drive modest improvement in global demand. Delays in the start of North American polyethylene capacity additions across the industry are expected to reduce new market supply and support PE margins.

LyondellBasell said it has struck a deal with Veolia Belgium (www.veolia.be/nl) under which the chemical group is to become the sole owner of its 50-50 joint venture in Quality Circular Polymers (QCP, Geleen, The Netherlands; www.qcpolymers.com). Financial details were not disclosed.

Related: LYB’s cooperation with German waste incineration plant operator EEW

LyondellBasell is set to acquire Veolia’s 50% stake in QCP, whose mechanical recycling facilities produce special blends from household plastic waste. The materials are used to make items such as bottles, buckets, caps, and closures as well as strollers and suitcases. The plants are located in Belgium and the Netherlands.

As the sole owner, the US polyolefin giant will be able to support its goal to produce and market at least 2 mn t of recycled and renewable-based polymers. Veolia will continue to be QCP’s feedstock supplier. LYB plans to continue offering QCP polymers with its CirculenRecover brand.