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 October 23, 2015 - 7:15 AM EDT
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LyondellBasell Reports Record Quarterly Results

HOUSTON and LONDON, Oct. 23, 2015 /PRNewswire/ --

Third Quarter 2015 Highlights

  • Income from continuing operations: $1.2 billion ($1.3 billion excluding LCM1)
  • Diluted earnings per share: $2.55 per share ($2.80 per share excluding LCM, a quarterly record)
  • EBITDA: $2.0 billion ($2.2 billion excluding LCM, a quarterly record)
  • Last twelve months excluding LCM impacts: EBITDA of $8.5 billion and diluted earnings per share of $10.60
  • Excluding the impacts of the LCM adjustments, third quarter EBITDA was the sixth consecutive quarter of approximately $2 billion, and the 12th consecutive quarter of year over year growth
  • Repurchased 15.5 million shares during the quarter, or approximately 3.3 percent of the outstanding shares

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2015 of $1.2 billion, or $2.55 diluted earnings per share.  Third quarter 2015 EBITDA was approximately $2.0 billion.   

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


Table 1 - Earnings Summary








Three Months Ended

Nine Months Ended


September 30,

June 30,

September 30,

September 30,

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

2015

2015

2014

2015

2014

Sales and other operating revenues

$8,334

$9,145

$12,066

$25,664

$35,318

Net income(a)

1,186

1,329

1,257

3,679

3,377

Income from continuing operations(b)

1,189

1,326

1,260

3,682

3,376

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







Net income(c)

2.54

2.82

2.45

7.77

6.38


Income from continuing operations(b)

2.55

2.81

2.46

7.78

6.38

Diluted share count (millions)

463

472

512

473

529

EBITDA(d)

2,001

2,186

2,035

6,139

5,644








Excluding LCM Impacts:






LCM charges (benefits), pre-tax

181

(9)

45

264

45

Income from continuing operations(b)

1,303

1,320

1,288

3,848

3,404

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







Income from continuing operations(b)

2.80

2.79

2.51

8.13

6.43

EBITDA(d)

2,182

2,177

2,080

6,403

5,689

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

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

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

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

and income from continuing operations.









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

The third quarter included a $181 million non-cash, pre-tax lower of cost or market (LCM) inventory adjustment ($114 million after tax).  Excluding the LCM adjustment, earnings from continuing operations during the third quarter totaled $1.3 billion, or $2.80 per share, and EBITDA was $2.2 billion

"Our portfolio continued to demonstrate balance as third quarter EBITDA marked the fifth consecutive quarter of EBITDA in excess of $2 billion.  From an industry standpoint, the third quarter was a transitional period during which markets rebalanced following tight second quarter supply and the price of crude oil declined.  Despite this change, our portfolio continued to generate strong earnings as some product margins expanded while others contracted.  During the third quarter, our Olefins and Polyolefins – Europe, Asia, International and Intermediates and Derivatives segments both achieved record EBITDA.  In addition to continued earnings strength, cash generation remained strong and we repurchased 15.5 million shares, representing 3.3 percent of our outstanding shares," said Bob Patel, LyondellBasell Chief Executive Officer.    

OUTLOOK

"Thus far, the fourth quarter reflects a more balanced global ethylene industry.  We entered the quarter with lower ethylene-polyethylene chain margins following third quarter market rebalancing and oil price decline.  During the fourth quarter, we expect typical seasonal behavior to adversely impact the earnings of our oxyfuels, polyolefins, and refining businesses.  Looking ahead to 2016, we continue to forecast stable industry demand and operating rates and believe that the markets for our products will tighten as we move into the spring," Patel said. 

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

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

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

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

Table 2 - O&P–Americas Financial Overview



Three Months Ended

Nine Months Ended



September 30,

June 30,

September 30,

September 30,

Millions of U.S. dollars

2015

2015

2014

2015

2014

Operating income

$740

$920

$1,068

$2,594

$2,622

EBITDA

841

1,014

1,157

2,886

2,871

LCM charges (benefits), pre-tax

79

(21)

45

101

45

EBITDA excluding LCM adjustments

920

993

1,202

2,987

2,916








 

Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA decreased $73 million versus the second quarter of 2015, excluding a $100 million quarter to quarter variance as a result of the LCM inventory adjustments.  Olefins results decreased by approximately $140 million primarily due to a 6 cent per pound lower average ethylene price.  Polyolefin results improved by approximately $70 million principally due to higher price spreads over monomer.  Polyethylene and polypropylene spreads increased by 2 and 4 cents per pound, respectively.  Joint venture equity income increased by $4 million.

Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA decreased by $282 million versus the third quarter 2014, excluding a $34 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefins results decreased by $485 million primarily due to lower margins as a result of lower product prices.  The price of ethylene decreased by approximately 26 cents per pound.  This negative impact was partially offset by a lower cost of ethylene and higher volume from our La Porte ethylene plant expansion.   Polyolefin results improved by approximately $195 million due to higher price spreads over monomer.  Both polyethylene and  polypropylene spreads improved by approximately 10 and 9 cents per pound, respectively.  Joint venture equity income increased by $6 million.

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

Table 3 - O&P–EAI Financial Overview



Three Months Ended

Nine Months Ended



September 30,

June 30,

September 30,

September 30,

Millions of U.S. dollars

2015

2015

2014

2015

2014

Operating income

$412

$359

$223

$1,007

$638

EBITDA

549

492

343

1,398

1,018

LCM charges (benefits), pretax

6

- -

- -

6

- -

EBITDA excluding LCM adjustments

555

492

343

1,404

1,018








 

Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA increased by $63 million versus the second quarter 2015, excluding a $6 million quarter to quarter variance as a result of the LCM inventory adjustments.  Olefins results increased by $60 million primarily due to an approximately 9 cent per pound lower cost of ethylene production.  Ethylene production was lower during the quarter as a result of planned maintenance at our Münchsmünster, Germany olefins plant.   Combined polyolefin results increased by approximately $20 million.  Improved polypropylene results offset a small decline in polyethylene results.  Combined polypropylene compounds and polybutene-1 results decreased by approximately $10 million due in part to a seasonal volume decline.  Equity income was unchanged.

Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA increased by $212 million versus the third quarter 2014, excluding a $6 million quarter to quarter variance as a result of the LCM inventory adjustments.  Olefin results increased by approximately $80 million primarily due to higher ethylene margins.  Combined polyolefin results increased by approximately $115 million.  Spreads in polyethylene and polypropylene increased by approximately 6 and 3 cents per pound, respectively.  Polyethylene volume increased approximately 2 percent.  Combined polypropylene compounds and polybutene-1 results decreased by approximately $10 million.  Equity income increased by $23 million.

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

Table 4 - I&D Financial Overview




Three Months Ended

Nine Months Ended


September 30,

June 30,

September 30,

September 30,

Millions of U.S. dollars

2015

2015

2014

2015

2014

Operating income

$403

$405

$321

$1,079

$1,012

EBITDA

460

466

383

1,263

1,188

LCM charges, pre-tax

46

17

- -

107

- -

EBITDA excluding LCM adjustments

506

483

383

1,370

1,188







 

Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA increased $23 million versus the second quarter 2015, excluding a $29 million quarter to quarter variance as a result of the LCM inventory adjustments.  Propylene oxide and derivative results increased by approximately $30 million primarily due to higher margins.  Intermediate chemical results increased by approximately $30 million due to increased styrene and C4 chemical results which more than offset lower acetyls results.  Oxyfuels results decreased by approximately $30 million due to seasonally lower margins and lower sales volume.  Equity income decreased by $1 million.

Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA increased by $123 million versus the third quarter 2014, excluding a $46 million quarter to quarter variance as a result of the LCM inventory adjustments.  Propylene oxide and derivative results were relatively unchanged.  Intermediate chemical results improved by approximately $130 million primarily from the strength in styrene margins and improved ethylene oxide and glycol results.  Oxyfuels results were lower by approximately $10 million.  Equity income was unchanged.

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

Table 5 - Refining Financial Overview



Three Months Ended

Nine Months Ended


September 30,

June 30,

September 30,

September 30,

Millions of U.S. dollars

2015

2015

2014

2015

2014

Operating income

$52

$119

$67

$245

$248

EBITDA

93

159

110

401

376

LCM charges (benefits), pre-tax

50

(5)

- -

50

- -

EBITDA excluding LCM adjustments

143

154

110

451

376







 

Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA decreased by $11 million versus the second quarter 2015, excluding a $55 million quarter to quarter variance as a result of the LCM inventory adjustments. Crude oil throughput decreased by 6,000 barrels per day to 249,000 barrels per day.  The Maya 2-1-1 industry benchmark spread decreased by approximately $1 per barrel, averaging $22.77 per barrel.  Secondary product price spreads improved partially offsetting the lower Maya 2-1-1 spread.  The cost of RIN's was lower by $6 million.

Three months ended September 30, 2015 versus three months ended September 30, 2014 – Versus the third quarter of 2014, EBITDA increased by $33 million, excluding a $50 million quarter to quarter variance as a result of the LCM inventory adjustments.  Crude oil throughput decreased by 15,000 barrels per day.  The Maya 2-1-1 spread decreased by approximately $2 per barrel, however the corresponding Houston refinery spread increased by approximately $1 per barrel as secondary product margins improved. The cost of RIN's was lower by $8 million.

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

Table 6 - Technology Financial Overview




Three Months Ended

Nine Months Ended



September 30,

June 30,

September 30,

September 30,

Millions of U.S. dollars

2015

2015

2014

2015

2014

Operating income

$34

$45

$26

$143

$142

EBITDA

45

57

41

178

188








 

Three months ended September 30, 2015 versus three months ended June 30, 2015 – EBITDA decreased by $12 million due to lower licensing revenue.    

Three months ended September 30, 2015 versus three months ended September 30, 2014 – EBITDA increased by $4 million.

Capital Spending and Cash Balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $373 million during the third quarter 2015. Our cash and liquid investments balance was $3.5 billion at September 30, 2015. We repurchased 15.5 million of our shares outstanding during the third quarter of 2015, at a total cost of $1.3 billion.  There were 453 million common shares outstanding as of September 30, 2015. The company paid dividends of $361 million during the third quarter of 2015.

CONFERENCE CALL

LyondellBasell will host a conference call October 23 at 11 a.m. ET.  Participants on the call will include Chief Executive Officer Bob Patel, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike

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

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

A replay of the call will be available from 2 p.m. ET October 23 until November 23 at 11:59 p.m. ET.  The replay dial-in numbers are 800-856-2254 (U.S.) and +1 402-280-9961 (international). The pass code for each is 5671.

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyb.com) manufactures products at 56 sites in 19 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. 

FORWARD-LOOKING STATEMENTS

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

INFORMATION RELATED TO FINANCIAL MEASURES

This release makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.  The non-GAAP measures we have presented include income from continuing operations excluding LCM, diluted earnings per share excluding LCM, EBITDA and EBITDA excluding LCM.  LCM stands for "lower of cost or market," which is an accounting rule consistent with GAAP related to the valuation of inventory.  Our inventories are stated at the lower of cost or market.  Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs.  Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory.  In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, which results in us writing down the value of inventory to market value in accordance with the LCM rule, consistent with GAAP. This adjustment is somewhat unique to our 2010 company formation when all assets and liabilities were measured at fair value, our use of LIFO accounting, and the recent volatility in pricing for many of our raw material and finished goods inventories. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA and earnings and EBITDA excluding LCM, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

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

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

OTHER FINANCIAL MEASURE PRESENTATION NOTES

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



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





































2014


2015


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD


Sales and other operating revenues:





























Olefins & Polyolefins - Americas

$

3,357


$

3,462


$

3,750


$

3,379


$

13,948


$

2,551


$

2,679


$

2,516


$

7,746



Olefins & Polyolefins - EAI


3,778



4,069



3,995



3,361



15,203



2,911



3,061



2,932



8,904



Intermediates & Derivatives


2,429



2,706



2,691



2,304



10,130



1,918



2,159



2,039



6,116



Refining


2,756



3,250



3,146



2,558



11,710



1,607



2,102



1,693



5,402



Technology


136



144



107



110



497



136



107



100



343



Other/elims


(1,321)



(1,514)



(1,623)



(1,422)



(5,880)



(938)



(963)



(946)



(2,847)




Continuing Operations

$

11,135


$

12,117


$

12,066


$

10,290


$

45,608


$

8,185


$

9,145


$

8,334


$

25,664


Operating income (loss):





























Olefins & Polyolefins - Americas

$

656


$

898


$

1,068


$

950


$

3,572


$

934


$

920


$

740


$

2,594



Olefins & Polyolefins - EAI


225



190



223



246



884



236



359



412



1,007



Intermediates & Derivatives


316



375



321



208



1,220



271



405



403



1,079



Refining


86



95



67



(354)



(106)



74



119



52



245



Technology


60



56



26



29



171



64



45



34



143



Other


(3)



(1)



1



(2)



(5)



(4)



(3)



9



2




Continuing Operations

$

1,340


$

1,613


$

1,706


$

1,077


$

5,736


$

1,575


$

1,845


$

1,650


$

5,070


Depreciation and amortization:





























Olefins & Polyolefins - Americas

$

73


$

74


$

84


$

85


$

316


$

86


$

85


$

87


$

258



Olefins & Polyolefins - EAI


70



67



65



46



248



55



54



54



163



Intermediates & Derivatives


55



56



55



59



225



60



56



55



171



Refining


42



42



42



43



169



74



40



41



155



Technology


16



15



16



14



61



12



12



11



35




Continuing Operations

$

256


$

254


$

262


$

247


$

1,019


$

287


$

247


$

248


$

782


EBITDA: (b)





























Olefins & Polyolefins - Americas

$

736


$

978


$

1,157


$

1,040


$

3,911


$

1,031


$

1,014


$

841


$

2,886



Olefins & Polyolefins - EAI


356



319



343



348



1,366



357



492



549



1,398



Intermediates & Derivatives


375



430



383



271



1,459



337



466



460



1,263



Refining


129



137



110



(311)



65



149



159



93



401



Technology


76



71



41



44



232



76



57



45



178



Other


(4)



6



1



14



17



2



(2)



13



13




Continuing Operations

$

1,668


$

1,941


$

2,035


$

1,406


$

7,050


$

1,952


$

2,186


$

2,001


$

6,139


Capital, turnarounds and IT deferred spending:





























Olefins & Polyolefins - Americas

$

231


$

306


$

208


$

167


$

912


$

149


$

140


$

159


$

448



Olefins & Polyolefins - EAI


33



27



45



86



191



38



27



49



114



Intermediates & Derivatives


45



52



50



94



241



76



76



135



287



Refining


32



20



27



44



123



33



28



23



84



Technology


2



6



6



11



25



6



3



7



16



Other


- -



4



2



1



7



4



4



- -



8




Continuing Operations

$

343


$

415


$

338


$

403


$

1,499


$

306


$

278


$

373


$

957































































(a)  EBITDA as presented herein includes the impacts of pre-tax LCM charges of $45 million in the third quarter of 2014, $715 million in the fourth quarter of 2014, $92 million in the first quarter of 2015 and $181 million in the third quarter of 2015. EBITDA for the second quarter of 2015 includes a pre-tax LCM benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment. See Tables 2 through 6 for LCM adjustments recorded for each segment.

(b) See Table 8 for EBITDA calculation. 

 


Table 8 - EBITDA Calculation





































2014


2015


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD






























Net income attributable to the Company shareholders(a)

$

945


$

1,178


$

1,258


$

793


$

4,174


$

1,166


$

1,330


$

1,185


$

3,681


Net income (loss) attributable to non-controlling interests


(1)



(2)



(1)



(2)



(6)



(2)



(1)



1



(2)


(Income) loss from discontinued operations, net of tax


(1)



(3)



3



5



4



3



(3)



3



3


Income from continuing operations(a)


943



1,173



1,260



796



4,172



1,167



1,326



1,189



3,682



Provision for income taxes


383



425



434



298



1,540



440



541



487



1,468



Depreciation and amortization


256



254



262



247



1,019



287



247



248



782



Interest expense, net


86



89



79



65



319



58



72



77



207


EBITDA(b)

$

1,668


$

1,941


$

2,035


$

1,406


$

7,050


$

1,952


$

2,186


$

2,001


$

6,139































































(a) Amounts presented herein include after-tax LCM charges of $28 million in the third quarter of 2014, $455 million in the fourth quarter of 2014, $58 million in the first quarter of 2015 and $114 million in the third quarter of 2015.  The second quarter of 2015 includes an after-tax benefit of $6 million for the partial reversal of the first quarter 2015 LCM adjustment resulting from price recoveries during the period.

(b) EBITDA as presented herein includes the impacts of pre-tax LCM charges of $45 million in the third quarter of 2014, $715 million in the fourth quarter of 2014, $92 million in the first quarter of 2015 and $181 million in the third quarter of 2015.  The second quarter of 2015 includes a pre-tax LCM benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment.   

 


Table 9 - Selected Segment Operating Information





























2014


2015







Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD


Olefins and Polyolefins - Americas





















Volumes (million pounds)






















Ethylene produced


1,979


1,721


2,301


2,458


8,459


2,364


2,415


2,514


7,293




Propylene produced


611


648


559


719


2,537


805


740


697


2,242




Polyethylene sold


1,517


1,363


1,603


1,451


5,934


1,473


1,575


1,577


4,625




Polypropylene sold


627


605


681


592


2,505


627


698


662


1,987



Benchmark Market Prices













































West Texas Intermediate crude oil (USD per barrel)


98.61


102.99


97.25


73.20


92.91


48.57


57.95


45.36


56.60




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


104.36


105.55


101.03


76.58


96.92


52.84


62.93


50.20


55.32




Natural gas (USD per million BTUs)


5.01


4.74


4.19


4.09


4.51


2.76


2.76


2.72


2.73




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


20.0


17.1


14.5


10.5


15.4


10.2


9.7


9.6


9.8




U.S. ethylene (cents/pound)


48.3


47.2


51.8


44.8


48.0


34.8


34.2


30.3


33.1




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


76.3


77.0


78.0


76.7


77.0


65.7


67.3


64.3


65.8




U.S. propylene (cents/pound)


73.3


69.7


70.8


69.8


70.9


49.7


41.7


33.2


41.5




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


88.3


84.7


86.3


85.8


86.3


67.7


61.7


59.3


62.9

























Olefins and Polyolefins - Europe, Asia, International





















Volumes (million pounds)






















Ethylene produced


989


1,024


1,039


1,059


4,111


1,007


1,047


944


2,998




Propylene produced


582


617


629


618


2,446


600


632


575


1,807




Polyethylene sold


1,275


1,363


1,284


1,254


5,176


1,533


1,360


1,304


4,197




Polypropylene sold


1,509


1,707


1,633


1,561


6,410


1,817


1,529


1,673


5,019



Benchmark Market Prices (€0.01 per pound)






















Western Europe weighted average cost of ethylene production


32.9


34.3


31.5


18.2


29.2


22.9


23.2


14.4


20.2




Western Europe ethylene


54.7


52.8


54.1


48.7


52.6


39.3


47.1


46.6


44.4




Western Europe polyethylene [high density]


56.1


54.8


55.4


51.5


54.5


45.2


60.6


61.2


55.7




Western Europe propylene


51.3


52.2


51.9


46.5


50.5


37.1


44.4


41.7


41.1




Western Europe polypropylene [homopolymer]


59.9


61.3


61.4


57.0


59.9


49.8


62.5


59.3


57.2
























Intermediates and Derivatives





















Volumes (million pounds)






















Propylene oxide and derivatives


772


726


768


781


3,047


870


751


697


2,318




Ethylene oxide and derivatives


262


319


211


226


1,018


268


312


282


862




Styrene monomer


683


870


933


870


3,356


903


735


904


2,542




Acetyls


683


592


613


619


2,507


547


810


733


2,090




TBA Intermediates


416


391


461


384


1,652


433


321


421


1,175



Volumes (million gallons)






















MTBE/ETBE


188


266


245


216


915


229


299


268


796



Benchmark Market Margins  (cents per gallon)






















MTBE - Northwest Europe


63.4


90.7


111.8


109.1


94.0


64.0


106.0


119.0


96.8























Refining





















Volumes (thousands of barrels per day)






















Heavy crude oil processing rate


247


257


264


266


259


241


255


249


248



Benchmark Market Margins






















Light crude oil - 2-1-1


13.18


17.29


14.20


8.50


13.32


15.02


16.42


15.29


15.58




Light crude oil - Maya differential


15.08


9.72


10.15


9.22


11.11


8.72


7.56


7.48


7.97















































Source:  LYB and third party consultants

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

 



Table 10 - Unaudited Income Statement Information





































2014


2015


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD






























Sales and other operating revenues

$

11,135


$

12,117


$

12,066


$

10,290


$

45,608


$

8,185


$

9,145


$

8,334


$

25,664


Cost of sales(a)


9,577



10,255



10,118



8,989



38,939



6,379



7,047



6,465



19,891


Selling, general and administrative expenses


186



215



211



194



806



205



228



194



627


Research and development expenses


32



34



31



30



127



26



25



25



76



Operating income(a)


1,340



1,613



1,706



1,077



5,736



1,575



1,845



1,650



5,070


Income from equity investments


61



68



64



64



257



69



90



93



252


Interest expense, net


(86)



(89)



(79)



(65)



(319)



(58)



(72)



(77)



(207)


Other income, net


11



6



3



18



38



21



4



10



35



Income from continuing operations before income taxes(a)


1,326



1,598



1,694



1,094



5,712



1,607



1,867



1,676



5,150


Provision for income taxes


383



425



434



298



1,540



440



541



487



1,468



Income from continuing operations(b)


943



1,173



1,260



796



4,172



1,167



1,326



1,189



3,682


Income (loss) from discontinued operations, net of tax


1



3



(3)



(5)



(4)



(3)



3



(3)



(3)




Net income(b)


944



1,176



1,257



791



4,168



1,164



1,329



1,186



3,679


Net (income) loss attributable to non-controlling interests


1



2



1



2



6



2



1



(1)



2




Net income attributable to the Company shareholders(b)

$

945


$

1,178


$

1,258


$

793


$

4,174


$

1,166


$

1,330


$

1,185


$

3,681































































(a) Amounts presented herein include pre-tax LCM charges of $45 million in the third quarter of 2014, $715 million in the fourth quarter of 2014, $92 million in the first quarter of 2015 and $181 million in the third quarter of 2015.  The second quarter of 2015 includes a pre-tax benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment resulting from price recoveries during the period.

(b) Amounts presented herein include after tax LCM charges of $28 million in the third quarter of 2014, $455 million in the fourth quarter of 2014, $58 million in the first quarter of 2015 and $114 million in the third quarter of 2015.  The second quarter of 2015 includes an after tax benefit of $6 million for the partial reversal of the first quarter 2015 LCM adjustment discussed above.

 

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










































2014


2015

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

Q1


Q2


Q3


Q4


Total


Q1


Q2


Q3


YTD

Pretax charges (benefits):




























Settlement of environmental indemnification agreement

$

(52)


$

- -


$

- -


$

- -


$

(52)


$

- -


$

- -


$

- -


$

- -


Lower of cost or market inventory adjustment


- -



- -



45



715



760



92



(9)



181



264


Emission allowance credits, amortization


- -



- -



- -



- -



- -



35



- -



- -



35

Total pretax charges (benefits)


(52)



- -



45



715



708



127



(9)



181



299

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


- -



- -



(17)



(260)



(277)



(47)



3



(67)



(111)

After-tax effect of net charges (benefits)

$

(52)


$

- -


$

28


$

455


$

431


$

80


$

(6)


$

114


$

188

Effect on diluted earnings per share

$

0.09


$

- -


$

(0.05)


$

(0.91)


$

(0.82)


$

(0.17)


$

0.02


$

(0.25)


$

(0.40)











 

Table 12 - Unaudited Cash Flow Information





































2014


2015


(Millions of U.S. dollars)

Q1


Q2


Q3


Q4


Total


Q1



Q2



Q3



YTD

































Net cash provided by operating activities

$

801


$

1,797


$

1,434


$

2,016


$

6,048


$

1,468


$

1,446


$

1,768


$

4,682

































Net cash provided by (used in) investing activities


(2,011)



(246)



(638)



(636)



(3,531)



(443)



(727)



67



(1,103)































Net cash used in financing activities


(550)



(2,217)



(1,621)



(1,519)



(5,907)



(401)



(1,021)



(1,684)



(3,106)






























































































 

Table 13 - Unaudited Balance Sheet Information



































March 31,


June 30,


September 30,


December 31,


March 31,


June 30,


September 30,


(Millions of U.S. dollars)

2014


2014


2014


2014


2015


2015


2015





























Cash and cash equivalents

$

2,702


$

2,030


$

1,185


$

1,031


$

1,616


$

1,325


$

1,474


Restricted cash


3



2



- -



2



2



3



1


Short-term investments


1,402



1,299



1,544



1,593



1,478



1,989



1,602


Accounts receivable, net


4,141



4,264



4,105



3,448



3,089



3,373



2,924


Inventories


5,589



5,326



5,359



4,517



4,267



4,179



4,138


Prepaid expenses and other current assets


1,156



784



739



1,054



1,195



1,121



1,059




Total current assets


14,993



13,705



12,932



11,645



11,647



11,990



11,198


Property, plant and equipment, net


8,556



8,740



8,600



8,758



8,430



8,636



8,793


Investments and long-term receivables:
























Investment in PO joint ventures


424



418



397



384



373



357



357




Equity investments


1,693



1,702



1,690



1,636



1,581



1,612



1,602




Other investments and long-term receivables


62



58



54



44



38



126



125


Goodwill


605



602



576



566



533



543



543


Intangible assets, net


870



838



799



769



695



671



644


Other assets


624



593



583



481



709



670



673




Total assets

$

27,827


$

26,656


$

25,631


$

24,283


$

24,006


$

24,605


$

23,935





























Current maturities of long-term debt

$

3


$

3


$

2


$

4


$

4


$

3


$

3


Short-term debt


58



55



56



346



514



582



573


Accounts payable


3,642



3,690



3,431



3,064



2,631



2,755



2,450


Accrued liabilities


1,477



1,310



1,460



1,554



1,482



1,455



1,784


Deferred income taxes


540



570



685



469



429



434



383




Total current liabilities


5,720



5,628



5,634



5,437



5,060



5,229



5,193


Long-term debt


6,766



6,766



6,753



6,757



7,749



7,728



7,742


Other liabilities


1,838



1,851



1,795



2,122



2,038



2,063



2,044


Deferred income taxes


1,677



1,623



1,574



1,623



1,653



1,635



1,604


Stockholders' equity


11,791



10,753



9,843



8,314



7,478



7,927



7,328


Non-controlling interests


35



35



32



30



28



23



24




Total liabilities and stockholders' equity

$

27,827


$

26,656


$

25,631


$

24,283


$

24,006


$

24,605


$

23,935


















































 


 

Amazing Chemistry

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

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/lyondellbasell-reports-record-quarterly-results-300165228.html

SOURCE LyondellBasell Industries


Source: PR Newswire (October 23, 2015 - 7:15 AM EDT)

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