LyondellBasell Reports Record 2013 Earnings

Jan 31, 2014, 07:00 ET from LyondellBasell Industries

HOUSTON and LONDON, Jan. 31, 2014 /PRNewswire/ --

Full Year 2013 Highlights

  • Record earnings of $3.9 billion income from continuing operations or $6.76 diluted earnings per share; EBITDA of $6.3 billion
  • Strong performance led by advantaged positions in both Olefins and Polyolefins – Americas, and Intermediates and Derivatives
  • Growth projects on schedule; completed butadiene expansion and methanol restart
  • Initiated a share repurchase program of up to 10 percent in second quarter 2013; share repurchases and dividends totaled $3.1 billion

Fourth Quarter 2013 Highlights

  • $1.2 billion income from continuing operations or $2.11 diluted earnings per share
  • Record fourth quarter EBITDA of $1.5 billion
  • Methanol plant restarted on schedule
  • Increased ethane cracking to 77 percent of U.S. ethylene production
  • Increased interim dividend by 20 percent to $0.60 per share
  • Repurchased 8.5 million shares during the quarter

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2013 of $1,177 million, or $2.11 per share. Fourth-quarter 2013 EBITDA was $1,543 million. Full year 2013 income from continuing operations was $3,860 million, or $6.76 per share.

Comparisons with the prior quarter, fourth quarter 2012 and full year 2012 are available in the following table.

Table 1 - Earnings Summary

Three Months Ended

Year Ended

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

December 31,

September 30,

December 31,

December 31,

December 31,

2013

2013

2012

2013

2012

Sales and other operating revenues

$11,138

$11,152

$11,097

$44,062

$45,352

Net income(a)

1,175

851

623

3,853

2,834

Income from continuing operations

1,177

854

645

3,860

2,858

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

Net income(b)

2.11

1.50

1.09

6.75

4.92

Income from continuing operations

2.11

1.51

1.13

6.76

4.96

Diluted share count (millions)

555

567

578

570

577

EBITDA(c)

1,543

1,531

1,265

6,311

5,808

(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.

In 2013, LyondellBasell reported record results, led by improvements in global olefins and polyolefins. Fourth quarter 2013 EBITDA was relatively unchanged compared to the third quarter of 2013 despite the impact of normal seasonal slowdowns. Income from continuing operations increased relative to the third quarter due to a lower effective tax rate related to the release of reserves against certain European net operating losses (NOLs).

Results reflect the following charges and benefits:

Table 2 - Charges (Benefits) Included in Net Income

Three Months Ended

Year Ended

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

December 31,

September 30,

December 31,

December 31,

December 31,

2013

2013

2012

2013

2012

Pretax charges (benefits):

Charges and premiums related to repayment of debt

$ - -

$ - -

$ - -

$ - -

$329

Reorganization items

- -

- -

- -

- -

(4)

Corporate restructurings

- -

- -

53

- -

53

Impairments

10

- -

- -

10

22

Warrants - mark to market

- -

- -

- -

- -

11

Legal recovery

- -

- -

- -

- -

(24)

Insurance settlement

(25)

- -

- -

(25)

(100)

Unfavorable contract reserve reversal

- -

- -

(28)

- -

(28)

Loss on sale of investment

16

- -

- -

16

- -

Total pretax charges (benefits)

1

- -

25

1

259

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

4

- -

(17)

4

(96)

After-tax effect of net charges (credits)

$5

$ - -

$8

$5

$163

Effect on diluted earnings per share

$0

$0

$0

$0

($0.26)

"We achieved record earnings in 2013, capped by the best fourth-quarter results in our history," said CEO Jim Gallogly.  "Our performance for the quarter and the year continued a pattern of solid financial results  built on our back-to-basics strategy and supplemented with high return growth projects. During the quarter, we completed the methanol restart project at Channelview, Texas. This project and other announced projects focus on capturing additional advantages from U.S. shale gas ahead of our competition," he said. "We advanced our cash deployment strategy in 2013; we increased the quarterly interim dividend over the year by 50 percent to $0.60 per share and initiated a share repurchase program. Shareholders realized a total stock return of 45 percent in 2013 versus the S&P 500 return of 32 percent," Gallogly said. OUTLOOK "The fundamentals supporting our businesses have remained strong. The U.S. natural gas liquids advantage continues to evolve in a very positive way, and we are executing our growth projects rapidly to take advantage of these market opportunities. We believe olefins in North America will continue to benefit from strong margins created by cost-advantaged NGLs.  We will commence an olefins turnaround at La Porte late in the first quarter which will extend into the second quarter. European olefins and polyolefins demand should improve from a seasonally-low fourth quarter," Gallogly said.

"Intermediates and Derivatives continues to realize solid, steady performance and will additionally benefit from the methanol restart. The global refining market has been volatile, but improving of late. We expect that our refining position should strengthen in 2014 as North American crude production grows and the delivery infrastructure expands," 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 3 - O&P–Americas Financial Overview

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$801

$759

$693

$3,253

$2,650

EBITDA

883

841

778

3,573

2,968

Three months ended December 31, 2013 versus three months ended September 30, 2013 – EBITDA increased $42 million versus the third quarter 2013. Our average ethylene price was relatively unchanged. The cost of ethylene production metric improved due to cracking more ethane, which represented approximately 77 percent of the ethylene production. During the fourth quarter, we purchased ethylene to build inventory in preparation for the 2014 La Porte turnaround and expansion. Polyethylene benefitted from a 2 cent per pound higher average price and 2 percent higher sales volumes. Polypropylene sales volumes declined by approximately 4 percent. Joint venture equity income decreased by $1 million from the third quarter 2013.

Three months ended December 31, 2013 versus three months ended December 31, 2012 – EBITDA increased $105 million versus the fourth quarter 2012. Olefin results were impacted by a 3 cent per pound lower average ethylene price and reduced volumes.  Our cost of ethylene production improved as a result of a higher percentage of ethane cracking, lower domestic condensate prices, and higher propylene co-product values. Polyethylene benefitted from a 10 cent per pound higher price which more than offset a 2 percent volume decline. Polypropylene sales volumes increased by 11 percent partially offsetting a decline in margins. Joint venture equity income decreased by $2 million versus the prior year period.

Full year ended December 31, 2013 versus full year ended December 31, 2012 – EBITDA increased $605 million versus 2012 to record results of $3,573 million in 2013. Olefin results increased compared to the prior year. Ethylene margins benefitted from a 5 cent per pound lower average cost-of-ethylene-production which more than offset a 1 cent per pound lower ethylene price. The lower cost of ethylene production was primarily due to lower Gulf Coast NGL prices and higher propylene and benzene co-product values. Polyethylene price increased by 5 cents per pound which more than offset modestly lower polypropylene margins. The segment benefitted in 2012 from a $29 million hurricane insurance settlement. Joint venture equity income was 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

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income (loss)

$17

$78

($94)

$377

$127

EBITDA

115

204

26

839

548

Three months ended December 31, 2013 versus three months ended September 30, 2013 – EBITDA decreased $89 million versus the third quarter 2013. The fourth quarter results included a positive impact of $25 million related to an insurance settlement. Seasonal impacts dominated the EBITDA decline. Olefin results decreased reflecting lower olefin margins driven by higher feedstock costs. Combined polyolefin results were impacted by lower margins and seasonally lower volumes. Polypropylene compounds and polybutene-1 results decreased by approximately $25 million primarily due to seasonally lower sales volumes. Equity income from joint ventures decreased by $7 million from the third quarter 2013.

Three months ended December 31, 2013 versus three months ended December 31, 2012 –  EBITDA increased $89 million versus the fourth quarter 2012. Excluding an insurance settlement, a reversal of a contract reserve and applicable restructuring costs as indicated on Table 2, EBITDA increased by $57 million. Olefin results improved as a result of higher volumes versus the prior year period which was impacted by a turnaround at Wesseling, Germany. Combined polyolefin results increased as improved margins more than offset a 6 percent decline in sales volumes. Polypropylene compounds and polybutene-1 results increased slightly. Equity income from joint ventures increased by $12 million from the fourth quarter 2012.

Full year ended December 31, 2013 versus full year ended December 31, 2012 – EBITDA increased $291 million versus 2012. Excluding the impact from an insurance settlement, a reversal of a contract reserve, an asset impairment and applicable restructuring costs as indicated on Table 2, EBITDA increased by $237 million. Olefin results benefitted from improved olefin margins and higher volumes compared to the prior year period. Cracking advantaged feedstocks and lower naphtha prices in 2013 were major drivers of higher olefin margins. The production volumes in 2012 were impacted by a turnaround at Wesseling, Germany. Combined polyolefin results increased compared to the prior year driven by higher polyethylene margins and a 2 percent higher polyolefin sales volume. Polypropylene compounds and polybutene-1 results increased by approximately $15 million as a result of higher margins and volumes. Equity income from joint ventures increased by $53 million in 2013 versus 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 (including methanol), ethylene oxide and its derivatives, and oxyfuels. 

Table 5 - I&D Financial Overview

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$321

$371

$246

$1,300

$1,430

EBITDA

354

427

297

1,492

1,621

Three months ended December 31, 2013 versus three months ended September 30, 2013 EBITDA decreased $73 million versus the third quarter 2013. Results for PO and PO derivatives increased slightly. Compared to the prior quarter, intermediate chemicals results were relatively unchanged as higher methanol and ethylene glycol volumes and margins offset a decline in styrene margins. Oxyfuels results decreased due to seasonally lower margins and volumes. The lower oxyfuels margins were a result of lower spreads between butane, MTBE and gasoline. 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 December 31, 2013 versus three months ended December 31, 2012 – EBITDA increased $57 million compared to the fourth quarter 2012. Results for PO and PO derivatives were relatively unchanged as higher PO volumes offset the impact of weaker butanediol and solvents market conditions. Intermediate chemicals results increased driven by higher margins and sales volumes for styrene, acetyls and ethylene glycol. Oxyfuels  experienced lower margins, which offset higher sales volumes. Fourth quarter 2013 results include $26 million of charges related to our exit from the NOC joint venture.

Full year ended December 31, 2013 versus full year ended December 31, 2012 – EBITDA decreased by $129 million versus 2012. Underlying results for PO were relatively unchanged. Lower PO derivatives results primarily due to weaker butanediol and solvents market conditions were offset by improved intermediate chemicals results driven by higher ethylene glycol, acetyls and styrene margins. Oxyfuels results declined compared to the prior year due to lower margins which more than offset higher sales volumes. Lower oxyfuels margins resulted from a lower MTBE spread to gasoline and a weaker gasoline market in 2013 versus stronger than typical 2012 spreads and market conditions. Results in 2013 include $26 million of charges related to our exit from the NOC joint venture. Exclusive of the $10 million impairment charge, equity income from joint ventures increased by $17 million. The segment benefitted in 2012 from $18 million related to an insurance settlement.

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

Table 6 - Refining Financial Overview

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income (loss)

$92

($37)

$86

$22

$334

EBITDA

134

8

123

182

481

Three months ended December 31, 2013 versus three months ended September 30, 2013 – EBITDA increased $126 million versus the third quarter 2013. The Houston refinery operated at 239,000 barrels per day, down 11,000 barrels per day from the prior quarter due to operational issues during December. The Maya 2-1-1 industry benchmark crack spread increased by $1.10 per barrel, averaging $24.32 per barrel. The refinery spread increased by more than the benchmark, and by-products values improved relative to the third quarter. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards decreased by $24 million versus the third quarter 2013.

Three months ended December 31, 2013 versus three months ended December 31, 2012 – EBITDA increased $11 million versus the fourth quarter 2012. The Houston refinery operated at 239,000 barrels per day, down 16,000 barrels per day from the prior year period. The Maya 2-1-1 industry benchmark crack spread decreased by $1.12 per barrel, averaging $24.32 per barrel. Compared to the 2012 period, the refinery margins improved due to higher by-products spreads which more than offset the lower crack spread. The cost of RINs increased by $4 million versus the fourth quarter 2012.

Full year ended December 31, 2013 versus full year ended December 31, 2012 – EBITDA decreased $299 million versus 2012 due to lower margins, higher RINs cost and a throughput decline of 23,000 barrels per day. The throughput decline, which impacted results by approximately $80 million, was primarily the result of a planned turnaround at the refinery. The Maya 2-1-1 industry benchmark crack spread decreased by $1.97 per barrel, averaging $22.94 per barrel. The cost of RINs increased by $87 million in 2013 relative to 2012. The segment benefitted from proceeds of $19 million in 2013 and $77 million in 2012 from insurance claims, recoveries and settlements.

Technology Segment – 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

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$33

$35

$23

$157

$122

EBITDA

55

52

42

232

197

Three months ended December 31, 2013 versus three months ended September 30, 2013 – EBITDA increased by $3 million primarily as a result of higher licensing revenues.

Three months ended December 31, 2013 versus three months ended December 31, 2012 – EBITDA increased by $13 million primarily due to the absence of charges related to research and development restructuring activities.

Full year ended December 31, 2013 versus full year ended December 31, 2012 – EBITDA increased $35 million versus 2012 to record results of $232 million in 2013 due in part to higher licensing revenues and lower research and development costs. Segment results in 2012 include $18 million in charges related to research and development restructuring activities.

Capital Spending, Cash Balances and Tax Rate

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $360 million during the fourth quarter 2013 and $1.6 billion for the full year 2013.  The cash balance was $4.4 billion at Dec. 31, 2013. We repurchased 8.5 million ordinary shares during the fourth quarter 2013 and 27.4 million shares in 2013. The company paid dividends of $1.1 billion in 2013. During the year, the company issued $1.5 billion in bonds. The 2013 effective tax rate was 23 percent, inclusive of the release of reserves against certain European net operating losses (NOLs).

CONFERENCE CALL LyondellBasell will host a conference call Jan. 31 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 Jan. 31 until March 2 at 11 p.m. ET.  The replay dial-in numbers are 888-662-6658 (U.S.) and +1 402-220-6418 (international). The pass code for each is 3674.

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 EBITDA, which is "non-GAAP" financial measures 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. 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.

Media Contact:          David A. Harpole +1 713-309-4125 Investor Contact:       Douglas J. Pike +1 713-309-7141

Table 8 - Reconciliation of Segment Information to Consolidated Financial Information

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

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

$

3,279

$

13,089

Olefins & Polyolefins - EAI

3,898

3,575

3,448

3,600

14,521

3,800

3,708

3,594

3,583

14,685

Intermediates & Derivatives

2,485

2,285

2,637

2,251

9,658

2,282

2,217

2,452

2,521

9,472

Refining

3,203

3,496

3,272

3,320

13,291

2,468

3,077

3,177

2,976

11,698

Technology

119

115

124

140

498

134

132

124

142

532

Other/elims

(1,320)

(1,506)

(1,425)

(1,299)

(5,550)

(1,259)

(1,282)

(1,510)

(1,363)

(5,414)

Continuing Operations

$

11,734

$

11,248

$

11,273

$

11,097

$

45,352

$

10,669

$

11,103

$

11,152

$

11,138

$

44,062

Operating income (loss):

Olefins & Polyolefins - Americas

$

519

$

700

$

738

$

693

$

2,650

$

821

$

872

$

759

$

801

$

3,253

Olefins & Polyolefins - EAI

3

203

15

(94)

127

93

189

78

17

377

Intermediates & Derivatives

370

390

424

246

1,430

323

285

371

321

1,300

Refining

10

124

114

86

334

(17)

(16)

(37)

92

22

Technology

38

30

31

23

122

50

39

35

33

157

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

$

1,264

$

5,102

Depreciation and amortization:

Olefins & Polyolefins - Americas

$

65

$

71

$

69

$

76

$

281

$

75

$

69

$

73

$

76

$

293

Olefins & Polyolefins - EAI

69

69

63

84

285

77

76

78

56

287

Intermediates & Derivatives

47

48

49

50

194

48

50

50

56

204

Refining

38

37

36

37

148

36

37

45

42

160

Technology

18

19

18

18

73

17

20

16

22

75

Other

- -

- -

1

1

2

- -

2

- -

- -

2

Continuing Operations

$

237

$

244

$

236

$

266

$

983

$

253

$

254

$

262

$

252

$

1,021

EBITDA: (a)

Olefins & Polyolefins - Americas

$

595

$

781

$

814

$

778

$

2,968

$

898

$

951

$

841

$

883

$

3,573

Olefins & Polyolefins - EAI

115

305

102

26

548

225

295

204

115

839

Intermediates & Derivatives

417

432

475

297

1,621

373

338

427

354

1,492

Refining

48

160

150

123

481

20

20

8

134

182

Technology

56

50

49

42

197

66

59

52

55

232

Other

(4)

(1)

(1)

(1)

(7)

3

(11)

(1)

2

(7)

Continuing Operations

$

1,227

$

1,727

$

1,589

$

1,265

$

5,808

$

1,585

$

1,652

$

1,531

$

1,543

$

6,311

Capital, turnarounds and IT deferred spending:

Olefins & Polyolefins - Americas

$

102

$

135

$

126

$

105

$

468

$

122

$

122

$

218

$

183

$

645

Olefins & Polyolefins - EAI

60

39

60

95

254

63

46

44

76

229

Intermediates & Derivatives

18

24

44

73

159

106

141

119

77

443

Refining

38

27

24

47

136

93

67

36

13

209

Technology

9

8

12

14

43

7

6

7

10

30

Other

2

3

1

(1)

5

- -

5

(1)

1

5

Total 

229

236

267

333

1,065

391

387

423

360

1,561

Deferred charges included above

(1)

(3)

(1)

- -

(5)

- -

- -

- -

- -

- -

Continuing Operations

$

228

$

233

$

266

$

333

$

1,060

$

391

$

387

$

423

$

360

$

1,561

(a) See Table 9 for a reconciliation of total EBITDA to income from continuing operations. 

 

Table 9 - EBITDA Calculation

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

Q3

Q4

YTD

Net income attributable to the Company shareholders

$

600

$

770

$

846

$

632

$

2,848

$

901

$

929

$

853

$

1,174

$

3,857

Net income (loss) attributable to non-controlling interests

(1)

(2)

(2)

(9)

(14)

(1)

(2)

(2)

1

(4)

(Income) loss from discontinued operations, net of tax

(5)

- -

7

22

24

6

(4)

3

2

7

Income from continuing operations

594

768

851

645

2,858

906

923

854

1,177

3,860

Provision for income taxes

301

306

435

285

1,327

357

410

339

30

1,136

Depreciation and amortization

237

244

236

266

983

253

254

262

252

1,021

Interest expense, net

95

409

67

69

640

69

65

76

84

294

EBITDA

$

1,227

$

1,727

$

1,589

$

1,265

$

5,808

$

1,585

$

1,652

$

1,531

$

1,543

$

6,311

 

Table 10 - Selected Segment Operating Information

2012

2013

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

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

2,156

9,016

Propylene produced

533

615

633

582

2,363

624

529

652

646

2,451

Polyethylene sold

1,371

1,327

1,430

1,438

5,566

1,396

1,389

1,378

1,409

5,572

Polypropylene sold

649

634

639

576

2,498

565

637

669

642

2,513

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

97.6

98.1

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

101.1

107.3

Natural gas (USD per million BTUs)

2.7

2.3

2.9

3.5

2.9

3.5

4.2

3.7

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

18.6

16.2

U.S. ethylene (cents/pound)

54.9

46.9

45.4

45.7

48.3

48.0

46.3

45.8

46.5

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

75.0

70.5

U.S. propylene (cents/pound)

68.7

65.7

51.3

56.0

60.4

75.0

63.3

68.3

68.2

68.7

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

81.2

76.7

63.8

68.5

72.5

88.0

76.2

82.3

82.2

82.2

Olefins and Polyolefins - Europe, Asia, International

Volumes (million pounds)

Ethylene produced

945

930

802

833

3,510

912

991

984

930

3,817

Propylene produced

557

561

492

502

2,112

577

610

597

568

2,352

Polyethylene sold

1,320

1,130

1,243

1,250

4,943

1,206

1,314

1,212

1,167

4,899

Polypropylene sold

1,614

1,433

1,727

1,623

6,397

1,657

1,821

1,612

1,531

6,621

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

38.5

34.7

Western Europe ethylene

55.1

58.6

53.1

58.1

56.2

58.6

54.4

55.0

55.1

55.8

Western Europe polyethylene [high density]

58.6

60.9

57.2

61.0

59.4

61.2

56.8

57.9

57.1

58.2

Western Europe propylene

50.1

54.1

47.6

50.8

50.7

50.6

47.9

49.6

49.9

49.5

Western Europe polypropylene [homopolymer]

57.9

60.4

56.1

58.7

58.3

59.1

56.1

58.1

58.2

57.9

Intermediates and Derivatives

Volumes (million pounds)

Propylene oxide and derivatives

774

743

762

663

2,942

683

665

665

729

2,742

Ethylene oxide and derivatives

312

275

311

260

1,158

260

277

294

346

1,177

Styrene monomer

704

678

791

782

2,955

703

589

756

832

2,880

Acetyls

489

444

499

406

1,838

431

470

506

510

1,917

TBA Intermediates

430

422

420

403

1,675

434

357

425

442

1,658

Volumes (million gallons)

MTBE/ETBE

205

189

256

199

849

185

235

241

222

883

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

37.8

79.1

Refining

Volumes (thousands of barrels per day)

Heavy crude oil processing rate

259

267

240

255

255

173

265

250

239

232

Benchmark Market Margins

Light crude oil - 2-1-1

10.29

15.30

16.82

8.99

12.86

11.53

14.63

12.63

12.67

12.89

Light crude oil - Maya differential

10.81

9.12

11.94

16.45

12.05

11.17

6.95

10.59

11.65

10.05

Source: LYB and third party consultants

Note - Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices.  Volumes presented represent third party sales of selected key products.

 

Table 11 - Unaudited Income Statement Information

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

YTD

Sales and other operating revenues

$

11,734

$

11,248

$

11,273

$

11,097

$

45,352

$

10,669

$

11,103

$

11,152

$

11,138

$

44,062

Cost of sales

10,532

9,561

9,670

9,832

39,595

9,153

9,496

9,690

9,601

37,940

Selling, general and administrative expenses

223

201

236

249

909

213

208

220

229

870

Research and development expenses

39

37

39

57

172

36

35

35

44

150

Operating income

940

1,449

1,328

959

4,676

1,267

1,364

1,207

1,264

5,102

Income from equity investments

46

27

32

38

143

59

43

61

40

203

Interest expense, net

(95)

(409)

(67)

(69)

(640)

(69)

(65)

(76)

(84)

(294)

Other income (expense), net

(1)

8

(7)

2

2

6

(8)

1

(13)

(14)

Reorganization items Income before taxes

5

(1)

- -

- -

4

- -

(1)

- -

- -

(1)

895

1,074

1,286

930

4,185

1,263

1,333

1,193

1,207

4,996

Provision for income taxes

301

306

435

285

1,327

357

410

339

30

1,136

Income from continuing operations

594

768

851

645

2,858

906

923

854

1,177

3,860

Income (loss) from discontinued operations, net of tax

5

- -

(7)

(22)

(24)

(6)

4

(3)

(2)

(7)

Net income

599

768

844

623

2,834

900

927

851

1,175

3,853

Net (income) loss attributable to non-controlling interests

1

2

2

9

14

1

2

2

(1)

4

Net income attributable to the

Company shareholders

$

600

$

770

$

846

$

632

$

2,848

$

901

$

929

$

853

$

1,174

$

3,857

 

Table 12 - Unaudited Cash Flow Information

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

YTD

Net cash provided by operating activities

$

913

$

504

$

2,042

$

1,328

$

4,787

$

799

$

1,264

$

1,131

$

1,641

$

4,835

Net cash used in investing activities

(185)

(245)

(266)

(317)

(1,013)

(408)

(389)

(438)

(367)

(1,602)

Net cash provided by (used in) financing activities

(140)

55

(234)

(1,826)

(2,145)

(234)

(526)

437

(1,266)

(1,589)

 

Table 13 - Unaudited Balance Sheet Information

March 31,

June 30,

September 30,

December 31,

March 31,

June 30,

September 30,

December 31,

(Millions of U.S. dollars)

2012

2012

2012

2012

2013

2013

2013

2013

Cash and cash equivalents

$

1,670

$

1,950

$

3,527

$

2,732

$

2,879

3,233

4,414

$

4,450

Restricted cash

9

14

19

5

6

2

4

10

Accounts receivable, net

4,209

3,888

4,083

3,904

3,878

4,023

4,041

4,030

Inventories

5,208

5,759

5,234

5,075

5,270

5,197

5,382

5,279

Prepaid expenses and other current assets

1,002

755

532

570

622

577

784

830

Total current assets

12,098

12,366

13,395

12,286

12,655

13,032

14,625

14,599

Property, plant and equipment, net

7,426

7,237

7,412

7,696

7,779

7,979

8,223

8,457

Investments and long-term receivables:

Investment in PO joint

ventures

415

411

405

397

401

409

423

421

Equity investments

1,605

1,521

1,581

1,583

1,607

1,622

1,615

1,629

Other investments and long-term receivables

76

70

361

383

421

231

164

64

Goodwill

595

576

585

591

582

588

598

605

Intangible assets, net

1,149

1,103

1,073

1,038

999

966

934

904

Other assets, net

245

261

292

246

233

221

229

619

Total assets

$

23,609

$

23,545

$

25,104

$

24,220

$

24,677

$

25,048

$

26,811

$

27,298

Current maturities of long-term debt

$

- -

$

- -

$

- -

$

1

$

1

1

1

$

1

Short-term debt

42

48

47

95

115

114

114

58

Accounts payable

3,545

3,004

3,297

3,285

3,217

3,324

3,241

3,572

Accrued liabilities

1,049

915

1,177

1,157

1,217

1,047

1,528

1,299

Deferred income taxes

310

277

304

558

557

550

494

580

Total current liabilities

4,946

4,244

4,825

5,096

5,107

5,036

5,378

5,510

Long-term debt

3,984

4,305

4,305

4,304

4,307

4,306

5,774

5,776

Other liabilities

2,281

2,208

2,153

2,327

2,306

2,325

2,278

1,839

Deferred income taxes

1,035

1,245

1,460

1,314

1,277

1,312

1,472

1,659

Stockholders' equity

11,310

11,492

12,312

11,139

11,641

12,032

11,874

12,478

Non-controlling interests

53

51

49

40

39

37

35

36

Total liabilities and stockholders' equity

$

23,609

$

23,545

$

25,104

$

24,220

$

24,677

$

25,048

$

26,811

$

27,298

 

SOURCE LyondellBasell Industries



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