Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

LyondellBasell Reports Record 2012 Earnings



                 LyondellBasell Reports Record 2012 Earnings

PR Newswire

ROTTERDAM, Netherlands, Feb. 1, 2013

  

ROTTERDAM, Netherlands, Feb. 1, 2013 /PRNewswire/ --

Full Year 2012 Highlights

  o Record earnings of $2,858 million income from continuing operations or
    $4.96 diluted earnings per share; EBITDA of $5,856 million
  o Strong performance led by advantaged positions in Olefins and Polyolefins
    – Americas and Intermediates and Derivatives segments
  o Paid $2.4 billion in dividends, or $4.20 per share, a yield of
    approximately 7 percent
  o Joined the S&P 500 index

Fourth Quarter 2012 Highlights

  o $645 million income from continuing operations or $1.13 diluted earnings
    per share, and EBITDA of $1,289 million
  o Strong North America olefins margins with approximately 85 percent of
    ethylene production sourced from natural gas liquids (NGLs)
  o Business followed the typical fourth quarter trends
  o Paid a special dividend of $2.75 per share or $1.6 billion

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing
operations for the fourth quarter 2012 of $645 million, or $1.13 per share.
Fourth-quarter 2012 EBITDA was $1,289 million. Full year 2012 income from
continuing operations was $2,858 million, or $4.96 per share. Comparisons with
the prior quarter, fourth quarter 2011, and full year 2011 are available in
the following table.

Table 1 - Earnings Summary
                        Three Months Ended                Year Ended
Millions of U.S.        December   September   December   December  December
dollars                 31,        30,         31,        31,       31,
      (except share     2012       2012        2011       2012      2011
      data)
Sales and other         $11,097    $11,273     $10,981    $45,352   $48,183
operating revenues
Net income (loss)^(a)   623        844         (218)      2,834     2,140
Income from continuing  645        851         27         2,858     2,472
operations
Diluted earnings per
share (U.S. dollars):
      Net income        1.09       1.46        (0.38)     4.92      3.74
      (loss)^(b)
      Income from
      continuing        1.13       1.47        0.05       4.96      4.32
      operations
Diluted share count     578        577         575        577       572
(millions)
EBITDA^(c)              1,289      1,565       766        5,856     5,585
EBITDA excluding LCM
inventory
                        1,289      1,494       766        5,856     5,585
valuation adjustments
(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.

For 2012, LyondellBasell reported record results, led by the Olefins and
Polyolefins - Americas and the Intermediates and Derivatives segments, both of
which benefit from geographically advantaged feedstocks.

Fourth-quarter 2012 EBITDA and net income were lower than the third quarter
2012, following normal seasonal slowdown impacts.

Results reflect the following charges and benefits:

Table 2 - Charges (Benefits) Included in Net Income
                                 Three Months Ended          Year Ended
Millions of U.S. dollars         December September December December December
                                 31,      30,       31,      31,      31,
  (except share data)            2012     2012      2011     2012     2011
Pretax charges (benefits):
  Charges and premiums related   $ - -    $ - -     $431     $329     $443
  to repayment of debt
  Reorganization items           - -      - -       15       (4)      45
  Corporate restructurings       53       - -       18       53       93
  Impairments                    - -      - -       - -      22       23
  Sale of precious metals        - -      - -       - -      - -      (41)
  Warrants - mark to market      - -      - -       6        11       37
  Legal recovery                 - -      (24)      - -      (24)     - -
  Insurance settlement           - -      - -       - -      (100)    (34)
  Unfavorable contract reserve   (28)     - -       - -      (28)     - -
  reversal
  Environmental accruals         - -      - -       - -      - -      16
  Asset retirement obligations   - -      - -       - -      - -      10
  Settlement related to Houston  - -      - -       (15)     - -      (15)
  refinery crane incident
  Lower of cost or market        - -      (71)      - -      - -      - -
  inventory adjustment
Total pretax charges (benefits)  25       (95)      455      259      577
Provision for (benefit from)
income tax related to these      (17)     35        (154)    (96)     (169)
items
After-tax effect of net charges  8        (60)      301      163      408
(credits)
Effect on diluted earnings per   $ - -    $0.11     ($0.52)  ($0.26)  ($0.69)
share

"Our fourth quarter results were in line with seasonal trends and our
expectations, contributing to a record year for LyondellBasell," said Jim
Gallogly, LyondellBasell Chief Executive Officer. "During 2012, we generated
income from continuing operations of $2,858 million or $4.96 per share. Our
North American olefins business and our Intermediates and Derivatives segment
set the pace for the year's strong performance. The benefits of our focused
back-to-basics strategy were clearly demonstrated as reliable manufacturing
operations allowed us to take advantage of favorable market conditions. The
U.S. shale gas revolution is clearly visible in our current results as well as
future growth plans," Gallogly said.

"Over the past two and a half years, the company has advanced every facet of
its business processes, including safer and more reliable operations, strict
cost control and refurbishing its assets through a large number of major
turnarounds. This work has enabled strong returns to shareholders, a
strengthened balance sheet, and a significant capital growth program. Our
employees' hard work and dedication have contributed to our strong operational
and financial performance," Gallogly said.

"During the year, we paid dividends of more than $2.4 billion, or $4.20 per
share, contributing to an annual shareholders' return of 89 percent. Our
success was further recognized through our addition to the S&P 500 index and
Moody's raising our credit rating to investment grade," Gallogly said.

OUTLOOK

Commenting on the near term outlook, Gallogly said, "We have seen a good start
in 2013. Our assets have run well through the early weeks of the new year.
Overall, the fundamentals that supported our success during 2012 have
continued. Our employees remain very focused, and we anticipate another strong
year in 2013."

"Olefins in North America continue to benefit from strong margins created by
low priced natural gas liquid raw materials. However, outside of North
America, the global olefins industry continues to experience low operating
rates and profitability, negatively impacting our European olefins and
commodity polyolefin businesses," Gallogly said.

"The diversified portfolio of businesses in our Intermediates and Derivatives
segment continues to realize solid performance. Our Refining segment will be
impacted by a turnaround in the first quarter as we complete scheduled
maintenance at our Houston refinery," added Gallogly.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell operates in five business segments: 1) Olefins and Polyolefins
– Americas; 2) Olefins and Polyolefins – Europe, Asia, 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                   Year Ended
                  December    September    December    December    December
                  31,         30,          31,         31,         31,
Millions of U.S.  2012        2012         2011        2012        2011
dollars
Operating income  $693        $738         $328        $2,650      $1,855
EBITDA            769         820          407         2,963       2,140
EBITDA excluding  769         749          407         2,963       2,140
LCM charges

Three months ended December 31, 2012 versus three months ended September 30,
2012 – EBITDA decreased $51 million versus the third quarter 2012. Underlying
EBITDA increased by $20 million excluding the impact of the $71 million
non-cash lower of cost or market (LCM) reversal in the third quarter 2012.
Compared to the prior period, underlying olefins results increased primarily
due to margin improvement in the fourth quarter 2012. The fourth quarter was
the second consecutive quarter where the company's North American olefins
plant utilization exceeded 100 percent of nameplate capacity. Combined
polyolefin results declined slightly, driven by lower polyethylene spreads and
a 6 percent decline in polypropylene sales volume. During the third quarter,
the segment received $10 million in dividends from the Indelpro joint venture.

Three months ended December 31, 2012 versus three months ended December 31,
2011 – EBITDA increased $362 million versus the fourth quarter 2011. Olefins
results increased compared to the prior year period largely as a result of
significantly improved margins resulting from lower natural gas liquid prices,
in addition to increased ethylene production. Polyethylene results improved as
a result of a 7 percent increase in sales volume coupled with approximately 3
cents per pound spread improvement. Polypropylene results also increased as a
result of higher polypropylene margins more than offsetting a 4 percent volume
decline.

Full year ended December 31, 2012 versus full year ended December 31, 2011 –
EBITDA increased $823 million versus 2011. Olefins results increased compared
to the prior year, primarily driven by improved ethylene margins as the
company's average cost-of-ethylene-production metric decreased approximately
11 cents per pound, which more than offset an approximate 3 cents per pound
decline in the company's average ethylene sales price. Polyolefin results were
higher in 2012 than in 2011 as both sales volumes and margins improved. The
segment benefited in 2012 from a $29 million hurricane insurance settlement.

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                   Year Ended
                  December    September    December    December    December
                  31,         30,          31,         31,         31,
Millions of U.S.  2012        2012         2011        2012        2011
dollars
Operating income  ($94)       $15          ($73)       $127        $435
(loss)
EBITDA            50          75           45          561         894

Three months ended December 31, 2012 versus three months ended September 30,
2012 – EBITDA decreased $25 million versus the third quarter 2012. The fourth
quarter included a net negative impact related to various items such as
restructuring and compensation accruals, a feedstock contract renegotiation,
and a Wesseling plant turnaround. Underlying results for combined olefins and
polyolefins improved by approximately $30 million. Combined polypropylene
compounds and Polybutene-1 results declined approximately $40 million from a
strong third quarter 2012 due to a seasonal volume decline in addition to
lower margins related to raw materials pricing volatility. Dividends from
joint ventures totaled $50 million during the fourth quarter 2012.

Three months ended December 31, 2012 versus three months ended December 31,
2011 – EBITDA increased $5 million versus the fourth quarter 2011. Underlying
olefins results increased due to improved margins. Combined polyolefin results
increased approximately $25 million compared to the prior year period
primarily as a result of improved margins. Polypropylene compounding and
Polybutene-1 results declined approximately $25 million compared to the prior
year period due to lower margins, driven by a raw material pricing lag that
more than offset a 3 percent volume increase. Dividends from joint ventures
totaled $50 million in the fourth quarter 2012 and $44 million in the same
period in 2011.

Full year ended December 31, 2012 versus full year ended December 31, 2011 –
EBITDA decreased $333 million versus 2011. Olefins results declined
approximately $190 million due to lower margins and a 6 percent decline in
production volume, partly associated with the Wesseling plant turnaround in
late 2012. Combined polyolefin results fell approximately $65 million due to
lower sales volumes and margins, while results for polypropylene compounding
and Polybutene-1 improved by approximately $10 million as margins improved and
volumes stayed relatively unchanged. Dividends from joint ventures decreased
$68 million in 2012 when compared to 2011.

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                  Year Ended
                         December 31, September 30, December December December
                                                    31,      31,      31,
Millions of U.S. dollars 2012         2012          2011     2012     2011
Operating income         $246         $424          $185     $1,430   $1,156
EBITDA                   305          475           235      1,653    1,392

Three months ended December 31, 2012 versus three months ended September 30,
2012 – EBITDA decreased $170 million versus the third quarter 2012. Combined
PO and derivatives, and intermediate chemicals results declined approximately
$55 million versus the prior period due to the effects of planned maintenance
turnarounds and a seasonal drop in demand. Oxyfuels results declined
approximately $100 million due to lower sales volumes and margins associated
with typical fourth quarter gasoline demand and pricing seasonality.

Three months ended December 31, 2012 versus three months ended December 31,
2011 – EBITDA increased $70 million compared to the fourth quarter 2011.
Underlying EBITDA for PO and derivatives decreased slightly versus the prior
year period due to lower margins. The decline in PO and derivatives was
outpaced by higher C4 chemicals margins and increased acetyls volumes and
margins compared to the fourth quarter 2011. Oxyfuels results increased by
approximately $55 million due to improved margins driven by higher fourth
quarter 2012 gasoline prices coupled with higher crude oil-to-natural gas
spread relative to the fourth quarter 2011.

Full year ended December 31, 2012 versus full year ended December 31, 2011 –
EBITDA in 2012 increased by $261 million versus 2011. Combined results for PO,
PO derivatives and intermediate chemicals products increased. Improved C4
chemical margins more than offset moderate declines in PO derivatives and
ethylene glycol margins. Oxyfuels results increased by approximately $230
million due to improved volumes and margins. Higher margins in 2012 were
driven by higher gasoline prices coupled with higher crude oil-to-natural gas
spread compared to 2011. The I&D segment benefited in 2012 from $14 million in
joint venture dividends and $18 million in proceeds from a hurricane insurance
settlement, and in 2011 from $41 million related to the sale of precious
metals.

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

Table 6 - Refining Financial Overview
                         Three Months Ended                  Year Ended
                         December 31, September 30, December December December
                                                    31,      31,      31,
Millions of U.S. dollars 2012         2012          2011     2012     2011
Operating income         $86          $114          $3       $334     $809
EBITDA                   122          150           67       481      977

Three months ended December 31, 2012 versus three months ended September 30,
2012 – EBITDA decreased $28 million versus the third quarter 2012. Excluding
the $24 million in proceeds related to a legal restitution in the third
quarter 2012, underlying business results were relatively unchanged. The
Houston refinery operated at 255,000 barrels per day, up 15,000 barrels per
day from the prior quarter. The Maya 2-1-1 benchmark crack spread decreased
$2.29 per barrel to $24.36 per barrel in the fourth quarter 2012. Relative to
the benchmark spread, results continue to be negatively impacted from
depressed by-product values such as petroleum coke and various natural gas
based products.

Three months ended December 31, 2012 versus three months ended December 31,
2011 – EBITDA increased $55 million versus the fourth quarter 2011. The
Houston refinery operated at 255,000 barrels per day, down 7,000 barrels per
day from the fourth quarter in 2011. The throughput decline, which negatively
impacted the segment results by approximately $10 million, was more than
offset by improved fourth quarter 2012 margins. The Maya 2-1-1 benchmark crack
spread increased $11.65 per barrel to $24.36 per barrel in the fourth quarter
2012. The fourth quarter 2011 results included $15 million in proceeds from
the 2008 crane incident settlement.

Full year ended December 31, 2012 versus full year ended December 31, 2011 –
EBITDA decreased $496 million in 2012 compared to 2011 due to fewer
opportunities to purchase discounted crude oils, reduced by-product values,
and a throughput decline of 8,000 barrels-per-day. The throughput decline was
the result of a combination of planned and unplanned outages at the Houston
refinery. The Maya 2-1-1 benchmark crack spread increased $1.99 per barrel to
$23.55 per barrel in 2012 compared to 2011. Relative to the benchmark spread,
results were negatively impacted from reduced opportunity to purchase
discounted crude oils, and depressed by-product values such as petroleum coke.
The refining segment benefited from proceeds of $77 million in 2012 and $49
million in 2011 from insurance claims, recoveries and settlements.

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                   Year Ended
                  December    September    December    December    December
                  31,         30,          31,         31,         31,
Millions of U.S.  2012        2012         2011        2012        2011
dollars
Operating income  $23         $31          $11         $122        $107
EBITDA            43          48           36          197         214

Three months ended December 31, 2012 versus three months ended September 30,
2012 – EBITDA declined $5 million compared to the third quarter 2012. Higher
catalyst sales were more than offset by $18 million in charges related to
research and development restructuring activities.

Three months ended December 31, 2012 versus three months ended December 31,
2011 – EBITDA increased $7 million compared to the fourth quarter of the prior
year driven by higher catalyst sales and licensing activities. The fourth
quarter 2012 includes $18 million in charges related to research and
development restructuring activities.

Full year ended December 31, 2012 versus full year ended December 31, 2011 –
EBITDA decreased $17 million due to charges related to research and
development restructuring activities.

Capital Spending and Cash balances

Capital expenditures, including growth projects, maintenance turnarounds,
catalyst and information technology-related expenditures, were $333 million
during the fourth quarter 2012 and $1.1 billion for the full year 2012. The
company's cash balance was approximately $2.7 billion on Dec. 31, 2012.

CONFERENCE CALL

LyondellBasell will host a conference call today, Feb. 01, 2013, at 11 a.m.
ET. Participants on the call will include Chief Executive Officer Jim
Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen,
Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov,
and Vice President of Investor Relations Doug Pike.

The toll-free dial-in number in the U.S. is 800-369-1609. For international
numbers, please go to our website, www.lyondellbasell.com/teleconference, for
a complete listing of toll-free numbers by country. The pass code for all
numbers is 4807902.

A replay of the call will be available from 2 p.m. ET Feb. 1 to 11 p.m. ET on
March 1. The replay dial-in numbers are 866-454-2134 (U.S.) and +1
203-369-1248 (international). The pass code for each number is 7068.

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

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical
and refining companies and a member of the S&P 500 Index. 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, 2011, which can be found at
www.lyondellbasell.com on the Investor Relations page and on the Securities
and Exchange Commission's website at www.sec.gov

NON-GAAP MEASURES

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

We have included EBITDA in this press release. 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. For
purposes of this release, EBITDA means net income before net interest expense,
income taxes, depreciation and amortization, reorganization items, income from
equity investments, income (loss) attributable to non-controlling interests,
net income (loss) from discontinued operations, plus joint venture dividends,
as adjusted for other items management does not believe are indicative of the
Company's underlying results of operations such as impairment charges, asset
retirement obligations and the effect of mark-to-market accounting on our
warrants. The specific items for which EBITDA is adjusted in each applicable
reporting period may only be relevant in certain periods and are disclosed in
the reconciliation of non-GAAP financial measures table. EBITDA should not be
considered an alternative to profit or operating profit for any period as an
indicator of our performance, or as alternatives to operating cash flows as a
measure of our liquidity.

Quantitative reconciliations of non-GAAP financial measures 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
                2011                                                  2012
 (Millions of   Q1         Q2         Q3         Q4        YTD        Q1         Q2         Q3         Q4         YTD
 U.S. dollars)
 Sales and
 other
 operating
 revenues:
  Olefins &
  Polyolefins - $ 3,572    $ 4,010    $ 3,875    $ 3,423   $ 14,880   $ 3,349    $ 3,283    $ 3,217    $ 3,085    $ 12,934
  Americas
  Olefins &
  Polyolefins -   3,988      4,292      3,954      3,357     15,591     3,898      3,575      3,448      3,600      14,521
  EAI
  Intermediates   2,331      2,536      2,491      2,142     9,500      2,485      2,285      2,637      2,251      9,658
  & Derivatives
  Refining        2,867      3,996      3,955      2,888     13,706     3,203      3,496      3,272      3,320      13,291
  Technology      139        126        129        112       506        119        115        124        140        498
  Other/elims     (1,517)    (1,654)    (1,888)    (941)     (6,000)    (1,320)    (1,506)    (1,425)    (1,299)    (5,550)
   Continuing   $ 11,380   $ 13,306   $ 12,516   $ 10,981  $ 48,183   $ 11,734   $ 11,248   $ 11,273   $ 11,097   $ 45,352
   Operations
   Discontinued $ 872      $ 736      $ 781      $ 463     $ 2,852    $ 145      $ 42       $ 56       $ 35       $ 278
   Operations
 Operating
 income (loss):
  Olefins &
  Polyolefins - $ 421      $ 508      $ 598      $ 328     $ 1,855    $ 519      $ 700      $ 738      $ 693      $ 2,650
  Americas
  Olefins &
  Polyolefins -   175        203        130        (73)      435        3          203        15         (94)       127
  EAI
  Intermediates   276        327        368        185       1,156      370        390        424        246        1,430
  & Derivatives
  Refining        158        258        390        3         809        10         124        114        86         334
  Technology      66         23         7          11        107        38         30         31         23         122
  Other           (1)        (9)        - -        (15)      (25)       - -        2          6          5          13
   Continuing   $ 1,095    $ 1,310    $ 1,493    $ 439     $ 4,337    $ 940      $ 1,449    $ 1,328    $ 959      $ 4,676
   Operations
   Discontinued $ (30)     $ (45)     $ (26)     $ (238)   $ (339)    $ 6        $ (15)     $ (8)      $ (6)      $ (23)
   Operations
 Depreciation
 and
 amortization:
  Olefins &
  Polyolefins - $ 58       $ 59       $ 64       $ 65      $ 246      $ 65       $ 71       $ 69       $ 76       $ 281
  Americas
  Olefins &
  Polyolefins -   57         66         69         70        262        69         69         63         84         285
  EAI
  Intermediates   44         48         46         48        186        47         48         49         50         194
  & Derivatives
  Refining        32         35         37         49        153        38         37         36         37         148
  Technology      24         16         21         23        84         18         19         18         18         73
  Other           - -        - -        - -        - -       - -        - -        - -        1          1          2
   Continuing   $ 215      $ 224      $ 237      $ 255     $ 931      $ 237      $ 244      $ 236      $ 266      $ 983
   Operations
   Discontinued $ - -      $ - -      $ - -      $ - -     $ - -      $ - -      $ - -      $ - -      $ - -      $ - -
   Operations
 EBITDA: ^(a)
  Olefins &
  Polyolefins - $ 484      $ 577      $ 672      $ 407     $ 2,140    $ 598      $ 776      $ 820      $ 769      $ 2,963
  Americas
  Olefins &
  Polyolefins -   329        273        247        45        894        101        335        75         50         561
  EAI
  Intermediates   321        419        417        235       1,392      418        455        475        305        1,653
  & Derivatives
  Refining        190        293        427        67        977        48         161        150        122        481
  Technology      91         42         45         36        214        57         49         48         43         197
  Other           5          (11)       (2)        (24)      (32)       6          (2)        (3)        - -        1
   Continuing   $ 1,420    $ 1,593    $ 1,806    $ 766     $ 5,585    $ 1,228    $ 1,774    $ 1,565    $ 1,289    $ 5,856
   Operations
   Discontinued $ (18)     $ (40)     $ (18)     $ (230)   $ (306)    $ 8        $ (15)     $ (9)      $ (6)      $ (22)
   Operations
 Capital,
 turnarounds
 and IT
 deferred
  spending:
  Olefins &
  Polyolefins - $ 66       $ 138      $ 149      $ 72      $ 425      $ 102      $ 135      $ 126      $ 105      $ 468
  Americas
  Olefins &
  Polyolefins -   42         37         46         110       235        60         39         60         95         254
  EAI
  Intermediates   5          15         26         55        101        18         24         44         73         159
  & Derivatives
  Refining        96         49         45         34        224        38         27         24         47         136
  Technology      7          3          8          8         26         9          8          12         14         43
  Other           1          10         - -        6         17         2          3          1          (1)        5
   Total          217        252        274        285       1,028      229        236        267        333        1,065
  Deferred
  charges         (1)        - -        (2)        (4)       (7)        (1)        (3)        (1)        - -        (5)
  included
  above
   Continuing   $ 216      $ 252      $ 272      $ 281     $ 1,021    $ 228      $ 233      $ 266      $ 333      $ 1,060
   Operations
   Discontinued $ 5        $ 9        $ 7        $ 8       $ 29       $ - -      $ - -      $ - -      $ - -      $ - -
   Operations
(a) See Table 9 for a reconciliation of total EBITDA to income from continuing operations.

Table 9 - Reconciliation of EBITDA to Income from Continuing Operations
                  2011                                           2012
 (Millions of     Q1       Q2       Q3       Q4       YTD        Q1       Q2       Q3        Q4       YTD
 U.S. dollars)
 Segment EBITDA:
  Olefins &
  Polyolefins -   $ 484    $ 577    $ 672    $ 407    $ 2,140    $ 598    $ 776    $ 820     $ 769    $ 2,963
  Americas
  Olefins &
  Polyolefins -     329      273      247      45       894        101      335      75        50       561
  EAI
  Intermediates &   321      419      417      235      1,392      418      455      475       305      1,653
  Derivatives
  Refining          190      293      427      67       977        48       161      150       122      481
  Technology        91       42       45       36       214        57       49       48        43       197
  Other             5        (11)     (2)      (24)     (32)       6        (2)      (3)       - -      1
 Total EBITDA       1,420    1,593    1,806    766      5,585      1,228    1,774    1,565     1,289    5,856
 Adjustments to
 EBITDA:
  Legal recovery    - -      - -      - -      - -      - -        - -      - -      (24)      - -      (24)
  Unfavorable
  contract          - -      - -      - -      - -      - -        - -      - -      - -       (28)     (28)
  reserve
  reversal
  Lower of cost
  or market
  inventory
                    - -      - -      - -      - -      - -        - -      71       (71)      - -      - -
  adjustment
  Sale of           - -      (41)     - -      - -      (41)       - -      - -      - -       - -      - -
  precious metals
  Corporate         - -      61       14       18       93         - -      - -      - -       53       53
  restructurings
  Environmental     - -      16       - -      - -      16         - -      - -      - -       - -      - -
  accruals
  Settlement
  related to
  Houston
  refinery crane    - -      - -      - -      (15)     (15)       - -      - -      - -       - -      - -
  incident
  Insurance         (34)     - -      - -      - -      (34)       - -      (100)    - -       - -      (100)
  settlement
 Total Adjusted     1,386    1,629    1,820    769      5,604      1,228    1,745    1,470     1,314    5,757
 EBITDA
 Add:
  Income from
  equity            58       73       52       33       216        46       27       32        38       143
  investments
 Deduct:
  Adjustments to    34       (36)     (14)     (3)      (19)       - -      29       95        (25)     99
  EBITDA
  Depreciation
  and               (215)    (224)    (237)    (255)    (931)      (237)    (244)    (236)     (266)    (983)
  amortization
  Impairment        - -      (4)      (19)     - -      (23)       (22)     - -      - -       - -      (22)
  charges
  Asset
  retirement        - -      - -      (10)     - -      (10)       - -      - -      - -       - -      - -
  obligation
  Reorganization    (2)      (28)     - -      (15)     (45)       5        (1)      - -       - -      4
  items
  Interest          (155)    (164)    (146)    (542)    (1,007)    (95)     (409)    (67)      (69)     (640)
  expense, net
  Joint venture
  dividends         (96)     (11)     (55)     (44)     (206)      (14)     (73)     (10)      (50)     (147)
  received
  Provision for     (263)    (388)    (506)    98       (1,059)    (301)    (306)    (435)     (285)    (1,327)
  income taxes
  Non-controlling   (3)      (1)      - -      (3)      (7)        (1)      (2)      (2)       (9)      (14)
  interests
  Fair value
  change in         (59)     6        22       (6)      (37)       (10)     - -      (1)       - -      (11)
  warrants
  Other             (3)      (1)      5        (5)      (4)        (5)      2        5         (3)      (1)
 Income from
 continuing         682      851      912      27       2,472      594      768      851       645      2,858
 operations
  Adjustments to    (34)     36       14       3        19         - -      (29)     (95)      25       (99)
  EBITDA
  Premiums and
  charges on
  early

  repayment of      - -      12       - -      431      443        - -      329      - -       - -      329
  debt
  Reorganization    2        28       - -      15       45         (5)      1        - -       - -      (4)
  items
  Asset
  retirement        - -      - -      10       - -      10         - -      - -      - -       - -      - -
  obligation
  Fair value
  change in         59       (6)      (22)     6        37         10       - -      1         - -      11
  warrants
  Impairment        - -      4        19       - -      23         22       - -      - -       - -      22
  charges
  Tax impact of
  net income
  (loss)
                    11       (21)     (5)      (154)    (169)      (5)      (109)    35        (17)     (96)
  adjustments
 Adjusted income
 from continuing  $ 720    $ 904    $ 928    $ 328    $ 2,880    $ 616    $ 960    $ 792     $ 653    $ 3,021
 operations
 Earnings (loss)
 per share:
  Diluted
  earnings per
  share –
     continuing   $ 1.19   $ 1.46   $ 1.54   $ 0.05   $ 4.32     $ 1.03   $ 1.33   $ 1.47    $ 1.13   $ 4.96
     operations
  Adjustments to
  continuing        0.07     0.09     0.03     0.52     0.69       0.04     0.32     (0.11)    - -      0.26
  operations
  Adjusted
  diluted         $ 1.26   $ 1.55   $ 1.57   $ 0.57   $ 5.01     $ 1.07   $ 1.65   $ 1.36    $ 1.13   $ 5.22
  earnings per
  share

Table 10 - Selected Segment Operating Information
                   2011                                    2012
                   Q1      Q2      Q3      Q4      YTD     Q1      Q2      Q3      Q4      YTD
 Olefins and
 Polyolefins -
 Americas
  Volumes
  (million
  pounds)
   Ethylene        2,089   1,929   2,134   2,201   8,353   1,988   2,134   2,401   2,449   8,972
   produced
   Propylene       769     556     838     744     2,907   533     615     633     582     2,363
   produced
   Polyethylene    1,405   1,377   1,368   1,343   5,493   1,448   1,316   1,434   1,441   5,639
   sold
   Polypropylene   685     704     727     727     2,843   735     719     740     695     2,889
   sold
  Benchmark
  Market Prices
   West Texas
   Intermediate
   crude oil (USD  94.60   102.34  89.54   94.06   95.11   103.03  93.35   92.20   88.23   94.15

   per barrel)
   Light
   Louisiana
   Sweet ("LLS")   107.83  118.34  112.46  110.81  112.40  119.85  108.24  109.36  109.47  111.70
   crude oil (USD

   per barrel)
   Natural gas
   (USD per        4.19    4.43    4.31    3.64    4.14    2.65    2.33    2.92    3.49    2.90
   million BTUs)
   U.S. weighted
   average cost
   of ethylene
   production
   (cents/pound)   32.6    33.8    34.3    41.6    35.6    28.5    18.4    19.7    18.6    21.2
   U.S. ethylene   49.3    57.5    55.8    54.4    54.3    54.9    46.9    45.4    45.7    48.3
   (cents/pound)
   U.S.
   polyethylene    61.7    68.7    63.0    59.7    63.3    67.0    63.0    59.3    59.7    62.3
   [high density]
   (cents/pound)
   U.S. propylene  71.7    87.3    76.5    57.8    73.3    67.2    64.2    49.8    54.5    58.9
   (cents/pound)
   U.S.
   polypropylene   89.3    99.7    90.2    70.7    87.5    81.2    76.7    63.8    68.5    72.5
   [homopolymer]
   (cents/pound)
 Olefins and
 Polyolefins -
 Europe, Asia,
 International
  Volumes
  (million
  pounds)
   Ethylene        997     999     926     807     3,729   947     930     802     833     3,512
   produced
   Propylene       608     631     560     487     2,286   577     562     493     502     2,134
   produced
   Polyethylene    1,305   1,279   1,349   1,210   5,143   1,316   1,137   1,253   1,257   4,963
   sold
   Polypropylene   1,551   1,494   1,489   1,543   6,077   1,541   1,337   1,633   1,574   6,085
   sold
  Benchmark
  Market Prices
   Western Europe
   weighted
   average cost
   of ethylene     34.7    35.4    37.3    38.5    36.5    45.4    31.7    39.6    38.9    38.9

   production
   (€0.01 per
   pound)
   Western Europe
   ethylene        52.0    54.7    50.3    49.7    51.7    55.1    58.6    53.1    58.1    56.2
   (€0.01 per
   pound)
   Western Europe
   polyethylene
   [high density]  55.9    59.3    54.0    52.5    55.4    58.6    60.9    57.2    61.0    59.4
   (€0.01

   per pound)
   Western Europe
   propylene       50.8    55.3    50.2    46.5    50.7    50.1    54.1    47.6    50.8    50.7
   (€0.01 per
   pound)
   Western Europe
   polypropylene
   [homopolymer]   61.3    63.8    57.0    53.0    58.8    57.9    60.4    56.1    58.7    58.3
   (€0.01

   per pound)
 Intermediates
 and Derivatives
  Volumes
  (million
  pounds)
   Propylene
   oxide and       798     737     721     684     2,940   774     743     762     663     2,942
   derivatives
   Ethylene oxide
   and             288     277     281     254     1,100   312     275     311     260     1,158
   derivatives
   Styrene         852     817     714     682     3,065   704     678     798     794     2,974
   monomer
   Acetyls         439     417     411     370     1,637   489     444     499     404     1,836
   TBA             485     459     433     418     1,795   462     448     441     399     1,750
   Intermediates
  Volumes
  (million
  gallons)
   MTBE/ETBE       191     195     227     205     818     205     189     256     199     849
  Benchmark
  Market Margins
   MTBE -
   Northwest       58.9    92.7    94.1    87.0    83.1    125.1   122.0   149.9   76.3    118.2
   Europe (cents
   per gallon)
 Refining
  Volumes
  (thousands of
  barrels per
  day)
   Heavy crude
   oil processing  258     263     269     262     263     259     267     240     255     255
   rate
  Benchmark
  Market Margins
   Light crude     6.00    10.28   9.54    5.26    7.80    9.34    14.04   14.71   7.91    11.50
   oil - 2-1-1
   Light crude
   oil - Maya      17.87   15.50   13.99   7.45    13.76   10.81   9.12    11.94   16.45   12.05
   differential
Source: IHS, Bloomberg, LyondellBasell Industries
Note - Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect
discounted prices.

Table 11 - Unaudited Income Statement Information
                  2011                                               2012
 (Millions of     Q1        Q2        Q3        Q4        YTD        Q1        Q2        Q3        Q4        YTD
 U.S. dollars)
 Sales and other
 operating
                  $ 11,380  $ 13,306  $ 12,516  $ 10,981  $ 48,183   $ 11,734  $ 11,248  $ 11,273  $ 11,097  $ 45,352
 revenues
 Cost of sales      10,037    11,704    10,734    10,257    42,732     10,532    9,561     9,670     9,832     39,595
 Selling, general
 and

 administrative     215       236       236       231       918        223       201       236       249       909
 expenses
 Research and
 development
  expenses          33        56        53        54        196        39        37        39        57        172
  Operating         1,095     1,310     1,493     439       4,337      940       1,449     1,328     959       4,676
  income
 Income from
 equity             58        73        52        33        216        46        27        32        38        143
 investments
 Interest           (156)     (163)     (146)     (542)     (1,007)    (95)      (409)     (67)      (69)      (640)
 expense, net
 Other income       (50)      47        19        14        30         (1)       8         (7)       2         2
 (expense), net
  Income (loss)
  before income
  taxes and
  reorganization    947       1,267     1,418     (56)      3,576      890       1,075     1,286     930       4,181
  items
 Reorganization     (2)       (28)      - -       (15)      (45)       5         (1)       - -       - -       4
 items
  Income (loss)     945       1,239     1,418     (71)      3,531      895       1,074     1,286     930       4,185
  before taxes
 Provision for
 (benefit from)
                    263       388       506       (98)      1,059      301       306       435       285       1,327
 income taxes
 Income from
 continuing
                    682       851       912       27        2,472      594       768       851       645       2,858
 operations
 Income (loss)
 from
 discontinued
 operations, net    (22)      (48)      (17)      (245)     (332)      5         - -       (7)       (22)      (24)
 of tax
 Net income         660       803       895       (218)     2,140      599       768       844       623       2,834
 (loss)
 Net loss
 attributable to
  non-controlling   3         1         - -       3         7          1         2         2         9         14
  interests
 Net income
 (loss)
 attributable
  to the Company
                  $ 663     $ 804     $ 895     $ (215)   $ 2,147    $ 600     $ 770     $ 846     $ 632     $ 2,848
  shareholders

Table 12 - Unaudited Cash Flow Information
            2011                                             2012
 (Millions
 of U.S.    Q1       Q2       Q3       Q4         YTD        Q1       Q2       Q3       Q4         YTD
 dollars)
 Net cash
 provided
 by

 operating  $ 221    $ 1,023  $ 1,528  $ 88       $ 2,860    $ 913    $ 504    $ 2,042  $ 1,328    $ 4,787
 activities
 Net cash
 used in

 investing    (216)    (435)    (320)    (50)       (1,021)    (185)    (245)    (266)    (317)      (1,013)
 activities
 Net cash
 provided
 by (used
 in)
              28       (324)    (115)    (4,544)    (4,955)    (140)    55       (234)    (1,826)    (2,145)
 financing
 activities

Table 13 - Unaudited Balance Sheet Information
                 March     June 30,  September  December  March     June 30,  September  December
                 31,                 30,        31,       31,                 30,        31,
 (Millions of    2011      2011      2011       2011      2012      2012      2012       2012
 U.S. dollars)
 Cash and cash   $ 4,383   $ 4,687   $  5,609   $ 1,065   $ 1,670   $ 1,950   $  3,527   $ 2,732
 equivalents
 Restricted cash   - -       250        292       53        9         14         19        5
 Accounts          4,764     4,901      4,038     3,778     4,209     3,888      4,083     3,904
 receivable, net
 Inventories       5,726     5,577      5,682     5,499     5,208     5,759      5,234     5,075
 Prepaid
 expenses and
 other
                   1,100     1,098      1,097     1,040     1,002     755        532       570
 current assets
   Total current   15,973    16,513     16,718    11,435    12,098    12,366     13,395    12,286
   assets
 Property, plant
 and equipment,    7,440     7,569      7,363     7,333     7,426     7,237      7,412     7,696
 net
 Investments and
 long-term

 receivables:
  Investment in
  PO joint         444       436        422       412       415       411        405       397
  ventures
  Equity           1,586     1,654      1,594     1,559     1,605     1,521      1,581     1,583
  investments
  Other
  investments
  and

  long-term        80        82         71        72        76        70         361       383
  receivables
 Goodwill          615       621        598       585       595       576        585       591
 Intangible        1,344     1,310      1,237     1,177     1,149     1,103      1,073     1,038
 assets, net
 Other assets,     274       290        264       266       245       261        292       246
 net
   Total assets  $ 27,756  $ 28,475  $  28,267  $ 22,839  $ 23,609  $ 23,545  $  25,104  $ 24,220
 Current
 maturities of   $ 253     $ 2       $  2       $ 4       $ - -     $ - -     $  - -     $ 1
 long-term debt
 Short-term debt   51        50         49        48        42        48         47        95
 Accounts          4,099     3,999      3,307     3,414     3,545     3,004      3,297     3,285
 payable
 Accrued           1,711     1,613      1,505     1,242     1,049     915        1,177     1,157
 liabilities
 Deferred income   321       315        315       310       310       277        304       558
 taxes
   Total current   6,435     5,979      5,178     5,018     4,946     4,244      4,825     5,096
   liabilities
 Long-term debt    5,805     5,813      5,782     3,980     3,984     4,305      4,305     4,304
 Other             2,043     2,110      2,021     2,277     2,281     2,208      2,153     2,327
 liabilities
 Deferred income   760       947        1,204     917       1,035     1,245      1,460     1,314
 taxes
 Stockholders'     12,671    13,579     14,025    10,593    11,310    11,492     12,312    11,139
 equity
 Non-controlling   42        47         57        54        53        51         49        40
 interests
   Total
   liabilities
   and

   stockholders' $ 27,756  $ 28,475  $  28,267  $ 22,839  $ 23,609  $ 23,545  $  25,104  $ 24,220
   equity

SOURCE LyondellBasell Industries

Website: http://www.lyondellbasell.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement