LyondellBasell Reports Second-Quarter 2013 Results

Jul 26, 2013, 07:00 ET from LyondellBasell Industries

HOUSTON and LONDON, July 26, 2013 /PRNewswire/ --

Second-Quarter 2013 Highlights

  • Record diluted earnings per share of $1.60; $923 million income from continuing operations
  • EBITDA of $1,652 million; strong olefins results continue
  • Increased interim quarterly dividend by 25% to $0.50 per share
  • Repurchased approximately 5.4 million shares during the quarter
  • Credit rating upgraded by Moody's

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2013 of $1.60 diluted earnings per share or $923 million. Second quarter 2013 EBITDA was $1,652 million. The increase was primarily due to improved operating results in the olefins and polyolefins segments.

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

Table 1 - Earnings Summary

Three Months Ended

Six Months Ended

June 30,

2013 

March 31,

2013

June 30,

2012

June 30,

2013

June 30,

2012

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

Sales and other operating revenues

$11,103

$10,669

$11,248

$21,772

$22,982

Net income(a)

927

900

768

1,827

1,367

Income from continuing operations

923

906

768

1,829

1,362

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

Net income(b)

1.61

1.55

1.33

3.16

2.37

Income from continuing operations

1.60

1.56

1.33

3.16

2.36

Diluted share count (millions)

578

578

577

578

576

EBITDA(c)(d)

1,652

1,585

1,727

3,237

2,954

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

(b)  Includes diluted loss per share attributable to discontinued operations.

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

(d)  Includes a $71 million lower of cost or market inventory valuation adjustment in the second quarter and first six months of 2012.

Results also reflect the following charges and benefits:

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

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

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

2013

2013

2012

2013

2012

Pretax charges (benefits):

Charges and premiums related to

repayment of debt

$ - -

$ - -

$329

$ - -

$329

Reorganization items

- -

- -

- -

- -

(5)

Impairments

- -

- -

- -

- -

22

Warrants - mark to market

- -

- -

- -

- -

10

Insurance settlement

- -

- -

(100)

- -

(100)

Lower of cost or market inventory adjustment

- -

- -

71

- -

71

Total pretax charges (benefits)

- -

- -

300

- -

327

Provision for (benefit from) income tax related

to these items

- -

- -

(109)

- -

(114)

After-tax effect of net charges (credits)

$ - -

$ - -

$191

$ - -

$213

Effect on diluted earnings per share

$ 0

$ 0

($0.33)

$ 0

($0.36)

"Overall, it was a strong quarter. We achieved record quarterly earnings and advanced our plans for the future on several fronts. The back-to-basics strategy that we put in place three years ago continues to yield strong results and returns for our shareholders. This was particularly evident in both our U.S. and European olefins businesses. In both regions, our plants ran well above average industry operating rates while also utilizing additional advantaged natural gas liquid feedstocks," said Jim Gallogly, LyondellBasell Chief Executive Officer. 

"We continue to invest in our assets, completing turnarounds at one propylene oxide plant in the U.S. and another in Europe and concluding the butadiene expansion at Wesseling, Germany during the second quarter. Our well positioned assets and strong operations enabled us to increase our dividend and initiate a share repurchase program. During the latter part of the quarter, we purchased almost one percent of our outstanding shares and increased our dividend by 25 percent to 50 cents per share," Gallogly said.

OUTLOOK

"Industry conditions in the U.S. are relatively unchanged from the first half of the year. Our integrated assets and diversified portfolio of U.S. olefins and Intermediates and Derivatives businesses remain very profitable. In Europe, the market continues to seek equilibrium in a slow economy, and we have seen rising naphtha prices. Refining has been a challenging industry and continues to evolve. We believe that these market conditions coupled with an imbalance within renewable fuel requirements will continue to pressure our near term results. Our path and strategy remain unchanged, and LyondellBasell is well-positioned to continue generating strong results and rewarding our shareholders," Gallogly said.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell operates in five business segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – 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

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$872

$821

$700

$1,693

$1,219

EBITDA

951

898

781

1,849

1,376

Three months ended June 30, 2013 versus three months ended March 31, 2013  – The segment achieved record EBITDA results in the second quarter of 2013. EBITDA increased $53 million versus the first quarter 2013. Compared to the prior period, olefins results decreased approximately $30 million primarily due to lower margins, driven by a 2 cents per pound lower average ethylene price and lower co-product values, which more than offset higher ethylene sales volumes. Combined polyolefin results increased by approximately $70 million from the first quarter 2013 driven by higher margins and a 13 percent increase in polypropylene sales volumes. Joint venture equity income increased by $4 million.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA increased $170 million in the second quarter 2013 versus the second quarter 2012. Excluding the impact of a $71 million lower of cost or market adjustment and a $29 million insurance settlement in the second quarter 2012, EBITDA increased $128 million. Olefins results increased approximately $95 million compared to the prior year period as a result of higher olefins volumes. Olefins production volumes were higher compared to the second quarter 2012, which was impacted by a planned maintenance turnaround. The price of ethylene increased by approximately 1 cent per pound compared to the prior year period. Polyethylene results improved by approximately $10 million as sales volumes increased 5 percent versus the prior year period. Polypropylene results declined by approximately $30 million due to a decline in spread of 2 cents per pound. Joint venture equity income increased by $4 million.

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

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$189

$93

$203

$282

$206

EBITDA

295

225

305

520

420

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA increased $70 million in the second quarter 2013 versus the first quarter 2013. Olefins results improved approximately $50 million primarily due to olefin margins expansion related to increased liquefied petroleum gas (LPG) feedstock cracking, naphtha price volatility, and increased production rates. Combined polyolefin results increased by approximately $10 million, driven by an approximately 10 percent increase in sales volumes. Polypropylene compounds and polybutene-1 results increased by approximately $30 million as a result of margin expansion, primarily due to lower raw materials prices and higher sales volume. Equity income from joint ventures decreased by $23 million from the first quarter 2013.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA declined $10 million versus the second quarter 2012. Olefins results declined by approximately $65 million, primarily as a result of lower butadiene margins. Combined polyolefin results increased by approximately $15 million primarily as a result of a 22 percent increase in sales volumes in the second quarter 2013. Polypropylene compounds and polybutene-1 results increased by approximately $25 million from the prior year period as a result of higher polypropylene compounds margins. Equity income from joint ventures was relatively unchanged from the second quarter 2012.

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

Table 5 - I&D Financial Overview

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$285

$323

$390

$608

$760

EBITDA

338

373

432

711

849

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA decreased $35 million versus the first quarter 2013.  Plant turnarounds negatively impacted segment results by approximately $30 million. Including turnaround impacts, results for PO and PO derivatives decreased by approximately $50 million. Competitive pressure reduced butanediol margins while volumes declined seasonally on lower sales into aircraft deicing. Intermediate chemicals results were relatively unchanged as higher acetyls and ethylene glycol volumes offset lower results in styrene and C4 chemicals. Oxyfuels results improved by approximately $15 million due to higher second quarter 2013 volumes. Equity income from joint ventures was relatively unchanged.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA decreased $94 million compared to the second quarter 2012. Excluding the second quarter 2012 benefit of an $18 million insurance settlement, EBITDA decreased $76 million. Results for PO and PO derivatives declined by approximately $70 million primarily due to higher costs related to 2013 turnarounds and lower butanediol margins. Merchant PO volumes and margins were relatively unchanged. Intermediate chemicals results were relatively unchanged as higher acetyls and ethylene glycol volumes were offset by lower C4 chemical volumes due to plant turnarounds. Oxyfuels results declined by approximately $20 million as a result of lower margins which more than offset higher sales volumes in the 2013 period. Equity income from joint ventures increased by $10 million from the second quarter in 2012. 

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

Table 6 - Refining Financial Overview

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income (loss)

($16)

($17)

$124

($33)

$134

EBITDA

20

20

160

40

208

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA was relatively unchanged versus the first quarter 2013. Our refinery operated at 265,000 barrels per day, up 92,000 barrels per day from the prior quarter when the refinery completed a scheduled maintenance turnaround. The volume improvement was offset by the increased cost of renewable fuel standard requirements and a decline in margins in the second quarter 2013. Compared to the prior quarter, the Maya 2-1-1 benchmark crack spread declined by $2.48 per barrel, averaging $18.49 per barrel. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards increased by $22 million versus the first quarter 2013.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA decreased $140 million versus the second quarter 2012. Excluding the second quarter 2012 benefit of a $53 million insurance settlement, EBITDA decreased by $87 million. Our refinery operated at 265,000 barrels per day, down 2,000 barrels per day from the prior year period. Compared to the second quarter 2012, the decline in Maya 2-1-1 benchmark spread of $4.67 per barrel and higher natural gas cost negatively impacted results. The cost of RINs increased by $38 million compared to the same quarter last year.

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

Table 7 - Technology Financial Overview

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

Millions of U.S. dollars

2013

2013

2012

2013

2012

Operating income

$39

$50

$30

$89

$68

EBITDA

59

66

50

125

106

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA decreased by $7 million primarily as a result of lower licensing revenues.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA increased by $9 million led by higher catalyst and licensing revenues.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology related expenditures, were $387 million in the second quarter 2013. Our cash balance was $3.2 billion at June 30, 2013. We repurchased 5.4 million of our outstanding ordinary shares and paid $261 million in dividends during the second quarter of 2013. In early third quarter 2013, we issued 10-year and 30-year bonds with an aggregate principal amount of $1.5 billion for which we received proceeds of approximately $1.45 billion after deducting underwriting discounts and offering expenses.

CONFERENCE CALL

LyondellBasell will host a conference call July 26 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. For international numbers, go to www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 1231245.

A replay of the call will be available from 2 p.m. ET July 26 until Aug. 26 at 11 p.m. ET.  The replay dial-in numbers are 866-460-9739 (U.S.) and +1 203-369-1347 (international). The pass code for each is 2323.

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

ABOUT LYONDELLBASELL

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

FORWARD-LOOKING STATEMENTS

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

NON-GAAP MEASURES

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

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

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

OTHER FINANCIAL MEASURE PRESENTATION NOTES

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

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

Total

Q1

Q2

YTD

Sales and other operating revenues:

Olefins & Polyolefins - Americas

$

3,349

$

3,283

$

3,217

$

3,085

$

12,934

$

3,244

$

3,251

$

6,495

Olefins & Polyolefins - Europe, Asia, International

3,898

3,575

3,448

3,600

14,521

3,800

3,708

7,508

Intermediates & Derivatives

2,485

2,285

2,637

2,251

9,658

2,282

2,217

4,499

Refining

3,203

3,496

3,272

3,320

13,291

2,468

3,077

5,545

Technology

119

115

124

140

498

134

132

266

Other

(1,320)

(1,506)

(1,425)

(1,299)

(5,550)

(1,259)

(1,282)

(2,541)

Continuing Operations

$

11,734

$

11,248

$

11,273

$

11,097

$

45,352

$

10,669

$

11,103

$

21,772

Operating income (loss):

Olefins & Polyolefins - Americas

$

519

$

700

$

738

$

693

$

2,650

$

821

$

872

$

1,693

Olefins & Polyolefins - Europe, Asia, International

3

203

15

(94)

127

93

189

282

Intermediates & Derivatives

370

390

424

246

1,430

323

285

608

Refining

10

124

114

86

334

(17)

(16)

(33)

Technology

38

30

31

23

122

50

39

89

Other

- -

2

6

5

13

(3)

(5)

(8)

Continuing Operations

$

940

$

1,449

$

1,328

$

959

$

4,676

$

1,267

$

1,364

$

2,631

Depreciation and amortization:

Olefins & Polyolefins - Americas

$

65

$

71

$

69

$

76

$

281

$

75

$

69

$

144

Olefins & Polyolefins - Europe, Asia, International

69

69

63

84

285

77

76

153

Intermediates & Derivatives

47

48

49

50

194

48

50

98

Refining

38

37

36

37

148

36

37

73

Technology

18

19

18

18

73

17

20

37

Other

- -

- -

1

1

2

- -

2

2

Continuing Operations

$

237

$

244

$

236

$

266

$

983

$

253

$

254

$

507

EBITDA: (a)

Olefins & Polyolefins - Americas

$

595

$

781

$

814

$

778

$

2,968

$

898

$

951

$

1,849

Olefins & Polyolefins - Europe, Asia, International

115

305

102

26

548

225

295

520

Intermediates & Derivatives

417

432

475

297

1,621

373

338

711

Refining

48

160

150

123

481

20

20

40

Technology

56

50

49

42

197

66

59

125

Other

(4)

(1)

(1)

(1)

(7)

3

(11)

(8)

Continuing Operations

$

1,227

$

1,727

$

1,589

$

1,265

$

5,808

$

1,585

$

1,652

$

3,237

Capital, turnarounds and IT deferred spending:

Olefins & Polyolefins - Americas

$

102

$

135

$

126

$

105

$

468

$

122

$

122

$

244

Olefins & Polyolefins - Europe, Asia, International

60

39

60

95

254

63

46

109

Intermediates & Derivatives

18

24

44

73

159

106

141

247

Refining

38

27

24

47

136

93

67

160

Technology

9

8

12

14

43

7

6

13

Other

2

3

1

(1)

5

- -

5

5

Total 

229

236

267

333

1,065

391

387

778

Deferred charges included above

(1)

(3)

(1)

- -

(5)

- -

- -

- -

Continuing Operations

$

228

$

233

$

266

$

333

$

1,060

$

391

$

387

$

778

(a) See Table 9 for EBITDA calculation. 

 

Table 9 - EBITDA Calculation

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

YTD

Net income attributable to the Company shareholders

$

600

$

770

$

846

$

632

$

2,848

$

901

$

929

$

1,830

Net loss attributable to non-controlling interests

(1)

(2)

(2)

(9)

(14)

(1)

(2)

(3)

(Income) loss from discontinued operations, net of tax

(5)

- -

7

22

24

6

(4)

2

Income from continuing operations

594

768

851

645

2,858

906

923

1,829

Provision for income taxes

301

306

435

285

1,327

357

410

767

Depreciation and amortization

237

244

236

266

983

253

254

507

Interest expense, net

95

409

67

69

640

69

65

134

EBITDA

$

1,227

$

1,727

$

1,589

$

1,265

$

5,808

$

1,585

$

1,652

$

3,237

 

Table 10 - Selected Segment Operating Information

2012

2013

Q1

Q2

Q3

Q4

Total

Q1

Q2

YTD

Olefins and Polyolefins - Americas

Volumes (million pounds)

Ethylene produced

1,988

2,134

2,401

2,449

8,972

2,337

2,412

4,749

Propylene produced

533

615

633

582

2,363

624

529

1,153

Polyethylene sold

1,371

1,327

1,430

1,438

5,566

1,396

1,389

2,785

Polypropylene sold

649

634

639

576

2,498

565

637

1,202

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

94.3

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

119.9

108.2

109.4

109.5

111.7

113.9

104.6

109.1

Natural gas (USD per million BTUs)

2.7

2.3

2.9

3.5

2.9

3.5

4.2

3.9

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

28.5

18.4

19.7

18.6

21.2

13.8

15.7

14.7

U.S. ethylene (cents/pound)

54.9

46.9

45.4

45.7

48.3

48.0

46.3

47.2

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

67.0

63.0

59.3

59.7

62.3

66.7

68.7

67.7

U.S. propylene (cents/pound)

68.7

65.7

51.3

56.0

60.4

75.0

63.3

69.2

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

81.2

76.7

63.8

68.5

72.5

88.0

76.2

82.1

Olefins and Polyolefins - Europe, Asia, International

Volumes (million pounds)

Ethylene produced

945

930

802

833

3,510

912

991

1,903

Propylene produced

557

561

492

502

2,112

577

610

1,187

Polyethylene sold

1,320

1,130

1,243

1,250

4,943

1,206

1,314

2,520

Polypropylene sold

1,614

1,433

1,727

1,623

6,397

1,657

1,821

3,478

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

32.7

Western Europe ethylene

55.1

58.6

53.1

58.1

56.2

58.6

54.4

56.5

Western Europe polyethylene [high density]

58.6

60.9

57.2

61.0

59.4

61.2

56.8

59.0

Western Europe propylene

50.1

54.1

47.6

50.8

50.7

50.6

47.9

49.3

Western Europe polypropylene [homopolymer]

57.9

60.4

56.1

58.7

58.3

59.1

56.1

57.6

Intermediates and Derivatives

Volumes (million pounds)

Propylene oxide and derivatives

774

743

762

663

2,942

683

665

1,348

Ethylene oxide and derivatives

312

275

311

260

1,158

260

277

537

Styrene monomer

704

678

791

782

2,955

703

589

1,292

Acetyls

489

444

499

406

1,838

431

470

901

TBA Intermediates

462

448

441

399

1,750

434

357

791

Volumes (million gallons)

MTBE/ETBE

205

189

256

199

849

185

235

420

Benchmark Market Margins  (cents per gallon)

MTBE - Northwest Europe

125.1

122.0

149.9

76.3

118.2

104.9

88.4

96.6

Refining

Volumes (thousands of barrels per day)

Heavy crude oil processing rate

259

267

240

255

255

173

265

219

Benchmark Market Margins

Light crude oil - 2-1-1

9.34

14.04

14.71

7.91

11.50

9.80

11.54

10.70

Light crude oil - Maya differential

10.81

9.12

11.94

16.45

12.05

11.17

6.95

8.95

Source:  LYB and third party consultants

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

 

Table 11 - Unaudited Income Statement Information

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

YTD

Sales and other operating revenues

$

11,734

$

11,248

$

11,273

$

11,097

$

45,352

$

10,669

$

11,103

$

21,772

Cost of sales

10,532

9,561

9,670

9,832

39,595

9,153

9,496

18,649

Selling, general and administrative expenses

223

201

236

249

909

213

208

421

Research and development expenses

39

37

39

57

172

36

35

71

Operating income

940

1,449

1,328

959

4,676

1,267

1,364

2,631

Income from equity investments

46

27

32

38

143

59

43

102

Interest expense, net

(95)

(409)

(67)

(69)

(640)

(69)

(65)

(134)

Other income (expense), net

4

7

(7)

2

6

6

(9)

(3)

Income before taxes

895

1,074

1,286

930

4,185

1,263

1,333

2,596

Provision for income taxes

301

306

435

285

1,327

357

410

767

Income from continuing operations

594

768

851

645

2,858

906

923

1,829

Income (loss) from discontinued operations, net of tax

5

- -

(7)

(22)

(24)

(6)

4

(2)

Net income

599

768

844

623

2,834

900

927

1,827

Net loss attributable to non-controlling interests

1

2

2

9

14

1

2

3

Net income attributable to the Company shareholders

$

600

$

770

$

846

$

632

$

2,848

$

901

$

929

$

1,830

 

Table 12 - Unaudited Cash Flow Information

2012

2013

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

YTD

Net cash provided by operating activities

$

913

$

504

$

2,042

$

1,328

$

4,787

$

799

$

1,264

$

2,063

Net cash used in investing activities

(185)

(245)

(266)

(317)

(1,013)

(408)

(389)

(797)

Net cash provided by (used in) financing activities

(140)

55

(234)

(1,826)

(2,145)

(234)

(526)

(760)

 

Table 13 - Unaudited Balance Sheet Information

March 31,

June 30,

September 30,

December 31,

March 31,

June 30,

(Millions of U.S. dollars)

2012

2012

2012

2012

2013

2013

Cash and cash equivalents

$

1,670

$

1,950

$

3,527

$

2,732

$

2,879

$

3,233

Restricted cash

9

14

19

5

6

2

Accounts receivable, net

4,209

3,888

4,083

3,904

3,878

4,023

Inventories

5,208

5,759

5,234

5,075

5,270

5,197

Prepaid expenses and other current assets

1,002

755

532

570

622

577

Total current assets

12,098

12,366

13,395

12,286

12,655

13,032

Property, plant and equipment, net

7,426

7,237

7,412

7,696

7,779

7,979

Investments and long-term receivables:

Investment in PO joint ventures

415

411

405

397

401

409

Equity investments

1,605

1,521

1,581

1,583

1,607

1,622

Other investments and long-term receivables

76

70

361

383

421

231

Goodwill

595

576

585

591

582

588

Intangible assets, net

1,149

1,103

1,073

1,038

999

966

Other assets, net

245

261

292

246

233

221

Total assets

$

23,609

$

23,545

$

25,104

$

24,220

$

24,677

$

25,048

Current maturities of long-term debt

$

- -

$

- -

$

- -

$

1

$

1

$

1

Short-term debt

42

48

47

95

115

114

Accounts payable

3,545

3,004

3,297

3,285

3,217

3,324

Accrued liabilities

1,049

915

1,177

1,157

1,217

1,047

Deferred income taxes

310

277

304

558

557

550

Total current liabilities

4,946

4,244

4,825

5,096

5,107

5,036

Long-term debt

3,984

4,305

4,305

4,304

4,307

4,306

Other liabilities

2,281

2,208

2,153

2,327

2,306

2,325

Deferred income taxes

1,035

1,245

1,460

1,314

1,277

1,312

Stockholders' equity

11,310

11,492

12,312

11,139

11,641

12,032

Non-controlling interests

53

51

49

40

39

37

Total liabilities and stockholders' equity

$

23,609

$

23,545

$

25,104

$

24,220

$

24,677

$

25,048

SOURCE LyondellBasell Industries



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