Operator: Our next question comes from the line of Matthew Blair with Tudor, Pickering, Holt. Please proceed with your question.
Matthew Blair : Great. Thanks for taking my question. Could you talk about dynamics in polypropylene? I think the Lyondell volumes were actually the highest in quite some time in this area. What kind of trends are you seeing on global supply and demand for both this year as well as into 2024?
Peter Vanacker: Thank you, Matthew. I’m going to give that question immediately to Ken.
Ken Lane: Yes. Thank you very much, and thanks, Matthew, for the question. The dynamics that we’re seeing in polypropylene around supply and demand is similar to what we’re seeing in PE. There’s still a tremendous amount of new capacity that has come online over the last 12 to 18 months, especially in China. China has now pretty much become balanced and even has been exporting some polypropylene. So that market is challenged, but we have seen the demand come back in polypropylene and have started to see some growth quarter-over-quarter. One of the market segments — frankly, when I look across all of the market segments for our division, the automotive segment this year is showing signs of improvement when I compare it to others like packaging.
We also have seen some improvement in Catalloy, some bounce back in volumes in Catalloy, driven by commercial construction. So, in general, it’s we still have a very good portfolio of assets, but a very challenging market environment.
Operator: Our next question comes from the line of Mike Leithead with Barclays. Please proceed with your question.
Mike Leithead : Great. Thank you, good morning. I wanted to ask a bigger picture question on O&P EAI profitability. EBITDA has been quite challenged for maybe the past five quarters or so. I know you highlighted the polypropylene closure. But is there any larger scale asset shutdowns or restructuring being considered here? And is it simply a question of demand recovering? Or I guess how do you think about a potential pathway to get this segment back to its, call it, $1 billion or so historic EBITDA level?
Peter Vanacker: Thank you, Mike. Very good question. And as you well noted, we are in the midst now of negotiating with the union representatives on the shutdown of that one particular line that we have in the southern part of Italy and Brindisi. Of course, as usual, we continue to look at all the other assets that we have, not just, I mean, limited to the O&P business, but also the I&D business as well as the APS business. I mean some actions you have seen that we have taken. Like, for example, I mean, our joint venture that we have in the [indiscernible] on PO/SM. We have idled that a couple of times already this year, just like we did at the end of last year. So that continues for us to be very important that we look at all these different opportunities. But we have taken, I mean, that decision that we are planning to shut down, I mean, that one line in the southern part of Italy.
Operator: Our next question comes from the line of Frank Mitsch with Fermium Research. Please proceed with your question.
Frank Mitsch: Thank you and good morning. And congrats on the nice results. If I look back three months ago, these 3 consensus was at $1.41 billion for the third quarter in EBITDA. And the company thought that, that was probably too high, and proactively went out with a guidance of $1.1 billion to $1.25 billion. Obviously, you outlined the reasons why the results came in better, actually right in line with that $1.41 billion. But my question is, having taken that tact in the third quarter, as we stand here today, the Street is at $1.1 billion EBITDA for the fourth quarter, it begs the question in terms of no guidance that I would assume that Lyondell feels more positive about that results. Any color you could provide would be great.
