LYONDELLBASELL INDUSTRIES N.V. HOUSTON and LONDON, April 24, 2015 /PRNewswire/ --
First Quarter 2015 Highlights
-- Income from continuing operations: $1.17 billion ($1.23 billion
excluding LCM(1))
-- Diluted earnings per share: $2.42 per share ($2.54 per share excluding
LCM, our highest diluted quarterly EPS ever)
-- EBITDA: $1.95 billion ($2.04 billion excluding LCM)
-- Share repurchases and dividends totaled $1.69 billion; repurchased 15.7
million shares during the first quarter, more than 3% of the outstanding
shares
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2015 of $1.17 billion, or $2.42 diluted earnings per share. First quarter 2015 EBITDA was approximately $1.95 billion.
Comparisons with the prior quarter and first quarter 2014 are available in the following table:
Table 1
-
Earnings
Summary
---------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions
of
U.S.
dollars
(except
share
data) 2015 2014 2014
-------- ---- ---- ----
Sales
and
other
operating
revenues $8,185 $10,290 $11,135
---------- ------ ------- -------
Net
income(a) 1,164 791 944
---------- ----- --- ---
Income
from
continuing
operations(b) 1,167 796 943
-------------- ----- --- ---
Diluted
earnings
per
share
(U.S.
dollars):
----------
Net income(c) 2.41 1.54 1.72
------------ ---- ---- ----
Income from continuing
operations(b) 2.42 1.57 1.72
----------------------- ---- ---- ----
Diluted
share
count
(millions) 481 499 548
----------- --- --- ---
EBITDA(d) 1,952 1,406 1,668
-------- ----- ----- -----
Excluding
LCM
Impact:
---------
LCM,
pre-
tax 92 715 - -
----- --- --- ---
Income
from
continuing
operations(b) 1,225 1,251 943
-------------- ----- ----- ---
Diluted
earnings
per
share
(U.S.
dollars):
----------
Income from continuing
operations(b) 2.54 2.48 1.72
----------------------- ---- ---- ----
EBITDA(d) 2,044 2,121 1,668
-------- ----- ----- -----
(a) Includes net loss attributable to
non-controlling interests and income
(loss) from discontinued operations,
net of tax. See Table 10.
(b) See Table 11 for charges and
benefits to income from continuing
operations.
(c) Includes diluted earnings (loss)
per share attributable to discontinued
operations.
(d) See the end of this release for an
explanation of the Company's use of
EBITDA and Table 8 for reconciliations
of EBITDA to net income and income
from continuing operations.
(1) LCM stands for "lower of cost or
market." An explanation of LCM and why
we have excluded it from our financial
information in this press release can
be found at the end of this press
release under "Information Related to
Financial Measures."
The first quarter included a $92 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($58 million after tax). This charge is somewhat unique to our 2010 company formation when all assets and liabilities were measured at fair value, our use of LIFO accounting, and the recent declines in pricing for many of our raw material and finished goods inventories. Excluding the LCM adjustment, earnings from continuing operations during the first quarter totaled $1.2 billion, or $2.54 per share, and EBITDA was $2.0 billion.
"The first quarter of 2015 continued at a pace that made 2014 a record year. Excluding the LCM inventory impacts, first quarter diluted earnings per share of $2.54 was a new quarterly high for LyondellBasell, and EBITDA exceeded $2.0 billion for the third consecutive quarter. We have generated EBITDA of $8.2 billion over the past twelve months excluding the impacts of the LCM. Quarterly EBITDA has been very steady during this period. During the first quarter, we achieved these strong results in a market in which crude oil price declines pressured product prices. However, the abundance of low cost natural gas-based raw materials, supply and demand tightness in several products, and our flexible portfolio provided balance to offset the impact of lower prices. Our business portfolio proves to be resilient in a volatile market environment, delivering strong results," said Bob Patel, LyondellBasell Chief Executive Officer.
OUTLOOK
"During the first few weeks of April, business conditions within our olefins and polyolefins segments have been relatively consistent with the first quarter. Planned and unplanned industry downtime has continued to support polyolefins pricing. Additionally, in the U.S., NGL feedstock inventories stand at or near record levels, production has remained strong, and NGL prices are low. During the quarter, we expect our Intermediate and Derivatives segment to benefit from normal seasonal trends. Thus far, Refining industry spreads have declined versus the first quarter but remain healthy," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia, International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins and Polyolefins - Americas (O&P-Americas) - The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.
Table 2 -
O&P-Americas
Financial Overview
-------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of U.S.
dollars 2015 2014 2014
---------------- ---- ---- ----
Operating income $934 $950 $656
---------------- ---- ---- ----
EBITDA 1,031 1,040 736
------ ----- ----- ---
LCM, pre-tax 43 234 - -
------------ --- --- ---
EBITDA excluding LCM 1,074 1,274 736
-------------------- ----- ----- ---
Three months ended March 31, 2015 versus three months ended December 31, 2014 -EBITDA declined versus the fourth quarter of 2014 by $200 million, excluding a $191 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins results declined by $280 million as the price of ethylene declined by approximately 14 cents per pound, which was partially offset by a slightly lower cost of ethylene production. Polyolefin results improved by approximately $75 million principally due to stronger spreads. Polyethylene and polypropylene spreads improved by approximately 4 and 3 cents per pound, respectively. Joint venture equity income increased by $2 million.
Three months ended March 31, 2015 versus three months ended March 31, 2014 - EBITDA increased by $338 million versus the first quarter 2014, excluding a $43 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins improved by $245 million primarily due to higher operating rates and sales volumes as the first quarter of 2014 was impacted by scheduled and unscheduled operating disruptions. The price of ethylene declined by approximately 13 cents per pound. This negative impact was partially offset by the lower cost of production in the first quarter of 2015. Polyolefin results improved by approximately $85 million as a result of increased volumes and improved spreads. Polyethylene and polypropylene spreads improved by approximately 3 and 5 cents per pound, respectively. Joint venture equity income increased by $3 million.
Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) - The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, polypropylene compounds (global), Catalloy process resins and polybutene-1 resins.
Table 3 -O&P-EAI
Financial
Overview
----------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of U.S.
dollars 2015 2014 2014
---------------- ---- ---- ----
Operating income $236 $246 $225
---------------- ---- ---- ----
EBITDA 357 348 356
------ --- --- ---
LCM, pre-tax - - 44 - -
------------ --- --- ---
EBITDA excluding
LCM 357 392 356
---------------- --- --- ---
Three months ended March 31, 2015 versus three months ended December 31, 2014 - EBITDA declined by $35 million versus the fourth quarter 2014, excluding a $44 million quarter to quarter variance as a result of the fourth quarter LCM inventory adjustment. Olefin results declined by $105 million primarily due to a lower ethylene price which declined by approximately 14 cents per pound. Raw materials with an economic advantage to naphtha represented 49 percent of ethylene production during the first quarter of 2015. Increased volumes were primarily responsible for an approximately $45 million increase in polyolefins respectively. Combined polypropylene compounds and polybutene-1 followed typical seasonal trends as results improved by approximately $30 million. Equity income increased by $1 million.
Three months ended March 31, 2015 versus three months ended March 31, 2014 - EBITDA was relatively unchanged versus the first quarter 2014. The first quarter of 2014 included a $52 million positive environmental settlement. Olefin results increased by approximately $10 million primarily due to higher ethylene margins from a lower cost of naphtha. Combined polyolefin results increased by approximately $60 million. Margin and spreads in European ethylene and polyolefins were relatively unchanged in dollars while increasing on a Euro basis. Polyethylene and polypropylene volumes each increased by 20 percent. Combined polypropylene compounds and polybutene-1 results were relatively unchanged. Equity income increased by $3 million.
Intermediates and Derivatives (I&D) - The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol (TBA), isobutylene and tertiary butyl hydroperoxide), and derivatives (propylene glycol, propylene glycol ethers and butanediol), acetyls (including methanol), ethylene oxide and its derivatives, ethanol, and oxyfuels.
Table 4 -I&D
Financial Overview
-------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of U.S.
dollars 2015 2014 2014
---------------- ---- ---- ----
Operating income $271 $208 $316
---------------- ---- ---- ----
EBITDA 337 271 375
------ --- --- ---
LCM, pre-tax 44 93 - -
------------ --- --- ---
EBITDA excluding LCM 381 364 375
-------------------- --- --- ---
Three months ended March 31, 2015 versus three months ended December 31, 2014 - EBITDA increased by $17 million versus the fourth quarter 2014, excluding a $49 million quarter to quarter variance as a result of the LCM inventory adjustments. Propylene oxide and derivative results improved by approximately $15 million due to higher volumes. Intermediate chemical results increased by $35 million primarily as a result of higher margins. The negative impact of the Channelview methanol plant turnaround was offset by increased results in EO/EG, styrene and C4 chemicals. Oxyfuels results declined by approximately $35 million due to lower margins following strong fourth quarter 2014 results. Equity income increased by $2 million.
Three months ended March 31, 2015 versus three months ended March 31, 2014 - EBITDA increased by $6 million versus the first quarter 2014, excluding a $44 million quarter to quarter variance as a result of the LCM inventory adjustment. Propylene oxide and derivative results were relatively unchanged. Intermediate chemical results were relatively unchanged as lower acetyl and EO/EG results were offset by higher styrene results. Oxyfuels results were also relatively unchanged. Equity income increased by $2 million.
Refining - The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials.
Table 5 -Refining Financial
Overview
---------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions
of U.S.
dollars 2015 2014 2014
-------- ---- ---- ----
Operating
income
(loss) $74 ($354) $86
--------- --- ----- ---
EBITDA 149 (311) 129
------ --- ---- ---
LCM, pre-
tax 5 344 - -
--------- --- --- ---
EBITDA
excluding
LCM 154 33 129
---------- --- --- ---
Three months ended March 31, 2015 versus three months ended December 31, 2014 - EBITDA increased by $121 million versus the fourth quarter 2014, excluding a $339 million quarter to quarter variance as a result of the LCM inventory adjustments. Crude oil throughput declined by 25,000 barrels per day as rates were primarily constrained by maintenance internally and at a third party off-gas processor. The Maya 2-1-1 industry benchmark spread increased by approximately $6 per barrel, averaging $23.74 per barrel. The refinery spread increased somewhat less than the benchmark. The percentage of combined Canadian and light crudes approximately doubled versus the fourth quarter of 2014.
Three months ended March 31, 2015 versus three months ended March 31, 2014 - Versus the first quarter of 2014, EBITDA increased by $25 million, excluding a $5 million quarter to quarter variance as a result of the LCM inventory adjustment. Crude oil throughput declined by 6,000 barrels per day in the first quarter of 2015. The Maya 2-1-1 spread declined by approximately $4.52 per barrel. The refinery spread was relatively unchanged year over year, declining by $0.34 per barrel. During the first quarter of 2014, yields, capture rates, and throughput were negatively impacted by maintenance. The cost of RIN's increased by approximately $10 million.
Technology - The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.
Table 6 -Technology
Financial Overview
-------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of U.S.
dollars 2015 2014 2014
---------------- ---- ---- ----
Operating income $64 $29 $60
---------------- --- --- ---
EBITDA 76 44 76
------ --- --- ---
Three months ended March 31, 2015 versus three months ended December 31, 2014 - EBITDA increased by $32 million. Increased catalyst results represented approximately two thirds of the increase.
Three months ended March 31, 2015 versus three months ended March 31, 2014 - EBITDA was unchanged. Catalyst results improved while licensing declined.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $306 million during the first quarter 2015. Our cash and short-term securities balance was $3.6 billion at March 31, 2015. We repurchased 15.7 million of our outstanding ordinary shares during the first quarter of 2015. There were 475 million common shares outstanding as of March 31, 2015. The company paid dividends of $334 million during the first quarter of 2015 and issued $1.0 billion in bonds at a coupon rate of 4.625% due in 2055.
CONFERENCE CALL
LyondellBasell will host a conference call April 24 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.
The toll-free dial-in number in the U.S. is 888-677-1826. A complete listing of toll-free numbers by country is available at www.lyb.com/teleconference for international callers. The pass code for all numbers is 4843334.
The slides and webcast that accompany the call will be available at http://www.lyb.com/earnings.
A replay of the call will be available from 2 p.m. ET April 24 until May 24 at 11 p.m. ET. The replay dial-in numbers are 800-839-4837 (U.S.) and +1 203-369-3588 (international). The pass code for each is 4558.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyb.com) manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2014, which can be found at www.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.
INFORMATION RELATED TO FINANCIAL 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. The non-GAAP measures we have presented include income from continuing operations excluding LCM, diluted earnings per share excluding LCM, EBITDA and EBITDA excluding LCM. LCM stands for "lower of cost or market," which is an accounting rule consistent with GAAP related to the valuation of inventory. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, which results in us writing down the value of inventory to market value in accordance with the LCM rule, consistent with GAAP. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA and earnings and EBITDA excluding LCM, 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. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.
EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternative to operating cash flows as a measure of our liquidity. We have also presented financial information herein exclusive of adjustments for LCM.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 8 at the end of this release.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 7 - Reconciliation of Segment Information to Consolidated Financial Information (a)
----------------------------------------------------------------------------------------
2014 2015
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1
------------------ --- --- --- --- ----- ---
Sales and other
operating revenues:
Olefins &
Polyolefins -
Americas $3,357 $3,462 $3,750 $3,379 $13,948 $2,551
Olefins &
Polyolefins -
EAI 3,778 4,069 3,995 3,361 15,203 2,911
Intermediates &
Derivatives 2,429 2,706 2,691 2,304 10,130 1,918
Refining 2,756 3,250 3,146 2,558 11,710 1,607
Technology 136 144 107 110 497 136
Other/elims (1,321) (1,514) (1,623) (1,422) (5,880) (938)
------ ------ ------ ------ ------ ----
Continuing
Operations $11,135 $12,117 $12,066 $10,290 $45,608 $8,185
======= ======= ======= ======= ======= ======
Operating income
(loss):
Olefins &
Polyolefins -
Americas $656 $898 $1,068 $950 $3,572 $934
Olefins &
Polyolefins -
EAI 225 190 223 246 884 236
Intermediates &
Derivatives 316 375 321 208 1,220 271
Refining 86 95 67 (354) (106) 74
Technology 60 56 26 29 171 64
Other (3) (1) 1 (2) (5) (4)
--- --- --- --- --- ---
Continuing
Operations $1,340 $1,613 $1,706 $1,077 $5,736 $1,575
====== ====== ====== ====== ====== ======
Depreciation and
amortization:
Olefins &
Polyolefins -
Americas $73 $74 $84 $85 $316 $86
Olefins &
Polyolefins -
EAI 70 67 65 46 248 55
Intermediates &
Derivatives 55 56 55 59 225 60
Refining 42 42 42 43 169 74
Technology 16 15 16 14 61 12
Continuing
Operations $256 $254 $262 $247 $1,019 $287
==== ==== ==== ==== ====== ====
EBITDA: (b)
Olefins &
Polyolefins -
Americas $736 $978 $1,157 $1,040 $3,911 $1,031
Olefins &
Polyolefins -
EAI 356 319 343 348 1,366 357
Intermediates &
Derivatives 375 430 383 271 1,459 337
Refining 129 137 110 (311) 65 149
Technology 76 71 41 44 232 76
Other (4) 6 1 14 17 2
--- --- --- --- --- ---
Continuing
Operations $1,668 $1,941 $2,035 $1,406 $7,050 $1,952
====== ====== ====== ====== ====== ======
Capital, turnarounds
and IT deferred
spending:
Olefins &
Polyolefins -
Americas $231 $306 $208 $167 $912 $149
Olefins &
Polyolefins -
EAI 33 27 45 86 191 38
Intermediates &
Derivatives 45 52 50 94 241 76
Refining 32 20 27 44 123 33
Technology 2 6 6 11 25 6
Other - - 4 2 1 7 4
--- --- --- --- --- ---
Continuing
Operations $343 $415 $338 $403 $1,499 $306
==== ==== ==== ==== ====== ====
(a) EBITDA as presented herein includes the impacts of pre-tax LCM adjustments of $45 million and $715 million in the third and fourth quarters of 2014, respectively, and $92 million in the first quarter of 2015. See Tables 2 through 6 for LCM adjustments recorded for each
segment.
(b) See Table 8 for EBITDA calculation.
Table 8 - EBITDA Calculation
----------------------------
2014 2015
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1
------------- --- --- --- --- ----- ---
Net income
attributable to
the Company
shareholders(a) $945 $1,178 $1,258 $793 $4,174 $1,166
Net income
(loss)
attributable to
non-
controlling
interests (1) (2) (1) (2) (6) (2)
(Income) loss
from
discontinued
operations, net
of tax (1) (3) 3 5 4 3
Income from
continuing
operations(a) 943 1,173 1,260 796 4,172 1,167
Provision
for income
taxes 383 425 434 298 1,540 440
Depreciation
and
amortization 256 254 262 247 1,019 287
Interest
expense,
net 86 89 79 65 319 58
--- --- --- --- --- ---
EBITDA(b) $1,668 $1,941 $2,035 $1,406 $7,050 $1,952
========
(a) Amounts presented herein include after-tax LCM adjustments of $28 million and $455 million in the third and fourth quarters of 2014, respectively, and $58 million in the first quarter of 2015.
(b) EBITDA as presented herein includes pre-tax LCM adjustments of $45 million and $715 million in the third and fourth quarters of 2014, respectively, and $92 million in the first quarter of 2015.
Table 9 - Selected Segment Operating Information
------------------------------------------------
2014 2015
---- ----
Q1 Q2 Q3 Q4 Total Q1
--- --- --- --- ----- ---
Olefins and
Polyolefins -
Americas
Volumes (million
pounds)
-----------------
Ethylene
produced 1,979 1,721 2,301 2,458 8,459 2,364
Propylene
produced 611 648 559 719 2,537 805
Polyethylene
sold 1,406 1,451 1,577 1,486 5,920 1,497
Polypropylene
sold 614 632 681 596 2,523 633
Benchmark Market
Prices
-----------------
West Texas
Intermediate
crude oil
(USD per
barrel) 98.61 102.99 97.25 73.20 92.91 48.57
Light
Louisiana
Sweet ("LLS")
crude oil
(USD per
barrel) 104.36 105.55 101.03 76.58 96.92 52.84
Natural gas
(USD per
million BTUs) 5.01 4.74 4.19 4.09 4.51 2.76
U.S. weighted
average cost
of ethylene
production
(cents/
pound) 20.0 17.1 14.5 10.5 15.4 10.2
U.S. ethylene
(cents/
pound) 48.3 47.2 51.8 44.8 48.0 34.8
U.S.
polyethylene
[high
density]
(cents/
pound) 76.3 77.0 78.0 76.7 77.0 65.7
U.S. propylene
(cents/
pound) 73.3 69.7 70.8 69.8 70.9 49.7
U.S.
polypropylene
[homopolymer]
(cents/
pound) 88.3 84.7 86.3 85.8 86.3 67.7
Olefins and
Polyolefins -
Europe, Asia,
International
Volumes (million
pounds)
-----------------
Ethylene
produced 989 1,024 1,039 1,059 4,111 1,007
Propylene
produced 582 617 629 618 2,446 600
Polyethylene
sold 1,275 1,363 1,284 1,254 5,176 1,533
Polypropylene
sold 1,509 1,707 1,633 1,561 6,410 1,817
Benchmark Market
Prices (EUR0.01
per pound)
-----------------
Western Europe
weighted
average cost
of ethylene
production 32.9 34.3 31.5 18.2 29.2 22.9
Western Europe
ethylene 54.7 52.8 54.1 48.7 52.6 39.3
Western Europe
polyethylene
[high
density] 56.1 54.8 55.4 51.5 54.5 45.2
Western Europe
propylene 51.3 52.2 51.9 46.5 50.5 37.1
Western Europe
polypropylene
[homopolymer] 59.9 61.3 61.4 57.0 59.9 49.8
Intermediates and
Derivatives
Volumes (million
pounds)
-----------------
Propylene
oxide and
derivatives 772 726 768 781 3,047 870
Ethylene oxide
and
derivatives 262 319 211 226 1,018 268
Styrene
monomer 683 870 933 870 3,356 903
Acetyls 683 592 613 619 2,507 547
TBA
Intermediates 416 391 461 384 1,652 433
Volumes (million
gallons)
-----------------
MTBE/ETBE 188 266 245 216 915 229
Benchmark Market
Margins (cents
per gallon)
-----------------
MTBE -
Northwest
Europe 63.4 90.7 111.8 109.1 94.0 64.0
Refining
Volumes
(thousands of
barrels per day)
-----------------
Heavy crude
oil
processing
rate 247 257 264 266 259 241
Benchmark Market
Margins
-----------------
Light crude
oil -2-1-1 13.18 17.29 14.20 8.50 13.32 15.02
Light crude
oil -Maya
differential 15.08 9.72 10.15 9.22 11.11 8.72
Source: LYB and third party consultants
Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. Volumes presented represent third party sales of selected key products.
Table 10 - Unaudited Income Statement Information
-------------------------------------------------
2014 2015
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1
------------------ --- --- --- --- ----- ---
Sales and other
operating revenues $11,135 $12,117 $12,066 $10,290 $45,608 $8,185
Cost of sales(a) 9,577 10,255 10,118 8,989 38,939 6,379
Selling, general and
administrative
expenses 186 215 211 194 806 205
Research and
development
expenses 32 34 31 30 127 26
Operating
income(a) 1,340 1,613 1,706 1,077 5,736 1,575
Income from equity
investments 61 68 64 64 257 69
Interest expense,
net (86) (89) (79) (65) (319) (58)
Other income, net 11 6 3 18 38 21
Income from
continuing
operations
before income
taxes(a) 1,326 1,598 1,694 1,094 5,712 1,607
Provision for income
taxes 383 425 434 298 1,540 440
Income from
continuing
operations(b) 943 1,173 1,260 796 4,172 1,167
Income (loss) from
discontinued
operations, net of
tax 1 3 (3) (5) (4) (3)
Net income(b) 944 1,176 1,257 791 4,168 1,164
Net loss
attributable to
non-controlling
interest 1 2 1 2 6 2
Net income
attributable
to the
Company
shareholders(b) $945 $1,178 $1,258 $793 $4,174 $1,166
==== ====== ====== ==== ====== ======
(a) Amounts included herein include pre-tax LCM adjustments of $45 million and $715 million in the third and fourth quarters of 2014, respectively, and $92 million in the first quarter of 2015.
(b) Amounts included herein include after-tax LCM adjustments of $28 million and $455 million in the third and fourth quarters of 2014, respectively, and $58 million in the first quarter of 2015.
Table 11 - Charges (Benefits) Included in Income from Continuing Operations
---------------------------------------------------------------------------
2014 2015
---- ----
Millions of U.S. dollars
(except share data) Q1 Q2 Q3 Q4 Total Q1
------------------------ --- --- --- --- ----- ---
Pretax charges (benefits):
Settlement of
environmental
indemnification
agreement $(52) $ - - $ - - $ - - $(52) $ - -
Lower of cost
or market
inventory
adjustment - - - - 45 715 760 92
Emission
allowance
credits,
amortization - - - - - - - - - - 35
Total pretax charges (benefits) (52) - - 45 715 708 127
Provision for (benefit from) income tax
related to these items - - - - (17) (260) (277) (47)
--- --- --- ---- ---- ---
After-tax effect of net
charges (benefits) $(52) $ - - $28 $455 $431 $80
==== === === === ==== ==== ===
Effect on diluted earnings per
share $0.09 $ - - $(0.05) $(0.91) $(0.82) $(0.17)
Table 12 - Unaudited Cash Flow Information
------------------------------------------
2014 2015
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1
------------- --- --- --- --- ----- ---
Net cash
provided by
operating
activities $801 $1,797 $1,434 $2,016 $6,048 $1,468
Net cash used
in investing
activities (2,011) (246) (638) (636) (3,531) (443)
Net cash used
in financing
activities (550) (2,217) (1,621) (1,519) (5,907) (401)
Table 13 - Unaudited Balance Sheet Information
----------------------------------------------
March 31, June 30, September 30, December 31, March 31,
(Millions of U.S.
dollars) 2014 2014 2014 2014 2015
------------------ ---- ---- ---- ---- ----
Cash and cash
equivalents $2,702 $2,030 $1,185 $1,031 $1,616
Restricted cash 3 2 - - 2 2
Short-term
investments 1,402 1,299 1,544 1,593 1,478
Accounts
receivable, net 4,141 4,264 4,105 3,448 3,089
Inventories 5,589 5,326 5,359 4,517 4,267
Prepaid expenses
and other current
assets 1,156 784 739 1,054 1,195
----- --- --- ----- -----
Total current
assets 14,993 13,705 12,932 11,645 11,647
Property, plant and
equipment, net 8,556 8,740 8,600 8,758 8,430
Investments and
long-term
receivables:
Investment in
PO joint
ventures 424 418 397 384 373
Equity
investments 1,693 1,702 1,690 1,636 1,581
Other
investments
and long-
term
receivables 62 58 54 44 38
Goodwill 605 602 576 566 533
Intangible assets,
net 870 838 799 769 695
Other assets 624 593 583 481 709
--- --- --- --- ---
Total assets $27,827 $26,656 $25,631 $24,283 $24,006
======= ======= ======= ======= =======
Current maturities
of long-term debt $3 $3 $2 $4 $4
Short-term debt 58 55 56 346 514
Accounts payable 3,642 3,690 3,431 3,064 2,631
Accrued liabilities 1,477 1,310 1,460 1,554 1,482
Deferred income
taxes 540 570 685 469 429
--- --- --- --- ---
Total current
liabilities 5,720 5,628 5,634 5,437 5,060
Long-term debt 6,766 6,766 6,753 6,757 7,749
Other liabilities 1,838 1,851 1,795 2,122 2,038
Deferred income
taxes 1,677 1,623 1,574 1,623 1,653
Stockholders'
equity 11,791 10,753 9,843 8,314 7,478
Non-controlling
interests 35 35 32 30 28
--- --- --- --- ---
Total
liabilities
and
stockholders'
equity $27,827 $26,656 $25,631 $24,283 $24,006
======= ======= ======= ======= =======
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SOURCE LyondellBasell Industries
