LyondellBasell Reports Third-Quarter 2010 Results

Oct 29, 2010, 06:00 ET from LyondellBasell Industries

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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