LyondellBasell Reports Second-Quarter 2014 Results

HOUSTON and LONDON, July 25, 2014 /PRNewswire/ --

Second-Quarter 2014 Highlights

  • Record quarterly EBITDA of $1.94 billion
  • Record diluted earnings per share of $2.22; income from continuing operations of $1.17 billion
  • Solid results in all segments, with O&P Americas segment approaching EBITDA of $1 billion
  • Completed initial 10% share repurchase and initiated purchases under second 10% authorization;  repurchased approximately 19 million shares during the quarter

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2014 of $2.22 diluted earnings per share, or $1.17 billion.  Second quarter 2014 EBITDA was $1.94 billion.  The increase from the first quarter 2014 was primarily due to Olefins and Polyolefins – Americas segment results.

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

Table 1 - Earnings Summary









Three Months Ended

Six Months Ended



June 30,

March 31,

June 30,

June 30,


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

2014

2014

2013

2014

2013


Sales and other operating revenues

$12,117

$11,135

$11,103

$23,252

$21,772


Net income(a)

1,176

944

927

2,120

1,827


Income from continuing operations(b)

1,173

943

923

2,116

1,829


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








Net income(c)

2.23

1.72

1.61

3.94

3.16



Income from continuing operations(b)

2.22

1.72

1.60

3.93

3.16


Diluted share count (millions)

527

548

578

537

578


EBITDA(d)

1,941

1,668

1,652

3,609

3,237










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


(b)  Please see Table 11 for charges and benefits to income from continuing operations.


(c)  Includes diluted earnings per share attributable to discontinued operations.


(d)  See the end of this release for an explanation of the Company's use of EBITDA and Table 8 for reconciliations of EBITDA to income


from continuing operations.


"We had record earnings this quarter of $2.22 per share, while our EBITDA approached $2 billion.  Importantly, every segment contributed to this achievement.  Of particular note was the strength in our Olefins and Polyolefins- Americas segment which generated nearly $1 billion of EBITDA even while we were performing significant scheduled maintenance at our La Porte ethylene site.  In addition to the strong quarterly earnings, we repurchased approximately 19 million of our shares during the second quarter, completing the initial 10 percent share repurchase authorization.  We also initiated repurchases under the second 10 percent authorization," said Jim Gallogly, LyondellBasell Chief Executive Officer. 

"As encouraging as these results are, we did not fully deliver on our reliability expectations, and the quarterly earnings could have been better.  Specifically, we were late in completing our La Porte ethylene turnaround in part due to a mechanical issue with a compressor.  Both supplier upsets and mechanical issues impacted our Intermediates and Derivatives business as well.  Despite these temporary setbacks, our commitment to Operational Excellence continues to be the foundation of our success," Gallogly said.

"Industry fundamentals remain strong, and we continue to execute on our investment program.  During the third quarter we expect to begin production from the 800 million pound per year La Porte ethylene expansion.  This is the first of three ethylene expansions and continues to put us well ahead of new greenfield plants pursued by others in the industry," Gallogly added.

OUTLOOK
"During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment.  U.S. oil, natural gas, and natural gas liquids production remain strong.  Together these support margins in our Olefins and Polyolefins – Americas, Intermediates and Derivatives, and Refining segments.  However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant," Gallogly noted.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.

Olefins and Polyolefins - Americas (O&P-Americas) – The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins. 








Table 2 - O&P–Americas Financial Overview






Three Months Ended

Six Months Ended




June 30,

March 31,

June 30,

June 30,


Millions of U.S. dollars

2014

2014

2013

2014

2013


Operating income

$898

$656

$872

$1,554

$1,693


EBITDA

978

736

951

1,714

1,849










Three months ended June 30, 2014 versus three months ended March 31, 2014 – The segment achieved record EBITDA results in the second quarter of 2014.  EBITDA increased $242 million versus the first quarter 2014.  Compared to the prior period, olefins results increased approximately $220 million.  The first quarter was negatively impacted by ethylene purchases and inventory build in preparation for the second quarter La Porte plant turnaround.  The second quarter was also negatively impacted, but to a lesser extent, by the delayed restart of the La Porte olefin plant and the subsequent purchase of ethylene.  This impacted results by approximately $50 million. Olefins benefited in the second quarter from lower NGL costs and improved co-product values.  Combined polyolefin results increased by approximately $20 million from the first quarter 2014 driven by higher polyethylene margins.  The ethylene to polyethylene price spread increased 2 cents per pound. Joint venture equity income increased by $2 million.

Three months ended June 30, 2014 versus three months ended June 30, 2013 – EBITDA increased $27 million versus the second quarter 2013. Olefins results declined approximately $130 million compared to the prior year period.  Olefins sales and production volumes declined.  However, margins benefited from lower NGL costs and higher co-product values.  The price of ethylene decreased by approximately 2 cents per pound compared to the prior year period. Polyethylene results increased by approximately $150 million as the ethylene to polyethylene price spread improved by 10 cents per pound and sales volumes increased approximately 4 percent versus the prior year period. Polypropylene results increased by approximately $15 million due to slightly higher margins. Joint venture equity income decreased by $2 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 3 - O&P–EAI Financial Overview






Three Months Ended

Six Months Ended




June 30,

March 31,

June 30,

June 30,


Millions of U.S. dollars

2014

2014

2013

2014

2013


Operating income

$190

$225

$189

$415

$282


EBITDA

319

356

295

675

520










Three months ended June 30, 2014 versus three months ended March 31, 2014 – EBITDA decreased $37 million versus the first quarter 2014.  Excluding the benefits of a $52 million environmental settlement in the first quarter, EBITDA increased by $15 million.  Olefins results increased modestly.  Naphtha cost increases and a decline in the price of ethylene of approximately 2 cents per pound were more than offset by increased co-product prices and from cracking more advantaged feedstocks.  Approximately 55 percent of our ethylene production was sourced from advantaged raw materials.  Combined polyolefin results increased from higher volumes. Combined polypropylene compounds and polybutene-1 results were unchanged. Equity income from joint ventures increased by $9 million from the first quarter 2014.

Three months ended June 30, 2014 versus three months ended June 30, 2013 – EBITDA increased $24 million versus the second quarter 2013.  Olefins results declined by approximately $20 million as a result of margins that were lower by approximately 3 cents per pound.   This was partially mitigated by higher operating rates and from higher butadiene volumes following a 2013 expansion project.  Combined polyolefin results increased primarily as a result of higher polyethylene and polypropylene margins of approximately 1 cent per pound. Polypropylene compounds and polybutene-1 results decreased by approximately $10 million from the prior year period as a result of lower polypropylene compound margins. Equity income from joint ventures increased $32 million from the second quarter 2013.

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

Table 4 - I&D Financial Overview








Three Months Ended

Six Months Ended



June 30,

March 31,

June 30,

June 30,


Millions of U.S. dollars

2014

2014

2013

2014

2013


Operating income

$375

$316

$285

$691

$608


EBITDA

430

375

338

805

711









Three months ended June 30, 2014 versus three months ended March 31, 2014 – EBITDA increased $55 million versus the first quarter 2014. Results for PO and PO derivatives decreased by approximately $20 million.  Seasonally lower sales of propylene glycol sold into aircraft deicing were offset by higher sales of propylene oxide.  Solvent margins declined.  Intermediate chemicals results increased by approximately $10 million as styrene and ethylene glycol volumes improved.  Additionally, acetic acid, vinyl acetate, and styrene margins improved but lower margins from methanol and ethylene glycol pricing partially offset the benefit.  Oxyfuels results improved by approximately $70 million due to seasonal increases in both volume and margin.  Equity income from joint ventures decreased by $4 million.

Three months ended June 30, 2014 versus three months ended June 30, 2013 – EBITDA increased $92 million compared to the second quarter 2013. Results for PO and PO derivatives increased by approximately $25 million primarily due to higher volumes. Intermediate chemicals results were higher by approximately $60 million due to higher methanol and styrene volumes, and higher methanol and vinyl acetate margins.  Oxyfuels results increased by approximately $10 million. Equity income from joint ventures decreased by $5 million from the second quarter in 2013.

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

Table 5 - Refining Financial Overview







Three Months Ended

Six Months Ended



June 30,

March 31,

June 30,

June 30,


Millions of U.S. dollars

2014

2014

2013

2014

2013


Operating income (loss)

$95

$86

($16)

$181

($33)


EBITDA

137

129

20

266

40









Three months ended June 30, 2014 versus three months ended March 31, 2014 – EBITDA increased $8 million versus the first quarter 2014. The refinery processed 257,000 barrels per day, up 10,000 barrels per day from the prior quarter. Compared to the prior quarter, the Maya 2-1-1 benchmark crack spread declined by $1.25 per barrel, averaging $27.01 per barrel. The corresponding Houston refinery spread was relatively unchanged. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards was relatively unchanged versus the first quarter 2014.

Three months ended June 30, 2014 versus three months ended June 30, 2013 – EBITDA increased $117 million versus the second quarter 2013. The refinery processed 257,000 barrels per day, down 8,000 barrels per day from the prior year period. Compared to the second quarter 2013, the Maya 2-1-1 benchmark spread increased $5.43 per barrel, and we benefited from improved yields and higher margins on secondary products. The cost of RINs decreased by approximately $20 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 6 - Technology Financial Overview







Three Months Ended

Six Months Ended




June 30,

March 31,

June 30,

June 30,


Millions of U.S. dollars

2014

2014

2013

2014

2013


Operating income

$56

$60

$39

$116

$89


EBITDA

71

76

59

147

125










Three months ended June 30, 2014 versus three months ended March 31, 2014 – EBITDA decreased by $5 million.

Three months ended June 30, 2014 versus three months ended June 30, 2013 – EBITDA increased by $12 million from higher catalyst and licensing results.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $415 million in the second quarter 2014.  Our cash and short-term securities balance was $3.5 billion at June 30, 2014. We repurchased approximately 19 million of our outstanding ordinary shares and paid $370 million in dividends during the second quarter of 2014.  There were 515 million common shares outstanding as of June 30th.

CONFERENCE CALL
LyondellBasell will host a conference call July 25 at 11 a.m. ET.  Participants on the call will include Chief Executive Officer Jim Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike

The toll-free dial-in number in the U.S. is 888-677-1826. 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 25 until Aug. 25 at 11 p.m. ET.  The replay dial-in numbers are 800-839-1171 (U.S.) and +1 203-369-3030 (international). The pass code for each is 3675.

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

ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. 

FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt.  Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2013, which can be found at www.lyondellbasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

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

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

Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 8 at the end of this release.

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

 



Table 7 - Reconciliation of Segment Information to Consolidated Financial Information


































2013


2014


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


YTD


Sales and other operating revenues:


























Olefins & Polyolefins - Americas

$

3,244


$

3,251


$

3,315


$

3,279


$

13,089


$

3,357


$

3,462


$

6,819



Olefins & Polyolefins - Europe, Asia, International


3,800



3,708



3,594



3,583



14,685



3,778



4,069



7,847



Intermediates & Derivatives


2,282



2,217



2,452



2,521



9,472



2,429



2,706



5,135



Refining


2,468



3,077



3,177



2,976



11,698



2,756



3,250



6,006



Technology


134



132



124



142



532



136



144



280



Other


(1,259)



(1,282)



(1,510)



(1,363)



(5,414)



(1,321)



(1,514)



(2,835)




Continuing Operations

$

10,669


$

11,103


$

11,152


$

11,138


$

44,062


$

11,135


$

12,117


$

23,252


Operating income (loss):


























Olefins & Polyolefins - Americas

$

821


$

872


$

759


$

801


$

3,253


$

656


$

898


$

1,554



Olefins & Polyolefins - Europe, Asia, International


93



189



78



17



377



225



190



415



Intermediates & Derivatives


323



285



371



321



1,300



316



375



691



Refining


(17)



(16)



(37)



92



22



86



95



181



Technology


50



39



35



33



157



60



56



116



Other


(3)



(5)



1



- -



(7)



(3)



(1)



(4)




Continuing Operations

$

1,267


$

1,364


$

1,207


$

1,264


$

5,102


$

1,340


$

1,613


$

2,953


Depreciation and amortization:


























Olefins & Polyolefins - Americas

$

75


$

69


$

73


$

76


$

293


$

73


$

74


$

147



Olefins & Polyolefins - Europe, Asia, International


77



76



78



56



287



70



67



137



Intermediates & Derivatives


48



50



50



56



204



55



56



111



Refining


36



37



45



42



160



42



42



84



Technology


17



20



16



22



75



16



15



31



Other


- -



2



- -



- -



2



- -



- -



- -




Continuing Operations

$

253


$

254


$

262


$

252


$

1,021


$

256


$

254


$

510


EBITDA: (a)


























Olefins & Polyolefins - Americas

$

898


$

951


$

841


$

883


$

3,573


$

736


$

978


$

1,714



Olefins & Polyolefins - Europe, Asia, International


225



295



204



115



839



356



319



675



Intermediates & Derivatives


373



338



427



354



1,492



375



430



805



Refining


20



20



8



134



182



129



137



266



Technology


66



59



52



55



232



76



71



147



Other


3



(11)



(1)



2



(7)



(4)



6



2




Continuing Operations

$

1,585


$

1,652


$

1,531


$

1,543


$

6,311


$

1,668


$

1,941


$

3,609


Capital, turnarounds and IT deferred spending:


























Olefins & Polyolefins - Americas

$

122


$

122


$

218


$

183


$

645


$

231


$

306


$

537



Olefins & Polyolefins - Europe, Asia, International


63



46



44



76



229



33



27



60



Intermediates & Derivatives


106



141



119



77



443



45



52



97



Refining


93



67



36



13



209



32



20



52



Technology


7



6



7



10



30



2



6



8



Other


- -



5



(1)



1



5



- -



4



4




Total 


391



387



423



360



1,561



343



415



758



Deferred charges included above


- -



- -



- -



- -



- -



- -



- -



- -




Continuing Operations

$

391


$

387


$

423


$

360


$

1,561


$

343


$

415


$

758

























































(a) See Table 8 for EBITDA calculation. 

 


Table 8 - EBITDA Calculation


































2013


2014


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


YTD



























Net income attributable to the Company shareholders

$

901


$

929


$

853


$

1,174


$

3,857


$

945


$

1,178


$

2,123


Net income (loss) attributable to non-controlling interests


(1)



(2)



(2)



1



(4)



(1)



(2)



(3)


(Income) loss from discontinued operations, net of tax


6



(4)



3



2



7



(1)



(3)



(4)


Income from continuing operations


906



923



854



1,177



3,860



943



1,173



2,116



Provision for income taxes


357



410



339



30



1,136



383



425



808



Depreciation and amortization


253



254



262



252



1,021



256



254



510



Interest expense, net


69



65



76



84



294



86



89



175


EBITDA

$

1,585


$

1,652


$

1,531


$

1,543


$

6,311


$

1,668


$

1,941


$

3,609

























































 


Table 9 - Selected Segment Operating Information




























2013


2014







Q1


Q2


Q3


Q4


Total


Q1


Q2


YTD


Olefins and Polyolefins - Americas



















Volumes (million pounds)




















Ethylene produced


2,337


2,412


2,111


2,156


9,016


1,979


1,721


3,700




Propylene produced


624


529


652


646


2,451


611


648


1,259




Polyethylene sold


1,396


1,389


1,378


1,409


5,572


1,406


1,451


2,857




Polypropylene sold


565


637


669


642


2,513


614


632


1,246



Benchmark Market Prices




















West Texas Intermediate crude oil (USD per barrel)


94.43


94.17


105.80


97.60


98.06


98.61


102.99


100.84




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


113.86


104.64


109.94


101.12


107.31


104.36


105.55


104.97




Natural gas (USD per million BTUs)


3.45


4.22


3.68


3.70


3.78


5.01


4.74


4.87




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


13.8


15.7


16.6


18.6


16.2


20.0


17.1


18.6




U.S. ethylene (cents/pound)


48.0


46.3


45.8


46.5


46.7


48.3


47.2


47.8




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


66.7


68.7


71.7


75.0


70.5


76.3


77.0


76.7




U.S. propylene (cents/pound)


75.0


63.3


68.3


68.2


68.7


73.3


69.7


71.5




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


88.0


76.2


82.3


82.2


82.2


88.3


84.7


86.5























Olefins and Polyolefins - Europe, Asia, International



















Volumes (million pounds)




















Ethylene produced


912


991


984


930


3,817


989


1,024


2,013




Propylene produced


577


610


597


568


2,352


582


617


1,199




Polyethylene sold


1,206


1,314


1,212


1,167


4,899


1,275


1,363


2,638




Polypropylene sold


1,657


1,821


1,612


1,531


6,621


1,509


1,707


3,216



Benchmark Market Prices (€0.01 per pound)




















Western Europe weighted average cost of ethylene production


36.2


29.3


34.9


38.5


34.7


32.9


34.3


33.6




Western Europe ethylene


58.6


54.4


55.0


55.1


55.8


54.7


52.8


53.8




Western Europe polyethylene [high density]


61.2


56.8


57.9


57.1


58.2


56.1


54.8


55.5




Western Europe propylene


50.6


47.9


49.6


49.9


49.5


51.3


52.2


51.7




Western Europe polypropylene [homopolymer]


59.1


56.1


58.1


58.2


57.9


59.9


61.3


60.6






















Intermediates and Derivatives



















Volumes (million pounds)




















Propylene oxide and derivatives


683


665


665


729


2,742


772


781


1,553




Ethylene oxide and derivatives


260


277


294


346


1,177


262


319


581




Styrene monomer


703


589


756


832


2,880


683


870


1,553




Acetyls


431


470


506


510


1,917


683


592


1,275




TBA Intermediates


434


357


425


442


1,658


416


391


807



Volumes (million gallons)




















MTBE/ETBE


185


235


241


222


883


188


266


454



Benchmark Market Margins  (cents per gallon)




















MTBE - Northwest Europe


104.9


88.4


86.8


37.8


79.1


63.4


90.7


76.8





















Refining



















Volumes (thousands of barrels per day)




















Heavy crude oil processing rate


173


265


250


239


232


247


257


252



Benchmark Market Margins




















Light crude oil - 2-1-1


11.53


14.63


12.63


12.67


12.89


13.18


17.29


15.27




Light crude oil - Maya differential


11.17


6.95


10.59


11.65


10.05


15.08


9.72


12.41










































Source:  LYB and third party consultants

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






















 


Table 10 - Unaudited Income Statement Information


































2013


2014


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


YTD



























Sales and other operating revenues

$

10,669


$

11,103


$

11,152


$

11,138


$

44,062


$

11,135


$

12,117


$

23,252


Cost of sales


9,153



9,496



9,690



9,601



37,940



9,577



10,255



19,832


Selling, general and administrative expenses


213



208



220



229



870



186



215



401


Research and development expenses


36



35



35



44



150



32



34



66



Operating income


1,267



1,364



1,207



1,264



5,102



1,340



1,613



2,953


Income from equity investments


59



43



61



40



203



61



68



129


Interest expense, net


(69)



(65)



(76)



(84)



(294)



(86)



(89)



(175)


Other income (expense), net


6



(8)



1



(13)



(14)



11



6



17


Reorganization items


- -



(1)



- -



- -



(1)



- -



- -



- -



Income from continuing operations before income taxes


1,263



1,333



1,193



1,207



4,996



1,326



1,598



2,924


Provision for income taxes


357



410



339



30



1,136



383



425



808



Income from continuing operations


906



923



854



1,177



3,860



943



1,173



2,116


Income (loss) from discontinued operations,


























net of tax


(6)



4



(3)



(2)



(7)



1



3



4




Net income


900



927



851



1,175



3,853



944



1,176



2,120


Net (income) loss attributable to non-controlling


























interests


1



2



2



(1)



4



1



2



3




Net income attributable to the Company




























shareholders

$

901


$

929


$

853


$

1,174


$

3,857


$

945


$

1,178


$

2,123

























































 


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




































2013


2014

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

Q1


Q2


Q3


Q4


Total


Q1


Q2


YTD

Pretax charges (benefits):

























Impairments

$

- -


$

- -


$

- -


$

10


$

10


$

- -


$

- -


$

- -


Insurance settlement


- -



- -



- -



(25)



(25)



- -



- -



- -


Settlement of environmental indemnification agreement


- -



- -



- -



- -



- -



(52)



- -



(52)


Loss on sale of investment


- -



- -



- -



16



16



- -



- -



- -

Total pretax charges (benefits)


- -



- -



- -



1



1



(52)



- -



(52)

Provision for income tax related to these items


- -



- -



- -



4



4



- -



- -



- -

After-tax effect of net charges (benefits)

$

- -


$

- -


$

- -


$

5


$

5


$

(52)


$

- -


$

(52)

Effect on diluted earnings per share

$

- -


$

- -


$

- -


$

- -


$

- -


$

0.09


$

- -


$

0.09








 


Table 12 - Unaudited Cash Flow Information


































2013


2014


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1



Q2



YTD






























Net cash provided by operating activities

$

799


$

1,246


$

1,116


$

1,674


$

4,835


$

801


$

1,797


$

2,598






























Net cash used in investing activities


(408)



(389)



(438)



(367)



(1,602)



(2,011)



(246)



(2,257)




























Net cash provided by (used in) financing activities


(234)



(508)



452



(1,299)



(1,589)



(550)



(2,217)



(2,767)





















































































 

Table 13 - Unaudited Balance Sheet Information
































March 31,


June 30,


September 30,


December 31,


March 31,


June 30,


(Millions of U.S. dollars)

2013


2013


2013


2013


2014


2014


























Cash and cash equivalents

$

2,879


$

3,233


$

4,414


$

4,450


$

2,702


$

2,030


Restricted cash


6



2



4



10



3



2


Short-term investments


- -



- -



- -



- -



1,402



1,299


Accounts receivable, net


3,878



4,023



4,041



4,030



4,141



4,264


Inventories


5,270



5,197



5,382



5,279



5,589



5,326


Prepaid expenses and other current assets


622



577



784



830



1,156



784




Total current assets


12,655



13,032



14,625



14,599



14,993



13,705


Property, plant and equipment, net


7,779



7,979



8,223



8,457



8,556



8,740


Investments and long-term receivables:





















Investment in PO joint ventures


401



409



423



421



424



418




Equity investments


1,607



1,622



1,615



1,629



1,693



1,702




Other investments and long-term receivables


421



231



164



64



62



58


Goodwill


582



588



598



605



605



602


Intangible assets, net


999



966



934



904



870



838


Other assets


233



221



229



619



624



593




Total assets

$

24,677


$

25,048


$

26,811


$

27,298


$

27,827


$

26,656


























Current maturities of long-term debt

$

1


$

1


$

1


$

1


$

3


$

3


Short-term debt


115



114



114



58



58



55


Accounts payable


3,217



3,324



3,241



3,572



3,642



3,690


Accrued liabilities


1,217



1,047



1,528



1,299



1,477



1,310


Deferred income taxes


557



550



494



580



540



570




Total current liabilities


5,107



5,036



5,378



5,510



5,720



5,628


Long-term debt


4,307



4,306



5,774



5,776



6,766



6,766


Other liabilities


2,306



2,325



2,278



1,839



1,838



1,851


Deferred income taxes


1,277



1,312



1,472



1,659



1,677



1,623


Stockholders' equity


11,641



12,032



11,874



12,478



11,791



10,753


Non-controlling interests


39



37



35



36



35



35




Total liabilities and stockholders' equity

$

24,677


$

25,048


$

26,811


$

27,298


$

27,827


$

26,656












































 

 

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SOURCE LyondellBasell Industries



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