HOUSTON and LONDON, Oct. 23, 2015 /PRNewswire/ --
Third Quarter 2015 Highlights
- Income from continuing operations: $1.2 billion ($1.3 billion excluding LCM1)
- Diluted earnings per share: $2.55 per share ($2.80 per share excluding LCM, a quarterly record)
- EBITDA: $2.0 billion ($2.2 billion excluding LCM, a quarterly record)
- Last twelve months excluding LCM impacts: EBITDA of $8.5 billion and diluted earnings per share of $10.60
- Excluding the impacts of the LCM adjustments, third quarter EBITDA was the sixth consecutive quarter of approximately $2 billion, and the 12th consecutive quarter of year over year growth
- Repurchased 15.5 million shares during the quarter, or approximately 3.3 percent of the outstanding shares
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2015 of $1.2 billion, or $2.55 diluted earnings per share. Third quarter 2015 EBITDA was approximately $2.0 billion.
Comparisons with the prior quarter and third quarter 2014 are available in the following table:
|
Table 1 - Earnings Summary |
||||||
|
Three Months Ended |
Nine Months Ended |
|||||
|
September 30, |
June 30, |
September 30, |
September 30, |
|||
|
Millions of U.S. dollars (except share data) |
2015 |
2015 |
2014 |
2015 |
2014 |
|
|
Sales and other operating revenues |
$8,334 |
$9,145 |
$12,066 |
$25,664 |
$35,318 |
|
|
Net income(a) |
1,186 |
1,329 |
1,257 |
3,679 |
3,377 |
|
|
Income from continuing operations(b) |
1,189 |
1,326 |
1,260 |
3,682 |
3,376 |
|
|
Diluted earnings per share (U.S. dollars): |
||||||
|
Net income(c) |
2.54 |
2.82 |
2.45 |
7.77 |
6.38 |
|
|
Income from continuing operations(b) |
2.55 |
2.81 |
2.46 |
7.78 |
6.38 |
|
|
Diluted share count (millions) |
463 |
472 |
512 |
473 |
529 |
|
|
EBITDA(d) |
2,001 |
2,186 |
2,035 |
6,139 |
5,644 |
|
|
Excluding LCM Impacts: |
||||||
|
LCM charges (benefits), pre-tax |
181 |
(9) |
45 |
264 |
45 |
|
|
Income from continuing operations(b) |
1,303 |
1,320 |
1,288 |
3,848 |
3,404 |
|
|
Diluted earnings per share (U.S. dollars): |
||||||
|
Income from continuing operations(b) |
2.80 |
2.79 |
2.51 |
8.13 |
6.43 |
|
|
EBITDA(d) |
2,182 |
2,177 |
2,080 |
6,403 |
5,689 |
|
|
(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 net income |
||||||
|
and income from continuing operations. |
|
1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from our financial information in this press release can be found at the end of this press release under "Information Related to Financial Measures." |
|||
The third quarter included a $181 million non-cash, pre-tax lower of cost or market (LCM) inventory adjustment ($114 million after tax). Excluding the LCM adjustment, earnings from continuing operations during the third quarter totaled $1.3 billion, or $2.80 per share, and EBITDA was $2.2 billion.
"Our portfolio continued to demonstrate balance as third quarter EBITDA marked the fifth consecutive quarter of EBITDA in excess of $2 billion. From an industry standpoint, the third quarter was a transitional period during which markets rebalanced following tight second quarter supply and the price of crude oil declined. Despite this change, our portfolio continued to generate strong earnings as some product margins expanded while others contracted. During the third quarter, our Olefins and Polyolefins – Europe, Asia, International and Intermediates and Derivatives segments both achieved record EBITDA. In addition to continued earnings strength, cash generation remained strong and we repurchased 15.5 million shares, representing 3.3 percent of our outstanding shares," said Bob Patel, LyondellBasell Chief Executive Officer.
OUTLOOK
"Thus far, the fourth quarter reflects a more balanced global ethylene industry. We entered the quarter with lower ethylene-polyethylene chain margins following third quarter market rebalancing and oil price decline. During the fourth quarter, we expect typical seasonal behavior to adversely impact the earnings of our oxyfuels, polyolefins, and refining businesses. Looking ahead to 2016, we continue to forecast stable industry demand and operating rates and believe that the markets for our products will tighten as we move into the spring," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia, International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins and Polyolefins - Americas (O&P-Americas) – The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.
|
Table 2 - O&P–Americas Financial Overview |
||||||
|
Three Months Ended |
Nine Months Ended |
|||||
|
September 30, |
June 30, |
September 30, |
September 30, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
|
|
Operating income |
$740 |
$920 |
$1,068 |
$2,594 |
$2,622 |
|
|
EBITDA |
841 |
1,014 |
1,157 |
2,886 |
2,871 |
|
|
LCM charges (benefits), pre-tax |
79 |
(21) |
45 |
101 |
45 |
|
|
EBITDA excluding LCM adjustments |
920 |
993 |
1,202 |
2,987 |
2,916 |
|
Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA decreased $73 million versus the second quarter of 2015, excluding a $100 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins results decreased by approximately $140 million primarily due to a 6 cent per pound lower average ethylene price. Polyolefin results improved by approximately $70 million principally due to higher price spreads over monomer. Polyethylene and polypropylene spreads increased by 2 and 4 cents per pound, respectively. Joint venture equity income increased by $4 million.
Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA decreased by $282 million versus the third quarter 2014, excluding a $34 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins results decreased by $485 million primarily due to lower margins as a result of lower product prices. The price of ethylene decreased by approximately 26 cents per pound. This negative impact was partially offset by a lower cost of ethylene and higher volume from our La Porte ethylene plant expansion. Polyolefin results improved by approximately $195 million due to higher price spreads over monomer. Both polyethylene and polypropylene spreads improved by approximately 10 and 9 cents per pound, respectively. Joint venture equity income increased by $6 million.
Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) – The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, polypropylene compounds (global), Catalloy process resins and polybutene-1 resins.
|
Table 3 - O&P–EAI Financial Overview |
||||||
|
Three Months Ended |
Nine Months Ended |
|||||
|
September 30, |
June 30, |
September 30, |
September 30, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
|
|
Operating income |
$412 |
$359 |
$223 |
$1,007 |
$638 |
|
|
EBITDA |
549 |
492 |
343 |
1,398 |
1,018 |
|
|
LCM charges (benefits), pretax |
6 |
- - |
- - |
6 |
- - |
|
|
EBITDA excluding LCM adjustments |
555 |
492 |
343 |
1,404 |
1,018 |
|
Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA increased by $63 million versus the second quarter 2015, excluding a $6 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins results increased by $60 million primarily due to an approximately 9 cent per pound lower cost of ethylene production. Ethylene production was lower during the quarter as a result of planned maintenance at our Münchsmünster, Germany olefins plant. Combined polyolefin results increased by approximately $20 million. Improved polypropylene results offset a small decline in polyethylene results. Combined polypropylene compounds and polybutene-1 results decreased by approximately $10 million due in part to a seasonal volume decline. Equity income was unchanged.
Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA increased by $212 million versus the third quarter 2014, excluding a $6 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefin results increased by approximately $80 million primarily due to higher ethylene margins. Combined polyolefin results increased by approximately $115 million. Spreads in polyethylene and polypropylene increased by approximately 6 and 3 cents per pound, respectively. Polyethylene volume increased approximately 2 percent. Combined polypropylene compounds and polybutene-1 results decreased by approximately $10 million. Equity income increased by $23 million.
Intermediates and Derivatives (I&D) – The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol (TBA), isobutylene and tertiary butyl hydroperoxide), and derivatives (propylene glycol, propylene glycol ethers and butanediol), acetyls (including methanol), ethanol, oxyfuels, and ethylene oxide and its derivatives.
|
Table 4 - I&D Financial Overview |
|||||
|
Three Months Ended |
Nine Months Ended |
||||
|
September 30, |
June 30, |
September 30, |
September 30, |
||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
|
Operating income |
$403 |
$405 |
$321 |
$1,079 |
$1,012 |
|
EBITDA |
460 |
466 |
383 |
1,263 |
1,188 |
|
LCM charges, pre-tax |
46 |
17 |
- - |
107 |
- - |
|
EBITDA excluding LCM adjustments |
506 |
483 |
383 |
1,370 |
1,188 |
Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA increased $23 million versus the second quarter 2015, excluding a $29 million quarter to quarter variance as a result of the LCM inventory adjustments. Propylene oxide and derivative results increased by approximately $30 million primarily due to higher margins. Intermediate chemical results increased by approximately $30 million due to increased styrene and C4 chemical results which more than offset lower acetyls results. Oxyfuels results decreased by approximately $30 million due to seasonally lower margins and lower sales volume. Equity income decreased by $1 million.
Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA increased by $123 million versus the third quarter 2014, excluding a $46 million quarter to quarter variance as a result of the LCM inventory adjustments. Propylene oxide and derivative results were relatively unchanged. Intermediate chemical results improved by approximately $130 million primarily from the strength in styrene margins and improved ethylene oxide and glycol results. Oxyfuels results were lower by approximately $10 million. Equity income was unchanged.
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 |
Nine Months Ended |
||||
|
September 30, |
June 30, |
September 30, |
September 30, |
||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
|
Operating income |
$52 |
$119 |
$67 |
$245 |
$248 |
|
EBITDA |
93 |
159 |
110 |
401 |
376 |
|
LCM charges (benefits), pre-tax |
50 |
(5) |
- - |
50 |
- - |
|
EBITDA excluding LCM adjustments |
143 |
154 |
110 |
451 |
376 |
Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA decreased by $11 million versus the second quarter 2015, excluding a $55 million quarter to quarter variance as a result of the LCM inventory adjustments. Crude oil throughput decreased by 6,000 barrels per day to 249,000 barrels per day. The Maya 2-1-1 industry benchmark spread decreased by approximately $1 per barrel, averaging $22.77 per barrel. Secondary product price spreads improved partially offsetting the lower Maya 2-1-1 spread. The cost of RIN's was lower by $6 million.
Three months ended September 30, 2015 versus three months ended September 30, 2014 – Versus the third quarter of 2014, EBITDA increased by $33 million, excluding a $50 million quarter to quarter variance as a result of the LCM inventory adjustments. Crude oil throughput decreased by 15,000 barrels per day. The Maya 2-1-1 spread decreased by approximately $2 per barrel, however the corresponding Houston refinery spread increased by approximately $1 per barrel as secondary product margins improved. The cost of RIN's was lower by $8 million.
Technology – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.
|
Table 6 - Technology Financial Overview |
||||||
|
Three Months Ended |
Nine Months Ended |
|||||
|
September 30, |
June 30, |
September 30, |
September 30, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
|
|
Operating income |
$34 |
$45 |
$26 |
$143 |
$142 |
|
|
EBITDA |
45 |
57 |
41 |
178 |
188 |
|
Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA decreased by $12 million due to lower licensing revenue.
Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA increased by $4 million.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $373 million during the third quarter 2015. Our cash and liquid investments balance was $3.5 billion at September 30, 2015. We repurchased 15.5 million of our shares outstanding during the third quarter of 2015, at a total cost of $1.3 billion. There were 453 million common shares outstanding as of September 30, 2015. The company paid dividends of $361 million during the third quarter of 2015.
CONFERENCE CALL
LyondellBasell will host a conference call October 23 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Bob Patel, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.
The toll-free dial-in number in the U.S. is 888-677-1826. A complete listing of toll-free numbers by country is available at www.lyb.com/teleconference for international callers. The pass code for all numbers is 4843334.
The slides and webcast that accompany the call will be available at http://www.lyb.com/earnings.
A replay of the call will be available from 2 p.m. ET October 23 until November 23 at 11:59 p.m. ET. The replay dial-in numbers are 800-856-2254 (U.S.) and +1 402-280-9961 (international). The pass code for each is 5671.
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 56 sites in 19 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.
FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2014, which can be found at www.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.
INFORMATION RELATED TO FINANCIAL MEASURES
This release makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. The non-GAAP measures we have presented include income from continuing operations excluding LCM, diluted earnings per share excluding LCM, EBITDA and EBITDA excluding LCM. LCM stands for "lower of cost or market," which is an accounting rule consistent with GAAP related to the valuation of inventory. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, which results in us writing down the value of inventory to market value in accordance with the LCM rule, consistent with GAAP. This adjustment is somewhat unique to our 2010 company formation when all assets and liabilities were measured at fair value, our use of LIFO accounting, and the recent volatility 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) |
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|
2014 |
2015 |
|||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD |
|||||||||||||||||||||
|
Sales and other operating revenues: |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
3,357 |
$ |
3,462 |
$ |
3,750 |
$ |
3,379 |
$ |
13,948 |
$ |
2,551 |
$ |
2,679 |
$ |
2,516 |
$ |
7,746 |
||||||||||||
|
Olefins & Polyolefins - EAI |
3,778 |
4,069 |
3,995 |
3,361 |
15,203 |
2,911 |
3,061 |
2,932 |
8,904 |
|||||||||||||||||||||
|
Intermediates & Derivatives |
2,429 |
2,706 |
2,691 |
2,304 |
10,130 |
1,918 |
2,159 |
2,039 |
6,116 |
|||||||||||||||||||||
|
Refining |
2,756 |
3,250 |
3,146 |
2,558 |
11,710 |
1,607 |
2,102 |
1,693 |
5,402 |
|||||||||||||||||||||
|
Technology |
136 |
144 |
107 |
110 |
497 |
136 |
107 |
100 |
343 |
|||||||||||||||||||||
|
Other/elims |
(1,321) |
(1,514) |
(1,623) |
(1,422) |
(5,880) |
(938) |
(963) |
(946) |
(2,847) |
|||||||||||||||||||||
|
Continuing Operations |
$ |
11,135 |
$ |
12,117 |
$ |
12,066 |
$ |
10,290 |
$ |
45,608 |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
25,664 |
||||||||||||
|
Operating income (loss): |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
656 |
$ |
898 |
$ |
1,068 |
$ |
950 |
$ |
3,572 |
$ |
934 |
$ |
920 |
$ |
740 |
$ |
2,594 |
||||||||||||
|
Olefins & Polyolefins - EAI |
225 |
190 |
223 |
246 |
884 |
236 |
359 |
412 |
1,007 |
|||||||||||||||||||||
|
Intermediates & Derivatives |
316 |
375 |
321 |
208 |
1,220 |
271 |
405 |
403 |
1,079 |
|||||||||||||||||||||
|
Refining |
86 |
95 |
67 |
(354) |
(106) |
74 |
119 |
52 |
245 |
|||||||||||||||||||||
|
Technology |
60 |
56 |
26 |
29 |
171 |
64 |
45 |
34 |
143 |
|||||||||||||||||||||
|
Other |
(3) |
(1) |
1 |
(2) |
(5) |
(4) |
(3) |
9 |
2 |
|||||||||||||||||||||
|
Continuing Operations |
$ |
1,340 |
$ |
1,613 |
$ |
1,706 |
$ |
1,077 |
$ |
5,736 |
$ |
1,575 |
$ |
1,845 |
$ |
1,650 |
$ |
5,070 |
||||||||||||
|
Depreciation and amortization: |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
73 |
$ |
74 |
$ |
84 |
$ |
85 |
$ |
316 |
$ |
86 |
$ |
85 |
$ |
87 |
$ |
258 |
||||||||||||
|
Olefins & Polyolefins - EAI |
70 |
67 |
65 |
46 |
248 |
55 |
54 |
54 |
163 |
|||||||||||||||||||||
|
Intermediates & Derivatives |
55 |
56 |
55 |
59 |
225 |
60 |
56 |
55 |
171 |
|||||||||||||||||||||
|
Refining |
42 |
42 |
42 |
43 |
169 |
74 |
40 |
41 |
155 |
|||||||||||||||||||||
|
Technology |
16 |
15 |
16 |
14 |
61 |
12 |
12 |
11 |
35 |
|||||||||||||||||||||
|
Continuing Operations |
$ |
256 |
$ |
254 |
$ |
262 |
$ |
247 |
$ |
1,019 |
$ |
287 |
$ |
247 |
$ |
248 |
$ |
782 |
||||||||||||
|
EBITDA: (b) |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
736 |
$ |
978 |
$ |
1,157 |
$ |
1,040 |
$ |
3,911 |
$ |
1,031 |
$ |
1,014 |
$ |
841 |
$ |
2,886 |
||||||||||||
|
Olefins & Polyolefins - EAI |
356 |
319 |
343 |
348 |
1,366 |
357 |
492 |
549 |
1,398 |
|||||||||||||||||||||
|
Intermediates & Derivatives |
375 |
430 |
383 |
271 |
1,459 |
337 |
466 |
460 |
1,263 |
|||||||||||||||||||||
|
Refining |
129 |
137 |
110 |
(311) |
65 |
149 |
159 |
93 |
401 |
|||||||||||||||||||||
|
Technology |
76 |
71 |
41 |
44 |
232 |
76 |
57 |
45 |
178 |
|||||||||||||||||||||
|
Other |
(4) |
6 |
1 |
14 |
17 |
2 |
(2) |
13 |
13 |
|||||||||||||||||||||
|
Continuing Operations |
$ |
1,668 |
$ |
1,941 |
$ |
2,035 |
$ |
1,406 |
$ |
7,050 |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
6,139 |
||||||||||||
|
Capital, turnarounds and IT deferred spending: |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
231 |
$ |
306 |
$ |
208 |
$ |
167 |
$ |
912 |
$ |
149 |
$ |
140 |
$ |
159 |
$ |
448 |
||||||||||||
|
Olefins & Polyolefins - EAI |
33 |
27 |
45 |
86 |
191 |
38 |
27 |
49 |
114 |
|||||||||||||||||||||
|
Intermediates & Derivatives |
45 |
52 |
50 |
94 |
241 |
76 |
76 |
135 |
287 |
|||||||||||||||||||||
|
Refining |
32 |
20 |
27 |
44 |
123 |
33 |
28 |
23 |
84 |
|||||||||||||||||||||
|
Technology |
2 |
6 |
6 |
11 |
25 |
6 |
3 |
7 |
16 |
|||||||||||||||||||||
|
Other |
- - |
4 |
2 |
1 |
7 |
4 |
4 |
- - |
8 |
|||||||||||||||||||||
|
Continuing Operations |
$ |
343 |
$ |
415 |
$ |
338 |
$ |
403 |
$ |
1,499 |
$ |
306 |
$ |
278 |
$ |
373 |
$ |
957 |
||||||||||||
|
(a) EBITDA as presented herein includes the impacts of pre-tax LCM charges of $45 million in the third quarter of 2014, $715 million in the fourth quarter of 2014, $92 million in the first quarter of 2015 and $181 million in the third quarter of 2015. 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. See Tables 2 through 6 for LCM adjustments recorded for each segment. |
||||||||||||||||||||||||||||||
|
(b) See Table 8 for EBITDA calculation. |
|
Table 8 - EBITDA Calculation |
||||||||||||||||||||||||||||||
|
2014 |
2015 |
|||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD |
|||||||||||||||||||||
|
Net income attributable to the Company shareholders(a) |
$ |
945 |
$ |
1,178 |
$ |
1,258 |
$ |
793 |
$ |
4,174 |
$ |
1,166 |
$ |
1,330 |
$ |
1,185 |
$ |
3,681 |
||||||||||||
|
Net income (loss) attributable to non-controlling interests |
(1) |
(2) |
(1) |
(2) |
(6) |
(2) |
(1) |
1 |
(2) |
|||||||||||||||||||||
|
(Income) loss from discontinued operations, net of tax |
(1) |
(3) |
3 |
5 |
4 |
3 |
(3) |
3 |
3 |
|||||||||||||||||||||
|
Income from continuing operations(a) |
943 |
1,173 |
1,260 |
796 |
4,172 |
1,167 |
1,326 |
1,189 |
3,682 |
|||||||||||||||||||||
|
Provision for income taxes |
383 |
425 |
434 |
298 |
1,540 |
440 |
541 |
487 |
1,468 |
|||||||||||||||||||||
|
Depreciation and amortization |
256 |
254 |
262 |
247 |
1,019 |
287 |
247 |
248 |
782 |
|||||||||||||||||||||
|
Interest expense, net |
86 |
89 |
79 |
65 |
319 |
58 |
72 |
77 |
207 |
|||||||||||||||||||||
|
EBITDA(b) |
$ |
1,668 |
$ |
1,941 |
$ |
2,035 |
$ |
1,406 |
$ |
7,050 |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
6,139 |
||||||||||||
|
(a) Amounts presented herein include after-tax LCM charges of $28 million in the third quarter of 2014, $455 million in the fourth quarter of 2014, $58 million in the first quarter of 2015 and $114 million in the third quarter of 2015. 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. |
||||||||||||||||||||||||||||||
|
(b) EBITDA as presented herein includes the impacts of pre-tax LCM charges of $45 million in the third quarter of 2014, $715 million in the fourth quarter of 2014, $92 million in the first quarter of 2015 and $181 million in the third quarter of 2015. 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. |
|
Table 9 - Selected Segment Operating Information |
||||||||||||||||||||||
|
2014 |
2015 |
|||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD |
||||||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||
|
Ethylene produced |
1,979 |
1,721 |
2,301 |
2,458 |
8,459 |
2,364 |
2,415 |
2,514 |
7,293 |
|||||||||||||
|
Propylene produced |
611 |
648 |
559 |
719 |
2,537 |
805 |
740 |
697 |
2,242 |
|||||||||||||
|
Polyethylene sold |
1,517 |
1,363 |
1,603 |
1,451 |
5,934 |
1,473 |
1,575 |
1,577 |
4,625 |
|||||||||||||
|
Polypropylene sold |
627 |
605 |
681 |
592 |
2,505 |
627 |
698 |
662 |
1,987 |
|||||||||||||
|
Benchmark Market Prices |
||||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
98.61 |
102.99 |
97.25 |
73.20 |
92.91 |
48.57 |
57.95 |
45.36 |
56.60 |
|||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
104.36 |
105.55 |
101.03 |
76.58 |
96.92 |
52.84 |
62.93 |
50.20 |
55.32 |
|||||||||||||
|
Natural gas (USD per million BTUs) |
5.01 |
4.74 |
4.19 |
4.09 |
4.51 |
2.76 |
2.76 |
2.72 |
2.73 |
|||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
20.0 |
17.1 |
14.5 |
10.5 |
15.4 |
10.2 |
9.7 |
9.6 |
9.8 |
|||||||||||||
|
U.S. ethylene (cents/pound) |
48.3 |
47.2 |
51.8 |
44.8 |
48.0 |
34.8 |
34.2 |
30.3 |
33.1 |
|||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
76.3 |
77.0 |
78.0 |
76.7 |
77.0 |
65.7 |
67.3 |
64.3 |
65.8 |
|||||||||||||
|
U.S. propylene (cents/pound) |
73.3 |
69.7 |
70.8 |
69.8 |
70.9 |
49.7 |
41.7 |
33.2 |
41.5 |
|||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
88.3 |
84.7 |
86.3 |
85.8 |
86.3 |
67.7 |
61.7 |
59.3 |
62.9 |
|||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||
|
Ethylene produced |
989 |
1,024 |
1,039 |
1,059 |
4,111 |
1,007 |
1,047 |
944 |
2,998 |
|||||||||||||
|
Propylene produced |
582 |
617 |
629 |
618 |
2,446 |
600 |
632 |
575 |
1,807 |
|||||||||||||
|
Polyethylene sold |
1,275 |
1,363 |
1,284 |
1,254 |
5,176 |
1,533 |
1,360 |
1,304 |
4,197 |
|||||||||||||
|
Polypropylene sold |
1,509 |
1,707 |
1,633 |
1,561 |
6,410 |
1,817 |
1,529 |
1,673 |
5,019 |
|||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
32.9 |
34.3 |
31.5 |
18.2 |
29.2 |
22.9 |
23.2 |
14.4 |
20.2 |
|||||||||||||
|
Western Europe ethylene |
54.7 |
52.8 |
54.1 |
48.7 |
52.6 |
39.3 |
47.1 |
46.6 |
44.4 |
|||||||||||||
|
Western Europe polyethylene [high density] |
56.1 |
54.8 |
55.4 |
51.5 |
54.5 |
45.2 |
60.6 |
61.2 |
55.7 |
|||||||||||||
|
Western Europe propylene |
51.3 |
52.2 |
51.9 |
46.5 |
50.5 |
37.1 |
44.4 |
41.7 |
41.1 |
|||||||||||||
|
Western Europe polypropylene [homopolymer] |
59.9 |
61.3 |
61.4 |
57.0 |
59.9 |
49.8 |
62.5 |
59.3 |
57.2 |
|||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||
|
Propylene oxide and derivatives |
772 |
726 |
768 |
781 |
3,047 |
870 |
751 |
697 |
2,318 |
|||||||||||||
|
Ethylene oxide and derivatives |
262 |
319 |
211 |
226 |
1,018 |
268 |
312 |
282 |
862 |
|||||||||||||
|
Styrene monomer |
683 |
870 |
933 |
870 |
3,356 |
903 |
735 |
904 |
2,542 |
|||||||||||||
|
Acetyls |
683 |
592 |
613 |
619 |
2,507 |
547 |
810 |
733 |
2,090 |
|||||||||||||
|
TBA Intermediates |
416 |
391 |
461 |
384 |
1,652 |
433 |
321 |
421 |
1,175 |
|||||||||||||
|
Volumes (million gallons) |
||||||||||||||||||||||
|
MTBE/ETBE |
188 |
266 |
245 |
216 |
915 |
229 |
299 |
268 |
796 |
|||||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||||
|
MTBE - Northwest Europe |
63.4 |
90.7 |
111.8 |
109.1 |
94.0 |
64.0 |
106.0 |
119.0 |
96.8 |
|||||||||||||
|
Refining |
||||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||||
|
Heavy crude oil processing rate |
247 |
257 |
264 |
266 |
259 |
241 |
255 |
249 |
248 |
|||||||||||||
|
Benchmark Market Margins |
||||||||||||||||||||||
|
Light crude oil - 2-1-1 |
13.18 |
17.29 |
14.20 |
8.50 |
13.32 |
15.02 |
16.42 |
15.29 |
15.58 |
|||||||||||||
|
Light crude oil - Maya differential |
15.08 |
9.72 |
10.15 |
9.22 |
11.11 |
8.72 |
7.56 |
7.48 |
7.97 |
|||||||||||||
|
Source: LYB and third party consultants |
||||||||||||||||||||||
|
Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. Volumes presented represent third party sales of selected key products. |
|
Table 10 - Unaudited Income Statement Information |
||||||||||||||||||||||||||||||
|
2014 |
2015 |
|||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD |
|||||||||||||||||||||
|
Sales and other operating revenues |
$ |
11,135 |
$ |
12,117 |
$ |
12,066 |
$ |
10,290 |
$ |
45,608 |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
25,664 |
||||||||||||
|
Cost of sales(a) |
9,577 |
10,255 |
10,118 |
8,989 |
38,939 |
6,379 |
7,047 |
6,465 |
19,891 |
|||||||||||||||||||||
|
Selling, general and administrative expenses |
186 |
215 |
211 |
194 |
806 |
205 |
228 |
194 |
627 |
|||||||||||||||||||||
|
Research and development expenses |
32 |
34 |
31 |
30 |
127 |
26 |
25 |
25 |
76 |
|||||||||||||||||||||
|
Operating income(a) |
1,340 |
1,613 |
1,706 |
1,077 |
5,736 |
1,575 |
1,845 |
1,650 |
5,070 |
|||||||||||||||||||||
|
Income from equity investments |
61 |
68 |
64 |
64 |
257 |
69 |
90 |
93 |
252 |
|||||||||||||||||||||
|
Interest expense, net |
(86) |
(89) |
(79) |
(65) |
(319) |
(58) |
(72) |
(77) |
(207) |
|||||||||||||||||||||
|
Other income, net |
11 |
6 |
3 |
18 |
38 |
21 |
4 |
10 |
35 |
|||||||||||||||||||||
|
Income from continuing operations before income taxes(a) |
1,326 |
1,598 |
1,694 |
1,094 |
5,712 |
1,607 |
1,867 |
1,676 |
5,150 |
|||||||||||||||||||||
|
Provision for income taxes |
383 |
425 |
434 |
298 |
1,540 |
440 |
541 |
487 |
1,468 |
|||||||||||||||||||||
|
Income from continuing operations(b) |
943 |
1,173 |
1,260 |
796 |
4,172 |
1,167 |
1,326 |
1,189 |
3,682 |
|||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
1 |
3 |
(3) |
(5) |
(4) |
(3) |
3 |
(3) |
(3) |
|||||||||||||||||||||
|
Net income(b) |
944 |
1,176 |
1,257 |
791 |
4,168 |
1,164 |
1,329 |
1,186 |
3,679 |
|||||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
1 |
2 |
1 |
2 |
6 |
2 |
1 |
(1) |
2 |
|||||||||||||||||||||
|
Net income attributable to the Company shareholders(b) |
$ |
945 |
$ |
1,178 |
$ |
1,258 |
$ |
793 |
$ |
4,174 |
$ |
1,166 |
$ |
1,330 |
$ |
1,185 |
$ |
3,681 |
||||||||||||
|
(a) Amounts presented herein include pre-tax LCM charges of $45 million in the third quarter of 2014, $715 million in the fourth quarter of 2014, $92 million in the first quarter of 2015 and $181 million in the third quarter of 2015. The second quarter of 2015 includes a pre-tax benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment resulting from price recoveries during the period. |
||||||||||||||||||||||||||||||
|
(b) Amounts presented herein include after tax LCM charges of $28 million in the third quarter of 2014, $455 million in the fourth quarter of 2014, $58 million in the first quarter of 2015 and $114 million in the third quarter of 2015. The second quarter of 2015 includes an after tax benefit of $6 million for the partial reversal of the first quarter 2015 LCM adjustment discussed above. |
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations |
||||||||||||||||||||||||||||
|
2014 |
2015 |
|||||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD |
|||||||||||||||||||
|
Pretax charges (benefits): |
||||||||||||||||||||||||||||
|
Settlement of environmental indemnification agreement |
$ |
(52) |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
(52) |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
||||||||||
|
Lower of cost or market inventory adjustment |
- - |
- - |
45 |
715 |
760 |
92 |
(9) |
181 |
264 |
|||||||||||||||||||
|
Emission allowance credits, amortization |
- - |
- - |
- - |
- - |
- - |
35 |
- - |
- - |
35 |
|||||||||||||||||||
|
Total pretax charges (benefits) |
(52) |
- - |
45 |
715 |
708 |
127 |
(9) |
181 |
299 |
|||||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
- - |
- - |
(17) |
(260) |
(277) |
(47) |
3 |
(67) |
(111) |
|||||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
(52) |
$ |
- - |
$ |
28 |
$ |
455 |
$ |
431 |
$ |
80 |
$ |
(6) |
$ |
114 |
$ |
188 |
||||||||||
|
Effect on diluted earnings per share |
$ |
0.09 |
$ |
- - |
$ |
(0.05) |
$ |
(0.91) |
$ |
(0.82) |
$ |
(0.17) |
$ |
0.02 |
$ |
(0.25) |
$ |
(0.40) |
||||||||||
|
Table 12 - Unaudited Cash Flow Information |
||||||||||||||||||||||||||||||
|
2014 |
2015 |
|||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD |
|||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
801 |
$ |
1,797 |
$ |
1,434 |
$ |
2,016 |
$ |
6,048 |
$ |
1,468 |
$ |
1,446 |
$ |
1,768 |
$ |
4,682 |
||||||||||||
|
Net cash provided by (used in) investing activities |
(2,011) |
(246) |
(638) |
(636) |
(3,531) |
(443) |
(727) |
67 |
(1,103) |
|||||||||||||||||||||
|
Net cash used in financing activities |
(550) |
(2,217) |
(1,621) |
(1,519) |
(5,907) |
(401) |
(1,021) |
(1,684) |
(3,106) |
|||||||||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information |
||||||||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
June 30, |
September 30, |
||||||||||||||||||||
|
(Millions of U.S. dollars) |
2014 |
2014 |
2014 |
2014 |
2015 |
2015 |
2015 |
|||||||||||||||||||
|
Cash and cash equivalents |
$ |
2,702 |
$ |
2,030 |
$ |
1,185 |
$ |
1,031 |
$ |
1,616 |
$ |
1,325 |
$ |
1,474 |
||||||||||||
|
Restricted cash |
3 |
2 |
- - |
2 |
2 |
3 |
1 |
|||||||||||||||||||
|
Short-term investments |
1,402 |
1,299 |
1,544 |
1,593 |
1,478 |
1,989 |
1,602 |
|||||||||||||||||||
|
Accounts receivable, net |
4,141 |
4,264 |
4,105 |
3,448 |
3,089 |
3,373 |
2,924 |
|||||||||||||||||||
|
Inventories |
5,589 |
5,326 |
5,359 |
4,517 |
4,267 |
4,179 |
4,138 |
|||||||||||||||||||
|
Prepaid expenses and other current assets |
1,156 |
784 |
739 |
1,054 |
1,195 |
1,121 |
1,059 |
|||||||||||||||||||
|
Total current assets |
14,993 |
13,705 |
12,932 |
11,645 |
11,647 |
11,990 |
11,198 |
|||||||||||||||||||
|
Property, plant and equipment, net |
8,556 |
8,740 |
8,600 |
8,758 |
8,430 |
8,636 |
8,793 |
|||||||||||||||||||
|
Investments and long-term receivables: |
||||||||||||||||||||||||||
|
Investment in PO joint ventures |
424 |
418 |
397 |
384 |
373 |
357 |
357 |
|||||||||||||||||||
|
Equity investments |
1,693 |
1,702 |
1,690 |
1,636 |
1,581 |
1,612 |
1,602 |
|||||||||||||||||||
|
Other investments and long-term receivables |
62 |
58 |
54 |
44 |
38 |
126 |
125 |
|||||||||||||||||||
|
Goodwill |
605 |
602 |
576 |
566 |
533 |
543 |
543 |
|||||||||||||||||||
|
Intangible assets, net |
870 |
838 |
799 |
769 |
695 |
671 |
644 |
|||||||||||||||||||
|
Other assets |
624 |
593 |
583 |
481 |
709 |
670 |
673 |
|||||||||||||||||||
|
Total assets |
$ |
27,827 |
$ |
26,656 |
$ |
25,631 |
$ |
24,283 |
$ |
24,006 |
$ |
24,605 |
$ |
23,935 |
||||||||||||
|
Current maturities of long-term debt |
$ |
3 |
$ |
3 |
$ |
2 |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
3 |
||||||||||||
|
Short-term debt |
58 |
55 |
56 |
346 |
514 |
582 |
573 |
|||||||||||||||||||
|
Accounts payable |
3,642 |
3,690 |
3,431 |
3,064 |
2,631 |
2,755 |
2,450 |
|||||||||||||||||||
|
Accrued liabilities |
1,477 |
1,310 |
1,460 |
1,554 |
1,482 |
1,455 |
1,784 |
|||||||||||||||||||
|
Deferred income taxes |
540 |
570 |
685 |
469 |
429 |
434 |
383 |
|||||||||||||||||||
|
Total current liabilities |
5,720 |
5,628 |
5,634 |
5,437 |
5,060 |
5,229 |
5,193 |
|||||||||||||||||||
|
Long-term debt |
6,766 |
6,766 |
6,753 |
6,757 |
7,749 |
7,728 |
7,742 |
|||||||||||||||||||
|
Other liabilities |
1,838 |
1,851 |
1,795 |
2,122 |
2,038 |
2,063 |
2,044 |
|||||||||||||||||||
|
Deferred income taxes |
1,677 |
1,623 |
1,574 |
1,623 |
1,653 |
1,635 |
1,604 |
|||||||||||||||||||
|
Stockholders' equity |
11,791 |
10,753 |
9,843 |
8,314 |
7,478 |
7,927 |
7,328 |
|||||||||||||||||||
|
Non-controlling interests |
35 |
35 |
32 |
30 |
28 |
23 |
24 |
|||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
27,827 |
$ |
26,656 |
$ |
25,631 |
$ |
24,283 |
$ |
24,006 |
$ |
24,605 |
$ |
23,935 |
||||||||||||
Photo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell Industries