Highlights
- Fourth quarter loss of $0.14 per share, excluding unusual items.
- Strong full year 1999 EBITDA of $1.1 billion, a 40% increase from
1998.
- Sale of polyols business to Bayer on track; will result in debt pay
down of more than $2 billion.
HOUSTON, Jan. 27 /PRNewswire/ -- Lyondell Chemical Company (NYSE: LYO) had a loss for the fourth quarter of 1999 of $16 million, or $0.14 per share, excluding previously reported charges and other unusual items.
Including unusual items of $42 million, or $0.36 per share, Lyondell reported a loss of $58 million, or $0.50 per share, for the fourth quarter. This compares with a loss of $17 million, or $0.14 per share, for the third quarter of 1999, and a loss of $27 million, or $0.35 per share, for the fourth quarter of 1998.
"Lyondell benefited in the fourth quarter and the full year from strong demand for our products and excellent manufacturing operations. Our propylene oxide business had all-time record sales volumes in 1999, up 6% from the previous year," said Lyondell President and Chief Executive Officer Dan F. Smith. "However, these gains were significantly outpaced by the increase in raw materials costs resulting from the continued rapid rise in crude oil prices."
For the full year 1999, Lyondell reported a net loss of $115 million, or $1.10 per share, compared with net income of $52 million, or $0.67 per share, in 1998. Revenues for 1999, including Lyondell's share of revenues from its venture companies, increased 57% to $7.5 billion, from $4.8 billion in 1998. The revenue increase is primarily due to the ARCO Chemical acquisition in July 1998 and higher product prices in 1999.
"In many ways, 1999 was a year of significant achievement for Lyondell. EBITDA increased 40%, to $1.1 billion, despite dramatic increases in crude oil prices that created a difficult environment for the entire industry," Smith said. "In addition, we completed a number of major steps to position our company for future earnings growth and shareholder value."
Major accomplishments in 1999 included:
-- The agreement to sell Lyondell's global polyols business, along with
an ownership interest in its propylene oxide (PO) business, to Bayer
for $2.45 billion in cash. Expected to close in the first half of
2000, this transaction will enable the Company to pay down more than
$2 billion in debt, making it immediately accretive to earnings and
cash flow, and also will strengthen Lyondell's global PO business.
-- The successful integration of Equistar Chemicals, LP and Lyondell
operations and processes. This will result in additional cost savings
beginning in 2000.
-- Initiated the rationalization of assets to maximize profitability,
including the previously announced mothballing of certain higher cost
polymer reactors and the sale of Equistar's compounds and concentrates
business.
-- The achievement of $275 million in annual synergies by Equistar, a
year ahead of schedule and well in excess of the original 1999 target
of $200 million.
-- EBITDA (earnings before net interest, taxes, depreciation and
amortization) before unusual charges and extraordinary items was
$1.1 billion, including Lyondell and the Company's proportionate share
of its ventures.
Compared to the third quarter of 1999, the fourth quarter benefited from improved results at Equistar and LYONDELL-CITGO Refining LP (LCR), offset by a decline in operating results in Lyondell's Intermediate Chemicals and Derivatives businesses and higher interest expense. Included in fourth quarter 1999 results were a number of previously reported unusual items, including Lyondell's share of a $96 million charge by Equistar primarily related to asset rationalization. Also included was a $15 million pre-tax, non-cash charge under the LIFO inventory accounting method associated with the permanent reduction of certain inventory in the Intermediate Chemicals and Derivatives business. The actual LIFO charge is lower than the approximate figure previously disclosed primarily due to timing of shipments of certain products. The total after-tax impact of the unusual items to Lyondell was $42 million, or $0.36 per share.
Lyondell Earnings Summary (A)
Millions of dollars except
per share amounts 4Q1999 3Q1999 4Q1998 1999 1998(E)
Net Income (Loss) Before
Unusual Items (B)(C)(D) $ (16) $ (2) $ (21) $ (38) $ 94
Earnings/(Loss) per Share Before
Unusual Items (B)(C)(D) $(0.14) $(0.02) $(0.27) $(0.36) $1.21
Net Income (Loss) As Reported $ (58) $ (17) $ (27) $ (115) $ 52
Earnings per Share
(Loss) As Reported $(0.50) $(0.14) $(0.35) $(1.10) $0.67
EBITDA (Lyondell and
proportionate share
of ventures) (B)(D) $ 278 $ 280 $ 232 $1,082 $ 773
(A) See page 8 for Consolidated Income Statements.
(B) The fourth quarter 1999 excludes after-tax unusual items of
$42 million, or $0.36 per share, which consist of Equistar's
restructuring charge, Lyondell's unfavorable LIFO adjustment and
LCR's charge related to its labor agreement. The 1999 full year
amount excludes these items as well as the extraordinary charge, for a
total charge of $77 million, or $0.74 per share.
(C) The third quarter 1999 excludes an unfavorable adjustment of income
taxes of $11 million, or $0.09 per share, before extraordinary item
and $4 million, or $0.03 per share, related to the extraordinary item
in the third quarter 1999.
(D) The fourth quarter 1998 excludes after-tax unusual charges of $6
million, or $0.08 per share, related to the renegotiated labor
agreement at LCR and formation costs of Equistar. The full year 1998
excludes $42 million, or $0.54 per share, related to the acquisition
of ARCO Chemical Company, the renegotiated labor agreement at LCR and
the formation of Equistar.
(E) Results include the addition of Occidental Chemical operations to
Equistar prospectively from May 15, 1998, and the acquisition of ARCO
Chemical Company by Lyondell prospectively from August 1, 1998.
INTERMEDIATE CHEMICALS AND DERIVATIVES
The Intermediate Chemicals and Derivatives segment includes PO and derivatives, toluene diisocyanate (TDI), styrene monomer and MTBE. EBITDA for the fourth quarter was $165 million, compared to third quarter 1999 EBITDA of $182 million and $155 million for the fourth quarter of 1998. Fourth quarter 1999 EBITDA excludes the non-cash LIFO charge.
Sales volumes for PO and derivatives increased 6% from the third quarter of 1999 and 11% from the fourth quarter of 1998, due to strong economic conditions in the U.S. and Europe and continued recovery in Asian markets. The benefits of increasing sales volumes were more than offset, however, by sharp price increases for propylene, the primary raw material for PO.
Depreciation and amortization for the fourth quarter was $54 million and $32 million, respectively. Net interest expense for the quarter was $165 million, an increase of $21 million from the third quarter. This increase was due primarily to higher interest rates on bank debt and higher amortization expenses related to debt issuance costs.
EQUISTAR CHEMICALS, LP
Equistar's EBITDA for the fourth quarter was $170 million, up 11% from EBITDA of $153 million in the third quarter of 1999. Equistar's fourth quarter EBITDA excludes the $96 million of unusual items primarily associated with the previously reported mothballing of certain polymer facilities. For the fourth quarter of 1999, Equistar had a pre-tax loss of $51 million (including the unusual items) versus pre-tax income of $35 million for the third quarter of 1999 and a pre-tax loss of $51 million for the fourth quarter of 1998.
Equistar's petrochemicals segment had operating income of $173 million and EBITDA of $223 million in the fourth quarter of 1999, compared with operating income of $99 million and EBITDA of $148 million in the third quarter. Compared to the third quarter, Equistar benefited from higher selling prices for ethylene, propylene and other co-products, which more than offset higher raw material costs, resulting in a net increase in margins.
For Equistar's polymers segment, operating income declined to $5 million in the fourth quarter of 1999 compared to $26 million in the third quarter. Fourth quarter EBITDA for polymers was $20 million, compared to $40 million in the third quarter of 1999. Profitability declined as increases in polymer prices did not keep pace with price increases in polymer raw materials, primarily ethylene and propylene.
LYONDELL-CITGO REFINING LP
LCR had EBITDA of $70 million and pre-tax income of $26 million in the fourth quarter of 1999, compared with EBITDA of $58 million and pre-tax income of $21 million in the third quarter of 1999 and EBITDA of $82 million and pre-tax income of $32 million in the fourth quarter a year ago.
LCR's financial results improved from the third quarter of 1999 as a result of a $12 million insurance recovery related to an unplanned coker outage that occurred in the second quarter of 1999 and improved aromatics profitability. This was partially offset by lower processing rates of very heavy crude oil under the Crude Supply Agreement with PDVSA, the national oil company of Venezuela. LCR continues to be adversely affected by the curtailment of deliveries of very heavy crude oil from Venezuela.
CAPITAL EXPENDITURES
Lyondell's capital expenditures for 1999 were $240 million, including the Company's share of capital spending for Equistar, LCR and Lyondell Methanol Company, L.P. This compares to $196 million for 1998. For 2000, Lyondell has established a capital budget of approximately $207 million. The components of the budget are shown below.
CAPITAL EXPENDITURES
Millions of Intermediate Equistar LYONDELL- Lyondell Lyondell
dollars Chemicals & Chemicals(B) CITGO Methanol(B) and
Derivatives Lyondell Refining(B) Lyondell Proportionate
Lyondell has Lyondell has Share of
owns 41% has 75% Equity
100% ownership 58.75% ownership Investments
ownership
1999 Actual $131 $157 $56 $ 16 $240
1998 Actual $ 64(A) $200(A) $61 $ 10 $196
2000 Budget $106 $160 $60 $--- $207
(A) Results include the addition of Occidental Chemical operations to
Equistar prospectively from May 15, 1998, and the acquisition of ARCO
Chemical Company by Lyondell prospectively from August 1, 1998.
(B) Amounts shown for joint ventures are on 100% basis.
OUTLOOK
"Our key priorities for 2000 are unchanged," Smith said. "Number one is to continue to reduce debt to achieve greater financial flexibility. The proceeds from the sale of the polyols business to Bayer will be used to further reduce debt by approximately $2 billion. We will continue to rationalize our business portfolio to achieve our goal of first quartile margin performance. We will also continue to aggressively reduce costs wherever possible.
"We expect continued stable growth for Intermediate Chemicals and Derivatives, as demand growth, aided by the strong recovery in Asia, absorbs new industry PO capacity. If demand growth for our products continues, we expect Equistar to turn in a solid performance with upside potential if crude oil prices weaken. Meanwhile, both Lyondell and Equistar are taking aggressive actions to further reduce costs and increase cash flow."
Sales Revenues
Millions of dollars 4Q1999 3Q1999 4Q1998 Full Year Full Year
1999 1998(A)
Reported Sales Revenues $1,008 $ 976 $ 881 $ 3,693 $1,447
Total sales revenues -
all businesses in which
Lyondell participates(B) $3,570 $3,255 $2,504 $11,795 $7,969
Lyondell's proportionate
share of the sales revenues
of businesses in
which it participates(B) $2,224 $2,058 $1,643 $ 7,503 $4,769
(A) Results include the addition of Occidental Chemical operations to
Equistar prospectively from May 15, 1998, and the acquisition of ARCO
Chemical Company by Lyondell prospectively from August 1, 1998.
(B) Includes revenues from sales to affiliates.
Lyondell Chemical Company, with headquarters in Houston, Texas, is the world's largest producer of propylene oxide (PO); the world's number two supplier of polyols and TDI (toluene diisocyanate); a leading producer of propylene glycol; a leading producer of other PO derivatives such as BDO (butanediol) and PGE (propylene glycol ether); and a producer of styrene monomer and MTBE as co-products of PO production.
Through its 41% interest in Equistar Chemicals, LP, Lyondell also is one of the largest producers of ethylene, propylene and polyethylene in North America and a leading producer of polypropylene, ethylene oxide, ethylene glycol, high value-added specialty polymers and polymeric powder.
Through its 58.75% interest in LYONDELL-CITGO Refining LP, Lyondell is one of the largest and most profitable refiners in the United States, processing very heavy Venezuelan crude oil to produce gasoline, low sulfur diesel and jet fuel.
Lyondell is the third largest methanol producer in the U.S., through its 75% interest in Lyondell Methanol Company, L.P.
The statements in this release relating to matters that are not historical facts are forward-looking statements that are subject to risks and uncertainties, including, but not limited to, future global economic conditions, industry production capacity and operating rates, the supply/demand balance for the Company's products, competitive products and pricing pressures, further increases in raw material costs, changes in governmental regulations and other risks and uncertainties detailed in the Securities and Exchange Commission filings of Lyondell.
LYONDELL CHEMICAL COMPANY
SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
(Millions of dollars)
Lyondell Chemical Lyondell and
Company Joint Ventures Proportionate
(Excluding Equity Equistar LCR LMC Share of Equity
Investments)(A) 100% 100% 100% Investments(B)
Three months ended
December 31, 1999:
Sales and other
operating revenues(C) $1,008 $1,653 $ 877 $ 32 2,224
SG&A and R&D 69 99 19 2 122
EBITDA before
unusual charges 165(D) 170 70 3 278
Depreciation and
amortization 86(E) 77 25 2 131
Net interest
expense 165(E) 48 13 --- 192
Capital expenditures 41 45 13 --- 67
Dividends 27 27
Three months ended
September 30, 1999:
Sales and other
operating revenues(C) $ 976 $1,471 $ 780 $ 28 $2,058
SG&A and R&D 77 64 13 2 112
EBITDA before unusual
charges and
extraordinary item 182 153 58 2 280
Depreciation and
amortization 80(E) 76 26 2 125
Net interest expense 144(E) 42 11 --- 168
Capital expenditures 15 36 11 --- 36
Dividends 27 27
Three months ended
December 31, 1998:
Sales and other
operating revenues(C) $ 881 $1,100 $ 500 $ 23 $1,643
SG&A and R&D 86 62 21 2 125
EBITDA before
unusual charges 155 66 82 2 232
Depreciation and
amortization 73(E) 67 28 2 115
Net interest expense 144(E) 41 11 --- 167
Capital expenditures 36 89 18 6 88
Dividends 17 17
Year ended
December 31, 1999:
EBITDA before unusual
charges and extraordinary
item $ 728(D) $ 603 $ 176 $ 5 $1,082
Net interest expense 589(F) 176 44 --- 687
Capital expenditures 131 157 56 16 240
Dividends 97 97
Year ended
December 31, 1998:
EBITDA before unusual
charges $ 294 $ 564 $ 323 $ 18 $ 773
Net interest expense 262(F) 139 43 --- 351
Capital expenditures 64 200 61 10 196
Dividends 70 70
(A) Consists of the operations of the acquired Intermediate Chemicals and
Derivatives business of ARCO Chemical Company prospectively from
August 1, 1998.
(B) This column reflects a combined total for Lyondell's 100% owned
operations and its pro rata share of each joint venture's operations
and is not a presentation in accordance with generally accepted
accounting principles. Lyondell currently owns a 41% interest in
Equistar Chemicals, LP ("Equistar"), a 58.75% interest in LYONDELL-
CITGO Refining LP ("LCR") and a 75% interest in Lyondell Methanol
Company, L.P. ("LMC").
(C) Includes revenues from sales to affiliates.
(D) Excludes LIFO inventory liquidation charge of $15 million.
(E) "Depreciation and amortization" and "net interest expense" both
include approximately $6 million, $2 million and $13 million of non-
approximately $6 million, $2 million and $13 million of non-cash
amortization of debt issuance costs in the three-month periods ended
December 31, 1999, September 30, 1999 and December 31, 1998,
respectively.
(F) Includes approximately $30 million and $21 million of non-cash
amortization of debt issuance costs for the years ended December 31,
1999 and 1998, respectively.
LYONDELL CHEMICAL COMPANY
SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
For the three months For the twelve months
INCOME STATEMENTS ended December 31 ended December 31
(Millions of dollars,
except per share data) 1999 1998 1999 1998
Sales and other
operating revenues $1,008 $ 881 $3,693 $1,447
Operating costs and
expenses:
Cost of sales 839 681 2,891 1,089
Selling, general and
administrative expenses 54 70 240 126
Research and development 15 16 58 26
Amortization of goodwill
and other intangibles 25 25 100 41
Unusual charges --- --- --- 61
Operating income 75 89 404 104
Income (loss) from
equity investment in
Equistar (11) (10) 52 119
Income from equity
investment in LCR 18 21 23 110
Income from other
equity investments --- --- 1 6
Interest expense, net (165) (144) (589) (262)
Other income (expense),
net (4) 6 5 12
Income (loss) before
income taxes and
extraordinary item (87) (38) (104) 89
Provision for
(benefit from) income
taxes (29) (11) (24) 37
Income (loss) before
extraordinary item (58) (27) (80) 52
Extraordinary loss,
net of income taxes --- --- (35) ---
Net income (loss) $ (58) $ (27) $ (115) $ 52
Basic and diluted
earnings per share:
Income (loss) before
extraordinary item $ (0.50) $ (0.35) $(0.77) $ 0.67
Net income (loss) $ (0.50) $ (0.35) $(1.10) $ 0.67
Weighted average
shares outstanding
(thousands):(A)
Basic 117,589 76,970 104,249 77,669
Diluted 117,589 77,001 104,249 77,699
INTERMEDIATE CHEMICALS AND DERIVATIVES SEGMENT
SELECTED FINANCIAL AND OPERATING INFORMATION
(Millions of dollars)
Sales and other
operating revenues $ 1,008 $ 881 $ 3,693 $ 1,447
Operating income 75 89 404 119
EBITDA before unusual
charges 165(B) 155 728(B) 300
Sales Volumes
(millions)(C)
PO and derivatives
(pounds)(D) 1,196 1,077 4,464 4,159
Co-products:
Styrene monomer
(pounds) 773 819 3,129 2,912
TBA and derivatives
(gallons) 260 245 1,071 995
The three and twelve months ended December 31, 1999 and the three months ended December 31, 1998 include the operating results of Lyondell and its income from equity investments. The twelve months ended December 31, 1998 include five months of operating results for Lyondell and twelve months of Lyondell's income from equity investments.
(A) In May 1999, Lyondell issued 40.25 million shares of common stock in
a public offering.
(B) Excludes LIFO inventory liquidation charge of $15 million.
(C) The volume data reflects the activity of the predecessor business
prior to the acquisition date, as well as the activity subsequent to
the acquisition date.
(D) Includes propylene oxide ("PO"), PO derivatives and isocyanates.
LYONDELL CHEMICAL COMPANY
SELECTED FINANCIAL INFORMATION (UNAUDITED)
(Millions of dollars)
For the twelve months
ended December 31
STATEMENTS OF CASH FLOWS 1999 1998
Net income (loss) $(115) $52
Adjustments to reconcile net
income (loss) to net cash
provided by operating activities:
Depreciation and amortization 330 138
Extraordinary item/unusual charges 35 61
Changes in working capital and
other, net 50 12
Net cash provided by operating
activities 300 263
Purchase of ARCO Chemical Company,
net of cash acquired --- (5,869)
Expenditures for property,
plant and equipment (131) (64)
Contributions and advances
to affiliates (52) (35)
Distributions from affiliates
in excess of earnings 134 435
Deconsolidation of affiliate --- (11)
Other 4 ---
Net cash used in investing
activities (45) (5,544)
Issuance of long-term debt, net 3,293 6,370
Repayments of long-term debt (4,122) (715)
Issuance of common stock 736 ---
Dividends paid (97) (70)
Net decrease in short-term debt --- (100)
Repurchase of common stock --- (59)
Other 8 ---
Net cash (used in) provided
by financing activities (182) 5,426
Effect of exchange rate
changes on cash 1 2
Increase in cash and cash
equivalents $74 $147
The twelve months ended December 31, 1999 include the operating results of
Lyondell and its income from equity investments. The twelve months ended
December 31, 1998 include five months of operating results of Lyondell and
twelve months of its income from equity investments.
LYONDELL CHEMICAL COMPANY
SELECTED FINANCIAL INFORMATION (UNAUDITED)
(Millions of dollars)
December 31
BALANCE SHEET 1999
Cash and cash equivalents $ 307
Accounts receivable, net 583
Inventories 519
Prepaid expenses and other current assets 114
Deferred tax assets 379
Total current assets 1,902
Property, plant and equipment, net 4,291
Investments and long-term receivables:
Investment in Equistar 607
Investment in LCR 52
Investment in LMC 63
Receivable from LCR 219
Other investments and long-term receivables 74
Goodwill, net 1,545
Deferred charges and other assets 761
Total assets $ 9,514
Accounts payable $ 305
Current maturities of long-term debt 225
Other accrued liabilities 508
Total current liabilities 1,038
Long-term debt, less current maturities 6,046
Other liabilities and deferred credits 331
Deferred income taxes 890
Minority interest 202
Stockholders' equity (117,571,024 shares outstanding) 1,007
Total liabilities and stockholders' equity $ 9,514
Investment in Equistar, September 30, 1999 $ 652
Lyondell's share of Equistar net loss (11)
Cash distributions from Equistar (34)
Investment in Equistar, December 31, 1999 $ 607
Investment in LCR, September 30, 1999 $ 14
Lyondell's share of LCR net income 18
Conversion of note receivable from LCR to equity investment 46
Cash distributions from LCR (26)
Investment in LCR, December 31, 1999 $ 52
Investment in LMC, September 30, 1999 $ 63
Lyondell's share of LMC net income ---
Investment in LMC, December 31, 1999 $ 63
LYONDELL CHEMICAL COMPANY
EQUISTAR CHEMICALS, LP
SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
For the three months For the twelve
INCOME STATEMENTS ended Dec. 31 months ended Dec. 31
(Millions of dollars) 1999 1998 1999 1998
Sales and other operating
revenues (A) $1,653 $1,100 $5,436 $4,363
Operating costs and expenses:
Cost of sales 1,451 1,032 4,848 3,773
Selling, general and administrative
expenses 88 52 255 223
Research and development expense 11 10 42 40
Amortization of goodwill and other
intangibles 8 7 33 31
Restructuring and other unusual
charges 96 9 96 14
Operating income (loss) (1) (10) 162 282
Interest expense, net (48) (41) (176) (139)
Other income (expense), net (2) --- 46 ---
Net income (loss) (B) $ (51) $ (51) $ 32 $ 143
SELECTED FINANCIAL AND OPERATING INFORMATION
(Millions of dollars)
Sales and Other Operating Revenues (A)
Petrochemicals segment $1,486 $898 $4,736 $3,463
Polymers segment 559 457 2,024 2,058
Intersegment eliminations (392) (255) (1,324) (1,158)
Total $1,653 $1,100 $5,436 $4,363
Other Operating Expenses (C)
Petrochemicals segment $ 4 $ 5 $ 13 $ 14
Polymers segment 19 20 76 82
Unallocated 83 44 241 198
Total $ 106 $69 $ 330 $ 294
Operating Income (Loss)
Petrochemicals segment $ 173 $ 38 $ 447 $ 319
Polymers segment 5 7 51 177
Unallocated (179) (55) (336) (214)
Total $ (1) $ (10) $ 162 $ 282
EBITDA
Petrochemicals segment $ 223 $ 77 $ 640 $ 471
Polymers segment 20 20 106 242
Unallocated (169) (40) (239) (163)
Total (d) $ 74 $ 57 $ 507 $ 550
EBITDA before unusual charges (D) $ 170 $ 66 $ 603 $ 564
Sales Volumes (millions) (A)
Selected petrochemical products:
Ethylene, propylene and other
olefins (pounds) 4,779 4,655 18,574 16,716
Aromatics (gallons) 97 92 367 271
Polymers products (pounds) 1,584 1,630 6,388 6,488
Equistar was formed on December 1, 1997 with Lyondell having a 57%
ownership interest and Millennium Chemicals Inc. ("Millennium") having a
43% ownership interest. With the addition of Occidental Chemical
Corporation ("Occidental") as a partner on May 15, 1998, Lyondell
currently has a 41% ownership interest and Millennium and Occidental each
have a 29.5% ownership interest.
(A) Includes revenues/volumes from sales to affiliates.
(B) As a partnership, Equistar is not subject to federal income taxes.
(C) Other Operating Expenses includes SG&A, R&D and Amortization of
goodwill and other intangibles.
(D) EBITDA includes gains from asset sales.
LYONDELL CHEMICAL COMPANY
EQUISTAR CHEMICALS, LP
SELECTED FINANCIAL INFORMATION (UNAUDITED)
(Millions of dollars)
Dec. 31 Dec. 31
BALANCE SHEETS 1999 1998
Cash and cash equivalents $ 91 $ 66
Accounts receivable, net 679 487
Inventories 520 549
Prepaid expenses and other current assets 53 25
Total current assets 1,343 1,127
Property, plant and equipment, net 3,926 4,075
Goodwill, net 1,119 1,151
Deferred charges and other assets 331 312
Total assets $6,719 $6,665
Accounts payable $ 495 $ 352
Current maturities of long-term debt 92 150
Other accrued liabilities 200 133
Total current liabilities 787 635
Capital lease obligations --- 205
Long-term debt, less current maturities 2,169 1,865
Other liabilities and deferred credits 101 75
Partners' capital 3,662 3,885
Total liabilities and partners' capital $6,719 $6,665
For the three months For the twelve
ended Dec. 31 months ended Dec. 31
SELECTED CASH FLOW INFORMATION 1999 1998 1999 1998
Depreciation and amortization $ 77 $ 67 $ 299 $ 268
Cash flow from operations 160 354 351 846
Capital expenditures 45 89 157 200
LYONDELL CHEMICAL COMPANY
LYONDELL-CITGO REFINING LP
SELECTED FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
CONDENSED BALANCE SHEETS Dec. 31 Dec. 31
(Millions of dollars) 1999 1998
Total current assets $ 219 $ 197
Property, plant and equipment, net 1,350 1,370
Deferred charges and other assets 60 70
Total assets $1,629 $1,637
Current maturities of long-term debt $ 450 $ ---
Other current liabilities 307 203
Long-term debt, less current maturities 247 717
Other liabilities and deferred credits 69 68
Partners' capital 556 649
Total liabilities and partners' capital $1,629 $1,637
For the three For the twelve
INCOME STATEMENTS months ended months ended
Dec. 31 Dec. 31
(Millions of dollars) 1999 1998 1999 1998
Sales and other operating revenues (A) $ 877 $ 500 $2,571 $2,055
Operating costs and expenses:
Cost of sales 813 425 2,432 1,754
Selling, general and administrative
expenses 19 21 66 78
Unusual charges 6 10 6 10
Operating income 39 44 67 213
Interest expense, net (13) (11) (44) (43)
Benefit from (provision for) state
income taxes --- (1) 1 (1)
Net income (B) $ 26 $ 32 $ 24 $ 169
SELECTED CASH FLOW INFORMATION
(Millions of dollars)
Depreciation and amortization $ 25 $ 28 $ 103 $ 100
Cash flow from operations 89 92 181 169
Capital expenditures 13 18 56 61
EBITDA $ 64 $ 72 $ 170 $ 313
EBITDA before unusual charges $ 70 $ 82 $ 176 $ 323
SELECTED OPERATING INFORMATION
Sales Volumes (including intersegment sales)(A)
Refined products (thousand barrels per day):
Gasoline 137 124 118 121
Diesel and heating oil 78 83 68 79
Jet fuel 20 21 18 17
Aromatics 11 9 10 10
Other refinery products 105 112 104 103
Total refined products volumes 351 349 318 330
Refinery Runs
Crude processing rates (thousand barrels per day):
Crude Supply Agreement - coked 182 207 182 223
Other heavy crude oil - coked 23 53 14 19
Other crude oil 54 14 43 18
Total crude oil 259 274 239 260
(A) Includes revenues/volumes from sales to affiliates.
(B) LCR is not subject to federal income taxes.
SOURCE Lyondell Chemical Company
Web site: http: //www.lyondell.com
CONTACT: media, Jackie Wilson, 713-652-4596, or Marvin Brown, 713-309-2643, or investors, Sami Ahmad, 713-309-7141, all of Lyondell Chemical Company
