Lyondell Reports First Quarter 2001 Results

Highlights

- Refining and MTBE helped offset effects of economic slowdown and higher

energy costs.

- Proportionate share EBITDA of $174 million, up 12% from previous

quarter.

- Net loss of $28 million, or $0.24 per share, excluding an unusual item.



Apr 26, 2001, 01:00 ET from Lyondell Chemical Company

    HOUSTON, April 26 /PRNewswire/ -- For the first quarter 2001 Lyondell
 Chemical Company (NYSE:   LYO) reported a net loss of $34 million, or $0.29 per
 share, including a $6 million, or $0.05 per share, after-tax charge related to
 a permanent facility shutdown at its Equistar joint venture.
     Excluding the unusual item, Lyondell had a net loss of $28 million, or
 $0.24 per share, in the first quarter 2001.  This compares with a loss of
 $45 million, or $0.38 per share, for the fourth quarter 2000, excluding
 unusual items.  Compared to the fourth quarter 2000, the first quarter 2001
 benefited from improved results in Equistar's petrochemicals business and
 higher MTBE profitability.
     EBITDA (earnings before net interest, taxes, depreciation and
 amortization), adjusted for unusual and extraordinary items, for Lyondell and
 the proportionate share of its joint ventures was $174 million in the first
 quarter 2001, compared to $156 million in the fourth quarter 2000 and
 $272 million in the first quarter 2000.
     "Lyondell's first quarter financial results improved from the fourth
 quarter, primarily due to the diversity of our portfolio," said Lyondell
 President and Chief Executive Officer Dan Smith.  "Strong performances from
 refining and MTBE helped offset the impact of a soft global economy and high
 energy costs on our propylene oxide (PO), petrochemicals and polymers
 businesses."
     Commenting on the first quarter, Smith added, "We continued to be
 proactive in mitigating the impact of trough conditions in the chemical cycle.
 We managed production capacity to maximize profitability, including shutting
 down inefficient or higher cost facilities, while maintaining a keen focus on
 controllable costs and capital spending."
 
 
                         Lyondell Earnings Summary (A)
     Millions of dollars except per share amounts  1Q2001    4Q2000    1Q2000
     Net Income (Loss) Before
      Unusual Items (B)(C)(D)                      $(28)     $(45)     $(15)
     Earnings (Loss) per Share Before
      Unusual Items (B)(C)(D)                      $(0.24)   $(0.38)   $(0.13)
     Net Income (Loss) As Reported                 $(34)     $(48)     $306
     Earnings (Loss) per Share As Reported         $(0.29)   $(0.41)   $2.60
     EBITDA (Lyondell and proportionate
      share of ventures) (B)(C)(D)                 $174      $156      $272
 
     (A)  See Consolidated Income Statements.
     (B)  The first quarter 2001 excludes an after-tax charge of $6 million, or
          $0.05 per share, consisting of Lyondell's share of Equistar's
          facility shutdown costs.
     (C)  The fourth quarter 2000 excludes an after-tax extraordinary charge of
          $3 million, or $0.03 per share, related to early debt retirement.
     (D)  The first quarter 2000 excludes a net after-tax benefit of
          $321 million, or $2.73 per share, which consists of the gain on the
          asset sale less the extraordinary charge on debt retirement.
 
     INTERMEDIATE CHEMICALS AND DERIVATIVES (IC&D)
     The IC&D segment includes PO and derivatives, toluene diisocyanate (TDI),
 styrene monomer and MTBE.  IC&D segment EBITDA for the first quarter 2001 was
 $97 million, compared to fourth quarter 2000 EBITDA of $89 million.
     Compared to the fourth quarter 2000, which included the impact of a
 scheduled PO plant outage and foreign exchange gains, the IC&D business
 benefited from an upturn in MTBE margins, stronger performance in the
 butanediol (BDO) business and lower feedstock costs.  These factors more than
 offset higher energy costs and a slowdown in PO and TDI sales due to a weak
 polyurethanes market.  Sales volumes for PO and derivatives (including TDI)
 were 9% lower compared to the fourth quarter.
     In the first quarter 2001, MTBE margins expanded primarily as a result of
 higher selling prices, which are being supported by a tight gasoline market in
 advance of the summer driving season.  PO margins improved due to higher
 selling prices and the lower cost for propylene.  BDO continued to demonstrate
 growth, with sales volumes increasing 9% compared to the fourth quarter 2000
 and 14% compared to the first quarter 2000.  BDO margins also improved as a
 result of industry price increases.
 
     EQUISTAR CHEMICALS, LP
     Equistar's EBITDA for the first quarter 2001 was $69 million, an increase
 from $9 million in the fourth quarter of 2000.  First quarter 2001 EBITDA
 excludes a $22 million charge associated with the shutdown of Equistar's
 higher cost polyethylene facility in Port Arthur, Texas.
     First quarter results for Equistar improved from the previous quarter as a
 result of a higher margin for ethylene.  The margin increase was due to the
 higher ethylene price and lower costs for crude oil-based raw materials.
 Equistar was partially successful in implementing price increases to offset
 the effects of higher energy costs during the first quarter 2001.
     During the first quarter, Equistar maintained stringent measures to
 mitigate difficult business conditions.  These measures included production
 optimization and scheduling, continued employment of its feedstock flexibility
 advantage, as well as the temporary shutdown of the higher-cost ethylene
 cracker at Lake Charles and the permanent shutdown of the Port Arthur
 facility.  These actions and their benefits were partially offset by higher
 energy prices, weaker demand for petrochemicals and polymers and lower prices
 for certain co-products, including propylene.
     Equistar's petrochemicals segment had EBITDA of $166 million in the first
 quarter of 2001, compared to $100 million in the fourth quarter of 2000.
 Compared to the fourth quarter 2000, higher ethylene prices and lower raw
 material costs were offset by lower sales volumes and higher energy costs.
     First quarter 2001 EBITDA for polymers was a negative $75 million,
 compared to a negative $69 million in the fourth quarter of 2000.
 Profitability was essentially unchanged as increases in polymer prices helped
 recover higher ethylene and energy costs.  Polymer sales volumes decreased
 about 5% from the fourth quarter, reflecting overall demand weakness.
 
     LYONDELL-CITGO REFINING LP (LCR)
     LCR had EBITDA of $86 million in the first quarter 2001, compared to
 $107 million in the fourth quarter 2000.
     LCR's first quarter results were negatively affected by a 10-day period of
 reduced operating rates due to an unplanned unit outage and higher natural gas
 energy costs compared to the fourth quarter.  LCR benefited from continued
 delivery of contract levels of extra-heavy Venezuelan crude oil under the
 Crude Supply Agreement (CSA) and higher processing rates of CSA volumes
 compared to the fourth quarter.  CSA processing volumes for the first quarter
 2001 averaged 231,000 barrels per day compared to 219,000 barrels per day for
 the fourth quarter 2000.  The first quarter also benefited from higher spot
 margins for other crude oil processed by LCR.  However, total crude processing
 rates, including spot volumes, in the first quarter 2001 declined by
 11,000 barrels per day compared with the fourth quarter 2000, as a result of
 the 10-day unit outage, which reduced LCR's ability to process spot crude oil.
     In the second quarter of 2001, LCR expects to process approximately
 260,000 barrels of crude oil per day, 230,000 of which are expected to be CSA
 volumes.
 
     OUTLOOK
     "For the near term, we are seeing continuing weak demand in our chemicals
 businesses as a result of the soft global economy," Smith said.  "However, we
 will continue to benefit from a strong fuels market in the second quarter,
 which should result in substantially improved financial performance."
 
 
                                 Sales Revenues
     Millions of dollars                     1Q2001    4Q2000    1Q2000
     Reported Sales Revenues                 $857      $949      $1,136
     Total sales revenues - all businesses
      in which Lyondell participates (A)     $3,585    $3,920    $3,882
     Lyondell's proportionate share of the
      sales revenues of  businesses in
      which it participates (A)              $2,151    $2,385    $2,423
 
     (A)  Includes revenues from sales to affiliates.
 
     Lyondell Chemical Company (www.lyondell.com), with headquarters in
 Houston, Texas, is the world's largest producer of propylene oxide (PO); the
 world's number two supplier of TDI (toluene diisocyanate); a leading producer
 of propylene glycol; a leading producer of other PO derivatives such as BDO
 (butanediol) and PGE (propylene glycol ether); and a producer of styrene
 monomer and MTBE as co-products of PO production.  Through its 41% interest in
 Equistar Chemicals, LP, Lyondell also is one of the largest producers of
 ethylene, propylene and polyethylene in North America and a leading producer
 of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty
 polymers and polymeric powder.  Through its 58.75% interest in LYONDELL-CITGO
 Refining LP, Lyondell is one of the largest refiners in the United States,
 processing extra-heavy Venezuelan crude oil to produce gasoline, low sulfur
 diesel and jet fuel.
 
     The statements in this release relating to matters that are not historical
 facts are forward-looking statements that are subject to risks and
 uncertainties.  Actual results could differ materially, based on factors
 including, but not limited to, future global economic conditions, industry
 production capacity and operating rates, the supply/demand balance for the
 products produced by the Company and its joint ventures, further increases in
 raw material and/or energy costs, changes in governmental regulations and
 other risk factors.  For more detailed information about the factors that
 could cause our actual results to differ materially, please refer to Lyondell
 Chemical Company's Annual Report on Form 10-K for the year ended December 31,
 2000, filed with the Securities and Exchange Commission in March 2001 and the
 Company's quarterly report on Form 10-Q for the quarter ended March 31, 2001,
 which will be filed in May 2001.
 
     Lyondell will conduct a first quarter 2001 teleconference at 3:00 p.m.
 Eastern Time, April 26, 2001.  Teleconference access is available in listen-
 only mode via telephone (dial-in number: United States 877-679-9051;
 International 952-556-2804, no pass code required) and Internet broadcast on
 Lyondell's web site at www.lyondell.com.  Replay details can be found on
 Lyondell's web site.
 
 
                             LYONDELL CHEMICAL COMPANY
              SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
                               (Millions of dollars)
 
                          Lyondell Chemical
                              Company        Joint Ventures      Lyondell and
                            (Excluding                          Proportionate
                              Equity      Equistar  LCR    LMC  Share of Equity
                           Investments)(A) 100%     100%   100%  Investments(B)
 
     Three months ended
      March 31, 2001:
 
        Sales and other
         operating revenues (C)   $857     $1,773    $910   $45     2,151
 
        SG&A and R&D                47         56      14     1        79
 
        EBITDA before unusual
          and extraordinary items   97         69      86    (2)      174
 
        Depreciation
          and amortization          65(D)      78      28     3       113
 
        Net interest expense        92(D)      46      16   ---       120
 
        Capital expenditures        11         24      11   ---        27
 
        Dividends                   27                                 27
 
 
     Three months ended December 31, 2000:
 
        Sales and other
         operating revenues (C)   $949     $1,783  $1,138   $50     2,385
 
        SG&A and R&D                59         50      14     4        91
 
        EBITDA before unusual
          and extraordinary items   89          9     107     1       156
 
        Depreciation
          and amortization          60(D)      80      28     2       108
 
        Net interest expense        98(D)      47      17   ---       127
 
        Capital expenditures        26         50      14   ---        55
 
        Dividends                   27                                 27
 
 
     Three months ended March 31, 2000:
 
        Sales and other
         operating revenues (C) $1,136     $1,858    $859   $29     2,423
 
        SG&A and R&D                69         53      14     2       100
 
        EBITDA before unusual and
         extraordinary items       163        178      60     1       272
 
        Depreciation
          and amortization          84(D)      77      26     3       130
 
        Net interest expense       157(D)      45      12   ---       183
 
        Capital expenditures        19         20      17   ---        37
 
        Dividends                   26                                 26
 
 
     (A)  Consists of the operations of the Intermediate Chemicals and
          Derivatives business segment.  The polyols business sold to Bayer
          on March 31, 2000 is included through the date of sale.
     (B)  This column reflects a combined total for Lyondell's 100% owned
          operations and its pro rata share of each joint venture's operations
          and is not a presentation in accordance with generally accepted
          accounting principles.  Lyondell currently owns a 41% interest in
          Equistar Chemicals, LP ("Equistar"), a 58.75% interest in LYONDELL-
          CITGO Refining LP ("LCR") and a 75% interest in Lyondell Methanol
          Company, L.P. ("LMC").
     (C)  Includes revenues from sales to affiliates.
     (D)  "Depreciation and amortization" and "net interest expense" both
          include approximately $3 million, $4 million and $6 million of non-
          cash amortization of debt issuance costs in the three-month periods
          ended March 31, 2001, December 31, 2000 and March 31, 2000,
          respectively.
 
 
                             LYONDELL CHEMICAL COMPANY
             SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
 
                                                       For the three months
     INCOME STATEMENTS                                    ended March 31,
     (Millions of dollars, except per
      share data)                                      2001              2000
      Sales and other operating revenues               $857            $1,136
      Operating costs and expenses:
          Cost of sales                                 755               952
          Selling, general and
           administrative expenses                       39                55
          Research and development                        8                14
          Amortization of goodwill and
           other intangibles                             24                28
              Operating income                           31                87
      Income (loss) from equity investment
       in Equistar                                      (22)               33
      Income from equity investment in LCR               27                16
      Income (loss) from other equity
       investments                                       (3)                1
      Interest expense, net                             (92)             (157)
      Other income (expense), net                         3                (5)
      Gain on sale of assets                            ---               544
          Income (loss) before income
           taxes and extraordinary item                 (56)              519
      Provision for (benefit from) income taxes         (22)              202
          Income (loss) before extraordinary item       (34)              317
      Extraordinary loss, net of income taxes           ---               (11)
      Net income (loss)                                $(34)             $306
 
      Basic and diluted earnings per share:
          Income (loss) before extraordinary item    $(0.29)            $2.69
          Net income (loss)                          $(0.29)            $2.60
      Weighted average shares outstanding
       (thousands)                                  117,562           117,562
 
 
      INTERMEDIATE CHEMICALS AND DERIVATIVES SEGMENT
      SELECTED FINANCIAL AND OPERATING INFORMATION
      (Millions of dollars)
      Sales and other operating revenues               $857            $1,136
      Operating income                                   31                87
      EBITDA before unusual and
       extraordinary items                               97               163
 
      Sales Volumes (millions)
      PO and derivatives (pounds) (A)                   722             1,187
      Co-products:
           Styrene monomer (pounds)                     789               900
           TBA and derivatives (gallons)                245               284
 
     (A)  Includes propylene oxide ("PO"), PO derivatives and isocyanates.  The
          polyols business sold to Bayer on March 31, 2000 is included through
          the date of sale.
 
 
                             LYONDELL CHEMICAL COMPANY
                     SELECTED FINANCIAL INFORMATION (UNAUDITED)
                               (Millions of dollars)
 
                                                        For the three months
                                                           ended March 31,
     STATEMENTS OF CASH FLOWS                         2001                2000
     Net income (loss)                                $(34)               $306
     Adjustments to reconcile net income
      (loss) to net cash (used in) provided by
      operating activities:
          Gain on sale of assets                       ---                (544)
          Depreciation and amortization                 65                  84
          Extraordinary items                          ---                  11
          Accounts receivable                           68                 (46)
          Inventories                                  (92)                 23
          Accounts payable                             (17)                 43
          Changes in working capital and other, net    (52)                125
               Net cash (used in)
                provided by operating activities       (62)                  2
 
     Proceeds from sale of assets, net of cash sold    ---               2,424
     Expenditures for property, plant and equipment    (11)                (19)
     Contributions and advances to affiliates          (20)                 (4)
     Distributions from affiliates
      in excess of earnings                             28                 ---
     Other                                             ---                 (38)
               Net cash (used in)
                provided by investing activities        (3)              2,363
 
     Repayments of long-term debt                       (2)             (1,004)
     Dividends paid                                    (27)                (26)
     Other                                              (3)                (10)
               Net cash used in financing activities   (32)             (1,040)
 
     Effect of exchange rate changes on cash            (1)                 (2)
 
     (Decrease) increase in cash and cash
      equivalents                                     $(98)             $1,323
 
 
                           LYONDELL CHEMICAL COMPANY
                   SELECTED FINANCIAL INFORMATION (UNAUDITED)
                             (Millions of dollars)
 
                                                    March 31,      December 31,
     BALANCE SHEET                                     2001              2000
     Cash and cash equivalents                         $162              $260
     Accounts receivable, net                           435               508
     Inventories                                        479               392
     Prepaid expenses and other current assets           56                49
     Deferred tax assets                                165               136
         Total current assets                         1,297             1,345
     Property, plant and equipment, net               2,361             2,429
     Investments and long-term
      receivables:
         Investment in Equistar                         577               599
         Investment in LCR                               27                20
         Investment in LMC                               45                49
         Investment in PO joint ventures (A)            649               621
         Receivable from LCR                            229               229
         Other investments and long-term receivables     84                88
     Goodwill, net                                    1,125             1,152
     Deferred charges and other assets                  519               515
         Total assets                                $6,913            $7,047
 
     Accounts payable                                  $376              $399
     Current maturities of long-term debt                11                10
     Other accrued liabilities                          317               325
         Total current liabilities                      704               734
     Long-term debt, less current maturities          3,841             3,844
     Other liabilities and deferred credits             484               441
     Deferred income taxes                              693               702
     Minority interest                                  161               181
     Stockholders' equity (117,562,920
      shares outstanding)                             1,030             1,145
         Total liabilities and stockholders' equity  $6,913            $7,047
 
 
     Investment in Equistar, December 31, 2000         $599
     Lyondell's share of Equistar net loss              (22)
     Investment in Equistar, March 31, 2001            $577
 
     Investment in LCR, December 31, 2000               $20
     Lyondell's share of LCR net income                  27
     Cash distributions from LCR                        (22)
     Contribution for capital expenditures                2
     Investment in LCR, March 31, 2001                  $27
 
     Investment in LMC, December 31, 2000               $49
     Lyondell's share of LMC net loss                    (4)
     Cash distributions from LMC                         (3)
     Cash contributions to LMC                            3
     Investment in LMC, March 31, 2001                  $45
 
     (A)  Lyondell has entered into joint ventures with Bayer in conjunction
          with the March 2000 asset sale and the December 2000 agreement for
          joint construction of PO-11.
 
 
                           LYONDELL CHEMICAL COMPANY
                             EQUISTAR CHEMICALS, LP
            SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
 
                                                  For the three months
      INCOME STATEMENTS                             ended March 31,
      (Millions of dollars)                            2001              2000
      Sales and other operating revenues (A)         $1,773            $1,858
      Operating costs and expenses:
          Cost of sales                               1,723             1,698
          Selling, general
           and administrative expenses                   46                44
          Research and development expense               10                 9
          Amortization of goodwill and
           other intangibles                              8                 8
          Restructuring and other unusual charges        22               ---
              Operating income (loss)                   (36)               99
      Interest expense, net                             (46)              (45)
      Other income, net                                   5                 2
      Net income (loss) (B)                            $(77)              $56
 
      SELECTED FINANCIAL AND OPERATING INFORMATION
      (Millions of dollars)
      Sales and Other Operating Revenues   (A)
      Petrochemicals segment                         $1,689            $1,752
      Polymers segment                                  542               580
      Intersegment eliminations                        (458)             (474)
          Total                                      $1,773            $1,858
      Other Operating Expenses (C)
      Petrochemicals segment                             $6                $2
      Polymers segment                                   18                17
      Unallocated                                        40                42
          Total                                         $64               $61
      Operating Income (Loss)
      Petrochemicals segment                           $115              $172
      Polymers segment                                  (89)              (31)
      Unallocated                                       (62)              (42)
          Total                                        $(36)              $99
      EBITDA
      Petrochemicals segment                           $166              $223
      Polymers segment                                  (75)              (19)
      Unallocated                                       (44)              (26)
          Total                                         $47              $178
 
      EBITDA before unusual charges                     $69              $178
 
      Sales Volumes (millions) (A)
      Selected petrochemical products:
          Ethylene, propylene and other
           olefins (pounds)                           4,241             4,902
          Aromatics (gallons)                            90               102
      Polymers products (pounds)                      1,441             1,667
 
     (A)  Includes revenues/volumes from sales to affiliates.
     (B)  As a partnership, Equistar is not subject to federal income taxes.
     (C)  Other Operating Expenses include SG&A, R&D and amortization of
          goodwill and other intangibles.
 
 
                           LYONDELL CHEMICAL COMPANY
                             EQUISTAR CHEMICALS, LP
                   SELECTED FINANCIAL INFORMATION (UNAUDITED)
                             (Millions of dollars)
 
                                                     March 31,     December 31,
      BALANCE SHEETS                                   2001            2000
      Cash and cash equivalents                          $9             $18
      Accounts receivable, net                          711             758
      Inventories                                       580             506
      Prepaid expenses and other current assets          52              50
          Total current assets                        1,352           1,332
      Property, plant and equipment, net              3,784           3,819
      Goodwill, net                                   1,078           1,086
      Deferred charges and other assets                 371             345
          Total assets                               $6,585          $6,582
 
      Accounts payable                                 $454            $487
      Current maturities of long-term debt              356              90
      Other accrued liabilities                         116             166
          Total current liabilities                     926             743
      Long-term debt, less current maturities         2,058           2,158
      Other liabilities and deferred credits            141             141
      Partners' capital                               3,460           3,540
          Total liabilities and partners' capital    $6,585          $6,582
 
                                                        For the three months
                                                           ended March 31,
      SELECTED CASH FLOW INFORMATION                   2001               2000
      Depreciation and amortization                     $78                $77
      Cash flow used in operating activities           (154)               (13)
      Expenditures for property, plant and equipment     24                 20
 
 
                           LYONDELL CHEMICAL COMPANY
                           LYONDELL-CITGO REFINING LP
            SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
 
     CONDENSED BALANCE SHEETS                        March 31,     December 31,
     (Millions of dollars)                             2001             2000
     Total current assets                              $319             $310
     Property, plant and equipment, net               1,306            1,319
     Deferred charges and other assets                   63               67
         Total assets                                $1,688           $1,696
 
     Notes payable                                     $450             $450
     Other current liabilities                          402              417
     Loans payable to partners                          264              264
     Other liabilities and deferred credits              60               57
     Partners' capital                                  512              508
         Total liabilities and partners' capital     $1,688           $1,696
 
 
                                                        For the three months
     INCOME STATEMENTS                                     ended March 31,
     (Millions of dollars)                             2001              2000
     Sales and other operating revenues (A)            $910              $859
     Operating costs and expenses:
         Cost of sales                                  838               811
         Selling, general and
          administrative expenses                        14                14
              Operating income                           58                34
     Interest expense, net                              (16)              (12)
     Net income (B)                                     $42               $22
 
     SELECTED CASH FLOW INFORMATION
     (Millions of dollars)
     Depreciation and amortization                      $28               $26
     Cash flow provided by operating activities          37                25
     Expenditures for property, plant and equipment      11                17
 
     EBITDA                                             $86               $60
 
     SELECTED OPERATING INFORMATION
     Sales Volumes (including intersegment sales) (A)
     Refined products (thousand barrels per day):
         Gasoline                                       106               106
         Diesel and heating oil                          71                66
         Jet fuel                                        20                15
         Aromatics                                       10                10
         Other refinery products                        104               118
              Total refined products volumes            311               315
 
     Refinery Runs
     Crude processing rates (thousand barrels per day):
         Crude Supply Agreement - coked                 231               180
         Other heavy crude oil - coked                   23                41
         Other crude oil                                  5                21
              Total crude oil                           259               242
 
     (A)  Includes revenues/volumes from sales to affiliates.
     (B)  As a partnership, LCR is not subject to federal income taxes.
 
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SOURCE Lyondell Chemical Company
    HOUSTON, April 26 /PRNewswire/ -- For the first quarter 2001 Lyondell
 Chemical Company (NYSE:   LYO) reported a net loss of $34 million, or $0.29 per
 share, including a $6 million, or $0.05 per share, after-tax charge related to
 a permanent facility shutdown at its Equistar joint venture.
     Excluding the unusual item, Lyondell had a net loss of $28 million, or
 $0.24 per share, in the first quarter 2001.  This compares with a loss of
 $45 million, or $0.38 per share, for the fourth quarter 2000, excluding
 unusual items.  Compared to the fourth quarter 2000, the first quarter 2001
 benefited from improved results in Equistar's petrochemicals business and
 higher MTBE profitability.
     EBITDA (earnings before net interest, taxes, depreciation and
 amortization), adjusted for unusual and extraordinary items, for Lyondell and
 the proportionate share of its joint ventures was $174 million in the first
 quarter 2001, compared to $156 million in the fourth quarter 2000 and
 $272 million in the first quarter 2000.
     "Lyondell's first quarter financial results improved from the fourth
 quarter, primarily due to the diversity of our portfolio," said Lyondell
 President and Chief Executive Officer Dan Smith.  "Strong performances from
 refining and MTBE helped offset the impact of a soft global economy and high
 energy costs on our propylene oxide (PO), petrochemicals and polymers
 businesses."
     Commenting on the first quarter, Smith added, "We continued to be
 proactive in mitigating the impact of trough conditions in the chemical cycle.
 We managed production capacity to maximize profitability, including shutting
 down inefficient or higher cost facilities, while maintaining a keen focus on
 controllable costs and capital spending."
 
 
                         Lyondell Earnings Summary (A)
     Millions of dollars except per share amounts  1Q2001    4Q2000    1Q2000
     Net Income (Loss) Before
      Unusual Items (B)(C)(D)                      $(28)     $(45)     $(15)
     Earnings (Loss) per Share Before
      Unusual Items (B)(C)(D)                      $(0.24)   $(0.38)   $(0.13)
     Net Income (Loss) As Reported                 $(34)     $(48)     $306
     Earnings (Loss) per Share As Reported         $(0.29)   $(0.41)   $2.60
     EBITDA (Lyondell and proportionate
      share of ventures) (B)(C)(D)                 $174      $156      $272
 
     (A)  See Consolidated Income Statements.
     (B)  The first quarter 2001 excludes an after-tax charge of $6 million, or
          $0.05 per share, consisting of Lyondell's share of Equistar's
          facility shutdown costs.
     (C)  The fourth quarter 2000 excludes an after-tax extraordinary charge of
          $3 million, or $0.03 per share, related to early debt retirement.
     (D)  The first quarter 2000 excludes a net after-tax benefit of
          $321 million, or $2.73 per share, which consists of the gain on the
          asset sale less the extraordinary charge on debt retirement.
 
     INTERMEDIATE CHEMICALS AND DERIVATIVES (IC&D)
     The IC&D segment includes PO and derivatives, toluene diisocyanate (TDI),
 styrene monomer and MTBE.  IC&D segment EBITDA for the first quarter 2001 was
 $97 million, compared to fourth quarter 2000 EBITDA of $89 million.
     Compared to the fourth quarter 2000, which included the impact of a
 scheduled PO plant outage and foreign exchange gains, the IC&D business
 benefited from an upturn in MTBE margins, stronger performance in the
 butanediol (BDO) business and lower feedstock costs.  These factors more than
 offset higher energy costs and a slowdown in PO and TDI sales due to a weak
 polyurethanes market.  Sales volumes for PO and derivatives (including TDI)
 were 9% lower compared to the fourth quarter.
     In the first quarter 2001, MTBE margins expanded primarily as a result of
 higher selling prices, which are being supported by a tight gasoline market in
 advance of the summer driving season.  PO margins improved due to higher
 selling prices and the lower cost for propylene.  BDO continued to demonstrate
 growth, with sales volumes increasing 9% compared to the fourth quarter 2000
 and 14% compared to the first quarter 2000.  BDO margins also improved as a
 result of industry price increases.
 
     EQUISTAR CHEMICALS, LP
     Equistar's EBITDA for the first quarter 2001 was $69 million, an increase
 from $9 million in the fourth quarter of 2000.  First quarter 2001 EBITDA
 excludes a $22 million charge associated with the shutdown of Equistar's
 higher cost polyethylene facility in Port Arthur, Texas.
     First quarter results for Equistar improved from the previous quarter as a
 result of a higher margin for ethylene.  The margin increase was due to the
 higher ethylene price and lower costs for crude oil-based raw materials.
 Equistar was partially successful in implementing price increases to offset
 the effects of higher energy costs during the first quarter 2001.
     During the first quarter, Equistar maintained stringent measures to
 mitigate difficult business conditions.  These measures included production
 optimization and scheduling, continued employment of its feedstock flexibility
 advantage, as well as the temporary shutdown of the higher-cost ethylene
 cracker at Lake Charles and the permanent shutdown of the Port Arthur
 facility.  These actions and their benefits were partially offset by higher
 energy prices, weaker demand for petrochemicals and polymers and lower prices
 for certain co-products, including propylene.
     Equistar's petrochemicals segment had EBITDA of $166 million in the first
 quarter of 2001, compared to $100 million in the fourth quarter of 2000.
 Compared to the fourth quarter 2000, higher ethylene prices and lower raw
 material costs were offset by lower sales volumes and higher energy costs.
     First quarter 2001 EBITDA for polymers was a negative $75 million,
 compared to a negative $69 million in the fourth quarter of 2000.
 Profitability was essentially unchanged as increases in polymer prices helped
 recover higher ethylene and energy costs.  Polymer sales volumes decreased
 about 5% from the fourth quarter, reflecting overall demand weakness.
 
     LYONDELL-CITGO REFINING LP (LCR)
     LCR had EBITDA of $86 million in the first quarter 2001, compared to
 $107 million in the fourth quarter 2000.
     LCR's first quarter results were negatively affected by a 10-day period of
 reduced operating rates due to an unplanned unit outage and higher natural gas
 energy costs compared to the fourth quarter.  LCR benefited from continued
 delivery of contract levels of extra-heavy Venezuelan crude oil under the
 Crude Supply Agreement (CSA) and higher processing rates of CSA volumes
 compared to the fourth quarter.  CSA processing volumes for the first quarter
 2001 averaged 231,000 barrels per day compared to 219,000 barrels per day for
 the fourth quarter 2000.  The first quarter also benefited from higher spot
 margins for other crude oil processed by LCR.  However, total crude processing
 rates, including spot volumes, in the first quarter 2001 declined by
 11,000 barrels per day compared with the fourth quarter 2000, as a result of
 the 10-day unit outage, which reduced LCR's ability to process spot crude oil.
     In the second quarter of 2001, LCR expects to process approximately
 260,000 barrels of crude oil per day, 230,000 of which are expected to be CSA
 volumes.
 
     OUTLOOK
     "For the near term, we are seeing continuing weak demand in our chemicals
 businesses as a result of the soft global economy," Smith said.  "However, we
 will continue to benefit from a strong fuels market in the second quarter,
 which should result in substantially improved financial performance."
 
 
                                 Sales Revenues
     Millions of dollars                     1Q2001    4Q2000    1Q2000
     Reported Sales Revenues                 $857      $949      $1,136
     Total sales revenues - all businesses
      in which Lyondell participates (A)     $3,585    $3,920    $3,882
     Lyondell's proportionate share of the
      sales revenues of  businesses in
      which it participates (A)              $2,151    $2,385    $2,423
 
     (A)  Includes revenues from sales to affiliates.
 
     Lyondell Chemical Company (www.lyondell.com), with headquarters in
 Houston, Texas, is the world's largest producer of propylene oxide (PO); the
 world's number two supplier of TDI (toluene diisocyanate); a leading producer
 of propylene glycol; a leading producer of other PO derivatives such as BDO
 (butanediol) and PGE (propylene glycol ether); and a producer of styrene
 monomer and MTBE as co-products of PO production.  Through its 41% interest in
 Equistar Chemicals, LP, Lyondell also is one of the largest producers of
 ethylene, propylene and polyethylene in North America and a leading producer
 of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty
 polymers and polymeric powder.  Through its 58.75% interest in LYONDELL-CITGO
 Refining LP, Lyondell is one of the largest refiners in the United States,
 processing extra-heavy Venezuelan crude oil to produce gasoline, low sulfur
 diesel and jet fuel.
 
     The statements in this release relating to matters that are not historical
 facts are forward-looking statements that are subject to risks and
 uncertainties.  Actual results could differ materially, based on factors
 including, but not limited to, future global economic conditions, industry
 production capacity and operating rates, the supply/demand balance for the
 products produced by the Company and its joint ventures, further increases in
 raw material and/or energy costs, changes in governmental regulations and
 other risk factors.  For more detailed information about the factors that
 could cause our actual results to differ materially, please refer to Lyondell
 Chemical Company's Annual Report on Form 10-K for the year ended December 31,
 2000, filed with the Securities and Exchange Commission in March 2001 and the
 Company's quarterly report on Form 10-Q for the quarter ended March 31, 2001,
 which will be filed in May 2001.
 
     Lyondell will conduct a first quarter 2001 teleconference at 3:00 p.m.
 Eastern Time, April 26, 2001.  Teleconference access is available in listen-
 only mode via telephone (dial-in number: United States 877-679-9051;
 International 952-556-2804, no pass code required) and Internet broadcast on
 Lyondell's web site at www.lyondell.com.  Replay details can be found on
 Lyondell's web site.
 
 
                             LYONDELL CHEMICAL COMPANY
              SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
                               (Millions of dollars)
 
                          Lyondell Chemical
                              Company        Joint Ventures      Lyondell and
                            (Excluding                          Proportionate
                              Equity      Equistar  LCR    LMC  Share of Equity
                           Investments)(A) 100%     100%   100%  Investments(B)
 
     Three months ended
      March 31, 2001:
 
        Sales and other
         operating revenues (C)   $857     $1,773    $910   $45     2,151
 
        SG&A and R&D                47         56      14     1        79
 
        EBITDA before unusual
          and extraordinary items   97         69      86    (2)      174
 
        Depreciation
          and amortization          65(D)      78      28     3       113
 
        Net interest expense        92(D)      46      16   ---       120
 
        Capital expenditures        11         24      11   ---        27
 
        Dividends                   27                                 27
 
 
     Three months ended December 31, 2000:
 
        Sales and other
         operating revenues (C)   $949     $1,783  $1,138   $50     2,385
 
        SG&A and R&D                59         50      14     4        91
 
        EBITDA before unusual
          and extraordinary items   89          9     107     1       156
 
        Depreciation
          and amortization          60(D)      80      28     2       108
 
        Net interest expense        98(D)      47      17   ---       127
 
        Capital expenditures        26         50      14   ---        55
 
        Dividends                   27                                 27
 
 
     Three months ended March 31, 2000:
 
        Sales and other
         operating revenues (C) $1,136     $1,858    $859   $29     2,423
 
        SG&A and R&D                69         53      14     2       100
 
        EBITDA before unusual and
         extraordinary items       163        178      60     1       272
 
        Depreciation
          and amortization          84(D)      77      26     3       130
 
        Net interest expense       157(D)      45      12   ---       183
 
        Capital expenditures        19         20      17   ---        37
 
        Dividends                   26                                 26
 
 
     (A)  Consists of the operations of the Intermediate Chemicals and
          Derivatives business segment.  The polyols business sold to Bayer
          on March 31, 2000 is included through the date of sale.
     (B)  This column reflects a combined total for Lyondell's 100% owned
          operations and its pro rata share of each joint venture's operations
          and is not a presentation in accordance with generally accepted
          accounting principles.  Lyondell currently owns a 41% interest in
          Equistar Chemicals, LP ("Equistar"), a 58.75% interest in LYONDELL-
          CITGO Refining LP ("LCR") and a 75% interest in Lyondell Methanol
          Company, L.P. ("LMC").
     (C)  Includes revenues from sales to affiliates.
     (D)  "Depreciation and amortization" and "net interest expense" both
          include approximately $3 million, $4 million and $6 million of non-
          cash amortization of debt issuance costs in the three-month periods
          ended March 31, 2001, December 31, 2000 and March 31, 2000,
          respectively.
 
 
                             LYONDELL CHEMICAL COMPANY
             SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
 
                                                       For the three months
     INCOME STATEMENTS                                    ended March 31,
     (Millions of dollars, except per
      share data)                                      2001              2000
      Sales and other operating revenues               $857            $1,136
      Operating costs and expenses:
          Cost of sales                                 755               952
          Selling, general and
           administrative expenses                       39                55
          Research and development                        8                14
          Amortization of goodwill and
           other intangibles                             24                28
              Operating income                           31                87
      Income (loss) from equity investment
       in Equistar                                      (22)               33
      Income from equity investment in LCR               27                16
      Income (loss) from other equity
       investments                                       (3)                1
      Interest expense, net                             (92)             (157)
      Other income (expense), net                         3                (5)
      Gain on sale of assets                            ---               544
          Income (loss) before income
           taxes and extraordinary item                 (56)              519
      Provision for (benefit from) income taxes         (22)              202
          Income (loss) before extraordinary item       (34)              317
      Extraordinary loss, net of income taxes           ---               (11)
      Net income (loss)                                $(34)             $306
 
      Basic and diluted earnings per share:
          Income (loss) before extraordinary item    $(0.29)            $2.69
          Net income (loss)                          $(0.29)            $2.60
      Weighted average shares outstanding
       (thousands)                                  117,562           117,562
 
 
      INTERMEDIATE CHEMICALS AND DERIVATIVES SEGMENT
      SELECTED FINANCIAL AND OPERATING INFORMATION
      (Millions of dollars)
      Sales and other operating revenues               $857            $1,136
      Operating income                                   31                87
      EBITDA before unusual and
       extraordinary items                               97               163
 
      Sales Volumes (millions)
      PO and derivatives (pounds) (A)                   722             1,187
      Co-products:
           Styrene monomer (pounds)                     789               900
           TBA and derivatives (gallons)                245               284
 
     (A)  Includes propylene oxide ("PO"), PO derivatives and isocyanates.  The
          polyols business sold to Bayer on March 31, 2000 is included through
          the date of sale.
 
 
                             LYONDELL CHEMICAL COMPANY
                     SELECTED FINANCIAL INFORMATION (UNAUDITED)
                               (Millions of dollars)
 
                                                        For the three months
                                                           ended March 31,
     STATEMENTS OF CASH FLOWS                         2001                2000
     Net income (loss)                                $(34)               $306
     Adjustments to reconcile net income
      (loss) to net cash (used in) provided by
      operating activities:
          Gain on sale of assets                       ---                (544)
          Depreciation and amortization                 65                  84
          Extraordinary items                          ---                  11
          Accounts receivable                           68                 (46)
          Inventories                                  (92)                 23
          Accounts payable                             (17)                 43
          Changes in working capital and other, net    (52)                125
               Net cash (used in)
                provided by operating activities       (62)                  2
 
     Proceeds from sale of assets, net of cash sold    ---               2,424
     Expenditures for property, plant and equipment    (11)                (19)
     Contributions and advances to affiliates          (20)                 (4)
     Distributions from affiliates
      in excess of earnings                             28                 ---
     Other                                             ---                 (38)
               Net cash (used in)
                provided by investing activities        (3)              2,363
 
     Repayments of long-term debt                       (2)             (1,004)
     Dividends paid                                    (27)                (26)
     Other                                              (3)                (10)
               Net cash used in financing activities   (32)             (1,040)
 
     Effect of exchange rate changes on cash            (1)                 (2)
 
     (Decrease) increase in cash and cash
      equivalents                                     $(98)             $1,323
 
 
                           LYONDELL CHEMICAL COMPANY
                   SELECTED FINANCIAL INFORMATION (UNAUDITED)
                             (Millions of dollars)
 
                                                    March 31,      December 31,
     BALANCE SHEET                                     2001              2000
     Cash and cash equivalents                         $162              $260
     Accounts receivable, net                           435               508
     Inventories                                        479               392
     Prepaid expenses and other current assets           56                49
     Deferred tax assets                                165               136
         Total current assets                         1,297             1,345
     Property, plant and equipment, net               2,361             2,429
     Investments and long-term
      receivables:
         Investment in Equistar                         577               599
         Investment in LCR                               27                20
         Investment in LMC                               45                49
         Investment in PO joint ventures (A)            649               621
         Receivable from LCR                            229               229
         Other investments and long-term receivables     84                88
     Goodwill, net                                    1,125             1,152
     Deferred charges and other assets                  519               515
         Total assets                                $6,913            $7,047
 
     Accounts payable                                  $376              $399
     Current maturities of long-term debt                11                10
     Other accrued liabilities                          317               325
         Total current liabilities                      704               734
     Long-term debt, less current maturities          3,841             3,844
     Other liabilities and deferred credits             484               441
     Deferred income taxes                              693               702
     Minority interest                                  161               181
     Stockholders' equity (117,562,920
      shares outstanding)                             1,030             1,145
         Total liabilities and stockholders' equity  $6,913            $7,047
 
 
     Investment in Equistar, December 31, 2000         $599
     Lyondell's share of Equistar net loss              (22)
     Investment in Equistar, March 31, 2001            $577
 
     Investment in LCR, December 31, 2000               $20
     Lyondell's share of LCR net income                  27
     Cash distributions from LCR                        (22)
     Contribution for capital expenditures                2
     Investment in LCR, March 31, 2001                  $27
 
     Investment in LMC, December 31, 2000               $49
     Lyondell's share of LMC net loss                    (4)
     Cash distributions from LMC                         (3)
     Cash contributions to LMC                            3
     Investment in LMC, March 31, 2001                  $45
 
     (A)  Lyondell has entered into joint ventures with Bayer in conjunction
          with the March 2000 asset sale and the December 2000 agreement for
          joint construction of PO-11.
 
 
                           LYONDELL CHEMICAL COMPANY
                             EQUISTAR CHEMICALS, LP
            SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
 
                                                  For the three months
      INCOME STATEMENTS                             ended March 31,
      (Millions of dollars)                            2001              2000
      Sales and other operating revenues (A)         $1,773            $1,858
      Operating costs and expenses:
          Cost of sales                               1,723             1,698
          Selling, general
           and administrative expenses                   46                44
          Research and development expense               10                 9
          Amortization of goodwill and
           other intangibles                              8                 8
          Restructuring and other unusual charges        22               ---
              Operating income (loss)                   (36)               99
      Interest expense, net                             (46)              (45)
      Other income, net                                   5                 2
      Net income (loss) (B)                            $(77)              $56
 
      SELECTED FINANCIAL AND OPERATING INFORMATION
      (Millions of dollars)
      Sales and Other Operating Revenues   (A)
      Petrochemicals segment                         $1,689            $1,752
      Polymers segment                                  542               580
      Intersegment eliminations                        (458)             (474)
          Total                                      $1,773            $1,858
      Other Operating Expenses (C)
      Petrochemicals segment                             $6                $2
      Polymers segment                                   18                17
      Unallocated                                        40                42
          Total                                         $64               $61
      Operating Income (Loss)
      Petrochemicals segment                           $115              $172
      Polymers segment                                  (89)              (31)
      Unallocated                                       (62)              (42)
          Total                                        $(36)              $99
      EBITDA
      Petrochemicals segment                           $166              $223
      Polymers segment                                  (75)              (19)
      Unallocated                                       (44)              (26)
          Total                                         $47              $178
 
      EBITDA before unusual charges                     $69              $178
 
      Sales Volumes (millions) (A)
      Selected petrochemical products:
          Ethylene, propylene and other
           olefins (pounds)                           4,241             4,902
          Aromatics (gallons)                            90               102
      Polymers products (pounds)                      1,441             1,667
 
     (A)  Includes revenues/volumes from sales to affiliates.
     (B)  As a partnership, Equistar is not subject to federal income taxes.
     (C)  Other Operating Expenses include SG&A, R&D and amortization of
          goodwill and other intangibles.
 
 
                           LYONDELL CHEMICAL COMPANY
                             EQUISTAR CHEMICALS, LP
                   SELECTED FINANCIAL INFORMATION (UNAUDITED)
                             (Millions of dollars)
 
                                                     March 31,     December 31,
      BALANCE SHEETS                                   2001            2000
      Cash and cash equivalents                          $9             $18
      Accounts receivable, net                          711             758
      Inventories                                       580             506
      Prepaid expenses and other current assets          52              50
          Total current assets                        1,352           1,332
      Property, plant and equipment, net              3,784           3,819
      Goodwill, net                                   1,078           1,086
      Deferred charges and other assets                 371             345
          Total assets                               $6,585          $6,582
 
      Accounts payable                                 $454            $487
      Current maturities of long-term debt              356              90
      Other accrued liabilities                         116             166
          Total current liabilities                     926             743
      Long-term debt, less current maturities         2,058           2,158
      Other liabilities and deferred credits            141             141
      Partners' capital                               3,460           3,540
          Total liabilities and partners' capital    $6,585          $6,582
 
                                                        For the three months
                                                           ended March 31,
      SELECTED CASH FLOW INFORMATION                   2001               2000
      Depreciation and amortization                     $78                $77
      Cash flow used in operating activities           (154)               (13)
      Expenditures for property, plant and equipment     24                 20
 
 
                           LYONDELL CHEMICAL COMPANY
                           LYONDELL-CITGO REFINING LP
            SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
 
     CONDENSED BALANCE SHEETS                        March 31,     December 31,
     (Millions of dollars)                             2001             2000
     Total current assets                              $319             $310
     Property, plant and equipment, net               1,306            1,319
     Deferred charges and other assets                   63               67
         Total assets                                $1,688           $1,696
 
     Notes payable                                     $450             $450
     Other current liabilities                          402              417
     Loans payable to partners                          264              264
     Other liabilities and deferred credits              60               57
     Partners' capital                                  512              508
         Total liabilities and partners' capital     $1,688           $1,696
 
 
                                                        For the three months
     INCOME STATEMENTS                                     ended March 31,
     (Millions of dollars)                             2001              2000
     Sales and other operating revenues (A)            $910              $859
     Operating costs and expenses:
         Cost of sales                                  838               811
         Selling, general and
          administrative expenses                        14                14
              Operating income                           58                34
     Interest expense, net                              (16)              (12)
     Net income (B)                                     $42               $22
 
     SELECTED CASH FLOW INFORMATION
     (Millions of dollars)
     Depreciation and amortization                      $28               $26
     Cash flow provided by operating activities          37                25
     Expenditures for property, plant and equipment      11                17
 
     EBITDA                                             $86               $60
 
     SELECTED OPERATING INFORMATION
     Sales Volumes (including intersegment sales) (A)
     Refined products (thousand barrels per day):
         Gasoline                                       106               106
         Diesel and heating oil                          71                66
         Jet fuel                                        20                15
         Aromatics                                       10                10
         Other refinery products                        104               118
              Total refined products volumes            311               315
 
     Refinery Runs
     Crude processing rates (thousand barrels per day):
         Crude Supply Agreement - coked                 231               180
         Other heavy crude oil - coked                   23                41
         Other crude oil                                  5                21
              Total crude oil                           259               242
 
     (A)  Includes revenues/volumes from sales to affiliates.
     (B)  As a partnership, LCR is not subject to federal income taxes.
 
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 SOURCE  Lyondell Chemical Company