Oct 31 (Reuters) - LyondellBasell Industries ( LYB )

said on Friday it is on track to achieve $1.1 billion in cost

savings by 2026, as improving demand and a tight lid on costs

helped the chemicals maker beat quarterly profit estimates and

signal a steady recovery.

The company's shares rose nearly 4% in premarket trading as

the better-than-expected results eased some concerns around

demand and rising raw material costs, particularly in Europe.

LyondellBasell said its cash improvement plan, launched

earlier this year, remains on track to generate $600 million in

incremental cash flow during 2025.

The company's olefins and polyolefins Americas business saw

improved profitability, driven by higher olefins margins and

stronger polyethylene sales following plant turnarounds in

Texas.

Polyolefins demand is showing early signs of recovery, the

company said, with U.S. polyethylene sales volumes rebounding

after a two-year slump and European volumes up 3% year-to-date.

LyondellBasell reported a net loss of $890 million, or $2.77

per share, for the third quarter, compared with a profit of $573

million a year earlier.

The loss included $1.2 billion in non-cash asset write-downs

and other one-time charges, primarily related to its European

operations and portfolio restructuring efforts.

Stringent regulatory environment in the region has prompted

firms to reassess their operations and take cost-cutting

measures.

LyondellBasell said it has advanced its portfolio overhaul,

securing approvals to sell four European assets and planning

brief shutdowns at plants in Germany and Texas for maintenance

and market alignment.

The company said it expects seasonal weakness and higher

feedstock costs to weigh on margins in the fourth quarter.

However, global capacity reductions in China, Japan, South Korea

and Europe are helping rebalance supply.

Excluding items, adjusted earnings came in at $1.01 per

share, topping analysts' expectations of 81 cents, according to

data compiled by LSEG.

(Reporting by Pranav Mathur in Bengaluru; Editing by Krishna

Chandra Eluri and Saumyadeb Chakrabarty)