LyondellBasell Board Authorizes Dividend Increase of 60 Percent
ROTTERDAM, Netherlands, May 9, 2012 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare a dividend of $0.40 per share, an increase of 60 percent from the $0.25 per share quarterly dividend paid in the first quarter of 2012. The dividend of $0.40 per share will be paid on June 11, 2012 to shareholders of record as of May 21, 2012, subject to the adoption of a resolution by the Management Board, which is expected to occur on May 21.
"The 60 percent dividend increase reflects our significant operational and commercial improvements over the past two years coupled with our most recent debt restructurings. The refinancing of our debt, significant reduction in interests costs and our strong balance sheet and credit metrics support this increase to our previously-targeted range of a 3 - 4 percent dividend yield," said Karyn Ovelmen, LyondellBasell Executive Vice President and Chief Financial Officer.
"We believe the increase to $0.40 per share quarterly dividend puts our dividend at an appropriate and sustainable level given our current and future cash needs, balanced with our free cash flow profile. Going forward, we would expect to target sustainable and steady dividend growth over time. With regard to future excess cash, this level of regular dividend provides us the flexibility to continue to invest in the company, pursue disciplined growth and to optimize cash return to shareholders with potential special dividends and/or share buybacks," said Jim Gallogly, LyondellBasell Chief Executive Officer.
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies. The company 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. More information about LyondellBasell can be found at www.lyondellbasell.com.
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