Attached files

file filename
8-K - FORM 8-K - LyondellBasell Industries N.V.d576056d8k.htm
EX-99.2 - EX-99.2 - LyondellBasell Industries N.V.d576056dex992.htm

Exhibit 99.1

 

NEWS RELEASE    LOGO
HOUSTON and LONDON, July 26, 2013   

LyondellBasell Reports Second-Quarter 2013 Results

Second-Quarter 2013 Highlights

 

   

Record diluted earnings per share of $1.60; $923 million income from continuing operations

 

   

EBITDA of $1,652 million; strong olefins results continue

 

   

Increased interim quarterly dividend by 25% to $0.50 per share

 

   

Repurchased approximately 5.4 million shares during the quarter

 

   

Credit rating upgraded by Moody’s

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2013 of $1.60 diluted earnings per share or $923 million. Second quarter 2013 EBITDA was $1,652 million. The increase was primarily due to improved operating results in the olefins and polyolefins segments.

Comparisons with the prior quarter and second quarter 2012 are shown below:

Table 1 - Earnings Summary

 

     Three Months Ended      Six Months Ended  

Millions of U.S. dollars (except share data)

   June 30,
2013
     March 31,
2013
     June 30,
2012
     June 30,
2013
     June 30,
2012
 

Sales and other operating revenues

   $ 11,103      $ 10,669      $ 11,248      $ 21,772      $ 22,982  

Net income(a)

     927        900        768        1,827        1,367  

Income from continuing operations

     923        906        768        1,829        1,362  

Diluted earnings per share (U.S. dollars):

              

Net income(b)

     1.61        1.55        1.33        3.16        2.37  

Income from continuing operations

     1.60        1.56        1.33        3.16        2.36  

Diluted share count (millions)

     578        578        577        578        576  

EBITDA(c)(d)

     1,652        1,585        1,727        3,237        2,954  

 

(a) Includes net loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 11.
(b) Includes diluted loss per share attributable to discontinued operations.
(c) See the end of this release for an explanation of the Company’s use of EBITDA and Table 9 for reconciliations of EBITDA to income from continuing operations.
(d) Includes a $71 million lower of cost or market inventory valuation adjustment in the second quarter and first six months of 2012.

 

LyondellBasell Industries    1
www.lyondellbasell.com   


Results also reflect the following charges and benefits:

Table 2 - Charges (Benefits) Included in Income from Continuing Operations

 

     Three Months Ended     Six Months Ended  

Millions of U.S. dollars (except share data)

   June 30,
2013
     March 31,
2013
     June 30,
2012
    June 30,
2013
     June 30,
2012
 

Pretax charges (benefits):

             

Charges and premiums related to repayment of debt

   $ —        $ —        $ 329     $ —        $ 329  

Reorganization items

     —          —          —         —          (5

Impairments

     —          —          —         —          22  

Warrants - mark to market

     —          —          —         —          10  

Insurance settlement

     —          —          (100     —          (100

Lower of cost or market inventory adjustment

     —          —          71       —          71  

Total pretax charges (benefits)

     —          —          300       —          327  

Provision for (benefit from) income tax related to these items

     —          —          (109     —          (114

After-tax effect of net charges (credits)

   $ —        $ —        $ 191     $ —        $ 213  

Effect on diluted earnings per share

   $ 0       $ 0       ($ 0.33   $ 0       ($ 0.36

“Overall, it was a strong quarter. We achieved record quarterly earnings and advanced our plans for the future on several fronts. The back-to-basics strategy that we put in place three years ago continues to yield strong results and returns for our shareholders. This was particularly evident in both our U.S. and European olefins businesses. In both regions, our plants ran well above average industry operating rates while also utilizing additional advantaged natural gas liquid feedstocks,” said Jim Gallogly, LyondellBasell Chief Executive Officer.

“We continue to invest in our assets, completing turnarounds at one propylene oxide plant in the U.S. and another in Europe and concluding the butadiene expansion at Wesseling, Germany during the second quarter. Our well positioned assets and strong operations enabled us to increase our dividend and initiate a share repurchase program. During the latter part of the quarter, we purchased almost one percent of our outstanding shares and increased our dividend by 25 percent to 50 cents per share,” Gallogly said.

OUTLOOK

“Industry conditions in the U.S. are relatively unchanged from the first half of the year. Our integrated assets and diversified portfolio of U.S. olefins and Intermediates and Derivatives businesses remain very profitable. In Europe, the market continues to seek equilibrium in a slow economy, and we have seen rising naphtha prices. Refining has been a challenging industry and continues to evolve. We believe that these market conditions coupled with an imbalance within renewable fuel requirements will continue to pressure our near term results. Our path and strategy remain unchanged, and LyondellBasell is well-positioned to continue generating strong results and rewarding our shareholders,” Gallogly said.

 

LyondellBasell Industries    2
www.lyondellbasell.com   


LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell operates in five business segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – 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 3 - O&P–Americas Financial Overview

 

     Three Months Ended      Six Months Ended  

Millions of U.S. dollars

   June 30,
2013
     March 31,
2013
     June 30,
2012
     June 30,
2013
     June 30,
2012
 

Operating income

   $ 872      $ 821      $ 700      $ 1,693      $ 1,219  

EBITDA

     951        898        781        1,849        1,376  

Three months ended June 30, 2013 versus three months ended March 31, 2013 – The segment achieved record EBITDA results in the second quarter of 2013. EBITDA increased $53 million versus the first quarter 2013. Compared to the prior period, olefins results decreased approximately $30 million primarily due to lower margins, driven by a 2 cents per pound lower average ethylene price and lower co-product values, which more than offset higher ethylene sales volumes. Combined polyolefin results increased by approximately $70 million from the first quarter 2013 driven by higher margins and a 13 percent increase in polypropylene sales volumes. Joint venture equity income increased by $4 million.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA increased $170 million in the second quarter 2013 versus the second quarter 2012. Excluding the impact of a $71 million lower of cost or market adjustment and a $29 million insurance settlement in the second quarter 2012, EBITDA increased $128 million. Olefins results increased approximately $95 million compared to the prior year period as a result of higher olefins volumes. Olefins production volumes were higher compared to the second quarter 2012, which was impacted by a planned maintenance turnaround. The price of ethylene increased by approximately 1 cent per pound compared to the prior year period. Polyethylene results improved by approximately $10 million as sales volumes increased 5 percent versus the prior year period. Polypropylene results declined by approximately $30 million due to a decline in spread of 2 cents per pound. Joint venture equity income increased by $4 million.

 

LyondellBasell Industries    3
www.lyondellbasell.com   


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 4 - O&P–EAI Financial Overview

 

     Three Months Ended      Six Months Ended  

Millions of U.S. dollars

   June 30,
2013
     March 31,
2013
     June 30,
2012
     June 30,
2013
     June 30,
2012
 

Operating income

   $ 189      $ 93      $ 203      $ 282      $ 206  

EBITDA

     295        225        305        520        420  

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA increased $70 million in the second quarter 2013 versus the first quarter 2013. Olefins results improved approximately $50 million primarily due to olefin margins expansion related to increased liquefied petroleum gas (LPG) feedstock cracking, naphtha price volatility, and increased production rates. Combined polyolefin results increased by approximately $10 million, driven by an approximately 10 percent increase in sales volumes. Polypropylene compounds and polybutene-1 results increased by approximately $30 million as a result of margin expansion, primarily due to lower raw materials prices and higher sales volume. Equity income from joint ventures decreased by $23 million from the first quarter 2013.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA declined $10 million versus the second quarter 2012. Olefins results declined by approximately $65 million, primarily as a result of lower butadiene margins. Combined polyolefin results increased by approximately $15 million primarily as a result of a 22 percent increase in sales volumes in the second quarter 2013. Polypropylene compounds and polybutene-1 results increased by approximately $25 million from the prior year period as a result of higher polypropylene compounds margins. Equity income from joint ventures was relatively unchanged from the second quarter 2012.

 

LyondellBasell Industries    4
www.lyondellbasell.com   


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, ethylene oxide and its derivatives, and oxyfuels.

Table 5 - I&D Financial Overview

 

     Three Months Ended      Six Months Ended  

Millions of U.S. dollars

   June 30,
2013
     March 31,
2013
     June 30,
2012
     June 30,
2013
     June 30,
2012
 

Operating income

   $ 285      $ 323      $ 390      $ 608      $ 760  

EBITDA

     338        373        432        711        849  

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA decreased $35 million versus the first quarter 2013. Plant turnarounds negatively impacted segment results by approximately $30 million. Including turnaround impacts, results for PO and PO derivatives decreased by approximately $50 million. Competitive pressure reduced butanediol margins while volumes declined seasonally on lower sales into aircraft deicing. Intermediate chemicals results were relatively unchanged as higher acetyls and ethylene glycol volumes offset lower results in styrene and C4 chemicals. Oxyfuels results improved by approximately $15 million due to higher second quarter 2013 volumes. Equity income from joint ventures was relatively unchanged.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA decreased $94 million compared to the second quarter 2012. Excluding the second quarter 2012 benefit of an $18 million insurance settlement, EBITDA decreased $76 million. Results for PO and PO derivatives declined by approximately $70 million primarily due to higher costs related to 2013 turnarounds and lower butanediol margins. Merchant PO volumes and margins were relatively unchanged. Intermediate chemicals results were relatively unchanged as higher acetyls and ethylene glycol volumes were offset by lower C4 chemical volumes due to plant turnarounds. Oxyfuels results declined by approximately $20 million as a result of lower margins which more than offset higher sales volumes in the 2013 period. Equity income from joint ventures increased by $10 million from the second quarter in 2012.

 

LyondellBasell Industries    5
www.lyondellbasell.com   


Refining – The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials.

Table 6 - Refining Financial Overview

 

     Three Months Ended      Six Months Ended  

Millions of U.S. dollars

   June 30,
2013
    March 31,
2013
    June 30,
2012
     June 30,
2013
    June 30,
2012
 

Operating income (loss)

   ($ 16   ($ 17   $ 124      ($ 33   $ 134  

EBITDA

     20       20       160        40       208  

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA was relatively unchanged versus the first quarter 2013. Our refinery operated at 265,000 barrels per day, up 92,000 barrels per day from the prior quarter when the refinery completed a scheduled maintenance turnaround. The volume improvement was offset by the increased cost of renewable fuel standard requirements and a decline in margins in the second quarter 2013. Compared to the prior quarter, the Maya 2-1-1 benchmark crack spread declined by $2.48 per barrel, averaging $18.49 per barrel. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards increased by $22 million versus the first quarter 2013.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA decreased $140 million versus the second quarter 2012. Excluding the second quarter 2012 benefit of a $53 million insurance settlement, EBITDA decreased by $87 million. Our refinery operated at 265,000 barrels per day, down 2,000 barrels per day from the prior year period. Compared to the second quarter 2012, the decline in Maya 2-1-1 benchmark spread of $4.67 per barrel and higher natural gas cost negatively impacted results. The cost of RINs increased by $38 million compared to the same quarter last year.

 

LyondellBasell Industries    6
www.lyondellbasell.com   


Technology – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.

Table 7 - Technology Financial Overview

 

     Three Months Ended      Six Months Ended  

Millions of U.S. dollars

   June 30,
2013
     March 31,
2013
     June 30,
2012
     June 30,
2013
     June 30,
2012
 

Operating income

   $ 39      $ 50      $ 30      $ 89      $ 68  

EBITDA

     59        66        50        125        106  

Three months ended June 30, 2013 versus three months ended March 31, 2013 – EBITDA decreased by $7 million primarily as a result of lower licensing revenues.

Three months ended June 30, 2013 versus three months ended June 30, 2012 – EBITDA increased by $9 million led by higher catalyst and licensing revenues.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology related expenditures, were $387 million in the second quarter 2013. Our cash balance was $3.2 billion at June 30, 2013. We repurchased 5.4 million of our outstanding ordinary shares and paid $261 million in dividends during the second quarter of 2013. In early third quarter 2013, we issued 10-year and 30-year bonds with an aggregate principal amount of $1.5 billion for which we received proceeds of approximately $1.45 billion after deducting underwriting discounts and offering expenses.

CONFERENCE CALL

LyondellBasell will host a conference call July 26 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 877-950-3594. 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 26 until Aug. 26 at 11 p.m. ET. The replay dial-in numbers are 866-460-9739 (U.S.) and +1 203-369-1347 (international). The pass code for each is 2323.

The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.

 

LyondellBasell Industries    7
www.lyondellbasell.com   


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 58 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; 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, 2012, 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

 

LyondellBasell Industries    8
www.lyondellbasell.com   


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 9 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.

###

Source: LyondellBasell Industries

 

Media Contact:    David A. Harpole +1 713-309-4125
Investor Contact:    Douglas J. Pike +1 713-309-7141

 

LyondellBasell Industries    9
www.lyondellbasell.com   


Table 8 - Reconciliation of Segment Information to Consolidated Financial Information

 

 

     2012     2013  

(Millions of U.S. dollars)

   Q1     Q2     Q3     Q4     Total     Q1     Q2     YTD  

Sales and other operating revenues:

                

Olefins & Polyolefins - Americas

   $ 3,349     $ 3,283     $ 3,217     $ 3,085     $ 12,934     $ 3,244     $ 3,251     $ 6,495  

Olefins & Polyolefins - Europe, Asia, International

     3,898       3,575       3,448       3,600       14,521       3,800       3,708       7,508  

Intermediates & Derivatives

     2,485       2,285       2,637       2,251       9,658       2,282       2,217       4,499  

Refining

     3,203       3,496       3,272       3,320       13,291       2,468       3,077       5,545  

Technology

     119       115       124       140       498       134       132       266  

Other

     (1,320     (1,506     (1,425     (1,299     (5,550     (1,259     (1,282     (2,541
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Continuing Operations

   $ 11,734     $ 11,248     $ 11,273     $ 11,097     $ 45,352     $ 10,669     $ 11,103     $ 21,772  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss):

                

Olefins & Polyolefins - Americas

   $ 519     $ 700     $ 738     $ 693     $ 2,650     $ 821     $ 872     $ 1,693  

Olefins & Polyolefins - Europe, Asia, International

     3       203       15       (94     127       93       189       282  

Intermediates & Derivatives

     370       390       424       246       1,430       323       285       608  

Refining

     10       124       114       86       334       (17     (16     (33

Technology

     38       30       31       23       122       50       39       89  

Other

     —         2       6       5       13       (3     (5     (8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Continuing Operations

   $ 940     $ 1,449     $ 1,328     $ 959     $ 4,676     $ 1,267     $ 1,364     $ 2,631  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and amortization:

                

Olefins & Polyolefins - Americas

   $ 65     $ 71     $ 69     $ 76     $ 281     $ 75     $ 69     $ 144  

Olefins & Polyolefins - Europe, Asia, International

     69       69       63       84       285       77       76       153  

Intermediates & Derivatives

     47       48       49       50       194       48       50       98  

Refining

     38       37       36       37       148       36       37       73  

Technology

     18       19       18       18       73       17       20       37  

Other

     —         —         1       1       2       —         2       2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Continuing Operations

   $ 237     $ 244     $ 236     $ 266     $ 983     $ 253     $ 254     $ 507  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA: (a)

                

Olefins & Polyolefins - Americas

   $ 595     $ 781     $ 814     $ 778     $ 2,968     $ 898     $ 951     $ 1,849  

Olefins & Polyolefins - Europe, Asia, International

     115       305       102       26       548       225       295       520  

Intermediates & Derivatives

     417       432       475       297       1,621       373       338       711  

Refining

     48       160       150       123       481       20       20       40  

Technology

     56       50       49       42       197       66       59       125  

Other

     (4     (1     (1     (1     (7     3       (11     (8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Continuing Operations

   $ 1,227     $ 1,727     $ 1,589     $ 1,265     $ 5,808     $ 1,585     $ 1,652     $ 3,237  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capital, turnarounds and IT deferred spending:

                

Olefins & Polyolefins - Americas

   $ 102     $ 135     $ 126     $ 105     $ 468     $ 122     $ 122     $ 244  

Olefins & Polyolefins - Europe, Asia, International

     60       39       60       95       254       63       46       109  

Intermediates & Derivatives

     18       24       44       73       159       106       141       247  

Refining

     38       27       24       47       136       93       67       160  

Technology

     9       8       12       14       43       7       6       13  

Other

     2       3       1       (1     5       —         5       5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     229       236       267       333       1,065       391       387       778  

Deferred charges included above

     (1     (3     (1     —         (5     —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Continuing Operations

   $ 228     $ 233     $ 266     $ 333     $ 1,060     $ 391     $ 387     $ 778  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(a) See Table 9 for EBITDA calculation.

 

LyondellBasell Industries    10
www.lyondellbasell.com   


Table 9 - EBITDA Calculation

 

 

     2012     2013  

(Millions of U.S. dollars)

   Q1     Q2     Q3     Q4     Total     Q1     Q2     YTD  

Net income attributable to the Company shareholders

   $ 600     $ 770     $ 846     $ 632     $ 2,848     $ 901     $ 929     $ 1,830  

Net loss attributable to non-controlling interests

     (1     (2     (2     (9     (14     (1     (2     (3

(Income) loss from discontinued operations, net of tax

     (5     —         7       22       24       6       (4     2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     594       768       851       645       2,858       906       923       1,829  

Provision for income taxes

     301       306       435       285       1,327       357       410       767  

Depreciation and amortization

     237       244       236       266       983       253       254       507  

Interest expense, net

     95       409       67       69       640       69       65       134  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 1,227     $ 1,727     $ 1,589     $ 1,265     $ 5,808     $ 1,585     $ 1,652     $ 3,237  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

LyondellBasell Industries    11
www.lyondellbasell.com   


Table 10 - Selected Segment Operating Information

 

 

     2012      2013  
     Q1      Q2      Q3      Q4      Total      Q1      Q2      YTD  

Olefins and Polyolefins - Americas

                       

Volumes (million pounds)

                       

Ethylene produced

     1,988        2,134        2,401        2,449        8,972        2,337        2,412        4,749  

Propylene produced

     533        615        633        582        2,363        624        529        1,153  

Polyethylene sold

     1,371        1,327        1,430        1,438        5,566        1,396        1,389        2,785  

Polypropylene sold

     649        634        639        576        2,498        565        637        1,202  

Benchmark Market Prices

                       

West Texas Intermediate crude oil (USD per barrel)

     103.0        93.4        92.2        88.2        94.1        94.4        94.2        94.3  

Light Louisiana Sweet (“LLS”) crude oil (USD per barrel)

     119.9        108.2        109.4        109.5        111.7        113.9        104.6        109.1  

Natural gas (USD per million BTUs)

     2.7        2.3        2.9        3.5        2.9        3.5        4.2        3.9  

U.S. weighted average cost of ethylene production (cents/pound)

     28.5        18.4        19.7        18.6        21.2        13.8        15.7        14.7  

U.S. ethylene (cents/pound)

     54.9        46.9        45.4        45.7        48.3        48.0        46.3        47.2  

U.S. polyethylene [high density] (cents/pound)

     67.0        63.0        59.3        59.7        62.3        66.7        68.7        67.7  

U.S. propylene (cents/pound)

     68.7        65.7        51.3        56.0        60.4        75.0        63.3        69.2  

U.S. polypropylene [homopolymer] (cents/pound)

     81.2        76.7        63.8        68.5        72.5        88.0        76.2        82.1  

Olefins and Polyolefins - Europe, Asia, International

                       

Volumes (million pounds)

                       

Ethylene produced

     945        930        802        833        3,510        912        991        1,903  

Propylene produced

     557        561        492        502        2,112        577        610        1,187  

Polyethylene sold

     1,320        1,130        1,243        1,250        4,943        1,206        1,314        2,520  

Polypropylene sold

     1,614        1,433        1,727        1,623        6,397        1,657        1,821        3,478  

Benchmark Market Prices (€0.01 per pound)

                       

Western Europe weighted average cost of ethylene production

     45.4        31.7        39.6        38.9        38.9        36.2        29.3        32.7  

Western Europe ethylene

     55.1        58.6        53.1        58.1        56.2        58.6        54.4        56.5  

Western Europe polyethylene [high density]

     58.6        60.9        57.2        61.0        59.4        61.2        56.8        59.0  

Western Europe propylene

     50.1        54.1        47.6        50.8        50.7        50.6        47.9        49.3  

Western Europe polypropylene [homopolymer]

     57.9        60.4        56.1        58.7        58.3        59.1        56.1        57.6  

Intermediates and Derivatives

                       

Volumes (million pounds)

                       

Propylene oxide and derivatives

     774        743        762        663        2,942        683        665        1,348  

Ethylene oxide and derivatives

     312        275        311        260        1,158        260        277        537  

Styrene monomer

     704        678        791        782        2,955        703        589        1,292  

Acetyls

     489        444        499        406        1,838        431        470        901  

TBA Intermediates

     462        448        441        399        1,750        434        357        791  

Volumes (million gallons)

                       

MTBE/ETBE

     205        189        256        199        849        185        235        420  

Benchmark Market Margins (cents per gallon)

                       

MTBE - Northwest Europe

     125.1        122.0        149.9        76.3        118.2        104.9        88.4        96.6  

Refining

                       

Volumes (thousands of barrels per day)

                       

Heavy crude oil processing rate

     259        267        240        255        255        173        265        219  

Benchmark Market Margins

                       

Light crude oil - 2-1-1

     9.34        14.04        14.71        7.91        11.50        9.80        11.54        10.70  

Light crude oil - Maya differential

     10.81        9.12        11.94        16.45        12.05        11.17        6.95        8.95  

 

 

Source: LYB and third party consultants

Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices.

 

LyondellBasell Industries    12
www.lyondellbasell.com   


Table 11 - Unaudited Income Statement Information

 

 

     2012     2013  

(Millions of U.S. dollars)

   Q1     Q2     Q3     Q4     Total     Q1     Q2     YTD  

Sales and other operating revenues

   $ 11,734     $ 11,248     $ 11,273     $ 11,097     $ 45,352     $ 10,669     $ 11,103     $ 21,772  

Cost of sales

     10,532       9,561       9,670       9,832       39,595       9,153       9,496       18,649  

Selling, general and administrative expenses

     223       201       236       249       909       213       208       421  

Research and development expenses

     39       37       39       57       172       36       35       71  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     940       1,449       1,328       959       4,676       1,267       1,364       2,631  

Income from equity investments

     46       27       32       38       143       59       43       102  

Interest expense, net

     (95     (409     (67     (69     (640     (69     (65     (134

Other income (expense), net

     4       7       (7     2       6       6       (9     (3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before taxes

     895       1,074       1,286       930       4,185       1,263       1,333       2,596  

Provision for income taxes

     301       306       435       285       1,327       357       410       767  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     594       768       851       645       2,858       906       923       1,829  

Income (loss) from discontinued operations, net of tax

     5       —         (7     (22     (24     (6     4       (2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     599       768       844       623       2,834       900       927       1,827  

Net loss attributable to non-controlling interests

     1       2       2       9       14       1       2       3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to the Company shareholders

   $ 600     $ 770     $ 846     $ 632     $ 2,848     $ 901     $ 929     $ 1,830  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

LyondellBasell Industries    13
www.lyondellbasell.com   


Table 12 - Unaudited Cash Flow Information

 

 

     2012     2013  

(Millions of U.S. dollars)

   Q1     Q2     Q3     Q4     Total     Q1     Q2     YTD  

Net cash provided by operating activities

   $ 913     $ 504     $ 2,042     $ 1,328     $ 4,787     $ 799     $ 1,264     $ 2,063  

Net cash used in investing activities

     (185     (245     (266     (317     (1,013     (408     (389     (797

Net cash provided by (used in) financing activities

     (140     55       (234     (1,826     (2,145     (234     (526     (760

 

 

 

LyondellBasell Industries    14
www.lyondellbasell.com   


Table 13 - Unaudited Balance Sheet Information

 

 

(Millions of U.S. dollars)

   March 31,
2012
     June 30,
2012
     September 30,
2012
     December 31,
2012
     March 31,
2013
     June 30,
2013
 

Cash and cash equivalents

   $ 1,670      $ 1,950      $ 3,527      $ 2,732      $ 2,879      $ 3,233  

Restricted cash

     9        14        19        5        6        2  

Accounts receivable, net

     4,209        3,888        4,083        3,904        3,878        4,023  

Inventories

     5,208        5,759        5,234        5,075        5,270        5,197  

Prepaid expenses and other current assets

     1,002        755        532        570        622        577  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total current assets

     12,098        12,366        13,395        12,286        12,655        13,032  

Property, plant and equipment, net

     7,426        7,237        7,412        7,696        7,779        7,979  

Investments and long-term receivables:

                 

Investment in PO joint ventures

     415        411        405        397        401        409  

Equity investments

     1,605        1,521        1,581        1,583        1,607        1,622  

Other investments and long-term receivables

     76        70        361        383        421        231  

Goodwill

     595        576        585        591        582        588  

Intangible assets, net

     1,149        1,103        1,073        1,038        999        966  

Other assets, net

     245        261        292        246        233        221  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 23,609      $ 23,545      $ 25,104      $ 24,220      $ 24,677      $ 25,048  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Current maturities of long-term debt

   $ —        $ —        $ —        $ 1      $ 1      $ 1  

Short-term debt

     42        48        47        95        115        114  

Accounts payable

     3,545        3,004        3,297        3,285        3,217        3,324  

Accrued liabilities

     1,049        915        1,177        1,157        1,217        1,047  

Deferred income taxes

     310        277        304        558        557        550  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total current liabilities

     4,946        4,244        4,825        5,096        5,107        5,036  

Long-term debt

     3,984        4,305        4,305        4,304        4,307        4,306  

Other liabilities

     2,281        2,208        2,153        2,327        2,306        2,325  

Deferred income taxes

     1,035        1,245        1,460        1,314        1,277        1,312  

Stockholders’ equity

     11,310        11,492        12,312        11,139        11,641        12,032  

Non-controlling interests

     53        51        49        40        39        37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 23,609      $ 23,545      $ 25,104      $ 24,220      $ 24,677      $ 25,048  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

 

LyondellBasell Industries    15
www.lyondellbasell.com