LyondellBasell Reports First-Quarter 2015 Results

Apr 24, 2015

 

HOUSTON and LONDON, April 24, 2015 /PRNewswire/ --

First Quarter 2015 Highlights

  • Income from continuing operations: $1.17 billion ($1.23 billion excluding LCM1)
  • Diluted earnings per share: $2.42 per share ($2.54 per share excluding LCM, our highest diluted quarterly EPS ever)
  • EBITDA: $1.95 billion ($2.04 billion excluding LCM)
  • Share repurchases and dividends totaled $1.69 billion; repurchased 15.7 million shares during the first quarter, more than 3% of the outstanding shares

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2015 of $1.17 billion, or $2.42 diluted earnings per share.  First quarter 2015 EBITDA was approximately $1.95 billion.   

Comparisons with the prior quarter and first quarter 2014 are available in the following table:

 

Table 1 - Earnings Summary 

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

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

2015

2014

2014

 

Sales and other operating revenues 

$8,185

$10,290

$11,135

 

Net income(a)

1,164

791

944

 

Income from continuing operations(b)

1,167

796

943

 

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

       
 

Net income(c)

2.41

1.54

1.72

 
 

Income from continuing operations(b)

2.42

1.57

1.72

 

Diluted share count (millions)  

481

499

548

 

EBITDA(d)

1,952

1,406

1,668

 
           

Excluding LCM Impact: 

       

LCM, pre-tax 

92

715

- -

 

Income from continuing operations(b)

1,225

1,251

943

 

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

       
 

Income from continuing operations(b)

2.54

2.48

1.72

 

EBITDA(d)

2,044

2,121

1,668

 
           

(a)  Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10.

 

(b)  See Table 11 for charges and benefits to income from continuing operations.

 

(c)  Includes diluted earnings (loss) per share attributable to discontinued operations.

 

(d)  See the end of this release for an explanation of the Company's use of EBITDA and Table 8 for reconciliations of EBITDA to net income and income from continuing operations.

 
   
           

1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from our financial information in this press release can be found at the end of this press release under "Information Related to Financial Measures."

 

 

The first quarter included a $92 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($58 million after tax).  This charge is somewhat unique to our 2010 company formation when all assets and liabilities were measured at fair value, our use of LIFO accounting, and the recent declines in pricing for many of our raw material and finished goods inventories.  Excluding the LCM adjustment, earnings from continuing operations during the first quarter totaled $1.2 billion, or $2.54 per share, and EBITDA was $2.0 billion.

"The first quarter of 2015 continued at a pace that made 2014 a record year.  Excluding the LCM inventory impacts, first quarter diluted earnings per share of $2.54 was a new quarterly high for LyondellBasell, and EBITDA exceeded $2.0 billion for the third consecutive quarter.  We have generated EBITDA of $8.2 billion over the past twelve months excluding the impacts of the LCM.  Quarterly EBITDA has been very steady during this period.  During the first quarter, we achieved these strong results in a market in which crude oil price declines pressured product prices.  However, the abundance of low cost natural gas-based raw materials, supply and demand tightness in several products, and our flexible portfolio provided balance to offset the impact of lower prices.  Our business portfolio proves to be resilient in a volatile market environment, delivering strong results," said Bob Patel, LyondellBasell Chief Executive Officer.

OUTLOOK
"During the first few weeks of April, business conditions within our olefins and polyolefins segments have been relatively consistent with the first quarter.  Planned and unplanned industry downtime has continued to support polyolefins pricing.  Additionally, in the U.S., NGL feedstock inventories stand at or near record levels, production has remained strong, and NGL prices are low.  During the quarter, we expect our Intermediate and Derivatives segment to benefit from normal seasonal trends.  Thus far, Refining industry spreads have declined versus the first quarter but remain healthy," Patel said.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia, International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.

Comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.

Olefins and Polyolefins - Americas (O&P-Americas) – The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.

 

         

Table 2 - O&P–Americas Financial Overview

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2015

2014

2014

 

Operating income

$934

$950

$656

 

EBITDA

1,031

1,040

736

 

LCM, pre-tax

43

234

- -

 

EBITDA excluding LCM

1,074

1,274

736

 
           

 

Three months ended March 31, 2015 versus three months ended December 31, 2014 –EBITDA declined versus the fourth quarter of 2014 by $200 million, excluding a $191 million quarter to quarter variance as a result of the LCM inventory adjustments.  Olefins results declined by $280 million as the price of ethylene declined by approximately 14 cents per pound, which was partially offset by a slightly lower cost of ethylene production.    Polyolefin results improved by approximately $75 million principally due to stronger spreads.  Polyethylene and polypropylene spreads improved by approximately 4 and 3 cents per pound, respectively.  Joint venture equity income increased by $2 million.

Three months ended March 31, 2015 versus three months ended March 31, 2014 – EBITDA increased by $338 million versus the first quarter 2014, excluding a $43 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins improved by $245 million primarily due to higher operating rates and sales volumes as the first quarter of 2014 was impacted by scheduled and unscheduled operating disruptions.  The price of ethylene declined by approximately 13 cents per pound.  This negative impact was partially offset by the lower cost of production in the first quarter of 2015.   Polyolefin results improved by approximately $85 million as a result of increased volumes and improved spreads.  Polyethylene and polypropylene spreads improved by approximately 3 and 5 cents per pound, respectively.  Joint venture equity income increased by $3 million.

Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) – The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, polypropylene compounds (global), Catalloy process resins and polybutene-1 resins.

 

Table 3 - O&P–EAI Financial Overview

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2015

2014

2014

 

Operating income

$236

$246

$225

 

EBITDA

357

348

356

 

LCM, pre-tax

- -

44

- -

 

EBITDA excluding LCM

357

392

356

 
           

 

Three months ended March 31, 2015 versus three months ended December 31, 2014 – EBITDA declined by $35 million versus the fourth quarter 2014, excluding a $44 million quarter to quarter variance as a result of the fourth quarter LCM inventory adjustment.  Olefin results declined by $105 million primarily due to a lower ethylene price which declined by approximately 14 cents per pound.   Raw materials with an economic advantage to naphtha represented 49 percent of ethylene production during the first quarter of 2015.  Increased volumes were primarily responsible for an approximately $45 million increase in polyolefins respectively.  Combined polypropylene compounds and polybutene-1 followed typical seasonal trends as results improved by approximately $30 million.  Equity income increased by $1 million.

Three months ended March 31, 2015 versus three months ended March 31, 2014 – EBITDA was relatively unchanged versus the first quarter 2014.  The first quarter of 2014 included a $52 million positive environmental settlement.  Olefin results increased by approximately $10 million primarily due to higher ethylene margins from a lower cost of naphtha.   Combined polyolefin results increased by approximately $60 million.  Margin and spreads in European ethylene and polyolefins were relatively unchanged in dollars while increasing on a Euro basis.  Polyethylene and polypropylene volumes each increased by 20 percent.  Combined polypropylene compounds and polybutene-1 results were relatively unchanged.  Equity income increased by $3 million.

Intermediates and Derivatives (I&D) – The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol (TBA), isobutylene and tertiary butyl hydroperoxide), and derivatives (propylene glycol, propylene glycol ethers and butanediol), acetyls (including methanol), ethylene oxide and its derivatives, ethanol, and oxyfuels. 

 

Table 4 - I&D Financial Overview 

       
 

Three Months Ended

 
 

March 31,

December 31,

March 31,

 

Millions of U.S. dollars 

2015

2014

2014

 

Operating income 

$271

$208

$316

 

EBITDA 

337

271

375

 

LCM, pre-tax 

44

93

- -

 

EBITDA excluding LCM 

381

364

375

 
         

 

Three months ended March 31, 2015 versus three months ended December 31, 2014 – EBITDA increased by $17 million versus the fourth quarter 2014, excluding a $49 million quarter to quarter variance as a result of the LCM inventory adjustments.  Propylene oxide and derivative results improved by approximately $15 million due to higher volumes.  Intermediate chemical results increased by $35 million primarily as a result of higher margins.  The negative impact of the Channelview methanol plant turnaround was offset by increased results in EO/EG, styrene and C4 chemicals.  Oxyfuels results declined by approximately $35 million due to lower margins following strong fourth quarter 2014 results.  Equity income increased by $2 million.

Three months ended March 31, 2015 versus three months ended March 31, 2014 – EBITDA increased by $6 million versus the first quarter 2014, excluding a $44 million quarter to quarter variance as a result of the LCM inventory adjustment.  Propylene oxide and derivative results were relatively unchanged.  Intermediate chemical results were relatively unchanged as lower acetyl and EO/EG results were offset by higher styrene results.  Oxyfuels results were also relatively unchanged.  Equity income increased by $2 million.

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

 

Table 5 - Refining Financial Overview

     
 

Three Months Ended

 
 

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2015

2014

2014

 

Operating income (loss)

$74

($354)

$86

 

EBITDA

149

(311)

129

 

LCM, pre-tax

5

344

- -

 

EBITDA excluding LCM

154

33

129

 
         

 

Three months ended March 31, 2015 versus three months ended December 31, 2014 – EBITDA increased by $121 million versus the fourth quarter 2014, excluding a $339 million quarter to quarter variance as a result of the LCM inventory adjustments. Crude oil throughput declined by 25,000 barrels per day as rates were primarily constrained by maintenance internally and at a third party off-gas processor.  The Maya 2-1-1 industry benchmark spread increased by approximately $6 per barrel, averaging $23.74 per barrel.  The refinery spread increased somewhat less than the benchmark.  The percentage of combined Canadian and light crudes approximately doubled versus the fourth quarter of 2014.

Three months ended March 31, 2015 versus three months ended March 31, 2014 – Versus the first quarter of 2014, EBITDA increased by $25 million, excluding a $5 million quarter to quarter variance as a result of the LCM inventory adjustment.  Crude oil throughput declined by 6,000 barrels per day in the first quarter of 2015.  The Maya 2-1-1 spread declined by approximately $4.52 per barrel.  The refinery spread was relatively unchanged year over year, declining by $0.34 per barrel.  During the first quarter of 2014, yields, capture rates, and throughput were negatively impacted by maintenance. The cost of RIN's increased by approximately $10 million.

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

 

         

Table 6 - Technology Financial Overview

       
   

Three Months Ended

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2015

2014

2014

 

Operating income

$64

$29

$60

 

EBITDA

76

44

76

 
           

 

Three months ended March 31, 2015 versus three months ended December 31, 2014 – EBITDA increased by $32 million.  Increased catalyst results represented approximately two thirds of the increase.

Three months ended March 31, 2015 versus three months ended March 31, 2014 – EBITDA was unchanged.  Catalyst results improved while licensing declined.

Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $306 million during the first quarter 2015. Our cash and short-term securities balance was $3.6 billion at March 31, 2015. We repurchased 15.7 million of our outstanding ordinary shares during the first quarter of 2015.  There were 475 million common shares outstanding as of March 31, 2015. The company paid dividends of $334 million during the first quarter of 2015 and issued $1.0 billion in bonds at a coupon rate of 4.625% due in 2055.

CONFERENCE CALL
LyondellBasell will host a conference call April 24 at 11 a.m. ET.  Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.

The toll-free dial-in number in the U.S. is 888-677-1826. A complete listing of toll-free numbers by country is available at www.lyb.com/teleconference for international callers. The pass code for all numbers is 4843334.

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

A replay of the call will be available from 2 p.m. ET April 24 until May 24 at 11 p.m. ET.  The replay dial-in numbers are 800-839-4837 (U.S.) and +1 203-369-3588 (international). The pass code for each is 4558.

ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyb.com) manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.

FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt.  Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2014, which can be found at www.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

INFORMATION RELATED TO FINANCIAL MEASURES
This release makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.  The non-GAAP measures we have presented include income from continuing operations excluding LCM, diluted earnings per share excluding LCM, EBITDA and EBITDA excluding LCM.  LCM stands for "lower of cost or market," which is an accounting rule consistent with GAAP related to the valuation of inventory.  Our inventories are stated at the lower of cost or market.  Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs.  Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory.  In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, which results in us writing down the value of inventory to market value in accordance with the LCM rule, consistent with GAAP. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA and earnings and EBITDA excluding LCM, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization.  EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternative to operating cash flows as a measure of our liquidity.  We have also presented financial information herein exclusive of adjustments for LCM.

Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 8 at the end of this release.

OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.

 

 

 

Table 7 - Reconciliation of Segment Information to Consolidated Financial Information (a)

                                           
         

2014

 

2015

 

(Millions of U.S. dollars) 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Sales and other operating revenues:  

                                 
   

Olefins & Polyolefins - Americas 

$

3,357

 

$

3,462

 

$

3,750

 

$

3,379

 

$

13,948

 

$

2,551

   

Olefins & Polyolefins - EAI 

 

3,778

   

4,069

   

3,995

   

3,361

   

15,203

   

2,911

   

Intermediates & Derivatives 

 

2,429

   

2,706

   

2,691

   

2,304

   

10,130

   

1,918

   

Refining 

 

2,756

   

3,250

   

3,146

   

2,558

   

11,710

   

1,607

   

Technology 

 

136

   

144

   

107

   

110

   

497

   

136

   

Other/elims 

 

(1,321)

   

(1,514)

   

(1,623)

   

(1,422)

   

(5,880)

   

(938)

     

Continuing Operations 

$

11,135

 

$

12,117

 

$

12,066

 

$

10,290

 

$

45,608

 

$

8,185

 

Operating income (loss):  

                                 
   

Olefins & Polyolefins - Americas 

$

656

 

$

898

 

$

1,068

 

$

950

 

$

3,572

 

$

934

   

Olefins & Polyolefins - EAI 

 

225

   

190

   

223

   

246

   

884

   

236

   

Intermediates & Derivatives 

 

316

   

375

   

321

   

208

   

1,220

   

271

   

Refining 

 

86

   

95

   

67

   

(354)

   

(106)

   

74

   

Technology 

 

60

   

56

   

26

   

29

   

171

   

64

   

Other 

 

(3)

   

(1)

   

1

   

(2)

   

(5)

   

(4)

     

Continuing Operations 

$

1,340

 

$

1,613

 

$

1,706

 

$

1,077

 

$

5,736

 

$

1,575

 

Depreciation and amortization: 

                                 
   

Olefins & Polyolefins - Americas 

$

73

 

$

74

 

$

84

 

$

85

 

$

316

 

$

86

   

Olefins & Polyolefins - EAI 

 

70

   

67

   

65

   

46

   

248

   

55

   

Intermediates & Derivatives 

 

55

   

56

   

55

   

59

   

225

   

60

   

Refining 

 

42

   

42

   

42

   

43

   

169

   

74

   

Technology 

 

16

   

15

   

16

   

14

   

61

   

12

     

Continuing Operations 

$

256

 

$

254

 

$

262

 

$

247

 

$

1,019

 

$

287

 

EBITDA: (b)

                                 
   

Olefins & Polyolefins - Americas 

$

736

 

$

978

 

$

1,157

 

$

1,040

 

$

3,911

 

$

1,031

   

Olefins & Polyolefins - EAI 

 

356

   

319

   

343

   

348

   

1,366

   

357

   

Intermediates & Derivatives 

 

375

   

430

   

383

   

271

   

1,459

   

337

   

Refining 

 

129

   

137

   

110

   

(311)

   

65

   

149

   

Technology 

 

76

   

71

   

41

   

44

   

232

   

76

   

Other 

 

(4)

   

6

   

1

   

14

   

17

   

2

     

Continuing Operations 

$

1,668

 

$

1,941

 

$

2,035

 

$

1,406

 

$

7,050

 

$

1,952

 

Capital, turnarounds and IT deferred spending:

                                 
   

Olefins & Polyolefins - Americas 

$

231

 

$

306

 

$

208

 

$

167

 

$

912

 

$

149

   

Olefins & Polyolefins - EAI 

 

33

   

27

   

45

   

86

   

191

   

38

   

Intermediates & Derivatives 

 

45

   

52

   

50

   

94

   

241

   

76

   

Refining 

 

32

   

20

   

27

   

44

   

123

   

33

   

Technology 

 

2

   

6

   

6

   

11

   

25

   

6

   

Other 

 

- -

   

4

   

2

   

1

   

7

   

4

     

Continuing Operations 

$

343

 

$

415

 

$

338

 

$

403

 

$

1,499

 

$

306

                                           
                                           

(a)  EBITDA as presented herein includes the impacts of pre-tax LCM adjustments of $45 million and $715 million in the third and fourth quarters of 2014, respectively, and $92 million in the first quarter of 2015. See Tables 2 through 6 for LCM adjustments recorded for each segment.

(b) See Table 8 for EBITDA calculation. 

 

 

Table 8 - EBITDA Calculation

                                           
         

2014

 

2015

 

(Millions of U.S. dollars) 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                     
 

Net income attributable to the Company shareholders(a)

$

945

 

$

1,178

 

$

1,258

 

$

793

 

$

4,174

 

$

1,166

 

Net income (loss) attributable to non-controlling interests 

 

(1)

   

(2)

   

(1)

   

(2)

   

(6)

   

(2)

 

(Income) loss from discontinued operations, net of tax 

 

(1)

   

(3)

   

3

   

5

   

4

   

3

 

Income from continuing operations(a)

 

943

   

1,173

   

1,260

   

796

   

4,172

   

1,167

   

Provision for income taxes 

 

383

   

425

   

434

   

298

   

1,540

   

440

   

Depreciation and amortization  

 

256

   

254

   

262

   

247

   

1,019

   

287

   

Interest expense, net 

 

86

   

89

   

79

   

65

   

319

   

58

 

EBITDA(b)

$

1,668

 

$

1,941

 

$

2,035

 

$

1,406

 

$

7,050

 

$

1,952

                                           
                                           

(a) Amounts presented herein include after-tax LCM adjustments of $28 million and $455 million in the third and fourth quarters of 2014, respectively, and $58 million in the first quarter of 2015.

(b) EBITDA as presented herein includes pre-tax LCM adjustments of $45 million and $715 million in the third and fourth quarters of 2014, respectively, and $92 million in the first quarter of 2015.

 

 

Table 9 - Selected Segment Operating Information

                                 
           

2014

 

2015

           

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Olefins and Polyolefins - Americas

                       
   

Volumes (million pounds)

                       
     

Ethylene produced

 

1,979

 

1,721

 

2,301

 

2,458

 

8,459

 

2,364

     

Propylene produced

 

611

 

648

 

559

 

719

 

2,537

 

805

     

Polyethylene sold

 

1,406

 

1,451

 

1,577

 

1,486

 

5,920

 

1,497

     

Polypropylene sold

 

614

 

632

 

681

 

596

 

2,523

 

633

   

Benchmark Market Prices

                       
     

West Texas Intermediate crude oil (USD per barrel)

 

98.61

 

102.99

 

97.25

 

73.20

 

92.91

 

48.57

     

Light Louisiana Sweet ("LLS") crude oil (USD per barrel)

 

104.36

 

105.55

 

101.03

 

76.58

 

96.92

 

52.84

     

Natural gas (USD per million BTUs)

 

5.01

 

4.74

 

4.19

 

4.09

 

4.51

 

2.76

     

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

 

20.0

 

17.1

 

14.5

 

10.5

 

15.4

 

10.2

     

U.S. ethylene (cents/pound)

 

48.3

 

47.2

 

51.8

 

44.8

 

48.0

 

34.8

     

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

 

76.3

 

77.0

 

78.0

 

76.7

 

77.0

 

65.7

     

U.S. propylene (cents/pound)

 

73.3

 

69.7

 

70.8

 

69.8

 

70.9

 

49.7

     

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

 

88.3

 

84.7

 

86.3

 

85.8

 

86.3

 

67.7

                                 
 

Olefins and Polyolefins - Europe, Asia, International

                       
   

Volumes (million pounds)

                       
     

Ethylene produced

 

989

 

1,024

 

1,039

 

1,059

 

4,111

 

1,007

     

Propylene produced

 

582

 

617

 

629

 

618

 

2,446

 

600

     

Polyethylene sold

 

1,275

 

1,363

 

1,284

 

1,254

 

5,176

 

1,533

     

Polypropylene sold

 

1,509

 

1,707

 

1,633

 

1,561

 

6,410

 

1,817

   

Benchmark Market Prices (€0.01 per pound)

                       
     

Western Europe weighted average cost of ethylene production

 

32.9

 

34.3

 

31.5

 

18.2

 

29.2

 

22.9

     

Western Europe ethylene

 

54.7

 

52.8

 

54.1

 

48.7

 

52.6

 

39.3

     

Western Europe polyethylene [high density]

 

56.1

 

54.8

 

55.4

 

51.5

 

54.5

 

45.2

     

Western Europe propylene

 

51.3

 

52.2

 

51.9

 

46.5

 

50.5

 

37.1

     

Western Europe polypropylene [homopolymer]

 

59.9

 

61.3

 

61.4

 

57.0

 

59.9

 

49.8

                               
 

Intermediates and Derivatives

                       
   

Volumes (million pounds)

                       
     

Propylene oxide and derivatives

 

772

 

726

 

768

 

781

 

3,047

 

870

     

Ethylene oxide and derivatives

 

262

 

319

 

211

 

226

 

1,018

 

268

     

Styrene monomer

 

683

 

870

 

933

 

870

 

3,356

 

903

     

Acetyls

 

683

 

592

 

613

 

619

 

2,507

 

547

     

TBA Intermediates

 

416

 

391

 

461

 

384

 

1,652

 

433

   

Volumes (million gallons)

                       
     

MTBE/ETBE

 

188

 

266

 

245

 

216

 

915

 

229

   

Benchmark Market Margins  (cents per gallon)

                       
     

MTBE - Northwest Europe

 

63.4

 

90.7

 

111.8

 

109.1

 

94.0

 

64.0

                             
 

Refining

                       
   

Volumes (thousands of barrels per day)

                       
     

Heavy crude oil processing rate

 

247

 

257

 

264

 

266

 

259

 

241

   

Benchmark Market Margins

                       
     

Light crude oil - 2-1-1

 

13.18

 

17.29

 

14.20

 

8.50

 

13.32

 

15.02

     

Light crude oil - Maya differential

 

15.08

 

9.72

 

10.15

 

9.22

 

11.11

 

8.72

                               
                                 

Source:  LYB and third party consultants

Note:  Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. Volumes presented represent third party sales of selected key products.

 

 

Table 10 - Unaudited Income Statement Information

                                           
         

2014

 

2015

 

(Millions of U.S. dollars) 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                     
 

Sales and other operating revenues 

$

11,135

 

$

12,117

 

$

12,066

 

$

10,290

 

$

45,608

 

$

8,185

 

Cost of sales(a)

 

9,577

   

10,255

   

10,118

   

8,989

   

38,939

   

6,379

 

Selling, general and administrative expenses 

 

186

   

215

   

211

   

194

   

806

   

205

 

Research and development expenses 

 

32

   

34

   

31

   

30

   

127

   

26

   

Operating income(a)

 

1,340

   

1,613

   

1,706

   

1,077

   

5,736

   

1,575

 

Income from equity investments 

 

61

   

68

   

64

   

64

   

257

   

69

 

Interest expense, net 

 

(86)

   

(89)

   

(79)

   

(65)

   

(319)

   

(58)

 

Other income, net 

 

11

   

6

   

3

   

18

   

38

   

21

   

Income from continuing operations before income taxes(a)

 

1,326

   

1,598

   

1,694

   

1,094

   

5,712

   

1,607

 

Provision for income taxes 

 

383

   

425

   

434

   

298

   

1,540

   

440

   

Income from continuing operations(b)

 

943

   

1,173

   

1,260

   

796

   

4,172

   

1,167

 

Income (loss) from discontinued operations, net of tax 

 

1

   

3

   

(3)

   

(5)

   

(4)

   

(3)

     

Net income(b)

 

944

   

1,176

   

1,257

   

791

   

4,168

   

1,164

 

Net loss attributable to non-controlling interest 

 

1

   

2

   

1

   

2

   

6

   

2

     

Net income attributable to the Company shareholders(b)

$

945

 

$

1,178

 

$

1,258

 

$

793

 

$

4,174

 

$

1,166

                                           
                                           

(a) Amounts included herein include pre-tax LCM adjustments of $45 million and $715 million in the third and fourth quarters of 2014, respectively, and $92 million in the first quarter of 2015.

(b) Amounts included herein include after-tax LCM adjustments of $28 million and $455 million in the third and fourth quarters of 2014, respectively, and $58 million in the first quarter of 2015.

 

 

Table 11 - Charges (Benefits) Included in Income from Continuing Operations

                                       
     

2014

 

2015

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

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

Pretax charges (benefits):

                                 
 

Settlement of environmental indemnification agreement

$

(52)

 

$

- -

 

$

- -

 

$

- -

 

$

(52)

 

$

- -

 

Lower of cost or market inventory adjustment

 

- -

   

- -

   

45

   

715

   

760

   

92

 

Emission allowance credits, amortization

 

- -

   

- -

   

- -

   

- -

   

- -

   

35

Total pretax charges (benefits)

 

(52)

   

- -

   

45

   

715

   

708

   

127

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

 

- -

   

- -

   

(17)

   

(260)

   

(277)

   

(47)

After-tax effect of net charges (benefits)

$

(52)

 

$

- -

 

$

28

 

$

455

 

$

431

 

$

80

Effect on diluted earnings per share

$

0.09

 

$

- -

 

$

(0.05)

 

$

(0.91)

 

$

(0.82)

 

$

(0.17)

 

 

 

Table 12 - Unaudited Cash Flow Information

                                           
         

2014

 

2015

 

(Millions of U.S. dollars) 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                           
 

Net cash provided by operating activities 

$

801

 

$

1,797

 

$

1,434

 

$

2,016

 

$

6,048

 

$

1,468

                                           
 

Net cash used in investing activities 

 

(2,011)

   

(246)

   

(638)

   

(636)

   

(3,531)

   

(443)

                                       
 

Net cash used in financing activities 

 

(550)

   

(2,217)

   

(1,621)

   

(1,519)

   

(5,907)

   

(401)

                                           
                                           
                                           

 

Table 13 - Unaudited Balance Sheet Information

                                         
             

March 31,

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

(Millions of U.S. dollars)

2014

 

2014

 

2014

 

2014

 

2015

                                         
 

Cash and cash equivalents

$

2,702

 

$

2,030

 

$

1,185

 

$

1,031

 

$

1,616

 

Restricted cash

 

3

   

2

   

- -

   

2

   

2

 

Short-term investments

 

1,402

   

1,299

   

1,544

   

1,593

   

1,478

 

Accounts receivable, net

 

4,141

   

4,264

   

4,105

   

3,448

   

3,089

 

Inventories

 

5,589

   

5,326

   

5,359

   

4,517

   

4,267

 

Prepaid expenses and other current assets

 

1,156

   

784

   

739

   

1,054

   

1,195

     

Total current assets

 

14,993

   

13,705

   

12,932

   

11,645

   

11,647

 

Property, plant and equipment, net

 

8,556

   

8,740

   

8,600

   

8,758

   

8,430

 

Investments and long-term receivables:

                           
     

Investment in PO joint ventures

 

424

   

418

   

397

   

384

   

373

     

Equity investments

 

1,693

   

1,702

   

1,690

   

1,636

   

1,581

     

Other investments and long-term receivables

 

62

   

58

   

54

   

44

   

38

 

Goodwill

 

605

   

602

   

576

   

566

   

533

 

Intangible assets, net

 

870

   

838

   

799

   

769

   

695

 

Other assets

 

624

   

593

   

583

   

481

   

709

     

Total assets

$

27,827

 

$

26,656

 

$

25,631

 

$

24,283

 

$

24,006

                                         
 

Current maturities of long-term debt

$

3

 

$

3

 

$

2

 

$

4

 

$

4

 

Short-term debt

 

58

   

55

   

56

   

346

   

514

 

Accounts payable

 

3,642

   

3,690

   

3,431

   

3,064

   

2,631

 

Accrued liabilities

 

1,477

   

1,310

   

1,460

   

1,554

   

1,482

 

Deferred income taxes

 

540

   

570

   

685

   

469

   

429

     

Total current liabilities

 

5,720

   

5,628

   

5,634

   

5,437

   

5,060

 

Long-term debt

 

6,766

   

6,766

   

6,753

   

6,757

   

7,749

 

Other liabilities

 

1,838

   

1,851

   

1,795

   

2,122

   

2,038

 

Deferred income taxes

 

1,677

   

1,623

   

1,574

   

1,623

   

1,653

 

Stockholders' equity

 

11,791

   

10,753

   

9,843

   

8,314

   

7,478

 

Non-controlling interests

 

35

   

35

   

32

   

30

   

28

     

Total liabilities and stockholders' equity

$

27,827

 

$

26,656

 

$

25,631

 

$

24,283

 

$

24,006

                               
                                         

 

Amazing Chemistry

Logo - http://photos.prnewswire.com/prnh/20140416/75605

 

SOURCE LyondellBasell Industries

For further information: Media, George Smalley, +1 713-309-7575, or Investors, Douglas J. Pike, +1 713-309-7141


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