LYONDELLBASELL INDUSTRIES N.V. HOUSTON and LONDON, July 25, 2014 /PRNewswire/ --
Second-Quarter 2014 Highlights
-- Record quarterly EBITDA of $1.94 billion
-- Record diluted earnings per share of $2.22; income from continuing
operations of $1.17 billion
-- Solid results in all segments, with O&P Americas segment approaching
EBITDA of $1 billion
-- Completed initial 10% share repurchase and initiated purchases under
second 10% authorization; repurchased approximately 19 million shares
during the quarter
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2014 of $2.22 diluted earnings per share, or $1.17 billion. Second quarter 2014 EBITDA was $1.94 billion. The increase from the first quarter 2014 was primarily due to Olefins and Polyolefins - Americas segment results.
Comparisons with the prior quarter and second quarter 2013 are shown below:
Table 1 - Earnings Summary
--------------------------
Three Months Ended Six Months Ended
------------------
June 30, March 31, June 30, June 30,
--------
Millions of U.S. dollars (except share data) 2014 2014 2013 2014 2013
---- ---- ---- ---- ----
Sales and other operating revenues $12,117 $11,135 $11,103 $23,252 $21,772
---------------------------------- ------- ------- ------- ------- -------
Net income(a) 1,176 944 927 2,120 1,827
------------ ----- --- --- ----- -----
Income from continuing operations(b) 1,173 943 923 2,116 1,829
----------------------------------- ----- --- --- ----- -----
Diluted earnings per share (U.S. dollars):
------------------------------------------
Net income(c) 2.23 1.72 1.61 3.94 3.16
------------ ---- ---- ---- ---- ----
Income from continuing operations(b) 2.22 1.72 1.60 3.93 3.16
----------------------------------- ---- ---- ---- ---- ----
Diluted share count (millions) 527 548 578 537 578
----------------------------- --- --- --- --- ---
EBITDA(d) 1,941 1,668 1,652 3,609 3,237
-------- ----- ----- ----- ----- -----
(a) Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10.
(b) Please see Table 11 for charges and benefits to income from continuing operations.
(c) Includes diluted earnings per share attributable to discontinued operations.
(d) See the end of this release for an explanation of the Company's use of EBITDA and Table 8 for reconciliations of EBITDA to income
from continuing operations.
"We had record earnings this quarter of $2.22 per share, while our EBITDA approached $2 billion. Importantly, every segment contributed to this achievement. Of particular note was the strength in our Olefins and Polyolefins- Americas segment which generated nearly $1 billion of EBITDA even while we were performing significant scheduled maintenance at our La Porte ethylene site. In addition to the strong quarterly earnings, we repurchased approximately 19 million of our shares during the second quarter, completing the initial 10 percent share repurchase authorization. We also initiated repurchases under the second 10 percent authorization," said Jim Gallogly, LyondellBasell Chief Executive Officer.
"As encouraging as these results are, we did not fully deliver on our reliability expectations, and the quarterly earnings could have been better. Specifically, we were late in completing our La Porte ethylene turnaround in part due to a mechanical issue with a compressor. Both supplier upsets and mechanical issues impacted our Intermediates and Derivatives business as well. Despite these temporary setbacks, our commitment to Operational Excellence continues to be the foundation of our success," Gallogly said.
"Industry fundamentals remain strong, and we continue to execute on our investment program. During the third quarter we expect to begin production from the 800 million pound per year La Porte ethylene expansion. This is the first of three ethylene expansions and continues to put us well ahead of new greenfield plants pursued by others in the industry," Gallogly added.
OUTLOOK
"During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment. U.S. oil, natural gas, and natural gas liquids production remain strong. Together these support margins in our Olefins and Polyolefins - Americas, Intermediates and Derivatives, and Refining segments. However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant," Gallogly noted.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Olefins and Polyolefins - Americas (O&P-Americas) - The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.
Table 2 - O&P-Americas Financial Overview
-----------------------------------------
Three Months Ended Six Months Ended
------------------
June 30, March 31, June 30, June 30,
--------
Millions of U.S. dollars 2014 2014 2013 2014 2013
------------------------ ---- ---- ---- ---- ----
Operating income $898 $656 $872 $1,554 $1,693
---------------- ---- ---- ---- ------ ------
EBITDA 978 736 951 1,714 1,849
------ --- --- --- ----- -----
Three months ended June 30, 2014 versus three months ended March 31, 2014 - The segment achieved record EBITDA results in the second quarter of 2014. EBITDA increased $242 million versus the first quarter 2014. Compared to the prior period, olefins results increased approximately $220 million. The first quarter was negatively impacted by ethylene purchases and inventory build in preparation for the second quarter La Porte plant turnaround. The second quarter was also negatively impacted, but to a lesser extent, by the delayed restart of the La Porte olefin plant and the subsequent purchase of ethylene. This impacted results by approximately $50 million. Olefins benefited in the second quarter from lower NGL costs and improved co-product values. Combined polyolefin results increased by approximately $20 million from the first quarter 2014 driven by higher polyethylene margins. The ethylene to polyethylene price spread increased 2 cents per pound. Joint venture equity income increased by $2 million.
Three months ended June 30, 2014 versus three months ended June 30, 2013 - EBITDA increased $27 million versus the second quarter 2013. Olefins results declined approximately $130 million compared to the prior year period. Olefins sales and production volumes declined. However, margins benefited from lower NGL costs and higher co-product values. The price of ethylene decreased by approximately 2 cents per pound compared to the prior year period. Polyethylene results increased by approximately $150 million as the ethylene to polyethylene price spread improved by 10 cents per pound and sales volumes increased approximately 4 percent versus the prior year period. Polypropylene results increased by approximately $15 million due to slightly higher margins. Joint venture equity income decreased by $2 million.
Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) - The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, global polypropylene compounds, Catalloy process resins and polybutene-1 resins.
Table 3 - O&P-EAI Financial Overview
------------------------------------
Three Months Ended Six Months
Ended
------------------
June 30, March 31, June 30, June 30,
--------
Millions of U.S. dollars 2014 2014 2013 2014 2013
------------------------ ---- ---- ---- ---- ----
Operating income $190 $225 $189 $415 $282
---------------- ---- ---- ---- ---- ----
EBITDA 319 356 295 675 520
------ --- --- --- --- ---
Three months ended June 30, 2014 versus three months ended March 31, 2014 - EBITDA decreased $37 million versus the first quarter 2014. Excluding the benefits of a $52 million environmental settlement in the first quarter, EBITDA increased by $15 million. Olefins results increased modestly. Naphtha cost increases and a decline in the price of ethylene of approximately 2 cents per pound were more than offset by increased co-product prices and from cracking more advantaged feedstocks. Approximately 55 percent of our ethylene production was sourced from advantaged raw materials. Combined polyolefin results increased from higher volumes. Combined polypropylene compounds and polybutene-1 results were unchanged. Equity income from joint ventures increased by $9 million from the first quarter 2014.
Three months ended June 30, 2014 versus three months ended June 30, 2013 - EBITDA increased $24 million versus the second quarter 2013. Olefins results declined by approximately $20 million as a result of margins that were lower by approximately 3 cents per pound. This was partially mitigated by higher operating rates and from higher butadiene volumes following a 2013 expansion project. Combined polyolefin results increased primarily as a result of higher polyethylene and polypropylene margins of approximately 1 cent per pound. Polypropylene compounds and polybutene-1 results decreased by approximately $10 million from the prior year period as a result of lower polypropylene compound margins. Equity income from joint ventures increased $32 million from the second quarter 2013.
Intermediates and Derivatives (I&D) - The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol (TBA), isobutylene and tertiary butyl hydroperoxide), and derivatives (propylene glycol, propylene glycol ethers and butanediol), acetyls (acetic acid, vinyl acetate monomer and methanol), ethylene oxide and its derivatives, and oxyfuels.
Table 4 -I&D Financial
Overview
----------------------
Three Months Ended Six Months
Ended
------------------
June 30, March 31, June 30, June 30,
--------
Millions of U.S. dollars 2014 2014 2013 2014 2013
------------------------ ---- ---- ---- ---- ----
Operating income $375 $316 $285 $691 $608
---------------- ---- ---- ---- ---- ----
EBITDA 430 375 338 805 711
------ --- --- --- --- ---
Three months ended June 30, 2014 versus three months ended March 31, 2014 - EBITDA increased $55 million versus the first quarter 2014. Results for PO and PO derivatives decreased by approximately $20 million. Seasonally lower sales of propylene glycol sold into aircraft deicing were offset by higher sales of propylene oxide. Solvent margins declined. Intermediate chemicals results increased by approximately $10 million as styrene and ethylene glycol volumes improved. Additionally, acetic acid, vinyl acetate, and styrene margins improved but lower margins from methanol and ethylene glycol pricing partially offset the benefit. Oxyfuels results improved by approximately $70 million due to seasonal increases in both volume and margin. Equity income from joint ventures decreased by $4 million.
Three months ended June 30, 2014 versus three months ended June 30, 2013 - EBITDA increased $92 million compared to the second quarter 2013. Results for PO and PO derivatives increased by approximately $25 million primarily due to higher volumes. Intermediate chemicals results were higher by approximately $60 million due to higher methanol and styrene volumes, and higher methanol and vinyl acetate margins. Oxyfuels results increased by approximately $10 million. Equity income from joint ventures decreased by $5 million from the second quarter in 2013.
Refining - The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials.
Table 5 - Refining Financial Overview
-------------------------------------
Three Months Ended Six Months Ended
------------------
June 30, March 31, June 30, June 30,
--------
Millions of U.S. dollars 2014 2014 2013 2014 2013
------------------------ ---- ---- ---- ---- ----
Operating income (loss) $95 $86 ($16) $181 ($33)
---------------------- --- --- ---- ---- ----
EBITDA 137 129 20 266 40
------ --- --- --- --- ---
Three months ended June 30, 2014 versus three months ended March 31, 2014 - EBITDA increased $8 million versus the first quarter 2014. The refinery processed 257,000 barrels per day, up 10,000 barrels per day from the prior quarter. Compared to the prior quarter, the Maya 2-1-1 benchmark crack spread declined by $1.25 per barrel, averaging $27.01 per barrel. The corresponding Houston refinery spread was relatively unchanged. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards was relatively unchanged versus the first quarter 2014.
Three months ended June 30, 2014 versus three months ended June 30, 2013 - EBITDA increased $117 million versus the second quarter 2013. The refinery processed 257,000 barrels per day, down 8,000 barrels per day from the prior year period. Compared to the second quarter 2013, the Maya 2-1-1 benchmark spread increased $5.43 per barrel, and we benefited from improved yields and higher margins on secondary products. The cost of RINs decreased by approximately $20 million compared to the same quarter last year.
Technology - The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.
Table 6 - Technology Financial Overview
---------------------------------------
Three Months Ended Six Months
Ended
------------------
June 30, March 31, June 30, June 30,
--------
Millions of U.S. dollars 2014 2014 2013 2014 2013
------------------------ ---- ---- ---- ---- ----
Operating income $56 $60 $39 $116 $89
---------------- --- --- --- ---- ---
EBITDA 71 76 59 147 125
------ --- --- --- --- ---
Three months ended June 30, 2014 versus three months ended March 31, 2014 - EBITDA decreased by $5 million.
Three months ended June 30, 2014 versus three months ended June 30, 2013 - EBITDA increased by $12 million from higher catalyst and licensing results.
Capital spending and cash balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $415 million in the second quarter 2014. Our cash and short-term securities balance was $3.5 billion at June 30, 2014. We repurchased approximately 19 million of our outstanding ordinary shares and paid $370 million in dividends during the second quarter of 2014. There were 515 million common shares outstanding as of June 30(th).
CONFERENCE CALL
LyondellBasell will host a conference call July 25 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Jim Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.
The toll-free dial-in number in the U.S. is 888-677-1826. For international numbers, go to www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 1231245.
A replay of the call will be available from 2 p.m. ET July 25 until Aug. 25 at 11 p.m. ET. The replay dial-in numbers are 800-839-1171 (U.S.) and +1 203-369-3030 (international). The pass code for each is 3675.
The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2013, which can be found at www.lyondellbasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.
NON-GAAP MEASURES
This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.
EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternative to operating cash flows as a measure of our liquidity.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 8 at the end of this release.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 7 - Reconciliation of Segment Information to Consolidated Financial Information
-------------------------------------------------------------------------------------
2013 2014
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1 Q2 YTD
------------------ --- --- --- --- ----- --- --- ---
Sales and other
operating
revenues:
Olefins &
Polyolefins -
Americas $3,244 $3,251 $3,315 $3,279 $13,089 $3,357 $3,462 $6,819
Olefins &
Polyolefins -
Europe, Asia,
International 3,800 3,708 3,594 3,583 14,685 3,778 4,069 7,847
Intermediates &
Derivatives 2,282 2,217 2,452 2,521 9,472 2,429 2,706 5,135
Refining 2,468 3,077 3,177 2,976 11,698 2,756 3,250 6,006
Technology 134 132 124 142 532 136 144 280
Other (1,259) (1,282) (1,510) (1,363) (5,414) (1,321) (1,514) (2,835)
------ ------ ------ ------ ------ ------ ------ ------
Continuing
Operations $10,669 $11,103 $11,152 $11,138 $44,062 $11,135 $12,117 $23,252
======= ======= ======= ======= ======= ======= ======= =======
Operating income
(loss):
Olefins &
Polyolefins -
Americas $821 $872 $759 $801 $3,253 $656 $898 $1,554
Olefins &
Polyolefins -
Europe, Asia,
International 93 189 78 17 377 225 190 415
Intermediates &
Derivatives 323 285 371 321 1,300 316 375 691
Refining (17) (16) (37) 92 22 86 95 181
Technology 50 39 35 33 157 60 56 116
Other (3) (5) 1 - - (7) (3) (1) (4)
--- --- --- --- --- --- --- ---
Continuing
Operations $1,267 $1,364 $1,207 $1,264 $5,102 $1,340 $1,613 $2,953
====== ====== ====== ====== ====== ====== ====== ======
Depreciation and
amortization:
Olefins &
Polyolefins -
Americas $75 $69 $73 $76 $293 $73 $74 $147
Olefins &
Polyolefins -
Europe, Asia,
International 77 76 78 56 287 70 67 137
Intermediates &
Derivatives 48 50 50 56 204 55 56 111
Refining 36 37 45 42 160 42 42 84
Technology 17 20 16 22 75 16 15 31
Other - - 2 - - - - 2 - - - - - -
--- --- --- --- --- --- --- ---
Continuing
Operations $253 $254 $262 $252 $1,021 $256 $254 $510
==== ==== ==== ==== ====== ==== ==== ====
EBITDA: (a)
Olefins &
Polyolefins -
Americas $898 $951 $841 $883 $3,573 $736 $978 $1,714
Olefins &
Polyolefins -
Europe, Asia,
International 225 295 204 115 839 356 319 675
Intermediates &
Derivatives 373 338 427 354 1,492 375 430 805
Refining 20 20 8 134 182 129 137 266
Technology 66 59 52 55 232 76 71 147
Other 3 (11) (1) 2 (7) (4) 6 2
--- --- --- --- --- --- --- ---
Continuing
Operations $1,585 $1,652 $1,531 $1,543 $6,311 $1,668 $1,941 $3,609
====== ====== ====== ====== ====== ====== ====== ======
Capital,
turnarounds and IT
deferred spending:
Olefins &
Polyolefins -
Americas $122 $122 $218 $183 $645 $231 $306 $537
Olefins &
Polyolefins -
Europe, Asia,
International 63 46 44 76 229 33 27 60
Intermediates &
Derivatives 106 141 119 77 443 45 52 97
Refining 93 67 36 13 209 32 20 52
Technology 7 6 7 10 30 2 6 8
Other - - 5 (1) 1 5 - - 4 4
--- --- --- --- --- --- --- ---
Total 391 387 423 360 1,561 343 415 758
Deferred charges
included above - - - - - - - - - - - - - - - -
--- --- --- --- --- --- --- ---
Continuing
Operations $391 $387 $423 $360 $1,561 $343 $415 $758
==== ==== ==== ==== ====== ==== ==== ====
(a) See Table 8 for EBITDA calculation.
Table 8 - EBITDA Calculation
----------------------------
2013 2014
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1 Q2 YTD
------------- --- --- --- --- ----- --- --- ---
Net income
attributable to
the Company
shareholders $901 $929 $853 $1,174 $3,857 $945 $1,178 $2,123
Net income
(loss)
attributable to
non-
controlling
interests (1) (2) (2) 1 (4) (1) (2) (3)
(Income) loss
from
discontinued
operations, net
of tax 6 (4) 3 2 7 (1) (3) (4)
--- --- --- --- --- --- --- ---
Income from
continuing
operations 906 923 854 1,177 3,860 943 1,173 2,116
Provision
for income
taxes 357 410 339 30 1,136 383 425 808
Depreciation
and
amortization 253 254 262 252 1,021 256 254 510
Interest
expense,
net 69 65 76 84 294 86 89 175
--- --- --- --- --- --- --- ---
EBITDA $1,585 $1,652 $1,531 $1,543 $6,311 $1,668 $1,941 $3,609
====== ====== ====== ====== ====== ====== ====== ======
Table 9 - Selected Segment Operating Information
------------------------------------------------
2013 2014
---- ----
Q1 Q2 Q3 Q4 Total Q1 Q2 YTD
--- --- --- --- ----- --- --- ---
Olefins and
Polyolefins -
Americas
Volumes (million
pounds)
-----------------
Ethylene
produced 2,337 2,412 2,111 2,156 9,016 1,979 1,721 3,700
Propylene
produced 624 529 652 646 2,451 611 648 1,259
Polyethylene
sold 1,396 1,389 1,378 1,409 5,572 1,406 1,451 2,857
Polypropylene
sold 565 637 669 642 2,513 614 632 1,246
Benchmark Market
Prices
-----------------
West Texas
Intermediate
crude oil
(USD per
barrel) 94.43 94.17 105.80 97.60 98.06 98.61 102.99 100.84
Light
Louisiana
Sweet ("LLS")
crude oil
(USD per
barrel) 113.86 104.64 109.94 101.12 107.31 104.36 105.55 104.97
Natural gas
(USD per
million BTUs) 3.45 4.22 3.68 3.70 3.78 5.01 4.74 4.87
U.S. weighted
average cost
of ethylene
production
(cents/
pound) 13.8 15.7 16.6 18.6 16.2 20.0 17.1 18.6
U.S. ethylene
(cents/
pound) 48.0 46.3 45.8 46.5 46.7 48.3 47.2 47.8
U.S.
polyethylene
[high
density]
(cents/
pound) 66.7 68.7 71.7 75.0 70.5 76.3 77.0 76.7
U.S. propylene
(cents/
pound) 75.0 63.3 68.3 68.2 68.7 73.3 69.7 71.5
U.S.
polypropylene
[homopolymer]
(cents/
pound) 88.0 76.2 82.3 82.2 82.2 88.3 84.7 86.5
Olefins and
Polyolefins -
Europe, Asia,
International
Volumes (million
pounds)
-----------------
Ethylene
produced 912 991 984 930 3,817 989 1,024 2,013
Propylene
produced 577 610 597 568 2,352 582 617 1,199
Polyethylene
sold 1,206 1,314 1,212 1,167 4,899 1,275 1,363 2,638
Polypropylene
sold 1,657 1,821 1,612 1,531 6,621 1,509 1,707 3,216
Benchmark Market
Prices (EUR0.01
per pound)
-----------------
Western Europe
weighted
average cost
of ethylene
production 36.2 29.3 34.9 38.5 34.7 32.9 34.3 33.6
Western Europe
ethylene 58.6 54.4 55.0 55.1 55.8 54.7 52.8 53.8
Western Europe
polyethylene
[high
density] 61.2 56.8 57.9 57.1 58.2 56.1 54.8 55.5
Western Europe
propylene 50.6 47.9 49.6 49.9 49.5 51.3 52.2 51.7
Western Europe
polypropylene
[homopolymer] 59.1 56.1 58.1 58.2 57.9 59.9 61.3 60.6
Intermediates and
Derivatives
Volumes (million
pounds)
-----------------
Propylene
oxide and
derivatives 683 665 665 729 2,742 772 781 1,553
Ethylene oxide
and
derivatives 260 277 294 346 1,177 262 319 581
Styrene
monomer 703 589 756 832 2,880 683 870 1,553
Acetyls 431 470 506 510 1,917 683 592 1,275
TBA
Intermediates 434 357 425 442 1,658 416 391 807
Volumes (million
gallons)
-----------------
MTBE/ETBE 185 235 241 222 883 188 266 454
Benchmark Market
Margins (cents
per gallon)
-----------------
MTBE -
Northwest
Europe 104.9 88.4 86.8 37.8 79.1 63.4 90.7 76.8
Refining
Volumes
(thousands of
barrels per day)
-----------------
Heavy crude
oil
processing
rate 173 265 250 239 232 247 257 252
Benchmark Market
Margins
-----------------
Light crude
oil -2-1-1 11.53 14.63 12.63 12.67 12.89 13.18 17.29 15.27
Light crude
oil -Maya
differential 11.17 6.95 10.59 11.65 10.05 15.08 9.72 12.41
Source: LYB and third party consultants
Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices.
Table 10 - Unaudited Income Statement Information
-------------------------------------------------
2013 2014
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1 Q2 YTD
------------------ --- --- --- --- ----- --- --- ---
Sales and other
operating revenues $10,669 $11,103 $11,152 $11,138 $44,062 $11,135 $12,117 $23,252
Cost of sales 9,153 9,496 9,690 9,601 37,940 9,577 10,255 19,832
Selling, general and
administrative expenses 213 208 220 229 870 186 215 401
Research and development
expenses 36 35 35 44 150 32 34 66
--- --- --- --- --- --- --- ---
Operating income 1,267 1,364 1,207 1,264 5,102 1,340 1,613 2,953
Income from equity
investments 59 43 61 40 203 61 68 129
Interest expense, net (69) (65) (76) (84) (294) (86) (89) (175)
Other income (expense),
net 6 (8) 1 (13) (14) 11 6 17
Reorganization items - - (1) - - - - (1) - - - - - -
--- --- --- --- --- --- --- ---
Income from
continuing
operations before
income taxes 1,263 1,333 1,193 1,207 4,996 1,326 1,598 2,924
Provision for income
taxes 357 410 339 30 1,136 383 425 808
--- --- --- --- ----- --- --- ---
Income from
continuing
operations 906 923 854 1,177 3,860 943 1,173 2,116
Income (loss) from
discontinued
operations,
net of tax (6) 4 (3) (2) (7) 1 3 4
--- --- --- --- --- --- --- ---
Net income 900 927 851 1,175 3,853 944 1,176 2,120
Net (income) loss
attributable to non-
controlling
interests 1 2 2 (1) 4 1 2 3
--- --- --- --- --- --- --- ---
Net income
attributable to
the Company
shareholders $901 $929 $853 $1,174 $3,857 $945 $1,178 $2,123
==== ==== ==== ====== ====== ==== ====== ======
Table 11 - Charges (Benefits) Included in Income from Continuing Operations
---------------------------------------------------------------------------
2013 2014
---- ----
Millions of U.S. dollars
(except share data) Q1 Q2 Q3 Q4 Total Q1 Q2 YTD
------------------------ --- --- --- --- ----- --- --- ---
Pretax charges (benefits):
Impairments $ - - $ - - $ - - $10 $10 $ - - $ - - $ - -
Insurance
settlement - - - - - - (25) (25) - - - - - -
Settlement of
environmental
indemnification
agreement - - - - - - - - - - (52) - - (52)
Loss on sale
of investment - - - - - - 16 16 - - - - - -
Total pretax charges (benefits) - - - - - - 1 1 (52) - - (52)
Provision for income tax related to these
items - - - - - - 4 4 - - - - - -
--- --- --- --- --- --- --- ---
After-tax effect of net
charges (benefits) $ - - $ - - $ - - $5 $5 $(52) $ - - $(52)
=== === === === === === === === ==== === === ====
Effect on diluted earnings per
share $ - - $ - - $ - - $ - - $ - - $0.09 $ - - $0.09
Table 12 - Unaudited Cash Flow Information
------------------------------------------
2013 2014
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1 Q2 YTD
------------- --- --- --- --- ----- --- --- ---
Net cash
provided by
operating
activities $799 $1,246 $1,116 $1,674 $4,835 $801 $1,797 $2,598
Net cash used
in investing
activities (408) (389) (438) (367) (1,602) (2,011) (246) (2,257)
Net cash
provided by
(used in)
financing
activities (234) (508) 452 (1,299) (1,589) (550) (2,217) (2,767)
Table 13 - Unaudited Balance Sheet Information
----------------------------------------------
March 31, June 30, September 30, December 31, March 31, June 30,
(Millions of U.S.
dollars) 2013 2013 2013 2013 2014 2014
------------------ ---- ---- ---- ---- ---- ----
Cash and cash
equivalents $2,879 $3,233 $4,414 $4,450 $2,702 $2,030
Restricted cash 6 2 4 10 3 2
Short-term investments - - - - - - - - 1,402 1,299
Accounts receivable, net 3,878 4,023 4,041 4,030 4,141 4,264
Inventories 5,270 5,197 5,382 5,279 5,589 5,326
Prepaid expenses and
other current assets 622 577 784 830 1,156 784
--- --- --- --- ----- ---
Total current
assets 12,655 13,032 14,625 14,599 14,993 13,705
Property, plant and
equipment, net 7,779 7,979 8,223 8,457 8,556 8,740
Investments and long-
term receivables:
Investment in PO
joint ventures 401 409 423 421 424 418
Equity
investments 1,607 1,622 1,615 1,629 1,693 1,702
Other
investments and
long-term
receivables 421 231 164 64 62 58
Goodwill 582 588 598 605 605 602
Intangible assets, net 999 966 934 904 870 838
Other assets 233 221 229 619 624 593
--- --- --- --- --- ---
Total assets $24,677 $25,048 $26,811 $27,298 $27,827 $26,656
======= ======= ======= ======= ======= =======
Current maturities of
long-term debt $1 $1 $1 $1 $3 $3
Short-term debt 115 114 114 58 58 55
Accounts payable 3,217 3,324 3,241 3,572 3,642 3,690
Accrued liabilities 1,217 1,047 1,528 1,299 1,477 1,310
Deferred income taxes 557 550 494 580 540 570
--- --- --- --- --- ---
Total current
liabilities 5,107 5,036 5,378 5,510 5,720 5,628
Long-term debt 4,307 4,306 5,774 5,776 6,766 6,766
Other liabilities 2,306 2,325 2,278 1,839 1,838 1,851
Deferred income taxes 1,277 1,312 1,472 1,659 1,677 1,623
Stockholders' equity 11,641 12,032 11,874 12,478 11,791 10,753
Non-controlling
interests 39 37 35 36 35 35
--- --- --- --- --- ---
Total
liabilities and
stockholders'
equity $24,677 $25,048 $26,811 $27,298 $27,827 $26,656
======= ======= ======= ======= ======= =======
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SOURCE LyondellBasell Industries
