LyondellBasell Reports First-Quarter 2014 Results

HOUSTON and LONDON, April 29, 2014 /PRNewswire/ --

First-Quarter 2014 Highlights

  • Diluted earnings per share of $1.72; $943 million income from continuing operations
  • EBITDA of $1,668 million notwithstanding plant maintenance and weather-related cost increases
  • Growth projects progressing with the start-up of a 200 million pounds per year polyethylene expansion, the commencement of the La Porte turnaround that will enable the third quarter addition of 800 million pounds per year of ethylene capacity, and the issuance of final permits for the Corpus Christi ethylene expansion
  • Repurchased 15 million shares during the first quarter
  • Shareholders approved a share repurchase program for an additional 10 percent of shares at the annual meeting on April 16, 2014; and the Supervisory Board approved a 10 cent per share increase of the quarterly interim dividend to $0.70 per share

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2014 of $943 million or $1.72 diluted earnings per share. First quarter 2014 EBITDA was $1,668 million.  

Comparisons with the prior quarter and first quarter 2013 are shown below:

Table 1 - Earnings Summary

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

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

2014

2013

2013

 

Sales and other operating revenues

$11,135

$11,138

$10,669

 

Net income(a)

944

1,175

900

 

Income from continuing operations

943

1,177

906

 

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

       
 

Net income(b)

1.72

2.11

1.55

 
 

Income from continuing operations

1.72

2.11

1.56

 

Diluted share count (millions)

548

555

578

 

EBITDA(c)

1,668

1,543

1,585

 
 

(a) Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10.

(b)  Includes diluted earnings (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 8 for reconciliations of EBITDA to income from continuing operations.

 

The first quarter 2014 income from continuing operations benefitted from $52 million related to an environmental indemnity settlement. There was no tax impact associated with this credit. The effect on diluted earnings per share was $0.09. Please see Table 11 for charges and benefits to income from continuing operations in the prior periods. 

"The first quarter results were good despite headwinds from maintenance, weather-related raw material cost volatility, and shipping delays. Exclusive of these pressures, the underlying business fundamentals remained strong and relatively unchanged," said Jim Gallogly, LyondellBasell Chief Executive Officer. 

"In the U.S., our key raw materials continue to be in abundant supply with ethane tracking natural gas prices. Although natural gas prices increased in the face of record winter temperatures, current pricing and the outlook have moderated reflecting the strength of U.S. shale developments," Gallogly said.

"The theme for our 2013 annual report was – 'Taking the Early Advantage.' We are putting these words into action. Our growth program is generating immediate results as our methanol plant restart contributed to first quarter earnings and cash flow. During late March, we completed a 200 million pound per year polyethylene expansion at Matagorda and began the final steps of our La Porte ethylene expansion. Additionally in mid-April, we received the final environmental permits for our Corpus Christi ethylene expansion," Gallogly said.

OUTLOOK
"The industry trends that developed over the past few years are expected to continue in the near term. Likewise, conditions in our businesses are generally expected to be consistent with recent quarters and seasonal trends," Gallogly said. "During the second quarter, we expect significant planned downtime at our La Porte facility while we perform normal turnaround maintenance and additional steps to complete an 800 million pounds per year ethylene expansion. Inventory build-up in preparation for this downtime should enable us to meet customer demands while helping mitigate the financial impact on the second quarter. As we enter the summer driving season, our refining benchmark crack spread is expected to remain relatively unchanged from the first quarter," Gallogly said.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating 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 2 - O&P–Americas Financial Overview

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2014

2013

2013

 

Operating income

$656

$801

$821

 

EBITDA

736

883

898

 
           

Three months ended March 31, 2014 versus three months ended December 31, 2013 – EBITDA decreased $147 million versus the fourth quarter 2013. First quarter results were negatively impacted by olefin and polyethylene outages related to cold weather and maintenance activity as well as ethylene purchases and inventory build in preparation for the La Porte site turnaround. Collectively, these activities represented the majority of the EBITDA decline. Compared to the prior period, the olefins margin decreased slightly in part due to higher natural gas costs and the resulting increase in NGL feedstock prices. Polyethylene price increased by 3 cents per pound while sales volumes were relatively unchanged from the fourth quarter 2013. Polypropylene results and joint venture equity income were relatively unchanged.

Three months ended March 31, 2014 versus three months ended March 31, 2013 – EBITDA declined $162 million versus the first quarter 2013. As noted above, maintenance activities coupled with preparation for the La Porte turnaround contributed to the lower results. An ethylene margin decline of 6 cents per pound impacted results by approximately $120 million. Polyethylene results increased primarily driven by a 9 cent per pound higher average price. Polypropylene results increased by approximately $30 million due to improved margins and 9 percent higher sales volumes. 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 3 - O&P–EAI Financial Overview

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2014

2013

2013

 

Operating income

$225

$17

$93

 

EBITDA

356

115

225

 
           

Three months ended March 31, 2014 versus three months ended December 31, 2013 – EBITDA increased $241 million versus the fourth quarter 2013. Excluding the benefits of $52 million from an environmental settlement in the first quarter and $25 million from an insurance settlement in the fourth quarter, EBITDA increased by $214 million. Olefin results increased by approximately $65 million as a result of higher margins and seasonal recovery in volumes. Advantaged feedstock cracking represented approximately 35 percent of ethylene production. Combined polyolefin results increased, driven by improved margins and seasonally stronger sales volumes. Polypropylene compounds and polybutene-1 results increased approximately $30 million from seasonally low fourth quarter 2013 results. Equity income from joint ventures increased by $13 million from the fourth quarter 2013.

Three months ended March 31, 2014 versus three months ended March 31, 2013 – EBITDA increased $131 million versus the first quarter 2013, including a $52 million benefit related to an environmental settlement. Olefin results improved slightly, primarily as a result of higher volumes. Combined commodity polyolefin results increased by approximately $40 million primarily as a result of higher margins. Polypropylene compounds and polybutene-1 results increased by $20 million from the prior year period, primarily as a result of 4 percent higher sales volumes. Equity income from joint ventures was relatively unchanged.

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 (acetic acid, vinyl acetate monomer and methanol), ethylene oxide and its derivatives, and oxyfuels.  

Table 4 - I&D Financial Overview

       
 

Three Months Ended

 
 

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2014

2013

2013

 

Operating income

$316

$321

$323

 

EBITDA

375

354

373

 
         

Three months ended March 31, 2014 versus three months ended December 31, 2013 – EBITDA increased $21 million versus the fourth quarter 2013. Results for PO and PO derivatives improved due to seasonal volume recovery. Intermediate chemicals results decreased by approximately $20 million, primarily driven by lower styrene and ethylene glycol margins and volumes which more than offset higher acetyls volumes and margins. Improved oxyfuels margins offset lower sales volumes. The fourth quarter results include $26 million of charges related to our exit from the Nihon Oxirane Co. (NOC) joint venture in Japan.

Three months ended March 31, 2014 versus three months ended March 31, 2013 – EBITDA increased $2 million compared to the first quarter 2013. Results for PO and PO derivatives improved slightly, primarily due to higher sales volumes. Intermediate chemicals results improved by approximately $45 million, primarily due to higher methanol volumes and margins from the Channelview methanol plant restart compared to the same period in 2013. Oxyfuels results declined approximately $60 million, mainly due to lower margins. Equity income from joint ventures was relatively unchanged.

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

Table 5 - Refining Financial Overview

     
 

Three Months Ended

 
 

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2014

2013

2013

 

Operating income (loss)

$86

$92

($17)

 

EBITDA

129

134

20

 
         

Three months ended March 31, 2014 versus three months ended December 31, 2013 – EBITDA decreased $5 million versus the fourth quarter 2013. The Houston refinery operated at 247,000 barrels per day, up 8,000 barrels per day from the prior quarter although refinery throughput was constrained due to coker maintenance. The Maya 2-1-1 benchmark crack spread increased $3.94 per barrel, averaging $28.26 per barrel in the first quarter 2014. The improved refinery crack spread was offset by lower gasoline and distillate yields due to the coker outage and approximately $10 million higher natural gas costs. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards increased by approximately $10 million versus the fourth quarter 2013.

Three months ended March 31, 2014 versus three months ended March 31, 2013 – EBITDA increased $109 million versus the first quarter 2013, when results were negatively impacted by a major turnaround. Compared to the prior year period, a throughput increase of 74,000 barrels per day positively impacted the current quarter by approximately $60 million. The Maya 2-1-1 benchmark crack spread increased from the first quarter 2013 by $5.56 per barrel. The improved crack spread was slightly offset by lower gasoline and distillate yields, and higher natural gas costs.  The cost of RINs decreased by approximately $5 million versus the first quarter 2013.

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

         

Table 6 - Technology Financial Overview

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2014

2013

2013

 

Operating income

$60

$33

$50

 

EBITDA

76

55

66

 
           

Three months ended March 31, 2014 versus three months ended December 31, 2013 – EBITDA increased by $21 million, primarily as a result of higher catalyst sales and lower research and development costs which more than offset lower licensing revenues.

Three months ended March 31, 2014 versus three months ended March 31, 2013
EBITDA increased by $10 million, primarily due to lower research and development costs.

Capital spending and cash balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $343 million in the first quarter 2014. The cash and short-term securities balance was $4.4 billion at March 31, 2014. We repurchased approximately 15 million ordinary shares during the first quarter 2014 and approximately 42 million shares as of March 31, 2014. The company paid dividends of $327 million during the quarter and issued $1.0 billion in bonds at a coupon rate of 4.875 percent.

CONFERENCE CALL
LyondellBasell will host a conference call Apr. 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 888-677-1826. 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 April 29 until June 2 at 11 p.m. ET.  The replay dial-in numbers are 888-566-0499 (U.S.) and +1 203-369-3057 (international). The pass code for each is 3675.

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 55 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; our ability to successfully execute projects and growth strategies; 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, 2013, 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 8 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.

Media Contact:    Stanley Sehested +1 713-309-4125
Investor Contact:   Douglas J. Pike +1 713-309-7141

 

Table 7 - Reconciliation of Segment Information to Consolidated Financial Information

                                           
         

2013

 

2014

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Sales and other operating revenues:

                                 
   

Olefins & Polyolefins - Americas

$

3,244

 

$

3,251

 

$

3,315

 

$

3,279

 

$

13,089

 

$

3,357

   

Olefins & Polyolefins - Europe, Asia, International

 

3,800

   

3,708

   

3,594

   

3,583

   

14,685

   

3,778

   

Intermediates & Derivatives

 

2,282

   

2,217

   

2,452

   

2,521

   

9,472

   

2,429

   

Refining

 

2,468

   

3,077

   

3,177

   

2,976

   

11,698

   

2,756

   

Technology

 

134

   

132

   

124

   

142

   

532

   

136

   

Other

 

(1,259)

   

(1,282)

   

(1,510)

   

(1,363)

   

(5,414)

   

(1,321)

     

Continuing Operations

$

10,669

 

$

11,103

 

$

11,152

 

$

11,138

 

$

44,062

 

$

11,135

 

Operating income (loss):

                                 
   

Olefins & Polyolefins - Americas

$

821

 

$

872

 

$

759

 

$

801

 

$

3,253

 

$

656

   

Olefins & Polyolefins - Europe, Asia, International

 

93

   

189

   

78

   

17

   

377

   

225

   

Intermediates & Derivatives

 

323

   

285

   

371

   

321

   

1,300

   

316

   

Refining

 

(17)

   

(16)

   

(37)

   

92

   

22

   

86

   

Technology

 

50

   

39

   

35

   

33

   

157

   

60

   

Other

 

(3)

   

(5)

   

1

   

- -

   

(7)

   

(3)

     

Continuing Operations

$

1,267

 

$

1,364

 

$

1,207

 

$

1,264

 

$

5,102

 

$

1,340

 

Depreciation and amortization:

                                 
   

Olefins & Polyolefins - Americas

$

75

 

$

69

 

$

73

 

$

76

 

$

293

 

$

73

   

Olefins & Polyolefins - Europe, Asia, International

 

77

   

76

   

78

   

56

   

287

   

70

   

Intermediates & Derivatives

 

48

   

50

   

50

   

56

   

204

   

55

   

Refining

 

36

   

37

   

45

   

42

   

160

   

42

   

Technology

 

17

   

20

   

16

   

22

   

75

   

16

   

Other

 

- -

   

2

   

- -

   

- -

   

2

   

- -

     

Continuing Operations

$

253

 

$

254

 

$

262

 

$

252

 

$

1,021

 

$

256

 

EBITDA: (a)

                                 
   

Olefins & Polyolefins - Americas

$

898

 

$

951

 

$

841

 

$

883

 

$

3,573

 

$

736

   

Olefins & Polyolefins - Europe, Asia, International

 

225

   

295

   

204

   

115

   

839

   

356

   

Intermediates & Derivatives

 

373

   

338

   

427

   

354

   

1,492

   

375

   

Refining

 

20

   

20

   

8

   

134

   

182

   

129

   

Technology

 

66

   

59

   

52

   

55

   

232

   

76

   

Other

 

3

   

(11)

   

(1)

   

2

   

(7)

   

(4)

     

Continuing Operations

$

1,585

 

$

1,652

 

$

1,531

 

$

1,543

 

$

6,311

 

$

1,668

 

Capital, turnarounds and IT deferred spending:

                                 
   

Olefins & Polyolefins - Americas

$

122

 

$

122

 

$

218

 

$

183

 

$

645

 

$

231

   

Olefins & Polyolefins - Europe, Asia, International

 

63

   

46

   

44

   

76

   

229

   

33

   

Intermediates & Derivatives

 

106

   

141

   

119

   

77

   

443

   

45

   

Refining

 

93

   

67

   

36

   

13

   

209

   

32

   

Technology

 

7

   

6

   

7

   

10

   

30

   

2

   

Other

 

- -

   

5

   

(1)

   

1

   

5

   

- -

     

Total 

 

391

   

387

   

423

   

360

   

1,561

   

343

   

Deferred charges included above

 

- -

   

- -

   

- -

   

- -

   

- -

   

- -

     

Continuing Operations

$

391

 

$

387

 

$

423

 

$

360

 

$

1,561

 

$

343

                                           
                                           

(a) See Table 8 for EBITDA calculation. 

 
 

Table 8 - EBITDA Calculation

                                           
         

2013

 

2014

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                     
 

Net income attributable to the Company shareholders

$

901

 

$

929

 

$

853

 

$

1,174

 

$

3,857

 

$

945

 

Net income (loss) attributable to non-controlling interests

 

(1)

   

(2)

   

(2)

   

1

   

(4)

   

(1)

 

(Income) loss from discontinued operations, net of tax

 

6

   

(4)

   

3

   

2

   

7

   

(1)

 

Income from continuing operations

 

906

   

923

   

854

   

1,177

   

3,860

   

943

   

Provision for income taxes

 

357

   

410

   

339

   

30

   

1,136

   

383

   

Depreciation and amortization

 

253

   

254

   

262

   

252

   

1,021

   

256

   

Interest expense, net

 

69

   

65

   

76

   

84

   

294

   

86

 

EBITDA

$

1,585

 

$

1,652

 

$

1,531

 

$

1,543

 

$

6,311

 

$

1,668

                                           
                                           
                                           
                                           

Table 9 - Selected Segment Operating Information

                                 
           

2013

 

2014

           

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Olefins and Polyolefins - Americas

                       
   

Volumes (million pounds)

                       
     

Ethylene produced

 

2,337

 

2,412

 

2,111

 

2,156

 

9,016

 

1,979

     

Propylene produced

 

624

 

529

 

652

 

646

 

2,451

 

611

     

Polyethylene sold

 

1,396

 

1,389

 

1,378

 

1,409

 

5,572

 

1,406

     

Polypropylene sold

 

565

 

637

 

669

 

642

 

2,513

 

614

   

Benchmark Market Prices

                       
     

West Texas Intermediate crude oil (USD per barrel)

 

94.4

 

94.2

 

105.8

 

97.6

 

98.1

 

98.6

     

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

 

113.9

 

104.6

 

109.9

 

101.1

 

107.3

 

104.4

     

Natural gas (USD per million BTUs)

 

3.5

 

4.2

 

3.7

 

3.7

 

3.8

 

5.0

     

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

 

13.8

 

15.7

 

16.6

 

18.6

 

16.2

 

20.0

     

U.S. ethylene (cents/pound)

 

48.0

 

46.3

 

45.8

 

46.5

 

46.7

 

48.3

     

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

 

66.7

 

68.7

 

71.7

 

75.0

 

70.5

 

76.3

     

U.S. propylene (cents/pound)

 

75.0

 

63.3

 

68.3

 

68.2

 

68.7

 

73.3

     

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

 

88.0

 

76.2

 

82.3

 

82.2

 

82.2

 

88.3

                                 
 

Olefins and Polyolefins - Europe, Asia, International

                       
   

Volumes (million pounds)

                       
     

Ethylene produced

 

912

 

991

 

984

 

930

 

3,817

 

989

     

Propylene produced

 

577

 

610

 

597

 

568

 

2,352

 

582

     

Polyethylene sold

 

1,206

 

1,314

 

1,212

 

1,167

 

4,899

 

1,275

     

Polypropylene sold

 

1,657

 

1,821

 

1,612

 

1,531

 

6,621

 

1,509

   

Benchmark Market Prices (€0.01 per pound)

                       
     

Western Europe weighted average cost of ethylene production

 

36.2

 

29.3

 

34.9

 

38.5

 

34.7

 

32.9

     

Western Europe ethylene

 

58.6

 

54.4

 

55.0

 

55.1

 

55.8

 

54.7

     

Western Europe polyethylene [high density]

 

61.2

 

56.8

 

57.9

 

57.1

 

58.2

 

56.1

     

Western Europe propylene

 

50.6

 

47.9

 

49.6

 

49.9

 

49.5

 

51.3

     

Western Europe polypropylene [homopolymer]

 

59.1

 

56.1

 

58.1

 

58.2

 

57.9

 

59.9

                               
 

Intermediates and Derivatives

                       
   

Volumes (million pounds)

                       
     

Propylene oxide and derivatives

 

683

 

665

 

665

 

729

 

2,742

 

772

     

Ethylene oxide and derivatives

 

260

 

277

 

294

 

346

 

1,177

 

262

     

Styrene monomer

 

703

 

589

 

756

 

832

 

2,880

 

683

     

Acetyls

 

431

 

470

 

506

 

510

 

1,917

 

683

     

TBA Intermediates

 

434

 

357

 

425

 

442

 

1,658

 

416

   

Volumes (million gallons)

                       
     

MTBE/ETBE

 

185

 

235

 

241

 

222

 

883

 

188

   

Benchmark Market Margins  (cents per gallon)

                       
     

MTBE - Northwest Europe

 

104.9

 

88.4

 

86.8

 

37.8

 

79.1

 

63.4

                             
 

Refining

                       
   

Volumes (thousands of barrels per day)

                       
     

Heavy crude oil processing rate

 

173

 

265

 

250

 

239

 

232

 

247

   

Benchmark Market Margins

                       
     

Light crude oil - 2-1-1

 

11.53

 

14.63

 

12.63

 

12.67

 

12.89

 

13.18

     

Light crude oil - Maya differential

 

11.17

 

6.95

 

10.59

 

11.65

 

10.05

 

15.08

                               
                                 

Source:  LYB and third party consultants

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

 
 
                                 

Table 10 - Unaudited Income Statement Information

                                           
         

2013

 

2014

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                     
 

Sales and other operating revenues

$

10,669

 

$

11,103

 

$

11,152

 

$

11,138

 

$

44,062

 

$

11,135

 

Cost of sales

 

9,153

   

9,496

   

9,690

   

9,601

   

37,940

   

9,577

 

Selling, general and administrative expenses

 

213

   

208

   

220

   

229

   

870

   

186

 

Research and development expenses

 

36

   

35

   

35

   

44

   

150

   

32

   

Operating income

 

1,267

   

1,364

   

1,207

   

1,264

   

5,102

   

1,340

 

Income from equity investments

 

59

   

43

   

61

   

40

   

203

   

61

 

Interest expense, net

 

(69)

   

(65)

   

(76)

   

(84)

   

(294)

   

(86)

 

Other income (expense), net

 

6

   

(8)

   

1

   

(13)

   

(14)

   

11

 

Reorganization items

 

- -

   

(1)

   

- -

   

- -

   

(1)

   

- -

   

Income from continuing operations before income taxes

 

1,263

   

1,333

   

1,193

   

1,207

   

4,996

   

1,326

 

Provision for income taxes

 

357

   

410

   

339

   

30

   

1,136

   

383

   

Income from continuing operations

 

906

   

923

   

854

   

1,177

   

3,860

   

943

 

Income (loss) from discontinued operations,

                                 
   

net of tax

 

(6)

   

4

   

(3)

   

(2)

   

(7)

   

1

     

Net income

 

900

   

927

   

851

   

1,175

   

3,853

   

944

 

Net loss attributable to non-controlling

                                 
   

interests

 

1

   

2

   

2

   

(1)

   

4

   

1

     

Net income attributable to the Company

                                 
       

shareholders

$

901

 

$

929

 

$

853

 

$

1,174

 

$

3,857

 

$

945

                                           
                                           
                                           
                                           

Table 11 - Charges (Benefits) Included in Income from Continuing Operations

                                       
     

2013

 

2014

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

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

Pretax charges (benefits):

                                 
 

Impairments

$

- -

 

$

- -

 

$

- -

 

$

10

 

$

10

 

$

- -

 

Insurance settlement

 

- -

   

- -

   

- -

   

(25)

   

(25)

   

- -

 

Settlement of environmental indemnification agreement

 

- -

   

- -

   

- -

   

- -

   

- -

   

(52)

 

Loss on sale of investment

 

- -

   

- -

   

- -

   

16

   

16

   

- -

Total pretax charges (benefits)

 

- -

   

- -

   

- -

   

1

   

1

   

(52)

Provision for income tax related to these items

 

- -

   

- -

   

- -

   

4

   

4

   

- -

After-tax effect of net charges (benefits)

$

- -

 

$

- -

 

$

- -

 

$

5

 

$

5

 

$

(52)

Effect on diluted earnings per share

$

- -

 

$

- -

 

$

- -

 

$

- -

 

$

- -

 

$

0.09

 
 
 
 

Table 12 - Unaudited Cash Flow Information

                               
         

2013

 

2014

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                           
 

Net cash provided by operating activities

$

799

 

$

1,264

 

$

1,131

 

$

1,641

 

$

4,835

 

$

801

                                           
 

Net cash used in investing activities

 

(408)

   

(389)

   

(438)

   

(367)

   

(1,602)

   

(2,011)

                                       
 

Net cash provided by (used in) financing activities

 

(234)

   

(526)

   

437

   

(1,266)

   

(1,589)

   

(550)

                                           
                                           
                                           
                                           

Table 13 - Unaudited Balance Sheet Information

                                         
             

March 31,

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

(Millions of U.S. dollars)

2013

 

2013

 

2013

 

2013

 

2014

                                         
 

Cash and cash equivalents

$

2,879

 

$

3,233

 

$

4,414

 

$

4,450

 

$

2,702

 

Restricted cash

 

6

   

2

   

4

   

10

   

3

 

Short-term investments

 

- -

   

- -

   

- -

   

- -

   

1,402

 

Accounts receivable, net

 

3,878

   

4,023

   

4,041

   

4,030

   

4,141

 

Inventories

 

5,270

   

5,197

   

5,382

   

5,279

   

5,589

 

Prepaid expenses and other current assets

 

622

   

577

   

784

   

830

   

1,156

     

Total current assets

 

12,655

   

13,032

   

14,625

   

14,599

   

14,993

 

Property, plant and equipment, net

 

7,779

   

7,979

   

8,223

   

8,457

   

8,556

 

Investments and long-term receivables:

                           
     

Investment in PO joint ventures

 

401

   

409

   

423

   

421

   

424

     

Equity investments

 

1,607

   

1,622

   

1,615

   

1,629

   

1,693

     

Other investments and long-term receivables

 

421

   

231

   

164

   

64

   

62

 

Goodwill

 

582

   

588

   

598

   

605

   

605

 

Intangible assets, net

 

999

   

966

   

934

   

904

   

870

 

Other assets

 

233

   

221

   

229

   

619

   

624

     

Total assets

$

24,677

 

$

25,048

 

$

26,811

 

$

27,298

 

$

27,827

                                         
 

Current maturities of long-term debt

$

1

 

$

1

 

$

1

 

$

1

 

$

3

 

Short-term debt

 

115

   

114

   

114

   

58

   

58

 

Accounts payable

 

3,217

   

3,324

   

3,241

   

3,572

   

3,642

 

Accrued liabilities

 

1,217

   

1,047

   

1,528

   

1,299

   

1,477

 

Deferred income taxes

 

557

   

550

   

494

   

580

   

540

     

Total current liabilities

 

5,107

   

5,036

   

5,378

   

5,510

   

5,720

 

Long-term debt

 

4,307

   

4,306

   

5,774

   

5,776

   

6,766

 

Other liabilities

 

2,306

   

2,325

   

2,278

   

1,839

   

1,838

 

Deferred income taxes

 

1,277

   

1,312

   

1,472

   

1,659

   

1,677

 

Stockholders' equity

 

11,641

   

12,032

   

11,874

   

12,478

   

11,791

 

Non-controlling interests

 

39

   

37

   

35

   

36

   

35

     

Total liabilities and stockholders' equity

$

24,677

 

$

25,048

 

$

26,811

 

$

27,298

 

$

27,827

                               
                                         

 

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SOURCE LyondellBasell Industries



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