LyondellBasell Reports Third-Quarter 2013 Results

PR Newswire

HOUSTON and LONDON, Oct. 29, 2013 /PRNewswire/ --

Third-Quarter 2013 Highlights

  • Diluted earnings per share of $1.51; $854 million income from continuing operations
  • EBITDA of $1,531 million
  • Solid earnings and cash flow continued, supported by reliable operations and favorable crude oil and natural gas environment
  • Completed scheduled maintenance turnaround at Clinton ethylene and polyethylene facility
  • 13.5 million shares repurchased during the quarter

LyondellBasell Industries (LYB) today announced earnings from continuing operations for the third quarter 2013 of $1.51 diluted earnings per share or $854 million. Third quarter 2013 EBITDA was $1,531 million.  

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


Table 1 - Earnings Summary


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

Three Months Ended

Nine Months Ended

September 30,


September 30,

2013

June 30,

2013

September 30,

2012


2013

2012


Sales and other operating revenues

$11,152

$11,103

$11,273

$32,924

$34,255


Net income(a)

851

927

844

2,678

2,211


Income from continuing operations

854

923

851

2,683

2,213


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








Net income(b)

1.50

1.61

1.46

4.66

3.83



Income from continuing operations

1.51

1.60

1.47

4.67

3.83


Diluted share count (millions)

567

578

577

575

577


EBITDA(c)(d)

1,531

1,652

1,589

4,768

4,543



























(a)

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

(b)

Includes diluted loss per share attributable to discontinued operations.

(c)

See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to income from continuing operations.

(d)

Includes a $71 million lower of cost or market inventory valuation adjustment in the third quarter 2012 which is a reversal of a $71 million charge in the second quarter of 2012.



Results also reflect the following charges and benefits:

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

 

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

Three Months Ended

Nine Months Ended

September 30,

2013

June 30,

2013

September 30,

2012

September 30,

2013

2012

Pretax charges (benefits):







Charges and premiums related to repayment of debt

$ - -

$ - -

$ - -

$ - -

$329


Reorganization items

- -

- -

- -

- -

(5)


Impairments

- -

- -

- -

- -

22


Warrants - mark to market

- -

- -

- -

- -

10


Insurance settlement

- -

- -

- -

- -

(100)


Legal recovery

- -

- -

(24)

- -

(24)


Lower of cost or market inventory adjustment

- -

- -

(71)

- -

- -

Total pretax charges (benefits)

- -

- -

(95)

- -

232

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

- -

- -

35

- -

(79)

After-tax effect of net charges (credits)

$ - -

$ - -

($60)

$ - -

$153

Effect on diluted earnings per share

$0

$0

$0.11

$0

($0.25)

"We achieved solid third quarter results, with earnings of $1.51 per share and EBITDA of $1.53 billion," said CEO Jim Gallogly.  "This performance is sequentially down from the prior quarter due to scheduled maintenance at a U.S. olefins and polyolefins site and fewer market-related opportunities in our European olefins and polyolefins business. Refining results again proved difficult, pressured by an oversupplied gasoline market, spending for RIN's and plant maintenance."  

"During the quarter, we advanced our capital deployment program, purchasing shares and declaring dividends totaling $1.3 billion. Since authorization of the share repurchase program in May 2013 and through the close of the third quarter, approximately three percent of our outstanding shares have been repurchased," Gallogly said.

"Overall, we continued a pattern of steady results seen in recent quarters. Underlying this performance were safe, reliable operations coupled with the North American natural gas advantage. We are taking steps to further capitalize on this advantage. We are making significant progress on our expansion projects which will come online over the next two years.  First up will be the fourth-quarter completion of the methanol restart project followed by our La Porte ethylene debottleneck expansion mid next year. We expect to see our growth projects completed significantly ahead of our competition and add to our strong earnings profile," Gallogly said.

OUTLOOK

"The fundamentals that have supported our results remained intact during October. However, we have historically seen margin compression in products such as oxyfuels in winter months and slower polyolefin sales around the holiday season," Gallogly said. 

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell operates in five business segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia and International (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

Nine Months Ended


Millions of U.S. dollars

September 30,

2013

June 30,

2013

September 30,

2012

September 30,


2013

2012


Operating income

$759

$872

$738

$2,452

$1,957


EBITDA

841

951

814

2,690

2,190
















Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA decreased $110 million versus the second quarter 2013. Compared to the prior period, olefins results decreased primarily due to a scheduled turnaround at Clinton, Iowa, a 1 cent per pound decline in ethylene contract price and higher raw material costs driven by higher propane, butane and naphtha prices in the third quarter. The Clinton turnaround impacted the quarter results by approximately $65 million. Combined polyolefin results increased from the second quarter 2013. Results benefitted from an approximately 2 cent per pound higher average polyethylene price and a 5 percent increase in polypropylene sales volumes. Joint venture equity income was relatively unchanged.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA increased $27 million in the third quarter 2013 versus the third quarter 2012. Excluding the favorable impact of a $71 million lower of cost or market adjustment in the third quarter 2012, EBITDA increased $98 million, primarily due to higher polyethylene results. Olefins results decreased approximately $45 million compared to the prior year period partially due to the scheduled Clinton turnaround. The third quarter 2013 results benefitted from increased ethane cracking at a lower cost. Polyethylene results improved as a 9 cent per pound higher price more than offset a 4 percent volume decline. Polypropylene results were relatively unchanged. 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

Nine Months Ended


Millions of U.S. dollars

September 30,

2013

June 30,

2013

September 30,

2012

September 30,


2013

2012


Operating income

$78

$189

$15

$360

$221


EBITDA

204

295

102

724

522









Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA decreased $91 million versus the second quarter 2013. Olefin results decreased by approximately $75 million primarily due to a decline in olefin margins driven by higher feedstock costs and lower co-product values. Improved polyethylene margins offset a 10 percent decline in overall polyolefin sales volumes. Polypropylene compounds and polybutene-1 results decreased by approximately $15 million primarily due to lower margins related to raw material price volatility and a 5 percent decline in sales volumes. Equity income from joint ventures increased by $17 million from the second quarter 2013.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA increased $102 million versus the third quarter 2012. Olefin results improved by approximately $70 million, a result of both higher margins and volumes. The higher olefin margins were driven by higher ethylene prices in the third quarter of 2013 versus the same period in 2012. Volumes were lower in the 2012 period as a result of an olefin turnaround at Wesseling, Germany.  Combined polyolefin results increased by approximately $20 million primarily as a result of improved margins. Polypropylene compounds and polybutene-1 results decreased by approximately $10 million from the prior year period as a result of lower margins related to raw material pricing lag. Equity income from joint ventures increased by $25 million from the third 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

Nine Months Ended



September 30,

June 30,

September 30,

September 30,


Millions of U.S. dollars

2013

2013

2012

2013

2012


Operating income

$371

$285

$424

$979

$1,184


EBITDA

427

338

475

1,138

1,324









Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA increased $89 million versus the second quarter 2013. Results for PO and PO derivatives increased by approximately $20 million following the completion of second quarter turnarounds. Competitive pressure continued to impact butanediol and solvents margins due to oversupply in Asia. Intermediate chemicals results increased by approximately $65 million driven primarily by higher styrene margins and higher sales volumes following second quarter turnarounds. Oxyfuels results improved by approximately $15 million due to higher margins and volumes. Equity income from joint ventures was relatively unchanged.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA decreased $48 million compared to the third quarter 2012. Results for PO and PO derivatives declined primarily due to weaker butanediol and solvents market conditions. Intermediate chemicals results increased as a result of higher styrene, acetyl and ethylene glycol margins. Oxyfuels results declined by approximately $60 million due to lower margins and volumes, which were stronger than typical in the third quarter of 2012. Equity income from joint ventures increased by $3 million from the third quarter 2012.

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


Table 6 - Refining Financial Overview






Millions of U.S. dollars

Three Months Ended

Nine Months Ended


September 30,

June 30,

September 30,

September 30,


2013

2013

2012

2013

2012


Operating income (loss)

($37)

($16)

$114

($70)

$248


EBITDA

8

20

150

48

358









Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA, including benefits from property tax assessments and legal settlements of $15 million, declined $12 million versus the second quarter 2013.  The Houston refinery operated at 250,000 barrels per day, down 15,000 barrels per day from the prior quarter due to maintenance work on an operating unit. The Maya 2-1-1 industry benchmark crack spread increased by $1.64 per barrel, averaging $23.22 per barrel. The refinery spread did not increase as the timing of crude purchases coupled with benchmark crude oil price volatility resulted in higher costs during the quarter. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards decreased by $12 million versus the second quarter 2013.

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA decreased $142 million versus the third quarter 2012. Excluding the benefit of legal restitutions in both periods and the resolution of property tax assessments in third quarter 2013, EBITDA decreased by $133 million. The 250,000 barrels per day operating rate in the current quarter represents an increase of 10,000 barrels per day from the prior year period. Compared to the third quarter 2012, the decline in Maya 2-1-1 benchmark spread of $5.54 per barrel and higher natural gas costs negatively impacted results by approximately $110 million. The cost of RINs increased by $28 million compared to the same quarter last year.

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

Nine Months Ended




September 30,

June 30,

September 30,

September 30,


Millions of U.S. dollars

2013

2013

2012

2013

2012


Operating income

$35

$39

$31

$124

$99


EBITDA

52

59

49

177

155










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

Three months ended September 30, 2013 versus three months ended September 30, 2012 – EBITDA increased by $3 million as higher catalyst sales and lower research and development costs more than offset lower licensing revenues versus the third quarter 2012.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $423 million in the third quarter 2013. The cash balance was $4.4 billion at Sept. 30, 2013. We repurchased 13.5 million ordinary shares during the third quarter 2013. Dividends declared in the quarter totaled $280 million. In July, the company issued long-term bonds in an aggregate principal amount of $1.5 billion with an average interest rate of 4.6 percent.

CONFERENCE CALL

LyondellBasell will host a conference call Oct. 29 at 11 a.m. ET.  Participants on the call will include Chief Executive Officer Jim Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike. 

The toll-free dial-in number in the U.S. is 877-950-3594. A complete listing of toll-free numbers by country is available at www.lyondell.com/teleconference for international callers. The pass code for all numbers is 1231245.

A replay of the call will be available from 2 p.m. ET Oct. 29 until Nov. 29 at 11 p.m. ET.  The replay dial-in numbers are 888-667-5779 (U.S.) and +1 402-220-6423 (international). The pass code for each is 5421.

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

ABOUT LYONDELLBASELL

LyondellBasell (LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 58 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. 

FORWARD-LOOKING STATEMENTS

The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt.  Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2012, which can be found at www.lyondellbasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

NON-GAAP MEASURES

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.  We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

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

Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release.

OTHER FINANCIAL MEASURE PRESENTATION NOTES

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



Media Contact:

David A. Harpole +1 713-309-4125

Investor Contact:

Douglas J. Pike +1 713-309-7141



 

Table 8 - Reconciliation of Segment Information to Consolidated Financial Information





































2012


2013


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD


Sales and other operating revenues:





























Olefins & Polyolefins - Americas

$

3,349


$

3,283


$

3,217


$

3,085


$

12,934


$

3,244


$

3,251


$

3,315


$

9,810



Olefins & Polyolefins - Europe, Asia, International


3,898



3,575



3,448



3,600



14,521



3,800



3,708



3,594



11,102



Intermediates & Derivatives


2,485



2,285



2,637



2,251



9,658



2,282



2,217



2,452



6,951



Refining


3,203



3,496



3,272



3,320



13,291



2,468



3,077



3,177



8,722



Technology


119



115



124



140



498



134



132



124



390



Other


(1,320)



(1,506)



(1,425)



(1,299)



(5,550)



(1,259)



(1,282)



(1,510)



(4,051)




Continuing Operations

$

11,734


$

11,248


$

11,273


$

11,097


$

45,352


$

10,669


$

11,103


$

11,152


$

32,924


Operating income (loss):





























Olefins & Polyolefins - Americas

$

519


$

700


$

738


$

693


$

2,650


$

821


$

872


$

759


$

2,452



Olefins & Polyolefins - Europe, Asia, International


3



203



15



(94)



127



93



189



78



360



Intermediates & Derivatives


370



390



424



246



1,430



323



285



371



979



Refining


10



124



114



86



334



(17)



(16)



(37)



(70)



Technology


38



30



31



23



122



50



39



35



124



Other


- -



2



6



5



13



(3)



(5)



1



(7)




Continuing Operations

$

940


$

1,449


$

1,328


$

959


$

4,676


$

1,267


$

1,364


$

1,207


$

3,838


Depreciation and amortization:





























Olefins & Polyolefins - Americas

$

65


$

71


$

69


$

76


$

281


$

75


$

69


$

73


$

217



Olefins & Polyolefins - Europe, Asia, International


69



69



63



84



285



77



76



78



231



Intermediates & Derivatives


47



48



49



50



194



48



50



50



148



Refining


38



37



36



37



148



36



37



45



118



Technology


18



19



18



18



73



17



20



16



53



Other


- -



- -



1



1



2



- -



2



- -



2




Continuing Operations

$

237


$

244


$

236


$

266


$

983


$

253


$

254


$

262


$

769


EBITDA: (a)





























Olefins & Polyolefins - Americas

$

595


$

781


$

814


$

778


$

2,968


$

898


$

951


$

841


$

2,690



Olefins & Polyolefins - Europe, Asia, International


115



305



102



26



548



225



295



204



724



Intermediates & Derivatives


417



432



475



297



1,621



373



338



427



1,138



Refining


48



160



150



123



481



20



20



8



48



Technology


56



50



49



42



197



66



59



52



177



Other


(4)



(1)



(1)



(1)



(7)



3



(11)



(1)



(9)




Continuing Operations

$

1,227


$

1,727


$

1,589


$

1,265


$

5,808


$

1,585


$

1,652


$

1,531


$

4,768


Capital, turnarounds and IT deferred spending:





























Olefins & Polyolefins - Americas

$

102


$

135


$

126


$

105


$

468


$

122


$

122


$

218


$

462



Olefins & Polyolefins - Europe, Asia, International


60



39



60



95



254



63



46



44



153



Intermediates & Derivatives


18



24



44



73



159



106



141



119



366



Refining


38



27



24



47



136



93



67



36



196



Technology


9



8



12



14



43



7



6



7



20



Other


2



3



1



(1)



5



- -



5



(1)



4




Total 


229



236



267



333



1,065



391



387



423



1,201



Deferred charges included above


(1)



(3)



(1)



- -



(5)



- -



 

- -



- -



- -




Continuing Operations

$

228


$

233


$

266


$

333


$

1,060


$

391


$

387


$

423


$

1,201































































(a) See Table 9 for EBITDA calculation. 



Table 9 - EBITDA Calculation





































2012


2013


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD






























Net income attributable to the Company shareholders

$

600


$

770


$

846


$

632


$

2,848


$

901


$

929


$

853


$

2,683


Net income (loss) attributable to non-controlling interests


(1)



(2)



(2)



(9)



(14)



(1)



(2)



(2)



(5)


(Income) loss from discontinued operations, net of tax


(5)



- -



7



22



24



6



(4)



3



5


Income from continuing operations


594



768



851



645



2,858



906



923



854



2,683



Provision for income taxes


301



306



435



285



1,327



357



410



339



1,106



Depreciation and amortization


237



244



236



266



983



253



254



262



769



Interest expense, net


95



409



67



69



640



69



65



76



210


EBITDA

$

1,227


$

1,727


$

1,589


$

1,265


$

5,808


$

1,585


$

1,652


$

1,531


$

4,768





























































































































Table 10 - Selected Segment Operating Information






























2012


2013







Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD


Olefins and Polyolefins - Americas





















Volumes (million pounds)






















Ethylene produced


1,988


2,134


2,401


2,449


8,972


2,337


2,412


2,111


6,860




Propylene produced


533


615


633


582


2,363


624


529


652


1,805




Polyethylene sold


1,371


1,327


1,430


1,438


5,566


1,396


1,389


1,378


4,163




Polypropylene sold


649


634


639


576


2,498


565


637


669


1,871



Benchmark Market Prices






















West Texas Intermediate crude oil (USD per barrel)


103.0


93.4


92.2


88.2


94.1


94.4


94.2


105.8


98.2




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


119.9


108.2


109.4


109.5


111.7


113.9


104.6


109.9


109.4




Natural gas (USD per million BTUs)


2.7


2.3


2.9


3.5


2.9


3.5


4.2


3.7


3.8




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


28.5


18.4


19.7


18.6


21.2


13.8


15.7


16.6


15.4




U.S. ethylene (cents/pound)


54.9


46.9


45.4


45.7


48.3


48.0


46.3


45.8


46.7




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


67.0


63.0


59.3


59.7


62.3


66.7


68.7


71.7


69.0




U.S. propylene (cents/pound)


68.7


65.7


51.3


56.0


60.4


75.0


63.3


68.3


68.9




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


81.2


76.7


63.8


68.5


72.5


88.0


76.2


82.3


82.2

























Olefins and Polyolefins - Europe, Asia, International





















Volumes (million pounds)






















Ethylene produced


945


930


802


833


3,510


912


991


984


2,887




Propylene produced


557


561


492


502


2,112


577


610


597


1,784




Polyethylene sold


1,320


1,130


1,243


1,250


4,943


1,206


1,314


1,212


3,732




Polypropylene sold


1,614


1,433


1,727


1,623


6,397


1,657


1,821


1,612


5,090



Benchmark Market Prices (€0.01 per pound)






















Western Europe weighted average cost of ethylene production


45.4


31.7


39.6


38.9


38.9


36.2


29.3


34.9


33.5




Western Europe ethylene


55.1


58.6


53.1


58.1


56.2


58.6


54.4


55.0


56.0




Western Europe polyethylene [high density]


58.6


60.9


57.2


61.0


59.4


61.2


56.8


57.9


58.6




Western Europe propylene


50.1


54.1


47.6


50.8


50.7


50.6


47.9


49.6


49.4




Western Europe polypropylene [homopolymer]


57.9


60.4


56.1


58.7


58.3


59.1


56.1


58.1


57.8
























Intermediates and Derivatives





















Volumes (million pounds)






















Propylene oxide and derivatives


774


743


762


663


2,942


683


665


665


2,013




Ethylene oxide and derivatives


312


275


311


260


1,158


260


277


294


831




Styrene monomer


704


678


791


782


2,955


703


589


756


2,048




Acetyls


489


444


499


406


1,838


431


470


506


1,407




TBA Intermediates


462


448


441


399


1,750


434


357


425


1,216



Volumes (million gallons)






















MTBE/ETBE


205


189


256


199


849


185


235


241


661



Benchmark Market Margins  (cents per gallon)






















MTBE - Northwest Europe


125.1


122.0


149.9


76.3


118.2


104.9


88.4


86.8


93.2























Refining





















Volumes (thousands of barrels per day)






















Heavy crude oil processing rate


259


267


240


255


255


173


265


250


230



Benchmark Market Margins






















Light crude oil - 2-1-1


10.29


15.30


16.82


8.99


12.81


11.53


14.63


12.63


12.96




Light crude oil - Maya differential


10.81


9.12


11.94


16.45


12.01


11.17


6.95


10.59


9.51














































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


Q2


Q3


YTD






























Sales and other operating revenues

$

11,734


$

11,248


$

11,273


$

11,097


$

45,352


$

10,669


$

11,103


$

11,152


$

32,924


Cost of sales


10,532



9,561



9,670



9,832



39,595



9,153



9,496



9,690



28,339


Selling, general and administrative expenses


223



201



236



249



909



213



208



220



641


Research and development expenses


39



37



39



57



172



36



35



35



106



Operating income


940



1,449



1,328



959



4,676



1,267



1,364



1,207



3,838


Income from equity investments


46



27



32



38



143



59



43



61



163


Interest expense, net


(95)



(409)



(67)



(69)



(640)



(69)



(65)



(76)



(210)


Other income (expense), net


4



7



(7)



2



6



6



(9)



1



(2)



Income before taxes


895



1,074



1,286



930



4,185



1,263



1,333



1,193



3,789


Provision for income taxes


301



306



435



285



1,327



357



410



339



1,106



Income from continuing operations


594



768



851



645



2,858



906



923



854



2,683


Income (loss) from discontinued operations, net of tax





























5



- -



(7)



(22)



(24)



(6)



4



(3)



(5)




Net income


599



768



844



623



2,834



900



927



851



2,678


Net loss attributable to non-controlling interests





























1



2



2



9



14



1



2



2



5




Net income attributable to the Company shareholders






























$

600


$

770


$

846


$

632


$

2,848


$

901


$

929


$

853


$

2,683





























































































































Table 12 - Unaudited Cash Flow Information





































2012


2013


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3



YTD

































Net cash provided by operating activities




























$

913


$

504


$

2,042


$

1,328


$

4,787


$

799


$

1,264


$

1,131


$

3,194

































Net cash used in investing activities





























(185)



(245)



(266)



(317)



(1,013)



(408)



(389)



(438)



(1,235)































Net cash provided by (used in) financing activities





























(140)



55



(234)



(1,826)



(2,145)



(234)



(526)



437



(323)




























































































































































Table 13 - Unaudited Balance Sheet Information



































March 31,


June 30,


September 30,


December 31,


March 31,


June 30,


September 30,


(Millions of U.S. dollars)

2012


2012


2012


2012


2013


2013


2013





























Cash and cash equivalents

$

1,670


$

1,950


$

3,527


$

2,732


$

2,879


$

3,233


$

4,414


Restricted cash


9



14



19



5



6



2



4


Accounts receivable, net


4,209



3,888



4,083



3,904



3,878



4,023



4,041


Inventories


5,208



5,759



5,234



5,075



5,270



5,197



5,382


Prepaid expenses and other current assets


1,002



755



532



570



622



577



784




Total current assets


12,098



12,366



13,395



12,286



12,655



13,032



14,625


Property, plant and equipment, net


7,426



7,237



7,412



7,696



7,779



7,979



8,223


Investments and long-term receivables:
























Investment in PO joint ventures


415



411



405



397



401



409



423




Equity investments


1,605



1,521



1,581



1,583



1,607



1,622



1,615




Other investments and long-term receivables


76



70



361



383



421



231



164


Goodwill


595



576



585



591



582



588



598


Intangible assets, net


1,149



1,103



1,073



1,038



999



966



934


Other assets, net


245



261



292



246



233



221



229




Total assets

$

23,609


$

23,545


$

25,104


$

24,220


$

24,677


$

25,048


$

26,811





























Current maturities of long-term debt

$

- -


$

- -


$

- -


$

1


$

1


$

1


$

1


Short-term debt


42



48



47



95



115



114



114


Accounts payable


3,545



3,004



3,297



3,285



3,217



3,324



3,241


Accrued liabilities


1,049



915



1,177



1,157



1,217



1,047



1,528


Deferred income taxes


310



277



304



558



557



550



494




Total current liabilities


4,946



4,244



4,825



5,096



5,107



5,036



5,378


Long-term debt


3,984



4,305



4,305



4,304



4,307



4,306



5,774


Other liabilities


2,281



2,208



2,153



2,327



2,306



2,325



2,278


Deferred income taxes


1,035



1,245



1,460



1,314



1,277



1,312



1,472


Stockholders' equity


11,310



11,492



12,312



11,139



11,641



12,032



11,874


Non-controlling interests


53



51



49



40



39



37



35




Total liabilities and stockholders' equity

$

23,609


$

23,545


$

25,104


$

24,220


$

24,677


$

25,048


$

26,811


















































 

 

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