European Restructuring Plans
Q: What's the outlook and plan for European restructuring?
A: Management initiated an early assessment of their European assets due to announced shutdowns of 2–2.5 million tons of ethylene capacity in Europe. They're considering options like selling entire packages or individual sites and expect significant clarity by 2025. The aim is to increase their portfolio of cost-advantaged operations from 60% to 70% after exiting refining and certain European operations.

Normalized EBITDA Expectations
Q: Has the normalized EBITDA for U.S. and European O&P changed?
A: The North American O&P normalized EBITDA remains largely unchanged. However, Europe's earnings power is now lower due to higher energy costs and regulatory challenges. The company is repositioning with investments in the Middle East and transforming European operations to focus on renewable and circular solutions.

Polyethylene Pricing Outlook
Q: Do you expect polyethylene prices to decline in Q4?
A: They have two price increases in the market of $0.03 per pound for October and November. While it's premature to predict outcomes, domestic U.S. demand is up 6% year-to-date and exports are up 11%. Management remains hopeful that part of the price increases will be realized.

Impact of Refining Exit and MoReTec-2 Timing
Q: Will exiting refining affect other segments, and when is MoReTec-2 FID expected?
A: Exiting refining will have no material earnings impact on other segments. The final investment decision for MoReTec-2 is expected in 2026, with initial steps beginning in the first quarter of next year. The investment strategy has shifted to a modular concept, requiring a higher upfront commitment.

2025 O&P-Americas EBITDA Growth
Q: What needs to improve for O&P-Americas EBITDA growth in 2025?
A: Continued demand increase in polyethylene is crucial. As inflation and interest rates decrease, they anticipate improved consumer confidence boosting construction demand, benefiting PE, PP, and propylene oxide businesses. Exiting the refining business, which accounts for 70% of the EBITDA delta versus last year, will also affect results.

U.S. Cracker Feedstock Mix
Q: How will the cracker feedstock mix change over time?
A: They plan to integrate renewable and circular feedstocks using MoReTec technology, especially at the Channelview site. This involves small investments adding to existing infrastructure, maintaining flexible feedstock optimization without significantly altering the current mix.

October Polyethylene Orders Strength
Q: What's causing strong October polyethylene orders?
A: October's strong orders result from an overhang of slower September orders and stabilized crude prices supporting both domestic and export demand. Customers remain active despite seasonal slowdown expectations, leading to the strongest order book of the year.

Propylene Oxide (PO) and Derivatives Outlook
Q: What's affecting PO and derivatives performance?
A: Sales are up 4% globally year-over-year through Q3, mainly from Europe and the U.S.. Higher U.S. propylene prices limit exports to Asia, impacting operating rates. Q4 operating rates are projected at 75%, affected by the Bayport turnaround.

APK Acquisition and Technology Integration
Q: What's the status of the APK acquisition and its technology?
A: They now have full ownership of APK, whose advanced solution-based recycling technology focuses on laminated films. Integration and scaling up are underway, aiming to make it an integral part of their offerings by 2030.