LyondellBasell reports Q3 net income of US$851M, up from US$844M a year earlier, despite revenues down 1.1% to US$11.2B; earnings down on scheduled maintenance at US site, fewer market-related opportunities in European olefins, polyolefins units, says CEO

HOUSTON and LONDON , October 29, 2013 (press release) – Third-Quarter 2013 Highlights

  • Diluted earnings per share of $1.51; $854 million income from continuing operations
  • EBITDA of $1,531 million
  • Solid earnings and cash flow continued, supported by reliable operations and favorable crude oil and natural gas environment
  • Completed scheduled maintenance turnaround at Clinton ethylene and polyethylene facility
  • 13.5 million shares repurchased during the quarter
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2013 of $1.51 diluted earnings per share or $854 million. Third quarter 2013 EBITDA was $1,531 million.

Comparisons with the prior quarter and third quarter 2012 are shown below:

Table 1 - Earnings Summary

 

 

 

Millions of U.S. dollars (except share data)

Three Months Ended

Nine Months Ended

September 30,

 

September 30,

2013

June 30,

2013

September 30,

2012

 

2013

2012

 

Sales and other operating revenues

$11,152

$11,103

$11,273

$32,924

$34,255

 

Net income(a)

851

927

844

2,678

2,211

 

Income from continuing operations

854

923

851

2,683

2,213

 

Diluted earnings per share (U.S. dollars):

           
 

Net income(b)

1.50

1.61

1.46

4.66

3.83

 
 

Income from continuing operations

1.51

1.60

1.47

4.67

3.83

 

Diluted share count (millions)

567

578

577

575

577

 

EBITDA(c)(d)

1,531

1,652

1,589

4,768

4,543

 
                                                 

(a)

Includes net loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 11.

(b)

Includes diluted loss per share attributable to discontinued operations.

(c)

See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to income from continuing operations.

(d)

Includes a $71 million lower of cost or market inventory valuation adjustment in the third quarter 2012 which is a reversal of a $71 million charge in the second quarter of 2012.

   

Results also reflect the following charges and benefits:

Table 2 - Charges (Benefits) Included in Income from Continuing Operations

 

Millions of U.S. dollars (except share data)

Three Months Ended

Nine Months Ended

September 30,

2013

June 30,

2013

September 30,

2012

September 30,

2013

2012

Pretax charges (benefits):

         
 

Charges and premiums related to repayment of debt

$ - -

$ - -

$ - -

$ - -

$329

 

Reorganization items

- -

- -

- -

- -

(5)

 

Impairments

- -

- -

- -

- -

22

 

Warrants - mark to market

- -

- -

- -

- -

10

 

Insurance settlement

- -

- -

- -

- -

(100)

 

Legal recovery

- -

- -

(24)

- -

(24)

 

Lower of cost or market inventory adjustment

- -

- -

(71)

- -

- -

Total pretax charges (benefits)

- -

- -

(95)

- -

232

Provision for (benefit from) income tax related to these items

- -

- -

35

- -

(79)

After-tax effect of net charges (credits)

$ - -

$ - -

($60)

$ - -

$153

Effect on diluted earnings per share

$0

$0

$0.11

$0

($0.25)



"We achieved solid third quarter results, with earnings of $1.51 per share and EBITDA of $1.53 billion," said CEO Jim Gallogly. "This performance is sequentially down from the prior quarter due to scheduled maintenance at a U.S. olefins and polyolefins site and fewer market-related opportunities in our European olefins and polyolefins business. Refining results again proved difficult, pressured by an oversupplied gasoline market, spending for RIN's and plant maintenance."

"During the quarter, we advanced our capital deployment program, purchasing shares and declaring dividends totaling $1.3 billion. Since authorization of the share repurchase program in May 2013 and through the close of the third quarter, approximately three percent of our outstanding shares have been repurchased," Gallogly said.

"Overall, we continued a pattern of steady results seen in recent quarters. Underlying this performance were safe, reliable operations coupled with the North American natural gas advantage. We are taking steps to further capitalize on this advantage. We are making significant progress on our expansion projects which will come online over the next two years. First up will be the fourth-quarter completion of the methanol restart project followed by our La Porte ethylene debottleneck expansion mid next year. We expect to see our growth projects completed significantly ahead of our competition and add to our strong earnings profile," Gallogly said.

OUTLOOK

"The fundamentals that have supported our results remained intact during October. However, we have historically seen margin compression in products such as oxyfuels in winter months and slower polyolefin sales around the holiday season," Gallogly said.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell operates in five business segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.

Olefins and Polyolefins - Americas (O&P-Americas) – The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.


Table 3 - O&P–Americas Financial Overview

 
 

Three Months Ended

Nine Months Ended

 

 

Millions of U.S. dollars

September 30,

2013

June 30,

2013

September 30,

2012

September 30,

 

2013

2012

 

Operating income

$759

$872

$738

$2,452

$1,957

 

EBITDA

841

951

814

2,690

2,190

 


Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA decreased $110 million versus the second quarter 2013. Compared to the prior period, olefins results decreased primarily due to a scheduled turnaround at Clinton, Iowa, a 1 cent per pound decline in ethylene contract price and higher raw material costs driven by higher propane, butane and naphtha prices in the third quarter. The Clinton turnaround impacted the quarter results by approximately $65 million. Combined polyolefin results increased from the second quarter 2013. Results benefitted from an approximately 2 cent per pound higher average polyethylene price and a 5 percent increase in polypropylene sales volumes. Joint venture equity income was relatively unchanged.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA increased $27 million in the third quarter 2013 versus the third quarter 2012. Excluding the favorable impact of a $71 million lower of cost or market adjustment in the third quarter 2012, EBITDA increased $98 million, primarily due to higher polyethylene results. Olefins results decreased approximately $45 million compared to the prior year period partially due to the scheduled Clinton turnaround. The third quarter 2013 results benefitted from increased ethane cracking at a lower cost. Polyethylene results improved as a 9 cent per pound higher price more than offset a 4 percent volume decline. Polypropylene results were relatively unchanged. Joint venture equity income was relatively unchanged.

Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) – The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, global polypropylene compounds, Catalloy process resins and polybutene-1 resins.

Table 4 - O&P–EAI Financial Overview

     
 

Three Months Ended

Nine Months Ended

 

 

Millions of U.S. dollars

September 30,

2013

June 30,

2013

September 30,

2012

September 30,

 

2013

2012

 

Operating income

$78

$189

$15

$360

$221

 

EBITDA

204

295

102

724

522

 
             
Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA decreased $91 million versus the second quarter 2013. Olefin results decreased by approximately $75 million primarily due to a decline in olefin margins driven by higher feedstock costs and lower co-product values. Improved polyethylene margins offset a 10 percent decline in overall polyolefin sales volumes. Polypropylene compounds and polybutene-1 results decreased by approximately $15 million primarily due to lower margins related to raw material price volatility and a 5 percent decline in sales volumes. Equity income from joint ventures increased by $17 million from the second quarter 2013.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA increased $102 million versus the third quarter 2012. Olefin results improved by approximately $70 million, a result of both higher margins and volumes. The higher olefin margins were driven by higher ethylene prices in the third quarter of 2013 versus the same period in 2012. Volumes were lower in the 2012 period as a result of an olefin turnaround at Wesseling, Germany. Combined polyolefin results increased by approximately $20 million primarily as a result of improved margins. Polypropylene compounds and polybutene-1 results decreased by approximately $10 million from the prior year period as a result of lower margins related to raw material pricing lag. Equity income from joint ventures increased by $25 million from the third quarter 2012.

Intermediates and Derivatives (I&D) – The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol (TBA), isobutylene and tertiary butyl hydroperoxide), and derivatives (propylene glycol, propylene glycol ethers and butanediol), acetyls, ethylene oxide and its derivatives, and oxyfuels.


Table 5 - I&D Financial Overview

           
 

Three Months Ended

Nine Months Ended

 
 

September 30,

June 30,

September 30,

September 30,

 

Millions of U.S. dollars

2013

2013

2012

2013

2012

 

Operating income

$371

$285

$424

$979

$1,184

 

EBITDA

427

338

475

1,138

1,324

 


Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA increased $89 million versus the second quarter 2013. Results for PO and PO derivatives increased by approximately $20 million following the completion of second quarter turnarounds. Competitive pressure continued to impact butanediol and solvents margins due to oversupply in Asia. Intermediate chemicals results increased by approximately $65 million driven primarily by higher styrene margins and higher sales volumes following second quarter turnarounds. Oxyfuels results improved by approximately $15 million due to higher margins and volumes. Equity income from joint ventures was relatively unchanged.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA decreased $48 million compared to the third quarter 2012. Results for PO and PO derivatives declined primarily due to weaker butanediol and solvents market conditions. Intermediate chemicals results increased as a result of higher styrene, acetyl and ethylene glycol margins. Oxyfuels results declined by approximately $60 million due to lower margins and volumes, which were stronger than typical in the third quarter of 2012. Equity income from joint ventures increased by $3 million from the third quarter 2012.

Refining – The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials.

Table 6 - Refining Financial Overview

         

 

Millions of U.S. dollars

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

September 30,

 

2013

2013

2012

2013

2012

 

Operating income (loss)

($37)

($16)

$114

($70)

$248

 

EBITDA

8

20

150

48

358

 

Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA, including benefits from property tax assessments and legal settlements of $15 million, declined $12 million versus the second quarter 2013. The Houston refinery operated at 250,000 barrels per day, down 15,000 barrels per day from the prior quarter due to maintenance work on an operating unit. The Maya 2-1-1 industry benchmark crack spread increased by $1.64 per barrel, averaging $23.22 per barrel. The refinery spread did not increase as the timing of crude purchases coupled with benchmark crude oil price volatility resulted in higher costs during the quarter. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards decreased by $12 million versus the second quarter 2013.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA decreased $142 million versus the third quarter 2012. Excluding the benefit of legal restitutions in both periods and the resolution of property tax assessments in third quarter 2013, EBITDA decreased by $133 million. The 250,000 barrels per day operating rate in the current quarter represents an increase of 10,000 barrels per day from the prior year period. Compared to the third quarter 2012, the decline in Maya 2-1-1 benchmark spread of $5.54 per barrel and higher natural gas costs negatively impacted results by approximately $110 million. The cost of RINs increased by $28 million compared to the same quarter last year.

Technology – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.


Table 7 - Technology Financial Overview

     
   

Three Months Ended

Nine Months Ended

 
   

September 30,

June 30,

September 30,

September 30,

 

Millions of U.S. dollars

2013

2013

2012

2013

2012

 

Operating income

$35

$39

$31

$124

$99

 

EBITDA

52

59

49

177

155



Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA decreased by $7 million primarily as a result of lower licensing revenues.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA increased by $3 million as higher catalyst sales and lower research and development costs more than offset lower licensing revenues versus the third quarter 2012.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $423 million in the third quarter 2013. The cash balance was $4.4 billion at Sept. 30, 2013. We repurchased 13.5 million ordinary shares during the third quarter 2013. Dividends declared in the quarter totaled $280 million. In July, the company issued long-term bonds in an aggregate principal amount of $1.5 billion with an average interest rate of 4.6 percent.

CONFERENCE CALL

LyondellBasell will host a conference call Oct. 29 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Jim Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.

The toll-free dial-in number in the U.S. is 877-950-3594. A complete listing of toll-free numbers by country is available at www.lyondell.com/teleconference for international callers. The pass code for all numbers is 1231245.

A replay of the call will be available from 2 p.m. ET Oct. 29 until Nov. 29 at 11 p.m. ET. The replay dial-in numbers are 888-667-5779 (U.S.) and +1 402-220-6423 (international). The pass code for each is 5421.

The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 58 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.

FORWARD-LOOKING STATEMENTS

The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2012, which can be found at www.lyondellbasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

NON-GAAP MEASURES

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternative to operating cash flows as a measure of our liquidity.

Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release.

OTHER FINANCIAL MEASURE PRESENTATION NOTES

This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.


Table 8 - Reconciliation of Segment Information to Consolidated Financial Information

                                                             
         

2012

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Q2

 

Q3

 

YTD

 

Sales and other operating revenues:

                                                   
   

Olefins & Polyolefins - Americas

$

3,349

 

$

3,283

 

$

3,217

 

$

3,085

 

$

12,934

 

$

3,244

 

$

3,251

 

$

3,315

 

$

9,810

   

Olefins & Polyolefins - Europe, Asia, International

 

3,898

   

3,575

   

3,448

   

3,600

   

14,521

   

3,800

   

3,708

   

3,594

   

11,102

   

Intermediates & Derivatives

 

2,485

   

2,285

   

2,637

   

2,251

   

9,658

   

2,282

   

2,217

   

2,452

   

6,951

   

Refining

 

3,203

   

3,496

   

3,272

   

3,320

   

13,291

   

2,468

   

3,077

   

3,177

   

8,722

   

Technology

 

119

   

115

   

124

   

140

   

498

   

134

   

132

   

124

   

390

   

Other

 

(1,320)

   

(1,506)

   

(1,425)

   

(1,299)

   

(5,550)

   

(1,259)

   

(1,282)

   

(1,510)

   

(4,051)

     

Continuing Operations

$

11,734

 

$

11,248

 

$

11,273

 

$

11,097

 

$

45,352

 

$

10,669

 

$

11,103

 

$

11,152

 

$

32,924

 

Operating income (loss):

                                                   
   

Olefins & Polyolefins - Americas

$

519

 

$

700

 

$

738

 

$

693

 

$

2,650

 

$

821

 

$

872

 

$

759

 

$

2,452

   

Olefins & Polyolefins - Europe, Asia, International

 

3

   

203

   

15

   

(94)

   

127

   

93

   

189

   

78

   

360

   

Intermediates & Derivatives

 

370

   

390

   

424

   

246

   

1,430

   

323

   

285

   

371

   

979

   

Refining

 

10

   

124

   

114

   

86

   

334

   

(17)

   

(16)

   

(37)

   

(70)

   

Technology

 

38

   

30

   

31

   

23

   

122

   

50

   

39

   

35

   

124

   

Other

 

- -

   

2

   

6

   

5

   

13

   

(3)

   

(5)

   

1

   

(7)

     

Continuing Operations

$

940

 

$

1,449

 

$

1,328

 

$

959

 

$

4,676

 

$

1,267

 

$

1,364

 

$

1,207

 

$

3,838

 

Depreciation and amortization:

                                                   
   

Olefins & Polyolefins - Americas

$

65

 

$

71

 

$

69

 

$

76

 

$

281

 

$

75

 

$

69

 

$

73

 

$

217

   

Olefins & Polyolefins - Europe, Asia, International

 

69

   

69

   

63

   

84

   

285

   

77

   

76

   

78

   

231

   

Intermediates & Derivatives

 

47

   

48

   

49

   

50

   

194

   

48

   

50

   

50

   

148

   

Refining

 

38

   

37

   

36

   

37

   

148

   

36

   

37

   

45

   

118

   

Technology

 

18

   

19

   

18

   

18

   

73

   

17

   

20

   

16

   

53

   

Other

 

- -

   

- -

   

1

   

1

   

2

   

- -

   

2

   

- -

   

2

     

Continuing Operations

$

237

 

$

244

 

$

236

 

$

266

 

$

983

 

$

253

 

$

254

 

$

262

 

$

769

 

EBITDA: (a)

                                                   
   

Olefins & Polyolefins - Americas

$

595

 

$

781

 

$

814

 

$

778

 

$

2,968

 

$

898

 

$

951

 

$

841

 

$

2,690

   

Olefins & Polyolefins - Europe, Asia, International

 

115

   

305

   

102

   

26

   

548

   

225

   

295

   

204

   

724

   

Intermediates & Derivatives

 

417

   

432

   

475

   

297

   

1,621

   

373

   

338

   

427

   

1,138

   

Refining

 

48

   

160

   

150

   

123

   

481

   

20

   

20

   

8

   

48

   

Technology

 

56

   

50

   

49

   

42

   

197

   

66

   

59

   

52

   

177

   

Other

 

(4)

   

(1)

   

(1)

   

(1)

   

(7)

   

3

   

(11)

   

(1)

   

(9)

     

Continuing Operations

$

1,227

 

$

1,727

 

$

1,589

 

$

1,265

 

$

5,808

 

$

1,585

 

$

1,652

 

$

1,531

 

$

4,768

 

Capital, turnarounds and IT deferred spending:

                                                   
   

Olefins & Polyolefins - Americas

$

102

 

$

135

 

$

126

 

$

105

 

$

468

 

$

122

 

$

122

 

$

218

 

$

462

   

Olefins & Polyolefins - Europe, Asia, International

 

60

   

39

   

60

   

95

   

254

   

63

   

46

   

44

   

153

   

Intermediates & Derivatives

 

18

   

24

   

44

   

73

   

159

   

106

   

141

   

119

   

366

   

Refining

 

38

   

27

   

24

   

47

   

136

   

93

   

67

   

36

   

196

   

Technology

 

9

   

8

   

12

   

14

   

43

   

7

   

6

   

7

   

20

   

Other

 

2

   

3

   

1

   

(1)

   

5

   

- -

   

5

   

(1)

   

4

     

Total 

 

229

   

236

   

267

   

333

   

1,065

   

391

   

387

   

423

   

1,201

   

Deferred charges included above

 

(1)

   

(3)

   

(1)

   

- -

   

(5)

   

- -

   

 

- -

   

- -

   

- -

     

Continuing Operations

$

228

 

$

233

 

$

266

 

$

333

 

$

1,060

 

$

391

 

$

387

 

$

423

 

$

1,201

                                                             
                                                             

(a) See Table 9 for EBITDA calculation. 

 
 

Table 9 - EBITDA Calculation

                                                             
         

2012

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Q2

 

Q3

 

YTD

                                                       
 

Net income attributable to the Company shareholders

$

600

 

$

770

 

$

846

 

$

632

 

$

2,848

 

$

901

 

$

929

 

$

853

 

$

2,683

 

Net income (loss) attributable to non-controlling interests

 

(1)

   

(2)

   

(2)

   

(9)

   

(14)

   

(1)

   

(2)

   

(2)

   

(5)

 

(Income) loss from discontinued operations, net of tax

 

(5)

   

- -

   

7

   

22

   

24

   

6

   

(4)

   

3

   

5

 

Income from continuing operations

 

594

   

768

   

851

   

645

   

2,858

   

906

   

923

   

854

   

2,683

   

Provision for income taxes

 

301

   

306

   

435

   

285

   

1,327

   

357

   

410

   

339

   

1,106

   

Depreciation and amortization

 

237

   

244

   

236

   

266

   

983

   

253

   

254

   

262

   

769

   

Interest expense, net

 

95

   

409

   

67

   

69

   

640

   

69

   

65

   

76

   

210

 

EBITDA

$

1,227

 

$

1,727

 

$

1,589

 

$

1,265

 

$

5,808

 

$

1,585

 

$

1,652

 

$

1,531

 

$

4,768

                                                             
                                                             
                                                             
                                                             

Table 10 - Selected Segment Operating Information

                                             
           

2012

 

2013

           

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Q2

 

Q3

 

YTD

 

Olefins and Polyolefins - Americas

                                   
   

Volumes (million pounds)

                                   
     

Ethylene produced

 

1,988

 

2,134

 

2,401

 

2,449

 

8,972

 

2,337

 

2,412

 

2,111

 

6,860

     

Propylene produced

 

533

 

615

 

633

 

582

 

2,363

 

624

 

529

 

652

 

1,805

     

Polyethylene sold

 

1,371

 

1,327

 

1,430

 

1,438

 

5,566

 

1,396

 

1,389

 

1,378

 

4,163

     

Polypropylene sold

 

649

 

634

 

639

 

576

 

2,498

 

565

 

637

 

669

 

1,871

   

Benchmark Market Prices

                                   
     

West Texas Intermediate crude oil (USD per barrel)

 

103.0

 

93.4

 

92.2

 

88.2

 

94.1

 

94.4

 

94.2

 

105.8

 

98.2

     

Light Louisiana Sweet ("LLS") crude oil (USD per barrel)

 

119.9

 

108.2

 

109.4

 

109.5

 

111.7

 

113.9

 

104.6

 

109.9

 

109.4

     

Natural gas (USD per million BTUs)

 

2.7

 

2.3

 

2.9

 

3.5

 

2.9

 

3.5

 

4.2

 

3.7

 

3.8

     

U.S. weighted average cost of ethylene production (cents/pound)

 

28.5

 

18.4

 

19.7

 

18.6

 

21.2

 

13.8

 

15.7

 

16.6

 

15.4

     

U.S. ethylene (cents/pound)

 

54.9

 

46.9

 

45.4

 

45.7

 

48.3

 

48.0

 

46.3

 

45.8

 

46.7

     

U.S. polyethylene [high density] (cents/pound)

 

67.0

 

63.0

 

59.3

 

59.7

 

62.3

 

66.7

 

68.7

 

71.7

 

69.0

     

U.S. propylene (cents/pound)

 

68.7

 

65.7

 

51.3

 

56.0

 

60.4

 

75.0

 

63.3

 

68.3

 

68.9

     

U.S. polypropylene [homopolymer] (cents/pound)

 

81.2

 

76.7

 

63.8

 

68.5

 

72.5

 

88.0

 

76.2

 

82.3

 

82.2

                                             
 

Olefins and Polyolefins - Europe, Asia, International

                                   
   

Volumes (million pounds)

                                   
     

Ethylene produced

 

945

 

930

 

802

 

833

 

3,510

 

912

 

991

 

984

 

2,887

     

Propylene produced

 

557

 

561

 

492

 

502

 

2,112

 

577

 

610

 

597

 

1,784

     

Polyethylene sold

 

1,320

 

1,130

 

1,243

 

1,250

 

4,943

 

1,206

 

1,314

 

1,212

 

3,732

     

Polypropylene sold

 

1,614

 

1,433

 

1,727

 

1,623

 

6,397

 

1,657

 

1,821

 

1,612

 

5,090

   

Benchmark Market Prices (€0.01 per pound)

                                   
     

Western Europe weighted average cost of ethylene production

 

45.4

 

31.7

 

39.6

 

38.9

 

38.9

 

36.2

 

29.3

 

34.9

 

33.5

     

Western Europe ethylene

 

55.1

 

58.6

 

53.1

 

58.1

 

56.2

 

58.6

 

54.4

 

55.0

 

56.0

     

Western Europe polyethylene [high density]

 

58.6

 

60.9

 

57.2

 

61.0

 

59.4

 

61.2

 

56.8

 

57.9

 

58.6

     

Western Europe propylene

 

50.1

 

54.1

 

47.6

 

50.8

 

50.7

 

50.6

 

47.9

 

49.6

 

49.4

     

Western Europe polypropylene [homopolymer]

 

57.9

 

60.4

 

56.1

 

58.7

 

58.3

 

59.1

 

56.1

 

58.1

 

57.8

                                           
 

Intermediates and Derivatives

                                   
   

Volumes (million pounds)

                                   
     

Propylene oxide and derivatives

 

774

 

743

 

762

 

663

 

2,942

 

683

 

665

 

665

 

2,013

     

Ethylene oxide and derivatives

 

312

 

275

 

311

 

260

 

1,158

 

260

 

277

 

294

 

831

     

Styrene monomer

 

704

 

678

 

791

 

782

 

2,955

 

703

 

589

 

756

 

2,048

     

Acetyls

 

489

 

444

 

499

 

406

 

1,838

 

431

 

470

 

506

 

1,407

     

TBA Intermediates

 

462

 

448

 

441

 

399

 

1,750

 

434

 

357

 

425

 

1,216

   

Volumes (million gallons)

                                   
     

MTBE/ETBE

 

205

 

189

 

256

 

199

 

849

 

185

 

235

 

241

 

661

   

Benchmark Market Margins  (cents per gallon)

                                   
     

MTBE - Northwest Europe

 

125.1

 

122.0

 

149.9

 

76.3

 

118.2

 

104.9

 

88.4

 

86.8

 

93.2

                                         
 

Refining

                                   
   

Volumes (thousands of barrels per day)

                                   
     

Heavy crude oil processing rate

 

259

 

267

 

240

 

255

 

255

 

173

 

265

 

250

 

230

   

Benchmark Market Margins

                                   
     

Light crude oil - 2-1-1

 

10.29

 

15.30

 

16.82

 

8.99

 

12.81

 

11.53

 

14.63

 

12.63

 

12.96

     

Light crude oil - Maya differential

 

10.81

 

9.12

 

11.94

 

16.45

 

12.01

 

11.17

 

6.95

 

10.59

 

9.51

                                           
                                             

Source:  LYB and third party consultants

Note:  Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. 

                                             
                                             
                                             

Table 11 - Unaudited Income Statement Information

                                                             
         

2012

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Q2

 

Q3

 

YTD

                                                       
 

Sales and other operating revenues

$

11,734

 

$

11,248

 

$

11,273

 

$

11,097

 

$

45,352

 

$

10,669

 

$

11,103

 

$

11,152

 

$

32,924

 

Cost of sales

 

10,532

   

9,561

   

9,670

   

9,832

   

39,595

   

9,153

   

9,496

   

9,690

   

28,339

 

Selling, general and administrative expenses

 

223

   

201

   

236

   

249

   

909

   

213

   

208

   

220

   

641

 

Research and development expenses

 

39

   

37

   

39

   

57

   

172

   

36

   

35

   

35

   

106

   

Operating income

 

940

   

1,449

   

1,328

   

959

   

4,676

   

1,267

   

1,364

   

1,207

   

3,838

 

Income from equity investments

 

46

   

27

   

32

   

38

   

143

   

59

   

43

   

61

   

163

 

Interest expense, net

 

(95)

   

(409)

   

(67)

   

(69)

   

(640)

   

(69)

   

(65)

   

(76)

   

(210)

 

Other income (expense), net

 

4

   

7

   

(7)

   

2

   

6

   

6

   

(9)

   

1

   

(2)

   

Income before taxes

 

895

   

1,074

   

1,286

   

930

   

4,185

   

1,263

   

1,333

   

1,193

   

3,789

 

Provision for income taxes

 

301

   

306

   

435

   

285

   

1,327

   

357

   

410

   

339

   

1,106

   

Income from continuing operations

 

594

   

768

   

851

   

645

   

2,858

   

906

   

923

   

854

   

2,683

 

Income (loss) from discontinued operations, net of tax

                                                   
   

5

   

- -

   

(7)

   

(22)

   

(24)

   

(6)

   

4

   

(3)

   

(5)

     

Net income

 

599

   

768

   

844

   

623

   

2,834

   

900

   

927

   

851

   

2,678

 

Net loss attributable to non-controlling interests

                                                   
   

1

   

2

   

2

   

9

   

14

   

1

   

2

   

2

   

5

     

Net income attributable to the Company shareholders

                                                   
     

$

600

 

$

770

 

$

846

 

$

632

 

$

2,848

 

$

901

 

$

929

 

$

853

 

$

2,683

                                                             
                                                             
                                                             
                                                             

Table 12 - Unaudited Cash Flow Information

                                                             
         

2012

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

 

Q2

 

 

Q3

   

YTD

                                                             
 

Net cash provided by operating activities

                                                   
 

$

913

 

$

504

 

$

2,042

 

$

1,328

 

$

4,787

 

$

799

 

$

1,264

 

$

1,131

 

$

3,194

                                                             
 

Net cash used in investing activities

                                                   
   

(185)

   

(245)

   

(266)

   

(317)

   

(1,013)

   

(408)

   

(389)

   

(438)

   

(1,235)

                                                         
 

Net cash provided by (used in) financing activities

                                                   
   

(140)

   

55

   

(234)

   

(1,826)

   

(2,145)

   

(234)

   

(526)

   

437

   

(323)

                                                             
                                                             
                                                             
                                                             
                                                             

Table 13 - Unaudited Balance Sheet Information

                                                     
             

March 31,

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

(Millions of U.S. dollars)

2012

 

2012

 

2012

 

2012

 

2013

 

2013

 

2013

                                                     
 

Cash and cash equivalents

$

1,670

 

$

1,950

 

$

3,527

 

$

2,732

 

$

2,879

 

$

3,233

 

$

4,414

 

Restricted cash

 

9

   

14

   

19

   

5

   

6

   

2

   

4

 

Accounts receivable, net

 

4,209

   

3,888

   

4,083

   

3,904

   

3,878

   

4,023

   

4,041

 

Inventories

 

5,208

   

5,759

   

5,234

   

5,075

   

5,270

   

5,197

   

5,382

 

Prepaid expenses and other current assets

 

1,002

   

755

   

532

   

570

   

622

   

577

   

784

     

Total current assets

 

12,098

   

12,366

   

13,395

   

12,286

   

12,655

   

13,032

   

14,625

 

Property, plant and equipment, net

 

7,426

   

7,237

   

7,412

   

7,696

   

7,779

   

7,979

   

8,223

 

Investments and long-term receivables:

                                       
     

Investment in PO joint ventures

 

415

   

411

   

405

   

397

   

401

   

409

   

423

     

Equity investments

 

1,605

   

1,521

   

1,581

   

1,583

   

1,607

   

1,622

   

1,615

     

Other investments and long-term receivables

 

76

   

70

   

361

   

383

   

421

   

231

   

164

 

Goodwill

 

595

   

576

   

585

   

591

   

582

   

588

   

598

 

Intangible assets, net

 

1,149

   

1,103

   

1,073

   

1,038

   

999

   

966

   

934

 

Other assets, net

 

245

   

261

   

292

   

246

   

233

   

221

   

229

     

Total assets

$

23,609

 

$

23,545

 

$

25,104

 

$

24,220

 

$

24,677

 

$

25,048

 

$

26,811

                                                     
 

Current maturities of long-term debt

$

- -

 

$

- -

 

$

- -

 

$

1

 

$

1

 

$

1

 

$

1

 

Short-term debt

 

42

   

48

   

47

   

95

   

115

   

114

   

114

 

Accounts payable

 

3,545

   

3,004

   

3,297

   

3,285

   

3,217

   

3,324

   

3,241

 

Accrued liabilities

 

1,049

   

915

   

1,177

   

1,157

   

1,217

   

1,047

   

1,528

 

Deferred income taxes

 

310

   

277

   

304

   

558

   

557

   

550

   

494

     

Total current liabilities

 

4,946

   

4,244

   

4,825

   

5,096

   

5,107

   

5,036

   

5,378

 

Long-term debt

 

3,984

   

4,305

   

4,305

   

4,304

   

4,307

   

4,306

   

5,774

 

Other liabilities

 

2,281

   

2,208

   

2,153

   

2,327

   

2,306

   

2,325

   

2,278

 

Deferred income taxes

 

1,035

   

1,245

   

1,460

   

1,314

   

1,277

   

1,312

   

1,472

 

Stockholders' equity

 

11,310

   

11,492

   

12,312

   

11,139

   

11,641

   

12,032

   

11,874

 

Non-controlling interests

 

53

   

51

   

49

   

40

   

39

   

37

   

35

     

Total liabilities and stockholders' equity

$

23,609

 

$

23,545

 

$

25,104

 

$

24,220

 

$

24,677

 

$

25,048

 

$

26,811



SOURCE LyondellBasell Industries


RELATED LINKS
http://www.lyondellbasell.com

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.