LyondellBasell Reports First-Quarter 2013 Results

Apr 26, 2013

ROTTERDAM, Netherlands, April 26, 2013 /PRNewswire/ --

First-Quarter 2013 Highlights

  • Record diluted earnings per share of $1.56; $906 million income from continuing operations
  • First quarter EBITDA of $1,585 million; record Olefins & Polyolefins - Americas results
  • Began construction of La Porte ethylene expansion and methanol plant restart projects
  • Completed significant scheduled maintenance at the Houston refinery; increased the refinery feedstock flexibility to accommodate both Canadian and lighter crudes
  • Achieved investment grade credit rating

LyondellBasell Industries (NYSE: LYB) today announced earnings for the first quarter 2013 of $906 million, or $1.56 diluted earnings per share. First quarter 2013 EBITDA was $1,585 million, a 25 percent increase from the fourth quarter 2012 and a 29 percent increase from the first quarter 2012. Net income in the first quarter 2013 increased by 44 percent from the fourth quarter 2012. The increase was primarily a result of improved operating results across all segments, other than Refining, which had a planned maintenance turnaround.

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

Table 1 - Earnings Summary

     
 

Three Months Ended

 

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

March 31,

2013

December 31,

2012

March 31,

2012

Sales and other operating revenues

$10,669

$11,097

$11,734

Net income(a)

900

623

599

Income from continuing operations

906

645

594

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

     
 

Net income(b)

1.55

1.09

1.04

 

Income from continuing operations

1.56

1.13

1.03

Diluted share count (millions)

578

578

575

EBITDA(c)

1,585

1,265

1,227

         

(a)  Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 11.

(b)  Includes diluted earnings (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.

 

Results also reflect the following charges and benefits:

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

 
     

Three Months Ended

 

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

March 31,

December 31,

March 31,

 

2013

2012

2012

 

Pretax charges (benefits):

       

     Reorganization items

$ - -

$ - -

($5)

 

     Corporate restructurings

- -

53

- -

 

     Impairments

- -

- -

22

 

     Warrants - mark to market

- -

- -

10

 

     Unfavorable contract reserve reversal

- -

(28)

- -

 

Total pretax charges

- -

25

27

 

Benefit from income tax related to these items

- -

(17)

(5)

 

After-tax effect of net charges

$ - -

$8

$22

 

Effect on diluted earnings per share

$ - -

$ - -

($0.04)

 

"The theme for our 2012 annual report was – "Seize the Moment – Securing the Future". We are converting these words to action. Our first quarter results demonstrate our success.  For example, in our Olefins and Polyolefins – Americas segment, we took advantage of strong industry margins, and for the third consecutive quarter, operated our ethylene plant system at or above nameplate capacity - achieving record profitability in this segment," said Jim Gallogly, LyondellBasell Chief Executive Officer.

"In addition to our strong financial and operating results during the quarter, we passed several key milestones which we believe will help in securing our future performance. We received environmental permits and began construction on two key growth projects – the Channelview methanol plant restart and the La Porte olefins expansion. We are targeting to complete the methanol restart this year and the La Porte expansion during 2014.  In addition, we completed a major turnaround at the Houston refinery, implementing modifications that position us to benefit from rapidly developing North American crude oil production. When completed, and assuming 2012 margins, these three projects would represent approximately $775 million of potential annual EBITDA," Gallogly added.

"While the U.S. olefins business set new records during the quarter, the situation in European olefins and polyolefins continued to be difficult. Although our results improved from recent quarters, underlying economic and industry conditions have not. Our Intermediates and Derivatives segment continued to post steady results. At the Houston refinery, major turnaround activities required us to reduce first quarter throughput which negatively impacted the quarter," Gallogly indicated.

 

OUTLOOK

"Overall, the trends of the previous quarters continued into early April. Our Olefins and Polyolefins – Americas and Intermediates and Derivatives segments continued to benefit from the shale gas developments," Gallogly said.

"However, as broadly reported, the global macro-economic outlook continues to be uncertain. Within this environment, our "back-to-basics" strategy will serve us well. Our focus is further sharpened as we proceed into the next chapter of our story - execution of our growth projects and the continued return of value to our shareholders," Gallogly added.

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

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2013

2012

2012

 

Operating income

$821

$693

$519

 

EBITDA

898

777

595

 
           

Three months ended March 31, 2013 versus three months ended December 31, 2012 – EBITDA increased $121 million in the first quarter 2013 versus the fourth quarter 2012. Compared to the prior period, olefins results increased approximately $140 million primarily due to an increase in margins.  Our cost of ethylene production metric declined and the average ethylene price increased 4 cents per pound. Improved ethylene co-product pricing drove the decline in the cost of ethylene production. Combined polyolefin results decreased by approximately $25 million from the fourth quarter 2012 primarily due to lower polypropylene sales volumes and margins. Joint venture equity income declined slightly.

Three months ended March 31, 2013 versus three months ended March 31, 2012 –   EBITDA increased $303 million in the first quarter 2013 versus the first quarter 2012.  Olefins results increased approximately $290 million compared to the prior year period as a result of higher olefins margins and volumes. The higher olefins margins were primarily driven by lower natural gas liquid prices in the first quarter 2013, in particular ethane and propane. Olefins production volumes were higher compared to the first quarter 2012, which was impacted by a planned maintenance turnaround.  Polyethylene results were relatively unchanged. Polypropylene results declined by approximately $25 million due to a 12 percent decline in polypropylene sales volumes in the first quarter 2013 as price volatility negatively impacted customer buying patterns. Joint venture equity income was relatively unchanged.

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

 

March 31,

December 31,

March 31,

Millions of U.S. dollars

2013

2012

2012

Operating income (loss)

$93

($94)

$3

EBITDA

225

27

115

         

Three months ended March 31, 2013 versus three months ended December 31, 2012 – EBITDA increased $198 million in the first quarter 2013 versus the fourth quarter 2012. Excluding the net negative impact of various fourth quarter items such as restructuring and compensation accruals, a feedstock contract renegotiation, and a Wesseling plant turnaround, underlying EBITDA increased approximately $115 million. Exclusive of the Wesseling turnaround impact, olefins results improved approximately $40 million primarily due to olefin margins expansion related to naphtha price volatility. Exclusive of the feedstock contract renegotiation, underlying commodity polyolefin results increased by approximately $30 million, driven by higher margins. Polypropylene compounds and polybutene-1 results increased approximately $20 million from seasonally low fourth quarter results. Equity income from joint ventures increased by $25 million from the fourth quarter 2012.

Three months ended March 31, 2013 versus three months ended March 31, 2012 – EBITDA increased $110 million versus the first quarter 2012. Olefins results increased by approximately $70 million, primarily  as a result of improved margins. Combined commodity polyolefin results increased by approximately $30 million primarily as a result of higher polypropylene margins and volumes in the first quarter 2013 and the absence of charges related to the first quarter 2012 Wesseling polyethylene reactor damage. Polypropylene compounds and polybutene-1 results were relatively unchanged from the prior year period. Equity income from joint ventures increased by $14 million from the first quarter 2012.

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

 
 

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2013 

2012

2012

 

Operating income

$323

$246

$370

 

EBITDA

373

297

417

 
         

Three months ended March 31, 2013 versus three months ended December 31, 2012 – EBITDA increased $76 million versus the fourth quarter 2012. Results for PO and PO derivatives improved by $20 million primarily due to seasonal recovery of volumes. Intermediate chemicals results increased by approximately $25 million due to higher C4 chemical and styrene margins. Oxyfuels results improved due to stronger first quarter 2013 margins. Equity income from joint ventures was relatively unchanged.

Three months ended March 31, 2013 versus three months ended March 31, 2012 – EBITDA decreased $44 million compared to the first quarter 2012. Results for PO and PO derivatives declined primarily due to lower solvents and butanediol sales volumes and margins as new Asian capacity came online in 2013. PO volumes and margins were relatively unchanged. Intermediate chemicals results improved by approximately $30 million mainly due to higher C4 chemicals and styrene margins. Oxyfuels results declined approximately $25 million primarily as a result of lower margins in the 2013 period versus stronger than typical first quarter 2012 margins. Equity income from joint ventures was relatively unchanged.

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

 
 

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2013

2012

2012

 

Operating income (loss)

($17)

$86

$10

 

EBITDA

20

123

48

 
         

Three months ended March 31, 2013 versus three months ended December 31, 2012 – EBITDA decreased $103 million versus the fourth quarter 2012. The Houston refinery operated at 173,000 barrels per day, down 82,000 barrels per day from the prior quarter primarily due to a planned turnaround. The throughput decline negatively impacted the first quarter 2013 by approximately $80 million versus fourth quarter 2012. In addition, the Maya 2-1-1 benchmark crack spread decreased $3.39 per barrel to $20.97 per barrel in the first quarter 2013. The decline in our refinery spread was somewhat smaller relative to the benchmark spread. Results continue to be negatively impacted from depressed values of by-products such as petroleum coke and various natural gas based products.

Three months ended March 31, 2013 versus three months ended March 31, 2012 – EBITDA decreased $28 million versus the first quarter 2012 mainly due to the impact of the first quarter 2013 turnaround. Compared to the first quarter in 2012, a throughput decline of 86,000 barrels per day negatively impacted the current quarter by approximately $85 million, which more than offset an increased crack spread. The Maya 2-1-1 benchmark crack spread increased $0.82 per barrel to $20.97 per barrel from the first quarter 2012.

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

 
   

March 31,

December 31,

March 31,

 

Millions of U.S. dollars

2013

2012

2012

 

Operating income

$50

$23

$38

 

EBITDA

66

42

56

 
           

Three months ended March 31, 2013 versus three months ended December 31, 2012 – EBITDA increased by $24 million. The fourth quarter 2012 included $18 million in restructuring charges.

Three months ended March 31, 2013 versus three months ended March 31, 2012 – EBITDA increased by $10 million driven by higher licensing revenues.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology related expenditures, were $391 million in the first quarter 2013. Our cash balance was $2.9 billion at March 31, 2013.

CONFERENCE CALL

LyondellBasell will host a conference call April 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 800-369-1609.  For international numbers, please go to the company website, www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country.  The pass code for all numbers is 4807902.

A replay of the call will be available from 2 p.m. ET April 26 until May 26 at 11 p.m. ET.  The replay dial-in numbers are 800-469-5439 (U.S.) and +1 203-369-3805 (international). The pass code for each is 3102.

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

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 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 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 provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

 

Before the first quarter of 2013, we reported EBITDA  including certain adjustments. The EBITDA previously reported was calculated as net income before net interest expense, income taxes, depreciation and amortization, reorganization items, income from equity investments, income (loss) attributable to non-controlling interests, net income (loss) from discontinued operations, plus joint venture dividends, as adjusted for other items management does not believe are indicative of our underlying results of operations such as impairment charges, asset retirement obligations and the effect of mark-to-market accounting on our warrants. The specific items for which EBITDA was adjusted in each prior reporting period were disclosed in the reconciliation of non-GAAP financial measures table included in each reporting period. Beginning March 31, 2013, we calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization.  Reconciliations of our current calculation of EBITDA for periods prior to March 31, 2013 to the previously presented measures are included under "EBITDA Reconciliations" on the Investor Relations section of our website at www.lyondellbasell.com. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternatives 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.

 

 

 

Table 8 - Reconciliation of Segment Information to Consolidated Financial Information

                                           
         

2012 

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

 

Sales and other operating revenues:

                                 
   

Olefins & Polyolefins - Americas

$

3,349

 

$

3,283

 

$

3,217

 

$

3,085

 

$

12,934

 

$

3,244

   

Olefins & Polyolefins - Europe, Asia, International

 

3,898

   

3,575

   

3,448

   

3,600

   

14,521

   

3,800

   

Intermediates & Derivatives

 

2,485

   

2,285

   

2,637

   

2,251

   

9,658

   

2,282

   

Refining

 

3,203

   

3,496

   

3,272

   

3,320

   

13,291

   

2,468

   

Technology

 

119

   

115

   

124

   

140

   

498

   

134

   

Other

 

(1,320)

   

(1,506)

   

(1,425)

   

(1,299)

   

(5,550)

   

(1,259)

     

Continuing Operations

$

11,734

 

$

11,248

 

$

11,273

 

$

11,097

 

$

45,352

 

$

10,669

 

Operating income (loss):

                                 
   

Olefins & Polyolefins - Americas

$

519

 

$

700

 

$

738

 

$

693

 

$

2,650

 

$

821

   

Olefins & Polyolefins - Europe, Asia, International

 

3

   

203

   

15

   

(94)

   

127

   

93

   

Intermediates & Derivatives

 

370

   

390

   

424

   

246

   

1,430

   

323

   

Refining

 

10

   

124

   

114

   

86

   

334

   

(17)

   

Technology

 

38

   

30

   

31

   

23

   

122

   

50

   

Other

 

- -

   

2

   

6

   

5

   

13

   

(3)

     

Continuing Operations

$

940

 

$

1,449

 

$

1,328

 

$

959

 

$

4,676

 

$

1,267

 

Depreciation and amortization:

                                 
   

Olefins & Polyolefins - Americas

$

65

 

$

71

 

$

69

 

$

76

 

$

281

 

$

75

   

Olefins & Polyolefins - Europe, Asia, International

 

69

   

69

   

63

   

84

   

285

   

77

   

Intermediates & Derivatives

 

47

   

48

   

49

   

50

   

194

   

48

   

Refining

 

38

   

37

   

36

   

37

   

148

   

36

   

Technology

 

18

   

19

   

18

   

18

   

73

   

17

   

Other

 

- -

   

- -

   

1

   

1

   

2

   

- -

     

Continuing Operations

$

237

 

$

244

 

$

236

 

$

266

 

$

983

 

$

253

 

EBITDA: (a)

                                 
   

Olefins & Polyolefins - Americas

$

595

 

$

781

 

$

814

 

$

778

 

$

2,968

 

$

898

   

Olefins & Polyolefins - Europe, Asia, International

 

115

   

305

   

102

   

26

   

548

   

225

   

Intermediates & Derivatives

 

417

   

432

   

475

   

297

   

1,621

   

373

   

Refining

 

48

   

160

   

150

   

123

   

481

   

20

   

Technology

 

56

   

50

   

49

   

42

   

197

   

66

   

Other

 

(4)

   

(1)

   

(1)

   

(1)

   

(7)

   

3

     

Continuing Operations

$

1,227

 

$

1,727

 

$

1,589

 

$

1,265

 

$

5,808

 

$

1,585

 

Capital, turnarounds and IT deferred spending:

                                 
   

Olefins & Polyolefins - Americas

$

102

 

$

135

 

$

126

 

$

105

 

$

468

 

$

122

   

Olefins & Polyolefins - Europe, Asia, International

 

60

   

39

   

60

   

95

   

254

   

63

   

Intermediates & Derivatives

 

18

   

24

   

44

   

73

   

159

   

106

   

Refining

 

38

   

27

   

24

   

47

   

136

   

93

   

Technology

 

9

   

8

   

12

   

14

   

43

   

7

   

Other

 

2

   

3

   

1

   

(1)

   

5

   

- -

     

Total

 

229

   

236

   

267

   

333

   

1,065

   

391

   

Deferred charges included above

 

(1)

   

(3)

   

(1)

   

- -

   

(5)

   

- -

     

Continuing Operations

$

228

 

$

233

 

$

266

 

$

333

 

$

1,060

 

$

391

                                           
                                           

(a) See Table 9 for EBITDA calculation.

 

 

Table 9 - EBITDA Calculation

                                           
         

2012 

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                     
 

Net income attributable to the Company shareholders

$

600

 

$

770

 

$

846

 

$

632

 

$

2,848

 

$

901

 

Net loss attributable to non-controlling interests

 

(1)

   

(2)

   

(2)

   

(9)

   

(14)

   

(1)

 

(Income) loss from discontinued operations, net of tax

 

(5)

   

- -

   

7

   

22

   

24

   

6

 

Income from continuing operations

 

594

   

768

   

851

   

645

   

2,858

   

906

   

Provision for income taxes

 

301

   

306

   

435

   

285

   

1,327

   

357

   

Depreciation and amortization

 

237

   

244

   

236

   

266

   

983

   

253

   

Interest expense, net

 

95

   

409

   

67

   

69

   

640

   

69

 

EBITDA

$

1,227

 

$

1,727

 

$

1,589

 

$

1,265

 

$

5,808

 

$

1,585

                                           
                                           

 

 

Table 10 - Selected Segment Operating Information

                                   
             

2012 

 

2013

             

Q1

 

Q2

 

Q3

 

Q4

 

YTD

 

Q1

 

Olefins and Polyolefins - Americas

                         
   

Volumes (million pounds)

                         
     

Ethylene produced

   

1,988

 

2,134

 

2,401

 

2,449

 

8,972

 

2,337

     

Propylene produced

   

533

 

615

 

633

 

582

 

2,363

 

624

     

Polyethylene sold

   

1,448

 

1,316

 

1,434

 

1,441

 

5,639

 

1,398

     

Polypropylene sold

   

735

 

719

 

740

 

695

 

2,889

 

648

   

Benchmark Market Prices

                         
     

West Texas Intermediate crude oil (USD per barrel)

   

103.0

 

93.4

 

92.2

 

88.2

 

94.1

 

94.4

     

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

   

119.9

 

108.2

 

109.4

 

109.5

 

111.7

 

113.9

     

Natural gas (USD per million BTUs)

   

2.7

 

2.3

 

2.9

 

3.5

 

2.9

 

3.5

     

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

   

28.5

 

18.4

 

19.7

 

18.6

 

21.2

 

13.8

     

U.S. ethylene (cents/pound)

   

54.9

 

46.9

 

45.4

 

45.7

 

48.3

 

48.0

     

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

   

67.0

 

63.0

 

59.3

 

59.7

 

62.3

 

66.7

     

U.S. propylene (cents/pound)

   

67.2

 

64.2

 

49.8

 

54.5

 

58.9

 

73.5

     

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

   

81.2

 

76.7

 

63.8

 

68.5

 

72.5

 

88.0

                                   
 

Olefins and Polyolefins - Europe, Asia, International

                         
   

Volumes (million pounds)

                         
     

Ethylene produced

   

947

 

930

 

802

 

833

 

3,512

 

912

     

Propylene produced

   

577

 

562

 

493

 

502

 

2,134

 

577

     

Polyethylene sold

   

1,316

 

1,137

 

1,253

 

1,257

 

4,963

 

1,216

     

Polypropylene sold

   

1,541

 

1,337

 

1,633

 

1,574

 

6,085

 

1,584

   

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

     

Western Europe ethylene

   

55.1

 

58.6

 

53.1

 

58.1

 

56.2

 

58.6

     

Western Europe polyethylene [high density]

   

58.6

 

60.9

 

57.2

 

61.0

 

59.4

 

61.2

     

Western Europe propylene

   

50.1

 

54.1

 

47.6

 

50.8

 

50.7

 

50.6

     

Western Europe polypropylene [homopolymer]

   

57.9

 

60.4

 

56.1

 

58.7

 

58.3

 

59.1

                                 
 

Intermediates and Derivatives

                         
   

Volumes (million pounds)

                         
     

Propylene oxide and derivatives

   

774

 

743

 

762

 

663

 

2,942

 

683

     

Ethylene oxide and derivatives

   

312

 

275

 

311

 

260

 

1,158

 

260

     

Styrene monomer

   

704

 

678

 

798

 

794

 

2,974

 

655

     

Acetyls

   

489

 

444

 

499

 

404

 

1,836

 

432

     

TBA Intermediates

   

462

 

448

 

441

 

399

 

1,750

 

439

   

Volumes (million gallons)

                         
     

MTBE/ETBE

   

205

 

189

 

256

 

199

 

849

 

187

   

Benchmark Market Margins  (cents per gallon)

                         
     

MTBE - Northwest Europe

   

125.1

 

122.0

 

149.9

 

76.3

 

118.2

 

104.9

                               
 

Refining

                         
   

Volumes (thousands of barrels per day)

                         
     

Heavy crude oil processing rate

   

259

 

267

 

240

 

255

 

255

 

173

   

Benchmark Market Margins

                         
     

Light crude oil - 2-1-1

   

9.34

 

14.04

 

14.71

 

7.91

 

11.50

 

9.80

     

Light crude oil - Maya differential

   

10.81

 

9.12

 

11.94

 

16.45

 

12.05

 

11.17

                                 
                                   

Source:  LYB and third party consultants

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

                                   

 

 

Table 11 - Unaudited Income Statement Information

                                           
         

2012

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                     
 

Sales and other operating revenues

$

11,734

 

$

11,248

 

$

11,273

 

$

11,097

 

$

45,352

 

$

10,669

 

Cost of sales

 

10,532

   

9,561

   

9,670

   

9,832

   

39,595

   

9,153

 

Selling, general and administrative expenses

 

223

   

201

   

236

   

249

   

909

   

213

 

Research and development expenses

 

39

   

37

   

39

   

57

   

172

   

36

   

Operating income

 

940

   

1,449

   

1,328

   

959

   

4,676

   

1,267

 

Income from equity investments

 

46

   

27

   

32

   

38

   

143

   

59

 

Interest expense, net

 

(95)

   

(409)

   

(67)

   

(69)

   

(640)

   

(69)

 

Other income (expense), net

 

(1)

   

8

   

(7)

   

2

   

2

   

6

   

Income before income taxes and reorganization items

 

890

   

1,075

   

1,286

   

930

   

4,181

   

1,263

 

Reorganization items

 

5

   

(1)

   

- -

   

- -

   

4

   

- -

   

Income before taxes

 

895

   

1,074

   

1,286

   

930

   

4,185

   

1,263

 

Provision for income taxes

 

301

   

306

   

435

   

285

   

1,327

   

357

   

Income from continuing operations

 

594

   

768

   

851

   

645

   

2,858

   

906

 

Income (loss) from discontinued operations, net of tax

 

5

   

- -

   

(7)

   

(22)

   

(24)

   

(6)

   

Net income

 

599

   

768

   

844

   

623

   

2,834

   

900

 

Net loss attributable to non-controlling interests

 

1

   

2

   

2

   

9

   

14

   

1

   

Net income attributable to the Company shareholders

$

600

 

$

770

 

$

846

 

$

632

 

$

2,848

 

$

901

                                           
                                           

 

 

Table 12 - Unaudited Cash Flow Information

                                           
         

2012 

 

2013

 

(Millions of U.S. dollars)

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Q1

                                           
 

Net cash provided by operating activities

$

913

 

$

504

 

$

2,042

 

$

1,328

 

$

4,787

 

$

799

                                           
 

Net cash used in investing activities

 

(185)

   

(245)

   

(266)

   

(317)

   

(1,013)

   

(408)

                                       
 

Net cash provided by (used in) financing activities

 

(140)

   

55

   

(234)

   

(1,826)

   

(2,145)

   

(234)

                                           
                                           
                                           

 

Table 13 - Unaudited Balance Sheet Information

                                         
             

March 31,

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

(Millions of U.S. dollars)

2012

 

2012

 

2012

 

2012

 

2013

                                         
 

Cash and cash equivalents

$

1,670

 

$

1,950

 

$

3,527

 

$

2,732

 

$

2,879

 

Restricted cash

 

9

   

14

   

19

   

5

   

6

 

Accounts receivable, net

 

4,209

   

3,888

   

4,083

   

3,904

   

3,878

 

Inventories

 

5,208

   

5,759

   

5,234

   

5,075

   

5,270

 

Prepaid expenses and other current assets

 

1,002

   

755

   

532

   

570

   

622

     

Total current assets

 

12,098

   

12,366

   

13,395

   

12,286

   

12,655

 

Property, plant and equipment, net

 

7,426

   

7,237

   

7,412

   

7,696

   

7,779

 

Investments and long-term receivables:

                           
     

Investment in PO joint ventures

 

415

   

411

   

405

   

397

   

401

     

Equity investments

 

1,605

   

1,521

   

1,581

   

1,583

   

1,607

     

Other investments and long-term receivables

 

76

   

70

   

361

   

383

   

421

 

Goodwill

 

595

   

576

   

585

   

591

   

582

 

Intangible assets, net

 

1,149

   

1,103

   

1,073

   

1,038

   

999

 

Other assets, net

 

245

   

261

   

292

   

246

   

233

     

Total assets

$

23,609

 

$

23,545

 

$

25,104

 

$

24,220

 

$

24,677

                                         
 

Current maturities of long-term debt

$

- -

 

$

- -

 

$

- -

 

$

1

 

$

1

 

Short-term debt

 

42

   

48

   

47

   

95

   

115

 

Accounts payable

 

3,545

   

3,004

   

3,297

   

3,285

   

3,217

 

Accrued liabilities

 

1,049

   

915

   

1,177

   

1,157

   

1,217

 

Deferred income taxes

 

310

   

277

   

304

   

558

   

557

     

Total current liabilities

 

4,946

   

4,244

   

4,825

   

5,096

   

5,107

 

Long-term debt

 

3,984

   

4,305

   

4,305

   

4,304

   

4,307

 

Other liabilities

 

2,281

   

2,208

   

2,153

   

2,327

   

2,306

 

Deferred income taxes

 

1,035

   

1,245

   

1,460

   

1,314

   

1,277

 

Stockholders' equity

 

11,310

   

11,492

   

12,312

   

11,139

   

11,641

 

Non-controlling interests

 

53

   

51

   

49

   

40

   

39

     

Total liabilities and stockholders' equity

$

23,609

 

$

23,545

 

$

25,104

 

$

24,220

 

$

24,677

                               
                                         

SOURCE LyondellBasell Industries


email Email Page   print Print