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. "