LyondellBasell Reports Second-Quarter 2014 Results

Jul 25, 2014, 06:50 ET from LyondellBasell Industries

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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