By Khusbu Jena

July 31 (Reuters) - Petrochemicals manufacturer

LyondellBasell on Friday beat Wall Street estimates for

second-quarter profit, as global supply disruptions lifted

polymer margins, and increased operating rates at its North

American assets.

LyondellBasell said geopolitical instability created

supply-constrained conditions across its businesses, driving

higher polymer margins and favorable co-product pricing.

* Adjusted earnings were $4.30 per share for the quarter

ended June 30, above analysts' average estimate of $3.41,

according to LSEG data.

* Sales rose 20% to $9.18 billion, slightly exceeding

estimates of $9.15 billion.

* The company said the conflict disrupted production,

feedstock availability, logistics and trade flows, tightening

global supply and supporting polymer spreads.

* Its North American olefins and polyolefins assets ran at

about 90% utilization, including cracker utilization of roughly

95%.

* Chief Executive Peter Vanacker said LyondellBasell

estimates about 6 million metric tons of polyethylene capacity,

equal to 20% to 25% of Middle East supply, was damaged in the

conflict and is not expected to restart until at least 2027.

* The conflict disrupted production, feedstock availability,

logistics and trade flows, Vanacker said.

* Higher Asian freight rates effectively closed the

arbitrage from Asia to Europe and Central America, increasing

demand for U.S. and European material.

* Chinese producers reduced imports and raised exports,

mainly to Southeast Asia, despite lower operating rates, to

capture higher export prices amid regional shortages, he added.

* Chinese polyolefin inventories have fallen about 30% from

pre-conflict levels, while operating rates remain in the mid-70%

range.

* LyondellBasell maintained its 2026 capital-expenditure

plan of $1.2 billion and said sustaining capex should decline by

about $100 million following the sale of four European assets.

* The Petrochemicals maker remains on track to generate $500

million in incremental cash by end-2026 through fixed-cost cuts

and lower capex.