LYONDELLBASELL INDUSTRIES N.V. HOUSTON and LONDON, April 22, 2016 /PRNewswire/ --
First Quarter 2016 Highlights
-- Income from continuing operations: $1.0 billion ($1.1 billion excluding
LCM(1))
-- Diluted earnings per share: $2.37 per share ($2.48 per share excluding
LCM)
-- EBITDA: $1.8 billion ($1.9 billion excluding LCM)
-- Share repurchases and dividends totaled $1.3 billion; repurchased 12.3
million shares during the first quarter, approximately 3% of the
outstanding shares
-- Sold Argentine subsidiary Petroken for $184 million for an after tax
gain of $78 million
-- Issued EUR750 million of six-year bonds with coupon rate of 1.875%
Comparisons with the prior quarter and first quarter 2015 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) 2016 2015 2015
------------------------------------------- ---- ---- ----
Sales and other operating revenues $6,743 $7,071 $8,185
---------------------------------- ------ ------ ------
Net income(a) 1,030 795 1,164
------------ ----- --- -----
Income from continuing operations(b) 1,030 797 1,167
----------------------------------- ----- --- -----
Diluted earnings per share (U.S. dollars):
------------------------------------------
Net income(c) 2.37 1.78 2.41
------------ ---- ---- ----
Income from continuing operations(b) 2.37 1.78 2.42
----------------------------------- ---- ---- ----
Diluted share count (millions) 434 446 481
----------------------------- --- --- ---
EBITDA(d) 1,807 1,394 1,952
-------- ----- ----- -----
Excluding LCM Impact:
---------------------
LCM, pre-tax 68 284 92
------------ --- --- ---
Income from continuing operations(b) 1,077 982 1,225
----------------------------------- ----- --- -----
Diluted earnings per share (U.S. dollars):
------------------------------------------
Income from continuing operations(b) 2.48 2.20 2.54
----------------------------------- ---- ---- ----
EBITDA(d) 1,875 1,678 2,044
-------- ----- ----- -----
(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."
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2016 of $1.0 billion, or $2.37 per share. First quarter 2016 EBITDA was $1.8 billion. The quarter included a $68 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($47 million after-tax). Excluding the LCM adjustment, earnings from continuing operations during the first quarter totaled $1.1 billion, or $2.48 per share and EBITDA was $1.9 billion. In February, the Argentine wholly owned subsidiary Petroken Petroquímica Ensenada S.A. (Petroken) was sold for an after tax gain of $78 million that impacted earnings by $0.18 per share.
"The first quarter of 2016 developed as we anticipated. LyondellBasell's operations were strong and we completed planned maintenance as expected. The value of our global footprint and integrated businesses was evident in the excellent results from the Olefins & Polyolefins, Europe, Asia and International segment and our global polypropylene businesses. Markets for our products were generally tight with prices responding quickly to supply and demand dynamics," said Bob Patel, LyondellBasell chief executive officer.
OUTLOOK
"As we look forward to the remainder of the second quarter, a significant amount of industry capacity will be offline in both the U.S. and Asia for scheduled maintenance. We believe this is tightening global olefin and polyolefin markets. Within our system, we have begun the maintenance turnaround and 800 million pound ethylene expansion at Corpus Christi and expect to ramp up toward full utilization of the expanded capacity during the third quarter. During the second quarter our refinery will operate at reduced rates as we repair damage from an April fire. At the same time, the refining and oxyfuels businesses have started to benefit from seasonal margin improvements," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins & Polyolefins - Americas; 2) Olefins & Polyolefins - Europe, Asia and International (EAI); 3) Intermediates & Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & 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 2016 2015 2015
------------------------ ---- ---- ----
Operating income $707 $662 $934
---------------- ---- ---- ----
EBITDA 878 775 1,031
------ --- --- -----
LCM, pre-tax - - 59 43
------------ --- --- ---
EBITDA excluding LCM 878 834 1,074
-------------------- --- --- -----
Three months ended March 31, 2016 versus three months ended December 31, 2015 - EBITDA increased $44 million for the first quarter 2016 versus the fourth quarter 2015, excluding a favorable $59 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results include a $57 million gain on the sale of the Petroken polypropylene business. Compared to the prior period, underlying olefin results were relatively unchanged. Combined polyolefin results declined by approximately $20 million. Polyethylene spreads declined by approximately 4 cents per pound. Polypropylene spreads improved by approximately 6 cents per pound while volumes were relatively unchanged. Joint venture equity income improved by $7 million.
Three months ended March 31, 2016 versus three months ended March 31, 2015 - EBITDA decreased $196 million versus the first quarter 2015, excluding a favorable $43 million quarter to quarter variance as a result of the LCM inventory adjustments. First quarter 2016 results include the $57 million gain on the sale of Petroken. Olefin results drove the decline as quarterly EBITDA decreased approximately $390 million versus the prior year. Ethylene margins declined by approximately 14 cents per pound and additional costs were incurred for purchases and an inventory build to support our 2016 planned maintenance at Corpus Christi. Combined polyolefin results increased approximately $115 million versus the prior year period. The majority of the improvement was driven by polypropylene spreads improving by approximately 13 cents per pound. Joint venture equity income improved by $15 million.
Olefins & 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
------------------
March 31, December 31, March 31,
Millions of U.S. dollars 2016 2015 2015
------------------------ ---- ---- ----
Operating income $358 $302 $236
---------------- ---- ---- ----
EBITDA 509 427 357
------ --- --- ---
LCM, pre-tax 40 24 - -
------------ --- --- ---
EBITDA excluding LCM 549 451 357
-------------------- --- --- ---
Three months ended March 31, 2016 versus three months ended December 31, 2015 - EBITDA increased by $98 million versus the fourth quarter 2015, excluding an unfavorable $16 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results include a $21 million gain on the sale of the Petroken polypropylene compounding business. Olefin results increased approximately $65 million due to approximately 4 cents per pound improvement in margins on relatively unchanged volumes. Combined polyolefin results increased by approximately $20 million as spreads for both polyethylene and polypropylene improved. Polypropylene compounds and polybutene-1 results were relatively unchanged. Equity income from joint ventures was relatively unchanged.
Three months ended March 31, 2016 versus three months ended March 31, 2015 - EBITDA increased by $192 million versus the first quarter 2015, excluding an unfavorable $40 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results include the $21 million gain on the sale of Petroken. Olefin results improved by approximately $55 million with an 8 cent per pound improvement in margin. Combined polyolefin results increased approximately $130 million as spreads for polyethylene improved by approximately 8 cents per pound while polypropylene spreads improved by approximately 7 cents per pound. Combined polyolefin volumes were down approximately 4% primarily due to planned maintenance at our Berre, France facility. Polypropylene compounds and polybutene-1 results declined by approximately $10 million. Equity income from joint ventures increased by $12 million.
Intermediates & 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, and oxyfuels.
Table 4 - I&D Financial Overview
--------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of U.S. dollars 2016 2015 2015
------------------------ ---- ---- ----
Operating income $255 $145 $271
---------------- ---- ---- ----
EBITDA 326 212 337
------ --- --- ---
LCM, pre-tax 28 74 44
------------ --- --- ---
EBITDA excluding LCM 354 286 381
-------------------- --- --- ---
Three months ended March 31, 2016 versus three months ended December 31, 2015 - EBITDA increased $68 million versus the fourth quarter 2015, excluding a favorable $46 million quarter to quarter variance as a result of LCM adjustments related to inventory. Results for PO and PO derivatives were relatively unchanged. Intermediate chemicals results improved by approximately $80 million, primarily due to increased volumes for acetyls, isobutylene derivatives and ethylene oxide and derivatives due to the absence of fourth quarter maintenance and approximately 2 cents per pound margin improvement for styrene. Oxyfuels results were relatively unchanged. Equity income from joint ventures decreased by $4 million.
Three months ended March 31, 2016 versus three months ended March 31, 2015 - EBITDA decreased $27 million versus the first quarter 2015, excluding a favorable $16 million quarter to quarter variance as a result of LCM inventory adjustments. Results for PO and PO derivatives decreased by approximately $10 million due to product mix and a weaker aircraft deicer season. Intermediate chemicals results were relatively unchanged with higher methanol volumes and styrene margin improvements of approximately 2 cents per pound offset by approximately 30 cents per gallon lower methanol margins. Oxyfuels decreased approximately $20 million primarily as a result of compression from the unseasonably high margins seen during the first quarter of 2015. Equity income from joint ventures decreased by $5 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 2016 2015 2015
------------------------ ---- ---- ----
Operating income (loss) ($30) ($101) $74
---------------------- ---- ----- ---
EBITDA 14 (59) 149
------ --- --- ---
LCM, pre-tax - - 127 5
------------ --- --- ---
EBITDA excluding LCM 14 68 154
-------------------- --- --- ---
Three months ended March 31, 2016 versus three months ended December 31, 2015 - EBITDA decreased $54 million versus the fourth quarter 2015, excluding a favorable $127 million quarter to quarter variance as a result of LCM inventory adjustments. The Houston refinery operated at 186,000 barrels per day due to maintenance on one set of crude and coker units. The Maya 2-1-1 industry benchmark crack spread decreased by $0.69 per barrel, averaging $17.86 per barrel. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards was unchanged versus the fourth quarter 2015.
Three months ended March 31, 2016 versus three months ended March 31, 2015 - EBITDA decreased $140 million versus the first quarter 2015, excluding a favorable $5 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 throughput was down by 55,000 barrels per day from the prior year period due to planned maintenance. The Maya 2-1-1 industry benchmark crack spread decreased by $5.88 per barrel. The cost of RINs was relatively unchanged relative to the first quarter 2015.
Technology Segment - 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 2016 2015 2015
------------------------ ---- ---- ----
Operating income $73 $54 $64
---------------- --- --- ---
EBITDA 83 65 76
------ --- --- ---
Three months ended March 31, 2016 versus three months ended December 31, 2015 - EBITDA increased by $18 million, largely driven by the timing of licensing revenue.
Three months ended March 31, 2016 versus three months ended March 31, 2015 - EBITDA increased by $7 million.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $527 million during the first quarter 2016. Our cash and liquid investment balance was $3.0 billion at March 31, 2016. We repurchased 12.3 million ordinary shares during the first quarter 2016. There were 428 million common shares outstanding as of March 31, 2016. The company paid dividends of $336 million during the first quarter of 2016 and issued EUR750 million in bonds at a coupon rate of 1.875% due in 2022.
CONFERENCE CALL
LyondellBasell will host a conference call April 22 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer, 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 6934553.
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. EDT April 22 until May 23 at 12:59 a.m. EDT. The replay dial-in numbers are 866-513-4385 (U.S.) and +1 203-369-1984 (international). The pass code for each is 42216.
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 57 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, 2015, 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. This adjustment is related to our use of LIFO accounting and the recent decline in pricing for many of our raw material and finished goods inventories. 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 an 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)
----------------------------------------------------------------------------------------
2015 2016
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1
------------------ --- --- --- --- ----- ---
Sales and other
operating
revenues:
Olefins &
Polyolefins -
Americas $2,551 $2,679 $2,516 $2,218 $9,964 $2,115
Olefins &
Polyolefins -
EAI 2,911 3,061 2,932 2,672 11,576 2,578
Intermediates &
Derivatives 1,918 2,159 2,039 1,656 7,772 1,702
Refining 1,607 2,102 1,693 1,155 6,557 955
Technology 136 107 100 122 465 132
Other/elims (938) (963) (946) (752) (3,599) (739)
---- ---- ---- ---- ------ ----
Continuing
Operations $8,185 $9,145 $8,334 $7,071 $32,735 $6,743
====== ====== ====== ====== ======= ======
Operating income
(loss):
Olefins &
Polyolefins -
Americas $934 $920 $740 $662 $3,256 $707
Olefins &
Polyolefins -
EAI 236 359 412 302 1,309 358
Intermediates &
Derivatives 271 405 403 145 1,224 255
Refining 74 119 52 (101) 144 (30)
Technology 64 45 34 54 197 73
Other (4) (3) 9 (10) (8) (3)
--- --- --- --- --- ---
Continuing
Operations $1,575 $1,845 $1,650 $1,052 $6,122 $1,360
====== ====== ====== ====== ====== ======
Depreciation and
amortization:
Olefins &
Polyolefins -
Americas $86 $85 $87 $95 $353 $90
Olefins &
Polyolefins -
EAI 55 54 54 56 219 55
Intermediates &
Derivatives 60 56 55 62 233 70
Refining 74 40 41 41 196 43
Technology 12 12 11 11 46 10
Continuing
Operations $287 $247 $248 $265 $1,047 $268
==== ==== ==== ==== ====== ====
EBITDA: (b)
Olefins &
Polyolefins -
Americas $1,031 $1,014 $841 $775 $3,661 $878
Olefins &
Polyolefins -
EAI 357 492 549 427 1,825 509
Intermediates &
Derivatives 337 466 460 212 1,475 326
Refining 149 159 93 (59) 342 14
Technology 76 57 45 65 243 83
Other 2 (2) 13 (26) (13) (3)
--- --- --- --- --- ---
Continuing
Operations $1,952 $2,186 $2,001 $1,394 $7,533 $1,807
====== ====== ====== ====== ====== ======
Capital,
turnarounds and IT
deferred spending:
Olefins &
Polyolefins -
Americas $149 $140 $159 $220 $668 $303
Olefins &
Polyolefins -
EAI 38 27 49 72 186 81
Intermediates &
Derivatives 76 76 135 154 441 76
Refining 33 28 23 24 108 57
Technology 6 3 7 8 24 6
Other 4 4 - - 5 13 4
--- --- --- --- --- ---
Continuing
Operations $306 $278 $373 $483 $1,440 $527
==== ==== ==== ==== ====== ====
(a) EBITDA as
presented
herein
includes the
impacts of
pre-tax LCM
charges of
$92 million,
$181 million
and $284
million for
the first,
third and
fourth
quarters of
2015,
respectively.
EBITDA for
the second
quarter of
2015
includes a
pre-tax LCM
benefit of
$9 million
for the
partial
reversal of
the first
quarter 2015
LCM
adjustment.
EBITDA for
the first
quarter 2016
includes a
pre-tax LCM
adjustment
of $68
million and
a $78
million gain
on the sale
of our
wholly owned
Argentine
subsidiary.
See Tables 2
through 6
for LCM
adjustments
recorded for
each
segment.
(b) See Table 8
for EBITDA
calculation.
Table 8 - EBITDA Calculation
----------------------------
2015 2016
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1
------------- --- --- --- --- ----- ---
Net income(a) $1,164 $1,329 $1,186 $795 $4,474 $1,030
(Income) loss
from
discontinued
operations, net
of tax 3 (3) 3 2 5 - -
--- --- --- --- --- ---
Income from
continuing
operations(a) 1,167 1,326 1,189 797 4,479 1,030
Provision
for income
taxes 440 541 487 262 1,730 432
Depreciation
and
amortization 287 247 248 265 1,047 268
Interest
expense,
net 58 72 77 70 277 77
--- --- --- --- --- ---
EBITDA(b) $1,952 $2,186 $2,001 $1,394 $7,533 $1,807
====== ====== ====== ====== ====== ======
(a) Amounts
presented
herein
include
after-tax
LCM charges
of $58
million,
$114 million
and $185
million in
the first,
third and
fourth
quarters of
2015,
respectively.
The second
quarter of
2015
includes an
after-tax
benefit of
$6 million
for the
partial
reversal of
the first
quarter 2015
LCM
adjustment
resulting
from price
recoveries
during the
period. The
first
quarter of
2016
includes an
after-tax
LCM charge
of $47
million and
a $78
million
after-tax
gain related
to the sale
of our
wholly owned
Argentine
subsidiary.
(b) EBITDA as
presented
herein
includes the
impact of
pre-tax LCM
charges of
$92 million,
$181 million
and $284
million for
the first,
third and
fourth
quarters of
2015,
respectively.
EBITDA for
the second
quarter of
2015
includes a
pre-tax LCM
benefit of
$9 million
for the
partial
reversal of
the first
quarter 2015
LCM
adjustment.
The first
quarter of
2016
includes a
pre-tax LCM
charge of
$68 million
and a gain
of $78
million on
the sale of
our wholly
owned
Argentine
subsidiary.
Table 9 - Selected Segment Operating Information
------------------------------------------------
2015 2016
---- ----
Q1 Q2 Q3 Q4 Total Q1
--- --- --- --- ----- ---
Olefins and
Polyolefins -
Americas
Volumes (million
pounds)
-----------------
Ethylene
produced 2,364 2,415 2,514 2,391 9,684 2,392
Propylene
produced 805 740 697 798 3,040 832
Polyethylene
sold 1,473 1,575 1,577 1,578 6,203 1,554
Polypropylene
sold 627 698 662 606 2,593 612
Benchmark Market
Prices
-----------------
West Texas
Intermediate
crude oil
(USD per
barrel) 48.57 57.95 45.36 42.16 48.71 33.63
Light
Louisiana
Sweet ("LLS")
crude oil
(USD per
barrel) 52.84 62.93 50.20 43.53 52.36 35.34
Natural gas
(USD per
million BTUs) 2.76 2.76 2.72 2.11 2.57 1.93
U.S. weighted
average cost
of ethylene
production
(cents/
pound) 10.2 9.7 9.6 10.9 10.1 9.8
U.S. ethylene
(cents/
pound) 34.8 34.2 30.3 27.5 31.7 26.7
U.S.
polyethylene
[high
density]
(cents/
pound) 65.7 67.3 64.3 57.0 63.6 52.3
U.S. propylene
(cents/
pound) 49.7 41.7 33.2 31.3 39.0 31.0
U.S.
polypropylene
[homopolymer]
(cents/
pound) 67.7 61.7 59.3 62.7 62.8 67.8
Olefins and
Polyolefins -
Europe, Asia,
International
Volumes (million
pounds)
-----------------
Ethylene
produced 1,007 1,047 944 978 3,976 950
Propylene
produced 600 632 575 575 2,382 555
Polyethylene
sold 1,533 1,360 1,304 1,379 5,576 1,434
Polypropylene
sold 1,817 1,529 1,673 1,757 6,776 1,773
Benchmark Market
Prices (EUR0.01
per pound)
-----------------
Western Europe
weighted
average cost
of ethylene
production 22.9 23.2 14.4 22.5 20.8 16.3
Western Europe
ethylene 39.3 47.1 46.6 41.4 43.6 38.4
Western Europe
polyethylene
[high
density] 45.2 60.6 61.2 56.9 56.0 55.4
Western Europe
propylene 37.1 44.4 41.7 31.0 38.5 26.3
Western Europe
polypropylene
[homopolymer] 49.8 62.5 59.3 47.4 54.7 46.5
Intermediates and
Derivatives
Volumes (million
pounds)
-----------------
Propylene
oxide and
derivatives 870 751 697 682 3,000 793
Ethylene oxide
and
derivatives 268 312 282 237 1,099 301
Styrene
monomer 903 735 904 889 3,431 917
Acetyls 547 810 733 623 2,713 702
TBA
Intermediates 433 321 421 371 1,546 415
Volumes (million
gallons)
-----------------
MTBE/ETBE 229 299 268 258 1,054 270
Benchmark Market
Margins (cents
per gallon)
-----------------
MTBE -
Northwest
Europe 64.0 106.0 119.0 49.8 85.1 44.4
Refining
Volumes
(thousands of
barrels per day)
-----------------
Heavy crude
oil
processing
rate 241 255 249 206 238 186
Benchmark Market
Margins
-----------------
Light crude
oil -2-1-1 15.02 16.42 15.29 9.44 14.04 8.67
Light crude
oil -Maya
differential 8.72 7.56 7.48 9.11 8.26 9.18
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
-------------------------------------------------
2015 2016
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1
------------------ --- --- --- --- ----- ---
Sales and other
operating revenues $8,185 $9,145 $8,334 $7,071 $32,735 $6,743
Cost of sales(a) 6,379 7,047 6,465 5,792 25,683 5,166
Selling, general and
administrative
expenses 205 228 194 201 828 193
Research and
development
expenses 26 25 25 26 102 24
--- --- --- --- --- ---
Operating
income(a) 1,575 1,845 1,650 1,052 6,122 1,360
Income from equity
investments 69 90 93 87 339 91
Interest expense,
net (58) (72) (77) (70) (277) (77)
Other income
(expense), net(b) 21 4 10 (10) 25 88
--- --- --- --- --- ---
Income from
continuing
operations
before income
taxes(a, b) 1,607 1,867 1,676 1,059 6,209 1,462
Provision for income
taxes 440 541 487 262 1,730 432
--- --- --- --- ----- ---
Income from
continuing
operations(c) 1,167 1,326 1,189 797 4,479 1,030
Income (loss) from
discontinued
operations, net of
tax (3) 3 (3) (2) (5) - -
--- --- --- --- --- ---
Net income(c) 1,164 1,329 1,186 795 4,474 1,030
Net (income) loss
attributable to
non-controlling
interests 2 1 (1) - - 2 - -
--- --- --- --- --- ---
Net income
attributable
to the
Company
shareholders(c) $1,166 $1,330 $1,185 $795 $4,476 $1,030
====== ====== ====== ==== ====== ======
(a) Amounts
presented
herein
include pre-
tax LCM
charges of
$92 million,
$181 million
and $284
million for
the first,
third and
fourth
quarters of
2015,
respectively.
The second
quarter of
2015
includes a
pre-tax LCM
benefit of
$9 million
for the
partial
reversal of
the first
quarter 2015
LCM
adjustment.
The first
quarter of
2016
includes a
pre-tax LCM
charge of
$68 million.
Includes a
gain of $78
million on
the sale of
our wholly
owned
Argentine
(b) subsidiary.
(c) Amounts
presented
herein
include
after-tax
LCM charges
of $58
million,
$114 million
and $185
million in
the first,
third and
fourth
quarters of
2015,
respectively.
The second
quarter of
2015
includes an
after-tax
benefit of
$6 million
for the
partial
reversal of
the first
quarter 2015
LCM
adjustment
resulting
from price
recoveries
during the
period. The
first
quarter of
2016
includes an
after-tax
LCM charge
of $47
million and
an after-
tax gain of
$78 million
on the sale
of our
wholly owned
Argentine
subsidiary.
Table 11 - Charges (Benefits) Included in Income from Continuing Operations
---------------------------------------------------------------------------
2015 2016
---- ----
Millions of U.S. dollars
(except share data) Q1 Q2 Q3 Q4 Total Q1
------------------------ --- --- --- --- ----- ---
Pretax charges (benefits):
Gain on sale
of wholly
owned
subsidiary $ - - $ - - $ - - $ - - $ - - $(78)
Lower of
cost or
market
inventory
adjustment 92 (9) 181 284 548 68
Emission
allowance
credits,
amortization 35 - - - - - - 35 - -
Total pretax charges (benefits) 127 (9) 181 284 583 (10)
Provision for (benefit from) income
tax related to these items (47) 3 (67) (99) (210) (21)
--- --- --- --- ---- ---
After-tax effect of net
charges (benefits) $80 $(6) $114 $185 $373 $(31)
=== === ==== ==== ==== ====
Effect on diluted
earnings per share $(0.17) $0.02 $(0.25) $(0.42) $(0.80) $0.07
Table 12 - Unaudited Cash Flow Information
------------------------------------------
2015 2016
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1
------------- --- --- --- --- ----- ---
Net cash
provided by
operating
activities $1,468 $1,446 $1,768 $1,160 $5,842 $1,300
Net cash
provided by
(used in)
investing
activities (443) (727) 67 52 (1,051) (597)
Net cash used
in financing
activities (401) (1,021) (1,684) (1,744) (4,850) (333)
Table 13 - Unaudited Balance Sheet Information
----------------------------------------------
March 31, June 30, September 30, December 31, March 31,
(Millions of U.S.
dollars) 2015 2015 2015 2015 2016
------------------ ---- ---- ---- ---- ----
Cash and cash
equivalents $1,616 $1,325 $1,474 $924 $1,318
Restricted cash 2 3 1 7 4
Short-term
investments 1,478 1,989 1,602 1,064 1,332
Accounts
receivable, net 3,089 3,373 2,924 2,517 2,683
Inventories 4,267 4,179 4,138 4,051 3,978
Prepaid expenses
and other current
assets(a) 1,195 1,121 1,059 1,226 1,009
Total current
assets 11,647 11,990 11,198 9,789 10,324
Property, plant and
equipment, net 8,430 8,636 8,793 8,991 9,373
Investments and
long-term
receivables:
Investment in
PO joint
ventures 373 357 357 397 398
Equity
investments 1,581 1,612 1,602 1,608 1,734
Other
investments
and long-
term
receivables 38 126 125 122 18
Goodwill 533 543 543 536 548
Intangible assets,
net 695 671 644 640 618
Other assets(a) 637 600 605 674 559
Total assets $23,934 $24,535 $23,867 $22,757 $23,572
======= ======= ======= ======= =======
Current maturities
of long-term debt $4 $3 $3 $4 $4
Short-term debt 514 582 573 353 594
Accounts payable 2,631 2,755 2,450 2,182 2,243
Accrued liabilities 1,482 1,455 1,784 1,810 1,600
Deferred income
taxes(a) 429 434 383 - - - -
Total current
liabilities 5,060 5,229 5,193 4,349 4,441
Long-term debt 7,677 7,658 7,674 7,671 8,504
Other liabilities 2,038 2,063 2,044 2,036 2,125
Deferred income
taxes(a) 1,653 1,635 1,604 2,127 2,134
Stockholders'
equity 7,478 7,927 7,328 6,550 6,344
Non-controlling
interests 28 23 24 24 24
Total
liabilities
and
stockholders'
equity $23,934 $24,535 $23,867 $22,757 $23,572
======= ======= ======= ======= =======
(a) Our
prospective
adoption of
ASU 2015-17,
Income Taxes
(Topic 740):
Balance Sheet
Classification
of Deferred
Taxes, in
December 2015
resulted in
the
classification
of our
deferred
taxes as of
December 2015
as
noncurrent.
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SOURCE LyondellBasell Industries
