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LyondellBasell Reports Record 2013 Earnings

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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



RELATED LINKS
http://www.lyondellbasell.com

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