LyondellBasell Reports Third-Quarter 2010 Results
ROTTERDAM, Netherlands, Oct. 29 /PRNewswire-FirstCall/ --
Highlights
- Net income of $467 million; Earnings per share of $0.84
- Third quarter EBITDA of $1,230 million, excluding $32 million non-cash Lower of Cost or Market (LCM) inventory charge; Year-to-Date EBITDA(R) of $3,273 million excluding non-cash LCM charges of $365 million(1)
- Sales of $10,302 million, up 20% from the prior year
- New York Stock Exchange listing completed; ticker symbols LYB and LYB.B
- Solid operating performance with results near second quarter levels; combined global Olefins and Polyolefins results approximate second-quarter 2010 results
LyondellBasell Industries (NYSE: LYB) today announced net income for the third quarter 2010 of $467 million, or $0.84 per share. Third quarter 2010 EBITDA was $1,230 million, excluding a $32 million non-cash LCM inventory charge.(1) Quarterly sales were $10,302 million. Comparisons with the prior quarter, third quarter 2009 and first nine months of 2009 are available in the following table.
Table 1 - Earnings Summary (a) | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of U.S. dollars (except where noted) | Sept. 30, 2010 | June 30, 2010 (b) | Sept. 30, 2009 | 2010 (c) | 2009 | |
Sales and other operating revenues | $10,302 | $10,484 | $8,612 | $30,541 | $22,011 | |
Net income (loss) (d) | 467 | 8,843 | (651) | 9,318 | (2,021) | |
Earnings per diluted share (U.S. dollars) | 0.84 | N/A | N/A | N/A | N/A | |
Diluted share count (millions) | 565 | N/A | N/A | N/A | N/A | |
EBITDA(R) (e) | 1,198 | 1,070 | 783 | 2,908 | 1,710 | |
EBITDA(R) excluding LCM and other inventory valuation adjustments | 1,230 | 1,403 | 803 | 3,273 | 1,819 | |
(a) For all periods prior to May 1, 2010, EBITDAR is calculated using a current cost inventory basis. For periods on and after May 1, 2010, net income and EBITDA are calculated using the LIFO (Last-In, First-Out) method of inventory accounting. (b) Results for the second quarter 2010 represent the combined predecessor (April 1, 2010 - April 30, 2010) and successor (May 1, 2010 - June 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (c) Results for the first nine months of 2010 represent the combined predecessor (Jan. 1, 2010 - April 30, 2010) and successor (May 1, 2010 – Sept. 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (d) Includes net income (loss) attributable to non-controlling interests. See Table 11. (e) See Table 9 for reconciliations of EBITDAR and EBITDA to net income. | ||||||
Table 2 – Charges (Benefits) Included in Net Income | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of dollars | Sept. 30, 2010 | June 30, 2010 | Sept. 30, 2009 | 2010 | 2009 | |
Pretax charges (benefits): | ||||||
Charge/(benefit) – Reorganization items | $13 | $169 | $928 | $(28) | $2,000 | |
Gain on discharge of liabilities subject to compromise | - | (13,617) | - | (13,617) | - | |
Change in net assets resulting from application of fresh-start accounting | - | 5,656 | - | 5,656 | - | |
LCM and other inventory valuation adjustments | 32 | 333 | 20 | 365 | 109 | |
Unplanned maintenance at the Houston refinery | - | 14 | - | 14 | - | |
Warrants – mark to market | 76 | (17) | - | 59 | - | |
Change related to dispute over environmental indemnity | 64 | - | - | 64 | - | |
Provision for income tax related to these items | (13) | (498) | (332) | (440) | (738) | |
After-tax effect of net charges (credits) | 172 | (7,960) | 616 | (7,927) | 1,371 | |
Effect on earnings per share | $0.30 | NA | NA | NA | NA | |
"We achieved excellent results in the third quarter as most of our segments performed very well," said LyondellBasell Chief Executive Officer Jim Gallogly. "Globally, our Olefins & Polyolefins results were approximately equal to the strong results of the second quarter. As a result, we again generated significant cash during the quarter and further improved our liquidity. In early October, we completed our listing on the New York Stock Exchange, another milestone in the creation of the new LyondellBasell."
OUTLOOK
Commenting on the near-term outlook, Gallogly said, "Industry conditions have held up reasonably well during October. However, we expect to see the typical seasonal impacts in the Refining and Oxyfuels area as well as end-of-year holiday reduced sales to some customers. With these anticipated impacts, our outlook for the quarter is somewhat tempered compared to the strong second and third quarters."
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell operates in five business segments: 1) Olefins & Polyolefins – Americas; 2) Olefins & Polyolefins – Europe, Asia, International; 3) Intermediates & Derivatives; 4) Refining & Oxyfuels and 5) Technology.
Olefins & Polyolefins - Americas (O&P-Americas) – The primary products of this segment include ethylene, ethylene co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.
Table 3 – O&P-Americas Financial Overview (a) | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of dollars | Sept. 30, 2010 | June 30, 2010 (b) | Sept. 30, 2009 | 2010 (c) | 2009 | |
Operating income | $448 | $324 | $132 | $917 | $100 | |
EBITDA(R) | 492 | 414 | 272 | 1,180 | 499 | |
EBITDA(R) excluding LCM charges | 518 | 585 | N/A | 1,377 | N/A | |
(a) For all periods prior to May 1, 2010, operating income and EBITDAR are calculated on a current cost inventory basis. For periods on and after May 1, 2010, operating income and EBITDA are calculated using the LIFO method of inventory accounting. See Table 8. (b) Represents the combined second quarter 2010 predecessor (April 1, 2010 – April 30, 2010) and successor (May 1, 2010 – June 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (c) Represents the combined predecessor (Jan. 1, 2010 – April 30, 2010) and successor (May 1, 2010 – Sept. 30, 2010) periods for the first nine months of 2010. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. | ||||||
Three months ended Sept. 30, 2010 versus three months ended June 30, 2010 – Excluding non-cash LCM inventory charges of $171 million and $26 million in the second quarter and third quarters 2010, respectively, underlying EBITDA declined by $67 million versus the second quarter 2010, as an average ethylene sales price decrease of approximately 10 cents per pound was partially offset by an approximately 2 cent per pound decline in the company's average cost-of-ethylene-production metric (COE). Ethylene sales volume increased by approximately 130 million pounds compared to the second quarter 2010, as the scheduled maintenance turnaround at the Morris, Ill. facility was completed during the second quarter. Polyethylene (PE) results improved by approximately $75 million versus second quarter 2010 as PE benefitted from the lower ethylene price and additional production at Morris. Polypropylene results for the third quarter improved approximately $10 million. Total polyolefins sales volumes increased approximately 275 million pounds (14 percent) versus the second quarter with polyethylene sales accounting for the majority of the increase.
Three months ended Sept. 30, 2010 versus three months ended Sept. 30, 2009 – Excluding a non-cash third-quarter 2010 LCM inventory charge of $26 million, O&P – Americas results improved significantly versus the third quarter 2009 as the average ethylene sales price increased approximately 7 cents per pound while the company's COE remained relatively unchanged. Segment polyethylene results improved by approximately $10 million compared to third quarter 2009 based on an improved sales mix favoring domestic sales. Polypropylene results for the third quarter 2010 increased approximately $15 million versus third quarter 2009. Total polyolefins sales volumes increased approximately 100 million pounds (4 percent) versus the third quarter 2009. Increased polypropylene sales accounted for the majority of the sales volume increase.
Olefins & Polyolefins – Europe, Asia, International (O&P-EAI) – The primary products of this segment include ethylene, ethylene co-products (propylene and butadiene), polyethylene, polypropylene, global polypropylene compounds, Catalloy process resins and Polybutene-1 resins.
Table 4 – O&P-EAI Financial Overview (a) | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of dollars | Sept. 30, 2010 | June 30, 2010 (b) | Sept. 30, 2009 | 2010 (c) | 2009 | |
Operating income | $231 | $158 | $118 | $460 | $46 | |
EBITDA(R) | 289 | 252 | 186 | 693 | 290 | |
EBITDA(R) excluding LCM charges | 294 | 257 | N/A | 703 | N/A | |
(a) For all periods prior to May 1, 2010, operating income and EBITDAR are calculated on a current cost inventory basis. For periods on and after May 1, 2010, operating income and EBITDA are calculated using the LIFO method of inventory accounting. See Table 8. (b) Represents the combined second quarter 2010 predecessor (April 1, 2010 – April 30, 2010) and successor (May 1, 2010 – June 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (c) Represents the combined predecessor (Jan. 1, 2010 – April 30, 2010) and successor (May 1, 2010 – Sept. 30, 2010) periods for the first nine months of 2010. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. | ||||||
Three months ended Sept. 30, 2010 versus three months ended June 30, 2010 – Excluding non-cash LCM inventory charges of $5 million in each of the second and third quarters, EBITDA increased by $37 million versus the second quarter 2010. Higher olefins margins due to tight market conditions, caused in part by competitor outages and increased sales volumes due to the completion of the Berre olefins and polyolefins plant maintenance turnarounds during the second quarter, drove results higher. Higher polyolefins sales volumes of approximately 190 million pounds also contributed to the improved third-quarter results. Dividends received from joint ventures decreased by approximately $30 million as compared to the second quarter 2010.
Three months ended Sept. 30, 2010 versus three months ended Sept. 30, 2009 – Excluding a non-cash LCM inventory charge of $5 million in the third quarter 2010, EBITDA increased $108 million versus the third quarter 2009. Improved olefins and polyolefins margins accounted for the majority of the improved performance. Volume growth in polypropylene and polypropylene compounding, due in large part to increased demand from the automotive sector, also contributed to the improvement.
Intermediates & Derivatives (I&D) – The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol, isobutylene and tertiary butyl hydroperoxide) and derivatives (propylene glycol, propylene glycol ethers and butanediol); acetyls, ethylene oxide and its derivatives, and flavors and fragrances chemicals.
Table 5 – I&D Financial Overview (a) | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of dollars | Sept. 30, 2010 | June 30, 2010 (b) | Sept. 30, 2009 | 2010 (c) | 2009 | |
Operating income | $207 | $143 | $72 | $473 | $191 | |
EBITDA(R) | 243 | 184 | 143 | 623 | 401 | |
EBITDA(R) excluding LCM charges | 243 | 209 | N/A | 648 | N/A | |
(a) For all periods prior to May 1, 2010, operating income and EBITDAR are calculated on a current cost inventory basis. For periods on and after May 1, 2010, operating income and EBITDA are calculated using the LIFO method of inventory accounting. See Table 8. (b) Represents the combined second quarter 2010 predecessor (April 1, 2010 – April 30, 2010) and successor (May 1, 2010 – June 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (c) Represents the combined predecessor (Jan. 1, 2010 – April 30, 2010) and successor (May 1, 2010 – Sept. 30, 2010) periods for the first nine months of 2010. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. | ||||||
Three months ended Sept. 30, 2010 versus three months ended June 30, 2010 – Excluding a non-cash LCM inventory charge of $25 million in the second quarter 2010, EBITDA improved by $34 million versus the second quarter 2010. PO and PO derivatives results improved by approximately $50 million due to increased volumes and the benefit of price increases implemented in the second quarter that were realized in the third quarter. Intermediates results declined versus the second quarter 2010 due in part to operating problems within the ethylene oxide business, which have since been resolved.
Three months ended Sept. 30, 2010 versus three months ended Sept. 30, 2009 – I&D results improved significantly in the third quarter 2010 compared to the third quarter 2009. PO and PO derivatives results improved by approximately $120 million due to higher sales volumes of PO derivatives and improved margins of most products. Intermediates results declined by approximately $15 million versus third quarter 2009 as a result of the ethylene oxide operating problems and lower styrene results.
Refining & Oxyfuels (R&O) – The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, petrochemical raw materials, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE).
Table 6 – R&O Financial Overview (a) | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of dollars | Sept. 30, 2010 | June 30, 2010 (b) | Sept. 30, 2009 | 2010 (c) | 2009 | |
Operating income (loss) | $83 | $43 | $(33) | $(2) | $(157) | |
EBITDA(R) | 140 | 97 | 107 | 240 | 262 | |
EBITDA(R) excluding LCM charges | 141 | 229 | N/A | 373 | N/A | |
(a) For all periods prior to May 1, 2010, operating income and EBITDAR are calculated on a current cost inventory basis. For periods on and after May 1, 2010, operating income and EBITDA are calculated using the LIFO method of inventory accounting. See Table 8. (b) Represents the combined second quarter 2010 predecessor (April 1, 2010 – April 30, 2010) and successor (May 1, 2010 – June 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (c) Represents the combined predecessor (Jan. 1, 2010 – April 30, 2010) and successor (May 1, 2010 – Sept. 30, 2010) periods for the first nine months of 2010. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. | ||||||
Three months ended Sept. 30, 2010 versus three months ended June 30, 2010 – Excluding non-cash LCM inventory charges of $132 million and $1 million in the second-quarter and third-quarter 2010, respectively, EBITDA declined $88 million in the third quarter versus the second quarter 2010. Houston refinery performance declined by approximately $50 million. Crude volumes at the Houston refinery increased approximately 72,000 barrels per day compared to the second-quarter volumes which were low as a result of the May 17 crude unit fire. However, the average industry benchmark margin decreased approximately $4 per barrel during the quarter as gasoline and distillate spreads and the heavy crude differential all contracted. At the Berre refinery, industry benchmark margins decreased by approximately $1 per barrel, while volumes remained relatively unchanged. Oxyfuels results were relatively unchanged.
Three months ended Sept. 30, 2010 versus three months ended Sept. 30, 2009 – Excluding a non-cash 2010 LCM inventory charge of $1 million in the third quarter 2010, segment EBITDA improved $34 million versus the third quarter 2009. At the Houston refinery, an increase in the industry benchmark margin of approximately $5 per barrel was the primary contributor to the improved results. Berre refinery results were relatively unchanged. Oxyfuels results declined from a very strong third quarter 2009 due to lower margins.
Technology Segment – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.
Table 7 – Technology Financial Overview (a) | ||||||
Three months ended | Nine months ended Sept. 30 | |||||
Millions of dollars | Sept. 30, 2010 | June 30, 2010 (b) | Sept. 30, 2009 | 2010 (c) | 2009 | |
Operating income | $38 | $31 | $31 | $100 | $148 | |
EBITDA(R) | 78 | 43 | 66 | 168 | 233 | |
EBITDA(R) excluding LCM charges | 78 | 43 | N/A | 168 | N/A | |
(a) For all periods prior to May 1, 2010, operating income and EBITDAR are calculated on a current cost inventory basis. For periods on and after May 1, 2010, operating income and EBITDA are calculated using the LIFO method of inventory accounting. See Table 8. (b) Represents the combined second quarter 2010 predecessor (April 1, 2010 – April 30, 2010) and successor (May 1, 2010 – June 30, 2010) periods. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. (c) Represents the combined predecessor (Jan. 1, 2010 – April 30, 2010) and successor (May 1, 2010 – Sept. 30, 2010) periods for the first nine months of 2010. The predecessor and successor periods are not necessarily comparable in all respects. See Table 8 and endnote (1) of this release. | ||||||
Three months ended Sept. 30, 2010 versus three months ended June 30, 2010 – Results increased due to licensing and technology services improvement.
Three months ended Sept. 30, 2010 versus three months ended Sept. 30, 2009 – Results increased due to licensing and technology services improvement.
Liquidity
Company liquidity, which we define as cash and cash equivalents plus funds available through established lines of credit (less appropriate reserves and letters of credit), was approximately $6.1 billion at Sept. 30, 2010. The $6.1 billion of liquidity consisted of approximately $4.8 billion cash and approximately $1.2 billion of undrawn funds available through the $1.75 billion asset-based loan facility.
Capital Spending
Capital expenditures including maintenance turnaround and information technology related expenditures were $161 million during third quarter 2010, and $578 million for the first nine months of 2010.
CONFERENCE CALL
LyondellBasell will host a conference call today, Oct. 29, 2010, at 11:00 a.m. Eastern Time (ET). Participating on the call will be: Jim Gallogly, Chief Executive Officer; Kent Potter, Executive Vice President and Chief Financial Officer; Sergey Vasnetsov, Senior Vice President - Strategic Planning and Transactions; and Doug Pike, Vice President of Investor Relations. The toll-free dial-in number in the U.S. is 800-369-1176. For international numbers, please go to our website, www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 5300668.
A replay of the call will be available from 2:00 p.m. ET Oct. 29 to 08:00 a.m. ET on Nov. 29. The dial-in numbers are 866-510-4832 (U.S.) and +1 203-369-1941 (international). The pass code for each is 6352.
A copy of the slides that accompany the call will be available on our website at http://www.lyondellbasell.com/earnings.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 59 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 components, home furnishings, construction materials and biofuels. More information about LyondellBasell can be found at www.lyondellbasell.com.
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 ability to comply with the terms of our credit facilities and other financing arrangements; the costs and availability of financing; the ability to maintain adequate liquidity; the ability to implement business strategies; availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with the U.S. and worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and potential governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments; risks of doing business outside of the United States; access to capital markets; and other risk factors. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in our registration statements filed with the Securities and Exchange Commission, which are available at www.lyondellbasell.com/InvestorRelations.
(1) NON-GAAP MEASURES
This release makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures 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.
As a result of the company's emergence from Chapter 11 bankruptcy and the application of fresh-start accounting, the company reported its second quarter financial information for a predecessor period ending on April 30, 2010, the date of emergence from bankruptcy, and a successor period after such date in accordance with GAAP. For purposes of this press release, we have presented "combined" results of operations for the second quarter 2010 and for the nine months ended Sept. 30, 2010. The combined results for the three months ended June 30, 2010 are the sum of (i) the predecessor period of April 1, 2010 through April 30, 2010 and (ii) the successor period of May 1, 2010 through June 30, 2010. For the nine months ended Sept. 30, 2010, the combined results are the sum of (i) the first four months of 2010, representing the predecessor and (ii) the five months ended September 30, 2010, representing the successor period. The results of operations on the combined basis are non-GAAP because they combine two separate reporting entities. We have included the combined financial information because we believe it gives investors a better understanding of the year-over-year and sequential quarter comparisons. The primary impacts of both the Company's reorganization under Chapter 11 and the application of fresh-start accounting include (i) an increase in the value of inventory at April 30, 2010 required as a result of our emergence from Chapter 11 and the application of fresh-start accounting and a significant decrease from those values at June 30, 2010, as the market values of crude oil significantly decreased between those dates; (ii) lower depreciation and amortization expense in periods after April 30, 2010 as a result of the revaluation of assets in connection with fresh-start accounting; and (iii) lower interest expense in periods after April 30, 2010 as a result of the discharge of $9 billion of debt and the conversion of $9 billion of debt into equity as a result of the reorganization pursuant to Chapter 11. The significant decrease in inventory values at June 30, 2010 was a result of the application of U.S. GAAP; however, the amount of the decrease was exacerbated by the previous significant increase in values at April 30, 2010, when market values of crude oil had risen to annual highs. Inventory charges since the second quarter are required by U.S. GAAP and a result of changes in market values of crude oil.
We also include certain other non-GAAP measures, such as EBITDAR and EBITDA. While we believe that EBITDAR and EBITDA are measures commonly used by investors, EBITDAR and 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. For purposes of this release, EBITDAR means earnings before interest, taxes, depreciation, amortization and restructuring costs, as adjusted for certain unusual and non-recurring items such as impairment charges, reorganization items, the effect of mark-to-market accounting on our warrants and current cost inventory adjustments. EBITDA means earnings before interest, taxes, depreciation and amortization, as adjusted for the same items, to the extent applicable in the successor periods. EBITDAR and EBITDA both also include dividends from joint ventures. EBITDAR and EBITDA should not be considered as alternatives to profit or operating profit for any period as an indicator of our performance, or as alternatives to operating cash flows as a measure of our liquidity. Additionally, this release contains EBITDA(R), which represents a combined predecessor and successor periods when the predecessor period is adjusted for restructuring costs, therefore representing EBITDAR, and the successor period is not adjusted, because there were no restructuring costs, or any such costs are included in net income.
Reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures are provided in the financial tables at the end of this release.
Prior to emergence from Chapter 11, we utilized a combination of First-In, First-Out and Last-In, First-Out inventory methods for financial reporting. For purposes of evaluating segment results, management reviewed operating results using current cost, which approximates LIFO. As supplementary information, and for our segment reporting, we provide EBITDAR information on a current cost basis for periods prior to our emergence from Chapter 11. Since emergence from Chapter 11, we have utilized the LIFO inventory methodology and EBITDA information for periods after our emergence is on a LIFO basis. The combined financial results and measures that are disclosed in this press release, including EBITDAR and EBITDA, therefore use both current cost and LIFO methodologies.
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Media Contact: David Harpole (713) 309-4125
Investor Contact: Doug Pike (713) 309-4590
Table 8 - LyondellBasell Industries – Reconciliation of Segment Information to Consolidated Financial Information | ||||||||
Predecessor | ||||||||
2009 | ||||||||
(Millions of dollars) | Q1 | Q2 | Q3 | Q4 | YTD | |||
Sales and other operating revenues: (a) | ||||||||
Olefins and Polyolefins - Americas | $ 1,578 | $ 2,037 | $ 2,404 | $ 2,595 | $ 8,614 | |||
Olefins and Polyolefins - Europe, Asia, International | 1,719 | 2,170 | 2,651 | 2,861 | 9,401 | |||
Intermediates and Derivatives | 761 | 810 | 1,051 | 1,156 | 3,778 | |||
Refining and Oxyfuels | 2,265 | 3,167 | 3,506 | 3,140 | 12,078 | |||
Technology | 116 | 150 | 135 | 142 | 543 | |||
Other/elims | (539) | (835) | (1,135) | (1,077) | (3,586) | |||
Total | $ 5,900 | $ 7,499 | $ 8,612 | $ 8,817 | $ 30,828 | |||
Operating income (loss): (a) | ||||||||
Olefins and Polyolefins - Americas | $ (101) | $ 69 | $ 132 | $ 69 | $ 169 | |||
Olefins and Polyolefins - Europe, Asia, International | (74) | 2 | 118 | (44) | 2 | |||
Intermediates and Derivatives | 78 | 41 | 72 | 59 | 250 | |||
Refining and Oxyfuels | (44) | (80) | (33) | (200) | (357) | |||
Technology | 50 | 67 | 31 | 62 | 210 | |||
Other | (9) | (28) | 12 | 39 | 14 | |||
Current cost adjustment | (41) | 18 | 88 | (36) | 29 | |||
Total | $ (141) | $ 89 | $ 420 | $ (51) | $ 317 | |||
Depreciation and amortization: | ||||||||
Olefins and Polyolefins - Americas | $ 121 | $ 138 | $ 135 | $ 120 | $ 514 | |||
Olefins and Polyolefins - Europe, Asia, International | 70 | 98 | 62 | 86 | 316 | |||
Intermediates and Derivatives | 69 | 68 | 69 | 70 | 276 | |||
Refining and Oxyfuels | 137 | 142 | 139 | 139 | 557 | |||
Technology | 16 | 31 | 35 | 18 | 100 | |||
Other | 3 | 2 | 3 | 3 | 11 | |||
Total | $ 416 | $ 479 | $ 443 | $ 436 | $ 1,774 | |||
EBITDA(R): (a) (b) | ||||||||
Olefins and Polyolefins - Americas | $ 20 | $ 207 | $ 272 | $ 244 | $ 743 | |||
Olefins and Polyolefins - Europe, Asia, International | (5) | 109 | 186 | 51 | 341 | |||
Intermediates and Derivatives | 148 | 110 | 143 | 134 | 535 | |||
Refining and Oxyfuels | 93 | 62 | 107 | (7) | 255 | |||
Technology | 66 | 101 | 66 | 76 | 309 | |||
Other | 68 | (52) | 9 | 28 | 53 | |||
Total EBITDAR | 390 | 537 | 783 | 526 | 2,236 | |||
LCM and other inventory valuation adjustments | 55 | 34 | 20 | 18 | 127 | |||
Total excluding LCM and other inventory valuation adjustments | $ 445 | $ 571 | $ 803 | $ 544 | $ 2,363 | |||
Capital, turnarounds and IT deferred spending: | ||||||||
Olefins and Polyolefins - Americas | $ 39 | $ 31 | $ 31 | $ 68 | $ 169 | |||
Olefins and Polyolefins - Europe, Asia, International | 117 | 104 | 54 | 133 | 408 | |||
Intermediates and Derivatives | 5 | 5 | 9 | 24 | 43 | |||
Refining and Oxyfuels | 44 | 35 | 38 | 78 | 195 | |||
Technology | 10 | 6 | 10 | 6 | 32 | |||
Other | 2 | 3 | 2 | 1 | 8 | |||
Total | 217 | 184 | 144 | 310 | 855 | |||
Deferred charges included above | (20) | (11) | (16) | (29) | (76) | |||
Capital expenditures(c) | $ 197 | $ 173 | $ 128 | $ 281 | $ 779 | |||
(a) For periods prior to May 1, 2010, Predecessor segment operating income and EBITDAR were determined on a current cost basis. For periods following May 1, 2010, Successor operating income and EBITDA were determined using the LIFO method of inventory accounting. | ||||||||
(b) See Table 9 for a reconciliation of total EBITDAR excluding LCM and other inventory valuation adjustments to net income. | ||||||||
(c) Deferred IT spending is excluded from capital expenditures for all periods presented. Turnarounds, which are classified as property, plant and equipment from May 1, 2010, were excluded from capital expenditures for periods prior to May 1, 2010. | ||||||||
Table 8 - LyondellBasell Industries – Reconciliation of Segment Information to Consolidated Financial Information | ||||||||||||
Predecessor | Successor | Combined | Successor | Predecessor | Successor | Combined | ||||||
2010 | ||||||||||||
April 1 - | May 1 - | Jan. 1 - | May 1 - | |||||||||
(Millions of dollars) | Q1 | April 30 | June 30 | Q2 | Q3 | April 30 | Sept. 30 | YTD | ||||
Sales and other operating revenues: (a) | ||||||||||||
Olefins and Polyolefins - Americas | $ 3,020 | $ 1,163 | $ 2,004 | $ 3,167 | $ 3,247 | $ 4,183 | $ 5,251 | $ 9,434 | ||||
Olefins and Polyolefins - Europe, Asia, International | 3,119 | 1,066 | 2,140 | 3,206 | 3,247 | 4,105 | 5,387 | 9,492 | ||||
Intermediates and Derivatives | 1,316 | 504 | 940 | 1,444 | 1,453 | 1,820 | 2,393 | 4,213 | ||||
Refining and Oxyfuels | 3,415 | 1,333 | 2,403 | 3,736 | 3,867 | 4,748 | 6,270 | 11,018 | ||||
Technology | 110 | 35 | 75 | 110 | 157 | 145 | 232 | 377 | ||||
Other/elims | (1,225) | (389) | (790) | (1,179) | (1,669) | (1,534) | (2,459) | (3,993) | ||||
Total | $ 9,755 | $ 3,712 | $ 6,772 | $ 10,484 | $ 10,302 | $ 13,467 | $ 17,074 | $ 30,541 | ||||
Operating income (loss): (a) | ||||||||||||
Olefins and Polyolefins - Americas | $ 145 | $ 175 | $ 149 | $ 324 | $ 448 | $ 320 | $ 597 | $ 917 | ||||
Olefins and Polyolefins - Europe, Asia, International | 71 | 44 | 114 | 158 | 231 | 115 | 345 | 460 | ||||
Intermediates and Derivatives | 123 | 34 | 109 | 143 | 207 | 157 | 316 | 473 | ||||
Refining and Oxyfuels | (128) | 29 | 14 | 43 | 83 | (99) | 97 | (2) | ||||
Technology | 31 | 8 | 23 | 31 | 38 | 39 | 61 | 100 | ||||
Other | (59) | 18 | 13 | 31 | (19) | (41) | (6) | (47) | ||||
Current cost adjustment | 184 | 15 | - | 15 | - | 199 | - | 199 | ||||
Total | $ 367 | $ 323 | $ 422 | $ 745 | $ 988 | $ 690 | $ 1,410 | $ 2,100 | ||||
Depreciation and amortization: | ||||||||||||
Olefins and Polyolefins - Americas | $ 119 | $ 41 | $ 51 | $ 92 | $ 42 | $ 160 | $ 93 | $ 253 | ||||
Olefins and Polyolefins - Europe, Asia, International | 81 | 26 | 33 | 59 | 60 | 107 | 93 | 200 | ||||
Intermediates and Derivatives | 69 | 22 | 23 | 45 | 30 | 91 | 53 | 144 | ||||
Refining and Oxyfuels | 135 | 45 | 9 | 54 | 55 | 180 | 64 | 244 | ||||
Technology | 17 | 6 | 6 | 12 | 40 | 23 | 46 | 69 | ||||
Other | 3 | 1 | 7 | 8 | (5) | 4 | 2 | 6 | ||||
Total | $ 424 | $ 141 | $ 129 | $ 270 | $ 222 | $ 565 | $ 351 | $ 916 | ||||
EBITDA(R): (a) (b) | ||||||||||||
Olefins and Polyolefins - Americas | $ 274 | $ 216 | $ 198 | $ 414 | $ 492 | $ 490 | $ 690 | $ 1,180 | ||||
Olefins and Polyolefins - Europe, Asia, International | 152 | 78 | 174 | 252 | 289 | 230 | 463 | 693 | ||||
Intermediates and Derivatives | 196 | 56 | 128 | 184 | 243 | 252 | 371 | 623 | ||||
Refining and Oxyfuels | 3 | 76 | 21 | 97 | 140 | 79 | 161 | 240 | ||||
Technology | 47 | 14 | 29 | 43 | 78 | 61 | 107 | 168 | ||||
Other | (32) | 8 | 72 | 80 | (44) | (24) | 28 | 4 | ||||
Total EBITDA(R) | 640 | 448 | 622 | 1,070 | 1,198 | 1,088 | 1,820 | 2,908 | ||||
LCM and other inventory valuation adjustments | - | - | 333 | 333 | 32 | - | 365 | 365 | ||||
Total excluding LCM and other inventory valuation adjustments | $ 640 | $ 448 | $ 955 | $ 1,403 | $ 1,230 | $ 1,088 | $ 2,185 | $ 3,273 | ||||
Capital, turnarounds and IT deferred spending: | ||||||||||||
Olefins and Polyolefins - Americas | $ 69 | $ 20 | $ 50 | $ 70 | $ 40 | $ 89 | $ 90 | $ 179 | ||||
Olefins and Polyolefins - Europe, Asia, International | 59 | 43 | 31 | 74 | 32 | 102 | 63 | 165 | ||||
Intermediates and Derivatives | 7 | 5 | 5 | 10 | 39 | 12 | 44 | 56 | ||||
Refining and Oxyfuels | 64 | 15 | 22 | 37 | 34 | 79 | 56 | 135 | ||||
Technology | 10 | 2 | 3 | 5 | 7 | 12 | 10 | 22 | ||||
Other | 4 | 3 | 5 | 8 | 9 | 7 | 14 | 21 | ||||
Total | 213 | 88 | 116 | 204 | 161 | 301 | 277 | 578 | ||||
Deferred charges included above | (74) | (1) | (3) | (4) | (8) | (75) | (11) | (86) | ||||
Capital expenditures(c) | $ 139 | $ 87 | $ 113 | $ 200 | $ 153 | $ 226 | $ 266 | $ 492 | ||||
(a) For periods prior to May 1, 2010, Predecessor segment operating income and EBITDAR were determined on a current cost basis. For periods following May 1, 2010, Successor operating income and EBITDA were determined using the LIFO method of inventory accounting. | ||||||||||||
(b) See Table 9 for a reconciliation of total EBITDAR excluding LCM and other inventory valuation adjustments to net income. | ||||||||||||
(c ) Deferred IT spending is excluded from capital expenditures for all periods presented. Turnarounds, which are classified as property, plant and equipment from May 1, 2010, were excluded from capital expenditures for periods prior to May 1, 2010. | ||||||||||||
Table 9 – LyondellBasell Industries – Reconciliation of EBITDAR to Net Income | |||||||
Predecessor | |||||||
2009 | |||||||
(Millions of dollars) | Q1 | Q2 | Q3 | Q4 | YTD | ||
Segment EBITDAR: | |||||||
Olefins and Polyolefins - Americas | $ 20 | $ 207 | $ 272 | $ 244 | $ 743 | ||
Olefins and Polyolefins - Europe, Asia, International | (5) | 109 | 186 | 51 | 341 | ||
Intermediates and Derivatives | 148 | 110 | 143 | 134 | 535 | ||
Refining and Oxyfuels | 93 | 62 | 107 | (7) | 255 | ||
Technology | 66 | 101 | 66 | 76 | 309 | ||
Other | 68 | (52) | 9 | 28 | 53 | ||
Total EBITDAR | 390 | 537 | 783 | 526 | 2,236 | ||
LCM and other inventory valuation adjustments | 55 | 34 | 20 | 18 | 127 | ||
Total EBITDAR excluding LCM and other inventory valuation adjustments | 445 | 571 | 803 | 544 | 2,363 | ||
Add: | |||||||
Income (loss) from equity investment | (20) | 22 | (168) | (15) | (181) | ||
Unrealized foreign exchange (loss) gain | 15 | 98 | 141 | (61) | 193 | ||
Deduct: | |||||||
LCM and other inventory valuation adjustments | (55) | (34) | (20) | (18) | (127) | ||
Depreciation and amortization | (416) | (479) | (443) | (436) | (1,774) | ||
Impairment charge | - | (5) | - | (12) | (17) | ||
Reorganization items | (948) | (124) | (928) | (961) | (2,961) | ||
Interest expense, net | (425) | (498) | (441) | (413) | (1,777) | ||
Joint venture dividends received | (2) | (7) | (12) | (5) | (26) | ||
Benefit from income taxes | 432 | 87 | 332 | 560 | 1,411 | ||
Fair value change in warrants | - | - | - | - | - | ||
Current cost adjustment to inventory | (41) | 18 | 88 | (36) | 29 | ||
Other | (2) | (2) | (3) | 3 | (4) | ||
Net loss | (1,017) | (353) | (651) | (850) | (2,871) | ||
Less: Net loss attributable to non-controlling interests | 1 | 2 | 1 | 2 | 6 | ||
Net loss attributable to the Company | $ (1,016) | $ (351) | $ (650) | $ (848) | $ (2,865) | ||
Table 9 – LyondellBasell Industries – Reconciliation of EBITDAR to Net Income | ||||||||||||
Predecessor | Successor | Combined | Successor | Predecessor | Successor | Combined | ||||||
2010 | ||||||||||||
April 1 - | May 1 - | Jan. 1 - | May 1 - | |||||||||
(Millions of dollars) | Q1 | April 30 | June 30 | Q2 | Q3 | April 30 | Sept. 30 | YTD | ||||
Segment EBITDA(R): | ||||||||||||
Olefins and Polyolefins - Americas | $ 274 | $ 216 | $ 198 | $ 414 | $ 492 | $ 490 | $ 690 | $ 1,180 | ||||
Olefins and Polyolefins - Europe, Asia, International | 152 | 78 | 174 | 252 | 289 | 230 | 463 | 693 | ||||
Intermediates and Derivatives | 196 | 56 | 128 | 184 | 243 | 252 | 371 | 623 | ||||
Refining and Oxyfuels | 3 | 76 | 21 | 97 | 140 | 79 | 161 | 240 | ||||
Technology | 47 | 14 | 29 | 43 | 78 | 61 | 107 | 168 | ||||
Other | (32) | 8 | 72 | 80 | (44) | (24) | 28 | 4 | ||||
Total EBITDA(R) (a) | 640 | 448 | 622 | 1,070 | 1,198 | 1,088 | 1,820 | 2,908 | ||||
LCM and other inventory valuation adjustments | - | - | 333 | 333 | 32 | - | 365 | 365 | ||||
Total EBITDA(R) excluding LCM and other inventory valuation adjustments | 640 | 448 | 955 | 1,403 | 1,230 | 1,088 | 2,185 | 3,273 | ||||
Add: | ||||||||||||
Income from equity investment | 55 | 29 | 27 | 56 | 29 | 84 | 56 | 140 | ||||
Unrealized foreign exchange loss | (202) | (62) | (14) | (76) | (7) | (264) | (21) | (285) | ||||
Deduct: | ||||||||||||
LCM and other inventory valuation adjustments | - | - | (333) | (333) | (32) | - | (365) | (365) | ||||
Depreciation and amortization | (424) | (141) | (129) | (270) | (222) | (565) | (351) | (916) | ||||
Impairment charge | (3) | (6) | - | (6) | - | (9) | - | (9) | ||||
Reorganization items | 207 | 7,803 | (8) | 7,795 | (13) | 8,010 | (21) | 7,989 | ||||
Interest expense, net | (409) | (299) | (120) | (419) | (186) | (708) | (306) | (1,014) | ||||
Joint venture dividends received | (13) | (5) | (28) | (33) | - | (18) | (28) | (46) | ||||
(Provision for) benefit from income taxes | (12) | 705 | (28) | 677 | (254) | 693 | (282) | 411 | ||||
Fair value change in warrants | - | - | 17 | 17 | (76) | - | (59) | (59) | ||||
Current cost adjustment to inventory | 184 | 15 | - | 15 | - | 199 | - | 199 | ||||
Other | (15) | 9 | 8 | 17 | (2) | (6) | 6 | - | ||||
Net income | 8 | 8,496 | 347 | 8,843 | 467 | 8,504 | 814 | 9,318 | ||||
Less: Net (income) loss attributable to non-controlling interests | 2 | 58 | (5) | 53 | 7 | 60 | 2 | 62 | ||||
Net income attributable to the Company | $ 10 | $ 8,554 | $ 342 | $ 8,896 | $ 474 | $ 8,564 | $ 816 | $ 9,380 | ||||
Table 10 – LyondellBasell Industries – Selected Segment Operating Information | |||||||
2009 | |||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||
Olefins and Polyolefins - Americas | |||||||
Volumes (million pounds) | |||||||
Ethylene produced | 1,988 | 2,094 | 2,037 | 2,010 | 8,129 | ||
Propylene produced | 676 | 731 | 799 | 706 | 2,912 | ||
Polyethylene sold | 1,236 | 1,342 | 1,505 | 1,416 | 5,499 | ||
Polypropylene sold | 541 | 656 | 606 | 613 | 2,416 | ||
Market Prices | |||||||
West Texas Intermediate crude oil (USD per barrel) | 43.31 | 59.79 | 68.24 | 76.13 | 62.09 | ||
Natural gas (USD per million BTUs) | 4.22 | 3.44 | 3.32 | 4.16 | 3.78 | ||
U.S. weighted average cost of ethylene production (cents/pound) | 23.84 | 24.63 | 23.80 | 32.55 | 26.20 | ||
U.S. ethylene (cents/pound) | 31.50 | 31.50 | 32.25 | 40.50 | 33.94 | ||
U.S. polyethylene (high density) (cents/pound) | 59.67 | 65.00 | 69.33 | 72.00 | 66.50 | ||
U.S. propylene (cents/pound) | 24.83 | 32.00 | 46.17 | 48.67 | 37.92 | ||
U.S. polypropylene (homopolymer) (cents/pound) | 51.50 | 58.50 | 72.67 | 75.00 | 64.42 | ||
Olefins and Polyolefins - Europe, Asia, International | |||||||
Volumes (million pounds) | |||||||
Ethylene produced | 785 | 926 | 924 | 868 | 3,503 | ||
Propylene produced | 467 | 567 | 586 | 529 | 2,149 | ||
Polyethylene sold | 1,117 | 1,234 | 1,260 | 1,416 | 5,027 | ||
Polypropylene sold | 1,591 | 1,749 | 1,505 | 2,013 | 6,858 | ||
Market Prices | |||||||
Western Europe weighted average cost of ethylene production (euro 0.01 per pound) | 22.1 | 23.3 | 22.8 | 27.0 | 23.8 | ||
Western Europe ethylene (euro 0.01 per pound) | 27.0 | 31.2 | 37.0 | 38.3 | 33.4 | ||
Western Europe polyethylene (high density) (euro 0.01 per pound) | 37.5 | 39.9 | 47.2 | 47.0 | 42.9 | ||
Western Europe propylene (euro 0.01 per pound) | 20.9 | 23.9 | 32.0 | 33.9 | 27.7 | ||
Western Europe polypropylene (homopolymer) (euro 0.01 per pound) | 34.3 | 35.8 | 44.0 | 45.2 | 39.9 | ||
Intermediates and Derivatives | |||||||
Volumes (million pounds) | |||||||
Propylene oxide and derivatives | 681 | 576 | 737 | 701 | 2,695 | ||
Ethylene oxide and derivatives | 224 | 275 | 299 | 265 | 1,063 | ||
Styrene monomer | 394 | 514 | 666 | 717 | 2,291 | ||
Acetyls | 290 | 464 | 495 | 433 | 1,682 | ||
TBA Intermediates | 290 | 274 | 386 | 431 | 1,381 | ||
Refining and Oxyfuels | |||||||
Volumes | |||||||
Houston Refining crude processing rate (thousands of barrels per day) | 269 | 231 | 262 | 212 | 244 | ||
Berre refinery crude processing rate (thousands of barrels per day) | 86 | 93 | 84 | 81 | 86 | ||
MTBE/ETBE sales volumes (million gallons) | 205 | 220 | 243 | 163 | 831 | ||
Market margins | |||||||
WTI - 2-1-1 (USD per barrel) | 9.64 | 7.39 | 6.25 | 4.65 | 6.98 | ||
WTI - Maya (USD per barrel) | 4.46 | 4.58 | 5.03 | 6.65 | 5.18 | ||
Urals 4-1-2-1 (USD per barrel) | 6.96 | 5.69 | 5.10 | 4.52 | 5.57 | ||
ETBE - Northwest Europe (cents per gallon) | 46.4 | 101.2 | 70.1 | 56.8 | 68.6 | ||
Source: CMAI, Bloomberg, LyondellBasell Industries | |||||||
. | |||||||
Table 10 – LyondellBasell Industries – Selected Segment Operating Information | ||||||
2010 | ||||||
Q1 | Q2 | Q3 | YTD | |||
Olefins and Polyolefins - Americas | ||||||
Volumes (million pounds) | ||||||
Ethylene produced | 2,019 | 1,998 | 2,184 | 6,201 | ||
Propylene produced | 755 | 777 | 790 | 2,322 | ||
Polyethylene sold | 1,339 | 1,265 | 1,517 | 4,121 | ||
Polypropylene sold | 615 | 670 | 672 | 1,957 | ||
Market Prices | ||||||
West Texas Intermediate crude oil (USD per barrel) | 78.88 | 78.05 | 76.09 | 77.65 | ||
Natural gas (USD per million BTUs) | 5.36 | 4.04 | 4.35 | 4.58 | ||
U.S. weighted average cost of ethylene production (cents/pound) | 34.36 | 26.71 | 25.36 | 28.81 | ||
U.S. ethylene (cents/pound) | 52.33 | 45.58 | 38.33 | 45.42 | ||
U.S. polyethylene (high density) (cents/pound) | 83.33 | 84.00 | 77.67 | 81.67 | ||
U.S. propylene (cents/pound) | 61.50 | 63.33 | 56.17 | 60.33 | ||
U.S. polypropylene (homopolymer) (cents/pound) | 87.83 | 89.83 | 82.67 | 86.78 | ||
Olefins and Polyolefins - Europe, Asia, International | ||||||
Volumes (million pounds) | ||||||
Ethylene produced | 861 | 842 | 994 | 2,697 | ||
Propylene produced | 509 | 540 | 624 | 1,673 | ||
Polyethylene sold | 1,364 | 1,230 | 1,316 | 3,910 | ||
Polypropylene sold | 1,590 | 1,763 | 1,889 | 5,242 | ||
Market Prices | ||||||
Western Europe weighted average cost of ethylene production (euro 0.01 per pound) | 28.7 | 27.3 | 26.5 | 27.5 | ||
Western Europe ethylene (euro 0.01 per pound) | 41.6 | 43.7 | 43.1 | 42.8 | ||
Western Europe polyethylene (high density) (euro 0.01 per pound) | 51.4 | 53.8 | 52.4 | 52.5 | ||
Western Europe propylene (euro 0.01 per pound) | 38.9 | 45.1 | 43.1 | 42.4 | ||
Western Europe polypropylene (homopolymer) (euro 0.01 per pound) | 51.3 | 60.3 | 60.3 | 57.3 | ||
Intermediates and Derivatives | ||||||
Volumes (million pounds) | ||||||
Propylene oxide and derivatives | 869 | 781 | 872 | 2,522 | ||
Ethylene oxide and derivatives | 265 | 250 | 206 | 721 | ||
Styrene monomer | 589 | 780 | 827 | 2,196 | ||
Acetyls | 379 | 439 | 405 | 1,223 | ||
TBA Intermediates | 472 | 470 | 454 | 1,396 | ||
Refining and Oxyfuels | ||||||
Volumes | ||||||
Houston Refining crude processing rate (thousands of barrels per day) | 263 | 189 | 261 | 237 | ||
Berre refinery crude processing rate (thousands of barrels per day) | 73 | 99 | 99 | 90 | ||
MTBE/ETBE sales volumes (million gallons) | 189 | 236 | 248 | 673 | ||
Market margins | ||||||
WTI - 2-1-1 (USD per barrel) | 6.85 | 10.45 | 7.60 | 8.31 | ||
WTI - Maya (USD per barrel) | 8.94 | 9.54 | 8.54 | 9.00 | ||
Urals 4-1-2-1 (USD per barrel) | 5.91 | 7.33 | 5.89 | 6.32 | ||
ETBE - Northwest Europe (cents per gallon) | 49.1 | 71.7 | 45.2 | 56.0 | ||
Source: CMAI, Bloomberg, LyondellBasell Industries | ||||||
Table 11 – LyondellBasell Industries – Unaudited Income Statement Information | |||||||
Predecessor | |||||||
2009 | |||||||
(Millions of dollars, except per share data) | Q1 | Q2 | Q3 | Q4 | YTD | ||
Sales and other operating revenues | $ 5,900 | $ 7,499 | $ 8,612 | $ 8,817 | $ 30,828 | ||
Cost of sales | 5,792 | 7,158 | 7,956 | 8,610 | 29,516 | ||
Selling, general and administrative expenses | 207 | 227 | 199 | 217 | 850 | ||
Research and development expenses | 42 | 25 | 38 | 40 | 145 | ||
Operating income (loss) | (141) | 89 | 419 | (50) | 317 | ||
Income (loss) from equity investments | (20) | 22 | (168) | (15) | (181) | ||
Interest expense, net | (425) | (498) | (441) | (413) | (1,777) | ||
Other income (expense), net | 85 | 71 | 135 | 29 | 320 | ||
Income (loss) before income taxes and reorganization items | (501) | (316) | (55) | (449) | (1,321) | ||
Reorganization items | (948) | (124) | (928) | (961) | (2,961) | ||
Income (loss) before income taxes | (1,449) | (440) | (983) | (1,410) | (4,282) | ||
Provision for (benefit from) income taxes | (432) | (87) | (332) | (560) | (1,411) | ||
Net income (loss) | (1,017) | (353) | (651) | (850) | (2,871) | ||
Less: Net (income) loss attributable to non-controlling interests | 1 | 2 | 1 | 2 | 6 | ||
Net income (loss) attributable to the Company | $ (1,016) | $ (351) | $ (650) | $ (848) | $ (2,865) | ||
Table 11 – LyondellBasell Industries – Unaudited Income Statement Information | ||||||||||||
Predecessor | Successor | Combined | Successor | Predecessor | Successor | Combined | ||||||
2010 | ||||||||||||
April 1 - | May 1 - | Jan. 1 - | May 1 - | |||||||||
(Millions of dollars, except per share data) | Q1 | April 30 | June 30 | Q2 | Q3 | April 30 | Sept. 30 | YTD | ||||
Sales and other operating revenues | $ 9,755 | $ 3,712 | $ 6,772 | $ 10,484 | $ 10,302 | $ 13,467 | $ 17,074 | $ 30,541 | ||||
Cost of sales | 9,130 | 3,284 | 6,198 | 9,482 | 9,075 | 12,414 | 15,273 | 27,687 | ||||
Selling, general and administrative expenses | 217 | 91 | 129 | 220 | 204 | 308 | 333 | 641 | ||||
Research and development expenses | 41 | 14 | 23 | 37 | 35 | 55 | 58 | 113 | ||||
Operating income (loss) | 367 | 323 | 422 | 745 | 988 | 690 | 1,410 | 2,100 | ||||
Income (loss) from equity investments | 55 | 29 | 27 | 56 | 29 | 84 | 56 | 140 | ||||
Interest expense, net | (409) | (299) | (120) | (419) | (186) | (708) | (306) | (1,014) | ||||
Other income (expense), net | (200) | (65) | 54 | (11) | (97) | (265) | (43) | (308) | ||||
Income (loss) before income taxes and reorganization items | (187) | (12) | 383 | 371 | 734 | (199) | 1,117 | 918 | ||||
Reorganization Items | 207 | 7,803 | (8) | 7,795 | (13) | 8,010 | (21) | 7,989 | ||||
Income (loss) before income taxes | 20 | 7,791 | 375 | 8,166 | 721 | 7,811 | 1,096 | 8,907 | ||||
Provision for (benefit from) income taxes | 12 | (705) | 28 | (677) | 254 | (693) | 282 | (411) | ||||
Net income (loss) | 8 | 8,496 | 347 | 8,843 | 467 | 8,504 | 814 | 9,318 | ||||
Less: Net (income) loss attributable to non-controlling interests | 2 | 58 | (5) | 53 | 7 | 60 | 2 | 62 | ||||
Net income (loss) attributable to the Company | $ 10 | $ 8,554 | $ 342 | $ 8,896 | $ 474 | $ 8,564 | $ 816 | $ 9,380 | ||||
Table 12 – LyondellBasell Industries – Unaudited Cash Flow Information | |||||||
Predecessor | |||||||
2009 | |||||||
(Millions of dollars) | Q1 | Q2 | Q3 | Q4 | YTD | ||
Cash flows from operating activities: | |||||||
Net loss | $ (1,017) | $ (353) | $ (651) | $ (850) | $ (2,871) | ||
Adjustments: | |||||||
Depreciation and amortization | 416 | 479 | 443 | 436 | 1,774 | ||
Amortization of debt-related costs | 98 | 144 | 136 | 128 | 506 | ||
Inventory valuation adjustment | 55 | 34 | 20 | 18 | 127 | ||
Equity investments - | |||||||
Equity (income) loss | 20 | (22) | 168 | 15 | 181 | ||
Distributions of earnings | 2 | 7 | 12 | 5 | 26 | ||
Deferred income taxes | (434) | (122) | (338) | (505) | (1,399) | ||
Reorganization-related payments, net | (22) | (68) | (93) | (157) | (340) | ||
Reorganization and fresh-start accounting adjustments, net | 948 | 124 | 928 | 961 | 2,961 | ||
Payment of Claims under Plan of Reorganization | |||||||
Unrealized foreign currency exchange (gain) loss. | (15) | (98) | (141) | 61 | (193) | ||
Changes in assets and liabilities: | |||||||
Accounts receivable | 332 | (470) | (79) | 88 | (129) | ||
Inventories | 310 | 140 | (211) | (279) | (40) | ||
Accounts payable | (213) | 193 | (102) | 221 | 99 | ||
Repayment of accounts receivable securitization facility | (503) | - | - | - | (503) | ||
Prepaid expenses and other current assets | (107) | (189) | 54 | (87) | (329) | ||
Other, net | (441) | (90) | 17 | (143) | (657) | ||
Net cash provided by (used in) operating activities | (571) | (291) | 163 | (88) | (787) | ||
Cash flows from investing activities: | |||||||
Expenditures for property, plant and equipment | (197) | (173) | (128) | (281) | (779) | ||
Proceeds from insurance claims | 16 | 56 | - | 48 | 120 | ||
Other | 8 | 28 | (16) | 28 | 48 | ||
Net cash used in investing activities | (173) | (89) | (144) | (205) | (611) | ||
Cash flows from financing activities: | |||||||
Issuance of Class B common stock | - | - | - | - | - | ||
Net borrowings (repayments) under debtor-in-possession facilities and notes | 2,048 | 270 | (145) | 138 | 2,311 | ||
Net repayments under pre-petition revolving credit facilities | (766) | - | - | - | (766) | ||
Net borrowings (repayments) under revolving credit facilities and other short-term debts | (539) | 154 | 25 | 98 | (262) | ||
Net borrowings (repayments) under long-term debt | (49) | (5) | (9) | (5) | (68) | ||
Payments of debt and equity issuance costs | (93) | - | - | - | (93) | ||
Other | - | - | (25) | 4 | (21) | ||
Net cash provided by (used in) financing activities | 601 | 419 | (154) | 235 | 1,101 | ||
Effect of exchange rate changes on cash | (25) | 17 | 8 | (3) | (3) | ||
Increase (decrease) in cash and cash equivalents | (168) | 56 | (127) | (61) | (300) | ||
Cash and cash equivalents at beginning of period | 858 | 690 | 746 | 619 | 858 | ||
Cash and cash equivalents at end of period | $ 690 | $ 746 | $ 619 | $ 558 | $ 558 | ||
Table 12 – LyondellBasell Industries – Unaudited Cash Flow Information | ||||||||||||
Predecessor | Successor | Combined | Successor | Predecessor | Successor | Combined | ||||||
2010 | ||||||||||||
April 1 - | May 1 - | January 1 - | May 1 - | |||||||||
(Millions of dollars) | Q1 | April 30 | June 30 | Q2 | Q3 | April 30 | Sept. 30 | YTD | ||||
Cash flows from operating activities: | ||||||||||||
Net income | $ 8 | $ 8,496 | $ 347 | $ 8,843 | $ 467 | $ 8,504 | $ 814 | $ 9,318 | ||||
Adjustments: | ||||||||||||
Depreciation and amortization | 424 | 141 | 129 | 270 | 222 | 565 | 351 | 916 | ||||
Amortization of debt-related costs | 106 | 201 | 5 | 206 | 10 | 307 | 15 | 322 | ||||
Inventory valuation adjustment | - | - | 333 | 333 | 32 | - | 365 | 365 | ||||
Equity investments - | ||||||||||||
Equity (income) loss | (55) | (29) | (27) | (56) | (29) | (84) | (56) | (140) | ||||
Distributions of earnings | 13 | 5 | 28 | 33 | - | 18 | 28 | 46 | ||||
Deferred income taxes | (15) | (755) | (3) | (758) | 188 | (770) | 185 | (585) | ||||
Reorganization-related payments, net | (87) | (60) | (92) | (152) | (45) | (147) | (137) | (284) | ||||
Reorganization and fresh-start accounting adjustments, net | (207) | (7,803) | 8 | (7,795) | 13 | (8,010) | 21 | (7,989) | ||||
Payment of claims under Plan of Reorganization | - | (260) | (183) | (443) | (14) | (260) | (197) | (457) | ||||
Unrealized foreign currency exchange loss | 202 | 62 | 14 | 76 | 7 | 264 | 21 | 285 | ||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | (480) | (170) | 139 | (31) | (105) | (650) | 34 | (616) | ||||
Inventories | (384) | 16 | 56 | 72 | 75 | (368) | 131 | (237) | ||||
Accounts payable | 122 | 127 | 226 | 353 | (59) | 249 | 167 | 416 | ||||
Repayment of accounts receivable securitization facility | - | - | - | - | - | - | - | - | ||||
Prepaid expenses and other current assets | 158 | (111) | (8) | (119) | 158 | 47 | 150 | 197 | ||||
Other, net | (178) | (423) | 132 | (291) | 205 | (601) | 337 | (264) | ||||
Net cash provided by (used in) operating activities | (373) | (563) | 1,104 | 541 | 1,125 | (936) | 2,229 | 1,293 | ||||
Cash flows from investing activities: | ||||||||||||
Expenditures for property, plant and equipment | (139) | (87) | (113) | (200) | (153) | (226) | (266) | (492) | ||||
Proceeds from insurance claims | - | - | - | - | - | - | - | - | ||||
Other | 12 | 1 | 4 | 5 | (4) | 13 | - | 13 | ||||
Net cash used in investing activities | (127) | (86) | (109) | (195) | (157) | (213) | (266) | (479) | ||||
Cash flows from financing activities: | ||||||||||||
Issuance of Class B common stock | - | 2,800 | - | 2,800 | - | 2,800 | - | 2,800 | ||||
Net borrowings (repayments) under debtor-in-possession facilities and notes | 522 | (3,017) | - | (3,017) | - | (2,495) | - | (2,495) | ||||
Net repayments under pre-petition revolving credit facilities | - | - | - | - | - | - | - | - | ||||
Net borrowings (repayments) under revolving credit facilities and other short-term debts | (4) | 36 | 130 | 166 | (79) | 32 | 51 | 83 | ||||
Net borrowings (repayments) under long-term debt | (9) | 3,242 | - | 3,242 | - | 3,233 | - | 3,233 | ||||
Payments of debt and equity issuance costs | (13) | (240) | (2) | (242) | - | (253) | (2) | (255) | ||||
Other | (6) | 4 | 5 | 9 | (9) | (2) | (4) | (6) | ||||
Net cash provided by (used in) financing activities | 490 | 2,825 | 133 | 2,958 | (88) | 3,315 | 45 | 3,360 | ||||
Effect of exchange rate changes on cash | (11) | (2) | (86) | (88) | 199 | (13) | 113 | 100 | ||||
Increase (decrease) in cash and cash equivalents | (21) | 2,174 | 1,042 | 3,216 | 1,079 | 2,153 | 2,121 | 4,274 | ||||
Cash and cash equivalents at beginning of period | 558 | 537 | 2,711 | 537 | 3,753 | 558 | 2,711 | 558 | ||||
Cash and cash equivalents at end of period | $ 537 | $ 2,711 | $ 3,753 | $ 3,753 | $ 4,832 | $ 2,711 | $ 4,832 | $ 4,832 | ||||
Table 13 – LyondellBasell Industries – Unaudited Balance Sheet Information | ||||||
Predecessor | ||||||
2009 | ||||||
(Millions of dollars) | March 31 | June 30 | Sept. 30 | Dec. 31 | ||
Cash and cash equivalents | $ 690 | $ 746 | $ 619 | $ 558 | ||
Short-term investments | 22 | 18 | 21 | 11 | ||
Accounts receivable, net | 2,710 | 3,273 | 3,374 | 3,287 | ||
Inventories | 2,872 | 2,755 | 2,984 | 3,277 | ||
Prepaid expenses and other current assets | 921 | 1,284 | 979 | 1,133 | ||
Total current assets | 7,215 | 8,076 | 7,977 | 8,266 | ||
Property, plant and equipment, net | 15,372 | 15,351 | 15,299 | 15,152 | ||
Investments and long-term receivables: | ||||||
Investment in PO joint ventures | 942 | 934 | 943 | 922 | ||
Equity investments | 1,093 | 1,148 | 1,014 | 1,085 | ||
Other investments and long-term receivables | 84 | 85 | 90 | 112 | ||
Goodwill | - | - | - | - | ||
Intangible assets, net | 2,380 | 2,257 | 1,959 | 1,861 | ||
Other assets, net | 344 | 324 | 361 | 363 | ||
Total assets | $ 27,430 | $ 28,175 | $ 27,643 | $ 27,761 | ||
Current maturities of long-term debt | $ 10,483 | $ 9,207 | $ 501 | $ 497 | ||
Short-term debt | 5,613 | 5,995 | 5,912 | 6,182 | ||
Accounts payable | 1,683 | 2,264 | 1,780 | 2,128 | ||
Accrued liabilities | 1,488 | 1,388 | 1,387 | 1,390 | ||
Deferred income taxes | 235 | 269 | 240 | 170 | ||
Total current liabilities | 19,502 | 19,123 | 9,820 | 10,367 | ||
Long-term debt | 304 | 302 | 307 | 305 | ||
Other liabilities | 1,517 | 1,406 | 1,433 | 1,361 | ||
Deferred income taxes | 2,745 | 2,706 | 2,472 | 2,081 | ||
Liabilities subject to compromise | 10,466 | 12,019 | 21,636 | 22,494 | ||
Stockholders' equity | (7,221) | (7,502) | (8,149) | (8,976) | ||
Non-controlling interests | 117 | 121 | 124 | 129 | ||
Total liabilities and stockholders' equity | $ 27,430 | $ 28,175 | $ 27,643 | $ 27,761 | ||
Table 13 – LyondellBasell Industries – Unaudited Balance Sheet Information | ||||||
Predecessor | Successor | |||||
March 31, | June 30, | Sept. 30, | ||||
(Millions of dollars) | 2010 | 2010 | 2010 | |||
Cash and cash equivalents | $ 537 | $ 3,753 | $ 4,832 | |||
Short-term investments | 2 | - | - | |||
Accounts receivable, net | 3,642 | 3,533 | 3,800 | |||
Inventories | 3,590 | 4,372 | 4,412 | |||
Prepaid expenses and other current assets | 946 | 1,029 | 899 | |||
Total current assets | 8,717 | 12,687 | 13,943 | |||
Property, plant and equipment, net | 14,687 | 6,839 | 7,216 | |||
Investments and long-term receivables: | ||||||
Investment in PO joint ventures | 880 | 434 | 447 | |||
Equity investments | 1,125 | 1,507 | 1,572 | |||
Other investments and long-term receivables | 90 | 77 | 64 | |||
Goodwill | - | 1,061 | 1,105 | |||
Intangible assets, net | 1,748 | 1,427 | 1,411 | |||
Other assets, net | 338 | 257 | 272 | |||
Total assets | $ 27,585 | $ 24,289 | $ 26,030 | |||
Current maturities of long-term debt | $ 487 | $ 8 | $ 8 | |||
Short-term debt | 6,675 | 557 | 518 | |||
Accounts payable | 2,213 | 2,526 | 2,562 | |||
Accrued liabilities | 1,220 | 1,199 | 1,513 | |||
Deferred income taxes | 163 | 444 | 446 | |||
Total current liabilities | 10,758 | 4,734 | 5,047 | |||
Long-term debt | 304 | 6,745 | 6,799 | |||
Other liabilities | 1,317 | 2,013 | 2,086 | |||
Deferred income taxes | 2,012 | 867 | 1,155 | |||
Liabilities subject to compromise | 22,058 | - | - | |||
Stockholders' equity | (8,975) | 9,868 | 10,882 | |||
Non-controlling interests | 111 | 62 | 61 | |||
Total liabilities and stockholders' equity | $ 27,585 | $ 24,289 | $ 26,030 | |||
SOURCE LyondellBasell Industries
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