LyondellBasell Industries N.V.
Company Summary
Description
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 57 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. A pioneer and top global producer in propylene oxide and derivatives, building block chemicals for which we are a global production leader. We are the world's top producer of advanced polyolefins, polypropylene and polyethylene resins with leading products and technologies. We produce petroleum products and gasoline blending components, including biofuels for a cleaner global environment. We are a global technology leader delivering state-of-the-art processes, catalysts and services to create solutions for customers.Website
https://www.lyondellbasell.com/Financial Data:
NYSE:LYB from Google FinanceTickers:
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LYB - New York Stock Exchange
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Recent news
- 12/11/2023 - LyondellBasell to Sell... (subscriber access)
- 5/31/2023 - LyondellBasell Delays... (subscriber access)
- 3/15/2023 - LyondellBasell Launches... (subscriber access)
- 2/3/2023 - LyondellBasell Signs... (subscriber access)
- 12/19/2022 - LyondellBasell Announces... (subscriber access)
Investor Presentations
- Third Quarter 2017 Earnings
- 2Q17 Earnings Presentation (subscriber access)
- 2Q16 Investor Presentation (subscriber access)
Company Transactions
Date: 12/31/2020
Type: Joint Venture
SELLERS:
Sasol Ltd
DETAILS:
COST: 2 $B
NOTES:
LyondellBasell & Sasol announced the formation of the 50/50 Louisiana Integrated PolyEthylene JV LLC, for which Lyondell will pay $2 billion. The JV will operate and own "Sasol's 1.5 MM ton ethane cracker, 0.9 MM ton low and linear-low density polyethylene plants and associated infrastructure."
LyondellBasell & Sasol announced the formation of the 50/50 Louisiana Integrated PolyEthylene JV LLC, for which Lyondell will pay $2 billion. The JV will operate and own "Sasol's 1.5 MM ton ethane cracker, 0.9 MM ton low and linear-low density polyethylene plants and associated infrastructure."
REGIONS:
Lake Charles
Date: 9/30/2018
Type: Acquisition
REGIONS:
International
News & Press Releases
Criterion News
- 12/11/2023 - LyondellBasell to Sell... (subscriber access)
- 5/31/2023 - LyondellBasell Delays... (subscriber access)
- 3/15/2023 - LyondellBasell Launches... (subscriber access)
- 2/3/2023 - LyondellBasell Signs... (subscriber access)
- 12/19/2022 - LyondellBasell Announces... (subscriber access)
- 11/18/2022 - LyondellBasell Announces... (subscriber access)
- 6/30/2022 - LyondellBasell Signs 2... (subscriber access)
- 6/7/2022 - LyondellBasell Would... (subscriber access)
- 12/3/2021 - LyondellBasell Prices $1... (subscriber access)
- 9/30/2021 - LyondellBasell Sets Net... (subscriber access)
- 9/20/2021 - Exxon's Large Scale Push... (subscriber access)
- 9/9/2021 - LyondellBasell... (subscriber access)
- 8/13/2021 - LyondellBasell Joins... (subscriber access)
- 6/10/2021 - LyondellBasell Starts Up... (subscriber access)
- 2/16/2021 - Reuters - Multiple Gulf... (subscriber access)
- 1/27/2021 - LyondellBasell & Sinopec... (subscriber access)
- 12/2/2020 - LyondellBasell & Sasol... (subscriber access)
- 10/7/2020 - LyondellBasell Prices... (subscriber access)
- 10/2/2020 - LyondellBasell... (subscriber access)
- 4/16/2020 - LyondellBasell Price... (subscriber access)
- 3/31/2020 - LyondellBasell Slowing... (subscriber access)
- 3/20/2020 - US Refiners Send Home... (subscriber access)
- 9/26/2019 - Enterprise to Construct... (subscriber access)
- 8/23/2018 - LyondellBasell Begins... (subscriber access)
- 6/15/2018 - LyondellBasell &... (subscriber access)
- 6/1/2018 - LyondellBasell... (subscriber access)
- 4/10/2018 - Air Liquide Signs... (subscriber access)
- 3/21/2018 - LyondellBasell Receives... (subscriber access)
- 2/15/2018 - LyondellBasell Acquiring... (subscriber access)
- 10/27/2017 - LyondellBasell Reports Refining Earnings of $58 Million in Third Quarter of 2017
Press Releases
- taking action to moderate capital expenditures, prioritize liquidity and maximize free cash flow amid challenging economic conditions;
- advancing its strategy in Asia by launching new joint ventures in the growing Chinese market;
- starting up its next generation Hyperzone high-density polyethylene plant in Houston, Texas and establishing a new manufacturing joint venture in Louisiana.
- announcing its goal to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030;
- expanding the capacity of its European plastics recycling joint venture by over 20,000 tons per year;
- successfully starting-up its proprietary MoReTec advanced recycling pilot plant in Ferrara, Italy. LyondellBasell's MoReTec technology aims to return post-consumer plastic waste to its molecular form for use as feedstock in new plastic materials.
- joining the United Nations Global Compact, the world's largest corporate sustainability initiative; and,
- receiving the American Chemistry Council's highest distinction, the Responsible Care® Company of the Year Award, which recognizes exceptional leadership in the area of health, safety and environment.
- Innovation
- People Management
- Use of Corporate Assets
- Social Responsibility
- Quality of Management
- Financial Soundness
- Long-Term Investment Value
- Quality of Products / Services
- Global Competitiveness
- Net Income: $1.4 billion, $1.9 billion excluding LCM and Impairment1
- Diluted earnings per share: $4.24 per share, $5.61 per share excluding LCM and Impairment
- EBITDA: $3.3 billion, $3.9 billion excluding LCM and Impairment
- Expanded polyethylene capacity with new 500 kt per year Hyperzone plant in Texas
- New joint ventures in China and Louisiana; both accretive to earnings in the fourth quarter
- Expanded circular polymers joint venture capacity by 20 kt in Belgium
- 88% conversion of EBITDA (excluding LCM and Impairment) to cash from operating activities
- Paid $4.20 per share in dividends; our tenth consecutive year of increasing total quarterly dividends
- Net Income: $0.9 billion, $0.7 billion excluding LCM and Impairment
- Diluted earnings per share: $2.55 per share, $2.19 per share excluding LCM and Impairment
- Highest fourth quarter EBITDA since 2017: $1.4 billion, $1.3 billion excluding LCM and Impairment
- Refinanced $2.4 billion of debt to extend maturities and capture attractive interest rates
- Liquidity of $5.2 billion as of December 31, 2020
- support for the Houston Astros Foundation, which renovates youth ball parks in the greater Houston area;
- support for the Feyenoord Foundation in The Netherlands, which supports youth sports leagues and workforce readiness programs;
- support the Global Foodbanking Network and local foodbanks in the United States pandemic relief efforts;
- sponsor of MD Anderson Cancer Center's annual Boot Walk to End Cancer;
- helping to prepare a 21st century workforce through the LyondellBasell Center for Petrochemical, Energy and Technology at San Jacinto College; and,
- a founding member of the global Alliance to End Plastic Waste.
- Net Income: $0.1 billion, $0.4 billion excluding LCM and Impairment1
- Diluted earnings per share: $0.33 per share, $1.27 per share excluding LCM and Impairment
- EBITDA: $0.5 billion, $0.9 billion excluding LCM and Impairment
- Recognized $582 million non-cash impairment for the Houston refinery
- 93% conversion of EBITDA excluding LCM and Impairment to cash from operating activities
- Liquidity of $5.5 billion as of September 30, 2020
- Commenced production at our Bora integrated cracker JV in China
- Announced a new integrated polyethylene JV with Sasol in Louisiana
- Successful bond issuance of $3.9 billion
- Produce and market two million metric tons of recycled and renewable-based polymers annually, increase its investment in the recovery and recycling of plastic, and accelerate solutions to end plastic waste.
- Reduce its CO2 emissions by 15 percent per ton of product produced relative to 2015 levels by 2030.
- Advance diversity, inclusion and equity in the workplace by accelerating initiatives, such as building diversity and inclusion (D&I) into our talent programs, implementing a D&I Officer position and involving a cross-section of leaders to serve as the D&I Council.
- Join American Chemistry Council and Plastics Europe industry peers to ensure 100 percent of plastic packaging is reused, recycled or recovered by 2040.
- Developing new business models for mechanical recycling: In March 2018, LyondellBasell took 50% ownership of Quality Circular Polymers (QCP), a joint-venture with SUEZ. QCP uses a mechanical recycling process to produce premium plastic pellets from packaging waste for use in applications ranging from electrical appliances, washing detergent bottles and suitcases. The materials, marketed by LyondellBasell, can currently be found for example in Samsonite's S'Cure ECO luggage collection.
- Use of renewable feedstocks for plastics production: In April 2019, LyondellBasell produced plastics using renewable raw materials such as cooking and vegetable oil waste, for use in food packaging, toys, and furniture. These products, marketed under the Circulen and Circulen plus brands, meet all regulatory requirements for purity and offer the same high-quality properties as virgin plastics.
- Net Income: $0.3 billion, $0.2 billion excluding LCM1
- Diluted earnings per share: $0.94 per share, $0.68 per share excluding LCM
- EBITDA: $0.8 billion, $0.7 billion excluding LCM
- Generated $1.3 billion in cash from operating activities
- Issued over $2.0 billion of bonds at the lowest coupon rates in company history
- Bolstered liquidity to $5.8 billion as of June 30, 2020
- Net Income: $0.1 billion, $0.5 billion excluding LCM1
- Diluted earnings per share: $0.42 per share, $1.47 per share excluding LCM
- EBITDA: $0.6 billion, $1.1 billion excluding LCM, resilient performance in a challenging market
- Launched production at our 500,000 ton U.S. Gulf Coast high-density polyethylene plant using LyondellBasell's next-generation Hyperzone technology
- Expanding our presence in China with definitive agreements for an integrated olefins and polyolefins joint venture with Bora using LyondellBasell's polyolefin technologies
- Safely operating major facilities as an essential industry supporting society's needs
- Net Income: $0.6 billion in the fourth quarter; $3.4 billion in 2019
- Diluted earnings per share: $1.83 per share in the fourth quarter; $9.58 per share in 2019
- EBITDA: $1.2 billion in the fourth quarter; $5.7 billion in 2019
- Record quarterly and annual EBITDA for the Technology segment
- Cash from operating activities of $1.2 billion in the fourth quarter; $5.0 billion in 2019
- Returned $5.2 billion to shareholders in the form of dividends and repurchased shares in 2019
- played a leadership role in creating and launching the first global, cross-value chain Alliance to End Plastic Waste;
- collaborated with Samsonite to create a suitcase collection made of 100 percent post-consumer plastic waste provided through our Quality Circular Polymers joint venture with SUEZ;
- advanced our molecular recycling capabilities and announced the construction of a small-scale pilot plant in Ferrara, Italy to convert post-consumer plastic waste into feedstock;
- successfully produced plastics at commercial scale using sustainable bio-based raw materials, such as waste and residue oils in collaboration with Neste; and,
- announced Memoranda of Understanding to form two joint ventures in China which will produce chemicals used in a variety of applications including construction materials, packaging and furnishings.
- Innovation
- People Management
- Use of Corporate Assets
- Social Responsibility
- Quality of Management
- Financial Soundness
- Long-Term Investment Value
- Quality of Products / Services
- Global Competitiveness
- Net Income: $1.0 billion
- Diluted earnings per share: $2.85 per share
- Quarter included $85 million non-cash tax settlement that increased earnings by $0.25 per share
- EBITDA: $1.5 billion, resilient performance in a challenging market
- Cash from operating activities: $1.9 billion
- Paid dividends and repurchased 37 million shares totaling $3.6 billion
- Refinanced over $2 billion of debt at favorable rates
- Net Income: $1.0 billion
- Diluted earnings per share: $2.70 per share
- EBITDA: $1.6 billion, an increase of 11% over the first quarter 2019
- Announced new 250 kt Spherizone polypropylene project for our JV in Thailand
- Increased our quarterly dividend to $1.05 per share, the eleventh increase over the past 8 years
- Issued dividends totaling $388 million
- Launched a tender offer that led to the repurchase of 35.1 million shares in July
- Net Income: $0.8 billion
- Diluted earnings per share: $2.19 per share
- EBITDA: $1.4 billion
- Issued dividends and repurchased shares totaling $884 million; 5.6 million shares repurchased during the first quarter
- Net Income: $0.7 billion in the fourth quarter; $4.7 billion in 2018
- Diluted earnings per share: $1.79 per share in the fourth quarter; $12.01 per share in 2018
- EBITDA: $1.2 billion in the fourth quarter; $6.9 billion in 2018
- Record annual EBITDA for Intermediates & Derivatives and Technology segments
- Implemented our tenth dividend increase to $1.00 per share in 2018
- Paid dividends and repurchased 11.5 million shares totaling $1.4 billion in the fourth quarter; $3.4 billion in 2018
- Ability to attract and retain talented people
- Quality of management
- Social responsibility to the community and the environment
- Innovativeness
- Quality of products or services
- Wise use of corporate assets
- Financial soundness
- Long-term investment value
- Effectiveness in doing business globally
- Improved on its industry-leading safety record;
- acquired A. Schulman Inc., doubling its compounding business, opening new end markets and creating a platform for future growth;
- broke ground on the world's largest Propylene Oxide/Tertiary Butyl Alcohol plant in Texas, and advanced the construction of the world's first Hyperzone Polyethylene (PE) plant in Texas;
- advanced sustainability and the circular economy through a first-ever plastics recycling partnership between a waste management company (Suez) and plastics producer (LyondellBasell); and,
- played a leadership role in founding the global, cross-value chain Alliance to End Plastic Waste.
- Infrastructure development to collect and manage waste and increase recycling
- Innovation to advance and scale new technologies that make recycling and recovering plastics easier and create value from all post-use plastics
- Education and engagement of governments, businesses and communities to mobilize action
- Clean up of concentrated areas of plastic waste already in the environment, particularly the major conduits of waste, like rivers, that carry land-based plastic waste to the sea
- A first-of-its-kind plastic recycling venture: In March 2018, LyondellBasell and SUEZ entered into a joint venture to acquire Quality Circular Polymers (QCP), a premium plastics recycling company in the Netherlands. The innovative 50/50 joint venture leverages SUEZ's collection network and leading-edge technology solutions to improve the identification, separation and preparation of materials to be used as feedstock at QCP. LyondellBasell's long-standing leadership in innovative plastic production technology, vast experience in product development and deep knowledge of important end markets, such as consumer goods, are being leveraged to further grow QCP's success.
- R&D partnership on chemical recycling: In July 2018, LyondellBasell announced it signed an agreement with the Karlsruhe Institute of Technology (KIT) in Germany to advance chemical recycling of used plastics. The goal of this effort is to develop a new catalyst and process technology to decompose post-consumer plastic waste into clean feedstock for reuse in new products.
- Houston, Texas: Colleagues visited Burnett Elementary School to landscape and plant 60 trees, as well as build 150 bikes to be used as prizes for a school reading program.
- Rayong, Thailand: Colleagues rehabilitated a damaged forest and animal habitat at The Royally-Initiated Siri Charoenwat Forest Plantation Project Park, helping to advance the rapid growth of trees, mushrooms, rattan and bamboo used by wildlife and the surrounding community.
- Rotterdam, The Netherlands: Colleagues partnered with an experienced beachcombing team to remove debris from a local beach, cleaning up the area for the enjoyment of the residents of South Holland.
- São Paulo, Brazil: Colleagues held a blood drive for Banco de Sangue Paulista, a blood bank that serves the majority of the town's hospitals.
- Tuscola, Illinois: Colleagues maintained flower beds and performed various landscaping projects to improve the grounds around Tuscola Healthcare, an elderly care facility.
- Wesseling, Germany: Colleagues went to the KGS Brigidaschule to show children how to create a battery out of a lemon, teaching them about chemistry and safety.
- Diluted earnings per share: $4.22 per share
- Net Income: $1.7 billion
- EBITDA: $2.0 billion
- Record quarterly EBITDA for our Intermediates and Derivatives and Technology segments
- Quarter included $346 million non-cash tax settlement that increased earnings by $0.88 per share
- Record quarterly earnings per share after adjusting for 2Q18 tax settlement and 4Q17 tax reform benefits of $2.07 per share
- Dividends and share repurchases totaled $743 million; repurchased 3.2 million shares during the second quarter
- Advancing on multiple value-driven growth initiatives
- Net income: $1.2 billion, a 54% increase relative to 1Q17
- EBITDA: $1.9 billion, an 18% increase relative to 1Q17
- Record quarterly EBITDA for our Intermediates and Derivatives segment
- Diluted earnings per share: $3.11 per share
- Dividend increased by 11% to $1.00 per share
- Dividends and share repurchases totaled $514 million; repurchased 1.3 million shares during the first quarter
- Career and Recovery Resources, Inc. – With a mission to help people overcome barriers, this organization works to prevent veteran homelessness, provide career planning for at-risk youth, place senior citizens in the job market, and provide job-readiness training for the deaf and hard of hearing.
- Fort Bend Seniors – As one of the oldest non-profit organizations in Fort Bend County, Fort Bend Seniors is committed to helping seniors remain independent by enhancing their quality of life through comprehensive services and programs such as Meals on Wheels, transportation, case management, health screenings, and recreational activities.
- Target Hunger – This grassroots, community based program fights hunger in Houston's inner city neighborhoods through food pantries, a network of volunteers who help deliver groceries to seniors citizens, and community gardens that give volunteers and clients the opportunity to grow nutritious produce to benefit themselves, their neighbors, and Target Hunger food pantries.
- Wesley Community Center – Founded in 1904 to serve widows and orphans living in poverty, this agency now provides an array of programs to strengthen families and create opportunities for economic stability including childhood education, workforce programs, and affordable transportation, housing, and food assistance.
- Creates an industry-leading compounding business with combined revenue of $4.6 billion1 and adjusted EBITDA of $446 million2 over the last 12 months
- Expects to capture $150 million in run-rate cost synergies within two years, while being accretive to earnings within the first full year following the close, creating significant value for shareholders
- Doubles the size of LyondellBasell's existing compounding business and establishes a platform for future growth with reach into additional high-growth markets
- Complementary strengths and capabilities will provide customers with a full range of innovative products and end-to-end solutions
- Strong Earnings
- Income from continuing operations: $4.9 billion
- Diluted earnings per share: $12.28 per share
- U.S. tax reform provided an $819 million one-time, non-cash benefit in the fourth quarter
- EBITDA: $7.1 billion
- Strong Operations and Advancement of the Growth Program
- Strong volume growth with a 13% increase in global ethylene production and a 17% improvement in refining crude volumes over prior year
- Began construction of our 1.1 billion pound Hyperzone HDPE plant in La Porte, Texas
- Reached final investment decision and began site preparation for our new PO/TBA plant in Texas
- Opened a new polypropylene compounds plant in China and entered into a premium polymer recycling joint venture with SUEZ
- Strong Cash Flow and Return to Shareholders
- Full year cash generation from operations totaled $5.2 billion for a free cash flow yield of 8.4%
- Implemented our ninth dividend increase to $0.90 per share in the second quarter
- Dividends totaled $1.4 billion; $1.5 billion invested in capital expenditures
- Repurchased 10 million shares, returning $866 million to shareholders
- Senior unsecured debt ratings raised to BBB+ by S&P Global
- Income from continuing operations: $1.9 billion
- Diluted earnings per share: $4.80 per share, including benefits of U.S. tax reform
- EBITDA: $1.7 billion
- Ability to attract and retain talented people
- Quality of management
- Social responsibility to the community and the environment
- Innovativeness
- Quality of products or services
- Wise use of corporate assets
- Financial soundness
- Long-term investment value
- Effectiveness in doing business globally
- established a reputation as one of the safest, most reliable operators in the industry;
- more than doubled in enterprise value;
- increased its dividend nine times since 2011 and returned nearly $28 billion to shareholders in dividends and share buybacks;
- been granted more than 5,000 patents worldwide;
- invested billions to expand the capacity of plants across the globe, including a 20 percent increase in U.S. ethylene capacity since 2012;
- announced new innovations and growth projects, including the construction of the new Hyperzone Polyethylene (PE) plant and the world's largest Propylene Oxide/Tertiary Butyl Alcohol plant in Texas; and,
- expanded into new markets, including India and China; and, new product lines, including recycled plastics.
- Income from continuing operations: $1.1 billion
- EBITDA: $1.8 billion
- Quarterly diluted earnings per share: $2.67 per share
- Impacts from Hurricane Harvey partially offset by margin improvements
- Dividends and share repurchases totaled $652 million; repurchased 3.1 million shares during the third quarter
- Senior unsecured debt raised to BBB+ by S&P Global Ratings
- Vehicle weight can be reduced by high-flow materials, allowing a reduction in wall thickness without compromising mechanical properties;
- Components displaying a visual metallic effect can be molded-in-color for paint-free exterior applications;
- Soft touch polypropylene compounds provide a pleasant experience in door panels, trims and handles for interior applications;
- Materials containing low volatile organic compounds (VOCs) and low odor for use in car interior components that meet strict environmental standards and protect the health of the passengers; and,
- Low density talc-filled compounds that provide a lightweight alternative for both interior and exterior applications.
- Houston, Texas:
Following the devastation of Hurricane Harvey, the company's operational headquarters in Houston chose to shift their project to help the Houston Food Bank, an organization that will play an integral part of the city's recovery following the massive storm. Volunteers produced the equivalent of a meal a minute while sorting, inspecting, processing and packing food. The Houston Food Bank is a member of Feeding America, the nation's largest non-governmental, domestic hunger relief organization, whose goal is to make food accessible to hungry people in their greatest times of need.
- Pindamonhangaba, Brazil:
Volunteers organized a blood drive that will help maintain the blood supplies in the hospitals of Vale do Paraíba. The company's manufacturing site partnered with the University of São Paulo's Taubaté' Hemonúcleo, an organization dedicated to promoting the importance of blood donations in the region.
- Rayong, Thailand:
Volunteers hosted a day of games and activities designed to cultivate children's critical thinking skills at the Pattaya Orphanage. Established nearly 40 years ago with a policy of turning no child away, the group focuses on promoting the well-being and development of children through health and education programs.
- Rotterdam, The Netherlands:
Volunteers participated in landscaping projects that rejuvenated and refurbished Kinderboederji de Kraal's Petting Zoo. The petting zoo is home to donkeys, llamas and horses, and provides a place for children to experience their first animal encounters in a safe, educational setting. - Income from continuing operations: $1.1 billion
- EBITDA: $2.0 billion
- Record quarterly diluted earnings per share: $2.82 per share
- Record quarterly EBITDA for Olefins and Polyolefins - Europe, Asia, and International: $699 million
- Strong volume growth with a 27% increase in global ethylene production and a 45% improvement in refining crude volumes over prior year
- Dividends and share repurchases totaled $0.8 billion; repurchased 5.4 million shares during the second quarter
- Increased second quarter 2017 dividend by 6% to $0.90 per share
- Income from continuing operations: $0.8 billion
- EBITDA: $1.6 billion
- Diluted earnings per share: $2.00 per share
- Issued $1 billion of 10-year bonds with a coupon rate of 3.5% due 2027; redeemed $1 billion of outstanding 5.0% bonds due in 2019; refinancing costs reduced earnings by $0.26 per share
- Share repurchases and dividends totalled $0.5 billion; repurchased 1.5 million shares during the first quarter
- Strong Earnings
- Income from continuing operations: $3.8 billion ($3.9 billion excluding LCM1)
- Diluted earnings per share: $9.15 per share ($9.20 per share excluding LCM)
- EBITDA: $6.6 billion ($6.6 billion excluding LCM)
- Advanced the Growth Program
- Completed an 800 million pound ethylene expansion at Corpus Christi, Texas, the final in a series of planned expansions to increase our U.S. ethylene capacity by 20%
- Began site preparations for a new 1.1 billion pound polyethylene plant in La Porte, Texas
- Strong Cash Flow and Share Repurchases
- Full year cash generation from operations totaled $5.6 billion
- Share repurchases and dividends totaled $4.3 billion; $2.2 billion in capital expenditures
- Repurchased 37 million shares or approximately 8% of the shares outstanding on January 1, 2016
- Income from continuing operations: $770 million ($788 million excluding LCM)
- Diluted earnings per share: $1.89 per share ($1.94 per share excluding LCM)
- EBITDA: $1.4 billion ($1.4 billion excluding LCM)
- Share repurchases and dividends totaled $783 million; repurchased 5.2 million shares during the fourth quarter or approximately 1.3% of the shares outstanding on October 1, 2016
- 2012
- 2013
- 2014
- 2015
- 2016
- Income from continuing operations: $1.0 billion
- Diluted earnings per share: $2.31 per share
- EBITDA: $1.6 billion
- Share repurchases and dividends totaled $1.2 billion; repurchased 10.3 million shares during the third quarter, approximately 2% of the outstanding shares
- Income from continuing operations: $1.1 billion ($1.0 billion excluding LCM1)
- Diluted earnings per share: $2.56 per share ($2.45 per share excluding LCM)
- EBITDA: $1.8 billion ($1.7 billion excluding LCM)
- Share repurchases and dividends totaled $1.1 billion; repurchased 8.8 million shares during the second quarter, approximately 2% of the outstanding shares
- Authorized a fourth share repurchase program for up to an additional 10% of shares over the next 18 months
- Increased second quarter 2016 interim dividend by 9% to $0.85 per share
- Income from continuing operations: $1.0 billion ($1.1 billion excluding LCM1)
- Diluted earnings per share: $2.37 per share ($2.48 per share excluding LCM)
- EBITDA: $1.8 billion ($1.9 billion excluding LCM)
- Share repurchases and dividends totaled $1.3 billion; repurchased 12.3 million shares during the first quarter, approximately 3% of the outstanding shares
- Sold Argentine subsidiary Petroken for $184 million for an after tax gain of $78 million
- Issued €750 million of six-year bonds with coupon rate of 1.875%
- Record Earnings
- Advanced the Growth Program
- Strong Cash Flow and Share Repurchases
- Income from continuing operations: $797 million ($982 million excluding LCM)
- Diluted Earnings per share: $1.78 per share ($2.20 per share excluding LCM)
- EBITDA: $1.4 billion ($1.7 billion excluding LCM)
- Share repurchases and dividends totaled $1.6 billion; repurchased 12.7 million shares during the fourth quarter or approximately 3% of the shares outstanding on October 1, 2015
LyondellBasell Named to FORTUNE Magazine's "World's Most Admired Companies" List for the Fourth Year in a Row
Source: PR Newswire
Orignial Article: https://contentapi.cision...
HOUSTON, Feb. 1, 2021 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has been named to FORTUNE Magazine's 2021 list of the "World's Most Admired Companies" for the fourth year in a row. The FORTUNE list recognizes companies with the strongest reputations across a variety of industry sectors.
"LyondellBasell employees around the world make this type of recognition possible. Being named to this prestigious list is a direct reflection of the quality of our team and their relentless focus on operating safely, responsibly and delivering on our commitments," said Bob Patel, CEO of LyondellBasell. "While 2020 challenged us in ways we did not expect, our team continued to deliver for our stakeholders."
In 2020, LyondellBasell advanced its business objectives by:
In addition, the company meaningfully advanced its sustainability approach by:
According to Korn Ferry who administers the survey for FORTUNE Magazine, the "World's Most Admired Companies" study surveys top executives and directors from eligible companies, along with financial analysts, to evaluate companies in the categories of:
More information on FORTUNE's "World's Most Admired Companies" list can be found here.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2021, LyondellBasell was named to FORTUNE Magazine's list of the "World's Most Admired Companies" for the fourth consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
2/1/20211/29/2021 - LyondellBasell Reports 2020 Earnings
LyondellBasell Reports 2020 Earnings
Source: PR Newswire
Orignial Article: https://contentapi.cision...
HOUSTON and LONDON, Jan. 29, 2021 /PRNewswire/ --
Full Year 2020 Highlights
Resilient Earnings
Advanced Growth Initiatives
Strong Cash Conversion and Dividends
Fourth Quarter 2020 Highlights
Comparisons with the prior quarter, fourth quarter 2019 and year ended 2019 are available in the following table:
Table 1 - Earnings Summary | |||||
Millions of U.S. dollars (except share data) | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Sales and other operating revenues | $7,937 | $6,776 | $8,179 | $27,753 | $34,727 |
Net income | 855 | 114 | 612 | 1,427 | 3,397 |
Diluted earnings per share | 2.55 | 0.33 | 1.83 | 4.24 | 9.58 |
Weighted average diluted share count | 334 | 334 | 334 | 334 | 353 |
EBITDA (a) | 1,413 | 446 | 1,172 | 3,285 | 5,692 |
Excluding LCM and Impairment1 | |||||
Net income | $736 | $427 | $637 | $1,884 | $3,422 |
Diluted earnings per share | 2.19 | 1.27 | 1.90 | 5.61 | 9.65 |
LCM (benefits) charges, pre-tax | (147) | (160) | 33 | 16 | 33 |
Impairment, pre-tax | — | 582 | — | 582 | — |
EBITDA | 1,266 | 888 | 1,205 | 3,883 | 5,725 |
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of net income to EBITDA, including and excluding LCM and impairment. | ||||
1 LCM stands for "lower of cost or market." Impairment is related to the Refining segment. An explanation of LCM and why we have excluded LCM and impairment from certain financial information can be found under "Information Related to Financial Measures." | ||||
LyondellBasell Industries (NYSE: LYB) today announced net income for the fourth quarter 2020 of $0.9 billion, or $2.55 per share. The quarter included a $147 million non-cash, lower of cost or market (LCM) inventory valuation benefit that increased net income by $119 million or $0.36 per share. Fourth quarter EBITDA was $1.4 billion, or $1.3 billion excluding LCM.
Full year 2020 net income was $1.4 billion, or $4.24 per share. The full year results included a $582 million non-cash impairment charge related to the Houston refinery and $16 million of non-cash, LCM inventory valuation charges. LCM and Impairment charges reduced full year 2020 net income by $457 million, or $1.37 per share. Full year 2020 EBITDA was $3.3 billion, or $3.9 billion excluding LCM and impairment. During 2020, costs for integration and restructuring impacted net income by $33 million or $0.10 per share.
"During 2020, LyondellBasell demonstrated financial and operational resilience against an extremely challenging backdrop of a global pandemic, the associated recession, volatile oil prices and significant capacity additions in our industry. We moved swiftly to create a safe work environment for our employees and continuously supply customers with essential products throughout the pandemic. Our strengths in operational excellence, cost management and capital discipline served us well as we quickly adapted to dynamic conditions by aggressively managing inventories, minimizing working capital and bolstering liquidity by rapidly accessing capital markets and efficiently generating cash. LyondellBasell honored commitments to investors by both maintaining an investment grade credit rating and continuing to fund dividends and capital investments with cash from operations. Taken together, these actions enabled us to successfully navigate a challenging year and remain focused on our strategy to build a stronger company for our stakeholders," said Bob Patel, LyondellBasell CEO.
"During the fourth quarter, strong and persistent consumer-driven demand, industry supply constraints and continued recovery in durable goods markets reduced the impact of typical end-of-year slowdowns for our businesses. During this period, we operated well and met robust demand for polyolefins used in consumer packaging and healthcare applications. Margins improved for Olefins and Polyolefins, Propylene Oxide & Derivatives and Intermediate Chemicals businesses driven by higher demand and tight markets. Rebounding automotive manufacturing drove increased volumes for our Advanced Polymer Solutions businesses. The Refining and Oxyfuels & Related Products businesses continued to face headwinds from low global mobility resulting in stagnant demand for transportation fuels."
"LyondellBasell nimbly managed the challenges of 2020 and our team advanced on our goal to create a stronger company for the longer term. We expanded our participation in the rapidly growing Chinese market by forming a new integrated olefin and polyolefin joint venture with Bora. In December, we expanded our manufacturing footprint on the U.S. Gulf Coast through the formation of an integrated polyethylene joint venture in Louisiana with Sasol. Both joint ventures provided immediate benefits to our fourth quarter profitability without the project completion risks associated with the construction of greenfield projects."
"Our company remained focused on the substantive and ambitious goals outlined in our most recent Sustainability Report to develop circular and sustainable business models for our products. We took action to advance our goals of annually producing and marketing two million tons of recycled and renewable-based polymers, including the start-up of our MoReTec molecular recycling pilot plant in Ferrara, Italy and the expansion of our mechanical recycling capacity in Europe through our Quality Circular Polymers joint venture with SUEZ. We are dedicated to disciplined and sustainable growth that ensures our chemical and polymer products will continue to provide value for society," Patel said.
OUTLOOK
"Improving trends seen in the closing weeks of December are continuing into the first quarter of 2021 and providing a bridge to the seasonal upticks typically seen in our businesses during the second and third quarters. Elevated export demand to China and Latin America combined with tight markets are supporting strong margins for our Olefins and Polyolefins businesses. Increased demand from automotive and construction markets has pushed the January order book for our Advanced Polymer Solutions segment to higher levels than the fourth quarter 2020 average. With wider deployment of coronavirus vaccines, we anticipate that increasing mobility and transportation fuel demand could provide significant upside for our oxyfuels and refining businesses during the latter half of this year."
"LyondellBasell's measured approach to advancing value-driven growth is delivering results. The Advanced Polymer Solutions platform is serving broader markets and beginning to capture the benefits from more than $200 million in synergies. Our next-generation Hyperzone high-density polyethylene technology expanded our U.S. capacity and is establishing new benchmarks for differentiated product performance. We formed two integrated cracker joint ventures that are quickly delivering accretive returns from high-quality assets benefiting from advantaged feedstocks and growing markets. In January 2021, we continued on this strategy to form a new joint venture to build our second world-scale propylene oxide and styrene monomer unit in China."
"In the near term, the top priority for our balance sheet is debt reduction. In January, we repaid $500 million of debt outstanding with more deleveraging planned for the remainder of 2021. We are well-poised to harvest profitability from our disciplined growth initiatives that should increase free cash flow and allow us to further strengthen our investment grade balance sheet," said Patel.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology.
Comments and analysis represent underlying business activity and are exclusive of LCM and impairment.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $516 | $309 | $365 | $1,170 | $1,777 |
EBITDA | 722 | 474 | 498 | 1,810 | 2,302 |
LCM (benefits) charges, pre-tax | — | (70) | 25 | 3 | 25 |
EBITDA excluding LCM | 722 | 404 | 523 | 1,813 | 2,327 |
Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $318 million versus the third quarter 2020, excluding an unfavorable $70 million variance due to LCM inventory benefits in the third quarter. Fourth quarter 2020 results benefited approximately $70 million due to last-in, first out (LIFO) inventory valuation changes relative to the prior period. Olefins results increased $185 million with higher margins and volumes. Margins increased primarily due an increase in the prices of ethylene and propylene, while volumes increased due to higher demand. Polyolefin results increased about $65 million driven by improved margins with a spread increase of polyethylene over ethylene and of polypropylene over propylene.
Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $199 million versus the fourth quarter 2019, excluding a favorable $25 million variance due to LCM inventory charges in the fourth quarter 2019. Fourth quarter 2020 results decreased approximately $15 million due to LIFO inventory valuation changes relative to the prior period. Olefins results increased approximately $65 million due to an increase in ethylene volumes from increased demand partially offset by lower margins. Polyolefin results increased $140 million driven by increased demand. Margin improved due to an increase in the price of polyethylene and an increase in polyolefin volumes.
Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $514 million versus 2019, excluding a favorable $22 million variance due to LCM inventory charges. 2020 results decreased approximately $75 million due to LIFO inventory changes relative to the prior period. Olefins results decreased about $220 million versus 2019 with a significant decrease in margin partially offset by an increase in volume. Margins decreased driven by lower co-product prices outpacing reduced feedstock costs. Volumes increased driven by strong demand. Polyolefin results decreased approximately $215 million driven by a spread decrease in polyethylene and polypropylene over monomer partially offset by an increase in polyethylene volume. Volume increased due to increased demand and start-up of the Hyperzone plant.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $144 | $52 | $59 | $412 | $673 |
EBITDA | 304 | 148 | 144 | 826 | 1,062 |
LCM (benefits) charges, pre-tax | (53) | (17) | — | — | — |
EBITDA excluding LCM | 251 | 131 | 144 | 826 | 1,062 |
Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $120 million versus the third quarter 2020, excluding a favorable $36 million variance due to LCM inventory benefits. Fourth quarter 2020 results benefited approximately $40 million due to LIFO inventory valuation changes relative to the prior period. Olefins results were relatively unchanged compared to the third quarter 2020. Margin declined due to increased maintenance expense offset by increased ethylene volume. Combined polyolefins results increased $20 million driven by higher polyolefin volumes due to our new Bora joint venture production coupled with higher demand. Joint venture equity income increased approximately $60 million with over half of the increase attributable to our Bora joint venture.
Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $107 million versus the fourth quarter 2019, excluding a favorable $53 million variance due to LCM inventory benefits in the fourth quarter 2020. Compared with the prior period, olefins results increased $25 million primarily driven by increased margins and volumes. Margins were higher driven by lower feedstock prices partially offset by lower ethylene prices. Combined polyolefins results increased more than $20 million largely due to higher polyolefin volumes and polyethylene margin partially offset by a decrease in polypropylene spread. Joint venture equity income increased $65 million driven by Bora.
Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $236 million versus 2019. Full year 2020 results include the impact of approximately $30 million due to LIFO inventory changes and a benefit of approximately $25 million due to an increase in the euro versus the U.S. dollar exchange rate relative to 2019. Compared with the prior period, olefins results decreased $140 million due to lower margins driven by declining ethylene prices outpacing lower feedstock costs. Combined polyolefins results decreased about $115 million due to lower margins partially offset by increased polyolefin volumes from the start-up of Bora. Polyolefin margins declined driven by spread decreases in polyethylene and polypropylene over monomer. Joint venture equity income increased approximately $15 million driven by the start-up of Bora partially offset by lower polyethylene margins.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $166 | $180 | $249 | $501 | $1,249 |
EBITDA | 262 | 267 | 329 | 833 | 1,557 |
LCM (benefits) charges, pre-tax | (66) | (22) | — | 10 | — |
EBITDA excluding LCM | 196 | 245 | 329 | 843 | 1,557 |
Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA decreased $49 million versus the third quarter 2020, excluding a favorable $44 million variance due to LCM inventory benefits. Results for the fourth quarter decreased approximately $70 million due to LIFO inventory changes relative to the prior quarter. Compared to the prior period, Propylene Oxide & Derivatives results increased more than $25 million driven by higher margins due to strong Asia demand and market tightness. Intermediate Chemicals results were relatively unchanged. Oxyfuels & Related Products results decreased approximately $10 million driven by lower margins partially offset by an increase in volumes. Margins declined due to higher butane feedstock prices and further weakening of gasoline spreads.
Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $133 million versus the fourth quarter 2019. Results for the fourth quarter decreased approximately $55 million due to LIFO inventory changes relative to the prior quarter. Propylene Oxide & Derivatives results increased approximately $40 million with improved margins and higher volumes due to strong Asia demand and market tightness. Intermediate Chemicals results increased about $50 million driven by improved volumes and higher margins in most products, primarily styrene. Volumes increased due to higher demand for most products and absence of planned maintenance in the fourth quarter 2019. Oxyfuels & Related Products results decreased $175 million driven by lower margins due to reduced gasoline prices and lower octane blend premiums.
Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $714 million versus 2019, excluding an unfavorable $10 million variance due to LCM inventory charges in 2020. Results for 2020 decreased approximately $40 million due to LIFO inventory changes relative to the prior year. Propylene Oxide & Derivatives results decreased $15 million due to lower margins partially offset by higher volumes due to strong Asia demand. Intermediate Chemicals results decreased about $185 million driven by margin declines in most businesses. Oxyfuels & Related Products decreased approximately $465 million with a significant decrease in margins driven by reduced gasoline prices and lower octane blend premiums.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1.
Table 5 - Advanced Polymer Solutions Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $123 | $116 | $13 | $226 | $290 |
EBITDA | 152 | 157 | 54 | 378 | 424 |
LCM (benefits) charges, pre-tax | (26) | (40) | 8 | 3 | 8 |
EBITDA excluding LCM | 126 | 117 | 62 | 381 | 432 |
Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $9 million versus the third quarter 2020, excluding an unfavorable $14 million variance due to LCM inventory benefits. Results for the fourth quarter increased approximately $15 million due to LIFO inventory changes relative to the prior quarter. Compounding & Solutions results were relatively unchanged with higher volumes due to continued automotive manufacturing recovery offset by lower margins. Advanced Polymers results were relatively unchanged.
Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $64 million versus the fourth quarter 2019, excluding a favorable $34 million variance due to LCM inventory changes. Results for the fourth quarter benefited from a variance in integration costs of $38 million and were impacted by LIFO inventory changes of approximately $10 million compared to the prior period. Compounding & Solutions results increased $40 million primarily driven by improved margins due to product mix. Advanced Polymers results were relatively unchanged.
Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $51 million versus 2019, excluding a favorable $15 million variance due to LCM inventory changes. Compared to the prior period, results benefited from a variance in integration costs of $80 million. Results for 2020 decreased approximately $25 million due to LIFO inventory changes relative to the prior year. Compounding & Solutions results decreased approximately $70 million driven by significantly lower volumes due to automotive and appliance sector shutdowns partially offset by higher margins due to product mix. Advanced Polymers results decreased about $35 million due to lower margins and volumes driven by reduced construction market demand.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income (loss) | $(93) | $(733) | $(19) | $(1,024) | $(240) |
EBITDA | (72) | (692) | 22 | (871) | (65) |
LCM (benefits) charges, pre-tax | (2) | (11) | — | — | — |
Impairment, pre-tax | — | 582 | — | 582 | — |
EBITDA excluding LCM and impairment | (74) | (121) | 22 | (289) | (65) |
Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA increased $47 million versus the third quarter 2020, excluding an unfavorable variance of $11 million due to LCM benefits and an impairment of $582 million for the Houston Refinery in the third quarter. Margins improved due to lower fixed costs and improved margin capture. A small improvement in the Maya 2-1-1 industry benchmark crack spread to $10.11 per barrel was more than offset by increased costs for renewable identification number credits (RINs). The Houston Refinery operated at 80% utilization rate or an average crude throughput of 214,000 barrels per day matching reduced demand.
Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $96 million versus the fourth quarter 2019, excluding a favorable variance of $2 million due to LCM benefits in the fourth quarter 2020. Margin declined as the Maya 2-1-1 industry benchmark decreased by $9.35 per barrel relative to same period last year. The Houston Refinery operated at 214,000 barrels per day, 53,000 barrels per day lower than prior period due to sluggish demand for refined products.
Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $224 million versus 2019, excluding an impairment of $582 million for the Houston Refinery in the third quarter 2020. Margins decreased driven by a decline in the Maya 2-1-1 industry benchmark from $17.52 per barrel to $12.63 per barrel. Crude throughput averaged 223,000 barrels per day, 40,000 barrels per day lower than prior period in response to market demand.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $35 | $101 | $132 | $287 | $374 |
EBITDA | 45 | 111 | 138 | 324 | 411 |
LCM (benefits) charges, pre-tax | — | — | — | — | — |
EBITDA excluding LCM | 45 | 111 | 138 | 324 | 411 |
Three months ended December 31, 2020 versus three months ended September 30, 2020 - EBITDA decreased $66 million versus the third quarter 2020. Compared to the prior period, results were driven by a lower number of licenses reaching revenue recognition milestones. Catalyst margins increased due to inventory mix partially offset by a decrease in volumes as customers managed inventories at year-end.
Three months ended December 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $93 million versus the fourth quarter 2019 primarily due to reduced licensing revenue.
Full year ended December 31, 2020 versus full year ended December 31, 2019 - EBITDA decreased $87 million versus 2019 driven by lower licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $274 million during the fourth quarter 2020 and $1.9 billion for the full year 2020. Our cash and liquid investment balance was $2.5 billion at December 31, 2020. There were 334 million common shares outstanding as of December 31, 2020. The company paid dividends of $1.4 billion during 2020.
Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable GAAP measure, to EBITDA are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call January 29 at 11 a.m. EST. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 1-800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 1:00 p.m. EST January 29 until February 28 at 11:59 p.m. EST. The replay dial-in numbers are 1-800-846-0305 (U.S.) and 1-402-998-0543 (international). The passcode for each is 6541.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
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 of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, 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; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession; 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; future financial and operating results; benefits and synergies of any proposed transactions; 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 to amend, extend, repay, redeem, service, and reduce 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" sections of our Form 10-K for the year ended December 31, 2019, and our Forms 10-Q for the quarters ended March 31, 2020, and September 30, 2020. 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. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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.
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, net income and diluted EPS exclusive of adjustments for lower of cost or market ("LCM") and impairment, and certain liquidity 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. 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 also present EBITDA, net income and diluted EPS exclusive of adjustments for LCM and impairment. LCM 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. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover. Property, plant and equipment are recorded at historical costs. If it is determined that an asset or asset group's undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value.
Conversion of EBITDA excluding LCM and impairment to cash from operating activities is a measure that provides an indicator of a company's operational efficiency and management and may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. For purposes of this release, conversion of EBITDA excluding LCM and impairment to cash from operating activities means cash from operating activities divided by EBITDA excluding LCM and impairment.
Free cash flow is a measure of profitability commonly used by investors to evaluate performance and may not be comparable to similarly titled measures reported by other companies due to differences in the way the measure is calculated. For the purposes of this release, free cash flow means net cash provided by operating activities minus capital expenditures.
Additionally, liquidity is a measure that provides an indicator of value to investors. For purposes of this release, liquidity includes cash and cash equivalents, restricted cash and restricted cash equivalents, short term investments, and availability under our Senior Revolving Credit Facility and our Receivables Facility.
Additional operating and financial information, including reconciliations of non-GAAP measures to the most directly comparable GAAP measure, may be found in Table 9 at the end of this release and on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | ||||||||||||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | ||||||||||||||||||||
Sales and other operating revenues: | ||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,111 | $ | 2,114 | $ | 2,137 | $ | 2,073 | $ | 8,435 | $ | 1,792 | $ | 1,433 | $ | 1,840 | $ | 2,210 | $ | 7,275 | ||||||||||
Olefins & Polyolefins - EAI | 2,535 | 2,505 | 2,309 | 2,155 | 9,504 | 2,224 | 1,702 | 1,982 | 2,459 | 8,367 | ||||||||||||||||||||
Intermediates & Derivatives | 1,894 | 2,062 | 2,046 | 1,832 | 7,834 | 1,770 | 1,157 | 1,538 | 1,804 | 6,269 | ||||||||||||||||||||
Advanced Polymer Solutions | 1,339 | 1,258 | 1,186 | 1,067 | 4,850 | 1,096 | 705 | 1,004 | 1,108 | 3,913 | ||||||||||||||||||||
Refining | 1,882 | 2,180 | 2,134 | 2,055 | 8,251 | 1,448 | 919 | 1,101 | 1,259 | 4,727 | ||||||||||||||||||||
Technology | 141 | 173 | 146 | 203 | 663 | 122 | 177 | 193 | 167 | 659 | ||||||||||||||||||||
Other/Eliminations | (1,124) | (1,244) | (1,236) | (1,206) | (4,810) | (958) | (547) | (882) | (1,070) | (3,457) | ||||||||||||||||||||
Continuing Operations | $ | 8,778 | $ | 9,048 | $ | 8,722 | $ | 8,179 | $ | 34,727 | $ | 7,494 | $ | 5,546 | $ | 6,776 | $ | 7,937 | $ | 27,753 | ||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 384 | $ | 504 | $ | 524 | $ | 365 | $ | 1,777 | $ | 238 | $ | 107 | $ | 309 | $ | 516 | $ | 1,170 | ||||||||||
Olefins & Polyolefins - EAI | 186 | 226 | 202 | 59 | 673 | 135 | 81 | 52 | 144 | 412 | ||||||||||||||||||||
Intermediates & Derivatives | 314 | 372 | 314 | 249 | 1,249 | 131 | 24 | 180 | 166 | 501 | ||||||||||||||||||||
Advanced Polymer Solutions | 119 | 91 | 67 | 13 | 290 | 70 | (83) | 116 | 123 | 226 | ||||||||||||||||||||
Refining | (59) | (110) | (52) | (19) | (240) | (314) | 116 | (733) | (93) | (1,024) | ||||||||||||||||||||
Technology | 73 | 96 | 73 | 132 | 374 | 47 | 104 | 101 | 35 | 287 | ||||||||||||||||||||
Other | — | (2) | (4) | (1) | (7) | (3) | (10) | (2) | 2 | (13) | ||||||||||||||||||||
Continuing Operations | $ | 1,017 | $ | 1,177 | $ | 1,124 | $ | 798 | $ | 4,116 | $ | 304 | $ | 339 | $ | 23 | $ | 893 | $ | 1,559 | ||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 115 | $ | 117 | $ | 118 | $ | 120 | $ | 470 | $ | 124 | $ | 133 | $ | 134 | $ | 134 | $ | 525 | ||||||||||
Olefins & Polyolefins - EAI | 53 | 52 | 51 | 52 | 208 | 53 | 53 | 55 | 53 | 214 | ||||||||||||||||||||
Intermediates & Derivatives | 72 | 74 | 75 | 74 | 295 | 70 | 74 | 79 | 82 | 305 | ||||||||||||||||||||
Advanced Polymer Solutions | 29 | 30 | 32 | 42 | 133 | 44 | 39 | 40 | 29 | 152 | ||||||||||||||||||||
Refining | 43 | 44 | 41 | 41 | 169 | 42 | 49 | 40 | 21 | 152 | ||||||||||||||||||||
Technology | 10 | 11 | 10 | 6 | 37 | 9 | 8 | 10 | 10 | 37 | ||||||||||||||||||||
Continuing Operations | $ | 322 | $ | 328 | $ | 327 | $ | 335 | $ | 1,312 | $ | 342 | $ | 356 | $ | 358 | $ | 329 | $ | 1,385 | ||||||||||
EBITDA:(a) | ||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 516 | $ | 635 | $ | 653 | $ | 498 | $ | 2,302 | $ | 366 | $ | 248 | $ | 474 | $ | 722 | $ | 1,810 | ||||||||||
Olefins & Polyolefins - EAI | 296 | 331 | 291 | 144 | 1,062 | 189 | 185 | 148 | 304 | 826 | ||||||||||||||||||||
Intermediates & Derivatives | 390 | 448 | 390 | 329 | 1,557 | 203 | 101 | 267 | 262 | 833 | ||||||||||||||||||||
Advanced Polymer Solutions | 148 | 120 | 102 | 54 | 424 | 113 | (44) | 157 | 152 | 378 | ||||||||||||||||||||
Refining | (15) | (66) | (6) | 22 | (65) | (272) | 165 | (692) | (72) | (871) | ||||||||||||||||||||
Technology | 83 | 107 | 83 | 138 | 411 | 56 | 112 | 111 | 45 | 324 | ||||||||||||||||||||
Other | 10 | 4 | — | (13) | 1 | (9) | (7) | 1 | — | (15) | ||||||||||||||||||||
Continuing Operations | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | $ | 760 | $ | 466 | $ | 1,413 | $ | 3,285 | ||||||||||
Capital, turnarounds and IT deferred spending: | ||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 276 | $ | 257 | $ | 295 | $ | 271 | $ | 1,099 | $ | 204 | $ | 190 | $ | 130 | $ | 19 | $ | 543 | ||||||||||
Olefins & Polyolefins - EAI | 64 | 39 | 45 | 65 | 213 | 42 | 34 | 38 | 52 | 166 | ||||||||||||||||||||
Intermediates & Derivatives | 179 | 238 | 317 | 330 | 1,064 | 353 | 305 | 103 | 119 | 880 | ||||||||||||||||||||
Advanced Polymer Solutions | 16 | 11 | 14 | 18 | 59 | 13 | 10 | 18 | 22 | 63 | ||||||||||||||||||||
Refining | 43 | 53 | 41 | 12 | 149 | 16 | 21 | 15 | 11 | 63 | ||||||||||||||||||||
Technology | 17 | 17 | 26 | 34 | 94 | 30 | 26 | 24 | 31 | 111 | ||||||||||||||||||||
Other | 4 | 7 | 4 | 1 | 16 | 2 | 2 | 97 | 20 | 121 | ||||||||||||||||||||
Continuing Operations | $ | 599 | $ | 622 | $ | 742 | $ | 731 | $ | 2,694 | $ | 660 | $ | 588 | $ | 425 | $ | 274 | $ | 1,947 | ||||||||||
(a) See Table 9 for the reconciliation of net income to EBITDA, including and excluding LCM and impairment. |
Table 9 - Reconciliation of Net Income to EBITDA, including and excluding LCM and Impairment | |||||||||||||||||||||||||||||
2019 | 2020 | ||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||
Net income | $ | 817 | $ | 1,003 | $ | 965 | $ | 612 | $ | 3,397 | $ | 144 | $ | 314 | $ | 114 | $ | 855 | $ | 1,427 | |||||||||
add: LCM charges (benefits), after-tax | — | — | — | 25 | 25 | 351 | (88) | (133) | (119) | 11 | |||||||||||||||||||
add: Impairment of long-lived assets, after-tax | — | — | — | — | — | — | — | 446 | — | 446 | |||||||||||||||||||
Net income excluding LCM and impairment | 817 | 1,003 | 965 | 637 | 3,422 | 495 | 226 | 427 | 736 | 1,884 | |||||||||||||||||||
less: LCM (charges) benefits, after-tax | — | — | — | (25) | (25) | (351) | 88 | 133 | 119 | (11) | |||||||||||||||||||
less: Impairment of long-lived assets, after-tax | — | — | — | — | — | — | — | (446) | — | (446) | |||||||||||||||||||
Net income | 817 | 1,003 | 965 | 612 | 3,397 | 144 | 314 | 114 | 855 | 1,427 | |||||||||||||||||||
Loss (income) from discontinued operations, net of tax | — | 3 | 4 | — | 7 | (1) | 1 | — | 2 | 2 | |||||||||||||||||||
Income from continuing operations | 817 | 1,006 | 969 | 612 | 3,404 | 143 | 315 | 114 | 857 | 1,429 | |||||||||||||||||||
Provision for (benefit from) income taxes(a) | 203 | 169 | 136 | 140 | 648 | 75 | (32) | (125) | 39 | (43) | |||||||||||||||||||
Depreciation and amortization | 322 | 328 | 327 | 335 | 1,312 | 342 | 356 | 358 | 329 | 1,385 | |||||||||||||||||||
Interest expense, net | 86 | 76 | 81 | 85 | 328 | 86 | 121 | 119 | 188 | 514 | |||||||||||||||||||
add: LCM charges (benefits), pre-tax | — | — | — | 33 | 33 | 419 | (96) | (160) | (147) | 16 | |||||||||||||||||||
EBITDA excluding LCM | 1,428 | 1,579 | 1,513 | 1,205 | 5,725 | 1,065 | 664 | 306 | 1,266 | 3,301 | |||||||||||||||||||
add: Impairment of long-lived assets, pre-tax | — | — | — | — | — | — | — | 582 | — | 582 | |||||||||||||||||||
EBITDA excluding LCM and impairment | 1,428 | 1,579 | 1,513 | 1,205 | 5,725 | 1,065 | 664 | 888 | 1,266 | 3,883 | |||||||||||||||||||
less: LCM (charges) benefits, pre-tax | — | — | — | (33) | (33) | (419) | 96 | 160 | 147 | (16) | |||||||||||||||||||
less: Impairment of long-lived assets, pre-tax | — | — | — | — | — | — | — | (582) | — | (582) | |||||||||||||||||||
EBITDA | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | $ | 760 | $ | 466 | $ | 1,413 | $ | 3,285 | |||||||||
(a) The third quarter of 2019 includes a non-cash benefit of $85 million, from the release of unrecognized tax benefits and associated accrued interest. |
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SOURCE LyondellBasell Industries
Article Date
1/29/2021LyondellBasell and Sinopec finalize joint venture to manufacture propylene oxide and styrene monomer in China
Source: PR Newswire
Orignial Article: https://contentapi.cision...
ROTTERDAM, Netherlands and BEIJING, Jan. 26, 2021 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world and the China Petroleum & Chemical Corporation (Sinopec), one of the largest integrated energy companies in China, today announced the signing of an agreement to form a 50:50 joint venture (JV) which will produce propylene oxide (PO) and styrene monomer (SM) in China's domestic market. First announced on December 23, 2019, the JV will operate under the name Ningbo ZRCC LyondellBasell New Material Company Limited.
"As China's economy continues to grow, so will demand for propylene oxide and styrene monomer. We are excited to expand our relationship with Sinopec through this joint venture in order to better serve China's domestic market. Sinopec's outstanding operational capabilities combined with LyondellBasell's leading technology is a win-win," said Torkel Rhenman, Executive Vice President, Intermediates and Derivatives, and Refining.
"Built on the remarkable success of our first Joint Venture, we are very delighted to continue to enhance the important partnership with LyondellBasell for future achievements. The establishment of the new Joint Venture is not only in line with the national drive for further opening-up, but also a vital step for Sinopec to deepen and expand our international operations," said Yu Baocai, Senior Vice President of Sinopec Corp. "We have great expectations on the new Joint Venture for propelling the economic development of the city of Ningbo to a new level. During the 14th Five-Year Plan period (2021-2025), Sinopec will continue to promote green industrial upgrading and innovative transformation, contributing to the everlasting economic growth of Zhejiang Province and Eastern China, and even the development of the chemical industry in China."
The JV will construct a new PO and SM unit in Zhenhai Ningbo, China. This new unit will have 275 kilotons per annum (KTA) capacity of PO and 600 KTA capacity of SM. The unit will use LyondellBasell's leading PO / SM technology. Products produced by the JV will be marketed equally by both partners, significantly expanding their respective participation in the Chinese market for PO and SM. Startup is expected at the end of 2021.
The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation. LyondellBasell expects to make its equity contribution to the JV during the first quarter of 2021.
According to IHS Markit, China accounts for more than 60 percent of chemical market demand in Asia and represents 40 percent of global chemical market growth over the next decade. PO and SM are core products of LyondellBasell and are used in a variety of applications including packaging, building and construction, furnishings and transportation.
LyondellBasell operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan and Changshu.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
About Sinopec
Sinopec Group is the largest oil and petrochemical products supplier and the second largest oil and gas producer in China, the largest refining company, and the third largest chemical company in the world. Its total number of gas stations ranks the second place in the world.
Forward-Looking Statement
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary antitrust or other regulatory approvals; our ability to successfully construct and operate the proposed facilities described; market conditions; 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; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located; and risks and uncertainties posed by international operations, including foreign currency fluctuations. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" sections of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarters ended March 31, 2020, and September 30, 2020, 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. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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Article Date
1/26/2021LyondellBasell and Sinopec finalize joint venture to manufacture propylene oxide and styrene monomer in China
Source: PR Newswire
Orignial Article: https://contentapi.cision...
ROTTERDAM, Netherlands and BEIJING, Jan. 25, 2021 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world and the China Petroleum & Chemical Corporation (Sinopec), one of the largest integrated energy companies in China, today announced the signing of an agreement to form a 50:50 joint venture (JV) which will produce propylene oxide (PO) and styrene monomer (SM) in China's domestic market. First announced on December 23, 2019, the JV will operate under the name Ningbo ZRCC LyondellBasell New Material Company Limited.
"As China's economy continues to grow, so will demand for propylene oxide and styrene monomer. We are excited to expand our relationship with Sinopec through this joint venture in order to better serve China's domestic market. Sinopec's outstanding operational capabilities combined with LyondellBasell's leading technology is a win-win," said Torkel Rhenman, Executive Vice President, Intermediates and Derivatives, and Refining.
"Built on the remarkable success of our first Joint Venture, we are very delighted to continue to enhance the important partnership with LyondellBasell for future achievements. The establishment of the new Joint Venture is not only in line with the national drive for further opening-up, but also a vital step for Sinopec to deepen and expand our international operations," said Yu Baocai, Senior Vice President of Sinopec Corp. "We have great expectations on the new Joint Venture for propelling the economic development of the city of Ningbo to a new level. During the 14th Five-Year Plan period (2021-2025), Sinopec will continue to promote green industrial upgrading and innovative transformation, contributing to the everlasting economic growth of Zhejiang Province and Eastern China, and even the development of the chemical industry in China."
The JV will construct a new PO and SM unit in Zhenhai Ningbo, China. This new unit will have 275 kilotons per annum (KTA) capacity of PO and 600 KTA capacity of SM. The unit will use LyondellBasell's leading PO / SM technology. Products produced by the JV will be marketed equally by both partners, significantly expanding their respective participation in the Chinese market for PO and SM. Startup is expected at the end of 2021.
The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation. LyondellBasell expects to make its equity contribution to the JV during the first quarter of 2021.
According to IHS Markit, China accounts for more than 60 percent of chemical market demand in Asia and represents 40 percent of global chemical market growth over the next decade. PO and SM are core products of LyondellBasell and are used in a variety of applications including packaging, building and construction, furnishings and transportation.
LyondellBasell operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan and Changshu.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
About Sinopec
Sinopec Group is the largest oil and petrochemical products supplier and the second largest oil and gas producer in China, the largest refining company, and the third largest chemical company in the world. Its total number of gas stations ranks the second place in the world.
Forward-Looking Statement
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary antitrust or other regulatory approvals; our ability to successfully construct and operate the proposed facilities described; market conditions; 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; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located; and risks and uncertainties posed by international operations, including foreign currency fluctuations. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" sections of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarters ended March 31, 2020, and September 30, 2020, 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. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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SOURCE LyondellBasell
Article Date
1/26/2021LyondellBasell to Discuss Fourth-Quarter Results on Friday, January 29, 2021
Source: PR Newswire
Orignial Article: https://contentapi.cision...
HOUSTON and LONDON, Jan. 15, 2021 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce fourth-quarter 2020 financial results before the U.S. market opens on Friday, January 29, followed by a webcast and teleconference to discuss results at 11:00 a.m. EST.
Teleconference and Webcast Details
Friday, January 29, 2021
11:00 a.m. EST
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyondellbasell.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at http://www.lyondellbasell.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyondellbasell.com/earnings.
Replay Information
A replay of the call will be available from 1:00 p.m. EST January 29 until February 28. The replay dial-in numbers are:
Toll-Free: 1-800-846-0305
Toll: 1-402-998-0543
Passcode: 6541
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
1/15/2021LyondellBasell joins the United Nations Global Compact
Source: PR Newswire
HOUSTON, Dec. 10, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB) one of the world's largest plastics, chemicals and refining companies today announced it has joined the United Nations (U.N.) Global Compact, the world's largest corporate sustainability initiative. Under the U.N. Global Compact, signatories are encouraged to align their operations and strategies with key principles on human rights, labor and anti-corruption.
"At LyondellBasell, we have a culture of accomplishing goals through what we call 'the power of many.' Addressing the challenges facing our world will require global commitment and collaboration between the private sector, NGOs and governments," said Bob Patel, CEO Of LyondellBasell. "The goals of the U.N. Global Compact align well with our company's focus on eliminating plastic waste in the environment, addressing climate change and supporting a thriving society. We are proud to be part of this important, collective effort."
In 2020, LyondellBasell advanced its sustainability agenda by setting ambitious targets for recycled and renewable-based polymers, progressing on the goal of zero polymer pellet loss from operations and transportation and starting up the MoReTec molecular recycling pilot plant in Ferrara, Italy. In addition, the company is one of the founding members of the Alliance to End Plastic Waste (AEPW), the first global, cross value chain initiative dedicated to eliminating plastic waste in the environment.
For more information about LyondellBasell's sustainability efforts, visit the company's sustainability page. For more information on the company's involvement as a participant of the initiative, visit the company's profile page on the UN Global Compact website.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. LyondellBasell offers a circular product portfolio that provides customers with solutions to increase recycled plastic content in their applications with high quality mechanically recycled polymers. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
12/10/2020LyondellBasell and SUEZ increase plastics recycling capacity
Source: PR Newswire
Companies expand their Quality Circular Polymers Joint Venture
ROTTERDAM, The Netherlands and PARIS, Dec. 7, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB) one of the world's largest plastics, chemicals and refining companies and SUEZ (EPA: SEV), a world leader in environmental services, today jointly announced the acquisition of TIVACO, a plastics recycling company located in Blandain, Belgium. The company will become part of Quality Circular Polymers (QCP), the companies' existing 50/50 plastics recycling joint venture. With this transaction, QCP will increase its production capacity for recycled materials to approximately 55,000 tonnes per year.
"This latest investment in QCP supports LyondellBasell's ambition to produce and market 2 million tons per year of recycled and renewable source-based polymers by 2030. Extending the plastics lifecycle through recovery, recycling and reuse not only eliminates waste but also produces a product with a lower CO2 footprint," said Richard Roudeix, Senior Vice President Olefins & Polyolefins, Europe, LyondellBasell. "This innovative approach is key to unlocking additional value from existing plastics while addressing brand owners' needs for sustainable products."
"We are thrilled to take a step forward with our long-term partner LyondellBasell. With the new acquisition, we will together speed up the use of quality circular polymers in Europe and support industrial manufacturers' efforts to reach their environmental targets," commented Jean-Marc Boursier, SUEZ Group COO. "It also confirms SUEZ's ambition to become the world leader in environmental services by 2030."
The TIVACO facility operates five production lines capable of processing approximately 22,000 tonnes of recycled plastic per year. This acquisition builds on the companies' 2018 acquisition of QCP, a plastics recycling company in Geleen, the Netherlands which is capable of processing approximately 35,000 tonnes of material per year. Today, recycled materials from QCP can be found in consumer products including Samsonite's S'Cure ECO luggage collection.
QCP is committed to ending plastic waste in the environment. The joint venture leverages the two partners' respective strengths. SUEZ will utilize its leading-edge technology solutions in sorting and recycling to improve the preparation of materials to be recovered at QCP. LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development and deep knowledge of important end markets such as consumer goods, where the company has a strong presence.
Both SUEZ and LyondellBasell are members of the Alliance to End Plastic Waste, a global, cross-value chain non-profit organization committed to ending plastic waste in the environment. The Alliance brings together a diverse network of resources and expertise to create and scale innovative solutions around the world.
Cautionary statement
The statements in this presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this presentation, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the chemical, polymers and refining industries; our ability to develop and advance plastic grades that advance sustainability and the circular economy; and our ability to increase our production volumes of products made by recycling or with renewable feedstocks. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" sections of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarters ended March 31, 2020 and September 30, 2020, 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. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
About QCP
Quality Circular Polymers (QCP) provides brand owners and plastics convertors with polymers of high and consistent quality based on used plastics. Reliable supply, integration, leading technologies and innovative recipes enable QCP to push the circular plastics industry to the next level. More information can be found at www.QCPolymers.com.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. LyondellBasell offers a circular product portfolio that provides customers with solutions to increase recycled plastic content in their applications with high quality mechanically recycled polymers. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
About SUEZ
Since the end of the 19th century, SUEZ has built expertise aimed at helping people to constantly improve their quality of life by protecting their health and supporting economic growth. With an active presence on five continents, SUEZ and its 90,000 employees strive to preserve our environment's natural capital: water, soil, and air. SUEZ provides innovative and resilient solutions in water management, waste recovery, site remediation and air treatment, optimizing municipalities' and industries' resource management through "smart" cities and improving their environmental and economic performance. The Group delivers sanitation services to 64 million people and produces 7.1 billion m3 of drinking water. SUEZ is also a contributor to economic growth, with more than 200,000 jobs created directly and indirectly on an annual basis, and a provider of new resources, with 4.2 million tons of secondary raw materials produced. By 2030, the Group is targeting 100% sustainable solutions, with a positive impact on our environment, health and climate. SUEZ generated total revenue of €18.0 billion in 2019.
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SOURCE LyondellBasell Industries
Article Date
12/7/202012/2/2020 - LyondellBasell named to Newsweek Magazine's list of "America's Most Responsible Companies"
LyondellBasell named to Newsweek Magazine's list of "America's Most Responsible Companies"
Source: PR Newswire
HOUSTON, Dec. 2, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has been named to Newsweek Magazine's 2021 list of "America's Most Responsible Companies." This is the second time LyondellBasell appears on the list, which debuted in 2020 and recognizes companies for their performance in the areas of environmental, social and corporate governance.
"While awards and recognition are never our primary objective, it's gratifying that our employees' efforts to help eliminate plastic waste in the environment, address climate change and provide solutions that support a thriving society are being recognized," said Bob Patel, CEO of LyondellBasell. "We believe these efforts are critical to addressing some of the world's biggest challenges in addition to creating long-term value for our stakeholders."
In 2020, LyondellBasell advanced its sustainability agenda by setting one of the most ambitious targets for recycled and renewable-based polymers in the industry, progressing on the goal of zero pellet loss from operations and transportation, starting up the company's MoReTec molecular recycling pilot plant at its Ferrara, Italy site, and expanding efforts in its supplier code of conduct. More information on these efforts can be found on the company's sustainability web page.
In addition, under the company's "Advancing Good" philanthropy approach, the company has made a number of significant investments within the communities where we operate around the world, including:
To determine which companies were "tops when it came to doing good," Newsweek, in partnership with Statista, analyzed the top 2,000 public companies by revenue in 14 industries in the United States. 400 companies were selected for inclusion on the list based on publicly available key performance indicators derived from CSR Reports, Sustainability Reports, and Corporate Citizenship Reports as well as an independent survey of U.S. residents. More information on Newsweek's "America's Most Responsible Companies 2021" list can be found here.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" and In 2020, Newsweek magazine's list of "America's Most Responsible Companies 2021." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
12/2/2020LyondellBasell and Sasol Complete Louisiana Joint Venture Transaction
Source: PR Newswire
HOUSTON and JOHANNESBURG, Dec. 2, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, and Sasol (JSE: SOL, NYSE: SSL), a global integrated chemicals and energy company, today announced the closing of their Louisiana-based Integrated Polyethylene Joint Venture (JV) transaction following required regulatory and shareholder approvals. The 50/50 JV includes a 1.5 MM ton ethane cracker, 0.9 MM ton low-density and linear-low density polyethylene plants, and associated infrastructure near Lake Charles, La, and will toll manufacture the products on behalf of the two shareholders.
Under the terms of the transaction agreements, LyondellBasell will operate the three assets on behalf of the JV and market the polyethylene products on behalf of the two shareholders of the JV. Approximately 400 Sasol Lake Charles employees who directly support the JV assets are now employees of LyondellBasell.
"The formation of this JV is part of our approach to growing our core businesses while positioning the company to benefit from improving economic conditions," said Bob Patel, CEO of LyondellBasell. "We believe our ability to operate efficiently and serve growing markets will create exceptional long-term value for our shareholders of both companies. We welcome our new JV employees to the LyondellBasell family."
"This transaction accelerates the transformation of our chemicals business toward a focus on specialty chemicals," said Fleetwood Grobler, Sasol President and Chief Executive Officer. "We're proud of the world-scale assets we've built in Southwest Louisiana and look forward to working with LyondellBasell to realize their full potential and create value for all our stakeholders. We also extend our best wishes and gratitude to our colleagues who are transferring to LyondellBasell to operate the joint venture assets."
The formation of this JV with Sasol aligns with LyondellBasell's strategy of investing in high-quality assets in growing markets or feedstock advantaged regions. In September 2020, LyondellBasell established a 50/50 JV with China's Liaoning Bora Enterprise Group to start up and operate a new, large petrochemical complex in northeast China. Taken together, the Bora and Sasol JVs are equivalent to the full capacity and immediate financial benefits of a new and operational world-scale integrated cracker complex.
This transaction is a significant step for Sasol in achieving its financial and strategic objectives toward creating Future Sasol, which will be a more sustainable and resilient business for the long-term.
Issued by:
Sasol Media Relations
In South Africa:
Matebello Motloung, Manager: Group Media Relations
Direct telephone: +27 (0) 10 344 9256; Mobile: +27 (0) 82 773 9457
matebello.motloung@sasol.com
Alex Anderson, Senior Manager: Group External Communication
Direct telephone: +27 (0) 10 344 6509; Mobile: +27 (0) 71 600 9605;
alex.anderson@sasol.com
In the U.S.:
Kim Cusimano, Americas Corporate Affairs
Direct telephone: +1 (225) 776 0758
kim.cusimano@us.sasol.com
LyondellBasell Media Relations
Phone: +1 713 309 7575
Email: mediarelations@lyb.com
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
About Sasol
Sasol is a global integrated chemicals and energy company spanning 30 countries. Through our talented people, we use selected technologies to safely and sustainably source, manufacture and market chemical and energy products globally. More information about Sasol can be found at www.Sasol.com.
Cautionary Note Regarding Forward-looking Statements for LyondellBasell
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell 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, market conditions, 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; our ability to achieve expected synergies from the Louisiana and Bora joint ventures; the completion of the acquisition of joint venture assets in the future and ability to recognize the anticipated benefits thereof; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession; future financial and operating results; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and to amend, extend, repay, service, and reduce 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" sections of our Form 10-K for the year ended December 31, 2019, and our Forms 10-Q for the quarters ended March 31, 2020, and September 30, 2020, 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. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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SOURCE LyondellBasell; Sasol Limited
Article Date
12/2/2020LyondellBasell to Address Citi's 2020 Basic Materials Virtual Conference
Source: PR Newswire
HOUSTON and LONDON, Nov. 23, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Bob Patel, chief executive officer, will address investors at the Citi 2020 Basic Materials Virtual Conference at 2:00 p.m. EST December 1.
Webcast and Presentation Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
11/23/202011/20/2020 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Nov. 20, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.05 per share, to be paid December 7, 2020 to shareholders of record November 30, 2020, with an ex-dividend date of November 27, 2020.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
11/20/202010/30/2020 - LyondellBasell Reports Third Quarter 2020 Earnings
LyondellBasell Reports Third Quarter 2020 Earnings
Source: PR Newswire
HOUSTON and LONDON, Oct. 30, 2020 /PRNewswire/ --
Third Quarter 2020 Highlights
Subsequent October 2020 Events
Comparisons with the prior quarter and third quarter 2019 are available in the following table:
Table 1 - Earnings Summary | |||||
Millions of U.S. dollars (except share data) | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Sales and other operating revenues | $6,776 | $5,546 | $8,722 | $19,816 | $26,548 |
Net income | 114 | 314 | 965 | 572 | 2,785 |
Diluted earnings per share | 0.33 | 0.94 | 2.85 | 1.69 | 7.72 |
Weighted average diluted share count | 334 | 334 | 337 | 334 | 360 |
EBITDA (a) | 466 | 760 | 1,513 | 1,872 | 4,520 |
Excluding LCM and Impairment1 | |||||
Net income | $427 | $226 | $965 | $1,148 | $2,785 |
Diluted earnings per share | 1.27 | 0.68 | 2.85 | 3.42 | 7.72 |
LCM (benefits) charges, pre-tax | (160) | (96) | — | 163 | — |
Impairment, pre-tax | 582 | — | — | 582 | — |
EBITDA | 888 | 664 | 1,513 | 2,617 | 4,520 |
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of net income to EBITDA, including and excluding LCM and impairment. |
________________________
1 LCM stands for "lower of cost or market." Impairment is related to the Refinery segment. An explanation of LCM and why we have excluded LCM and impairment from certain financial information can be found under "Information Related to Financial Measures." |
LyondellBasell Industries (NYSE: LYB) today announced net income for the third quarter 2020 of $114 million, or $0.33 per share. The company recognized a $582 million non-cash impairment charge during the quarter to reflect reduced expectations for profitability from the Houston refinery. Third quarter results include a $160 million non-cash, lower of cost or market (LCM) inventory valuation benefit. The combination of the impairment and inventory valuation benefit reduced net income by $313 million or $0.94 per share. Third quarter 2020 EBITDA was $466 million, or $888 million excluding LCM and impairment. The third quarter 2020 also included $9 million of integration and restructuring costs, net of tax, that impacted earnings by $0.02 per share and EBITDA by $15 million.
"In the third quarter, demand for LyondellBasell products improved with increasing global economic activity. Our year over year results reflect strong global volumes while margins are still recovering. Sequentially, third quarter volumes and margins rebounded for most of our businesses. Strong demand for polyethylene in North America and Asia and hurricane-related production constraints on the U.S. Gulf Coast led to tight markets that drove $420 per ton of North American polyethylene contract pricing improvement since June. Volumes improved in our Propylene Oxide & Derivatives business and our Advanced Polymer Solutions segment as demand increased for polymers utilized in automotive manufacturing and other durable goods markets. As expected, reduced demand for transportation fuels continued to pressure our Refining and Oxyfuels & Related Products businesses during the quarter," said Bob Patel, LyondellBasell CEO.
"LyondellBasell's actions in the second quarter to aggressively manage inventory and maximize liquidity positioned us well for a recovering economy in the third quarter. We extended our track record of efficient cash generation by converting 93% of our EBITDA excluding LCM and impairment to cash flow from operations and ended the quarter with $5.5 billion in cash and available liquidity."
"We advanced our disciplined growth strategy by extending our global network and reaffirmed our commitments to building innovative and sustainable business models for our industry. The establishment and start-up of our new integrated cracker joint venture with Bora in China is another example of our proven joint venture model that enables us to capture rapid returns from an efficient investment in the world's fastest growing market. In September, we issued our annual Sustainability Report to provide more details on our company's progress and discuss our substantive and ambitious goals for the coming decade," Patel said.
OUTLOOK
"Recovery in global economies should continue to benefit the petrochemical industry. Despite the backdrop of both the pandemic and a recession, we expect global polyethylene demand to grow for the full year. China continues to have a 40% polyethylene trade deficit which supports North American exports and tightens the U.S. domestic market. We expect continued strength in North American integrated polyethylene margins during the fourth quarter, perhaps with some seasonal moderation by the end of the year. Stubbornly slow recovery in global mobility is weighing on demand for gasoline and jet fuel which will prolong headwinds for our Refining and Oxyfuels & Related Products businesses. Our order books show increased demand from automotive manufacturing and other durable goods markets that should continue to propel further improvement for our Advanced Polymer Solutions segment."
"After several years of advancing on our value-driven growth strategy, LyondellBasell is poised to reap the rewards of our investments as our industry benefits from a recovering economy. In October, we announced a new integrated polyethylene joint venture with Sasol in Louisiana. This partnership represents another measured approach to extend one of our core businesses and increase free cash flow. Our new Hyperzone polyethylene capacity, several expansions across our joint venture network and the integration of our A. Schulman acquisition should all add to LyondellBasell's growing cash flow over the coming years. We remain committed to an investment grade balance sheet while focusing on funding our dividend with cash from operations. Upon closing of the transaction for the Louisiana joint venture, we will prioritize debt repayment over share repurchases. We believe LyondellBasell's leading portfolio, advantaged positions and disciplined capital deployment strategy will enable us to harvest profitability, increase free cash flow and emerge from this downturn stronger than before," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology.
Comments and analysis represent underlying business activity and are exclusive of LCM and impairment.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview |
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $309 | $107 | $524 | $654 | $1,744 |
EBITDA | 474 | 248 | 653 | 1,088 | 2,131 |
LCM (benefits) charges, pre-tax | (70) | (38) | — | 3 | — |
EBITDA excluding LCM | 404 | 210 | 653 | 1,091 | 2,131 |
Three months ended September 30, 2020 versus three months ended June 30, 2020 - EBITDA increased $194 million versus the second quarter 2020, excluding a favorable variance of $32 million due to LCM inventory benefits. Third quarter 2020 results were negatively impacted by last-in, first out (LIFO) inventory charges of approximately $60 million. Compared to the prior period, olefins results increased about $220 million driven by an increase in margins and volumes. Margins improved primarily due to an increase in the price of ethylene. Volumes increased due to higher demand coupled with the completion of planned maintenance. Polyolefins results increased $25 million due to higher polyethylene margin and volume as a result of higher demand partially offset by a decline in polypropylene margin.
Three months ended September 30, 2020 versus three months ended September 30, 2019 - EBITDA decreased $249 million versus the third quarter 2019, excluding a favorable variance of $70 million due to a third quarter 2020 LCM inventory benefit. Third quarter 2020 results were negatively impacted by LIFO inventory charges of approximately $60 million. Compared with the prior period, olefins results decreased about $135 million driven by decreases in margins partially offset by an increase in volumes. Ethylene margin decreased primarily due to lower co-product prices. Ethylene volume increased primarily due to the completion of planned maintenance in the third quarter 2019 at our Clinton, Iowa cracker. Polyolefin results decreased approximately $60 million due to lower margins as a result of reduced spreads.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins and Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview |
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $52 | $81 | $202 | $268 | $614 |
EBITDA | 148 | 185 | 291 | 522 | 918 |
LCM (benefits) charges, pre-tax | (17) | 34 | — | 53 | — |
EBITDA excluding LCM | 131 | 219 | 291 | 575 | 918 |
Three months ended September 30, 2020 versus three months ended June 30, 2020 - EBITDA decreased $88 million versus the second quarter 2020, excluding a favorable variance of $51 million due to LCM inventory benefits in the third quarter and charges in the second quarter. Third quarter 2020 results were negatively impacted by LIFO inventory charges of approximately $20 million, partially offset by a benefit of approximately $10 million due to an increase in the euro versus the U.S. dollar exchange rate relative to the second quarter. Compared to the prior period, olefins results decreased about $30 million driven by a decrease in margin with higher feedstock costs outpacing higher ethylene prices. Combined polyolefins results decreased $20 million primarily due to a decline in polyethylene volume and polypropylene price spread over propylene. Joint venture equity income decreased approximately $10 million.
Three months ended September 30, 2020 versus three months ended September 30, 2019 - EBITDA decreased $160 million versus the third quarter 2019, excluding a favorable variance of $17 million due to a third quarter 2020 LCM inventory benefit. Third quarter 2020 results were negatively impacted by LIFO inventory charges of approximately $20 million, partially offset by a benefit of approximately $15 million due to an increase in the euro versus the U.S. dollar exchange rate relative to the third quarter 2019. Compared to the prior period, olefins results decreased approximately $115 million due to lower margin driven by declining ethylene prices. Combined polyolefins results decreased about $45 million primarily driven by a lower polypropylene price spread over propylene.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview |
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $180 | $24 | $314 | $335 | $1,000 |
EBITDA | 267 | 101 | 390 | 571 | 1,228 |
LCM (benefits) charges, pre-tax | (22) | 20 | — | 76 | — |
EBITDA excluding LCM | 245 | 121 | 390 | 647 | 1,228 |
Three months ended September 30, 2020 versus three months ended June 30, 2020 - EBITDA increased $124 million versus the second quarter 2020, excluding a favorable variance of $42 million due to LCM inventory benefits in the third quarter and charges in the second quarter. Third quarter 2020 results included a LIFO inventory benefit of approximately $20 million. Compared to the prior period, Propylene Oxide & Derivatives results increased about $45 million due to higher volumes driven by increased demand from automotive, construction and furniture end markets. Intermediate Chemicals results increased about $40 million primarily due an increase in volumes with the completion of planned maintenance. Oxyfuels & Related Products results increased approximately $10 million with higher margins driven by increased product prices.
Three months ended September 30, 2020 versus three months ended September 30, 2019 - EBITDA decreased $145 million versus the third quarter 2019, excluding a favorable variance of $22 million due to LCM inventory benefits in the third quarter 2020. Third quarter 2020 results included LIFO benefits of approximately $20 million and exchange rate benefits of about $10 million due to an increase in the euro versus the U.S. dollar relative to third quarter 2019. Compared with the prior period, Propylene Oxide & Derivatives and Intermediate Chemicals results were relatively unchanged. Intermediate Chemicals results were relatively unchanged with higher volumes due to the completion of planned maintenance in the third quarter 2019 offset by lower margins in most products. Oxyfuels & Related Products results decreased approximately $170 million driven by lower margins due to lower gasoline prices and higher feedstock prices.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1.
Table 5 - Advanced Polymer Solutions Financial Overview |
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $116 | $(83) | $67 | $103 | $277 |
EBITDA | 157 | (44) | 102 | 226 | 370 |
LCM (benefits) charges, pre-tax | (40) | 67 | — | 29 | — |
EBITDA excluding LCM | 117 | 23 | 102 | 255 | 370 |
Three months ended September 30, 2020 versus three months ended June 30, 2020 - EBITDA increased $94 million versus the second quarter 2020, excluding a favorable variance of $107 million due to LCM inventory benefits in the third quarter and charges in the second quarter. Third quarter 2020 results were negatively impacted by LIFO inventory charges of approximately $15 million. Third quarter 2020 integration costs related to the acquisition of A. Schulman were $9 million lower than the second quarter. Compared with the prior period, Compounding & Solutions results increased $90 million driven by higher volumes and margins. Volumes improved with increased demand for polymer compounds from the automotive sector. Advanced Polymers results were relatively unchanged.
Three months ended September 30, 2020 versus three months ended September 30, 2019 - EBITDA increased $15 million compared to the third quarter 2019, excluding a favorable variance of $40 million due to LCM inventory benefits in the third quarter 2020. Third quarter 2020 results were negatively impacted by LIFO inventory charges of approximately $15 million. Integration costs related to the acquisition decreased $36 million in the third quarter 2020 versus the third quarter 2019. Compared with the prior period, Compounding & Solutions results were relatively unchanged with higher margins offset by lower volumes. Advanced Polymers results decreased approximately $15 million due to lower margins and volumes driven by reduced demand.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview |
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income (loss) | $(733) | $116 | $(52) | $(931) | $(221) |
EBITDA | (692) | 165 | (6) | (799) | (87) |
LCM (benefits) charges, pre-tax | (11) | (179) | — | 2 | — |
Impairment, pre-tax | 582 | — | — | 582 | — |
EBITDA excluding LCM and impairment | (121) | (14) | (6) | (215) | (87) |
Three months ended September 30, 2020 versus three months ended June 30, 2020 - EBITDA decreased $107 million versus the second quarter 2020, excluding the unfavorable variance of $168 million due to a decrease in LCM inventory benefits and an impairment of $582 million for the Houston Refinery. In the third quarter 2020, we recognized $8 million of restructuring costs. Margin declined due to a second quarter 2020 hedge gain, unfavorable by-product spreads and a decrease in the Maya 2-1-1 industry benchmark crack spread of $3.38 per barrel to $9.89 per barrel. The Houston Refinery operated at 216,000 barrels per day, 21,000 barrels per day lower than prior period due to lower demand for refined products.
Three months ended September 30, 2020 versus three months ended September 30, 2019 - EBITDA decreased $115 million versus the third quarter 2019, excluding a favorable variance of $11 million due to LCM inventory benefits and an impairment of $582 million in the third quarter 2020. Margin decreased due to a decrease in the Maya 2-1-1 industry benchmark crack spread by $8.22 per barrel, partially offset by improved by-product spreads. Crude throughput decreased by 48,000 barrels per day due to rate reductions in the third quarter 2020 in response to lower demand for refined products.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview |
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $101 | $104 | $73 | $252 | $242 |
EBITDA | 111 | 112 | 83 | 279 | 273 |
LCM charges, pre-tax | — | — | — | — | — |
EBITDA excluding LCM | 111 | 112 | 83 | 279 | 273 |
Three months ended September 30, 2020 versus three months ended June 30, 2020 - EBITDA was relatively unchanged relative to the second quarter 2020. Catalyst margin and volumes decreased following customers stocking inventories during the second quarter. Licensing revenue increased in the third quarter.
Three months ended September 30, 2020 versus three months ended September 30, 2019 - EBITDA increased $28 million, versus the third quarter 2019 driven by higher licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $425 million during the third quarter 2020. Our cash and liquid investment balance was $2.8 billion and there were 334 million common shares outstanding as of September 30, 2020. The company paid dividends of $352 million during the third quarter 2020.
Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable GAAP measure, to EBITDA are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call October 30 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 1-800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 1:00 p.m. EDT October 30 until November 30 at 8:59 a.m. EST. The replay dial-in numbers are 1-888-566-0568 (U.S.) and 1-203-369-3064 (international). The passcode for each is 6541.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
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 of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, market conditions, the results of any repayment or redemption of indebtedness, 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; our ability to complete the Louisiana Joint Venture, and the timing of such transaction; the receipt of all required governmental and shareholder approvals for such transaction; our ability to achieve expected synergies from such transaction; the completion of the acquisition of joint venture assets in the future and ability to recognize the anticipated benefits thereof; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession; future financial and operating results; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and to amend, extend, repay, service, and reduce 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" sections of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarter ended March 31, 2020, 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. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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.
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, net income and diluted EPS exclusive of adjustments for "lower of cost or market" ("LCM") and impairment, and certain liquidity 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. 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 also present EBITDA, net income and diluted EPS exclusive of adjustments for ("LCM") and impairment. LCM 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. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover. Property, plant and equipment are recorded at historical costs. If it is determined that an asset or asset group's undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value.
Conversion of EBITDA excluding LCM and impairment to cash from operating activities is a measure that provides an indicator of a company's operational efficiency and management and may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. For purposes of this release, conversion of EBITDA excluding LCM and impairment to cash from operating activities means cash from operating activities divided by EBITDA excluding LCM and impairment.
Free cash flow is a measure of profitability commonly used by investors to evaluate performance and may not be comparable to similarly titled measures reported by other companies due to differences in the way the measure is calculated. For the purposes of this release, free cash flow means net cash provided by operating activities minus capital expenditures.
Additionally, liquidity is a measure that provides an indicator of value to investors. For purposes of this release, liquidity includes cash and cash equivalents, restricted cash and restricted cash equivalents, short term investments, and availability under our Senior Revolving Credit Facility and our Receivables Facility.
Additional operating and financial information, including reconciliations of non-GAAP measures to the most directly comparable GAAP measure, may be found in Table 9 at the end of this release and on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | ||||||||||||||||||||||||||||||||||||
2019 | 2020 | |||||||||||||||||||||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Total | |||||||||||||||||||||||||||
Sales and other operating revenues: | ||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,111 | $ | 2,114 | $ | 2,137 | $ | 2,073 | $ | 8,435 | $ | 1,792 | $ | 1,433 | $ | 1,840 | $ | 5,065 | ||||||||||||||||||
Olefins & Polyolefins - EAI | 2,535 | 2,505 | 2,309 | 2,155 | 9,504 | 2,224 | 1,702 | 1,982 | 5,908 | |||||||||||||||||||||||||||
Intermediates & Derivatives | 1,894 | 2,062 | 2,046 | 1,832 | 7,834 | 1,770 | 1,157 | 1,538 | 4,465 | |||||||||||||||||||||||||||
Advanced Polymer Solutions | 1,339 | 1,258 | 1,186 | 1,067 | 4,850 | 1,096 | 705 | 1,004 | 2,805 | |||||||||||||||||||||||||||
Refining | 1,882 | 2,180 | 2,134 | 2,055 | 8,251 | 1,448 | 919 | 1,101 | 3,468 | |||||||||||||||||||||||||||
Technology | 141 | 173 | 146 | 203 | 663 | 122 | 177 | 193 | 492 | |||||||||||||||||||||||||||
Other/Eliminations | (1,124) | (1,244) | (1,236) | (1,206) | (4,810) | (958) | (547) | (882) | (2,387) | |||||||||||||||||||||||||||
Continuing operations | $ | 8,778 | $ | 9,048 | $ | 8,722 | $ | 8,179 | $ | 34,727 | $ | 7,494 | $ | 5,546 | $ | 6,776 | $ | 19,816 | ||||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 384 | $ | 504 | $ | 524 | $ | 365 | $ | 1,777 | $ | 238 | $ | 107 | $ | 309 | $ | 654 | ||||||||||||||||||
Olefins & Polyolefins - EAI | 186 | 226 | 202 | 59 | 673 | 135 | 81 | 52 | 268 | |||||||||||||||||||||||||||
Intermediates & Derivatives | 314 | 372 | 314 | 249 | 1,249 | 131 | 24 | 180 | 335 | |||||||||||||||||||||||||||
Advanced Polymer Solutions | 119 | 91 | 67 | 13 | 290 | 70 | (83) | 116 | 103 | |||||||||||||||||||||||||||
Refining | (59) | (110) | (52) | (19) | (240) | (314) | 116 | (733) | (931) | |||||||||||||||||||||||||||
Technology | 73 | 96 | 73 | 132 | 374 | 47 | 104 | 101 | 252 | |||||||||||||||||||||||||||
Other | — | (2) | (4) | (1) | (7) | (3) | (10) | (2) | (15) | |||||||||||||||||||||||||||
Continuing operations | $ | 1,017 | $ | 1,177 | $ | 1,124 | $ | 798 | $ | 4,116 | $ | 304 | $ | 339 | $ | 23 | $ | 666 | ||||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 115 | $ | 117 | $ | 118 | $ | 120 | $ | 470 | $ | 124 | $ | 133 | $ | 134 | $ | 391 | ||||||||||||||||||
Olefins & Polyolefins - EAI | 53 | 52 | 51 | 52 | 208 | 53 | 53 | 55 | 161 | |||||||||||||||||||||||||||
Intermediates & Derivatives | 72 | 74 | 75 | 74 | 295 | 70 | 74 | 79 | 223 | |||||||||||||||||||||||||||
Advanced Polymer Solutions | 29 | 30 | 32 | 42 | 133 | 44 | 39 | 40 | 123 | |||||||||||||||||||||||||||
Refining | 43 | 44 | 41 | 41 | 169 | 42 | 49 | 40 | 131 | |||||||||||||||||||||||||||
Technology | 10 | 11 | 10 | 6 | 37 | 9 | 8 | 10 | 27 | |||||||||||||||||||||||||||
Continuing operations | $ | 322 | $ | 328 | $ | 327 | $ | 335 | $ | 1,312 | $ | 342 | $ | 356 | $ | 358 | $ | 1,056 | ||||||||||||||||||
EBITDA:(a) | ||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 516 | $ | 635 | $ | 653 | $ | 498 | $ | 2,302 | $ | 366 | $ | 248 | $ | 474 | $ | 1,088 | ||||||||||||||||||
Olefins & Polyolefins - EAI | 296 | 331 | 291 | 144 | 1,062 | 189 | 185 | 148 | 522 | |||||||||||||||||||||||||||
Intermediates & Derivatives | 390 | 448 | 390 | 329 | 1,557 | 203 | 101 | 267 | 571 | |||||||||||||||||||||||||||
Advanced Polymer Solutions | 148 | 120 | 102 | 54 | 424 | 113 | (44) | 157 | 226 | |||||||||||||||||||||||||||
Refining | (15) | (66) | (6) | 22 | (65) | (272) | 165 | (692) | (799) | |||||||||||||||||||||||||||
Technology | 83 | 107 | 83 | 138 | 411 | 56 | 112 | 111 | 279 | |||||||||||||||||||||||||||
Other | 10 | 4 | — | (13) | 1 | (9) | (7) | 1 | (15) | |||||||||||||||||||||||||||
Continuing operations | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | $ | 760 | $ | 466 | $ | 1,872 | ||||||||||||||||||
Capital, turnarounds and IT deferred spending: | ||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 276 | $ | 257 | $ | 295 | $ | 271 | $ | 1,099 | $ | 204 | $ | 190 | $ | 130 | $ | 524 | ||||||||||||||||||
Olefins & Polyolefins - EAI | 64 | 39 | 45 | 65 | 213 | 42 | 34 | 38 | 114 | |||||||||||||||||||||||||||
Intermediates & Derivatives | 179 | 238 | 317 | 330 | 1,064 | 353 | 305 | 103 | 761 | |||||||||||||||||||||||||||
Advanced Polymer Solutions | 16 | 11 | 14 | 18 | 59 | 13 | 10 | 18 | 41 | |||||||||||||||||||||||||||
Refining | 43 | 53 | 41 | 12 | 149 | 16 | 21 | 15 | 52 | |||||||||||||||||||||||||||
Technology | 17 | 17 | 26 | 34 | 94 | 30 | 26 | 24 | 80 | |||||||||||||||||||||||||||
Other | 4 | 7 | 4 | 1 | 16 | 2 | 2 | 97 | 101 | |||||||||||||||||||||||||||
Continuing operations | $ | 599 | $ | 622 | $ | 742 | $ | 731 | $ | 2,694 | $ | 660 | $ | 588 | $ | 425 | $ | 1,673 | ||||||||||||||||||
(a) See Table 9 for the reconciliation of net income to EBITDA, including and excluding LCM and impairment. |
Table 9 - Reconciliation of Net Income to EBITDA, including and excluding LCM and Impairment | |||||||||||||||||||||||||||||||||||
2019 | 2020 | ||||||||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Total | ||||||||||||||||||||||||||
Net income (a)(b) | $ | 817 | $ | 1,003 | $ | 965 | $ | 612 | $ | 3,397 | $ | 144 | $ | 314 | $ | 114 | $ | 572 | |||||||||||||||||
add: LCM charges (benefits), after-tax | — | — | — | 25 | 25 | 351 | (88) | (133) | 130 | ||||||||||||||||||||||||||
add: Impairment of long-lived assets, after-tax | — | — | — | — | — | — | — | 446 | 446 | ||||||||||||||||||||||||||
Net income excluding LCM and impairment | 817 | 1,003 | 965 | 637 | 3,422 | 495 | 226 | 427 | 1,148 | ||||||||||||||||||||||||||
less: LCM (charges) benefits, after-tax | — | — | — | (25) | (25) | (351) | 88 | 133 | (130) | ||||||||||||||||||||||||||
less: Impairment of long-lived assets, after-tax | — | — | — | — | — | — | — | (446) | (446) | ||||||||||||||||||||||||||
Net income | 817 | 1,003 | 965 | 612 | 3,397 | 144 | 314 | 114 | 572 | ||||||||||||||||||||||||||
Loss (income) from discontinued operations, | — | 3 | 4 | — | 7 | (1) | 1 | — | — | ||||||||||||||||||||||||||
Income from continuing operations(a)(b) | 817 | 1,006 | 969 | 612 | 3,404 | 143 | 315 | 114 | 572 | ||||||||||||||||||||||||||
Provision for (benefit from) income taxes(b) | 203 | 169 | 136 | 140 | 648 | 75 | (32) | (125) | (82) | ||||||||||||||||||||||||||
Depreciation and amortization | 322 | 328 | 327 | 335 | 1,312 | 342 | 356 | 358 | 1,056 | ||||||||||||||||||||||||||
Interest expense, net | 86 | 76 | 81 | 85 | 328 | 86 | 121 | 119 | 326 | ||||||||||||||||||||||||||
add: LCM charges (benefits), pre-tax | — | — | — | 33 | 33 | 419 | (96) | (160) | 163 | ||||||||||||||||||||||||||
EBITDA excluding LCM | 1,428 | 1,579 | 1,513 | 1,205 | 5,725 | 1,065 | 664 | 306 | 2,035 | ||||||||||||||||||||||||||
add: Impairment of long-lived assets, pre-tax | — | — | — | — | — | — | — | 582 | 582 | ||||||||||||||||||||||||||
EBITDA excluding LCM and impairment | 1,428 | 1,579 | 1,513 | 1,205 | 5,725 | 1,065 | 664 | 888 | 2,617 | ||||||||||||||||||||||||||
less: LCM (charges) benefits, pre-tax | — | — | — | (33) | (33) | (419) | 96 | 160 | (163) | ||||||||||||||||||||||||||
less: Impairment of long-lived assets, pre-tax | — | — | — | — | — | — | — | (582) | (582) | ||||||||||||||||||||||||||
EBITDA(c) | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | $ | 760 | $ | 466 | $ | 1,872 | |||||||||||||||||
(a) The first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020, second quarter of 2020, and third quarter of 2020 include after-tax charges of $12 million, $15 million, $33 million, $29 million, $13 million, $11 million and $3 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman. | |||||||||||||||||||||||||||||||||||
(b) The third quarter of 2019 includes a non-cash benefit of $85 million, from the release of unrecognized tax benefits and associated accrued interest. | |||||||||||||||||||||||||||||||||||
(c) EBITDA for the first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020, second quarter of 2020, and third quarter of 2020 include pre-tax charges of $16 million, $19 million, $43 million, $38 million, $14 million, $16 million and $7 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman. | |||||||||||||||||||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
10/30/2020LyondellBasell to Discuss Third-Quarter Results on Friday, October 30, 2020
Source: PR Newswire
HOUSTON and LONDON, Oct. 16, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce third-quarter 2020 financial results before the U.S. market opens on Friday, October 30, followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, October 30, 2020
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyondellbasell.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at http://www.lyondellbasell.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyondellbasell.com/earnings.
Replay Information
A replay of the call will be available from 1:00 p.m. EDT October 30 until November 29. The replay dial-in numbers are:
Toll-Free: 1-888-566-0568
Toll: 1-203-369-3064
Passcode: 6541
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
10/16/2020LyondellBasell Prices Public Offering of Guaranteed Notes
Source: PR Newswire
HOUSTON and LONDON, Oct. 6, 2020 /PRNewswire/ -- LyondellBasell Industries N.V. (NYSE: LYB) ("LyondellBasell" or "we") announced today that LYB International Finance III, LLC ("LYB International Finance"), its wholly-owned subsidiary, priced a public offering (the "Offering") of $650,000,000 aggregate principal amount of Guaranteed Floating Rate Notes due 2023 (the "Floating Rate Notes"), $500,000,000 aggregate principal amount of 1.250% Guaranteed Notes due 2025 (the "2025 Notes"), $500,000,000 aggregate principal amount of 2.250% Guaranteed Notes due 2030 (the "2030 Notes"), $750,000,000 aggregate principal amount of 3.375% Guaranteed Notes due 2040 (the "2040 Notes"), $1,000,000,000 aggregate principal amount of 3.625% Guaranteed Notes due 2051 (the "2051 Notes"), and $500,000,000 aggregate principal amount of 3.800% Guaranteed Notes due 2060 (the "2060 Notes" and, together with the Floating Rate Notes, 2025 Notes, 2030 Notes, 2040 Notes, and 2051 Notes, the "Notes"). The Notes will be fully and unconditionally guaranteed by LyondellBasell. The Offering is expected to close on October 8, 2020, subject to the satisfaction of customary closing conditions. The net proceeds of the Offering are expected to be used to fund a portion of the purchase price for the recently announced 50/50 joint venture with Sasol Chemicals (USA) LLC (the "Louisiana Joint Venture"), repay a portion of the indebtedness outstanding under our Term Loan due 2022, redeem or repay up to $1 billion aggregate principal amount of our 6.0% Senior Notes due 2021, and redeem or repay up to €750 million aggregate principal amount of our 1.875% Guaranteed Notes due 2022. If the Louisiana Joint Venture is not completed on or prior to March 31, 2021, or is terminated on or prior to completion, LyondellBasell and LYB International Finance will be required to redeem all of the outstanding 2025 Notes, 2030 Notes and 2060 Notes at a redemption price equal to 101% of the aggregate principal amount of the 2025 Notes, 2030 Notes and 2060 Notes, respectively, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
J.P. Morgan Securities LLC, Barclays Capital Inc., BofA Securities, Inc. and Credit Suisse Securities (USA) LLC are acting as the joint book-running managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the "SEC"). Copies of the prospectus supplement, when available, and the accompanying base prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the prospectus supplement, when available, and the accompanying base prospectus may be obtained by calling J.P. Morgan collect at 1-212-834-4533, Barclays Capital Inc. at 1-888-603-5847, BofA Securities toll-free at 1-800-294-1322 or dg.prospectus_requests@bofa.com or Credit Suisse Securities (USA) LLC at 1-800-221-1037.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering of securities will be made only by means of a prospectus supplement, which will be filed with the SEC. This press release does not constitute a redemption or repayment notice with respect to the Senior Notes due 2021 or the Guaranteed Notes due 2022.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, the words "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. The statements in this communication relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell 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, market conditions, the results of any repayment or redemption of indebtedness with the proceeds of this offering, 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; our ability to complete the transactions described herein, including the Louisiana Joint Venture, and the timing of such transactions; the receipt of all required governmental and shareholder approvals for such transactions; our ability to achieve expected synergies from such transactions; the completion of the acquisition of joint venture assets in the future and ability to recognize the anticipated benefits thereof; uncertainties related to the extent and duration of the pandemic-related decline in demand, or other impacts due to the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of prolonged recession; future financial and operating results; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and to amend, extend, repay, service, and reduce 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" sections of the prospectus for this offering, our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarter ended March 31, 2020, which can be found on the Securities and Exchange Commission's website at www.sec.gov. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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SOURCE LyondellBasell Industries
Article Date
10/6/2020LyondellBasell to Discuss Announcement of Integrated Polyethylene Joint Venture with Sasol on Friday, October 2, 2020
Source: PR Newswire
HOUSTON and LONDON, Oct. 2, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will host a conference call on Friday, October 2 at 9:00 a.m. EDT to discuss the formation of its new joint venture with Sasol. Participants on the call will include Chief Executive Officer Bob Patel, Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.
Teleconference and Webcast Details
Friday, October 2, 2020
9:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/investorevents.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at http://www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/investorevents.
Replay Information
A replay of the call will be available from 11:00 a.m. EDT October 2 until 11:59 p.m. EDT December 2. The replay dial-in numbers are:
Toll-Free: 1-800-333-0467
Toll: 1-203-369-3627
Passcode: 3652
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
10/2/2020LyondellBasell Sustainability Report Sets Ambitious Plastic Waste Targets
Source: PR Newswire
HOUSTON and ROTTERDAM, Netherlands, Sept. 28, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today released its annual Sustainability Report with the aim of affecting positive change and is focused on three transformational areas including plastic waste, climate change, and thriving societies. LyondellBasell announced one of the most ambitious goals of the industry to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030. The report showcases LyondellBasell's strategy and ambitions for the next decade.
"LyondellBasell has been on a multi-year journey to advance the circular economy, and we have made strides in mechanical and advanced recycling, as well as producing renewable-based products," said Jim Seward, Senior Vice President Research and Development, Technology and Sustainability. "Our goals underscore what we see possible in the next decade, and our sustainability ambitions require us to adapt our business models. When viewed through the lens of technology and innovation, our track record demonstrates our capacity to advance new collaborations and partnerships for the benefit of society."
Key elements of the LyondellBasell's Sustainability Report involve taking action on several fronts. It is the company's ambition to:
Additionally, the company continues to increase recycling and work collaboratively across the value chain as evidenced by LyondellBasell CEO Bob Patel's instrumental role in the launch of the Alliance to End Plastic Waste and continued involvement as an officer of the organization. LyondellBasell is also developing advanced recycling with its MoReTec technology, has expanded its mechanical recycling product grades and color offerings through its 50/50 joint venture, Quality Circular Polymers (QCP), improved the design of plastics to increase recyclability, and worked with brand owners to increase product recyclability. Lastly, the company achieved the first parallel production of polypropylene (PP) and low-density polyethylene (LDPE) made from renewable raw materials at commercial scale.
LyondellBasell's sustainability report is available on the company website at https://www.lyondellbasell.com/en/sustainability/.
View the "We see possible" video by clicking here to better understand the LyondellBasell's approach to sustainability.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
9/28/2020LyondellBasell Successfully Starts Up New Pilot Molecular Recycling Facility
Source: PR Newswire
Company completes next step towards an industrial scale conversion of plastic waste into feedstock
ROTTERDAM, Netherlands, Sept. 8, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced the successful start-up of its MoReTec molecular recycling facility at its Ferrara, Italy, site. LyondellBasell's proprietary MoReTec advanced recycling technology aims to return post-consumer plastic waste to its molecular form for use as a feedstock for new plastic materials.
"Ending plastic waste in the environment and advancing the circular economy are key sustainability focus areas for our company," said Jim Seward, LyondellBasell Senior Vice President of Research & Development (R&D), Technology and Sustainability. "With our advanced plastics recycling technology, we return larger volumes of plastic waste back into the value chain and produce new materials for high-quality applications, retaining their value for as long as possible."
The new plastic materials created by LyondellBasell's MoReTec technology can be used in food packaging and healthcare items, which must meet strict regulatory requirements.
Leveraging our global technology footprint
LyondellBasell conducts base research to lead the polymers industry toward advanced plastics recycling. In July 2018, LyondellBasell announced a collaborative effort with Germany's Karlsruhe Institute of Technology (KIT) to advance its molecular recycling efforts. This collaboration proved the efficiency of the MoReTec technology at laboratory scale and, in October 2019 the company announced the construction of the Ferrara pilot plant. Today, the company's research and development teams in Germany, Italy and United States are actively working to explore potential commercial-scale applications.
The pilot plant is capable of processing between 5 and 10 kilograms (kg) of household plastic waste per hour and builds on our research to date. The pilot aims to understand the interaction of various waste types in the molecular recycling process, test the various catalysts, and confirm the process temperature and time needed to decompose the plastic waste into molecules. The goal is to have this completed over the next couple of years and then plan for an industrial scale unit.
The development of MoReTec technology is part of LyondellBasell's commitment to plastics-to-plastics conversion. The technology development compliments the company's other circular solutions, which help reduce plastic waste and advance the circular economy, including:
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
Cautionary statement
The statements in this release 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, our ability to develop sustainable solutions for plastic waste, successful operation of the pilot plant described, and our ability to develop commercial-scale applications. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" sections of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarter ended March 31, 2020, 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.
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SOURCE LyondellBasell Industries
Article Date
9/8/20208/21/2020 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Aug. 21, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.05 per share, to be paid September 8, 2020 to shareholders of record August 31, 2020, with an ex-dividend date of August 28, 2020.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
8/21/2020LyondellBasell Reports Second Quarter 2020 Earnings
Source: PR Newswire
HOUSTON and LONDON, July 31, 2020 /PRNewswire/ --
Second Quarter 2020 Highlights
Comparisons with the prior quarter and second quarter 2019 are available in the following table:
Table 1 - Earnings Summary | |||||
Millions of U.S. dollars (except share data) | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Sales and other operating revenues | $5,546 | $7,494 | $9,048 | $13,040 | $17,826 |
Net income | 314 | 144 | 1,003 | 458 | 1,820 |
Diluted earnings per share | 0.94 | 0.42 | 2.70 | 1.36 | 4.88 |
Weighted average diluted share count | 334 | 334 | 370 | 334 | 371 |
EBITDA (a) | 760 | 646 | 1,579 | 1,406 | 3,007 |
Excluding LCM1 | |||||
Net income | $226 | $495 | $1,003 | $721 | $1,820 |
Diluted earnings per share | 0.68 | 1.47 | 2.70 | 2.15 | 4.88 |
LCM (benefits) charges, pre-tax | (96) | 419 | — | 323 | — |
EBITDA | 664 | 1,065 | 1,579 | 1,729 | 3,007 |
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of net income to EBITDA, including and excluding LCM. | ||||||
1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from certain financial information can be found under "Information Related to Financial Measures." | ||||||
LyondellBasell Industries (NYSE: LYB) today announced net income for the second quarter 2020 of $0.3 billion, or $0.94 per share. The second quarter 2020 included a $88 million non-cash, inventory valuation benefit and $11 million of integration costs, net of tax, that impacted earnings by $0.26 per share and $0.03 per share, respectively. Second quarter 2020 EBITDA was $0.8 billion, or $0.7 billion excluding LCM.
"LyondellBasell demonstrated the value of our core strengths in operational excellence, cost management and capital discipline by delivering resilient results despite declines in economic activity associated with the global response to COVID-19. Our Olefins & Polyolefins businesses continued to benefit from strong demand for polymers used in consumer-driven packaging and healthcare applications. As expected, our Intermediates & Derivatives, Refining and Advanced Polymer Solutions segments were impacted by significant reductions in demand for transportation fuels and polymers utilized in automotive manufacturing and other durable goods markets. We believe the pandemic-driven decline in demand bottomed during the second quarter. As the quarter progressed, demand and prices for polyethylene exports from North America improved and the U.S. ethane feedstock advantage returned during May and June with rebounding crude oil prices," said Bob Patel, LyondellBasell CEO.
"The company applied our experience with the first quarter progression of events in Asia to nimbly manage our global businesses and generate $1.3 billion of cash from operating activities during an extremely challenging second quarter. We moved quickly to strengthen our balance sheet and bolster liquidity. With our substantial and highly efficient cash generation, LyondellBasell remains well-positioned to navigate through these volatile market conditions," Patel said.
OUTLOOK
"Demand for our products is improving with increased economic activity. In June and July, we raised operating rates and prices in response to increased demand for North American polyethylene exports to Asia. With increased mobility and reductions in fuel inventories, we expect improving demand for our Refining and Oxyfuels & Related Products businesses. Similarly, our Advanced Polymer Solutions segment is benefiting from rebounding demand for our plastics used in automotive manufacturing."
"We remain focused on delivering the strategy we outlined in our Investor Day last September. Our cash generation is strong. We expect the recent startup of our Hyperzone polyethylene capacity, the establishment of new Asian joint ventures and the integration of our A. Schulman acquisition will all add to our profitability. We accelerated our plans to reduce capital expenditures and are aggressively managing our inventories to prioritize liquidity and maximize cash flow. Our focus on funding the dividend while remaining committed to an investment grade balance sheet continues to be the foundation of our capital deployment strategy. Despite the volatile macro-economic environment, we believe LyondellBasell's leading portfolio, advantaged positions and disciplined approach will enable us to continue capturing opportunities and delivering resilient results through business cycles," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology.
Comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $107 | $238 | $504 | $345 | $888 |
EBITDA | 248 | 366 | 635 | 614 | 1,151 |
LCM (benefits) charges, pre-tax | (38) | 111 | — | 73 | — |
EBITDA excluding LCM (benefits) charges | 210 | 477 | 635 | 687 | 1,151 |
Three months ended June 30, 2020 versus three months ended March 31, 2020 - EBITDA decreased $267 million versus the first quarter 2020, excluding a favorable variance of $149 million due to LCM inventory charges. Second quarter 2020 olefins results decreased about $230 million versus the first quarter 2020 driven by a decline in margin and volume. Ethylene margin decreased primarily due to lower co-product prices. Ethylene volume decreased due to lower demand. Polyolefins results decreased approximately $45 million due to lower margins and volumes as a result of reduced demand.
Three months ended June 30, 2020 versus three months ended June 30, 2019 - EBITDA decreased $425 million versus the second quarter 2019, excluding a favorable variance of $38 million due to a second quarter 2020 LCM inventory benefit. Compared with the prior period, olefins results decreased about $235 million driven by decreases in both margin and volume. Ethylene margin decreased primarily due to lower co-product prices. Ethylene volume decreased primarily due to lower demand. Polyolefin results decreased approximately $185 million driven by lower margins partially offset by a small increase in polyethylene volume. Margins declined primarily due to a spread decline in polyethylene over ethylene and polypropylene over propylene of about $280 per ton and $120 per ton, respectively.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins and Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $81 | $135 | $226 | $216 | $412 |
EBITDA | 185 | 189 | 331 | 374 | 627 |
LCM charges, pre-tax | 34 | 36 | — | 70 | — |
EBITDA excluding LCM charges | 219 | 225 | 331 | 444 | 627 |
Three months ended June 30, 2020 versus three months ended March 31, 2020 - EBITDA decreased $6 million versus the first quarter 2020, excluding a favorable variance of $2 million due to LCM inventory charges. Second quarter 2020 olefins results decreased about $75 million versus the first quarter 2020 driven by decrease in margin and volume. Margin decreased with reductions in ethylene and co-product prices outpacing lower feedstock costs. Volume decreased following strong production in the prior quarter coupled with lower demand in the second quarter. Combined polyolefins results increased more than $20 million driven by improved margins partially offset by a decrease in polypropylene volumes related to reduced demand from automotive and other durable goods markets. Joint venture equity income increased approximately $55 million due to higher margins.
Three months ended June 30, 2020 versus three months ended June 30, 2019 - EBITDA decreased $112 million versus the second quarter 2019, excluding an unfavorable variance of $34 million due to second quarter 2020 LCM inventory charges. Compared to the prior period, olefins results decreased approximately $90 million due to lower margin and volume. Margin decreased driven by lower ethylene prices, partially offset by lower feedstock costs. Volume decreased due to lower demand. Combined polyolefins results decreased about $25 million primarily due to lower margins, partially offset by increased polyethylene volume.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $24 | $131 | $372 | $155 | $686 |
EBITDA | 101 | 203 | 448 | 304 | 838 |
LCM charges, pre-tax | 20 | 78 | — | 98 | — |
EBITDA excluding LCM charges | 121 | 281 | 448 | 402 | 838 |
Three months ended June 30, 2020 versus three months ended March 31, 2020 - EBITDA decreased $160 million versus the first quarter 2020, excluding a favorable variance of $58 million due to LCM inventory charges. Second quarter 2020 Propylene Oxide & Derivatives results decreased about $55 million due to lower volumes driven by reduced demand from automotive, construction and furniture end markets. Intermediate Chemicals results were relatively unchanged. Oxyfuels & Related Products results decreased approximately $95 million with oxyfuels margins compressed by lower gasoline prices and volume declines due to lower demand for automotive fuels and isobutylene.
Three months ended June 30, 2020 versus three months ended June 30, 2019 - EBITDA decreased $327 million versus the second quarter 2019, excluding an unfavorable variance of $20 million due to second quarter 2020 LCM inventory charges. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $40 million driven by lower volumes due to reduced demand and lower margins. Intermediate Chemicals results decreased $130 million. Margin declined, primarily in styrene, and volumes were lower due to planned maintenance and reduced demand. Oxyfuels & Related Products results decreased about $145 million driven by lower margins due to lower gasoline prices. Volume declines due to reduced demand were muted by impacts from a third party terminal incident that reduced volumes during the first half of 2019.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1.
Table 5 - Advanced Polymer Solutions Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $(83) | $70 | $91 | $(13) | $210 |
EBITDA | (44) | 113 | 120 | 69 | 268 |
LCM charges, pre-tax | 67 | 2 | — | 69 | — |
EBITDA excluding LCM charges | 23 | 115 | 120 | 138 | 268 |
Three months ended June 30, 2020 versus three months ended March 31, 2020 - EBITDA decreased $92 million versus the first quarter 2020, excluding an unfavorable variance of $65 million due to LCM inventory charges. Second quarter 2020 integration costs related to the acquisition of A. Schulman were relatively unchanged, impacting the quarter by $16 million. Compared with the prior period, Compounding & Solutions results decreased approximately $75 million primarily driven by lower volumes due to the impact of decreased demand for polymer compounds from the automotive sector. Advanced Polymers results decreased about $10 million due to lower demand in construction and automotive end markets.
Three months ended June 30, 2020 versus three months ended June 30, 2019 - EBITDA decreased $97 million compared to the second quarter 2019, excluding an unfavorable variance of $67 million due to second quarter 2020 LCM inventory charges. Integration costs related to the acquisition were relatively unchanged in the second quarter 2020 versus the second quarter 2019. Compared with the prior period, Compounding & Solutions results decreased $85 million driven by lower automotive demand. Advanced Polymers results decreased approximately $10 million due to reduced demand.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income (loss) | $116 | $(314) | $(110) | $(198) | $(169) |
EBITDA | 165 | (272) | (66) | (107) | (81) |
LCM (benefits) charges, pre-tax | (179) | 192 | — | 13 | — |
EBITDA excluding LCM (benefits) charges | (14) | (80) | (66) | (94) | (81) |
Three months ended June 30, 2020 versus three months ended March 31, 2020 - EBITDA increased $66 million versus the first quarter 2020, excluding a favorable variance of $371 million due to LCM inventory charges. Margin increased due to coke and sulfur co-product prices remaining stable relative to declining crude oil costs, hedge gains and the resumption of our fluid catalytic cracker operations in April, partially offset by a decrease in the Maya 2-1-1 industry benchmark crack spread of $3.95 per barrel to $13.27 per barrel. The Houston Refinery operated at 237,000 barrels per day, 11,000 barrels per day higher than prior period.
Three months ended June 30, 2020 versus three months ended June 30, 2019 - EBITDA increased $52 million versus the second quarter 2019, excluding a favorable variance of $179 million due to second quarter 2020 LCM benefit. Margin increased due to coke and sulfur co-product prices maintaining relative to crude price and hedge gains, partially offset by a decrease in the Maya 2-1-1 industry benchmark crack spread of $5.73 per barrel. Crude throughput decreased by 24,000 barrels per day due to unplanned maintenance in the first weeks of April 2020 and rate reductions in the second quarter 2020 in response to low demand for refined products.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $104 | $47 | $96 | $151 | $169 |
EBITDA | 112 | 56 | 107 | 168 | 190 |
LCM charges, pre-tax | — | — | — | — | — |
EBITDA excluding LCM charges | 112 | 56 | 107 | 168 | 190 |
Three months ended June 30, 2020 versus three months ended March 31, 2020 - EBITDA increased $56 million versus the first quarter 2020 primarily due to an increase in licensing revenue. Catalyst volumes increased in the second quarter due to customers stocking inventories early in the pandemic.
Three months ended June 30, 2020 versus three months ended June 30, 2019 - EBITDA increased $5 million versus the second quarter 2019. Catalyst volumes and margins increased due to customers stocking inventories early in the pandemic, partially offset by a decrease in licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $588 million during the second quarter 2020. Our cash and liquid investment balance was $3 billion at June 30, 2020. There were 334 million common shares outstanding as of June 30, 2020. The company paid dividends of $350 million during the second quarter 2020.
Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable GAAP measure, to EBITDA are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call July 31 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 1-800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 1:00 p.m. EDT July 31 until September 1 at 9:59 a.m. EDT. The replay dial-in numbers are 1-800-879-4299 (U.S.) and 1-203-369-3561 (international). The passcode for each is 7410.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
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; the impacts of the COVID-19 pandemic in geographic regions or markets served us, or where our operations are located, including the risk of prolonged recession; 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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results; 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" sections of our Form 10-K for the year ended December 31, 2019, and our Form 10-Q for the quarter ended March 31, 2020, 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.
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 EBITDA, EBITDA excluding LCM and diluted earnings per share excluding LCM. 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 also present EBITDA exclusive of adjustments for "lower of cost or market" ("LCM"), 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 reduces the value of inventory to market value. This adjustment is related to the recent decline in pricing for many of our raw material and finished goods inventories. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover.
Additional operating and financial information, including reconciliations of non-GAAP measures to the most directly comparable GAAP measure, may be found in Table 9 at the end of this release and on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | |||||||||||||||||||||||||
2019 | 2020 | ||||||||||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | |||||||||||||||||
Sales and other operating revenues: | |||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,111 | $ | 2,114 | $ | 2,137 | $ | 2,073 | $ | 8,435 | $ | 1,792 | $ | 1,433 | $ | 3,225 | |||||||||
Olefins & Polyolefins - EAI | 2,535 | 2,505 | 2,309 | 2,155 | 9,504 | 2,224 | 1,702 | 3,926 | |||||||||||||||||
Intermediates & Derivatives | 1,894 | 2,062 | 2,046 | 1,832 | 7,834 | 1,770 | 1,157 | 2,927 | |||||||||||||||||
Advanced Polymer Solutions | 1,339 | 1,258 | 1,186 | 1,067 | 4,850 | 1,096 | 705 | 1,801 | |||||||||||||||||
Refining | 1,882 | 2,180 | 2,134 | 2,055 | 8,251 | 1,448 | 919 | 2,367 | |||||||||||||||||
Technology | 141 | 173 | 146 | 203 | 663 | 122 | 177 | 299 | |||||||||||||||||
Other/Eliminations | (1,124) | (1,244) | (1,236) | (1,206) | (4,810) | (958) | (547) | (1,505) | |||||||||||||||||
Continuing operations | $ | 8,778 | $ | 9,048 | $ | 8,722 | $ | 8,179 | $ | 34,727 | $ | 7,494 | $ | 5,546 | $ | 13,040 | |||||||||
Operating income (loss): | |||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 384 | $ | 504 | $ | 524 | $ | 365 | $ | 1,777 | $ | 238 | $ | 107 | $ | 345 | |||||||||
Olefins & Polyolefins - EAI | 186 | 226 | 202 | 59 | 673 | 135 | 81 | 216 | |||||||||||||||||
Intermediates & Derivatives | 314 | 372 | 314 | 249 | 1,249 | 131 | 24 | 155 | |||||||||||||||||
Advanced Polymer Solutions | 119 | 91 | 67 | 13 | 290 | 70 | (83) | (13) | |||||||||||||||||
Refining | (59) | (110) | (52) | (19) | (240) | (314) | 116 | (198) | |||||||||||||||||
Technology | 73 | 96 | 73 | 132 | 374 | 47 | 104 | 151 | |||||||||||||||||
Other | — | (2) | (4) | (1) | (7) | (3) | (10) | (13) | |||||||||||||||||
Continuing operations | $ | 1,017 | $ | 1,177 | $ | 1,124 | $ | 798 | $ | 4,116 | $ | 304 | $ | 339 | $ | 643 | |||||||||
Depreciation and amortization: | |||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 115 | $ | 117 | $ | 118 | $ | 120 | $ | 470 | $ | 124 | $ | 133 | $ | 257 | |||||||||
Olefins & Polyolefins - EAI | 53 | 52 | 51 | 52 | 208 | 53 | 53 | 106 | |||||||||||||||||
Intermediates & Derivatives | 72 | 74 | 75 | 74 | 295 | 70 | 74 | 144 | |||||||||||||||||
Advanced Polymer Solutions | 29 | 30 | 32 | 42 | 133 | 44 | 39 | 83 | |||||||||||||||||
Refining | 43 | 44 | 41 | 41 | 169 | 42 | 49 | 91 | |||||||||||||||||
Technology | 10 | 11 | 10 | 6 | 37 | 9 | 8 | 17 | |||||||||||||||||
Continuing operations | $ | 322 | $ | 328 | $ | 327 | $ | 335 | $ | 1,312 | $ | 342 | $ | 356 | $ | 698 | |||||||||
EBITDA:(a) | |||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 516 | $ | 635 | $ | 653 | $ | 498 | $ | 2,302 | $ | 366 | $ | 248 | $ | 614 | |||||||||
Olefins & Polyolefins - EAI | 296 | 331 | 291 | 144 | 1,062 | 189 | 185 | 374 | |||||||||||||||||
Intermediates & Derivatives | 390 | 448 | 390 | 329 | 1,557 | 203 | 101 | 304 | |||||||||||||||||
Advanced Polymer Solutions | 148 | 120 | 102 | 54 | 424 | 113 | (44) | 69 | |||||||||||||||||
Refining | (15) | (66) | (6) | 22 | (65) | (272) | 165 | (107) | |||||||||||||||||
Technology | 83 | 107 | 83 | 138 | 411 | 56 | 112 | 168 | |||||||||||||||||
Other | 10 | 4 | — | (13) | 1 | (9) | (7) | (16) | |||||||||||||||||
Continuing operations | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | $ | 760 | $ | 1,406 | |||||||||
Capital, turnarounds and IT deferred spending: | |||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 276 | $ | 257 | $ | 295 | $ | 271 | $ | 1,099 | $ | 204 | $ | 190 | $ | 394 | |||||||||
Olefins & Polyolefins - EAI | 64 | 39 | 45 | 65 | 213 | 42 | 34 | 76 | |||||||||||||||||
Intermediates & Derivatives | 179 | 238 | 317 | 330 | 1,064 | 353 | 305 | 658 | |||||||||||||||||
Advanced Polymer Solutions | 16 | 11 | 14 | 18 | 59 | 13 | 10 | 23 | |||||||||||||||||
Refining | 43 | 53 | 41 | 12 | 149 | 16 | 21 | 37 | |||||||||||||||||
Technology | 17 | 17 | 26 | 34 | 94 | 30 | 26 | 56 | |||||||||||||||||
Other | 4 | 7 | 4 | 1 | 16 | 2 | 2 | 4 | |||||||||||||||||
Continuing operations | $ | 599 | $ | 622 | $ | 742 | $ | 731 | $ | 2,694 | $ | 660 | $ | 588 | $ | 1,248 | |||||||||
(a) See Table 9 for the reconciliation of net income to EBITDA, including and excluding LCM. |
Table 9 - Reconciliation of Net Income to EBITDA, including and excluding LCM | |||||||||||||||||||||||
2019 | 2020 | ||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | |||||||||||||||
Net income (a)(b) | $ | 817 | $ | 1,003 | $ | 965 | $ | 612 | $ | 3,397 | $ | 144 | $ | 314 | $ | 458 | |||||||
add: LCM charges (benefits), after-tax | — | — | — | 25 | 25 | 351 | (88) | 263 | |||||||||||||||
Net income excluding LCM charges (benefits) | 817 | 1,003 | 965 | 637 | 3,422 | 495 | 226 | 721 | |||||||||||||||
less: LCM (charges) benefits, after-tax | — | — | — | (25) | (25) | (351) | 88 | (263) | |||||||||||||||
Net income | 817 | 1,003 | 965 | 612 | 3,397 | 144 | 314 | 458 | |||||||||||||||
Loss (income) from discontinued operations, | — | 3 | 4 | — | 7 | (1) | 1 | — | |||||||||||||||
Income from continuing operations(a)(b) | 817 | 1,006 | 969 | 612 | 3,404 | 143 | 315 | 458 | |||||||||||||||
Provision for (benefit from) income taxes(b) | 203 | 169 | 136 | 140 | 648 | 75 | (32) | 43 | |||||||||||||||
Depreciation and amortization | 322 | 328 | 327 | 335 | 1,312 | 342 | 356 | 698 | |||||||||||||||
Interest expense, net | 86 | 76 | 81 | 85 | 328 | 86 | 121 | 207 | |||||||||||||||
add: LCM charges (benefits), pre-tax | — | — | — | 33 | 33 | 419 | (96) | 323 | |||||||||||||||
EBITDA excluding LCM charges (benefits) | 1,428 | 1,579 | 1,513 | 1,205 | 5,725 | 1,065 | 664 | 1,729 | |||||||||||||||
less: LCM (charges) benefits, pre-tax | — | — | — | (33) | (33) | (419) | 96 | (323) | |||||||||||||||
EBITDA(c) | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | $ | 760 | $ | 1,406 | |||||||
(a) The first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020 and second quarter of 2020 include after-tax charges of $12 million, $15 million, $33 million, $29 million, $13 million and $11 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman. | |||||||||||||||||||||||||||||||
(b) The third quarter of 2019 includes a non-cash benefit of $85 million, from the release of unrecognized tax benefits and associated accrued interest. | |||||||||||||||||||||||||||||||
(c) EBITDA for the first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020 and second quarter of 2020 include pre-tax charges of $16 million, $19 million, $43 million, $38 million, $14 million and $16 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman. |
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SOURCE LyondellBasell Industries
Article Date
7/31/2020LyondellBasell to Discuss Second-Quarter Results on Friday, July 31, 2020
Source: PR Newswire
HOUSTON and LONDON, July 17, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce second-quarter 2020 financial results before the U.S. market opens on Friday, July 31, followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, July 31, 2020
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at http://www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 1:00 p.m. EDT July 31 until 9:59 p.m. EDT September 1. The replay dial-in numbers are:
Toll-Free: 1-800-879-4299
Toll: 1-203-369-3561
Passcode: 7410
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
7/17/20206/2/2020 - LyondellBasell Named Responsible Care® Company of the Year by the American Chemistry Council
LyondellBasell Named Responsible Care® Company of the Year by the American Chemistry Council
Source: PR Newswire
HOUSTON, June 2, 2020 /PRNewswire/ -- In recognition of its innovative practices and leadership in the areas of environmental, health, safety and security, LyondellBasell (NYSE: LYB) today received the American Chemistry Council's (ACC) highest distinction, the Responsible Care® Company of the Year Award.
"Responsible Care is a program based on leadership, safety and continual improvement in our facilities, operations and products. It's a commitment that helps us to operate with health, safety, security and environmental protection as our top priorities," said ACC President and CEO Chris Jahn. "Today, we recognize LyondellBasell for its outstanding leadership and dedication to the tenets of Responsible Care with ACC's highest honor."
ACC presented the award during its first virtual annual meeting, recognizing LyondellBasell's application of Responsible Care requirements. This is LyondellBasell's second time to be named ACC's Responsible Care® Company of the Year, having previously received the award in 2014.
"Year after year our global team has delivered top decile performance in occupational safety and top quartile performance in process safety among our peer companies. In 2019, LyondellBasell experienced its best year ever for environmental performance," said Bob Patel LyondellBasell CEO. "This honor is a direct reflection of the dedication of our entire LyondellBasell team, and their recognition that the health and safety of our people and the communities where we operate are our highest priorities."
LyondellBasell's Operational Excellence and Product Stewardship systems aim to continually improve health, safety, security and environmental performance. Since 2017, LyondellBasell has reduced its Total Recordable Injury Rate at its ACC member sites by 68 percent and reduced reportable environmental events by 26 percent.
In 2019, the company also implemented key sustainability initiatives. This includes expansion of a mechanical recycling project that transforms post-consumer plastic waste into high-quality polymers to make new products, and production of bio-based plastic made from renewable raw materials. LyondellBasell is seeking opportunities to grow its sustainable product portfolio in the U.S. and other parts of the world.
To be eligible for the Company of the Year Award, ACC members must demonstrate they have met and surpassed Responsible Care performance criteria in their U.S. operations, including: achieving a safety performance rating in the top 10 percent of companies in their size category, with no significant process events in the previous year; positive performance measures in the areas of transportation safety, process safety and emissions reduction; and demonstrated improvements in EHS&S performance, product stewardship, distribution safety and emergency preparedness.
Since 1988, Responsible Care companies have reduced hazardous releases to the air, land and water by 84 percent, improved energy efficiency overall, and have an employee safety record five times better than the U.S. manufacturing sector as a whole, and almost three times better than the business of chemistry overall.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
6/2/20205/29/2020 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, May 29, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.05 per share, to be paid June 15, 2020 to shareholders of record June 8, 2020, with an ex-dividend date of June 5, 2020.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
5/29/2020LyondellBasell to Address Goldman Sachs Industrials & Materials Virtual Conference
Source: PR Newswire
HOUSTON and LONDON, May 12, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Bob Patel, chief executive officer, and Michael McMurray, executive vice president and chief financial officer, will address investors at the Goldman Sachs Industrials & Materials Virtual Conference at 1:50 p.m. EST May 15.
Webcast and Presentation Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
5/12/2020LyondellBasell Reports First Quarter 2020 Earnings
Source: PR Newswire
HOUSTON and LONDON, May 1, 2020 /PRNewswire/ --
First Quarter 2020 Highlights
Comparisons with the prior quarter and first quarter 2019 are available in the following table:
Table 1 - Earnings Summary | ||||
Millions of U.S. dollars (except share data) | Three Months Ended | |||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||
Sales and other operating revenues | $7,494 | $8,179 | $8,778 | |
Net income | 144 | 612 | 817 | |
Diluted earnings per share | 0.42 | 1.83 | 2.19 | |
Weighted average diluted share count | 334 | 334 | 372 | |
EBITDA (a) | 646 | 1,172 | 1,428 | |
Excluding LCM | ||||
Net income | $495 | $637 | $817 | |
Diluted earnings per share | 1.47 | 1.90 | 2.19 | |
LCM charges, pre-tax | 419 | 33 | — | |
EBITDA | 1,065 | 1,205 | 1,428 | |
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of net income to EBITDA, including and excluding LCM. | |||
1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from certain financial information can be found under "Information Related to Financial Measures." | |||
LyondellBasell Industries (NYSE: LYB) today announced net income for the first quarter 2020 of $0.1 billion, or $0.42 per share. The first quarter 2020 included a $351 million non-cash, inventory valuation charge (LCM) and $13 million of integration costs, net of tax, that impacted earnings by $1.05 per share and $0.04 per share, respectively. First quarter 2020 EBITDA was $0.6 billion, or $1.1 billion excluding LCM. Integration activities related to the 2018 acquisition of A. Schulman are on schedule to achieve $200 million in forward annual run-rate synergies by the close of the third quarter 2020.
"Despite the dual challenges of low oil prices and impacts from the coronavirus pandemic, LyondellBasell delivered resilient results and moved forward on our strategic initiatives during the first quarter. Our two Olefins & Polyolefins segments experienced strong consumer-driven demand for polymers used in packaging and medical products which contributed to higher underlying profitability for the combined segments relative to the prior quarter. We advanced on initiatives to increase our long-term profitability, including successfully beginning production at our 500,000 ton high-density polyethylene plant using our next-generation Hyperzone technology and signing definitive agreements with Bora to build an integrated olefins and polyolefins joint venture," said Bob Patel, LyondellBasell CEO.
"During March, global initiatives to limit the spread of COVID-19 resulted in falling demand for transportation fuels that sharply reduced margins for our oxyfuels and gasoline produced in the Intermediates & Derivatives and Refining segments. Automotive manufacturing shutdowns diminished typical seasonal improvements for our Advanced Polymer Solutions segment where more than one third of the segment's product volumes are utilized in the automotive sector. In response, we have temporarily halted production at several relatively small plants in our APS segment serving automotive end markets. While our major facilities are all operating, we have appropriately reduced rates across our system to match decreased customer demand.
"We are navigating through these challenging times by finding benefits from our core strengths in operational excellence, cost management and capital discipline. Our significant global feedstock flexibility serves us well during periods of volatile raw material prices. We have taken early, proactive measures to further strengthen our position by maximizing cash generation and reducing expenditures while increasing liquidity to ensure we remain well-positioned through these events," Patel said.
OUTLOOK
"The effects from the coronavirus pandemic, low crude oil pricing and a slowing economy will increasingly impact our businesses during the second quarter. In April and May, our order books indicate strong ongoing demand for our polyolefins used in consumer packaging and medical applications. Weak demand from markets for industrial and durable products is expected to persist. Our Refining and Oxyfuels & Related Products businesses will be impacted by significantly lower demand for transportation fuels.
"We are taking actions to manage risk by accelerating cost savings initiatives, aggressively managing working capital, reducing 2020 capital expenditures by $500 million and increasing liquidity to over $5 billion during April. Our dividend and our investment grade balance sheet both play integral roles in our shareholder value proposition and we are committed to maintaining a disciplined approach to capital allocation with a focus on funding our dividend. In the event of a prolonged or deeper downturn, we will act pragmatically and evaluate all prudent options. While it is too early to predict the magnitude and duration of the downturn, we entered this crisis from a position of strength and we believe we are well-positioned to navigate this volatile environment and prepare the company for an eventual recovery of the economy," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology.
Comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview | |||||
Millions of U.S. dollars | Three Months Ended | ||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | |||
Operating income | $238 | $365 | $384 | ||
EBITDA | 366 | 498 | 516 | ||
LCM charges, pre-tax | 111 | 25 | — | ||
EBITDA excluding LCM adjustments | 477 | 523 | 516 | ||
Three months ended March 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $46 million versus the fourth quarter 2019, excluding an unfavorable variance of $86 million due to LCM inventory charges. First quarter 2020 results decreased approximately $20 million due to inventory valuation changes relative to the prior period. Olefins results decreased about $110 million versus the fourth quarter 2019 driven by a decline in margin. Ethylene margin decreased as a lower ethylene price was partially offset by a decrease in feedstock prices. Ethylene volume decreased due to planned maintenance. Polyolefins results increased approximately $95 million with an improvement in margin and volume. Margins increased mainly in polyethylene with a spread increase over ethylene of more than $105 per ton. Joint venture equity income decreased about $10 million.
Three months ended March 31, 2020 versus three months ended March 31, 2019 - EBITDA decreased $39 million versus the first quarter 2019, excluding an unfavorable variance of $110 million due to LCM inventory charges. Compared with the prior period, olefins results increased approximately $80 million driven by an increase in margin. Ethylene margin expanded primarily due to reduced feedstock prices, partially offset by a lower ethylene price. Ethylene volume decreased due to planned maintenance. Polyolefin results decreased about $110 million driven by lower margins partially offset by an increase in polyethylene volume. Margins declined primarily due to a spread decline in polyethylene over ethylene and polypropylene over propylene of about $185 per ton and $105 per ton, respectively. Joint venture equity income decreased approximately $10 million.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins and Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview | ||||
Millions of U.S. dollars | Three Months Ended | |||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||
Operating income | $135 | $59 | $186 | |
EBITDA | 189 | 144 | 296 | |
LCM charges, pre-tax | 36 | — | — | |
EBITDA excluding LCM adjustments | 225 | 144 | 296 | |
Three months ended March 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $81 million versus the fourth quarter 2019, excluding an unfavorable variance of $36 million due to LCM inventory charges. First quarter 2020 results decreased approximately $25 million due to inventory valuation changes relative to the prior period. Olefins results increased more than $135 million versus the fourth quarter 2019 driven by an increase in ethylene margin due to lower feedstock costs. Combined polyolefins results were relatively unchanged with an increase in volumes, offset by a decrease in margins. Joint venture equity income decreased approximately $35 million due to lower margins and volumes.
Three months ended March 31, 2020 versus three months ended March 31, 2019 - EBITDA decreased $71 million, versus the first quarter 2019, excluding an unfavorable variance of $36 million due to LCM inventory charges. Compared to the prior period, olefins results increased more than $45 million with an improvement in both volume and margin. Volume increased driven by improved reliability with unplanned maintenance impacting the first quarter 2019. Ethylene margin expanded primarily due to reduced feedstock prices, partially offset by a lower ethylene price. Combined polyolefins results decreased approximately $60 million due to lower spreads. Joint venture equity income decreased about $55 million due to lower margins and volumes.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview | ||||
Millions of U.S. dollars | Three Months Ended | |||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||
Operating income | $131 | $249 | $314 | |
EBITDA | 203 | 329 | 390 | |
LCM charges, pre-tax | 78 | — | — | |
EBITDA excluding LCM adjustments | 281 | 329 | 390 | |
Three months ended March 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $48 million versus the fourth quarter 2019, excluding an unfavorable variance of $78 million due to LCM inventory charges. Compared with the prior period, Propylene Oxide & Derivatives results increased about $25 million due to higher volumes and margins. Intermediate Chemicals results increased $15 million driven by an increase in margins, partially offset by lower volume as result of planned maintenance. Oxyfuels & Related Products results decreased approximately $80 million driven by lower product prices.
Three months ended March 31, 2020 versus three months ended March 31, 2019 - EBITDA decreased $109 million versus the first quarter 2019, excluding an unfavorable variance of $78 million due to LCM inventory charges. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $20 million due to reduced derivative margins. Intermediate Chemicals results decreased about $100 million. Margins declined, primarily in styrene, and volumes were lower due to planned and unplanned maintenance activities. Oxyfuels & Related Products results increased $20 million with higher volumes and an improvement in margin due to lower butane prices.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1.
Table 5 - Advanced Polymer Solutions Financial Overview | ||||
Millions of U.S. dollars | Three Months Ended | |||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||
Operating income | $70 | $13 | $119 | |
EBITDA | 113 | 54 | 148 | |
LCM charges, pre-tax | 2 | 8 | — | |
EBITDA excluding LCM adjustments | 115 | 62 | 148 | |
Three months ended March 31, 2020 versus three months ended December 31, 2019 - EBITDA increased $53 million versus the fourth quarter 2019, excluding a favorable variance of $6 million due to LCM inventory charges. First quarter 2020 results decreased approximately $15 million due to inventory valuation changes relative to the prior period. Integration costs related to the acquisition of A. Schulman were $24 million lower in the first quarter 2020 versus the fourth quarter 2019. Compared with the prior period, Compounding & Solutions results increased approximately $30 million due to higher margins and volumes. Margins improved primarily for polypropylene compounds and engineered plastics. Volumes increased in most businesses due to seasonal demand partially offset by the impact of decreased automotive demand related to COVID-19 in March. Advanced Polymers results improved about $10 million driven by seasonal construction demand.
Three months ended March 31, 2020 versus three months ended March 31, 2019 - EBITDA decreased $33 million versus the first quarter 2019, excluding an unfavorable variance of $2 million due to LCM inventory charges. Integration costs related to the acquisition were relatively unchanged in the first quarter 2020 versus the first quarter 2019. Compared with the prior period, Compounding & Solutions results decreased $30 million primarily driven by lower demand due continued low automotive demand and the impact of COVID-19. Advanced Polymers results were relatively unchanged.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview | ||||
Millions of U.S. dollars | Three Months Ended | |||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||
Operating income (loss) | $(314) | $(19) | $(59) | |
EBITDA | (272) | 22 | (15) | |
LCM charges, pre-tax | 192 | — | — | |
EBITDA excluding LCM adjustments | (80) | 22 | (15) | |
Three months ended March 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $102 million versus the fourth quarter 2019, excluding an unfavorable variance of $192 million due to LCM inventory charges. Margin declined due to the inability to upgrade products during an unplanned catalytic cracker outage and a decrease in the Maya 2-1-1 industry benchmark crack of $2.23 per barrel to $17.21 per barrel. The Houston Refinery operated at 226,000 barrels per day, 41,000 barrels per day lower than the prior period due to unplanned maintenance.
Three months ended March 31, 2020 versus three months ended March 31, 2019 - EBITDA decreased $65 million versus the first quarter 2019, excluding an unfavorable variance of $192 million due to LCM inventory charges. Margin declined driven by the inability to upgrade products during an unplanned outage, partially offset by a higher Maya 2-1-1 industry benchmark crack of $3.66 per barrel to $17.21 per barrel. Crude throughput decreased by 33,000 barrels per day.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview | ||||
Millions of U.S. dollars | Three Months Ended | |||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||
Operating income | $47 | $132 | $73 | |
EBITDA | 56 | 138 | 83 | |
LCM charges, pre-tax | — | — | — | |
EBITDA excluding LCM adjustments | 56 | 138 | 83 | |
Three months ended March 31, 2020 versus three months ended December 31, 2019 - EBITDA decreased $82 million versus the fourth quarter 2019 primarily due to a decrease in licensing revenue as several licenses reached revenue milestones in the prior quarter.
Three months ended March 31, 2020 versus three months ended March 31, 2019 - EBITDA decreased $27 million versus the first quarter 2019 driven by lower licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $660 million during the first quarter 2020. Our cash and liquid investment balance was $1.8 billion at March 31, 2020. There were 334 million common shares outstanding as of March 31, 2020. The company paid dividends of $351 million during the first quarter 2020.
Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable GAAP measure, to EBITDA are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call May 1 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 1-800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 1:00 p.m. EDT May 1 until June 1 at 9:59 p.m. EDT. The replay dial-in numbers are 1-866-397-1431 (U.S.) and 1-203-369-0538 (international). The passcode for each is 1160.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
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; the impacts of the COVID-19 pandemic in geographic regions or markets served us, or where our operations are located, including the risk of prolonged recession; 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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2019, 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.
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 EBITDA, EBITDA excluding LCM and diluted earnings per share excluding LCM. 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 also present EBITDA exclusive of adjustments for "lower of cost or market" ("LCM"), 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 reduces the value of inventory to market value. This adjustment is related to the recent decline in pricing for many of our raw material and finished goods inventories. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover.
Additional operating and financial information, including reconciliations of non-GAAP measures to the most directly comparable GAAP measure, may be found in Table 9 at the end of this release and on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | |||||||||||||||||||||
2019 | 2020 | ||||||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | |||||||||||||||
Sales and other operating revenues: | |||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,111 | $ | 2,114 | $ | 2,137 | $ | 2,073 | $ | 8,435 | $ | 1,792 | |||||||||
Olefins & Polyolefins - EAI | 2,535 | 2,505 | 2,309 | 2,155 | 9,504 | 2,224 | |||||||||||||||
Intermediates & Derivatives | — | 2,062 | 2,046 | 1,832 | 5,940 | 1,770 | |||||||||||||||
Advanced Polymer Solutions | 1,339 | 1,258 | 1,186 | 1,067 | 4,850 | 1,096 | |||||||||||||||
Refining | 1,882 | 2,180 | 2,134 | 2,055 | 8,251 | 1,448 | |||||||||||||||
Technology | 141 | 173 | 146 | 203 | 663 | 122 | |||||||||||||||
Other/Eliminations | (1,124) | (1,244) | (1,236) | (1,206) | (4,810) | (958) | |||||||||||||||
Continuing operations | $ | 6,884 | $ | 9,048 | $ | 8,722 | $ | 8,179 | $ | 32,833 | $ | 7,494 | |||||||||
Operating income (loss): | |||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 384 | $ | 504 | $ | 524 | $ | 365 | $ | 1,777 | $ | 238 | |||||||||
Olefins & Polyolefins - EAI | 186 | 226 | 202 | 59 | 673 | 135 | |||||||||||||||
Intermediates & Derivatives | 314 | 372 | 314 | 249 | 1,249 | 131 | |||||||||||||||
Advanced Polymer Solutions | 119 | 91 | 67 | 13 | 290 | 70 | |||||||||||||||
Refining | (59) | (110) | (52) | (19) | (240) | (314) | |||||||||||||||
Technology | 73 | 96 | 73 | 132 | 374 | 47 | |||||||||||||||
Other | — | (2) | (4) | (1) | (7) | (3) | |||||||||||||||
Continuing operations | $ | 1,017 | $ | 1,177 | $ | 1,124 | $ | 798 | $ | 4,116 | $ | 304 | |||||||||
Depreciation and amortization: | |||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 115 | $ | 117 | $ | 118 | $ | 120 | $ | 470 | $ | 124 | |||||||||
Olefins & Polyolefins - EAI | 53 | 52 | 51 | 52 | 208 | 53 | |||||||||||||||
Intermediates & Derivatives | 72 | 74 | 75 | 74 | 295 | 70 | |||||||||||||||
Advanced Polymer Solutions | 29 | 30 | 32 | 42 | 133 | 44 | |||||||||||||||
Refining | 43 | 44 | 41 | 41 | 169 | 42 | |||||||||||||||
Technology | 10 | 11 | 10 | 6 | 37 | 9 | |||||||||||||||
Continuing operations | $ | 322 | $ | 328 | $ | 327 | $ | 335 | $ | 1,312 | $ | 342 | |||||||||
EBITDA:(a) | |||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 516 | $ | 635 | $ | 653 | $ | 498 | $ | 2,302 | $ | 366 | |||||||||
Olefins & Polyolefins - EAI | 296 | 331 | 291 | 144 | 1,062 | 189 | |||||||||||||||
Intermediates & Derivatives | 390 | 448 | 390 | 329 | 1,557 | 203 | |||||||||||||||
Advanced Polymer Solutions | 148 | 120 | 102 | 54 | 424 | 113 | |||||||||||||||
Refining | (15) | (66) | (6) | 22 | (65) | (272) | |||||||||||||||
Technology | 83 | 107 | 83 | 138 | 411 | 56 | |||||||||||||||
Other | 10 | 4 | — | (13) | 1 | (9) | |||||||||||||||
Continuing operations | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | |||||||||
Capital, turnarounds and IT deferred spending: | |||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 276 | $ | 257 | $ | 295 | $ | 271 | $ | 1,099 | $ | 204 | |||||||||
Olefins & Polyolefins - EAI | 64 | 39 | 45 | 65 | 213 | 42 | |||||||||||||||
Intermediates & Derivatives | 179 | 238 | 317 | 330 | 1,064 | 353 | |||||||||||||||
Advanced Polymer Solutions | 16 | 11 | 14 | 18 | 59 | 13 | |||||||||||||||
Refining | 43 | 53 | 41 | 12 | 149 | 16 | |||||||||||||||
Technology | 17 | 17 | 26 | 34 | 94 | 30 | |||||||||||||||
Other | 4 | 7 | 4 | 1 | 16 | 2 | |||||||||||||||
Continuing operations | $ | 599 | $ | 622 | $ | 742 | $ | 731 | $ | 2,694 | $ | 660 | |||||||||
(a) See Table 9 for the reconciliation of net income to EBITDA, including and excluding LCM, and Tables 2 through 7 for LCM charges recorded for each segment. |
Table 9 - Reconciliation of Net Income to EBITDA, including and excluding LCM | |||||||||||||||||||||||
2019 | 2020 | ||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | |||||||||||||||||
Net income (a)(b) | $ | 817 | $ | 1,003 | $ | 965 | $ | 612 | $ | 3,397 | $ | 144 | |||||||||||
add: LCM charges, after-tax | — | — | — | 25 | 25 | 351 | |||||||||||||||||
Net income excluding LCM adjustments | 817 | 1,003 | 965 | 637 | 3,422 | 495 | |||||||||||||||||
less: LCM charges, after-tax | — | — | — | (25) | (25) | (351) | |||||||||||||||||
Net income | 817 | 1,003 | 965 | 612 | 3,397 | 144 | |||||||||||||||||
Loss (income) from discontinued operations, net of tax | — | 3 | 4 | — | 7 | (1) | |||||||||||||||||
Income from continuing operations(a)(b) | 817 | 1,006 | 969 | 612 | 3,404 | 143 | |||||||||||||||||
Provision for income taxes(b) | 203 | 169 | 136 | 140 | 648 | 75 | |||||||||||||||||
Depreciation and amortization | 322 | 328 | 327 | 335 | 1,312 | 342 | |||||||||||||||||
Interest expense, net | 86 | 76 | 81 | 85 | 328 | 86 | |||||||||||||||||
add: LCM charges, pre-tax | — | — | — | 33 | 33 | 419 | |||||||||||||||||
EBITDA excluding LCM adjustments | 1,428 | 1,579 | 1,513 | 1,205 | 5,725 | 1,065 | |||||||||||||||||
less: LCM charges, pre-tax | — | — | — | (33) | (33) | (419) | |||||||||||||||||
EBITDA(c) | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | $ | 646 | |||||||||||
(a) The first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019 and first quarter of 2020 include after-tax charges of $12 million, $15 million, $33 million, $29 million and $13 million, respectively, for integration costs associated with our acquisition of A. Schulman. | |||||||||||||||||||||||
(b) The third quarter of 2019 includes a non-cash benefit of $85 million, from the release of unrecognized tax benefits and associated accrued interest. | |||||||||||||||||||||||
(c) EBITDA for the first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019 and first quarter of 2020 include pre-tax charges of $16 million, $19 million, $43 million, $38 million and $14 million, respectively, for integration costs associated with our acquisition of A. Schulman. | |||||||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
5/1/2020LyondellBasell to Discuss First-Quarter Results on Friday, May 1, 2020
Source: PR Newswire
HOUSTON and LONDON, April 17, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce first-quarter 2020 financial results before the U.S. market opens on Friday, May 1 followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, May 1, 2020
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at http://www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 1:00 p.m. EDT May 1 until 9:59 p.m. EDT June 1. The replay dial-in numbers are:
Toll-Free: 1-866-397-1431
Toll: 1-203-369-0538
Passcode: 1160
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies". More information about LyondellBasell can be found at www.LyondellBasell.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-to-discuss-first-quarter-results-on-friday-may-1-2020-301042491.html
SOURCE LyondellBasell Industries
Article Date
4/17/2020LyondellBasell Prices Public Offering of Guaranteed Notes
Source: PR Newswire
HOUSTON and LONDON, April 15, 2020 /PRNewswire/ -- LyondellBasell Industries N.V. (NYSE: LYB) ("LyondellBasell") announced today that LYB International Finance III, LLC, its wholly-owned subsidiary, priced a public offering (the "Offering") of $500,000,000 aggregate principal amount of 2.875% Guaranteed Notes due 2025 (the "2025 Notes"), $500,000,000 aggregate principal amount of 3.375% Guaranteed Notes due 2030 (the "2030 Notes") and $1,000,000,000 aggregate principal amount of 4.200% Guaranteed Notes due 2050 (together with the 2025 Notes and the 2030 Notes, the "Notes"). The Notes will be fully and unconditionally guaranteed by LyondellBasell. The Offering is expected to close on April 20, 2020, subject to the satisfaction of customary closing conditions. The net proceeds of the Offering are expected to be used for general corporate purposes, including to increase our liquidity and manage short-term debt maturities.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are acting as the joint book-running managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the "SEC"). Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the accompanying base prospectus may be obtained by calling BofA Securities toll-free at 1-800-294-1322 or dg.prospectus_requests@bofa.com, Citigroup toll-free at 1-800-831-9146, J.P. Morgan collect at 1-212-834-4533 or Morgan Stanley toll-free at 1-800-718-1649.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About LyondellBasell
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third-consecutive year.
Forward-Looking Statements
The statements in this release 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; any impacts of the COVID-19 pandemic in geographic regions or markets served by us, or where our operations are located, including the risk of global recession; competitive product and pricing pressures; labor conditions; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's 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 the preliminary prospectus supplement and the accompany base prospectus and in LyondellBasell's Form 10-K for the year ended December 31, 2019, which can be found on the SEC's website at www.sec.gov.
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SOURCE LyondellBasell Industries
Article Date
4/15/20204/15/2020 - LyondellBasell Provides Estimated First Quarter 2020 Financial Results and Operational Update
LyondellBasell Provides Estimated First Quarter 2020 Financial Results and Operational Update
Source: PR Newswire
HOUSTON and LONDON, April 15, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced estimated first quarter financial results and provided an operational update. First quarter 2020 net income is expected to be in the range of $110 million to $180 million. EBITDA is estimated to be in the range of $610 million to $680 million, $1,055 million to $1,075 million excluding non-cash inventory valuation charges (LCM1).
Events surrounding the ongoing coronavirus pandemic and the significant drop in the price of oil continue to evolve and impact global markets for LyondellBasell's products. Currently, all of our major global manufacturing sites are operational and demand for products used in packaging and medical applications remains robust. LyondellBasell remains committed to the health and safety of our employees, contractors and communities and is following governmental policies and recommendations related to the virus. The Company's manufacturing operations have been designated as an essential industry to support society's needs during the pandemic in the majority of the regions in which we operate.
In response to lower demand for certain products, the Company has temporarily idled production at several small plants in the Advanced Polymer Solutions segment serving automotive end markets and appropriately reduced production rates at other plants. Lower oil prices and reduced demand for transportation fuels are affecting both volumes and margins for our Refining segment and Oxyfuels & Related Products business. These impacts are expected to adversely affect our results during the second quarter of 2020.
Since the full extent of the pandemic and the drop in oil price remains uncertain, the Company has developed strategies and is implementing measures to respond to a variety of economic scenarios. To reduce operational and financial risk, the Company is postponing selected growth projects and planned maintenance, including slowing construction activities on our PO/TBA plant in Houston. We currently expect that these actions will reduce 2020 capital expenditures by approximately 20 percent from our prior guidance of $2.4 billion to our current outlook of $1.9 billion. Additionally, we expect that aggressive inventory management combined with reduced pricing for raw materials and products will provide a meaningful influx of cash from working capital. The Company is also accelerating initiatives to extend our leadership in cost efficiency.
As of March 31, 2020, our total debt was $13.7 billion with available liquidity of $3.2 billion, including $1.8 billion in cash and short-term investments. The Company is currently evaluating a debt issuance and anticipates that any net proceeds would be utilized for general corporate purposes, including to increase our liquidity, and manage short-term debt maturities. We believe that our disciplined approach to capital deployment with a focus on a strong investment grade balance sheet and significant liquidity will serve us well during these challenging times.
We will provide full details on results for the first quarter in our earnings release and teleconference which are scheduled for May 1, 2020. Please refer to the end of this release for an explanation of LyondellBasell's use of EBITDA and Table 1 for reconciliations of net income to EBITDA and EBITDA excluding LCM.
1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from certain financial information can be found under "Information Related to Financial Measures."
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com. The information on our website does not constitute a part of this release.
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.
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 also present EBITDA exclusive of adjustments for "lower of cost or market" ("LCM"), 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 reduces the value of inventory to market value. This adjustment is related to the recent decline in pricing for many of our raw material and finished goods inventories. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods as market prices recover. Accordingly, such fluctuations may affect our cost of sales and results of operations. A quantitative reconciliation of the expected range of net income, the most comparable GAAP measure, to EBITDA and EBITDA excluding LCM is provided in Table 1 below.
Table 1 – Reconciliation of Net Income to EBITDA | ||
Millions of U.S. dollars | Three Months Ended | |
Net income | $110 to $180 | |
Provision for income taxes | 65 to 85 | |
Depreciation and amortization | 345 to 335 | |
Interest expense, net | 90 to 80 | |
EBITDA | 610 to 680 | |
LCM charges, pre-tax | 445 to 395 | |
EBITDA excluding LCM | 1,055 to 1,075 | |
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 preliminary, unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
FORWARD-LOOKING STATEMENTS
The statements in this release 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. These statements include, but are not limited to, our projected net income, EBITDA and EBITDA excluding LCM for the first quarter of 2020, the effects of the COVID-19 pandemic on our business, our liquidity and strength of our balance sheet, a potential U.S. dollar debt offering and our expected capital expenditures in 2020. 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; any impacts of the COVID-19 pandemic in geographic regions or markets served us, or where our operations are located, including the risk of global recession; 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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2019, 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. The information on our website does not constitute a part of this release.
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SOURCE LyondellBasell Industries
Article Date
4/15/2020LyondellBasell Donates $1.3 Million to Combat Hunger During COVID-19 Pandemic
Source: PR Newswire
HOUSTON and ROTTERDAM, Netherlands, April 14, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced a $1.3 million donation to support the COVID-19 response efforts of the Global FoodBanking Network and United States local food banks.
"Even in the best of times, hunger and food insecurity is a challenge. The COVID-19 pandemic has made this need even more severe as food banks around the world have experienced an increase in demand and a decline in food donations," said LyondellBasell CEO Bob Patel. "In addition to the work our team is doing to supply materials that are used in medical applications, we wanted to help those who are finding it difficult to put food on the table by supporting these vitally important organizations."
LyondellBasell's donation will support food banks in 17 countries and communities where the company has major operations.
"The pandemic has disrupted various facets of our lives and millions of people, many who have not needed relief before, are depending on our food banking organizations to keep food on the table," said Lisa Moon, President and CEO of The Global FoodBanking Network. "Our network of food banks all over the world is on the front lines of this international pandemic. LyondellBasell's support will help ease the strain food banks are currently feeling and help us reach more people facing hunger during this difficult time. "
Donating funds to supply food for those in need is just one way LyondellBasell has responded during this pandemic. The company recently donated isopropyl alcohol to Huntsman for production of 5-tons of hand sanitizer to help protect health care workers treating COVID-19 patients.
Additionally, LyondellBasell's materials are found in many applications critical to protecting and preserving health and safety such as medical devices, protective equipment, cleaning products, and various pharmaceutical applications. The company continues to supply its customers with a variety of materials including polypropylene resins, which are used to produce melt-blown fibers that provide filtration in facemasks; masterbatch products are used in breathable films for protective suits; and, polypropylene, ethylene oxide, and propylene oxide are used to make medical syringes, medical test kits, soaps, disinfectants, and many other products.
For information on LyondellBasell's continued response to the COVID-19 pandemic, visit www.lyondellbasell.com or follow the company on LinkedIn, Facebook or Twitter.
About LyondellBasell
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third-consecutive year.
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SOURCE LyondellBasell
Article Date
4/14/2020LyondellBasell to Slow Construction on PO/TBA Project
Source: PR Newswire
HOUSTON, March 30, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, has informed the engineering and construction contractors it will slow construction of its world-scale propylene oxide (PO) and tertiary butyl alcohol (TBA) plant. The company is limiting non-essential activities at this time due to ongoing concerns related to the COVID-19 pandemic, including government orders designed to limit human contact.
"The COVID-19 pandemic is unprecedented and evolving. Because the PO/TBA site is currently under construction and not producing needed products yet, in the interest of health and safety we believe it is prudent to limit construction activities at this time," said Torkel Rhenman, executive vice president, Intermediates & Derivatives (I&D). "We remain committed to the completion of this strategic investment incorporating our low-cost, next generation PO/TBA technology. Over the next several weeks, we will be working with our contractors and suppliers to develop a revised project timeline."
LyondellBasell's PO/TBA project broke ground in August 2018. Currently, the project is more than 30 percent complete with ongoing installation of key equipment and towers. The PO/TBA project has a split-facility design to optimize synergies between two existing LyondellBasell sites. A 140-acre PO/TBA plant is being built at the company's Channelview, Texas facility, and an associated 34-acre ethers unit is being built at the company's Bayport Complex in Pasadena, Texas. When complete, the PO/TBA plant will produce approximately 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (1 million metric tons) of TBA annually, which will serve the growing need for better insulation material, home comfort, cleaner fuels and other consumer applications.
This announcement does not impact LyondellBasell's ongoing operations at Channelview or Bayport, which are designated as part of the United States' critical infrastructure by the Department of Homeland Security.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named for the third consecutive year to Fortune magazine's list of the "World's Most Admired Companies". More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward looking statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; any impacts of the COVID-19 pandemic in geographic regions or markets served us, or where our operations are located; potential governmental regulatory actions; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. 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, 2019, 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell Industries
Article Date
3/30/20203/9/2020 - UPDATE: LyondellBasell to Address J.P. Morgan Industrials Conference, Cancellation of Webcast
UPDATE: LyondellBasell to Address J.P. Morgan Industrials Conference, Cancellation of Webcast
Source: PR Newswire
HOUSTON and LONDON, March 9, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, recently learned that due to restrictions on travel and concerns related to coronavirus, attendance at the 2020 J.P. Morgan Industrials Conference will be virtual and limited to J.P. Morgan clients. No live webcast of presentations will be available.
Bob Patel, chief executive officer, will address the conference at 10:15 a.m. EDT March 10.
Presentation slide access will be available at https://www.lyondellbasell.com/en/investors/ on Tuesday, March 10, prior to Patel's presentation.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
3/9/2020LyondellBasell and Bora Sign Definitive Agreements to form Chinese Joint Venture
Source: PR Newswire
ROTTERDAM, Netherlands and HONG KONG, March 5, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has signed definitive agreements to expand in China through a 50:50 joint venture with the Liaoning Bora Enterprise Group (Bora). On September 5, 2019, LyondellBasell and Bora first signed a Memorandum of Understanding and announced their intention to form this joint venture during a ceremony in Panjin, China.
"China is a large market with growing demand for high quality polyolefin products," said Bob Patel, CEO of LyondellBasell. "The combination of LyondellBasell's leading technology and Bora's operational excellence will allow us to reliably produce and provide these needed products to local customers."
Under the agreements, the partners will form a Sino-foreign joint venture, the Bora LyondellBasell Petrochemical Co. Ltd, that will operate a 1.1 million metric tons per annum ethylene cracker and associated polyolefin derivatives complex in Panjin, China, with a total expected cost of approximately $2.6 billion. The complex will produce products that serve the growing demands of various industries in China, including packaging, transportation, building and construction, and healthcare and hygiene.
LyondellBasell will market the polypropylene and high-density polyethylene which will be produced utilizing LyondellBasell licensed Spheripol, Spherizone polypropylene technologies and Hostalen ACP polyethylene technology. Start-up is expected in the second half of 2020.
According to IHS Markit, Asia is the largest and fastest growing polyolefin market in the world. China accounts for more than 60 percent of the Asian polyolefins market and represents 40 percent of global growth. Olefins and polyolefins are core products of LyondellBasell.
LyondellBasell expects to make its equity contribution in the coming months. The formation of the JV is subject to approvals by relevant government authorities, including antitrust review by the State Administration for Market Regulation.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
Forward-looking Statement
The statements in this release 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 from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to complete the transactions described and the timing of such transactions; the successful construction and operation of the complex described; our ability to obtain all approvals by relevant government authorities; future demand and the growth of the global polyolefin market and in the regions described; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. 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, 2019, 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. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell
Article Date
3/6/2020LyondellBasell to Address J.P. Morgan Industrials Conference
Source: PR Newswire
HOUSTON and LONDON, March 4, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Bob Patel, chief executive officer, will address investors at the J.P. Morgan Industrials Conference in New York at 10:15 a.m. EDT March 10.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
3/4/20202/21/2020 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Feb. 21, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.05 per share, to be paid March 9, 2020 to shareholders of record March 2, 2020, with an ex-dividend date of Feb. 28, 2020.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
2/21/20201/31/2020 - LyondellBasell Reports 2019 Earnings
LyondellBasell Reports 2019 Earnings
Source: PR Newswire
HOUSTON and LONDON, Jan. 31, 2020 /PRNewswire/ --
Highlights
Comparisons with the prior quarter, fourth quarter 2018 and year ended 2018 are available in the following table:
Table 1 - Earnings Summary
Millions of U.S. dollars (except share data) | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Sales and other operating revenues | $8,179 | $8,722 | $8,876 | $34,727 | $39,004 |
Net income | 612 | 965 | 692 | 3,397 | 4,690 |
Diluted earnings per share | 1.83 | 2.85 | 1.79 | 9.58 | 12.01 |
Weighted average diluted share count | 334 | 337 | 381 | 353 | 389 |
EBITDA (a) | 1,172 | 1,513 | 1,212 | 5,692 | 6,867 |
(a) | See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of net income to EBITDA. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the fourth quarter 2019 of $0.6 billion, or $1.83 per share. Fourth quarter 2019 EBITDA was $1.2 billion. Full year 2019 net income was $3.4 billion, or $9.58 per share, and EBITDA was $5.7 billion. The full year 2019 included $89 million of integration costs that impacted earnings by $0.26 per share that were partially offset by an $85 million non-cash tax settlement that increased earnings by $0.24 per share. Integration activities related to the 2018 acquisition of A. Schulman are on schedule with $130 million in forward annual run-rate synergies as of December 31, 2019.
"During 2019 LyondellBasell continued to exhibit strong cash generation and remained committed to our disciplined capital allocation strategy. Over each of the past six years, we have consistently delivered $5-6 billion in cash from operating activities. We affirmed our commitment to a strong and progressive dividend during 2019 by increasing our quarterly dividend for the eleventh time and returning a total of $5.2 billion in dividends and share repurchases to shareholders. Our businesses benefited from abundant and low-cost natural gas liquid feedstocks throughout the year, and we demonstrated our capability to derive value from M&A through the integration of the A. Schulman acquisition," said Bob Patel, LyondellBasell CEO.
"During the fourth quarter, margins within most of our businesses were impacted by slow industrial demand and typical seasonality. Low-cost butane supported the highest fourth quarter profitability for our Oxyfuels and Related Products business over the past five years. Refining margins improved on a higher Maya 2-1-1 crack spread and relatively strong prices for naphtha and coke. Our Technology business achieved record licensing revenues, contributing to the most profitable year in company history for the segment."
"In 2019, we developed opportunities to expand into new markets by leveraging LyondellBasell technologies to strengthen our position in Asia. In June, we announced new polypropylene capacity through our Thailand joint venture, HMC Polymers. In September, we signed a Memorandum of Understanding (MoU) with Liaoning Bora Enterprise Group to build an integrated cracker and expand our footprint in the rapidly growing Chinese market. Recently, we announced our intention to expand our existing partnership with Sinopec to build a second propylene oxide (PO) and styrene monomer (SM) plant in China utilizing our advantaged technology. Our leading technologies are satisfying rising demand for our products in the fastest growing regions of the world," Patel said.
OUTLOOK
"Our foundations of operational excellence, cost management and disciplined capital allocation continue to serve us well in the current challenging environment. We anticipate typical seasonal improvements for our businesses as we progress through the second and third quarters of 2020. Favorable resolution of trade policies and a rebound in industrial demand could provide significant upside for our industry. With the expected benefits from the IMO 2020 regulations for our Houston Refinery and the completion of our new Hyperzone project, we are well-poised to extend LyondellBasell's outstanding track record of cash generation," said Patel.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology. Results for our Advanced Polymer Solutions segment incorporate the businesses acquired from A. Schulman beginning on August 21, 2018.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $365 | $524 | $507 | $1,777 | $2,251 |
EBITDA | 498 | 653 | 631 | 2,302 | 2,762 |
Three months ended December 31, 2019 versus three months ended September 30, 2019 - EBITDA decreased $155 million versus the third quarter 2019. Compared with the prior period, olefins results decreased approximately $20 million with a decline in margin partially offset by an increase in volume. Ethylene margin decreased primarily due to higher feedstock costs and a lower propylene price, while volume increased with the completion of planned maintenance. Polyolefin results declined $135 million due to a seasonal decline in margins and volumes. Margins declined mainly in polyethylene with a spread decrease over ethylene of more than $130 per ton.
Three months ended December 31, 2019 versus three months ended December 31, 2018 - EBITDA decreased $133 million versus the fourth quarter 2018. Fourth quarter 2019 results increased by $35 million due to inventory valuation changes relative to the prior period. Olefins results increased more than $60 million versus the fourth quarter 2018. Ethylene margin expanded as lower feedstock costs were partially offset by a lower propylene price. Polyolefin results decreased about $235 million driven by a spread decline in polyethylene and polypropylene of more than $365 per ton and $110 per ton, respectively.
Full year ended December 31, 2019 versus full year ended December 31, 2018 - EBITDA decreased $460 million versus 2018. Full year results increased by $65 million due to inventory valuation changes relative to the prior period. Olefins results increased approximately $255 million versus 2018 with an increase in margin partially offset by a decline in volume. Ethylene margin increased as lower feedstock costs were partially offset by a lower propylene price. Polyolefin results decreased about $765 million driven by a spread decrease in polyethylene over ethylene of more than $260 per ton.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $59 | $202 | $15 | $673 | $682 |
EBITDA | 144 | 291 | 127 | 1,062 | 1,163 |
Three months ended December 31, 2019 versus three months ended September 30, 2019 - EBITDA decreased $147 million versus the third quarter 2019. Fourth quarter results increased by $25 million due to inventory valuation changes relative to the prior period. Olefins results decreased about $140 million versus the third quarter 2019. Ethylene margin decreased driven by higher feedstock costs and a lower propylene price. Combined polyolefins results decreased approximately $45 million due to a seasonal decline in margins and volumes. Polyolefin margins declined driven by spread decreases in polyethylene and polypropylene over monomer.
Three months ended December 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $17 million versus the fourth quarter 2018. Fourth quarter 2019 results increased by $35 million due to inventory valuation changes relative to the prior period. The fourth quarter 2018 included a $36 million gain on the sale of our carbon black subsidiary in France. Compared with the prior period, olefins results were relatively unchanged. Volume increased driven by improved reliability with planned and unplanned maintenance impacting the fourth quarter 2018 and was offset by a decline in margin. Combined polyolefins results were relatively unchanged with a small decrease in polypropylene margin largely offset by an increase in polypropylene volume. Joint venture equity income increased approximately $10 million.
Full year ended December 31, 2019 versus full year ended December 31, 2018 - EBITDA decreased $101 million versus 2018. Full year 2019 results include the impact of approximately $55 million due to a decrease in the euro versus the U.S. dollar exchange rate relative to 2018 and increased by $35 million due to inventory valuation changes relative to the prior period. 2018 results include a $36 million gain on the sale of our carbon black subsidiary in France. Compared with the prior period, olefins results increased approximately $75 million due to improvement in volume and margin. Margin increased driven by declining feedstock costs that exceeded the decrease in ethylene price. Volume increased driven by improved reliability with planned and unplanned maintenance impacting the fourth quarter 2018. Combined polyolefins results decreased $65 million. Polyolefin margins declined driven by spread decreases in polyethylene and polypropylene over monomer. Polypropylene volume increased, partially offsetting the decline in polyolefin margins. Joint venture equity income decreased about $55 million primarily due to reduced polyolefin spreads.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $249 | $314 | $308 | $1,249 | $1,716 |
EBITDA | 329 | 390 | 379 | 1,557 | 2,011 |
Three months ended December 31, 2019 versus three months ended September 30, 2019 - EBITDA decreased $61 million versus the third quarter 2019. Compared with the prior period, Propylene Oxide & Derivatives results decreased about $10 million driven by lower margins due to sales mix. Intermediate Chemicals results decreased approximately $50 million driven by margin declines for most products. Oxyfuels & Related Products results were relatively unchanged.
Three months ended December 31, 2019 versus three months ended December 31, 2018 - EBITDA decreased $50 million versus the fourth quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $15 million with lower margins due to sales mix, partially offset by increased volumes. Intermediate Chemicals results decreased $165 million due to margin declines for all products and reduced volumes from planned maintenance activities. Oxyfuels & Related Products results increased more than $110 million driven by improved margins due to contract price improvements and low-cost butane. Volumes increased due to planned maintenance in the fourth quarter of 2018.
Full year ended December 31, 2019 versus full year ended December 31, 2018 - EBITDA decreased $454 million versus a record 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $95 million driven by lower volumes and lower margins due to sales mix. Intermediate Chemicals results decreased about $510 million due to margin declines in most businesses, primarily in styrene. Volumes decreased in all businesses driven by planned maintenance and unplanned downtime. Oxyfuels & Related Products increased approximately $165 million. Margins expanded due to contract price improvements and low-cost butane.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1. Results for the segment incorporate the businesses acquired from A. Schulman beginning on August 21, 2018.
Table 5 - Advanced Polymer Solutions Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $13 | $67 | $55 | $290 | $329 |
EBITDA | 54 | 102 | 86 | 424 | 400 |
Three months ended December 31, 2019 versus three months ended September 30, 2019 - EBITDA decreased $48 million versus the third quarter 2019. Integration costs related to the acquisition of A. Schulman were $5 million lower in the fourth quarter 2019 versus the third quarter. Compared with the prior period, Compounding & Solutions results decreased approximately $35 million due to continued automotive market headwinds that impacted both volumes and margins. Advanced Polymers results decreased $20 million with decline in margin and lower volume due to seasonal construction demand.
Three months ended December 31, 2019 versus three months ended December 31, 2018 - EBITDA decreased $32 million versus the fourth quarter 2018. Fourth quarter 2019 results increased by $15 million due to inventory valuation changes relative to the prior period. Integration costs related to the acquisition were $18 million higher in the fourth quarter 2019 versus the fourth quarter 2018. Compared with the prior period, Compounding & Solutions results decreased $20 million. Volumes declined due to a soft automotive market. Advanced Polymers results decreased $10 million driven by lower volumes.
Full year ended December 31, 2019 versus full year ended December 31, 2018 - EBITDA increased $24 million versus 2018. Transaction and integration costs related to the acquisition and assigned to the segment were $47 million higher in 2019 versus 2018. Compared with the prior period, Compounding & Solutions results increased approximately $105 million driven by the addition of new product lines from the acquisition. Advanced Polymers results decreased about $40 million driven by a decrease in volumes due to lower automotive and industrial roofing demand.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income (loss) | $(19) | $(52) | $(139) | $(240) | $(28) |
EBITDA | 22 | (6) | (84) | (65) | 167 |
Three months ended December 31, 2019 versus three months ended September 30, 2019 - EBITDA increased $28 million versus the third quarter 2019. Margins improved due to an increase in the Maya 2-1-1 industry benchmark crack spread of $1.31 per barrel to $19.44 per barrel and relative strong prices for naphtha and coke. The Houston Refinery continued to run reliably with a small increase in crude throughput of 3,000 barrels per day to 267,000 barrels per day.
Three months ended December 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $106 million versus the fourth quarter 2018. The Maya 2-1-1 crack spread increased significantly by $8.55 per barrel to $19.44 per barrel. Margin improvement from the Maya 2-1-1 crack spread was partially offset by higher prices of heavy sour crude oil purchased in the U.S. Gulf Coast market. The Houston Refinery operated at 267,000 barrels per day, 83,000 barrels per day more than the prior period due to the completion of planned maintenance in the second half of 2018.
Full year ended December 31, 2019 versus full year ended December 31, 2018 - EBITDA decreased $232 million versus 2018. Margins decreased due to limited availability of favorably-priced heavy sour crude oil in the U.S. Gulf Coast and a decrease in the Maya 2-1-1 crack spread of $2.27 per barrel to $17.58 per barrel. Crude throughput averaged 263,000 barrels per day, 32,000 barrels per day more than the prior period due to the completion of planned maintenance in the second half of 2018.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | |||
December 31, | September 30, | December 31, | December 31, | December 31, | |
Operating income | $132 | $73 | $50 | $374 | $284 |
EBITDA | 138 | 83 | 61 | 411 | 328 |
Three months ended December 31, 2019 versus three months ended September 30, 2019 - EBITDA increased $55 million versus the third quarter 2019 result driven by higher licensing revenue as significant licenses reached revenue recognition milestones.
Three months ended December 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $77 million versus the fourth quarter 2018 result driven by higher licensing revenue.
Full year ended December 31, 2019 versus full year ended December 31, 2018 - EBITDA increased $83 million versus 2018. The increase was driven by higher licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $731 million during the fourth quarter 2019 and $2.7 billion for the full year 2019. Our cash and liquid investment balance was $1.1 billion at December 31, 2019. We repurchased 42.7 million ordinary shares during 2019. There were 333 million common shares outstanding as of December 31, 2019. The company paid dividends of $1.5 billion during 2019.
Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable GAAP measure, to EBITDA are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call January 31 at 11 a.m. EST. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Michael McMurray and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 2:00 p.m. EST January 31 until March 2 at 11:59 p.m. EST. The replay dial-in numbers are 800-759-4057 (U.S.) and +1 402-998-0479 (international). The passcode for each is 1160.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.LyondellBasell.com.
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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2018, 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.
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.
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.
Additional operating and financial information, including reconciliations of non-GAAP measures to the most directly comparable GAAP measure, may be found in Table 9 at the end of this release and on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | |||||||||||||||||||||||||||||
2018 | 2019 | ||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||
Sales and other operating revenues: | |||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,646 | $ | 2,542 | $ | 2,770 | $ | 2,450 | $ | 10,408 | $ | 2,111 | $ | 2,114 | $ | 2,137 | $ | 2,073 | $ | 8,435 | |||||||||
Olefins & Polyolefins - EAI | 2,960 | 2,900 | 2,643 | 2,335 | 10,838 | 2,535 | 2,505 | 2,309 | 2,155 | 9,504 | |||||||||||||||||||
Intermediates & Derivatives | 2,343 | 2,584 | 2,509 | 2,152 | 9,588 | 1,894 | 2,062 | 2,046 | 1,832 | 7,834 | |||||||||||||||||||
Advanced Polymer Solutions | 838 | 833 | 1,039 | 1,314 | 4,024 | 1,339 | 1,258 | 1,186 | 1,067 | 4,850 | |||||||||||||||||||
Refining | 2,257 | 2,569 | 2,499 | 1,832 | 9,157 | 1,882 | 2,180 | 2,134 | 2,055 | 8,251 | |||||||||||||||||||
Technology | 115 | 182 | 171 | 115 | 583 | 141 | 173 | 146 | 203 | 663 | |||||||||||||||||||
Other/Eliminations | (1,392) | (1,404) | (1,476) | (1,322) | (5,594) | (1,124) | (1,244) | (1,236) | (1,206) | (4,810) | |||||||||||||||||||
Continuing Operations | $ | 9,767 | $ | 10,206 | $ | 10,155 | $ | 8,876 | $ | 39,004 | $ | 8,778 | $ | 9,048 | $ | 8,722 | $ | 8,179 | $ | 34,727 | |||||||||
Operating income (loss): | |||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 629 | $ | 543 | $ | 572 | $ | 507 | $ | 2,251 | $ | 384 | $ | 504 | $ | 524 | $ | 365 | $ | 1,777 | |||||||||
Olefins & Polyolefins - EAI | 281 | 245 | 141 | 15 | 682 | 186 | 226 | 202 | 59 | 673 | |||||||||||||||||||
Intermediates & Derivatives | 408 | 569 | 431 | 308 | 1,716 | 314 | 372 | 314 | 249 | 1,249 | |||||||||||||||||||
Advanced Polymer Solutions | 114 | 112 | 48 | 55 | 329 | 119 | 91 | 67 | 13 | 290 | |||||||||||||||||||
Refining | 15 | 58 | 38 | (139) | (28) | (59) | (110) | (52) | (19) | (240) | |||||||||||||||||||
Technology | 46 | 100 | 88 | 50 | 284 | 73 | 96 | 73 | 132 | 374 | |||||||||||||||||||
Other | 1 | (1) | (1) | (2) | (3) | — | (2) | (4) | (1) | (7) | |||||||||||||||||||
Continuing Operations | $ | 1,494 | $ | 1,626 | $ | 1,317 | $ | 794 | $ | 5,231 | $ | 1,017 | $ | 1,177 | $ | 1,124 | $ | 798 | $ | 4,116 | |||||||||
Depreciation and amortization: | |||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 106 | $ | 109 | $ | 111 | $ | 116 | $ | 442 | $ | 115 | $ | 117 | $ | 118 | $ | 120 | $ | 470 | |||||||||
Olefins & Polyolefins - EAI | 56 | 52 | 50 | 50 | 208 | 53 | 52 | 51 | 52 | 208 | |||||||||||||||||||
Intermediates & Derivatives | 73 | 72 | 71 | 71 | 287 | 72 | 74 | 75 | 74 | 295 | |||||||||||||||||||
Advanced Polymer Solutions | 8 | 9 | 22 | 30 | 69 | 29 | 30 | 32 | 42 | 133 | |||||||||||||||||||
Refining | 46 | 46 | 45 | 55 | 192 | 43 | 44 | 41 | 41 | 169 | |||||||||||||||||||
Technology | 10 | 12 | 10 | 11 | 43 | 10 | 11 | 10 | 6 | 37 | |||||||||||||||||||
Continuing Operations | $ | 299 | $ | 300 | $ | 309 | $ | 333 | $ | 1,241 | $ | 322 | $ | 328 | $ | 327 | $ | 335 | $ | 1,312 | |||||||||
EBITDA:(a) | |||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 756 | $ | 671 | $ | 704 | $ | 631 | $ | 2,762 | $ | 516 | $ | 635 | $ | 653 | $ | 498 | $ | 2,302 | |||||||||
Olefins & Polyolefins - EAI | 419 | 355 | 262 | 127 | 1,163 | 296 | 331 | 291 | 144 | 1,062 | |||||||||||||||||||
Intermediates & Derivatives | 486 | 642 | 504 | 379 | 2,011 | 390 | 448 | 390 | 329 | 1,557 | |||||||||||||||||||
Advanced Polymer Solutions | 123 | 121 | 70 | 86 | 400 | 148 | 120 | 102 | 54 | 424 | |||||||||||||||||||
Refining | 63 | 104 | 84 | (84) | 167 | (15) | (66) | (6) | 22 | (65) | |||||||||||||||||||
Technology | 56 | 113 | 98 | 61 | 328 | 83 | 107 | 83 | 138 | 411 | |||||||||||||||||||
Other | 10 | 4 | 10 | 12 | 36 | 10 | 4 | — | (13) | 1 | |||||||||||||||||||
Continuing Operations | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | |||||||||
Capital, turnarounds and IT deferred spending: | |||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 242 | $ | 311 | $ | 247 | $ | 279 | $ | 1,079 | $ | 276 | $ | 257 | $ | 295 | $ | 271 | $ | 1,099 | |||||||||
Olefins & Polyolefins - EAI | 58 | 40 | 58 | 92 | 248 | 64 | 39 | 45 | 65 | 213 | |||||||||||||||||||
Intermediates & Derivatives | 68 | 80 | 100 | 161 | 409 | 179 | 238 | 317 | 330 | 1,064 | |||||||||||||||||||
Advanced Polymer Solutions | 15 | 10 | 16 | 21 | 62 | 16 | 11 | 14 | 18 | 59 | |||||||||||||||||||
Refining | 36 | 45 | 47 | 122 | 250 | 43 | 53 | 41 | 12 | 149 | |||||||||||||||||||
Technology | 8 | 9 | 12 | 19 | 48 | 17 | 17 | 26 | 34 | 94 | |||||||||||||||||||
Other | 2 | 1 | 2 | 4 | 9 | 4 | 7 | 4 | 1 | 16 | |||||||||||||||||||
Continuing Operations | $ | 429 | $ | 496 | $ | 482 | $ | 698 | $ | 2,105 | $ | 599 | $ | 622 | $ | 742 | $ | 731 | $ | 2,694 | |||||||||
(a) See Table 9 for the reconciliation of net income to EBITDA. |
Table 9 - Reconciliation of Net Income to EBITDA | |||||||||||||||||||||||||||||
2018 | 2019 | ||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||
Net income (a)(b) | $ | 1,231 | $ | 1,654 | $ | 1,113 | $ | 692 | $ | 4,690 | $ | 817 | $ | 1,003 | $ | 965 | $ | 612 | $ | 3,397 | |||||||||
Loss from discontinued operations, net of tax | — | 1 | 2 | 5 | 8 | — | 3 | 4 | — | 7 | |||||||||||||||||||
Income from continuing operations(a)(b) | 1,231 | 1,655 | 1,115 | 697 | 4,698 | 817 | 1,006 | 969 | 612 | 3,404 | |||||||||||||||||||
Provision for (benefit from) income taxes(b) | 303 | (21) | 232 | 99 | 613 | 203 | 169 | 136 | 140 | 648 | |||||||||||||||||||
Depreciation and amortization | 299 | 300 | 309 | 333 | 1,241 | 322 | 328 | 327 | 335 | 1,312 | |||||||||||||||||||
Interest expense, net | 80 | 76 | 76 | 83 | 315 | 86 | 76 | 81 | 85 | 328 | |||||||||||||||||||
EBITDA(c) | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 1,172 | $ | 5,692 | |||||||||
(a) | In the third quarter of 2018, fourth quarter of 2018, first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019 are after-tax charges of $42 million, $15 million, $12 million, $15 million, $33 million and $29 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. | ||||||||||||||||||||||||||||||||||||||
(b) | The second quarter of 2018 and third quarter of 2019 includes a non-cash benefit of $346 million and $85 million, respectively, from the previously unrecognized tax benefits and release of associated accrued interest. | ||||||||||||||||||||||||||||||||||||||
(c) | EBITDA, for the third quarter of 2018, fourth quarter of 2018, first quarter of 2019, second quarter of 2019, third quarter of 2019 and fourth quarter of 2019 include pre-tax charges of $53 million, $20 million, $16 million, $19 million, $43 million and $38 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. | ||||||||||||||||||||||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
1/31/20201/21/2020 - LyondellBasell Named to Fortune Magazine's "World's Most Admired Companies" List for Third Consecutive Year
LyondellBasell Named to Fortune Magazine's "World's Most Admired Companies" List for Third Consecutive Year
Source: PR Newswire
HOUSTON, Jan. 21, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has been named to Fortune Magazine's 2020 list of the "World's Most Admired Companies." This marks the third year that LyondellBasell has made the list, which identifies the organizations with the strongest reputations across a variety of industry sectors.
"Credit for this recognition goes to our employees who work tirelessly to operate safely, responsibly and deliver products that meet or exceed our customers' needs," said Bob Patel, CEO of LyondellBasell. "In 2020 we remain focused on the startup of our Hyperzone polyethylene plant which uses our new proprietary technology, continuing construction of our Propylene Oxide / Tertiary Butyl Alcohol (PO/TBA) plant in Texas, and delivering an outstanding value proposition for our customers and shareholders."
In 2019, LyondellBasell:
According to Korn Ferry, who administers the survey for Fortune Magazine, the "World's Most Admired Companies" study surveys top executives and directors from eligible companies, along with financial analysts, to evaluate companies in the categories of:
More information on Fortune's "World's Most Admired Companies" list can be found here.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2020, LyondellBasell was named to Fortune Magazine's list of the "World's Most Admired Companies" for the third consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
1/21/2020LyondellBasell to Discuss Fourth-Quarter Results on Friday, January 31, 2020
Source: PR Newswire
HOUSTON and LONDON, Jan. 17, 2020 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce fourth-quarter 2019 financial results before the U.S. market opens on Friday, January 31 followed by a webcast and teleconference to discuss results at 11:00 a.m. EST.
Teleconference and Webcast Details
Friday, January 31, 2020
11:00 a.m. EST
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at http://www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 2:00 p.m. EST January 31 until 11:59 p.m. EST March 2. The replay dial-in numbers are:
Toll-Free: 1- 800-759-4057
Toll: 402-998-0479
Passcode: 1160
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
1/17/202012/24/2019 - LyondellBasell and Sinopec announce joint venture to manufacture propylene oxide and styrene monomer in China
LyondellBasell and Sinopec announce joint venture to manufacture propylene oxide and styrene monomer in China
Source: PR Newswire
ROTTERDAM, Netherlands and HONG KONG, Dec. 23, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has signed a Memorandum of Understanding (MoU) to form a 50:50 joint venture (JV) with China Petroleum & Chemical Corporation (Sinopec), one of the largest integrated energy and chemical companies in China.
Under the non-binding MoU, the JV will construct a new propylene oxide (PO) and styrene monomer (SM) unit in Zhenhai, Ningbo, China to serve that country's domestic market. Once finalized, this JV will build upon the existing LyondellBasell / Sinopec PO / SM joint venture in the same location, which operates under the name Ningbo ZRCC Lyondell Chemical Company Limited.
"Joint ventures in strategic regions are an important part of our growth strategy," said Bob Patel, CEO of LyondellBasell. "As demand for construction materials, packaging and furnishings continues to grow, we see an opportunity to bring together our leading technology with Sinopec's operational capabilities to further serve the Chinese market."
"This cooperation on the second PO / SM unit between Sinopec and LyondellBasell is based on the successful partnership of the first unit," said Dai Houliang, Chairman of Sinopec. "It is in line with China's further opening-up policy, and is another achievement of international cooperation of Sinopec. The products will help meet the increasing demands from the domestic market."
"The formation of this JV with Sinopec, a highly respected Chinese company and an existing PO / SM partner, allows us to take advantage of the fastest growing market in the world for these products," said Torkel Rhenman, Executive Vice President of LyondellBasell. "We see tremendous opportunity to create additional value and grow the presence of LyondellBasell in this very important market."
The new facility is expected to produce 300 kilo tons per annum (KTA) of PO and 600 KTA of SM. Construction of the facility will begin in early 2020 with start-up expected in 2022. The facility will use LyondellBasell's leading PO / SM technology. Products produced will be marketed equally by both companies which will significantly expand their respective participation in the Chinese market for both PO and SM.
According to IHS Markit, China makes up more than 60 percent of the Asian chemicals market demand and represents 40 percent of global chemicals growth over the next decade. PO and SM are core products for LyondellBasell.
LyondellBasell operates five wholly-owned facilities in China which are located in Guangzhou, Suzhou, Dalian, Dongguan and Changshu. In addition, LyondellBasell is currently building the largest next generation PO / tertiary butyl alcohol (TBA) plant in the world near Houston, Texas.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward-Looking Statement
The statements in this release 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 from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to complete the transaction described or the timing of such transaction; our ability to obtain all necessary regulatory approvals; our ability to successfully construct and operate the proposed facilities described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. 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, 2018, 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. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell
Article Date
12/24/2019LyondellBasell to Address Citi 2019 Basic Materials Conference
Source: PR Newswire
HOUSTON and LONDON, Nov. 26, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Jim Guilfoyle, executive vice president, Advanced Polymer Solutions & Global Supply Chain, will address investors at the Citi 2019 Basic Materials Conference in New York at 11 a.m. EST on Dec. 3, 2019.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at www.LyondellBasell.com/investorevents. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
11/26/201911/22/2019 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Nov. 22, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.05 per share, to be paid Dec. 9, 2019 to shareholders of record Dec. 2, 2019, with an ex-dividend date of Nov. 29, 2019.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
11/22/201911/6/2019 - LyondellBasell to Address Morgan Stanley Global Chemicals, Agriculture and Packaging Conference
LyondellBasell to Address Morgan Stanley Global Chemicals, Agriculture and Packaging Conference
Source: PR Newswire
HOUSTON and LONDON, Nov. 6, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Jim Guilfoyle, executive vice president, Advanced Polymer Solutions & Global Supply Chain, will address investors at the Morgan Stanley Global Chemicals, Agriculture and Packaging Conference in Boston at 11 a.m. EST on Nov. 13, 2019.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at www.LyondellBasell.com/investorevents. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
11/6/2019LyondellBasell Reports Third Quarter 2019 Earnings
Source: PR Newswire
HOUSTON and LONDON, Nov. 1, 2019 /PRNewswire/ --
Third Quarter 2019 Highlights
Comparisons with the prior quarter and third quarter 2018 are available in the following table:
Table 1 - Earnings Summary
Millions of U.S. dollars (except share data) | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Sales and other operating revenues | $8,722 | $9,048 | $10,155 | $26,548 | $30,128 |
Net income | 965 | 1,003 | 1,113 | 2,785 | 3,998 |
Diluted earnings per share | 2.85 | 2.70 | 2.85 | 7.72 | 10.18 |
Weighted average diluted share count | 337 | 370 | 390 | 360 | 392 |
EBITDA (a) | 1,513 | 1,579 | 1,732 | 4,520 | 5,655 |
(a) | See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to net income. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the third quarter 2019 of $1.0 billion, or $2.85 per share, which included an $85 million non-cash tax settlement that increased earnings by $0.25 per share. Third quarter 2019 EBITDA was $1.5 billion. Integration activities related to the acquisition of A. Schulman are on schedule and expected to generate approximately $125 million in forward annual run-rate synergies as of the close of the third quarter. After tax costs related to integration rose to $33 million for the quarter and impacted third quarter earnings by $0.10 per share.
"LyondellBasell demonstrated resilient performance by achieving a third consecutive increase in quarterly earnings per share with its leading portfolio, advantaged global positions, and disciplined capital allocation. Strong margins for our North American ethylene and Oxyfuels & Related Products businesses were supported by abundant supplies of low-cost, shale-based natural gas liquid feedstocks. Our global Olefins & Polyolefins businesses benefited from typical seasonal strength in demand for consumer driven non-durable products with polyolefin sales volume increasing by 5% relative to the second quarter. Market headwinds from softer demand and compressing margins for styrene impacted the profitability for our Intermediates & Derivatives segment. Our refinery ran reliably at 99% of nameplate capacity and margins increased with improved availability of favorably-priced heavy sour crude oils in the Houston market," said Bob Patel, LyondellBasell CEO.
"We continued to execute our disciplined capital allocation strategy during the third quarter. In September, we moved forward on our value-driven approach to growth with a long-term propylene supply contract and discussions to build a joint venture chemical complex in northeast China. During July, we completed a tender offer for 35.1 million shares that demonstrated our views on the value of our company and the outlook for our businesses. Over the past few weeks, we successfully refinanced over $2 billion of debt in a favorable interest rate environment," Patel said.
OUTLOOK
"Our businesses continue to benefit from low-cost natural gas liquid feedstocks with favorable prices persisting into October. We expect to see typical seasonal softening of demand in the final months of the year. At the same time, profitability at our Houston refinery should begin to improve during the fourth quarter with increasing demand for low-sulfur marine fuels ahead of the IMO 2020 regulation deadline," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology. Results for our Advanced Polymer Solutions segment incorporates the businesses acquired from A. Schulman beginning on August 21, 2018.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $524 | $504 | $572 | $1,412 | $1,744 |
EBITDA | 653 | 635 | 704 | 1,804 | 2,131 |
Three months ended September 30, 2019 versus three months ended June 30, 2019 - EBITDA increased $18 million versus the second quarter 2019. Compared with the prior period, olefins results increased $120 million. Ethylene margin improved as the price of ethylene increased and feedstock prices declined. Ethylene volume decreased due to planned maintenance. Polyolefins results decreased approximately $100 million due to a spread decrease for polyethylene over ethylene of more than $220 per ton, partially offset by an increase in polyolefin volume.
Three months ended September 30, 2019 versus three months ended September 30, 2018 - EBITDA decreased $51 million versus the third quarter 2018. Compared with the prior period, olefins results increased more than $150 million. Ethylene margin expanded primarily due to reduced feedstock prices. Polyolefin results decreased $215 million driven by a spread decline in polyethylene over ethylene of more than $320 per ton, partially offset by an increase in polyolefin volume.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins and Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $202 | $226 | $141 | $614 | $667 |
EBITDA | 291 | 331 | 262 | 918 | 1,036 |
Three months ended September 30, 2019 versus three months ended June 30, 2019 - EBITDA decreased $40 million versus the second quarter 2019. Compared with the prior period, olefins results decreased about $10 million driven by a small decline in volume. Combined polyolefins results were relatively unchanged with an increase in polyethylene volume offset by a compressed polyethylene margin. Joint venture equity income decreased approximately $15 million.
Three months ended September 30, 2019 versus three months ended September 30, 2018 - EBITDA increased $29 million versus the third quarter 2018. Olefins results increased about $75 million driven by an increase in margin and volume. Margin improved as a decline in feedstock cost significantly outpaced the decline in ethylene price. Combined polyolefins results increased approximately $10 million primarily driven by higher volume due to the timing of customer orders. Joint venture equity income decreased approximately $35 million.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels and Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $314 | $372 | $431 | $1,000 | $1,408 |
EBITDA | 390 | 448 | 504 | 1,228 | 1,632 |
Three months ended September 30, 2019 versus three months ended June 30, 2019 - EBITDA decreased $58 million versus the second quarter 2019. Compared with the prior period, Propylene Oxide & Derivatives results were relatively unchanged. Intermediate Chemicals results decreased $95 million driven by a decline in margin for all products, primarily in styrene. Volume decreased as a result of planned maintenance. Oxyfuels & Related Products results increased about $30 million due to increased margin and volume. Margin improved driven by low-cost butane and a higher gasoline blend premium.
Three months ended September 30, 2019 versus three months ended September 30, 2018 - EBITDA decreased $114 million versus the third quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $15 million due to a small decline in volume. Intermediate Chemicals results decreased about $180 million driven by a decline in margin for most products. Volume decreased as a result of planned maintenance. Oxyfuels & Related Products results increased more than $75 million. Margin increased due to low-cost butane and contract price improvements.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1. A. Schulman was acquired on August 21, 2018, and results from the acquisition are included prospectively.
Table 5 - Advanced Polymer Solutions Financial Overview
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $67 | $91 | $48 | $277 | $274 |
EBITDA | 102 | 120 | 70 | 370 | 314 |
Three months ended September 30, 2019 versus three months ended June 30, 2019 - EBITDA decreased $18 million versus the second quarter 2019. Integration costs related to the acquisition of A. Schulman and assigned to the segment were $24 million higher in the third quarter 2019 versus the second quarter. Compared with the prior period, Compounding & Solutions results were relatively unchanged. Advanced Polymers results improved approximately $10 million driven by modest improvement in construction demand.
Three months ended September 30, 2019 versus three months ended September 30, 2018 - EBITDA increased $32 million versus the third quarter 2018. Integration costs related to the acquisition and assigned to the segment were $43 million during the third quarter 2019, $6 million dollars lower than the transaction and integration costs in the third quarter 2018. Compared with the prior period, Compounding & Solutions results increased $30 million primarily due to the addition of new product lines from the acquisition. Advanced Polymers results were relatively unchanged.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income (loss) | $(52) | $(110) | $38 | $(221) | $111 |
EBITDA | (6) | (66) | 84 | (87) | 251 |
Three months ended September 30, 2019 versus three months ended June 30, 2019 - EBITDA increased $60 million versus the second quarter 2019. Margin improved due to improved availability of favorably-priced heavy sour crude oils in the U.S. Gulf Coast market. The Houston Refinery continued to run well with crude throughput increasing to 264,000 barrels per day.
Three months ended September 30, 2019 versus three months ended September 30, 2018 - EBITDA decreased $90 million versus the third quarter 2018. Margin declined primarily due to a decrease in the Maya 2-1-1 spread of $3.30 per barrel to $18.13 per barrel and lower by-product prices. Crude throughput was 264,000 barrels per day, 33,000 barrels per day more than the prior period due to completion of planned maintenance in the second half of 2018.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview
Millions of U.S. dollars | Three Months Ended | Nine Months Ended | |||
September 30, | June 30, | September 30, | September 30, | September 30, | |
Operating income | $73 | $96 | $88 | $242 | $234 |
EBITDA | 83 | 107 | 98 | 273 | 267 |
Three months ended September 30, 2019 versus three months ended June 30, 2019 - EBITDA decreased $24 million versus the second quarter 2019 primarily due to a decrease in licensing revenue as several licenses reached revenue milestones in the prior quarter.
Three months ended September 30, 2019 versus three months ended September 30, 2018 - EBITDA decreased $15 million versus the third quarter 2018.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $742 million during the third quarter 2019. Our cash and liquid investment balance was $1.1 billion at September 30, 2019. There were 333 million common shares outstanding as of September 30, 2019. The company paid dividends of $351 million during the third quarter 2019.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call November 1 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 2:00 p.m. EDT November 1 until December 1 at 11:59 p.m. EST. The replay dial-in numbers are 888-568-0509 (U.S.) and +1 203-369-3479 (international). The passcode for each is 5713.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2018, 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.
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.
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.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | |||||||||||||||||||||||||||||||
2018 | 2019 | ||||||||||||||||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Total | ||||||||||||||||||||||
Sales and other operating revenues: | |||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,646 | $ | 2,542 | $ | 2,770 | $ | 2,450 | $ | 10,408 | $ | 2,111 | $ | 2,114 | $ | 2,137 | $ | 6,362 | |||||||||||||
Olefins & Polyolefins - EAI | 2,960 | 2,900 | 2,643 | 2,335 | 10,838 | 2,535 | 2,505 | 2,309 | 7,349 | ||||||||||||||||||||||
Intermediates & Derivatives | 2,343 | 2,584 | 2,509 | 2,152 | 9,588 | 1,894 | 2,062 | 2,046 | 6,002 | ||||||||||||||||||||||
Advanced Polymer Solutions | 838 | 833 | 1,039 | 1,314 | 4,024 | 1,339 | 1,258 | 1,186 | 3,783 | ||||||||||||||||||||||
Refining | 2,257 | 2,569 | 2,499 | 1,832 | 9,157 | 1,882 | 2,180 | 2,134 | 6,196 | ||||||||||||||||||||||
Technology | 115 | 182 | 171 | 115 | 583 | 141 | 173 | 146 | 460 | ||||||||||||||||||||||
Other/Eliminations | (1,392) | (1,404) | (1,476) | (1,322) | (5,594) | (1,124) | (1,244) | (1,236) | (3,604) | ||||||||||||||||||||||
Continuing operations | $ | 9,767 | $ | 10,206 | $ | 10,155 | $ | 8,876 | $ | 39,004 | $ | 8,778 | $ | 9,048 | $ | 8,722 | $ | 26,548 | |||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 629 | $ | 543 | $ | 572 | $ | 507 | $ | 2,251 | $ | 384 | $ | 504 | $ | 524 | $ | 1,412 | |||||||||||||
Olefins & Polyolefins - EAI | 281 | 245 | 141 | 15 | 682 | 186 | 226 | 202 | 614 | ||||||||||||||||||||||
Intermediates & Derivatives | 408 | 569 | 431 | 308 | 1,716 | 314 | 372 | 314 | 1,000 | ||||||||||||||||||||||
Advanced Polymer Solutions | 114 | 112 | 48 | 55 | 329 | 119 | 91 | 67 | 277 | ||||||||||||||||||||||
Refining | 15 | 58 | 38 | (139) | (28) | (59) | (110) | (52) | (221) | ||||||||||||||||||||||
Technology | 46 | 100 | 88 | 50 | 284 | 73 | 96 | 73 | 242 | ||||||||||||||||||||||
Other | 1 | (1) | (1) | (2) | (3) | — | (2) | (4) | (6) | ||||||||||||||||||||||
Continuing operations | $ | 1,494 | $ | 1,626 | $ | 1,317 | $ | 794 | $ | 5,231 | $ | 1,017 | $ | 1,177 | $ | 1,124 | $ | 3,318 | |||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 106 | $ | 109 | $ | 111 | $ | 116 | $ | 442 | $ | 115 | $ | 117 | $ | 118 | $ | 350 | |||||||||||||
Olefins & Polyolefins - EAI | 56 | 52 | 50 | 50 | 208 | 53 | 52 | 51 | 156 | ||||||||||||||||||||||
Intermediates & Derivatives | 73 | 72 | 71 | 71 | 287 | 72 | 74 | 75 | 221 | ||||||||||||||||||||||
Advanced Polymer Solutions | 8 | 9 | 22 | 30 | 69 | 29 | 30 | 32 | 91 | ||||||||||||||||||||||
Refining | 46 | 46 | 45 | 55 | 192 | 43 | 44 | 41 | 128 | ||||||||||||||||||||||
Technology | 10 | 12 | 10 | 11 | 43 | 10 | 11 | 10 | 31 | ||||||||||||||||||||||
Continuing operations | $ | 299 | $ | 300 | $ | 309 | $ | 333 | $ | 1,241 | $ | 322 | $ | 328 | $ | 327 | $ | 977 | |||||||||||||
EBITDA:(a) | |||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 756 | $ | 671 | $ | 704 | $ | 631 | $ | 2,762 | $ | 516 | $ | 635 | $ | 653 | $ | 1,804 | |||||||||||||
Olefins & Polyolefins - EAI | 419 | 355 | 262 | 127 | 1,163 | 296 | 331 | 291 | 918 | ||||||||||||||||||||||
Intermediates & Derivatives | 486 | 642 | 504 | 379 | 2,011 | 390 | 448 | 390 | 1,228 | ||||||||||||||||||||||
Advanced Polymer Solutions | 123 | 121 | 70 | 86 | 400 | 148 | 120 | 102 | 370 | ||||||||||||||||||||||
Refining | 63 | 104 | 84 | (84) | 167 | (15) | (66) | (6) | (87) | ||||||||||||||||||||||
Technology | 56 | 113 | 98 | 61 | 328 | 83 | 107 | 83 | 273 | ||||||||||||||||||||||
Other | 10 | 4 | 10 | 12 | 36 | 10 | 4 | — | 14 | ||||||||||||||||||||||
Continuing operations | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 4,520 | |||||||||||||
Capital, turnarounds and IT deferred spending: | |||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 242 | $ | 311 | $ | 247 | $ | 279 | $ | 1,079 | $ | 276 | $ | 257 | $ | 295 | $ | 828 | |||||||||||||
Olefins & Polyolefins - EAI | 58 | 40 | 58 | 92 | 248 | 64 | 39 | 45 | 148 | ||||||||||||||||||||||
Intermediates & Derivatives | 68 | 80 | 100 | 161 | 409 | 179 | 238 | 317 | 734 | ||||||||||||||||||||||
Advanced Polymer Solutions | 15 | 10 | 16 | 21 | 62 | 16 | 11 | 14 | 41 | ||||||||||||||||||||||
Refining | 36 | 45 | 47 | 122 | 250 | 43 | 53 | 41 | 137 | ||||||||||||||||||||||
Technology | 8 | 9 | 12 | 19 | 48 | 17 | 17 | 26 | 60 | ||||||||||||||||||||||
Other | 2 | 1 | 2 | 4 | 9 | 4 | 7 | 4 | 15 | ||||||||||||||||||||||
Continuing operations | $ | 429 | $ | 496 | $ | 482 | $ | 698 | $ | 2,105 | $ | 599 | $ | 622 | $ | 742 | $ | 1,963 | |||||||||||||
(a) | See Table 9 for the reconciliation of EBITDA to net income. |
Table 9 - Reconciliation of Net Income to EBITDA | |||||||||||||||||||||||||||||
2018 | 2019 | ||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Total | ||||||||||||||||||||
Net income (a)(b) | $ | 1,231 | $ | 1,654 | $ | 1,113 | $ | 692 | $ | 4,690 | $ | 817 | $ | 1,003 | $ | 965 | $ | 2,785 | |||||||||||
Loss from discontinued operations, net of tax | — | 1 | 2 | 5 | 8 | — | 3 | 4 | 7 | ||||||||||||||||||||
Income from continuing operations(a)(b) | 1,231 | 1,655 | 1,115 | 697 | 4,698 | 817 | 1,006 | 969 | 2,792 | ||||||||||||||||||||
Provision for (benefit from) income taxes(b) | 303 | (21) | 232 | 99 | 613 | 203 | 169 | 136 | 508 | ||||||||||||||||||||
Depreciation and amortization | 299 | 300 | 309 | 333 | 1,241 | 322 | 328 | 327 | 977 | ||||||||||||||||||||
Interest expense, net | 80 | 76 | 76 | 83 | 315 | 86 | 76 | 81 | 243 | ||||||||||||||||||||
EBITDA(c) | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | $ | 1,579 | $ | 1,513 | $ | 4,520 | |||||||||||
(a) | The third quarter of 2018, fourth quarter of 2018, first quarter of 2019, second quarter of 2019 and third quarter of 2019 include after-tax charges of $42 million, $15 million, $12 million, $15 million and $33 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. |
(b) | The second quarter of 2018 and third quarter of 2019 includes a non-cash benefit of $346 million and $85 million, respectively, from the release of unrecognized tax benefits and associated accrued interest. |
(c) | EBITDA for the third quarter of 2018, fourth quarter of 2018, first quarter of 2019, second quarter of 2019 and third quarter of 2019 include pre-tax charges of $53 million, $20 million, $16 million, $19 million and $43 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. |
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SOURCE LyondellBasell Industries
Article Date
11/1/2019LyondellBasell to Discuss Third-Quarter Results on Friday, November 1, 2019
Source: PR Newswire
HOUSTON and LONDON, Oct. 18, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce third-quarter 2019 financial results before the U.S. market opens on Friday, Nov. 1 followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, Nov. 1, 2019
11:00 a.m. EDT
Hosted by David Kinney, director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.LyondellBasell.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.LyondellBasell.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.LyondellBasell.com/earnings.
Replay Information
A replay of the call will be available from 2:00 p.m. EDT Nov. 1 until 11:59 p.m. EST Dec. 1. The replay dial-in numbers are:
Toll-Free: 1-888-568-0509
Toll: 203-369-3479
Passcode: 5713
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
10/18/2019LyondellBasell Announces Construction of New Small-Scale Molecular Recycling Facility
Source: PR Newswire
The new facility complements the company's existing mechanical recycling activities
ROTTERDAM, Netherlands and HOUSTON, Oct. 15, 2019 /PRNewswire/ -- LyondellBasell today announced that it is building a new small-scale pilot facility at its Ferrara, Italy site moving another step closer to converting post-consumer plastic waste into new plastics on a commercial scale. The company selected its Ferrara site for the pilot facility due to its long history of research and development, including catalyst development.
Through its collaboration with the Karlsruhe Institute of Technology (KIT), LyondellBasell's proprietary molecular recycling technology, known as MoReTec, has shown that use of a catalyst in the pyrolysis process, or the structural breakdown of plastic waste into molecules, is faster and more energy efficient than traditional chemical recycling.
"We have advanced our chemical recycling capabilities over the last 15 months, and through research and testing we are studying a number of LyondellBasell proprietary catalyst options," said Jim Seward, LyondellBasell Senior Vice President of Research & Development, Technology and Sustainability. "In addition to continuing the development of our catalyst options, our investment in a small-scale pilot facility will help us to advance MoReTec technology towards commercial scale in our quest to achieving a true circular economy."
LyondellBasell's MoReTec technology has the goal to convert typically difficult to recycle plastic waste such as multi-layer films, returning them to their molecular state to be used as feedstock to produce new plastic for all applications including food contact and healthcare items. While MoReTec is based on chemical recycling, it also includes a proprietary catalyst-based approach.
LyondellBasell believes this approach has significant potential due to its lower energy use and faster chemical conversion process which uses less heat.
In the coming months, LyondellBasell will continue its construction of its pilot facility at Ferrara, while also focusing on the interaction of various waste types on the molecular recycling process, catalyst selection, and process conditions.
The development of molecular recycling is just one of the three ways LyondellBasell is advancing sustainable solutions as it relates to plastic waste. LyondellBasell is also actively involved in mechanical recycling through its Quality Circular Polymers (QCP) joint venture with SUEZ, which converts post-consumer plastic waste into new plastic pellets that are used in applications ranging from electrical appliances, washing detergent bottles and suitcases. Additionally, LyondellBasell has produced new bioplastics from 100% renewable raw materials such as cooking and vegetable oil waste, which can be used to create items such as food packaging, toys and furniture.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
10/15/201910/14/2019 - LyondellBasell Names Michael McMurray Executive Vice President and Chief Financial Officer
LyondellBasell Names Michael McMurray Executive Vice President and Chief Financial Officer
Source: PR Newswire
HOUSTON and LONDON, Oct. 14, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that Michael McMurray has been appointed executive vice president and chief financial officer (CFO), effective Nov. 5, 2019. McMurray replaces Thomas Aebischer who, earlier this year, elected to retire at the end of 2019.
"Having worked in a wide variety of roles over his career, Michael has deep knowledge of financial markets and brings a diverse, global perspective to the finance function," said Bob Patel, CEO of LyondellBasell. "Because he has worked both upstream and downstream of LyondellBasell, he has a unique perspective on market dynamics and how we can continue to create and deliver value."
McMurray joins LyondellBasell following a nearly 11-year career at Owens Corning where he served as vice president, Investor Relations and treasurer; vice president, Finance for the Building Materials Group; and, for the past seven years, as chief financial officer. Prior to Owens Corning, McMurray spent 21 years in various positions of increasing responsibility with Royal Dutch Shell including as vice president, Shell Capital; global treasurer for Shell Chemicals; and Americas Finance manager for the Lubricants business.
McMurray sits on the board of directors for Flowserve (NYSE: FLS), a global pumps and valves manufacturer. Mr. McMurray earned a bachelor's degree in Business Administration from Trinity University in San Antonio, Texas and an MBA from Tulane University in New Orleans, Louisiana.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
10/14/2019LyondellBasell Prices Public Offering of Guaranteed Notes
Source: PR Newswire
HOUSTON and LONDON, Sept. 26, 2019 /PRNewswire/ -- LyondellBasell Industries N.V. (NYSE: LYB) ("LyondellBasell") announced today that LYB International Finance III, LLC, its wholly-owned subsidiary, priced a public offering (the "Offering") of $1 billion aggregate principal amount of 4.200% Guaranteed Notes due 2049 (the "Notes"). The Notes will be fully and unconditionally guaranteed by LyondellBasell. The Offering is expected to close on October 10, 2019, subject to the satisfaction of customary closing conditions. The net proceeds of the Offering are expected to be used to repay a portion of the indebtedness outstanding under LyondellBasell's 364-day, $2,000 million senior unsecured term loan facility.
Mizuho Securities USA LLC and Wells Fargo Securities, LLC are acting as the joint book-running managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (SEC). Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the accompanying base prospectus may be obtained by calling Mizuho Securities USA LLC toll-free at 1-866-271-7406 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward-Looking Statements
The statements in this release 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; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's 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 the preliminary prospectus supplement and the accompany base prospectus and in LyondellBasell's Form 10-K for the year ended December 31, 2018, which can be found on the SEC's website at www.sec.gov.
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SOURCE LyondellBasell Industries
Article Date
9/26/2019LyondellBasell Volunteers Turn Out in Full Force for 20th Annual Global Care Day
Source: PR Newswire
HOUSTON and ROTTERDAM, Netherlands, Sept. 26, 2019 /PRNewswire/ -- As LyondellBasell marks two decades of service projects through its annual Global Care Day program, sustainability and helping to eliminate plastic waste in our environment takes center stage on many of the global efforts. Five thousand employees, their families and other volunteers rolled up their sleeves to leave a positive and lasting impact in the communities where they operate.
"We moved on multiple fronts for Global Care Day taking part in a variety of activities from clean up and plastic waste collection to supporting community sustainability projects," said Bob Patel, LyondellBasell CEO. "Celebrating 20 years of giving back to our communities is a tremendous achievement and having the ability to tie some of our activities to the removal of plastic waste from the environment is a natural extension of our company's overall sustainability efforts."
LyondellBasell staff, along with their families, friends and contractors joined forces to preserve and protect our environment by collecting trash in public waterways, planting trees to create new green spaces, built nature centers and more.
"All of us should be committed as citizens, as companies and a society to truly making a difference and delivering on that commitment for future generations," said Jim Seward, LyondellBasell senior vice president, Sustainability, Technology and Research and Development. "I am proud of our continued efforts to think differently, reduce our environmental footprint and understand how our efforts can make a difference on a larger scale. Global Care Day was one part in the ongoing actions and conversations we are taking as a corporation."
Here are some of LyondellBasell's Global Care Day projects:
Rayong, Thailand
Employees, contractors and friends collected garbage on Laem Chareon Beach in Rayong, Thailand. The cleanup effort was part of an educational campaign in waste management for employees.
Rotterdam, The Netherlands
Employees and volunteers spent time at Vroesenpark in Blijdorp, Rotterdam where they collected garbage, helping to revitalize a popular park.
Sinnar, India (APS)
With a goal of putting 400 trees in the ground, planting occurred on Vavala Mountain Gurudatta Trust and Janta Vidyalaya School. There was also an educational piece to help showcase the value of giving back to the ecosystem by keeping the environment clean.
Corpus Christi, Texas
This team had a long to-do list including constructing large bird housing for rehabilitation and cleaning up debris on the Port Aransas jetties and St. Joseph's Island which is often overlooked in clean-up efforts because it is only accessible by boat. The staff also assisted in the release of a rehabilitated sea turtle.
Some of the larger sites such as Wesseling, Germany and Channelview, Texas, USA, organized multiple projects and this was the first year for the former A. Schulman locations to take part. In Akron, Ohio, USA, volunteers picked up litter and removed hazards along the popular Freedom Trail. In Houston, the company's operations headquarter office shifted their Global Care Day efforts to focus on sustainability. The team of approximately 300 volunteers gathered at Hermann Park together to plant, landscape and paint. More than 100 LyondellBasell locations gathered their resources and dedicated their time and energy for this year's event.
Media Contact:
Megan Borchers
O: 815.942.7474
C: 815.210.1980
Email: megan.borchers@lyb.com
About Global Care Day
Global Care Day began in 2000 as a volunteer-driven effort to encourage worldwide volunteerism in the communities where LyondellBasell operates. For this year's event, an estimated 5,000 employees and their families are lending their time and talents to projects focused on waste cleanup and sustainability. This massive event is just one way LyondellBasell is leading the effort to reduce environmental impacts and be a responsible, good neighbor by protecting and preserving our global environment.
On a cumulative basis, LyondellBasell mobilized approximately 33,600 volunteers who donated nearly 212,000 hours in support of their communities since the inception of Global Care Day.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
9/26/2019LyondellBasell to Host Investor Day 2019 on September 24, 2019
Source: PR Newswire
HOUSTON and LONDON, Sept. 17, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will hold Investor Day 2019 in Houston on September 24 from 7:30 a.m. to 11:30 a.m. CDT. The program will feature presentations from CEO Bob Patel and other LyondellBasell executives highlighting corporate strategy, business plans and performance.
Webcast Access
A live webcast featuring both audio and presentation slides will be available via the Investor Events page on the company website, www.LyondellBasell.com/investorevents. The webcast will be open for registration beginning at 7:15 a.m. CDT on September 24.
Presentation Slides
Presentation slides will be available at the time of the presentation through the webcast. Afterwards, the slides will be available in the Investor Relations section of the company's website and accessible at www.LyondellBasell.com/investorevents.
Webcast Replay
A replay of the webcast will be available via the company's website, accessible at www.LyondellBasell.com/investorevents, from 9:00 a.m. CDT September 25 through October 25.
Related Disclosures
Required reconciliations of certain non-GAAP financial measures to GAAP financial measures and any other applicable disclosures (including the slides) will be available at the time of the presentation and afterwards at www.LyondellBasell.com/investorevents.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
9/17/2019LyondellBasell Prices Public Offering of Guaranteed Notes
Source: PR Newswire
HOUSTON and LONDON, Sept. 10, 2019 /PRNewswire/ -- LyondellBasell Industries N.V. (NYSE: LYB) ("LyondellBasell") announced today that LYB International Finance II B.V., its wholly-owned subsidiary, priced a public offering (the "Offering") of €500 million aggregate principal amount of 0.875% Guaranteed Notes due 2026 (the "2026 Notes") and €500 million aggregate principal amount of 1.625% Guaranteed Notes due 2031 (together with the 2026 Notes, the "Notes"). The Notes will be fully and unconditionally guaranteed by LyondellBasell. The Offering is expected to close on September 17, 2019, subject to the satisfaction of customary closing conditions. The net proceeds of the Offering are expected to be used to repay the $1,000 million of indebtedness outstanding under LyondellBasell's $4,000 million three-year term loan facility and a portion of LyondellBasell's outstanding short-term debt, including commercial paper.
Citigroup Global Markets Limited and Deutsche Bank AG, London Branch are acting as the joint book-running managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (SEC). Copies of the preliminary prospectus supplement and the accompanying base prospectus relating to the Offering may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the accompanying base prospectus may be obtained by calling Citigroup Global Markets Limited toll-free at 1-800-831-9146 or Deutsche Bank AG, London Branch toll-free at 1-800-503-4611.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward-Looking Statements
The statements in this release 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; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's 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 the preliminary prospectus supplement and the accompany base prospectus and in LyondellBasell's Form 10-K for the year ended December 31, 2018, which can be found on the SEC's website at www.sec.gov.
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SOURCE LyondellBasell Industries
Article Date
9/10/20198/23/2019 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Aug. 23, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.05 per share, to be paid September 11, 2019 to shareholders of record September 4, 2019, with an ex-dividend date of September 3, 2019.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
8/23/2019LyondellBasell Reports Second Quarter 2019 Earnings
Source: PR Newswire
HOUSTON and LONDON, Aug. 2, 2019 /PRNewswire/ --
Second Quarter 2019 Highlights
Comparisons with the prior quarter and second quarter 2018 are available in the following table:
Table 1 - Earnings Summary
Millions of U.S. dollars (except share data) | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Sales and other operating revenues | $9,048 | $8,778 | $10,206 | $17,826 | $19,973 |
Net income | 1,003 | 817 | 1,654 | 1,820 | 2,885 |
Diluted earnings per share | 2.70 | 2.19 | 4.22 | 4.88 | 7.33 |
Weighted average diluted share count | 370 | 372 | 392 | 371 | 394 |
EBITDA (a) | 1,579 | 1,428 | 2,010 | 3,007 | 3,923 |
(a) | See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to net income. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the second quarter 2019 of $1.0 billion, or $2.70 per share. Second quarter 2019 EBITDA was $1.6 billion. Integration activities related to the acquisition of A. Schulman are on schedule and expected to generate approximately $100 million in forward annual run-rate synergies as of the close of the second quarter.
"LyondellBasell's leading business portfolio, strong operations and advantaged assets delivered value in the second quarter by serving global consumer-driven demand for our products. Increased seasonal demand and reduced feedstock costs improved ethylene chain margins for both of our Olefins & Polyolefins segments. In our Intermediates & Derivatives segment, robust seasonal margins increased profitability from our Oxyfuels & Related Products business. Despite our Houston refinery operating at 97% of nameplate capacity, low discounts for heavy sour crude oil in the U.S. Gulf Coast market continued to pressure the profitability of our Refining segment," said Bob Patel, LyondellBasell CEO.
"In the second quarter we continued to advance our value-driven growth strategy. Our disciplined approach to capital deployment remains unchanged. We executed on this strategy in the second quarter by raising our dividend, moving forward on our projects to sustain and grow our assets, ending discussions regarding the potential acquisition of Braskem and launching a substantial share repurchase while maintaining our strong investment grade credit rating. The tender offer demonstrates our confidence in the value of our company and the outlook for our business," Patel said.
OUTLOOK
"In July, we continue to see resilient demand for the majority of our products with consumer-based demand driving stable volumes for our Olefins & Polyolefins segments. In North America, the majority of the ethylene crackers and polyethylene plants planned to start between 2016 and 2019 has been commissioned and more than 70% of the polyethylene capacity is now operational. We expect low-cost natural gas liquid feedstocks will continue to drive strong chain margin in our Olefins & Polyolefins Americas segment as well as our Oxyfuels and Related Products business. Looking beyond the quarter, we look forward to the start-up of our Hyperzone HDPE plant during the second half of this year," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology. Results for our Advanced Polymer Solutions segment incorporates the businesses acquired from A. Schulman beginning on August 21, 2018. Historical segment results for Olefins and Polyolefins - Americas and Olefins and Polyolefins - Europe, Asia and International prior to the acquisition were recast as a result of the shift of polypropylene compounds, Catalloy and polybutene-1 product lines to Advanced Polymer Solutions.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $504 | $384 | $543 | $888 | $1,172 |
EBITDA | 635 | 516 | 671 | 1,151 | 1,427 |
Three months ended June 30, 2019 versus three months ended March 31, 2019 - EBITDA increased $119 million versus the first quarter 2019. Compared with the prior period, olefins results increased approximately $90 million. Ethylene margin improved as feedstock price declines outpaced a decline in the price of ethylene and sales volume increased. Polyethylene results increased more than $25 million primarily due to a spread increase for polyethylene over ethylene of nearly $65 per ton.
Three months ended June 30, 2019 versus three months ended June 30, 2018 - EBITDA decreased $36 million versus the second quarter 2018. Compared with the prior period, olefins results increased more than $150 million. Ethylene margin improved primarily due to decreased feedstock costs and increased co-product prices. Polyolefins results decreased about $190 million driven by a spread decline in polyethylene over ethylene of approximately $225 per ton.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins and Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $226 | $186 | $245 | $412 | $526 |
EBITDA | 331 | 296 | 355 | 627 | 774 |
Three months ended June 30, 2019 versus three months ended March 31, 2019 - EBITDA increased $35 million versus the first quarter 2019. Compared with the prior period, olefins results increased more than $55 million. Margin improved driven by an increase in the price of ethylene and volume increased with improved operating rates. Combined polyolefins results decreased $15 million driven by lower volumes.
Three months ended June 30, 2019 versus three months ended June 30, 2018 - EBITDA decreased $24 million versus the second quarter 2018. Results for the second quarter 2019 include the impact of approximately $15 million due to a decrease in the euro versus the U.S. dollar exchange rate relative to the second quarter 2018. Compared with the prior period, olefins results increased more than $30 million driven by an improvement in margin as declines in feedstock costs outpaced ethylene price declines. Combined polyolefins results decreased approximately $25 million. Polypropylene spread over propylene declined about $55 per ton and polyethylene volume declined.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels and Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $372 | $314 | $569 | $686 | $977 |
EBITDA | 448 | 390 | 642 | 838 | 1,128 |
Three months ended June 30, 2019 versus three months ended March 31, 2019 - EBITDA increased $58 million versus the first quarter 2019. Compared with the prior period, Propylene Oxide & Derivatives results decreased $35 million primarily due to a decline in volume. Intermediate Chemicals results increased more than $25 million driven by an increase in volume for most products. Oxyfuels & Related Products results increased approximately $75 million primarily due to seasonal margin improvements.
Three months ended June 30, 2019 versus three months ended June 30, 2018 - EBITDA decreased $194 million versus the record-setting second quarter 2018 results. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $55 million primarily due to a decline in volume. Intermediate Chemicals results decreased $125 million driven by a decline in margin and volume for most products. Oxyfuels & Related Products were relatively unchanged with margin improvements offsetting volume declines.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1. A. Schulman was acquired on August 21, 2018, and results from the acquisition are included prospectively.
Table 5 - Advanced Polymer Solutions Financial Overview
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $91 | $119 | $112 | $210 | $226 |
EBITDA | 120 | 148 | 121 | 268 | 244 |
Three months ended June 30, 2019 versus three months ended March 31, 2019 - EBITDA decreased $28 million versus the first quarter 2019. Integration costs related to the acquisition of A. Schulman and assigned to the segment were $3 million higher in the second quarter 2019 versus the first quarter. Compared with the prior period, Compounding & Solutions results decreased approximately $20 million. Volume declined in most products and margin declined primarily due to a lag in raw material pricing for polypropylene compounds. Advanced Polymers results were relatively unchanged.
Three months ended June 30, 2019 versus three months ended June 30, 2018 - EBITDA decreased $1 million versus the second quarter 2018. Integration costs related to the acquisition and assigned to the segment were $19 million during the second quarter 2019. Compared with the prior period, Compounding & Solutions results increased $35 million primarily due to the addition of new product lines from the acquisition partially offset by reduced polypropylene compounds volume. Advanced Polymers results decreased approximately $20 million driven by reduced volume and margin.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income (loss) | $(110) | $(59) | $58 | $(169) | $73 |
EBITDA | (66) | (15) | 104 | (81) | 167 |
Three months ended June 30, 2019 versus three months ended March 31, 2019 - EBITDA decreased $51 million versus the first quarter 2019. The Maya 2-1-1 industry benchmark crack spread increased $5.44 per barrel to $18.99 per barrel for the second quarter. Margin declined due to higher prices for heavy sour crude oil purchased on the U.S. Gulf Coast spot market. The Houston Refinery continued to run well with crude throughput relatively unchanged at 261,000 barrels per day.
Three months ended June 30, 2019 versus three months ended June 30, 2018 - EBITDA decreased $170 million versus the second quarter 2018. Margin declined due to challenging market conditions and weakness in naphtha and propylene. The Maya 2-1-1 spread decreased $6.95 per barrel to $18.99 per barrel. Crude throughput was relatively unchanged at 261,000 barrels per day.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview
Millions of U.S. dollars | Three Months Ended | Six Months Ended | |||
June 30, | March 31, | June 30, | June 30, | June 30, | |
Operating income | $96 | $73 | $100 | $169 | $146 |
EBITDA | 107 | 83 | 113 | 190 | 169 |
Three months ended June 30, 2019 versus three months ended March 31, 2019 - EBITDA increased $24 million versus the first quarter 2019 primarily due to an increase in licensing revenue as several licenses reached revenue milestones.
Three months ended June 30, 2019 versus three months ended June 30, 2018 - EBITDA decreased $6 million versus the second quarter 2018.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $622 million during the second quarter 2019. Our cash and liquid investment balance was $1.9 billion at June 30, 2019. There were 370 million common shares outstanding as of June 30, 2019. The company paid dividends of $388 million during the second quarter 2019.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call August 2 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 2:00 p.m. EDT August 2 until September 1 at 11:59 p.m. EDT. The replay dial-in numbers are 888-277-9385 (U.S.) and +1 402-998-0509 (international). The passcode for each is 5713.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2018, 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.
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.
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.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | ||||||||||||||||||||||||||||||||
2018 | 2019 | |||||||||||||||||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | ||||||||||||||||||||||||
Sales and other operating revenues: | ||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,646 | $ | 2,542 | $ | 2,770 | $ | 2,450 | $ | 10,408 | $ | 2,111 | $ | 2,114 | $ | 4,225 | ||||||||||||||||
Olefins & Polyolefins - EAI | 2,960 | 2,900 | 2,643 | 2,335 | 10,838 | 2,535 | 2,505 | 5,040 | ||||||||||||||||||||||||
Intermediates & Derivatives | 2,343 | 2,584 | 2,509 | 2,152 | 9,588 | 1,894 | 2,062 | 3,956 | ||||||||||||||||||||||||
Advanced Polymer Solutions | 838 | 833 | 1,039 | 1,314 | 4,024 | 1,339 | 1,258 | 2,597 | ||||||||||||||||||||||||
Refining | 2,257 | 2,569 | 2,499 | 1,832 | 9,157 | 1,882 | 2,180 | 4,062 | ||||||||||||||||||||||||
Technology | 115 | 182 | 171 | 115 | 583 | 141 | 173 | 314 | ||||||||||||||||||||||||
Other/Eliminations | (1,392) | (1,404) | (1,476) | (1,322) | (5,594) | (1,124) | (1,244) | (2,368) | ||||||||||||||||||||||||
Continuing operations | $ | 9,767 | $ | 10,206 | $ | 10,155 | $ | 8,876 | $ | 39,004 | $ | 8,778 | $ | 9,048 | $ | 17,826 | ||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 629 | $ | 543 | $ | 572 | $ | 507 | $ | 2,251 | $ | 384 | $ | 504 | $ | 888 | ||||||||||||||||
Olefins & Polyolefins - EAI | 281 | 245 | 141 | 15 | 682 | 186 | 226 | 412 | ||||||||||||||||||||||||
Intermediates & Derivatives | 408 | 569 | 431 | 308 | 1,716 | 314 | 372 | 686 | ||||||||||||||||||||||||
Advanced Polymer Solutions | 114 | 112 | 48 | 55 | 329 | 119 | 91 | 210 | ||||||||||||||||||||||||
Refining | 15 | 58 | 38 | (139) | (28) | (59) | (110) | (169) | ||||||||||||||||||||||||
Technology | 46 | 100 | 88 | 50 | 284 | 73 | 96 | 169 | ||||||||||||||||||||||||
Other | 1 | (1) | (1) | (2) | (3) | — | (2) | (2) | ||||||||||||||||||||||||
Continuing operations | $ | 1,494 | $ | 1,626 | $ | 1,317 | $ | 794 | $ | 5,231 | $ | 1,017 | $ | 1,177 | $ | 2,194 | ||||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 106 | $ | 109 | $ | 111 | $ | 116 | $ | 442 | $ | 115 | $ | 117 | $ | 232 | ||||||||||||||||
Olefins & Polyolefins - EAI | 56 | 52 | 50 | 50 | 208 | 53 | 52 | 105 | ||||||||||||||||||||||||
Intermediates & Derivatives | 73 | 72 | 71 | 71 | 287 | 72 | 74 | 146 | ||||||||||||||||||||||||
Advanced Polymer Solutions | 8 | 9 | 22 | 30 | 69 | 29 | 30 | 59 | ||||||||||||||||||||||||
Refining | 46 | 46 | 45 | 55 | 192 | 43 | 44 | 87 | ||||||||||||||||||||||||
Technology | 10 | 12 | 10 | 11 | 43 | 10 | 11 | 21 | ||||||||||||||||||||||||
Continuing operations | $ | 299 | $ | 300 | $ | 309 | $ | 333 | $ | 1,241 | $ | 322 | $ | 328 | $ | 650 | ||||||||||||||||
EBITDA:(a) | ||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 756 | $ | 671 | $ | 704 | $ | 631 | $ | 2,762 | $ | 516 | $ | 635 | $ | 1,151 | ||||||||||||||||
Olefins & Polyolefins - EAI | 419 | 355 | 262 | 127 | 1,163 | 296 | 331 | 627 | ||||||||||||||||||||||||
Intermediates & Derivatives | 486 | 642 | 504 | 379 | 2,011 | 390 | 448 | 838 | ||||||||||||||||||||||||
Advanced Polymer Solutions | 123 | 121 | 70 | 86 | 400 | 148 | 120 | 268 | ||||||||||||||||||||||||
Refining | 63 | 104 | 84 | (84) | 167 | (15) | (66) | (81) | ||||||||||||||||||||||||
Technology | 56 | 113 | 98 | 61 | 328 | 83 | 107 | 190 | ||||||||||||||||||||||||
Other | 10 | 4 | 10 | 12 | 36 | 10 | 4 | 14 | ||||||||||||||||||||||||
Continuing operations | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | $ | 1,579 | $ | 3,007 | ||||||||||||||||
Capital, turnarounds and IT deferred spending: | ||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 242 | $ | 311 | $ | 247 | $ | 279 | $ | 1,079 | $ | 276 | $ | 257 | $ | 533 | ||||||||||||||||
Olefins & Polyolefins - EAI | 58 | 40 | 58 | 92 | 248 | 64 | 39 | 103 | ||||||||||||||||||||||||
Intermediates & Derivatives | 68 | 80 | 100 | 161 | 409 | 179 | 238 | 417 | ||||||||||||||||||||||||
Advanced Polymer Solutions | 15 | 10 | 16 | 21 | 62 | 16 | 11 | 27 | ||||||||||||||||||||||||
Refining | 36 | 45 | 47 | 122 | 250 | 43 | 53 | 96 | ||||||||||||||||||||||||
Technology | 8 | 9 | 12 | 19 | 48 | 17 | 17 | 34 | ||||||||||||||||||||||||
Other | 2 | 1 | 2 | 4 | 9 | 4 | 7 | 11 | ||||||||||||||||||||||||
Continuing operations | $ | 429 | $ | 496 | $ | 482 | $ | 698 | $ | 2,105 | $ | 599 | $ | 622 | $ | 1,221 | ||||||||||||||||
(a) See Table 9 for the reconciliation of EBITDA to net income. | ||||||||||||||||||||||||||||||||
Table 9 - Reconciliation of Net Income to EBITDA | ||||||||||||||||||||||||||||||||
2018 | 2019 | |||||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Total | ||||||||||||||||||||||||
Net income (a)(b) | $ | 1,231 | $ | 1,654 | $ | 1,113 | $ | 692 | $ | 4,690 | $ | 817 | $ | 1,003 | $ | 1,820 | ||||||||||||||||
Loss from discontinued operations, net of tax | — | 1 | 2 | 5 | 8 | — | 3 | 3 | ||||||||||||||||||||||||
Income from continuing operations(a)(b) | 1,231 | 1,655 | 1,115 | 697 | 4,698 | 817 | 1,006 | 1,823 | ||||||||||||||||||||||||
Provision for (benefit from) income taxes(b) | 303 | (21) | 232 | 99 | 613 | 203 | 169 | 372 | ||||||||||||||||||||||||
Depreciation and amortization | 299 | 300 | 309 | 333 | 1,241 | 322 | 328 | 650 | ||||||||||||||||||||||||
Interest expense, net | 80 | 76 | 76 | 83 | 315 | 86 | 76 | 162 | ||||||||||||||||||||||||
EBITDA(c) | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | $ | 1,579 | $ | 3,007 | ||||||||||||||||
(a) | The third quarter of 2018, fourth quarter of 2018, first quarter of 2019 and second quarter of 2019 include after-tax charges of $42 million, $15 million, | ||||||||||||||||||||||||||||||
(b) | The second quarter of 2018 includes a $346 million non-cash benefit from the release of unrecognized tax benefits and associated accrued interest. | ||||||||||||||||||||||||||||||
(c) | EBITDA for the third quarter of 2018, fourth quarter of 2018, first quarter of 2019 and second quarter of 2019 include pre-tax charges of $53 million, $20 million, $16 million and $19 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. | ||||||||||||||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
8/2/2019LyondellBasell to Discuss Second-Quarter Results on Friday, August 2, 2019
Source: PR Newswire
HOUSTON and LONDON, July 19, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce second-quarter 2019 financial results before the U.S. market opens on Friday, August 2 followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, August 2, 2019
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 2:00 p.m. EDT August 2 until 11:59 p.m. EDT September 1. The replay dial-in numbers are:
Toll-Free: 1-888-277-9385
Toll: 402-998-0509
Passcode: 5713
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
7/19/2019LyondellBasell Announces Final Results of Modified Dutch Auction Tender Offer
Source: PR Newswire
HOUSTON and LONDON, July 12, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced the final results of its "modified Dutch Auction" tender offer, which expired one (1) minute after 11:59 p.m., New York City time, on July 8, 2019.
Based on the final count by Computershare Trust Company, N.A., the depositary for the tender offer (the "Depositary"), a total of 35,144,596 shares of LyondellBasell's ordinary shares, €0.04 par value per share, were properly tendered and not properly withdrawn at or below the purchase price of $88.00 per share.
LyondellBasell has accepted for purchase 35,144,596 shares at a price of $88.00 per share, for an aggregate cost of approximately $3.09 billion, excluding fees and expenses relating to the tender offer. These shares represent approximately 9.5 percent of the shares outstanding as of July 8, 2019.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC acted as dealer managers for the tender offer. Shareholders who have questions or would like additional information about the tender offer may contact the information agent for the tender offer, Georgeson LLC, toll-free at (866) 300-8594.
About LyondellBasell
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward-Looking Statements
The statements in this release 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; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's debt. The accuracy of our expectations and predictions is also subject to the following risks and uncertainties: (1) the price and time at which we may make any additional share repurchases following completion of the tender offer and the number of shares acquired in such repurchases; and (2) changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in conditions of the United States or international lending, capital and financing markets. 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 LyondellBasell's Form 10-K for the year ended December 31, 2018, 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.
Investor Contact: David Kinney +1 713-309-7141
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SOURCE LyondellBasell Industries
Article Date
7/12/2019LyondellBasell Announces Preliminary Results of Modified Dutch Auction Tender Offer
Source: PR Newswire
HOUSTON and LONDON, July 9, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced the preliminary results of its "modified Dutch Auction" tender offer, which expired one (1) minute after 11:59 p.m., New York City time, on July 8, 2019.
Based on the preliminary count by Computershare Trust Company, N.A., the depositary for the tender offer (the "Depositary"), a total of 35,145,068 shares of LyondellBasell's ordinary shares, €0.04 par value per share, were properly tendered and not properly withdrawn at or below the purchase price of $88.00 per share, including 12,965,389 shares that were tendered by notice of guaranteed delivery.
In accordance with the terms and conditions of the tender offer and based on the preliminary count by the Depositary, LyondellBasell expects to acquire approximately 35,145,068 shares at a price of $88.00 per share, for an aggregate cost of approximately $3.09 billion, excluding fees and expenses relating to the tender offer. These shares represent approximately 9.5 percent of the shares outstanding as of July 8, 2019.
The number of shares to be purchased and the purchase price are preliminary and subject to change. The preliminary information contained in this press release is subject to confirmation by the Depositary and is based on the assumption that all shares tendered through notice of guaranteed delivery will be delivered within the two trading day settlement period. The final number of shares to be purchased and the final purchase price will be announced following the expiration of the guaranteed delivery period and completion by the Depositary of the confirmation process. Payment for the shares accepted under the tender offer, and return of all other shares tendered and not purchased, will occur promptly thereafter.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC acted as dealer managers for the tender offer. Shareholders who have questions or would like additional information about the tender offer may contact the information agent for the tender offer, Georgeson LLC, toll-free at (866) 300-8594.
About LyondellBasell
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward-Looking Statements
The statements in this release 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; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's debt. The accuracy of our expectations and predictions is also subject to the following risks and uncertainties: (1) the price and time at which we may make any additional share repurchases following completion of the tender offer and the number of shares acquired in such repurchases; and (2) changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in conditions of the United States or international lending, capital and financing markets. 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 LyondellBasell's Form 10-K for the year ended December 31, 2018, 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.
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SOURCE LyondellBasell Industries
Article Date
7/9/2019LyondellBasell Announces Final Daily VWAP and Final Price Cap of Tender Offer to Purchase Up to 37,000,000 of Its Shares
Source: PR Newswire
HOUSTON and LONDON, July 8, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB) (the "Company") today announced that it has determined the final Daily VWAP and the Final Price Cap (each as described below) pursuant to its previously announced tender offer to purchase up to 37,000,000 of its issued and outstanding ordinary shares, par value €0.04 per share (each, a "Share," and collectively, "Shares").
The final Daily VWAP is $87.3671 and the Final Price Cap for the tender offer is $96.1038. As set forth in the offer to purchase, the "Daily VWAP" is the daily per share volume-weighted average price for Shares on the New York Stock Exchange, as defined in more detail in the offer to purchase and the "Final Price Cap" is a price that equals 110% of the Daily VWAP on the Expiration Date of the tender offer.
The tender offer will expire at one (1) minute after 11:59 P.M., New York City time, on July 8, 2019 (the "Expiration Date").
Since the Final Price Cap of $96.1038 is greater than $88.00, the greatest single per Share price that the Company could pay for Shares properly tendered and not properly withdrawn from the tender offer, the Final Price Cap will not affect the single per Share price (the "Final Purchase Price") the Company will pay for Shares properly tendered and not properly withdrawn from the tender offer. The Final Purchase Price will be the lowest single purchase price, not greater than $88.00 nor less than $77.00 per Share that would allow the Company to purchase 37,000,000 Shares, or all Shares properly tendered and not properly withdrawn in the event that fewer than 37,000,000 Shares are properly tendered and not properly withdrawn.
The information agent for the tender offer is Georgeson LLC. The depositary for the tender offer is Computershare Trust Company, N.A. The dealer managers for the tender offer are J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. For all questions relating to the tender offer, please call the information agent, Georgeson LLC, toll-free at 1 (866) 300-8594; banks and brokers may call either dealer manager, J.P. Morgan Securities LLC at 1 (877) 371-5947 or Morgan Stanley & Co. LLC at 1 (855) 483-0952.
About LyondellBasell
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Additional Information Regarding the Tender Offer
This press release is for informational purposes only. This press release is not a recommendation to buy or sell Shares or any other securities of LyondellBasell, and it is neither an offer to purchase nor a solicitation of an offer to sell Shares or any other securities of LyondellBasell. LyondellBasell will be filing today a tender offer statement on Schedule TO, including an offer to purchase, a related letter of transmittal and other related materials, with the United States Securities and Exchange Commission (the "SEC"). The tender offer will only be made pursuant to the offer to purchase, the related letter of transmittal and other related materials filed as part of the issuer tender offer statement on Schedule TO, in each case as may be amended or supplemented from time to time. Shareholders should read carefully the offer to purchase, the related letter of transmittal and other related materials because they contain important information, including the various terms of, and conditions to, the tender offer. Shareholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the offer to purchase, the related letter of transmittal and other related materials that LyondellBasell will be filing with the SEC at the SEC's website at www.sec.gov. In addition, free copies of these documents may be obtained by contacting Georgeson LLC, the information agent for the tender offer, toll-free at 1 (866) 300-8594.
Forward-Looking Statements
The statements in this release 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; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's debt. The accuracy of our expectations and predictions is also subject to the following risks and uncertainties: (1) our ability to complete the tender offer; (2) the price and time at which we may make any additional share repurchases following completion of the tender offer and the number of shares acquired in such repurchases; and (3) changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in conditions of the United States or international lending, capital and financing markets. 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 LyondellBasell's Form 10-K for the year ended December 31, 2018, 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.
Investor Contact: David Kinney +1 713-309-7141
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SOURCE LyondellBasell Industries
Article Date
7/8/2019LyondellBasell names Ken Lane executive vice president, Global Olefins & Polyolefins
Source: PR Newswire
HOUSTON and LONDON, July 3, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Kenneth (Ken) Lane will assume the role of executive vice president, Global Olefins & Polyolefins (O&P) effective July 15. Lane will have responsibility for the O&P Americas and O&P Europe Asia International (EAI) segments, reporting to Chief Executive Officer Bob Patel.
"Ken brings a unique perspective and set of skills to the table. He has worked around the globe and gained valuable experience in all facets of our business including manufacturing, marketing, mergers and acquisitions, profit and loss management and strategy," said Patel. "His proven track record in value creation will enable LyondellBasell to further build upon the very solid foundation that is today's O&P business."
Prior to joining LyondellBasell, Lane held a variety of positions with BASF, including president of the Monomers Division and president of BASF Catalysts. Before BASF, Lane also held a number of positions with BP Chemicals. Lane earned a Bachelor of Science in civil engineering from Clemson University and a Master of Science in management from the University of Alabama.
Lane will be based in Houston, Texas.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies."
More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell Industries
Article Date
7/3/2019LyondellBasell Announces Guidance for Second Quarter 2019 Financial Results
Source: PR Newswire
HOUSTON and LONDON, June 26, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced net income, EBITDA and earnings per share guidance for its second quarter financial results. Based on currently available information, LyondellBasell expects that second quarter EBITDA will improve by approximately 10 to 20 percent over results for the first quarter of 2019. Net income is expected to be in the range of $1,035 million to $1,080 million with EBITDA projected between $1,575 million to $1,675 million and diluted earnings between $2.79 and $2.91 per share. In the second quarter, North American integrated ethylene margins have improved due to lower feedstock costs. Additionally, oxyfuels are experiencing typical seasonal improvements while refining margins have remained challenged.
LyondellBasell is providing this guidance on a one-time basis in connection with the tender offer for its ordinary shares that commenced on June 10, 2019 and is scheduled to expire on July 8, 2019. As we have not completed our quarter ending June 30, 2019 or started our related financial close and review procedures, the guidance set forth is preliminary, subject to change, and is based upon information available as of the date of this press release. The guidance does not reflect events or transactions that may occur in the remainder of the quarter. In addition, during the course of preparing our financial statements and their review, we may identify items that would require us to make adjustments which may be material to the amounts described. We will provide final results for the second quarter in our earnings release and earnings call which are scheduled for August 2, 2019. See the end of this release for an explanation of LyondellBasell's use of EBITDA and Table 1 for a reconciliation of EBITDA to net income.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
ADDITIONAL INFORMATION REGARDING THE TENDER OFFER
This press release is for informational purposes only. This press release is not a recommendation to buy or sell ordinary shares or any other securities of LyondellBasell, and it is neither an offer to purchase nor a solicitation of an offer to sell shares or any other securities of LyondellBasell. In connection with the tender offer referenced herein, LyondellBasell has filed a tender offer statement on Schedule TO, including an offer to purchase, a related letter of transmittal and other related materials, with the United States Securities and Exchange Commission (the "SEC"). The tender offer is being made only pursuant to the offer to purchase, the related letter of transmittal and other related materials filed as part of the issuer tender offer statement on Schedule TO, in each case as may be amended or supplemented from time to time. Shareholders should read carefully the offer to purchase, the related letter of transmittal and other related materials because they contain important information, including the various terms of, and conditions to, the tender offer. Shareholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the offer to purchase, the related letter of transmittal and other related materials that LyondellBasell will be filing with the SEC at the SEC's website at www.sec.gov. In addition, free copies of these documents may be obtained by contacting Georgeson LLC, the information agent for the tender offer, toll-free at 1 (866) 300-8594.
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.
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 net income plus interest expense (net), provision for income taxes, and depreciation and 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. Quantitative reconciliation of EBITDA to net income, the most comparable GAAP measure, is provided in Table 1 below.
Table 1 – Reconciliation of Net Income to EBITDA.
Millions of U.S. dollars | Three Months Ended |
Net income | $1,035 to 1,080 |
Provision for income taxes | 150 to 185 |
Depreciation and amortization | 320 to 330 |
Interest expense, net | 70 to 80 |
EBITDA | 1,575 to 1,675 |
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 preliminary, unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
FORWARD-LOOKING STATEMENTS
The statements in this release 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 availability of additional information about the ongoing fiscal quarter; the completion of the ongoing fiscal quarter, quarterly close procedures and preparation and review of the financial statements, 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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2018, 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.
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SOURCE LyondellBasell Industries
Article Date
6/26/20196/18/2019 - LyondellBasell and Neste announce commercial-scale production of bio-based plastic from renewable materials
LyondellBasell and Neste announce commercial-scale production of bio-based plastic from renewable materials
Source: PR Newswire
This collaboration marks the first time bio-based polypropylene and bio-based low-density polyethylene were produced simultaneously at commercial scale
ROTTERDAM, Netherlands, June 18, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, and Neste (NESTE, Nasdaq Helsinki), the world's largest producer of renewable diesel from waste and residues, today jointly announce the first parallel production of bio-based polypropylene and bio-based low-density polyethylene at a commercial scale.
The joint project used Neste's renewable hydrocarbons derived from sustainable bio-based raw materials, such as waste and residue oils. The project successfully produced several thousand tonnes of bio-based plastics which are approved for the production of food packaging and being marketed under Circulen and Circulen Plus, the new family of LyondellBasell circular economy product brands.
"LyondellBasell has an innovative spirit that spans decades, and an achievement like this showcases concrete actions we are taking in support of a circular economy," said Richard Roudeix, LyondellBasell Senior Vice President of Olefins and Polyolefins for Europe, Asia and International. "Through the use of renewable resources, we are contributing to the fight against climate change and helping our customers achieve their environmental targets."
"We are excited to enable the plastics industry to introduce more bio-based material into its offering. It is very satisfying to see Neste's renewable hydrocarbons performing perfectly in a commercial scale production of bio-based polymers, providing a drop-in replacement option to fossil materials," said Neste's President and CEO Peter Vanacker. "This pioneering collaboration with LyondellBasell marks a major milestone in the commercialization of Neste's renewable polymers and chemicals business focusing on developing renewable and circular solutions for forward-looking sustainable brands."
An industry first
This achievement is extraordinary in that it combined Neste's unique renewable feedstock and LyondellBasell's technical capabilities. LyondellBasell's cracker flexibility allowed it to introduce a new renewable feedstock at its Wesseling, Germany site, which was converted directly into bio-based polyethylene and bio-based polypropylene. An independent third party tested the polymer products using carbon tracers and confirmed they contained over 30% renewable content.
LyondellBasell sold some of the renewable products produced in the trial to multiple customers, one of which is Cofresco, a company of the Melitta Group and with brands like Toppits® and Albal®, Europe's leading supplier of branded products in the field of household film. Cofresco plans to use the Circulen Plus bio-based polyethylene to create sustainable food packaging materials.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
About Neste
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2018, Neste's revenue stood at EUR 14.9 billion. In 2019, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com
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SOURCE LyondellBasell
Article Date
6/18/2019LyondellBasell Announces Commencement of Modified Dutch Auction Tender Offer to Purchase Up to 37,000,000 of Its Shares
Source: PR Newswire
HOUSTON and LONDON, June 10, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB) ("LyondellBasell" or the "Company"), one of the largest plastics, chemicals and refining companies in the world, today announced that it commenced a "modified Dutch Auction" tender offer to purchase up to 37,000,000 of its issued and outstanding ordinary shares, par value €0.04 per share (each, a "Share," and collectively, "Shares"), or such lesser number of Shares as are properly tendered and not properly withdrawn, at a price that is the lesser of (i) a price not greater than $88.00 nor less than $77.00 per Share, and (ii) a price that equals 110% of the Daily VWAP on the expiration date of the tender offer (the "Final Price Cap"), to the seller in cash, less any applicable withholding taxes and without interest. If the Final Price Cap is determined to be less than $77.00 per Share, which is the low end of the price range in the tender offer, the Company will not purchase any Shares tendered, unless it decides, in its sole discretion, to amend or extend the offer in accordance with applicable law. The tender offer is made in accordance with the terms and subject to the conditions described in the offer to purchase, the related letter of transmittal and other related materials, as each may be amended or supplemented from time to time. The "Daily VWAP" is the daily per share volume-weighted average price for Shares on the New York Stock Exchange, as defined in more detail in the offer to purchase.
The closing price of the Shares on the New York Stock Exchange on June 7, 2019, the last full trading day before the commencement of the tender offer, was $79.22 per Share. The tender offer is scheduled to expire at one (1) minute after 11:59 P.M., New York City time, on July 8, 2019, unless the offer is extended or terminated. The Company will determine the final Daily VWAP promptly after the close of trading on the New York Stock Exchange on July 8, 2019, unless the offer is extended or terminated, and will announce the final Daily VWAP, and the corresponding Final Price Cap, no later than 4:30 p.m., New York City time, on such date. Throughout the offer, the Daily VWAP will be available at https://www.LYBtenderoffer.com and from Georgeson LLC, the information agent for the tender offer, which may be contacted at the address and telephone number set forth on the back cover page of the offer to purchase.
The Company believes that the repurchase of Shares pursuant to the tender offer is consistent with its long-term goal of allocating capital to maximize value for its shareholders and other stakeholders. The offer also provides a mechanism for completing the Company's authorized share repurchase program more rapidly than would be possible through open market repurchases. The Company believes that the modified Dutch auction tender offer provides its shareholders with the opportunity to tender all or a portion of their Shares, and thereby receive a return of some or all of their investment in the Company, if they so elect.
The tender offer is not contingent upon any minimum number of Shares being tendered. However, the tender offer is subject to a number of other terms and conditions, which are described in detail in the offer to purchase. Specific instructions and a complete explanation of the terms and conditions of the tender offer are contained in the offer to purchase, the related letter of transmittal and other related materials, which will be mailed to shareholders of record promptly after commencement of the tender offer.
None of the Company, the members of its Board of Directors, the dealer managers, the information agent or the depositary makes any recommendation as to whether any shareholder should participate or refrain from participating in the tender offer or as to the purchase price or purchase prices at which shareholders may choose to tender their Shares in the tender offer.
The information agent for the tender offer is Georgeson LLC. The depositary for the tender offer is Computershare Trust Company, N.A. The dealer managers for the tender offer are J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. For all questions relating to the tender offer, please call the information agent, Georgeson LLC, toll-free at 1 (866) 300-8594; banks and brokers may call either dealer manager, J.P. Morgan Securities LLC at 1 (877) 371-5947 or Morgan Stanley & Co. LLC at 1 (855) 483-0952.
About LyondellBasell
LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Additional Information Regarding the Tender Offer
This press release is for informational purposes only. This press release is not a recommendation to buy or sell Shares or any other securities of LyondellBasell, and it is neither an offer to purchase nor a solicitation of an offer to sell Shares or any other securities of LyondellBasell. LyondellBasell will be filing today a tender offer statement on Schedule TO, including an offer to purchase, a related letter of transmittal and other related materials, with the United States Securities and Exchange Commission (the "SEC"). The tender offer will only be made pursuant to the offer to purchase, the related letter of transmittal and other related materials filed as part of the issuer tender offer statement on Schedule TO, in each case as may be amended or supplemented from time to time. Shareholders should read carefully the offer to purchase, the related letter of transmittal and other related materials because they contain important information, including the various terms of, and conditions to, the tender offer. Shareholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the offer to purchase, the related letter of transmittal and other related materials that LyondellBasell will be filing with the SEC at the SEC's website at www.sec.gov. In addition, free copies of these documents may be obtained by contacting Georgeson LLC, the information agent for the tender offer, toll-free at 1 (866) 300-8594.
Forward-Looking Statements
The statements in this release 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; LyondellBasell's 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 LyondellBasell's and LyondellBasell's joint ventures' products, and the related effects of industry production capacities and operating rates; LyondellBasell's ability to achieve expected cost savings and other synergies; LyondellBasell's ability to successfully execute projects and growth strategies; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions and future opportunities for the combined company; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and LyondellBasell's 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 LyondellBasell's ability to comply with debt covenants and service LyondellBasell's debt. The accuracy of our expectations and predictions is also subject to the following risks and uncertainties: (1) our ability to complete the tender offer; (2) the price and time at which we may make any additional Share repurchases following completion of the tender offer and the number of Shares acquired in such repurchases; and (3) changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in conditions of the United States or international lending, capital and financing markets. 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 LyondellBasell's Form 10-K for the year ended December 31, 2018, 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.
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SOURCE LyondellBasell Industries
Article Date
6/10/2019LyondellBasell and Odebrecht S.A. End Discussions Regarding Braskem Acquisition
Source: PR Newswire
HOUSTON and LONDON, June 4, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has ended discussions with Odebrecht S.A. concerning the potential acquisition of Braskem. Odebrecht S.A. is the controlling shareholder of São Paulo-based Braskem.
"The combination of LyondellBasell and Braskem is compelling because of the companies' complementary strengths, product portfolios and operational footprints. However, after careful consideration, we jointly decided not to pursue the transaction. We want to thank the teams at Odebrecht and Braskem for their cooperation during the entire process," said LyondellBasell CEO Bob Patel.
"We remain focused on advancing our disciplined, value-driven growth strategy. In addition, we intend to expedite our share repurchase program, which currently allows for the repurchase of up to 37 million of our outstanding shares. Our strong cash flows, ample liquidity, and healthy balance sheet allow us to deliver a growing, top-quartile dividend, advance organic growth, and maintain optionality for M&A opportunities while executing these significant opportunistic share repurchases," said Patel.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
FORWARD-LOOKING STATEMENTS
The statements in this release 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. The amount and timing of future share repurchases will depend on, and be subject to, market conditions, general economic conditions, applicable legal requirements, and other corporate considerations. The share repurchase program does not obligate LyondellBasell to acquire any particular amount of shares and may be suspended or discontinued at any time. Additional factors that could affect our share repurchases or otherwise cause actual results to differ materially include 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; and the other factors found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2018, 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.
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SOURCE LyondellBasell
Article Date
6/4/20195/31/2019 - LyondellBasell Announces Leadership Changes
LyondellBasell Announces Leadership Changes
Source: PR Newswire
HOUSTON and LONDON, May 31, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced the following senior leadership changes.
Thomas Aebischer, executive vice president and chief financial officer, has announced his intention to retire at the end of 2019. Aebischer joined LyondellBasell in January 2016 and played an instrumental role in building and enhancing the corporate finance function, helping to shape the company's growth strategy and leading the standardization of key business processes.
"Over the past several years, Thomas has helped the company think through our next phase of growth and how we will continue to deliver exceptional value for shareholders," said Bob Patel, LyondellBasell CEO. "I want to thank Thomas and wish him well as he enters the next chapter."
The company will be conducting a search for Aebischer's replacement over the next several months and anticipates naming this individual prior to the end of the year.
In addition, Torkel Rhenman will join LyondellBasell as executive vice president, Intermediates & Derivatives (I&D) effective July 1. Rhenman succeeds James Guilfoyle who was appointed executive vice president, Advanced Polymer Solutions and Global Supply Chain in 2018.
Rhenman is a well-rounded leader with a full range of experience leading global businesses, manufacturing, customer-facing roles and in emerging markets. Most recently, Rhenman was the chief executive officer of the Lhoist Group, a Belgium-based global minerals and mining company with 100 plants serving the steel, pulp and paper, mining, agriculture and construction industries. Prior to his role at Lhoist, Rhenman held a variety of positions in the U.S., U.K., Scandinavia, Switzerland, the Czech Republic, the Netherlands, and Japan with DuPont over a 26-year period. Rhenman holds a Master of Science in chemical engineering from the Royal Institute of Technology in Stockholm, Sweden.
"Torkel brings a global perspective, depth of knowledge and a track record of creating value in the organizations he has led," said Patel. "As we look to the future, I'm confident that he will bring these experiences to the continued execution of our company's growth strategy."
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
5/31/20195/31/2019 - LyondellBasell Announces Increase to Quarterly Dividend and Shareholder Approval of Share Repurchase Program
LyondellBasell Announces Increase to Quarterly Dividend and Shareholder Approval of Share Repurchase Program
Source: PR Newswire
HOUSTON and LONDON, May 31, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that its Board of Directors has declared a quarterly dividend of $1.05 per share, representing a five percent increase over the company's first quarter 2019 dividend. The dividend will be paid June 17, 2019 to shareholders of record June 10, 2019, with an ex-dividend date of June 7, 2019.
"LyondellBasell's commitment to providing a progressively growing dividend for our shareholders is the foundation of our capital deployment strategy," said Bob Patel, CEO of LyondellBasell. "This represents the eleventh increase since we began paying quarterly dividends in 2011."
The company also announced at its Annual General Meeting on May 31, 2019, shareholders approved a share repurchase program authorizing the company to repurchase up to 10 percent of the company's shares over the next 18 months. The repurchases will be executed from time to time through open market or privately negotiated transactions. LyondellBasell had approximately 370 million shares outstanding as of May 29, 2019.
Cautionary Statement
This press release contains forward-looking statements. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. The share repurchase program and dividend policy may be suspended or discontinued at any time. Additional factors that could cause actual results to differ from forward-looking statements include, but are not limited to, availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and potential governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments; the ability to comply with the terms of our credit facilities and other financing arrangements; the ability to implement business strategies; and other factors affecting our business generally as set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2018, 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.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
5/31/2019LyondellBasell to Address Goldman Sachs Industrials & Materials Conference
Source: PR Newswire
HOUSTON and LONDON, May 8, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Thomas Aebischer, executive vice president and chief financial officer, will address investors at the Goldman Sachs Industrials & Materials Conference in New York at 2:20 p.m. EDT on May 15, 2019.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
5/8/2019LyondellBasell Reports First Quarter 2019 Earnings
Source: PR Newswire
HOUSTON and LONDON, April 26, 2019 /PRNewswire/ --
First Quarter 2019 Highlights
Comparisons with the prior quarter and first quarter 2018 are available in the following table:
Table 1 - Earnings Summary
Millions of U.S. dollars (except share data) | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Sales and other operating revenues | $8,778 | $8,876 | $9,767 |
Net income | 817 | 692 | 1,231 |
Diluted earnings per share | 2.19 | 1.79 | 3.11 |
Weighted average diluted share count | 372 | 381 | 395 |
EBITDA (a) | 1,428 | 1,212 | 1,913 |
(a) | See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to net income. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the first quarter 2019 of $0.8 billion, or $2.19 per share. First quarter 2019 EBITDA was $1.4 billion. Integration activities related to the acquisition of A. Schulman are on schedule and estimated to have generated $85 million in forward annual run-rate synergies.
"LyondellBasell began 2019 with strong operational performance, increasing sales volumes in Europe and Asia and delivering promised value from the A. Schulman acquisition. EBITDA for our Olefins and Polyolefins - Europe, Asia, International segment rebounded with a 133 percent improvement over the fourth quarter 2018 and a strong recovery in polyolefins sales volumes. EBITDA for our Advanced Polymer Solutions segment demonstrated the promised quarterly synergies in addition to achieving our expectations for significant improvement in baseline business performance. Our Houston refinery delivered another quarter of highly reliable operations, reducing the effects of a challenging refining market," said Bob Patel, LyondellBasell CEO.
"Market demand improved in the first quarter as the industry recovered from an unusually slow fourth quarter. During the first quarter, sales volumes increased 14 percent for polypropylene globally, 9 percent for propylene oxide and derivatives and 15 percent for polypropylene compounds in Europe. We continued to advance our value-driven growth strategy by actively managing our asset portfolio with the acquisition of a syngas plant in La Porte, Texas and the increase of our ownership of methanol production at the site to 100 percent," Patel said.
OUTLOOK
"In the first few weeks of April we have seen signs of industry improvement. The strength in market sentiment is driving higher margins for our Olefins & Polyolefins - EAI segment. In our Olefins & Polyolefins - Americas segment we are seeing volume improvement as we enter a period of strong seasonal demand. The refining market is also improving with increasing gasoline spreads and wider discounts for heavy sour crude oil. Looking beyond the quarter, we will advance our growth strategy and increase our earnings with a robust pipeline of licensing revenue for 2019 in addition to the third quarter start-up of our world-scale HDPE plant which utilizes our innovative Hyperzone technology," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology. Results for our Advanced Polymer Solutions segment incorporates the businesses acquired from A. Schulman beginning on August 21, 2018. Historical segment results for Olefins and Polyolefins - Americas and Olefins and Polyolefins - Europe, Asia and International prior to the acquisition were recast as a result of the shift of polypropylene compounds, Catalloy and polybutene-1 product lines to Advanced Polymer Solutions.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview
Millions of U.S. dollars | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Operating income | $384 | $507 | $629 |
EBITDA | 516 | 631 | 756 |
Three months ended March 31, 2019 versus three months ended December 31, 2018 - EBITDA decreased $115 million versus the fourth quarter 2018. Compared with the prior period, olefins results decreased $130 million. Ethylene margin declined as the price of ethylene decreased $42 per metric ton. Polyolefins results declined nearly $30 million primarily due to decreases in margin for both polyethylene and polypropylene.
Three months ended March 31, 2019 versus three months ended March 31, 2018 - EBITDA decreased $240 million versus the first quarter 2018. Compared with the prior period, olefins results decreased $110 million. Ethylene margin declined as the price of ethylene decreased $79 per metric ton. Polyolefins results decreased approximately $120 million driven by a spread decline in polyethylene over ethylene of $132 per metric ton and a decrease in volume.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins and Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of U.S. dollars | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Operating income | $186 | $15 | $281 |
EBITDA | 296 | 127 | 419 |
Three months ended March 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $169 million versus the fourth quarter 2018, which included a $36 million gain on the sale of our carbon black subsidiary in France. Compared with the prior period, olefins results increased more than $95 million. Volume and margin increased with the completion of planned maintenance at our cracker in Wesseling, Germany in the fourth quarter partially offset by unplanned maintenance in the first quarter. Combined polyolefins results increased more than $55 million. Polyethylene volume and margin improved with the completion of planned maintenance and polypropylene volume increased with improved market conditions. Joint venture equity income increased by $25 million with the completion of planned maintenance at our joint venture sites.
Three months ended March 31, 2019 versus three months ended March 31, 2018 - EBITDA decreased $123 million versus the first quarter 2018. Compared with the prior period, olefins results decreased $35 million driven by a decline in volume due to unplanned maintenance in the first quarter 2019. Combined polyolefins results decreased approximately $40 million. Polyolefins spreads declined for polyethylene and polypropylene over monomer $68 per metric ton and $83 per metric ton, respectively. Joint venture equity income decreased by $25 million due to reduced margins.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels and Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview
Millions of U.S. dollars | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Operating income | $314 | $308 | $408 |
EBITDA | 390 | 379 | 486 |
Three months ended March 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $11 million versus the fourth quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results increased nearly $30 million. Volumes increased with the completion of planned maintenance at our Bayport, Texas facility. Intermediate Chemicals results decreased approximately $50 million driven by a decline in volume. Margin also decreased primarily in methanol and ethylene glycol offset by an improvement in styrene. Oxyfuels & Related Products results increased more than $15 million primarily due to an improvement in margin.
Three months ended March 31, 2019 versus three months ended March 31, 2018 - EBITDA decreased $96 million versus the first quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $10 million due to reduced margins. Intermediate Chemicals results decreased $40 million. Margin declined primarily in styrene, methanol and acetyls partially offset by an increase in methanol volume. Oxyfuels & Related Products decreased by nearly $30 million due to margin and volume declines as a result of softer gasoline market conditions.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1. A. Schulman was acquired on August 21, 2018, and results from the acquisition are included prospectively.
Table 5 - Advanced Polymer Solutions Financial Overview
Millions of U.S. dollars | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Operating income | $119 | $55 | $114 |
EBITDA | 148 | 86 | 123 |
Three months ended March 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $62 million versus the fourth quarter 2018. Integration costs related to the acquisition of A. Schulman and assigned to the segment were $4 million lower in the first quarter 2019 versus the fourth quarter. Compared with the prior period, Compounding & Solutions results increased more than $40 million. Volume increased with seasonal demand improvement and margin improved after an unusually slow fourth quarter in the automotive market. Advanced Polymers results increased more than $5 million.
Three months ended March 31, 2019 versus three months ended March 31, 2018 - EBITDA increased $25 million versus the first quarter 2018. Integration costs related to the acquisition and assigned to the segment were $16 million during the first quarter 2019. Compared with the prior period, Compounding & Solutions results increased nearly $55 million primarily due to the addition of new product lines from the acquisition. Advanced Polymers results decreased approximately $10 million.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview
Millions of U.S. dollars | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Operating income (loss) | $(59) | $(139) | $15 |
EBITDA | (15) | (84) | 63 |
Three months ended March 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $69 million versus the fourth quarter 2018. The Houston Refinery operated at 259,000 barrels per day, 75,000 barrels per day more than the prior period with the completion of planned maintenance. The Maya 2-1-1 industry benchmark crack spread modestly increased $2.66 per barrel to $13.55 per barrel for the first quarter. The Maya 2-1-1 remained challenged through February due to high prices for heavy sour crude oil and a soft gasoline market before improving significantly during March.
Three months ended March 31, 2019 versus three months ended March 31, 2018 - EBITDA decreased $78 million versus the first quarter 2018. Challenging market conditions led to a decrease in the Maya 2-1-1 spread of $7.17 per barrel to $13.55 per barrel. Crude throughput increased by 7,000 barrels per day driven by improved reliability.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview
Millions of U.S. dollars | Three Months Ended | ||
March 31, | December 31, | March 31, | |
Operating income | $73 | $50 | $46 |
EBITDA | 83 | 61 | 56 |
Three months ended March 31, 2019 versus three months ended December 31, 2018 - EBITDA increased $22 million versus the fourth quarter 2018 primarily due to an increase in licensing revenue.
Three months ended March 31, 2019 versus three months ended March 31, 2018 - EBITDA increased $27 million versus the first quarter 2018 driven by an increase in licensing revenue and catalyst sales volumes.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $599 million during the first quarter 2019. Our cash and liquid investment balance was $1.3 billion at March 31, 2019. We repurchased 5.6 million ordinary shares during the first quarter 2019. There were 370 million common shares outstanding as of March 31, 2019. The company paid dividends of $372 million during the first quarter 2019.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.lyondellbasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call April 26 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 1:30 p.m. EDT April 26 until June 25 at 12:59 a.m. EDT. The replay dial-in numbers are 888-568-0028 (U.S.) and +1 203-369-3451 (international). The passcode for each is 3108.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2018, 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.
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.
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.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | |||||||||||||||||
2018 | 2019 | ||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | |||||||||||
Sales and other operating revenues: | |||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,646 | $ | 2,542 | $ | 2,770 | $ | 2,450 | $ | 10,408 | $ | 2,111 | |||||
Olefins & Polyolefins - EAI | 2,960 | 2,900 | 2,643 | 2,335 | 10,838 | 2,535 | |||||||||||
Intermediates & Derivatives | 2,343 | 2,584 | 2,509 | 2,152 | 9,588 | 1,894 | |||||||||||
Advanced Polymer Solutions | 838 | 833 | 1,039 | 1,314 | 4,024 | 1,339 | |||||||||||
Refining | 2,257 | 2,569 | 2,499 | 1,832 | 9,157 | 1,882 | |||||||||||
Technology | 115 | 182 | 171 | 115 | 583 | 141 | |||||||||||
Other/Eliminations | (1,392) | (1,404) | (1,476) | (1,322) | (5,594) | (1,124) | |||||||||||
Continuing operations | $ | 9,767 | $ | 10,206 | $ | 10,155 | $ | 8,876 | $ | 39,004 | $ | 8,778 | |||||
Operating income (loss): | |||||||||||||||||
Olefins & Polyolefins - Americas | $ | 629 | $ | 543 | $ | 572 | $ | 507 | $ | 2,251 | $ | 384 | |||||
Olefins & Polyolefins - EAI | 281 | 245 | 141 | 15 | 682 | 186 | |||||||||||
Intermediates & Derivatives | 408 | 569 | 431 | 308 | 1,716 | 314 | |||||||||||
Advanced Polymer Solutions | 114 | 112 | 48 | 55 | 329 | 119 | |||||||||||
Refining | 15 | 58 | 38 | (139) | (28) | (59) | |||||||||||
Technology | 46 | 100 | 88 | 50 | 284 | 73 | |||||||||||
Other | 1 | (1) | (1) | (2) | (3) | — | |||||||||||
Continuing operations | $ | 1,494 | $ | 1,626 | $ | 1,317 | $ | 794 | $ | 5,231 | $ | 1,017 | |||||
Depreciation and amortization: | |||||||||||||||||
Olefins & Polyolefins - Americas | $ | 106 | $ | 109 | $ | 111 | $ | 116 | $ | 442 | $ | 115 | |||||
Olefins & Polyolefins - EAI | 56 | 52 | 50 | 50 | 208 | 53 | |||||||||||
Intermediates & Derivatives | 73 | 72 | 71 | 71 | 287 | 72 | |||||||||||
Advanced Polymer Solutions | 8 | 9 | 22 | 30 | 69 | 29 | |||||||||||
Refining | 46 | 46 | 45 | 55 | 192 | 43 | |||||||||||
Technology | 10 | 12 | 10 | 11 | 43 | 10 | |||||||||||
Continuing operations | $ | 299 | $ | 300 | $ | 309 | $ | 333 | $ | 1,241 | $ | 322 | |||||
EBITDA:(a) | |||||||||||||||||
Olefins & Polyolefins - Americas | $ | 756 | $ | 671 | $ | 704 | $ | 631 | $ | 2,762 | $ | 516 | |||||
Olefins & Polyolefins - EAI | 419 | 355 | 262 | 127 | 1,163 | 296 | |||||||||||
Intermediates & Derivatives | 486 | 642 | 504 | 379 | 2,011 | 390 | |||||||||||
Advanced Polymer Solutions | 123 | 121 | 70 | 86 | 400 | 148 | |||||||||||
Refining | 63 | 104 | 84 | (84) | 167 | (15) | |||||||||||
Technology | 56 | 113 | 98 | 61 | 328 | 83 | |||||||||||
Other | 10 | 4 | 10 | 12 | 36 | 10 | |||||||||||
Continuing operations | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | |||||
Capital, turnarounds and IT deferred spending: | |||||||||||||||||
Olefins & Polyolefins - Americas | $ | 242 | $ | 311 | $ | 247 | $ | 279 | $ | 1,079 | $ | 276 | |||||
Olefins & Polyolefins - EAI | 58 | 40 | 58 | 92 | 248 | 64 | |||||||||||
Intermediates & Derivatives | 68 | 80 | 100 | 161 | 409 | 179 | |||||||||||
Advanced Polymer Solutions | 15 | 10 | 16 | 21 | 62 | 16 | |||||||||||
Refining | 36 | 45 | 47 | 122 | 250 | 43 | |||||||||||
Technology | 8 | 9 | 12 | 19 | 48 | 17 | |||||||||||
Other | 2 | 1 | 2 | 4 | 9 | 4 | |||||||||||
Continuing operations | $ | 429 | $ | 496 | $ | 482 | $ | 698 | $ | 2,105 | $ | 599 | |||||
(a) | See Table 9 for the reconciliation of EBITDA to net income. |
Table 9 - Reconciliation of Net Income to EBITDA | |||||||||||||||||
2018 | 2019 | ||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | |||||||||||
Net income (a)(b) | $ | 1,231 | $ | 1,654 | $ | 1,113 | $ | 692 | $ | 4,690 | $ | 817 | |||||
Loss from discontinued operations, net of tax | — | 1 | 2 | 5 | 8 | — | |||||||||||
Income from continuing operations(a)(b) | 1,231 | 1,655 | 1,115 | 697 | 4,698 | 817 | |||||||||||
Provision for (benefit from) income taxes(b) | 303 | (21) | 232 | 99 | 613 | 203 | |||||||||||
Depreciation and amortization | 299 | 300 | 309 | 333 | 1,241 | 322 | |||||||||||
Interest expense, net | 80 | 76 | 76 | 83 | 315 | 86 | |||||||||||
EBITDA(c) | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | $ | 1,428 | |||||
(a) | The third quarter of 2018, fourth quarter of 2018 and first quarter of 2019 include after-tax charges of $42 million, $15 million and $12 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. | |||||||||||||||||||||||
(b) | The second quarter of 2018 includes a $346 million non-cash benefit from the release of unrecognized tax benefits and associated accrued interest. | |||||||||||||||||||||||
(c) | EBITDA for the third quarter of 2018, fourth quarter of 2018 and first quarter of 2019 include pre-tax charges of $53 million, $20 million and $16 million, respectively, for acquisition-related transaction and integration costs associated with our acquisition of A. Schulman. | |||||||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
4/26/2019LyondellBasell's Bayport Complex Propylene Oxide Plant Turns 50
Source: PR Newswire
PASADENA, Texas, April 16, 2019 /PRNewswire/ -- LyondellBasell's Bayport Complex in Pasadena, Texas, today commemorated 50 years of operation at its propylene oxide plant and provided an update on their role in the company's most significant capital project to date, the construction of the largest propylene oxide (PO), tertiary butyl alcohol (TBA) plant in the world.
"Today we are proud to celebrate a half century of operations, and our talented and dedicated colleagues who laid the foundation for our success," said Stephen Goff, LyondellBasell Bayport Complex site manager. "We continue to be propelled by the support of our neighbors, our values, and the generations of employees who came before us."
In addition to the 50th anniversary ceremony, the complex marked the milestone by furthering the company's support of advancing education with a donation of books to La Porte ISD's Bayshore Elementary School through The Astros Foundation Literacy Bus Program and a donation of books and backpacks to Dickinson ISD's Kenneth E. Little Elementary School through the Barbara Bush Houston Literacy Foundation's My Home Library Program. Bayport also announced plans for employees to partner with Trees for Houston to plant 50 trees in the local community in honor of 50 years of operations.
The next chapter
The LyondellBasell PO plant was a first of its kind when it was constructed in 1969 near the Houston Ship Channel, using new tertiary butyl hydro peroxide process technology to produce PO. It was designed to meet increased demand for PO in the 1970s. Bayport was selected as the site for the plant due to its close proximity to feedstock and existing pipelines, which are the same reasons the Bayport Complex will be making history yet again. LyondellBasell is constructing the largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in the world and Bayport is playing a key role in this project.
"The Bayport Complex has a rich history and is pivotal to our company's strategic growth along the Gulf Coast," said LyondellBasell CEO Bob Patel. "In Texas, bigger is often better. For us, this facility marks a new chapter for LyondellBasell and demonstrates our commitment to continued growth and delivering on our commitments."
PO is used in the manufacture of bedding, furniture, carpeting, coatings, building materials and adhesives, while TBA will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.
The PO/TBA plant will have a split facility design to optimize product balances and realize synergies between two LyondellBasell sites. The 140-acre PO/TBA plant is being built at the LyondellBasell Channelview Complex located in Channelview, Texas, while an associated 34-acre ethers unit, which will convert TBA to oxyfuels, is being constructed at the Bayport Complex in Pasadena. The PO/TBA plant is scheduled for startup in 2021 and is estimated to cost $2.4 billion, the company's most significant capital investment to date.
Bayport Complex and PO Plant History
The Bayport Complex PO plant traces its origin to Oxirane Chemical Company, a joint venture between subsidiaries of Atlantic Richfield Company and Halcon International Inc. After ownership changes over the years, the plant became part of LyondellBasell's asset portfolio when Lyondell and Basell merged in 2007.
The complex, which manufactures materials used in paints and coatings, food packaging and home furnishings, generates approximately $530 million in annual economic activity for the local community and is home to 1,150 workers. Two other plants, in addition to the PO plant, are situated at the 880-acre LyondellBasell Bayport Complex. Those plants include a polymers plant, which began operations in 1974 and an ethylene oxide plant, which began operations in 1981.
"For half a century, this plant has played a significant role in the development of Houston's petrochemical industry and its employees have helped shape our local communities," said U.S. Congressman Brian Babin. "I am very honored to help celebrate this significant milestone with LyondellBasell, and I'm grateful for their important contributions to and investments in this area of East Texas."
In 2018, American Fuel and Petrochemical Manufacturers (AFPM) recognized the complex with its Distinguished Safety Award (DSA) for exemplary safety performance. The DSA represents the highest achievement in safety and reflects excellence in occupational safety, process safety and occupational health in the domestic refining and petrochemical manufacturing industries.
For more information about the complex, visit https://www.lyb.com/en/bayport-choate-plant/.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
4/16/2019LyondellBasell to Discuss First-Quarter Results on Friday, April 26, 2019
Source: PR Newswire
HOUSTON and LONDON, April 12, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce first-quarter 2019 financial results before the U.S. market opens on Friday, April 26 followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, April 26, 2019
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 1:30 p.m. EDT April 26 until 12:59 a.m. EDT June 25. The replay dial-in numbers are:
Toll-Free: 1-888-568-0028
Toll: 203-369-3451
Passcode: 3108
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
4/12/20194/3/2019 - A. Schulman, Inc., a LyondellBasell Subsidiary, Announces Convertible Special Stock Dividend
A. Schulman, Inc., a LyondellBasell Subsidiary, Announces Convertible Special Stock Dividend
Source: PR Newswire
HOUSTON and LONDON, April 3, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that its wholly owned subsidiary, A. Schulman, Inc., has declared a quarterly dividend of $15.00 per share for A. Schulman's convertible special stock. The dividend is payable on May 1, 2019 to shareholders of record as of April 15, 2019. This dividend is only payable to shareholders of A. Schulman convertible special stock and is independent of LyondellBasell's quarterly dividend.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
4/3/2019LyondellBasell to Address JP Morgan Aviation, Transportation & Industrials Conference
Source: PR Newswire
HOUSTON and LONDON, Feb. 28, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Bob Patel, chief executive officer, will address investors at the JP Morgan Aviation, Transportation & Industrials Conference in New York at 2:05 p.m. EST on March 6, 2019.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
2/28/20192/22/2019 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Feb. 22, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.00 per share, to be paid March 11, 2019 to shareholders of record March 4, 2019, with an ex-dividend date of March 1, 2019.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
2/22/20192/1/2019 - LyondellBasell Reports 2018 Earnings
LyondellBasell Reports 2018 Earnings
Source: PR Newswire
HOUSTON and LONDON, Feb. 1, 2019 /PRNewswire/ --
Highlights
Comparisons with the prior quarter and fourth quarter 2017 are available in the following table:
Table 1 - Earnings Summary
Millions of U.S. dollars (except share data) | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Sales and other operating revenues | $ | 8,876 | $ | 10,155 | $ | 9,135 | $ | 39,004 | $ | 34,484 |
Net income | 692 | 1,113 | 1,894 | 4,690 | 4,877 | |||||
Diluted earnings per share | 1.79 | 2.85 | 4.79 | 12.01 | 12.23 | |||||
Weighted average diluted share count | 381 | 390 | 395 | 389 | 399 | |||||
EBITDA (a) | 1,212 | 1,732 | 1,726 | 6,867 | 7,134 | |||||
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to net income. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the fourth quarter 2018 of $0.7 billion, or $1.79 per share. Fourth quarter 2018 EBITDA was $1.2 billion. Full year 2018 net income was $4.7 billion, or $12.01 per share, and EBITDA was $6.9 billion. The full year 2018 included a $346 million non-cash tax settlement that increased earnings by $0.88 per share and $73 million of transaction and integration costs that decreased earnings by $0.14 per share. Integration activities related to the acquisition of A. Schulman are on schedule with $47 million in forward annual run-rate synergies as of December 31, 2018.
"During the past year LyondellBasell extended our proven track record of delivering strong earnings for our shareholders. Despite market challenges in the second half of 2018 and both planned and unplanned downtime that impacted fourth quarter earnings by approximately $225 million, we leveraged the diversity of our global business portfolio and the agility of our commercial teams to generate approximately $5.5 billion of cash from operating activities for the year. In 2018 we improved upon our company safety record and established new EBITDA records in our Intermediates & Derivatives and Technology segments through market improvements, targeted contracting strategies and an increased number of polyolefin technology licenses," said Bob Patel, LyondellBasell CEO.
"Our fourth quarter results were impacted by the extraordinary fall in the price of crude oil, unusual operational events and a very difficult refining market. As oil prices fell by 40% during the fourth quarter, our non-U.S. Olefins and Polyolefins business experienced declining demand as customers delayed orders and destocked inventories in expectations of lower pricing. This destocking and associated pricing pressures compounded the effects of typical fourth quarter seasonality. Our Olefins and Polyolefins, Europe, Asia and International segment was also impacted by decreased automotive demand, low water levels on the Rhine River, extended maintenance at our Wesseling, Germany cracker and feedstock supply constraints at our Münchsmünster, Germany cracker during the fourth quarter. High U.S. gasoline inventories and unusually weak discounts for Maya crude oil pressured our fourth quarter refining margins. Nevertheless, we are well positioned to capture the benefits of expected refining market improvements with no planned maintenance at our refinery in 2019 or 2020."
"With the acquisition of A. Schulman in August, we captured an opportunity to expand into new markets, created an additional platform for growth and realized $47 million in forward annual run-rate synergies, with more to come in 2019 and 2020. We managed our business portfolio by launching an innovative recycling joint venture with Suez, strengthening our joint venture footprint in Asia, divesting a carbon black subsidiary in France and working toward the consolidation of assets from Linde at our La Porte, Texas site. In February, we increased our quarterly dividend by 11% and we returned $3.4 billion to shareholders in dividends and share repurchases during 2018," Patel said.
OUTLOOK
"During the first weeks of the year, we have seen normalization of markets with increased polymer demand and modest improvements in the discount for Maya crude oil. LyondellBasell's growth accelerates in 2019 with the planned startup of our Hyperzone polyethylene plant and continued construction on our new PO/TBA plant which is on track for completion in 2021. Global polyethylene capacity additions are expected to moderate during 2019 and 2020, providing support for high industry operating rates and ethylene chain profitability."
"Our strong balance sheet offers optionality for investment in our organic growth pipeline and value-creating inorganic opportunities while our cash flows continue to provide significant shareholder returns," said Patel.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through six operating segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and Polyolefins - Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6) Technology. Results for our Advanced Polymer Solutions segment incorporates the businesses acquired from A. Schulman beginning on August 21, 2018. Historical segment results for Olefins and Polyolefins - Americas and Olefins and Polyolefins - Europe, Asia and International were recast as a result of the shift of polypropylene compounds, Catalloy and polybutene-1 product lines to Advanced Polymer Solutions.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Operating income | $ | 507 | $ | 572 | $ | 652 | $ | 2,251 | $ | 2,382 |
EBITDA | 631 | 704 | 769 | 2,762 | 2,899 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 - EBITDA decreased by $73 million versus the third quarter 2018. Compared with the prior period, olefins results increased by approximately $70 million. Ethylene margin improved primarily due to improved ethylene price and a decline in the price of Gulf Coast ethane. Polyolefin results declined approximately $115 million primarily due to a decrease of approximately 4 cents per pound in the polyethylene spread over ethylene. Joint venture equity income decreased by $10 million.
Three months ended December 31, 2018 versus three months ended December 31, 2017 - EBITDA decreased $138 million versus the fourth quarter 2017. Compared with the prior period, olefins results decreased by approximately $55 million. Margin declined primarily due to a decrease in ethylene price. Polyolefin results decreased by approximately $65 million primarily due to declines in polyethylene margin and volume.
Full year ended December 31, 2018 versus full year ended December 31, 2017 - EBITDA decreased $137 million versus 2017. Full year results were negatively impacted by last-in, first-out (LIFO) inventory charges that were approximately $50 million higher than 2017. Compared with the prior period, olefins results decreased by approximately $445 million. Margin declined primarily due to a decrease in ethylene price of approximately 6 cents per pound. Polyolefin results increased by approximately $360 million driven by spread improvements in polyethylene and polypropylene over monomer of approximately 7 cents per pound and 3 cents per pound, respectively. Joint venture equity income increased by $16 million.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets Olefins & Co-products, polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Operating income | $ | 15 | $ | 141 | $ | 165 | $ | 682 | $ | 1,308 |
EBITDA | 127 | 262 | 289 | 1,163 | 1,927 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 - EBITDA decreased by $135 million versus the third quarter 2018. The fourth quarter benefited $36 million from the sale of our carbon black subsidiary in France. Compared with the prior period, olefins results decreased by approximately $75 million. Volume declined due to planned and unplanned maintenance at our cracker in Wesseling, Germany and as a result of low water levels on the Rhine. Combined polyolefins results decreased approximately $35 million primarily due to decreased margins. Joint venture equity income decreased by $43 million primarily due to planned maintenance.
Three months ended December 31, 2018 versus three months ended December 31, 2017 - EBITDA decreased by $162 million versus the fourth quarter 2017. The fourth quarter 2018 benefited $36 million from the sale of our carbon black subsidiary in France. Compared with the prior period, olefins results decreased approximately $70 million. Volume declined due to planned and unplanned maintenance at our cracker in Wesseling, Germany and as a result of low Rhine River levels. Combined polyolefins results decreased approximately $90 million. Polyolefin margins declined driven by spread decreases in polyethylene and polypropylene over monomer of approximately 3 cents and 4 cents per pound, respectively. Joint venture equity income decreased by $43 million primarily due to planned maintenance.
Full year ended December 31, 2018 versus full year ended December 31, 2017 - EBITDA decreased by $764 million versus 2017, which included a gain of $108 million on the sale of our interest in Geosel. 2018 results included benefits of $36 million from the gain on the sale of our carbon black subsidiary in France and approximately $95 million due to an increase in the euro versus the U.S. dollar exchange rate relative to 2017. Compared with the prior period, olefins results decreased approximately $370 million. Margin declined with increased feedstock costs partially offset by increased ethylene prices. Volume declined approximately 10% primarily due to planned and unplanned maintenance at our Wesseling, Germany cracker and low Rhine River levels in the second half of 2018. Combined polyolefins results decreased approximately $345 million. Polyolefin margins declined driven by spread decreases in polyethylene and polypropylene over monomer of approximately 3 cents per pound and 2 cents per pound, respectively. Joint venture equity income decreased by $46 million primarily due to reduced polyolefin spreads.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets Propylene Oxide & Derivatives, Oxyfuels & Related Products and Intermediate Chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Operating income | $ | 308 | $ | 431 | $ | 334 | $ | 1,716 | $ | 1,202 |
EBITDA | 379 | 504 | 410 | 2,011 | 1,490 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 - EBITDA decreased $125 million versus the third quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $10 million. Volumes declined primarily due to planned maintenance partially offset by improved margins. Intermediate Chemicals results decreased approximately $65 million. Margins declined for most products, primarily acetyls and styrene. Oxyfuels & Related Products results decreased approximately $40 million. Margin declined primarily due to stronger ethanol pricing relative to crude oil and volume declined due to planned maintenance.
Three months ended December 31, 2018 versus three months ended December 31, 2017 - EBITDA decreased $31 million versus the fourth quarter 2017. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $50 million with volumes declining due to 2018 planned maintenance. Intermediate Chemicals results increased approximately $35 million. Margins improved for most products and volume increased for acetyls and styrene. Oxyfuels & Related Products decreased by approximately $30 million with declines in both margins and volumes.
Full year ended December 31, 2018 versus full year ended December 31, 2017 - EBITDA increased $521 million versus 2017, setting an annual record for 2018. Compared with the prior period, Propylene Oxide & Derivatives results increased approximately $65 million with improved margins due to strong demand, tight market conditions and improved contracting strategies. Intermediate Chemicals results increased approximately $345 million driven by margin improvements in all products and improved contracting strategies. Tight industry conditions drove an increase of over 12% in acetyls prices and a styrene margin increase of 3 cents per pound. Oxyfuels & Related Products increased by approximately $100 million. Margins improved with crude oil pricing outpacing butane and volume increased with no planned maintenance in 2018.
Advanced Polymer Solutions (APS) - Our Advanced Polymer Solutions segment produces and markets in two lines of business: Compounding & Solutions and Advanced Polymers. Compounding & Solutions includes polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders. Advanced Polymers consists of Catalloy and polybutene-1. A. Schulman was acquired on August 21, 2018, and results from the new business are included prospectively.
Table 5 - Advanced Polymer Solutions Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Operating income | $ | 55 | $ | 48 | $ | 74 | $ | 329 | $ | 405 |
EBITDA | 86 | 70 | 82 | 400 | 438 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 - EBITDA increased by $16 million versus the third quarter 2018. Transaction and integration costs related to the acquisition of A. Schulman were $29 million lower in the fourth quarter 2018 versus the third quarter. Compared with the prior period, Compounding & Solutions results increased approximately $15 million with a full quarter of contribution from the addition of A. Schulman product lines partially offset by volume and margin declines in polypropylene compounds. Advanced Polymers results decreased approximately $15 million with declines in both margins and volume.
Three months ended December 31, 2018 versus three months ended December 31, 2017 - EBITDA increased by $4 million versus the fourth quarter 2017. Integration costs related to the acquisition were $20 million during the fourth quarter 2018. Compared with the prior period, Compounding & Solutions results increased approximately $25 million. The addition of new product lines from the acquisition were partially offset by volume and margin declines in polypropylene compounds. Advanced Polymers results were relatively unchanged.
Full year ended December 31, 2018 versus full year ended December 31, 2017 - EBITDA decreased by $38 million versus 2017. Transaction and integration costs related to the acquisition and assigned to the segment were $69 million during 2018. Compared with the prior period, Compounding & Solutions results increased approximately $15 million. The addition of new product lines from the acquisition was partially offset by margin and volume declines in polypropylene compounds. Advanced Polymers results increased approximately $15 million primarily due to an increase in volume.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 6 - Refining Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Operating income (loss) | $ | (139) | $ | 38 | $ | 59 | $ | (28) | $ | (22) |
EBITDA | (84) | 84 | 104 | 167 | 157 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 - EBITDA decreased $168 million versus the third quarter 2018. The Maya 2-1-1 industry benchmark crack spread decreased by $10.54 per barrel to $10.89 per barrel. The Houston Refinery operated at 184,000 barrels per day, 48,000 barrels per day less than the prior period with planned maintenance beginning in September.
Three months ended December 31, 2018 versus three months ended December 31, 2017 - EBITDA decreased $188 million versus the fourth quarter 2017. The Maya 2-1-1 industry benchmark crack spread decreased by $9.37 per barrel to $10.89 per barrel. The Houston Refinery operated at 184,000 barrels per day, 61,000 barrels per day less than the prior period with planned maintenance in the fourth quarter 2018.
Full year ended December 31, 2018 versus full year ended December 31, 2017 - EBITDA increased $10 million versus 2017. Margin increased at our Houston Refinery primarily driven by advantaged Canadian crude oil pricing and improved yields. The Maya 2-1-1 industry benchmark crack spread decreased by $0.71 per barrel to $19.85 per barrel. Crude throughput was similar to 2017 with a decline of 5,000 barrels per day to 231,000 barrels per day.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview
Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Operating income | $ | 50 | $ | 88 | $ | 58 | $ | 284 | $ | 183 |
EBITDA | 61 | 98 | 68 | 328 | 223 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 - EBITDA decreased by $37 million versus the record third quarter 2018 results primarily due to a decrease in licensing revenue.
Three months ended December 31, 2018 versus three months ended December 31, 2017 - EBITDA decreased by $7 versus the fourth quarter 2017 primarily due to a decrease in licensing revenue.
Full year ended December 31, 2018 versus full year ended December 31, 2017 - EBITDA increased by $105 million versus 2017. The increase was driven by higher licensing revenue as revenues from several new licenses, primarily in China, were recognized.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $698 million during the fourth quarter 2018 and $2.1 billion for the full year 2018. Our cash and liquid investment balance was $1.8 billion at December 31, 2018. We repurchased 19.2 million ordinary shares during 2018. There were 376 million common shares outstanding as of December 31, 2018. The company paid dividends of $1.6 billion during 2018.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call February 1 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available at www.LyondellBasell.com/earnings.
A replay of the call will be available from 2:30 p.m. EST February 1 until April 2 at 1:59 a.m. EDT. The replay dial-in numbers are 866-444-9039 (U.S.) and +1 203-369-1136 (international). The passcode for each is 6482.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2017, 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.
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.
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.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 9 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.
Table 8 - Reconciliation of Segment Information to Consolidated Financial Information | |||||||||||||||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||||||||||||||
(Millions of U.S. Dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||
Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 2,509 | $ | 2,444 | $ | 2,347 | $ | 2,704 | $ | 10,004 | $ | 2,646 | $ | 2,542 | $ | 2,770 | $ | 2,450 | $ | 10,408 | |||||||||||||||||||||
Olefins & Polyolefins - EAI | 2,510 | 2,486 | 2,640 | 2,582 | 10,218 | 2,960 | 2,900 | 2,643 | 2,335 | 10,838 | |||||||||||||||||||||||||||||||
Intermediates & Derivatives | 2,150 | 2,014 | 2,077 | 2,231 | 8,472 | 2,343 | 2,584 | 2,509 | 2,152 | 9,588 | |||||||||||||||||||||||||||||||
Advanced Polymer Solutions | 712 | 751 | 731 | 728 | 2,922 | 838 | 833 | 1,039 | 1,314 | 4,024 | |||||||||||||||||||||||||||||||
Refining | 1,353 | 1,713 | 1,670 | 2,112 | 6,848 | 2,257 | 2,569 | 2,499 | 1,832 | 9,157 | |||||||||||||||||||||||||||||||
Technology | 120 | 107 | 98 | 125 | 450 | 115 | 182 | 171 | 115 | 583 | |||||||||||||||||||||||||||||||
Other/Eliminations | (924) | (1,112) | (1,047) | (1,347) | (4,430) | (1,392) | (1,404) | (1,476) | (1,322) | (5,594) | |||||||||||||||||||||||||||||||
Continuing Operations | $ | 8,430 | $ | 8,403 | $ | 8,516 | $ | 9,135 | $ | 34,484 | $ | 9,767 | $ | 10,206 | $ | 10,155 | $ | 8,876 | $ | 39,004 | |||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 544 | $ | 713 | $ | 473 | $ | 652 | $ | 2,382 | $ | 629 | $ | 543 | $ | 572 | $ | 507 | $ | 2,251 | |||||||||||||||||||||
Olefins & Polyolefins - EAI | 322 | 454 | 367 | 165 | 1,308 | 281 | 245 | 141 | 15 | 682 | |||||||||||||||||||||||||||||||
Intermediates & Derivatives | 269 | 270 | 329 | 334 | 1,202 | 408 | 569 | 431 | 308 | 1,716 | |||||||||||||||||||||||||||||||
Advanced Polymer Solutions | 94 | 120 | 117 | 74 | 405 | 114 | 112 | 48 | 55 | 329 | |||||||||||||||||||||||||||||||
Refining | (70) | (21) | 10 | 59 | (22) | 15 | 58 | 38 | (139) | (28) | |||||||||||||||||||||||||||||||
Technology | 50 | 39 | 36 | 58 | 183 | 46 | 100 | 88 | 50 | 284 | |||||||||||||||||||||||||||||||
Other | 1 | 2 | — | (1) | 2 | 1 | (1) | (1) | (2) | (3) | |||||||||||||||||||||||||||||||
Continuing Operations | $ | 1,210 | $ | 1,577 | $ | 1,332 | $ | 1,341 | $ | 5,460 | $ | 1,494 | $ | 1,626 | $ | 1,317 | $ | 794 | $ | 5,231 | |||||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 116 | $ | 106 | $ | 104 | $ | 107 | $ | 433 | $ | 106 | $ | 109 | $ | 111 | $ | 116 | $ | 442 | |||||||||||||||||||||
Olefins & Polyolefins - EAI | 51 | 51 | 54 | 54 | 210 | 56 | 52 | 50 | 50 | 208 | |||||||||||||||||||||||||||||||
Intermediates & Derivatives | 69 | 68 | 69 | 73 | 279 | 73 | 72 | 71 | 71 | 287 | |||||||||||||||||||||||||||||||
Advanced Polymer Solutions | 10 | 8 | 7 | 10 | 35 | 8 | 9 | 22 | 30 | 69 | |||||||||||||||||||||||||||||||
Refining | 40 | 44 | 49 | 44 | 177 | 46 | 46 | 45 | 55 | 192 | |||||||||||||||||||||||||||||||
Technology | 10 | 9 | 11 | 10 | 40 | 10 | 12 | 10 | 11 | 43 | |||||||||||||||||||||||||||||||
Continuing Operations | $ | 296 | $ | 286 | $ | 294 | $ | 298 | $ | 1,174 | $ | 299 | $ | 300 | $ | 309 | $ | 333 | $ | 1,241 | |||||||||||||||||||||
EBITDA:(a) | |||||||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 706 | $ | 833 | $ | 591 | $ | 769 | $ | 2,899 | $ | 756 | $ | 671 | $ | 704 | $ | 631 | $ | 2,762 | |||||||||||||||||||||
Olefins & Polyolefins - EAI | 442 | 597 | 599 | 289 | 1,927 | 419 | 355 | 262 | 127 | 1,163 | |||||||||||||||||||||||||||||||
Intermediates & Derivatives | 339 | 339 | 402 | 410 | 1,490 | 486 | 642 | 504 | 379 | 2,011 | |||||||||||||||||||||||||||||||
Advanced Polymer Solutions | 104 | 128 | 124 | 82 | 438 | 123 | 121 | 70 | 86 | 400 | |||||||||||||||||||||||||||||||
Refining | (30) | 25 | 58 | 104 | 157 | 63 | 104 | 84 | (84) | 167 | |||||||||||||||||||||||||||||||
Technology | 60 | 48 | 47 | 68 | 223 | 56 | 113 | 98 | 61 | 328 | |||||||||||||||||||||||||||||||
Other | (4) | — | — | 4 | — | 10 | 4 | 10 | 12 | 36 | |||||||||||||||||||||||||||||||
Continuing Operations | $ | 1,617 | $ | 1,970 | $ | 1,821 | $ | 1,726 | $ | 7,134 | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | |||||||||||||||||||||
Capital, turnarounds and IT deferred spending: | |||||||||||||||||||||||||||||||||||||||||
Olefins & Polyolefins - Americas | $ | 201 | $ | 178 | $ | 161 | $ | 201 | $ | 741 | $ | 242 | $ | 311 | $ | 247 | $ | 279 | $ | 1,079 | |||||||||||||||||||||
Olefins & Polyolefins - EAI | 37 | 24 | 34 | 68 | 163 | 58 | 40 | 58 | 92 | 248 | |||||||||||||||||||||||||||||||
Intermediates & Derivatives | 77 | 107 | 79 | 69 | 332 | 68 | 80 | 100 | 161 | 409 | |||||||||||||||||||||||||||||||
Advanced Polymer Solutions | 11 | 9 | 14 | 21 | 55 | 15 | 10 | 16 | 21 | 62 | |||||||||||||||||||||||||||||||
Refining | 84 | 79 | 21 | 29 | 213 | 36 | 45 | 47 | 122 | 250 | |||||||||||||||||||||||||||||||
Technology | 7 | 6 | 8 | 11 | 32 | 8 | 9 | 12 | 19 | 48 | |||||||||||||||||||||||||||||||
Other | 4 | 4 | 1 | 2 | 11 | 2 | 1 | 2 | 4 | 9 | |||||||||||||||||||||||||||||||
Continuing Operations | $ | 421 | $ | 407 | $ | 318 | $ | 401 | $ | 1,547 | $ | 429 | $ | 496 | $ | 482 | $ | 698 | $ | 2,105 | |||||||||||||||||||||
(a) See Table 9 for the reconciliation of EBITDA to net income. |
Table 9 - Reconciliation of Net Income to EBITDA | |||||||||||||||||||||||||||||||||||||||
2017 | 2018 | ||||||||||||||||||||||||||||||||||||||
(Millions of U.S. dollars) | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||
Net income (a)(b) | $ | 797 | $ | 1,130 | $ | 1,056 | $ | 1,894 | $ | 4,877 | $ | 1,231 | 1,654 | $ | 1,113 | $ | 692 | $ | 4,690 | ||||||||||||||||||||
Loss from discontinued operations, net of tax | 8 | 4 | 2 | 4 | 18 | — | 1 | 2 | 5 | 8 | |||||||||||||||||||||||||||||
Income from continuing operations(a)(b) | 805 | 1,134 | 1,058 | 1,898 | 4,895 | 1,231 | 1,655 | 1,115 | 697 | 4,698 | |||||||||||||||||||||||||||||
Provision for (benefit from) income taxes(b) | 315 | 459 | 380 | (556) | 598 | 303 | (21) | 232 | 99 | 613 | |||||||||||||||||||||||||||||
Depreciation and amortization | 296 | 286 | 294 | 298 | 1,174 | 299 | 300 | 309 | 333 | 1,241 | |||||||||||||||||||||||||||||
Interest expense, net(c) | 201 | 91 | 89 | 86 | 467 | 80 | 76 | 76 | 83 | 315 | |||||||||||||||||||||||||||||
EBITDA(d) | $ | 1,617 | $ | 1,970 | $ | 1,821 | $ | 1,726 | $ | 7,134 | $ | 1,913 | $ | 2,010 | $ | 1,732 | $ | 1,212 | $ | 6,867 | |||||||||||||||||||
(a) The first quarter of 2017 includes after-tax charges totaling $106 million related to the redemption of $1,000 million aggregate principal amount of our then outstanding 5% senior notes due 2019. The third quarter of 2017 includes an after-tax gain of $103 million on the sale of our interest in Geosel. The third and fourth quarters of 2018 include after-tax charges for transaction and integration costs associated with the acquisition of A. Schulman of $42 million and $15 million, respectively. | |||||||||||||||||||||||||||||||||||||||
(b) The fourth quarter of 2017 includes an $819 million non-cash tax benefit related to the lower federal income tax rate resulting from the U.S. Tax Cuts and Jobs Act enacted in December 2017. The second quarter of 2018 includes a $346 million non-cash benefit from the release of unrecognized tax benefits and associated accrued interest. | |||||||||||||||||||||||||||||||||||||||
(c) Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the redemption of $1,000 million aggregate principal amount of our then outstanding 5% Senior Notes due 2019. | |||||||||||||||||||||||||||||||||||||||
(d) Third quarter 2017 EBITDA includes a pre-tax gain of $108 million on the sale of our interest in Geosel. The third and fourth quarters of 2018 includes pre-tax charges for transaction and integration costs associated with the acquisition of A. Schulman of $53 million and $20 million, respectively. | |||||||||||||||||||||||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
2/1/2019LyondellBasell named to Fortune Magazine's "World's Most Admired Companies" list for the second consecutive year
Source: PR Newswire
HOUSTON, Jan. 22, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has been named to Fortune Magazine's 2019 list of the "World's Most Admired Companies." This marks the second year that LyondellBasell has made the list.
"This honor is a direct result of our employees' commitment to operating with excellence and their relentless focus on capturing opportunity and delivering value for our stakeholders," said Bob Patel, CEO of LyondellBasell. "As we begin 2019, we remain committed to providing high quality products and services to our customers, while advancing important initiatives like the newly formed Alliance to End Plastic Waste and the commissioning of the world's first Hyperzone PE plant."
According to Korn Ferry, who administers the survey for Fortune Magazine, the "World's Most Admired Companies" study surveys top executives and directors from eligible companies, along with financial analysts, to identify the organizations that enjoy the strongest reputations within their own industries and across industries. Survey respondents are asked to evaluate companies in the categories of:
In 2018, LyondellBasell:
More information on Fortune's "World's Most Admired Companies" list can be found here.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2019, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com
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SOURCE LyondellBasell
Article Date
1/22/2019LyondellBasell to Discuss Fourth-Quarter Results on Friday, February 1, 2019
Source: PR Newswire
HOUSTON and LONDON, Jan. 18, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce fourth-quarter 2018 financial results before the U.S. market opens on Friday, February 1 followed by a webcast and teleconference to discuss results at 11:00 a.m. EST.
Teleconference and Webcast Details
Friday, February 1, 2019
11:00 a.m. EST
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 1:30 p.m. EST February 1 until 11:59 p.m. EDT April 2. The replay dial-in numbers are:
Toll-Free: 1-866-444-9039
Toll: 203-369-1136
Passcode: 6482
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
1/18/2019LyondellBasell takes leadership role in global effort to end plastic waste
Source: PR Newswire
LyondellBasell CEO Bob Patel, Proctor & Gamble CEO David Taylor and Veolia CEO Antoine Frérot to lead global alliance
LONDON, Jan. 16, 2019 /PRNewswire/ -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world today announced CEO Bob Patel has joined with Proctor & Gamble CEO David Taylor and Veolia CEO Antoine Frérot in leading the newly announced global Alliance to End Plastic Waste (AEPW).
The AEPW is the first-ever international coalition of chemical and plastics manufacturers, converters, consumer goods companies, retailers and waste management companies dedicated to partnering with the finance community, government, and environmental and economic development NGOs to find market-based solutions to ending plastic waste in the environment. LyondellBasell is a founding member of AEPW.
"From helping to reduce food waste and improving healthcare products to cutting fuel consumption and emissions from lightweight vehicles, there is no doubt that plastics have played a positive role in improving quality of life for billions of people around the world," said LyondellBasell CEO Bob Patel. "But like so many other products, responsibly managing their disposal or reuse has become a concern – not just for governments or NGOs, but for all of us."
The nearly 30 companies and organizations that comprise the AEPW have a goal to commit $1.5 billion over the next five years to develop and bring to scale solutions that will minimize and manage plastic waste and promote post-use solutions.
"This approach is unique because it brings together and focuses the efforts and knowledge of plastics producers, consumer goods companies and retailers, as well as waste management companies," Patel said. "Having the resources and knowledge of the entire global value chain under one umbrella with the same goal is really very powerful."
AEPW focus areas
The AEPW's efforts will focus on four key pillars:
LyondellBasell's efforts:
With the growth of the circular economy, LyondellBasell has increased its focus on issues related to eliminating plastic waste. In 2018, LyondellBasell announced two key projects in this area, namely:
For more information, please visit www.endplasticwaste.org.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com
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SOURCE LyondellBasell
Article Date
1/16/20191/4/2019 - A. Schulman, Inc., a LyondellBasell Subsidiary, Announces Convertible Special Stock Dividend
A. Schulman, Inc., a LyondellBasell Subsidiary, Announces Convertible Special Stock Dividend
Source: PR Newswire
HOUSTON and LONDON, Jan. 4, 2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that its wholly owned subsidiary, A. Schulman, Inc., has declared a quarterly dividend of $15.00 per share for A. Schulman's convertible special stock. The dividend is payable on February 1, 2019 to shareholders of record as of January 15, 2019.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
1/4/2019LyondellBasell Announces Quarterly Dividend and Board Appointment
Source: PR Newswire
HOUSTON and LONDON, Nov. 30, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.00 per share, to be paid December 17, 2018 to shareholders of record December 10, 2018, with an ex-dividend date of December 7, 2018.
The company also announced that effective today, Michael Hanley has joined LyondellBasell's board of directors, filling the vacancy caused by the previously announced resignation of director Robert G. Gwin. Hanley has more than 25 years of experience in senior management and finance roles, including as Chief Financial Officer of Alcan and as Senior Vice President, Operations and Strategy at the National Bank of Canada. He also serves on the boards of publicly-traded companies BRP, Inc., Industrial Alliance Insurance & Financial Services and Shawcor Ltd.
"As we look to build a future on LyondellBasell's already solid foundation, Michael's perspective and experience will be valuable for our board and company," said Jacques Aigrain, chairman of LyondellBasell's board of directors.
"Michael's deep experience in finance, combined with his international perspective, will benefit LyondellBasell as we drive superior value for our shareholders," added LyondellBasell chief executive officer Bob Patel.
Hanley, 53, holds a bachelor's degree in business administration from HEC Montreal and he is a Chartered Professional Accountant. At LyondellBasell, Hanley will join the Audit and Health, Safety, Environmental and Operations committees of the board of directors.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
11/30/2018LyondellBasell to Address Citi Basic Materials Conference
Source: PR Newswire
HOUSTON and LONDON, Nov. 13, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that Chief Financial Officer Thomas Aebischer will address investors at the Citi Basic Materials Conference in New York at 11:00 a.m. EST on November 27, 2018.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
11/13/201810/26/2018 - LyondellBasell CEO Bob Patel appointed president of International Council of Chemical Associations
LyondellBasell CEO Bob Patel appointed president of International Council of Chemical Associations
Source: PR Newswire
HOUSTON, and LONDON, Oct. 26, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, announced today that its CEO Bob Patel has been appointed president of the International Council of Chemical Associations (ICCA), the global voice of the chemical industry. Patel will lead the board of the organization for a two-year term beginning on January 1, 2019.
"It's a tremendous honor to help lead our industry as we work towards creating a more sustainable future," Patel said. "Around the world and across our value chains, our member companies are working together to advocate for ambitious and attainable sustainability goals and encourage the next generation of technological advancements in our industry."
The ICCA's members represent over 90% of worldwide chemical sales, and the organization brings together 62 chemical associations around the world, including the American Chemistry Council (ACC) and the European Chemical Industry Council (Cefic). While maintaining its original focus to promote Responsible Care® product safety and occupational safety best practices throughout the industry, the ICCA is also actively engaged in energy, chemical health policy, and climate and sustainable development issues, promoting the role of the industry in advancing solutions to these global challenges.
The ICCA is recognized as a key stakeholder in various settings, including the United Nations, the Organization for Economic Co-operation and Development and the International Energy Agency.
Patel continues to serve as chairman of the ACC and on the boards of the Greater Houston Partnership and Junior Achievement of Southeast Texas.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
10/26/2018LyondellBasell to Discuss Third-Quarter Results on Tuesday, October 30, 2018
Source: PR Newswire
HOUSTON and LONDON, Oct. 16, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce third-quarter 2018 financial results before the U.S. market opens on Tuesday, October 30 followed by a webcast and teleconference to discuss results at 9:00 a.m. EDT.
Teleconference and Webcast Details
Tuesday, October 30, 2018
9:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 1:30 p.m. EDT October 30 until 11:59 p.m. EST December 21. The replay dial-in numbers are:
Toll-Free: 1-888-566-0478
Toll: 203-369-3051
Passcode: 1346
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polymer compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
10/16/2018Service Projects Around the World Expand LyondellBasell's Community Relations Reach
Source: PR Newswire
HOUSTON, Sept. 11, 2018 /PRNewswire/ -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, for the 19th consecutive year engaged thousands of its employees, along with their family members and friends on Global Care Day. Inspired by the power of many, the company maximized their efforts to improve and revitalize the neighborhoods where they live and work. Each Global Care Day service project assists an organization that supports one of our philanthropic focus areas: education, environment, health and first responders.
"A strong commitment to our communities drives our philanthropy strategy to address challenges at a local level," said Bob Patel, CEO of LyondellBasell. "This signature event is one that we look forward to every year, and colleagues take the determination and enthusiasm that they show in their work and apply it in a way that benefits local organizations."
Some examples of projects include:
"Our colleagues at LyondellBasell work to create solutions to modern-day challenges and at the same time are guided by a desire to do good work in their communities," said Thomas Aebischer, executive vice president, chief financial officer and executive sponsor of this year's Global Care Day. "Each partner organization supports a cause that we are passionate about and during the project there is a palpable sense of being part of something greater than yourself."
About Global Care Day
Global Care Day began in 2000 as a volunteer-driven effort to encourage worldwide volunteerism in the communities where LyondellBasell operates. For this year's event, more than 3,700 employees and their families are lending their time and talents to make a difference by participating in projects that exemplify the Company's Elements of Engagement community-based philanthropic focus areas: education, environment, health and first responders. On a cumulative basis, LyondellBasell mobilized approximately 30,000 volunteers who donated nearly 194,000 hours in support of their communities since the inception of Global Care Day.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
9/11/2018LyondellBasell and Covestro kick-off Circular Steam Project in Maasvlakte
Source: PR Newswire
ROTTERDAM, Netherlands, Sept. 4, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB) one of the world's largest plastics, chemical and refining companies and its joint venture partner Covestro, one of the world's largest polymer companies, kicked-off a large investment project today at their site in Maasvlakte-Rotterdam, the Netherlands. The Circular Steam Project incorporates an innovative technology into the existing production plant to convert its water-based waste into energy. The new installation will take the site's existing production process to a higher level of efficiency and sustainability, resulting in an overall annual reduction of ca. 140,000 metric tons CO2 emissions, 0.9 Petajoule of energy and avoiding the release of 11 million kilograms of salt residue into the surface water.
The project is an important contribution to the Dutch government's CO2 reduction targets. Jean Gadbois, Senior Vice President Manufacturing Europe, Asia and International of LyondellBasell: "The Dutch government's support is pivotal to the viability of innovative projects like this Circular Steam Project, which will allow us to realize an annual CO2 reduction equal to taking 31,000 cars off the road and will contribute to yearly energy savings equaling the electricity use of the city of Breda's 90,000 households. This is a great step in advancing towards a more sustainable production."
Dr. Klaus Schaefer, Chief Technology Officer of Covestro, added: "Our joint site in Maasvlakte is an important element of Covestro´s production network. We are constantly aiming to reduce our specific emissions. Through this investment we will significantly enhance the efficiency of the existing operations."
LyondellBasell and Covestro will build a new bio plant and incinerator on the Maasvlakte site, in which the production's waste will be treated and transformed into steam. The steam will be used as an energy source in the existing on-site production plant, thus making it a circular process. The construction will employ about 71 people full-time; the new facilities will eventually provide permanent positions for 11 full-time employees. The official start of the project was marked by a ceremony in which LyondellBasell and Covestro, together with a large group of stakeholders, revealed the construction plan and its key benefits.
Allard Castelein, CEO Port of Rotterdam Authority commented: "This project is an important step towards realizing the Dutch ambition of a 49% reduction in CO2 emissions in 2030. The industry in Rotterdam, being an important emitter, plays an pivotal role in this reduction. The initiative by LyondellBasell and Covestro is an inspiring example how this can be done, even in a very competitive market."
About LyondellBasell:
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
About Covestro:
With 2017 sales of EUR 14.1 billion, Covestro is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,200 people (calculated as full-time equivalents) at the end of 2017. Find more information at: www.covestro.com or follow Covestro on Twitter: www.twitter.com/Covestro.
About the Maasvlakte plant:
The facility began operations in 2003 and produces propylene oxide (PO) and styrene monomer (SM). One of the largest plants of its kind in the world, the Maasvlakte plant is a joint venture between LyondellBasell and Covestro (formerly Bayer), each owning 50 percent of the plant. LyondellBasell serves as the operator for the plant. The production is based on the unique PO/SM technology of LyondellBasell, and is the only plant in Europe applying this technology. The chemicals produced at the Maasvlakte plant form the building blocks for basic products like clothing, furniture, household products and construction materials.
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SOURCE LyondellBasell Industries
Article Date
9/4/2018LyondellBasell to Address Credit Suisse 31st Annual Basic Materials Conference
Source: PR Newswire
HOUSTON and LONDON, Aug. 30, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Jim Guilfoyle, executive vice president Advanced Polymer Solutions and Global Supply Chain, will address investors at the Credit Suisse 31st Annual Basic Materials Conference in New York at 10:40 a.m. EDT on September 13, 2018.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
8/30/2018LyondellBasell Begins Construction of the World's Largest PO/TBA Plant
Source: PR Newswire
HOUSTON and LONDON, Aug. 22, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today officially broke ground on what will be the largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant ever built.
The Houston area project is estimated to cost $2.4 billion, representing the single-largest capital investment in the company's history. Once in operation, the plant will produce 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (1 million metric tons) of TBA annually. Startup of the plant is planned for 2021.
"Today's groundbreaking is a historic moment for our company," said Bob Patel, CEO of LyondellBasell. "This plant will be the largest of its kind, built to meet the rising global demand for urethanes used by billions of consumers each day and clean-burning oxyfuels that will help improve air quality around the world. The construction of this project will provide jobs for our neighbors, support local businesses and strengthen our communities with increased tax revenues across the greater Houston region. As one of the cornerstones of our global growth strategy, the new plant will strengthen our ties in Houston and generate long-term value for our shareholders."
To optimize product balances and realize synergies between LyondellBasell sites, two facilities will be constructed on existing manufacturing sites. The 140-acre PO/TBA plant will be built at the LyondellBasell Channelview Complex located in Channelview, Texas while an associated 34-acre ethers unit, which will convert TBA to oxyfuels, will be built at the company's Bayport Complex in Pasadena, Texas.
The company chose to build the new plant at these existing locations along the Texas Gulf Coast because of their proximity to low-cost feedstocks and the transportation infrastructure needed to ship products to markets around the globe.
"The groundbreaking on this new project not only brings more job opportunities for Texans, it also adds to the growing diversity of our booming economy," said Texas Gov. Greg Abbott. "It is because of investments from companies like LyondellBasell that the Texas economy continues to be the envy of the nation. I thank LyondellBasell for their investment and wish them continued success."
Based on an analysis by the Greater Houston Partnership, LyondellBasell's PO/TBA project is estimated to generate more than $453 million in tax benefits for the county, school district, community college and other local taxing districts over a 10-year period. The Channelview site is expected to deliver $349 million in tax benefits and the Pasadena site is expected to create $104 million in benefits.
"As the Congressman representing the largest petrochemical and refining complex in North America, I welcome the news about the construction of these new PO/TBA facilities at LyondellBasell's Channelview and Bayport plants. These $2.4 billion facilities are not only an expansion of LyondellBasell, but an investment in the future of our communities along the Texas Gulf Coast," said U.S. Rep. Brian Babin (TX-36). "The several billion pounds of PO and TBA products that will be produced will make the way for more local jobs, economic growth and regional expansion over the coming decade and beyond."
The project will create more than 2,200 construction jobs at the peak of construction and 160 permanent positions.
"We value our relationships with industry and are pleased LyondellBasell has chosen to continue to invest in our region with this project, which will bring tremendous benefit to our local economy and workforce," said Harris County Judge Ed Emmett. "The construction of this world-scale facility in Harris County is a testament to LyondellBasell's commitment to this area and further solidifies our position as a global petrochemical and manufacturing hub."
Built to meet global demand
PO is used to make bedding, furniture, carpeting, coatings, building materials and adhesives, while TBA will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.
Global demand for urethanes is projected to grow by 4 to 5 percent over the next five years due to emerging economies in Asia and India and their increased demand for consumer products. The global TBA market is expected to increase by 3 percent annually between 2018 and 2028, as drivers and governments in Asia Pacific and Latin America seek to improve air quality with cleaner-burning gasoline.
LyondellBasell plans to sell the PO and derivative products to both domestic and global customers, while the oxyfuels will be primarily sold into Latin America and Asia. A portion of the TBA will remain in the domestic market in the form of high purity isobutylene which is used in tires and lubricants. The majority of the products will be exported via the Houston Ship Channel.
Company growth
The PO/TBA project is part of LyondellBasell's $5 billion organic growth program taking place on the U.S. Gulf Coast. LyondellBasell recently completed ethylene expansion projects at the company's La Porte, Channelview and Corpus Christi sites in Texas, finalizing a multi-year plan to increase annual ethylene capacity in the U.S. by 2 billion pounds (900,000 metric tons). Additionally, LyondellBasell is currently constructing a world-scale polyethylene (PE) plant at its La Porte Complex, which utilizes the company's proprietary Hyperzone PE technology and will more than double that site's PE capacity to 2 billion pounds (900,000 metric tons) per year.
For more information on LyondellBasell's PO/TBA plant, visit www.lyb.com/potba.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
8/22/20188/22/2018 - LyondellBasell Announces Quarterly Dividend
LyondellBasell Announces Quarterly Dividend
Source: PR Newswire
HOUSTON and LONDON, Aug. 22, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has declared a dividend of $1.00 per share, to be paid September 12, 2018 to shareholders of record September 5, 2018, with an ex-dividend date of September 4, 2018.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
8/22/2018LyondellBasell Reports Second Quarter 2018 Earnings
Source: PR Newswire
HOUSTON and LONDON, Aug. 3, 2018 /PRNewswire/ --
Second Quarter 2018 Highlights
Comparisons with the prior quarter and second quarter 2017 are available in the following table:
Table 1 - Earnings Summary
|
Three Months Ended |
Six Months Ended | ||||
|
Millions of U.S. dollars (except share data) |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
Sales and other operating revenues |
$10,206 |
$9,767 |
$8,403 |
$19,973 |
$16,833 |
|
Net income |
1,654 |
1,231 |
1,130 |
2,885 |
1,927 |
|
Diluted earnings per share |
4.22 |
3.11 |
2.81 |
7.33 |
4.78 |
|
Weighted average diluted share count |
392 |
395 |
402 |
394 |
403 |
|
EBITDA (a) |
2,010 |
1,913 |
1,970 |
3,923 |
3,587 |
|
(a) See the end of this release for an explanation of the Company's use of EBITDA and Table 7 for reconciliations of EBITDA to net income. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the second quarter 2018 of $1.7 billion, or $4.22 per share. The quarter included a $346 million non-cash benefit from the settlement of prior-year tax positions that increased earnings by $0.88 per share. Second quarter 2018 EBITDA was $2.0 billion.
"LyondellBasell remains focused on delivering shareholder value with outstanding performance from our diverse global business portfolio and the advancement of our growth initiatives during the second quarter. EBITDA increased by 5% relative to the first quarter of 2018 with improvements in 3 of our 5 business segments. Both our Intermediates and Derivatives segment and our Technology segment achieved record quarterly EBITDA. High operating rates enabled us to benefit from strong global demand and margin improvements. In the U.S., a tight market supported strong polyethylene margins despite the addition of new industry capacity. Additionally, our team at the Houston refinery continued to operate with high reliability and captured improved refining margins," said Bob Patel, LyondellBasell CEO.
"During the second quarter we reached significant milestones on our value-driven growth programs. In June, our acquisition of A. Schulman was approved by their shareholders and several regulatory agencies. Additionally, we entered into exclusive discussions with Odebrecht S.A. regarding a potential transaction with Braskem. Our organic growth program continued to advance with our U.S. Gulf Coast capacity additions of polyethylene and propylene oxide proceeding on schedule. We are also expanding our joint venture portfolio with a new plant in South Korea which will add 400 kilotons of polypropylene capacity to serve rapidly-growing markets in Asia utilizing LyondellBasell's industry-leading Spheripol technology," said Patel.
OUTLOOK
"The wave of new polyethylene capacity additions is being absorbed by robust demand in polyethylene markets. In North America, the majority of the plants planned over the period of 2016-2019 have started with approximately 65% of both the ethylene and polyethylene capacity appearing in the market. Over the coming quarters, LyondellBasell is poised to drive earnings growth with strong performance in Intermediates and Derivatives, operational and market improvements in Refining, the acquisition of A. Schulman later this year, the start-up of our Hyperzone HDPE plant in 2019 and increased profitability for our refinery from the impact of new marine fuel regulations in the latter half of next year," 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 and International; 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Olefins & Polyolefins - Americas (O&P-Americas) - Our O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
Table 2 - O&P-Americas Financial Overview
|
Three Months Ended |
Six Months Ended | ||||
|
Millions of U.S. dollars |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
Operating income |
$571 |
$651 |
$738 |
$1,222 |
$1,297 |
|
EBITDA |
700 |
780 |
859 |
1,480 |
1,582 |
Three months ended June 30, 2018 versus three months ended March 31, 2018 - EBITDA decreased $80 million versus the first quarter 2018. Compared with the prior period, olefins results decreased approximately $175 million. Ethylene margin declined by approximately 7 cents per pound partially offset by volume which increased due to improved derivative operating rates. Combined polyolefins results improved approximately $105 million primarily due to an increase of 7 cents per pound in the polyethylene spread over ethylene.
Three months ended June 30, 2018 versus three months ended June 30, 2017 - EBITDA decreased $159 million versus the second quarter 2017. Compared with the prior period, olefins results decreased by approximately $345 million primarily due to a decline of 12 cents per pound in ethylene margin. Polyethylene results increased by approximately $180 million driven by an improvement of 13 cents per pound in the polyethylene spread over ethylene. Joint venture equity income increased by $4 million.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
Table 3 - O&P-EAI Financial Overview
|
Three Months Ended |
Six Months Ended | ||||||
|
Millions of U.S. dollars |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, | ||
|
Operating income |
$329 |
$373 |
$549 |
$702 |
$950 | ||
|
EBITDA |
447 |
518 |
699 |
965 |
1,228 | ||
Three months ended June 30, 2018 versus three months ended March 31, 2018 - EBITDA decreased by $71 million versus the first quarter 2018. Compared with the prior period, olefins results decreased approximately $15 million. Combined polyolefins results decreased approximately $40 million primarily due to declines in polyethylene spread over ethylene and polypropylene volumes. Joint venture equity income decreased by $22 million.
Three months ended June 30, 2018 versus three months ended June 30, 2017 - EBITDA decreased by $252 million versus the second quarter 2017. Compared with the prior period, olefins results decreased approximately $145 million primarily due to a decrease in margin as a result of increased feedstock costs. Combined polyolefins results decreased approximately $80 million primarily due to declines in polyolefin spreads which were partially offset by increased sales volumes. Joint venture equity income decreased by $13 million.
Intermediates & Derivatives (I&D) - Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
Table 4 - I&D Financial Overview
|
Three Months Ended |
Six Months Ended | ||||
|
Millions of U.S. dollars |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
Operating income |
$569 |
$408 |
$270 |
$977 |
$539 |
|
EBITDA |
642 |
486 |
339 |
1,128 |
678 |
Three months ended June 30, 2018 versus three months ended March 31, 2018 - EBITDA increased $156 million versus the first quarter 2018 resulting in a quarterly record. Compared with the prior period, PO and derivatives results were relatively unchanged. Intermediate chemicals results increased approximately $110 million, driven by both volume and margin improvements across all major products. Acetyls sales volumes increased by 53% over the first quarter due to less maintenance downtime. Styrene margin improved by 3 cents per pound due to tight markets driven by high levels of industry downtime. Oxyfuels and related products results increased approximately $45 million due to seasonal improvements in oxyfuels margins and volumes.
Three months ended June 30, 2018 versus three months ended June 30, 2017 - EBITDA increased $303 million versus the second quarter 2017. Compared with the prior period, PO and derivatives results increased by approximately $70 million as margins improved and volumes increased with the absence of planned maintenance which occurred in the second quarter of 2017 at our plant in Botlek, the Netherlands. Intermediate chemicals results increased approximately $155 million driven by a margin improvement in all businesses. Oxyfuels and related products increased by approximately $85 million primarily due to higher margins.
Refining - Our Refining segment produces and markets gasoline and distillates, including diesel fuel, heating oil and jet fuel.
Table 5 - Refining Financial Overview
|
Three Months Ended |
Six Months Ended | ||||
|
Millions of U.S. dollars |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
Operating income (loss) |
$58 |
$15 |
$(21) |
$73 |
$(91) |
|
EBITDA |
104 |
63 |
25 |
167 |
(5) |
Three months ended June 30, 2018 versus three months ended March 31, 2018 - EBITDA increased $41 million versus the first quarter 2018. The Maya 2-1-1 industry benchmark crack spread increased by $5.22 per barrel to $25.94 per barrel primarily due to a strong gasoline crack and Maya crude discounts. The Houston refinery operated at 259,000 barrels per day, 7,000 barrels per day more than the prior period.
Three months ended June 30, 2018 versus three months ended June 30, 2017 - EBITDA increased $79 million versus the second quarter 2017. The Maya 2-1-1 crack spread increased by $6.40 per barrel and crude throughput decreased by 6,000 barrels per day.
Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Table 6 - Technology Financial Overview
|
Three Months Ended |
Six Months Ended | ||||
|
Millions of U.S. dollars |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|
Operating income |
$100 |
$46 |
$39 |
$146 |
$89 |
|
EBITDA |
113 |
56 |
48 |
169 |
108 |
Three months ended June 30, 2018 versus three months ended March 31, 2018 - EBITDA increased by $57 million versus the first quarter 2018 resulting in a quarterly record. The increase was driven by higher licensing income as revenues from several new licenses, primarily in China, were recognized.
Three months ended June 30, 2018 versus three months ended June 30, 2017 - EBITDA increased by $65 million versus the second quarter 2017 primarily due to an increase in licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $496 million during the second quarter 2018. Our cash and liquid investment balance was $3.9 billion at June 30, 2018. We repurchased 3.2 million ordinary shares during the second quarter 2018. There were 390 million common shares outstanding as of June 30, 2018. The company paid dividends of $392 million during the second quarter of 2018.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 7 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call August 3 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The pass code for all numbers is 6934553.
The slides and webcast that accompany the call will be available at http://www.LyondellBasell.com/earnings. A replay of the call will be available from 1:30 p.m. EDT August 3 until September 27 at 12:59 a.m. EDT. The replay dial-in numbers are 866-483-9089 (U.S.) and +1 203-369-1588 (international). The pass code for each is 3564.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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; any proposed business combination, the expected timetable for completing any proposed transactions and the receipt of any required governmental approvals, future financial and operating results, benefits and synergies of any proposed transactions, future opportunities for the combined company; 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, 2017, 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.
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.
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.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 7 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
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 Net Income to EBITDA, and EBITDA by Segment | |||||||||||||||||||||||||||||||
|
2017 |
2018 | ||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Total | |||||||||||||||||||||||
|
Net income (a)(b) |
$ |
797 |
$ |
1,130 |
$ |
1,056 |
$ |
1,894 |
$ |
4,877 |
$ |
1,231 |
$ |
1,654 |
$ |
2,885 |
|||||||||||||||
|
Loss from discontinued operations, net of tax |
8 |
4 |
2 |
4 |
18 |
— |
1 |
1 |
|||||||||||||||||||||||
|
Income from continuing operations(a)(b) |
805 |
1,134 |
1,058 |
1,898 |
4,895 |
1,231 |
1,655 |
2,886 |
|||||||||||||||||||||||
|
Provision for (benefit from) income taxes(b) |
315 |
459 |
380 |
(556) |
598 |
303 |
(21) |
282 |
|||||||||||||||||||||||
|
Depreciation and amortization |
296 |
286 |
294 |
298 |
1,174 |
299 |
300 |
599 |
|||||||||||||||||||||||
|
Interest expense, net(c) |
201 |
91 |
89 |
86 |
467 |
80 |
76 |
156 |
|||||||||||||||||||||||
|
EBITDA(d) |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
1,726 |
$ |
7,134 |
$ |
1,913 |
$ |
2,010 |
$ |
3,923 |
|||||||||||||||
|
EBITDA by Segment: |
|||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
723 |
$ |
859 |
$ |
616 |
$ |
784 |
$ |
2,982 |
$ |
780 |
$ |
700 |
$ |
1,480 |
|||||||||||||||
|
Olefins & Polyolefins - EAI(d) |
529 |
699 |
698 |
356 |
2,282 |
518 |
447 |
965 |
|||||||||||||||||||||||
|
Intermediates & Derivatives |
339 |
339 |
402 |
410 |
1,490 |
486 |
642 |
1,128 |
|||||||||||||||||||||||
|
Refining |
(30) |
25 |
58 |
104 |
157 |
63 |
104 |
167 |
|||||||||||||||||||||||
|
Technology |
60 |
48 |
47 |
68 |
223 |
56 |
113 |
169 |
|||||||||||||||||||||||
|
Other |
(4) |
— |
— |
4 |
— |
10 |
4 |
14 |
|||||||||||||||||||||||
|
Continuing Operations(d) |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
1,726 |
$ |
7,134 |
$ |
1,913 |
$ |
2,010 |
$ |
3,923 |
|||||||||||||||
|
(a) The third quarter of 2017 includes an after-tax gain of $103 million on the sale of our interest in Geosel. | |||||||||||||||||||||||||||||||
|
(b) The fourth quarter of 2017 includes an $819 million non-cash tax benefit related to the lower federal income tax rate resulting from the U.S. Tax Cuts and Jobs Act enacted in December 2017. The second quarter of 2018 includes a $346 million non-cash benefit from the release of unrecognized tax benefits and associated accrued interest. | |||||||||||||||||||||||||||||||
|
(c) Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the redemption of $1,000 million aggregate principal amount of our 5% Senior Notes due 2019. | |||||||||||||||||||||||||||||||
|
(d) Third quarter 2017 EBITDA includes a pre-tax gain of $108 million on the sale of our interest in Geosel. |
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SOURCE LyondellBasell Industries
Article Date
8/3/2018LyondellBasell to Address Jefferies 2018 Global Industrials Conference
Source: PR Newswire
HOUSTON, and LONDON, July 25, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Chief Executive Officer Bob Patel will address investors at the Jefferies 2018 Global Industrials Conference in New York at 1:20 p.m. EDT on August 8, 2018.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
7/25/2018LyondellBasell names James Guilfoyle Executive Vice President, Advanced Polymer Solutions and Global Supply Chain
Source: PR Newswire
HOUSTON and LONDON, July 25, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has named James (Jim) Guilfoyle executive vice president, Advanced Polymer Solutions and Global Supply Chain. In this capacity, Guilfoyle will continue to report to Chief Executive Officer Bob Patel.
"Jim has been a key player in our company's success and has provided outstanding leadership for our Intermediates and Derivatives segment," Patel said. "As our company enters its next phase, with a robust slate of growth opportunities before us, I am confident Jim will provide the same strong leadership as we establish our new Advanced Polymer Solutions platform."
LyondellBasell's Advanced Polymer Solutions reporting segment will be created following the company's completion of the A. Schulman, Inc. acquisition. The new segment will include LyondellBasell's existing polypropylene compounding business, the assets acquired from A. Schulman, as well as the company's existing Polybutene-1 and Catalloy businesses. To date, LyondellBasell's acquisition of A. Schulman has been approved by regulators in the United States, Brazil, Mexico, China, the European Commission, Russia, Serbia and Turkey.
Guilfoyle has spent his career at LyondellBasell and its predecessor companies, starting in 1993 as a chemical engineer in La Porte, Texas before attaining several managerial and technical positions within the company. Most recently, Guilfoyle served as the company's senior vice president for Global Intermediates and Derivatives and Global Supply Chain.
Guilfoyle earned a bachelor's degree in chemical engineering from the University of Cincinnati and a master's degree in the same field from the University of Houston. He holds a Master of Business Administration degree from the University of Houston and attended the executive development program at Northwestern University's Kellogg School of Management. Guilfoyle serves on the board of directors of the Houston Food Bank.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Cautionary Note Regarding Forward-looking Statements
This communication includes forward-looking statements relating to the proposed merger between LyondellBasell and A. Schulman, Inc. ("Schulman"), including statements as to the expected completion and effects of the proposed merger. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. Such estimates and statements include, but are not limited to, statements about the benefits of the merger, including future financial and operating results, the combined company's plans, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of LyondellBasell and Schulman and are subject to significant risks and uncertainties outside of our control. Actual results could differ materially based on factors including, but not limited to, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that the necessary regulatory approvals may not be obtained, failure to realize the benefits expected from the proposed merger, changes to existing businesses included in the new segment, and the effect of the announcement of the proposed merger on the ability of LyondellBasell and Schulman to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally. Discussions of additional risks and uncertainties are contained in LyondellBasell's and Schulman's filings with the Securities and Exchange Commission. LyondellBasell is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
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SOURCE LyondellBasell
Article Date
7/25/2018LyondellBasell Receives EU Antitrust Clearance for Acquisition of A. Schulman
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, June 27, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has received antitrust clearance from the European Commission for its pending acquisition of A. Schulman, Inc. (NASDAQ: SHLM).
The European Commission's clearance for the transaction satisfies one of the conditions for the closing of the pending acquisition, which remains subject to other customary closing conditions, including the receipt of other required regulatory clearances and approvals. Shareholders of A. Schulman voted in favor of the transaction on June 14.
As previously announced on February 15, 2018, LyondellBasell and A. Schulman, a leading global supplier of high-performance plastic compounds, composites and powders, entered into a definitive agreement under which LyondellBasell will acquire A. Schulman for a total consideration of $2.25 billion. The acquisition builds upon LyondellBasell's existing platform to create a premier Advanced Polymer Solutions business with broad geographic reach, leading technologies and a diverse product portfolio.
The pending acquisition has already been cleared by antitrust regulators in the United States, Brazil, China, Serbia, Turkey and Mexico. The transaction is expected to close in the second half of 2018.
More information on the transaction can be found at www.LyondellBasell.com/AdvancedPolymerSolutions.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Cautionary Note Regarding Forward-looking Statements
This communication includes forward-looking statements relating to the proposed merger between LyondellBasell and A. Schulman, Inc. ("Schulman"), including statements as to the expected timing, completion and effects of the proposed merger. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. Such estimates and statements include, but are not limited to, statements about the benefits of the merger, including future financial and operating results, the combined company's plans, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of LyondellBasell and Schulman and are subject to significant risks and uncertainties outside of our control. Actual results could differ materially based on factors including, but not limited to, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that Schulman shareholders may not adopt the merger agreement, the risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated, failure to realize the benefits expected from the proposed merger and the effect of the announcement of the proposed merger on the ability of LyondellBasell and Schulman to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally. Discussions of additional risks and uncertainties are contained in LyondellBasell's and Schulman's filings with the Securities and Exchange Commission. Neither LyondellBasell nor Schulman is under any obligation, and each expressly disclaim any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
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SOURCE LyondellBasell
Article Date
6/27/2018LyondellBasell and Odebrecht S.A. Enter Into Exclusive Discussions Concerning Braskem
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ROTTERDAM, The Netherlands and SAO PAULO, June 15, 2018 /PRNewswire/ -- LyondellBasell, (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, and Odebrecht S.A., the controlling shareholder of Braskem (NYSE: BAK, B3: BRKM5, BRKM3), a leading plastic producer in the Americas, in a joint statement today announced the companies have entered into exclusive discussions regarding a potential transaction between LyondellBasell and Braskem.
The companies jointly stated:
"Both LyondellBasell and Braskem share a strong culture of operational excellence and legacies of value-creating innovation. We believe that the potential combination of LyondellBasell's and Braskem's complementary strengths, product portfolios and operational footprints would create significant value for our shareholders, customers and employees."
"Braskem's board of directors and management have been informed of the existence of these discussions. The discussions are preliminary and no agreements have been reached. Among other things, the parties will need to complete appropriate diligence, negotiate definitive agreements and obtain corporate approvals. There can be no assurance the discussions will result in a transaction or on what terms any transaction may occur. LyondellBasell and Odebrecht S.A. do not intend to make any further comment unless and until the discussions conclude or are required by applicable law."
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Forward-Looking Statements
The statements in this release 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. Factors that could cause results to differ materially from those described in the forward-looking statements include those found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2017, 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.
Media Contacts:
LyondellBasell
Michael Waldron
Vice President, Global Corporate Communication
LyondellBasell
1221 McKinney Street, Suite 300
Houston, Texas 77010 USA
Office: +1-713-309-3312
Michael.Waldron@lyondellbasell.com
www.lyondellbasell.com
Odebrecht S.A.
Shirley Emerick
Communication
Odebrecht
Rua Lemos Monteiro, 120 16o andar
São Paulo - SP - 05.501-050
Office: +55 11 3096-8319
shirleyemerick@odebrecht.com
www.odebrecht.com
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SOURCE LyondellBasell
Article Date
6/15/20186/1/2018 - LyondellBasell Announces Quarterly Dividend and Shareholder Approval of New Share Repurchase Program
LyondellBasell Announces Quarterly Dividend and Shareholder Approval of New Share Repurchase Program
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, and LONDON, June 1, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), today announced that it has declared a dividend of $1.00 per share, to be paid June 18, 2018 to shareholders of record June 11, 2018, with an ex-dividend date of June 8, 2018.
The company also announced that at its Annual General Meeting on June 1, 2018, shareholders approved the amendments to its Articles of Association that implement the transition from a dual board structure to a unitary board of directors. In connection with this transition, each of the director nominees, including Bob Patel, the Chief Executive Officer, was elected to serve on the unitary board. Also, as a part of the board's succession planning process, Jacques Aigrain has been appointed as Non-Executive Vice Chair of the board.
The company also announced that shareholders approved a new share repurchase program authorizing the company to repurchase up to 10 percent of the company's shares over the next 18 months. The repurchases will be executed from time to time through open market or privately negotiated transactions.
"The strong and consistent performance of our global portfolio of businesses has allowed us to return more than $29 billion to our shareholders through dividend payments and share repurchases over the past seven years," said Bob Patel, CEO of LyondellBasell. "We remain confident in our ability to advance shareholder value in changing markets, and strong returns for shareholders will continue to be a fundamental component of our capital deployment strategy."
The amount and timing of future share repurchases and dividends will depend on, and be subject to, market conditions, general economic conditions, applicable legal requirements and other corporate considerations. The share repurchase program and dividend policy may be suspended or discontinued at any time. This share repurchase program does not obligate LyondellBasell to acquire any particular amount of shares. LyondellBasell had approximately 391 million shares outstanding as of May 30, 2018.
Forward looking statements
This press release contains forward-looking statements. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ from forward-looking statements include, but are not limited to, availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and political governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments' the ability to comply with the terms of our credit facilities and other financial agreements; the ability to implement business strategies; and other factors affecting our business generally as set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2017, 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
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
6/1/2018LyondellBasell to Address Deutsche Bank 2018 Global Industrials and Materials Summit
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, May 24, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Jim Guilfoyle, senior vice president of global intermediates & derivatives and global supply chain, will address investors at the Deutsche Bank 2018 Global Industrials and Materials Summit in Chicago at 08:40 a.m. CDT on June 7, 2018.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
5/24/2018LyondellBasell Executive Vice President and Chief Legal Officer Jeffrey A. Kaplan honored with 'Legend in Law' award
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, May 23, 2018 /PRNewswire/ -- Jeffrey A. Kaplan, executive vice president and chief legal officer at LyondellBasell (NYSE:LYB), one of the largest plastics, chemicals and refining companies in the world, has been named a "Legend in Law" winner at the 2018 Burton Awards for Legal Achievement.
The "Legend in Law" awards are given to general counsels who demonstrate a lifetime of achievement, abide by high ethical standards and are respected by the broader legal community.
"Without a doubt, Jeff is one of the best in his field and exemplifies the highest standards for integrity, sound legal counsel and knowledge of the law," said Bob Patel, CEO of LyondellBasell. "Jeff is very deserving of this recognition."
The award was presented in Washington, D.C. in association with the Library of Congress and sponsored by the American Bar Association and industry publication Law360.
Kaplan joined LyondellBasell in December 2009 and has served as the company's executive vice president and chief legal officer since May 2015. In this role, he is also responsible for the company's public affairs function. Previously, he served in a variety of leadership roles at Chevron Phillips Chemical Company and was in private law practice in Houston, Texas. Kaplan earned a Bachelor of Science from Amherst College and a Juris Doctor from the University of Texas School of Law.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
5/23/2018LyondellBasell Receives Chinese Antitrust Clearance for Acquisition of A. Schulman
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, May 22, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that it has received unconditional clearance from the Chinese State Administration of Market Regulation ("SAMR") for its pending acquisition of A. Schulman, Inc. (NASDAQ: SHLM).
SAMR's clearance for the transaction satisfies one of the conditions for the closing of the pending acquisition, which remains subject to other customary closing conditions, including approval by A. Schulman shareholders and the receipt of other required regulatory clearances and approvals.
As previously announced on February 15, 2018, LyondellBasell and A. Schulman, a leading global supplier of high-performance plastic compounds, composites and powders, entered into a definitive agreement under which LyondellBasell will acquire A. Schulman for a total consideration of $2.25 billion. The acquisition builds upon LyondellBasell's existing platform to create a premier Advanced Polymer Solutions business with broad geographic reach, leading technologies and a diverse product portfolio.
The pending acquisition has already been cleared by antitrust regulators in the United States, Brazil, Serbia and Turkey. The transaction is expected to close in the second half of 2018.
More information on the transaction can be found at www.LyondellBasell.com/AdvancedPolymerSolutions.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Cautionary Note Regarding Forward-looking Statements
This communication includes forward-looking statements relating to the proposed merger between LyondellBasell and A. Schulman, Inc. ("Schulman"), including statements as to the expected timing, completion and effects of the proposed merger. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. Such estimates and statements include, but are not limited to, statements about the benefits of the merger, including future financial and operating results, the combined company's plans, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of LyondellBasell and Schulman and are subject to significant risks and uncertainties outside of our control. Actual results could differ materially based on factors including, but not limited to, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that Schulman shareholders may not adopt the merger agreement, the risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated, failure to realize the benefits expected from the proposed merger and the effect of the announcement of the proposed merger on the ability of LyondellBasell and Schulman to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally. Discussions of additional risks and uncertainties are contained in LyondellBasell's and Schulman's filings with the Securities and Exchange Commission. Neither LyondellBasell nor Schulman is under any obligation, and each expressly disclaim any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger between LYB and Schulman. In connection with the proposed transaction, Schulman plans to file a proxy statement with the Securities and Exchange Commission ("SEC"). SHAREHOLDERS OF SCHULMAN ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT SCHULMAN WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE TRANSACTION. Shareholders and investors will be able to obtain free copies of the proxy statement and other relevant materials (when they become available) and other documents filed by Schulman at the SEC's web site at www.sec.gov. Copies of the proxy statement (when they become available) and the filings that will be incorporated by reference therein may also be obtained, without charge, from Schulman's website, aschulman.com, under the heading "Investors" or by contacting Schulman's Investor Relations at 330-668-7346 or jennifer.beeman@aschulman.com.
Participants in the Solicitation
LYB, Schulman, their directors, executive officers and certain employees may be deemed, under SEC rules, to be participants in the solicitation of proxies in respect of the proposed merger. Information regarding LYB's directors and executive officers is available in its proxy statement filed with the SEC on April 11, 2018. Information regarding Schulman's directors and executive officers is available in its proxy statement filed with the SEC on October 27, 2017. Other information regarding persons who may be deemed participants in the proxy solicitation, including their respective interests by security holdings or otherwise, is set forth in the definitive proxy statement that Schulman has filed with the SEC in connection with the special meeting of stockholders to be held on June 14, 2018. These documents can be obtained free of charge from the sources indicated above.
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SOURCE LyondellBasell
Article Date
5/22/2018LyondellBasell Bayport Complex Receives Prestigious Safety Award
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, May 21, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, announces that its Bayport Complex located in Pasadena, Texas, has received the Distinguished Safety Award (DSA) from American Fuel and Petrochemical Manufacturers (AFPM) for exemplary safety performance in 2017. The DSA Award represents the highest achievement in safety and reflects excellence in occupational safety, process safety and occupational health in the domestic refining and petrochemical manufacturing industries.
"Safety is a core value for LyondellBasell and we are very proud of the Bayport Complex for this recognition of safety excellence," said Dale Friedrichs, vice president, Health, Safety and Environment. "It is not about measuring the number, it's about knowing our people go home safe at the end of every shift, every day."
The LyondellBasell Bayport Complex is one of only three manufacturing sites in the country to receive the prestigious honor this year. The announcement was made at the AFPM National Occupational and Process Safety Conference in San Antonio on May 16.
"From the moment you set foot on our site, you will hear our safety message, see it in action and understand our mission," said Stephen Goff, Bayport Complex site manager. "This achievement is the result of our team having great attention to detail and remaining vigilant when it comes to safety."
In addition to the Bayport Complex, four other LyondellBasell sites received top safety awards from AFPM. The Elite Gold Safety Award, which recognizes facilities with safety performance in the top one percentile, was presented to the company's Chocolate Bayou facility in Alvin, Texas, as well as its Clinton, Iowa, facility. Additionally, LyondellBasell's Victoria, Texas, and Edison, New Jersey, plants received the Elite Silver Safety Award, which recognizes facilities with safety performance in the top five percent.
The AFPM Safety Awards Program is part of a comprehensive safety program developed by AFPM's Safety and Health Committee to promote accident prevention in the petroleum refining and petrochemical manufacturing industries.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
5/21/2018LyondellBasell to Address Barclays Americas Select Franchise Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, May 2, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that Richard Roudeix, Senior Vice President of Olefins & Polyolefins Europe, Asia & International, will address investors at the Barclays Americas Select Franchise Conference in London at 09:10 a.m. BST on May 16, 2018.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
5/2/2018LyondellBasell Clinton Complex Celebrates 50 Years of Operation
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
CLINTON, Iowa, May 1, 2018 /PRNewswire/ -- The Clinton Complex of LyondellBasell, one of the world's largest plastics, chemicals and refining companies, celebrated its 50th anniversary commemorating the plant's rich history and the strong economic impact the plant has had on Clinton, IA.
"I am so proud of the men and women who have come through the doors here, who have built careers and raised generations of families in this community," said Bob Patel, chief executive officer of LyondellBasell. "I want to thank all of the staff, past and present, who have made today possible and my gratitude to the city of Clinton, the great state of Iowa and the leaders here today that have supported common sense policies that allow businesses to grow and thrive."
The Clinton Chamber of Commerce kicked off the event with a ribbon cutting ceremony recognizing the investment LyondellBasell recently made into a centralized operations center. The nearly $50 million operations center features a state-of-the-art control room, maintenance shops and testing laboratory with the most cutting-edge equipment in the industry.
"In addition to employing hundreds of Iowans and engaging and investing considerably in their community, LyondellBasell's impact extends beyond Clinton to the entire state of Iowa. For fifty years, they've been a solid contributor to our economy's billion-dollar manufacturing industry, and I'm confident Iowa can depend on them to continue to advance the products and packaging the entire world relies on every day."
Over five decades, the Clinton Complex has invested extensively in the economic growth of the Clinton community with expansions that have more than tripled the original planned production from 380 million pounds to 1200 million pounds per-year with their most recent expansion of 100 MM pounds increase in capacity.
"Today is a day of celebration and reflection but also a day of looking forward into the future," said Jim Hillier, site manager of LyondellBasell's Clinton Complex. "We are rooted and invested socially and financially into the Clinton community with many local residents supporting their families through LyondellBasell."
Marking the official construction date of the Clinton Complex, January 1, 1966, Clinton Mayor Mark Vulich read the official proclamation declaring May 1 as "LyondellBasell Day" in Clinton.
The Clinton Complex generates about $180 million into the local economy annually. In 2017, the site contributed more than $50,000 to support initiatives in the areas of health, safety, education and the environment.
About LyondellBasell's Clinton Complex
With approximately 400 employees and contractors, and covering an area of almost 239 acres, the Clinton Complex is one of the largest chemical plants in Iowa. Using natural gas liquids as a feedstock, the plant manufactures ethylene, the world's most widely-used petrochemical, which is then converted into polyethylene plastic resins. These resins are the building blocks for products such as leak-proof and shatter-proof containers for industrial and household chemicals, packaging that protects food from spoilage and contamination, and children's toys that are safe and durable.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
5/1/2018LyondellBasell Reports First Quarter 2018 Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, April 27, 2018 /PRNewswire/ --
First Quarter 2018 Highlights
Comparisons with the prior quarter and first quarter 2017 are available in the following table:
|
Table 1 - Earnings Summary | ||||
|
Three Months Ended | ||||
|
March 31, |
December 31, |
March 31, | ||
|
Millions of U.S. dollars (except share data) |
2018 |
2017 |
2017 | |
|
Sales and other operating revenues |
$9,767 |
$9,135 |
$8,430 | |
|
Net income |
1,231 |
1,894 |
797 | |
|
Diluted earnings per share (U.S. dollars) |
3.11 |
4.79 |
1.98 | |
|
Weighted average diluted share count (millions) |
395 |
395 |
403 | |
|
EBITDA(a) |
1,913 |
1,726 |
1,617 | |
|
(a) |
See the end of this release for an explanation of the Company's use of EBITDA and Table 7 for reconciliations of EBITDA to net income. |
LyondellBasell Industries (NYSE: LYB) today announced net income for the first quarter 2018 of $1.2 billion, or $3.11 per share. First quarter 2018 EBITDA was $1.9 billion.
"We started 2018 with strong operations, capturing higher margins for several of our products and advancing our organic and inorganic growth programs. EBITDA improved by 11% relative to the fourth quarter and by 18% relative to the first quarter 2017. Global polyolefins demand remained solid. While U.S. ethylene prices weakened, a tight market for polyolefins supported a polyethylene price increase and strong chain margins. Our Intermediates and Derivatives business achieved record quarterly EBITDA for the segment, driven primarily by higher margins, while our reliability initiatives at the Houston refinery resulted in strong operations during the first quarter," said Bob Patel, LyondellBasell CEO.
"In February we announced our agreement to acquire A. Schulman, Inc., a leading global supplier of high-performance plastic compounds and composites. This acquisition builds upon our existing compounding business and will create value for our shareholders and customers while also providing a platform for future growth. In March we launched our recycled polyolefins joint venture, Quality Circular Polymers (QCP), with SUEZ which allows us to contribute to the circular economy in a way that no plastics company has before," said Patel.
OUTLOOK
"We are beginning to see the typical seasonal margin improvements in oxyfuels and refining, and we look forward to the benefits of continued high operating rates in the second quarter. Over the past two months, the U.S. market has experienced an imbalance between ethylene production and consumption, but this is expected to improve as the downstream derivative units attain full operating rates. Robust global demand and recent higher oil prices continue to support strong polyolefin pricing. LyondellBasell's organic growth program continues with our Hyperzone HDPE and PO/TBA projects on track," 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 and International; 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Olefins & Polyolefins - Americas (O&P-Americas) – Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
Table 2 - O&P–Americas Financial Overview | ||||
|
Three Months Ended | ||||
|
March 31, |
December 31, |
March 31, | ||
|
Millions of U.S. dollars |
2018 |
2017 |
2017 | |
|
Operating income |
$651 |
$667 |
$559 | |
|
EBITDA |
780 |
784 |
723 | |
Three months ended March 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased $4 million versus the fourth quarter 2017. Fourth quarter 2017 results included a last-in, first-out (LIFO) inventory charge of $22 million. Compared to the prior period, olefins results decreased approximately $75 million. Ethylene margin declined by approximately 2 cents per pound and volume decreased due to reduced derivative operating rates. Combined polyolefins results improved approximately $35 million primarily due to an increase in the polyethylene spread over ethylene. Joint venture equity income increased by $8 million.
Three months ended March 31, 2018 versus three months ended March 31, 2017 – EBITDA increased $57 million versus the first quarter 2017. First quarter 2017 included a $31 million gain on the sale of property in Lake Charles, Louisiana. Compared to the prior period, olefins results decreased by approximately $70 million primarily due to lower volumes. Combined polyolefins results increased by approximately $155 million driven by polyethylene and polypropylene spread improvements of approximately 11 cents per pound and 5 cents per pound, respectively.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) – Our O&P–EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
|
Table 3 - O&P–EAI Financial Overview | ||||
|
Three Months Ended | ||||
|
March 31, |
December 31, |
March 31, | ||
|
Millions of U.S. dollars |
2018 |
2017 |
2017 | |
|
Operating income |
$373 |
$224 |
$401 | |
|
EBITDA |
518 |
356 |
529 | |
Three months ended March 31, 2018 versus three months ended December 31, 2017 – EBITDA increased by $162 million versus the fourth quarter 2017. Fourth quarter 2017 results included a LIFO inventory charge of $20 million and a pension charge of $20 million. Compared to the prior period, olefins results increased approximately $70 million. Ethylene margin improved by approximately 6 cents per pound and volume increased due to the absence of fourth quarter maintenance at the Wesseling site. Combined polyolefins results increased approximately $50 million primarily due to higher volumes. Joint venture equity income improved by $7 million.
Three months ended March 31, 2018 versus three months ended March 31, 2017 – EBITDA decreased by $11 million versus the first quarter 2017. The first quarter 2018 was favorably impacted by approximately $65 million due to an increase in the euro versus the U.S. dollar exchange rate relative to first quarter 2017. Compared to the prior period, olefins and combined polyolefins results declined by approximately $20 million and $60 million, respectively, primarily due to lower margins. Joint venture equity income improved by $10 million.
Intermediates & Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
Table 4 - I&D Financial Overview | |||
|
Three Months Ended | |||
|
March 31, |
December 31, |
March 31, | |
|
Millions of U.S. dollars |
2018 |
2017 |
2017 |
|
Operating income |
$408 |
$334 |
$269 |
|
EBITDA |
486 |
410 |
339 |
Three months ended March 31, 2018 versus three months ended December 31, 2017 – EBITDA increased $76 million versus the fourth quarter 2017. Fourth quarter 2017 results included a LIFO inventory charge of $17 million. Compared to the prior period, PO and derivatives results were relatively unchanged. In intermediate chemicals, an improvement of approximately $30 million was driven by higher styrene margins partially offset by lower methanol volume. Oxyfuels and related products results improved approximately $20 million primarily due to higher margins.
Three months ended March 31, 2018 versus three months ended March 31, 2017 – EBITDA increased $147 million versus the first quarter 2017. Results for first quarter 2017 included charges of approximately $40 million related to precious metal catalysts. Compared to the prior period, PO and derivatives results improved by approximately $55 million primarily due to higher margins. In intermediate chemicals, an improvement of approximately $15 million was driven by increased margins partially offset by reduced methanol volumes. Oxyfuels and related products improved by approximately $40 million primarily due to higher oxyfuels margins.
Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.
|
Table 5 - Refining Financial Overview | |||
|
Three Months Ended | |||
|
March 31, |
December 31, |
March 31, | |
|
Millions of U.S. dollars |
2018 |
2017 |
2017 |
|
Operating income (loss) |
$15 |
$59 |
($70) |
|
EBITDA |
63 |
104 |
(30) |
Three months ended March 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased $41 million versus the fourth quarter 2017. Fourth quarter 2017 results included a LIFO benefit of $38 million. The Houston refinery operated at 252,000 barrels per day, 7,000 barrels per day more than the prior period.
Three months ended March 31, 2018 versus three months ended March 31, 2017 – EBITDA increased $93 million versus the first quarter 2017. Crude throughput increased by 59,000 barrels per day. Yields and volumes improved with the absence of maintenance downtime that occurred on the fluid catalytic cracker and crude units during the first quarter 2017.
Technology Segment – Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
Table 6 - Technology Financial Overview | ||||
|
Three Months Ended | ||||
|
March 31, |
December 31, |
March 31, | ||
|
Millions of U.S. dollars |
2018 |
2017 |
2017 | |
|
Operating income |
$46 |
$58 |
$50 | |
|
EBITDA |
56 |
68 |
60 | |
Three months ended March 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased by $12 million versus the fourth quarter 2017 primarily due to a decline in catalyst sales and licensing revenue.
Three months ended March 31, 2018 versus three months ended March 31, 2017 – EBITDA decreased by $4 million versus the first quarter 2017.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $429 million during the first quarter 2018. Our cash and liquid investment balance was $3.5 billion at March 31, 2018. We repurchased 1.3 million ordinary shares during the first quarter 2018. There were 393 million common shares outstanding as of March 31, 2018. The company paid dividends of $395 million during the first quarter of 2018.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 7 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call April 27 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The pass code for all numbers is 6934553.
The slides and webcast that accompany the call will be available at http://www.LyondellBasell.com/earnings.
A replay of the call will be available from 1:30 p.m. EDT April 27 until May 27 at 9:59 a.m. EDT. The replay dial-in numbers are 866-403-7099 (U.S.) and +1 203-369-0571 (international). The pass code for each is 65468.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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, 2017, 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.
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.
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.
Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 7 at the end of this release. Additional operating and financial information, including reconciliations of non-GAAP measures, may be found on our website at www.LyondellBasell.com/investorrelations.
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 Net Income to EBITDA, and EBITDA by Segment | ||||||||||||||||||||
|
2017 |
2018 |
|||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
||||||||||||||
|
Net income(a)(b) |
$ |
797 |
$ |
1,130 |
$ |
1,056 |
$ |
1,894 |
$ |
4,877 |
$ |
1,231 |
||||||||
|
Loss from discontinued operations, net of tax |
8 |
4 |
2 |
4 |
18 |
- - |
||||||||||||||
|
Income from continuing operations(a)(b) |
805 |
1,134 |
1,058 |
1,898 |
4,895 |
1,231 |
||||||||||||||
|
Provision for (benefit from) income taxes(b) |
315 |
459 |
380 |
(556) |
598 |
303 |
||||||||||||||
|
Depreciation and amortization |
296 |
286 |
294 |
298 |
1,174 |
299 |
||||||||||||||
|
Interest expense, net(c) |
201 |
91 |
89 |
86 |
467 |
80 |
||||||||||||||
|
EBITDA(d) |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
1,726 |
$ |
7,134 |
$ |
1,913 |
||||||||
|
EBITDA by Segment: |
||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
723 |
$ |
859 |
$ |
616 |
$ |
784 |
$ |
2,982 |
$ |
780 |
||||||||
|
Olefins & Polyolefins – EAI(d) |
529 |
699 |
698 |
356 |
2,282 |
518 |
||||||||||||||
|
Intermediates & Derivatives |
339 |
339 |
402 |
410 |
1,490 |
486 |
||||||||||||||
|
Refining |
(30) |
25 |
58 |
104 |
157 |
63 |
||||||||||||||
|
Technology |
60 |
48 |
47 |
68 |
223 |
56 |
||||||||||||||
|
Other |
(4) |
- - |
- - |
4 |
- - |
10 |
||||||||||||||
|
Continuing Operations(d) |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
1,726 |
$ |
7,134 |
$ |
1,913 |
||||||||
|
(a) The third quarter of 2017 includes an after-tax gain of $103 million on the sale of our interest in Geosel. | ||||||||||||||||||||||
|
(b) The fourth quarter of 2017 includes an $819 million non-cash tax benefit related to the lower federal income tax rate resulting from the U.S. Tax Cuts and Jobs Act enacted in December 2017. | ||||||||||||||||||||||
|
(c) Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the redemption of $1,000 million aggregate principal amount of our outstanding 5% Senior Notes due 2019. | ||||||||||||||||||||||
|
(d) Third quarter 2017 EBITDA includes a pre-tax gain of $108 million on the sale of our interest in Geosel. |
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SOURCE LyondellBasell Industries
Article Date
4/27/2018LyondellBasell to Address Wells Fargo Industrials Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, April 24, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced Chief Executive Officer Bob Patel will address investors at the 2018 Wells Fargo Industrials Conference in New York, NY at 10:35 a.m. EDT on May 8, 2018.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-to-address-wells-fargo-industrials-conference-300634980.html
SOURCE LyondellBasell
Article Date
4/24/2018LyondellBasell to Discuss First-Quarter Results on Friday, April 27, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, April 13, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, will announce first-quarter 2018 financial results before the U.S. market opens on Friday, April 27 followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details
Friday, April 27, 2018
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers
United States: 1-800-475-8402
United Kingdom: 0800-376-8334
Netherlands: 0800-020-1250
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information
A replay of the call will be available from 1:30 p.m. EDT April 27 until 11:59 p.m. EDT May 27. The replay dial-in numbers are:
Toll-Free: 1-866-403-7099
Toll: 203-369-0571
Passcode: 65468
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
4/13/20184/3/2018 - LyondellBasell Among Top Corporate Donors to United Way of Greater Houston for 2017 Campaign
LyondellBasell Among Top Corporate Donors to United Way of Greater Houston for 2017 Campaign
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, April 3, 2018 /PRNewswire/ -- For the 29th consecutive year, LyondellBasell, one of the world's largest plastics, chemical and refining companies, is a top corporate donor to the United Way of Greater Houston with a donation of $1.36 million for its 2017 campaign. As part of the company's commitment to be a responsible, good neighbor in the communities where it operates, LyondellBasell held United Way campaigns at 23 company sites across the United States and raised a total of $2.3 million.
"The work United Way does in our communities is far reaching and makes a lasting impact to those most in need," said Bob Patel, LyondellBasell CEO. "Once again, I am humbled by the generosity of our employees across the U.S. who contributed during the company's annual United Way campaign to help improve lives in their communities. They truly exemplify our company's mission to be a good neighbor through their volunteerism and financial contributions."
According to the United Way of Greater Houston, one in three families in the region live on an annual income of $40,000 or less, 45 percent of senior citizens struggle to meet everyday expenses, and one in five students does not graduate from high school. And the number of families and elderly in need has grown significantly since Hurricane Harvey devastated the Houston area last August.
"United Way of Greater Houston helped nearly 2 million of our neighbors build better lives because of dedicated community and corporate partners like LyondellBasell. We are extremely thankful for their support," said Anna M. Babin, United Way of Greater Houston president and CEO.
"We are facing one of the most challenging chapters in our city's history given the devastation left by Hurricane Harvey and we are grateful to LyondellBasell for continuing their commitment to the United Way while also supporting their employees and thousands of others affected by the storm," said Neil Duffin, 2017-18 United Way Community Campaign Chair and President of ExxonMobil Production Company.
In addition to designating funds to support the overall mission of United Way of Greater Houston, LyondellBasell employees also specified support for these local charities:
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
4/3/2018LyondellBasell names Jacinth Smiley Chief Accounting Officer
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, March 30, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced it has named Jacinth Smiley its chief accounting officer, effective April 2, 2018. Smiley will report to chief financial officer Thomas Aebischer.
Smiley joins LyondellBasell from General Electric Oil & Gas where she served as chief financial officer for the North America region. She worked in various finance and auditing roles for United Technologies Corporation and Arthur Andersen before joining General Electric in 1998, holding various technical and operationally oriented finance roles.
Smiley holds a bachelor's degree in accounting from the University of Connecticut.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
3/30/2018LyondellBasell's Houston Refinery Marks 100th Anniversary
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, March 22, 2018 /PRNewswire/ -- The Houston Refinery of LyondellBasell, one largest plastics, chemicals and refining companies in the world, today celebrated its 100th anniversary.
"I want to thank our refinery team for their dedication and commitment. I'm so proud of the important work they do every day," said Bob Patel, Chief Executive Officer of LyondellBasell. "The products made at our Refinery go far and wide and allow goods to move, people to travel and economies to grow."
"Generations of Refinery employees helped produce the fuels that drove America's growth and supported the local economy over our century-long history," said Jerome Mauvigney, Site Manager of LyondellBasell's Houston Refinery. "I am inspired by all who came before us and the future workforce that will come after us."
"LyondellBasell's Houston Refinery is one of the longest operating refineries in the Greater Houston area and is a testament to the rich history of oil and gas that built our economy," said Pasadena Mayor, Jeff Wagner. "The site's impact over the last century is truly immeasurable. We appreciate strong corporate neighbors like the Refinery and look forward to many years of great work together."
Harris County, Harris County Commissioner Jack Morman's Office and the City of Houston helped commemorate the site's centennial anniversary with a proclamation declaring March 22nd "LyondellBasell Houston Refinery Day."
Additionally, the Refinery will join the Houston Astros Foundation Literacy Bus Program to celebrate its 100th anniversary. Through the program, employee volunteers will help distribute books to 100 classrooms in the Houston, Galena Park and Pasadena independent school districts.
The Refinery generates approximately $671 million in annual economic activity for the local community and is home to 1,600 workers. In 2017, the site contributed more than $200,000 and 4,000 volunteer hours to support local initiatives driving improvements in health, safety, education and the environment.
Refinery History
The Refinery was one of the first petroleum refineries constructed on the Houston Ship Channel. It traces its origin to the Sinclair Refining Company's 1918 purchase of 710 acres of land, which includes the point where General Sam Houston and the Texas Army crossed Buffalo Bayou as they marched to victory at the Battle of San Jacinto.
Covering approximately 710 acres along the city limits of Houston and Pasadena, Texas, the refinery is one of the largest in the U.S., with a capacity of 268,000 bpd of heavy crude oil. The Refinery transforms very heavy high-sulfur crude oil into clean fuels, including reformulated gasoline and ultra-low-sulfur diesel. Other products include heating oil, jet fuel, petrochemical feedstocks, aromatics, lubricants and petroleum coke.
For more information about the Refinery and its centennial anniversary, click here.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
3/22/2018LyondellBasell Receives U.S. Antitrust Clearance for Acquisition of A. Schulman
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, March 21, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced that the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act"), with respect to its pending acquisition of A. Schulman, Inc. (NASDAQ: SHLM).
The termination of the waiting period under the HSR Act satisfies one of the conditions for the closing of the pending acquisition, which remains subject to other customary closing conditions, including approval by A. Schulman shareholders and the receipt of other required regulatory clearances and approvals.
As previously announced on February 15, 2018, LyondellBasell and A. Schulman, a leading global supplier of high-performance plastic compounds, composites and powders, entered into a definitive agreement under which LyondellBasell will acquire A. Schulman for a total consideration of $2.25 billion. The acquisition builds upon LyondellBasell's existing platform to create a premier Advanced Polymer Solutions business with broad geographic reach, leading technologies and a diverse product portfolio.
The transaction is expected to close in the second half of 2018.
More information on the transaction can be found at www.LyondellBasell.com/AdvancedPolymerSolutions.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
Cautionary Note Regarding Forward-looking Statements
This communication includes forward-looking statements relating to the proposed merger between LyondellBasell and A. Schulman, Inc. ("Schulman"), including statements as to the expected timing, completion and effects of the proposed merger. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. Such estimates and statements include, but are not limited to, statements about the benefits of the merger, including future financial and operating results, the combined company's plans, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of LyondellBasell and Schulman and are subject to significant risks and uncertainties outside of our control. Actual results could differ materially based on factors including, but not limited to, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the risk that Schulman shareholders may not adopt the merger agreement, the risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated, failure to realize the benefits expected from the proposed merger and the effect of the announcement of the proposed merger on the ability of LyondellBasell and Schulman to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally. Discussions of additional risks and uncertainties are contained in LyondellBasell's and Schulman's filings with the Securities and Exchange Commission. Neither LyondellBasell nor Schulman is under any obligation, and each expressly disclaim any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger between LyondellBasell and Schulman. In connection with the proposed transaction, Schulman plans to file a proxy statement with the SEC. SHAREHOLDERS OF SCHULMAN ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT SCHULMAN WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE TRANSACTION. Shareholders and investors will be able to obtain free copies of the proxy statement and other relevant materials (when they become available) and other documents filed by Schulman at the SEC's web site at www.sec.gov. Copies of the proxy statement (when they become available) and the filings that will be incorporated by reference therein may also be obtained, without charge, from Schulman's website, aschulman.com, under the heading "Investors" or by contacting Schulman's Investor Relations at 330-668-7346 or jennifer.beeman@aschulman.com.
Participants in the Solicitation
LyondellBasell, Schulman, their directors, executive officers and certain employees may be deemed, under SEC rules, to be participants in the solicitation of proxies in respect of the proposed merger. Information regarding LyondellBasell's directors and executive officers is available in its proxy statement filed with the SEC on April 6, 2017. Information regarding Schulman's directors and executive officers is available in its proxy statement filed with the SEC on October 27, 2017. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC (when they become available). These documents can be obtained free of charge from the sources indicated above.
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SOURCE LyondellBasell
Article Date
3/21/2018LyondellBasell Helps India Food Bank Leaders Fight Hunger
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, March 16, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, through a grant to The Global FoodBanking Network (GFN), made it possible for three members of the Food Security Foundation India (India FoodBanking Network) to participate in the 12th annual H-E-B / GFN Food Bank Leadership Institute held March 12-15, 2018, in Houston, Texas.
Organized annually by The Global FoodBanking Network, the 2018 Food Bank Leadership Institute brought together food bank leaders and hunger champions from 33 countries to discuss key topics such as designing effective supply chain and inventory management, collecting data and measuring impact, advancing nutrition and strengthening food banks' capacity to serve those in need.
LyondellBasell products play an important role in the freshness and safety of food across the globe. The company's plastic resins are used to create protective film, seal-and-peel packaging and other products that enhance food shelf-life and convenience, and improve safety during transport and storage.
"Hunger is one of the greatest challenges our world faces; in addition to supporting food banks in the communities where we operate, LyondellBasell continuously collaborates with our food packaging customers to develop innovative solutions that reduce food waste and improve distribution," said LyondellBasell Associate Director, Polymers Business Development and Projects, Ganesh Nagarajan, who most recently lead PP compounding operations in India. "We are very pleased to support The Global FoodBanking Network in their mission to create sustainable food banks."
According to the India FoodBanking Network, India is home to the largest undernourished population in the world. Over 190 million people go hungry every day and one in four children are malnourished. The organization's CEO Vandana Singh and website manager Himanshu Thakur along with Pankaj Mahajan, a member of the board of directors, traveled to Houston to attend the Food Bank Leadership Institute.
"We are grateful to LyondellBasell for sponsoring the GFN Food Bank Leadership Institute and providing this opportunity for our delegation to learn best-practices so that we can achieve the highest standard of operational excellence as we work to expand our services and meet a critical need in India," said Singh.
LyondellBasell focuses its global philanthropic efforts in the areas of education, health, environment and providing support for first responders. The company actively supports many organizations in the communities where it operates, including the Houston Food Bank, the world's largest food bank, where Jim Guilfoyle, senior vice president of Global Intermediates & Derivatives and Global Supply Chain, serves on the board of directors.
LyondellBasell operates three polypropylene compounding sites in India and has a sales and technology center in Mumbai.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
3/16/2018LyondellBasell and the Astros Foundation Complete Enhancements to Four Youth Softball Fields in La Porte, Texas
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, March 15, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, this past weekend celebrated the completion of enhancements to four youth softball fields during the La Porte Girls Softball Association's Opening Day ceremonies. The enhancements were made at Little Cedar Bayou Park in La Porte, Texas. The project is part of LyondellBasell's participation in the Astros Foundation Community Leaders program which provides enhancements to baseball and softball fields in city-owned public parks in the Houston area.
The nearly 49-acre Little Cedar Bayou Park has four softball fields, two tennis courts, two soccer fields, sand volleyball courts, horseshoe pits, a nature trail, playground equipment and a large picnic area. LyondellBasell's contribution was used to purchase new scoreboards, bleachers and safety fence caps for all four of the softball fields. These ball fields are enjoyed by more than 7,400 children, families and coaches each year. To commemorate the donation, the LyondellBasell logo will appear on the La Porte Girls Softball team uniforms.
"Participation in youth sports develops important skills, such as team work, respect, honesty and fair play, and leadership," said Chris Cain, LyondellBasell's La Porte site manager. "This partnership isn't just about enhancing youth ball fields but also about promoting positive values, an active, healthy lifestyle and giving back to this great community."
Opening Day festivities included a team parade of all 8 teams in the La Porte Girls Softball Association. Exhibition games were played and Mr. Cain threw out the ceremonial first pitch.
"Community investments, such as the enhancements of Little Cedar Bayou, help our organization connect with Houston-area children in a tangible way," said Astros Foundation Executive Director Twila Carter. "The continued support of companies like LyondellBasell makes the Community Leaders program possible."
"We are very pleased with LyondellBasell's efforts to improve the communities where they operate," said La Porte City Manager Corby Alexander. "In addition to helping our economy by bringing more jobs to the area through the construction of the new plant here in La Porte, we appreciate the company is making a long-term investment in our community."
The company's La Porte Complex is one of LyondellBasell's largest manufacturing facilities spanning approximately 550 acres and is the site of a new High-Density Polyethylene (HDPE) plant that will be the first in the world to employ LyondellBasell's proprietary Hyperzone PE technology. Their neighboring Channelview Complex will be the home of the world's largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant.
In addition to improving the softball fields in La Porte, LyondellBasell has committed to advancing a culture of safety on and off the field. Since announcing their partnership with the Astros Foundation in April 2017, the company honored more than 1,000 employee and community emergency response units at the Astros' 2017 First Responders Night. The opening ceremonies of the game featured first responders lining the base paths and unfurling the American flag. The company gave away travel first aid kits to the first 10,000 fans in attendance.
LyondellBasell's global philanthropic efforts are focused in the areas of education, health, environment and providing support for first responders. The company remains an active supporter of many local organizations, including MD Anderson Cancer Center, Barbara Bush Houston Literacy Foundation and Galveston Bay Foundation. The company has also actively supported the Harris County Sheriff's Industrial Unit Deputies and the Houston Police Department.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named one of the "World's Most Admired Companies" by Fortune Magazine. More information about LyondellBasell can be found at www.lyondellbasell.com.
About the Astros Foundation
The Astros Foundation is the official 501(c)(3) team charity of the Houston Astros. The Foundation seeks to harness the passion of baseball fans in the Greater Houston area to support its cornerstone charitable programs, including Community Leaders, the Astros Urban Youth Academy and the Astros RBI (Reviving Baseball in Inner Cities).
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SOURCE LyondellBasell
Article Date
3/15/2018LyondellBasell and SUEZ Begin Jointly Operating Plastics Recycling Venture
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
ROTTERDAM, Netherlands and PARIS, March 14, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, and SUEZ, a global leader in smart, sustainable resource management, today announced the successful completion of a transaction making each company a 50 / 50 partner in Quality Circular Polymers (QCP), a premium plastics recycling company in Sittard-Geleen, the Netherlands.
"Partnering with SUEZ allows us to contribute to the circular economy in a way that no plastics company has before," said LyondellBasell CEO Bob Patel. "For several years, we have seen increased demand for recycled and reused plastics, especially in Europe. With QCP, we have combined our respective expertise with SUEZ to create an innovative system that can be scaled as the circular economy grows."
"The circular economy will increasingly develop into a critical part of the plastic value chain. Moving forward, we will bear in mind the economics of operating our businesses must be balanced with environmental awareness," said SUEZ CEO Jean-Louis Chaussade. "As we move towards becoming value players in the circular economy, we will continue to seek opportunities for future growth."
The joint business will leverage the two partners' strengths. SUEZ will utilize its leading-edge technology solutions to improve the identification, separation and preparation of materials to be used as feedstock at QCP. LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development and deep knowledge of important end markets such as consumer goods, where the company has a strong presence.
The QCP plant located in Sittard-Geleen will transform used plastic material into virgin-replacement quality PE and PP materials. The plant is capable of converting consumer waste into 25,000 tons of polypropylene (PP) and high-density polyethylene (HDPE) with an objective of 35,000 tons later in 2018 and 100,000 tons by 2020. The production capacity of the plant will address a growing need for improving the sustainability profile of high-quality plastics in Europe.
LyondellBasell will add QCP's recycled products to its range of existing PE and PP materials to help meet increasing customer demand and in line with the EU's Plastics Strategy.
Plastics recycling is also a key market for SUEZ, which operates nine dedicated facilities in Europe. In 2017, SUEZ processed 400,000 tons of plastic waste and produced 150,000 tons of new plastic resources. The company has set an objective of increasing its processing capacity by 50 percent to 600,000 tons in 2020.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
About SUEZ
With 90,000 people on the five continents, SUEZ is a world leader in smart and sustainable resource management. We provide water and waste management solutions that enable cities and industries optimize their resource management and strengthen their environmental and economic performances, in line with regulatory standards. To meet increasing demands to overcome resource quality and scarcity challenges, SUEZ is fully engaged in the resource revolution. With the full potential of digital technologies and innovative solutions, the Group recovers 17 million tons of waste a year, produces 3.9 million tons of secondary raw materials and 7 TWh of local renewable energy. It also secures water resources, delivering wastewater treatment services to 58 million people and reusing 882 million cubic meters of wastewater. SUEZ generated total revenues of 15.9 billion euros in 2017.
Cautionary Note Regarding Forward-looking Statements
The statements in this communication 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, 2017, 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.
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SOURCE LyondellBasell
Article Date
3/14/20183/13/2018 - LyondellBasell Supports Elementary School in Region Recovering from Hurricane Devastation
LyondellBasell Supports Elementary School in Region Recovering from Hurricane Devastation
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, March 13, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, donated a total of $60,000 to the Barbara Bush Houston Literacy Foundation's My Home Library program and Communities in Schools – Bay Area to support children attending K.E. Little Elementary School in Dickinson, Texas, one of the communities hardest hit by Hurricane Harvey, a massive storm that severely damaged portions of the Texas Gulf Coast last August. Many children in Dickinson and the surrounding area lost their homes and personal belongings. The gift will be used to provide six books to every student and case management for 60 at-risk children who need services such as tutoring, family counseling, nutrition, medical care, clothing and school supplies.
"Part of being a responsible, good neighbor is making a positive impact in the communities where we live and work and we are pleased to contribute to two leading organizations that empower children and give them the tools they need to succeed in life," said LyondellBasell's CEO Bob Patel.
At a special book fair held at K.E. Little Elementary School, LyondellBasell employees helped each child search through hundreds of books to select their favorites to take home along with a new backpack.
The Barbara Bush Houston Literacy Foundation, founded by former U.S. First Lady Barbara Bush, is dedicated to improving the quality of life for Houstonians of all ages through the power of literacy. The My Home Library program gives children in need a personal collection of books and a choice in what books they read.
"Research shows that when children have access to books, they read more often and achieve at higher academic levels, opening opportunities for them in elementary school and beyond," said Julie Baker Finck, Ph.D. president, Barbara Bush Houston Literacy Foundation. "When we learned of the personal loss suffered in the Dickinson area due to Hurricane Harvey, it broke our hearts to think that children were without books at home and we are very happy to join with LyondellBasell to fill this need."
Communities In Schools (CIS) is the nation's leading community-based organization helping vulnerable students stay in school and prepare for life. According to the organization, 78 percent of their students improved school attendance, 93 percent were promoted to the next grade and 99 percent of potential dropouts stayed in school.
"Following the devastating effects of Hurricane Harvey, we have been humbled by companies like LyondellBasell who have expressed a strong desire to help their communities rebuild," said Peter Wuenschel, executive director, CIS-Bay Area. "At-risk children who were traumatized by the loss suffered in the storm face significant barriers to academic success and CIS is committed to providing the support these children need to rise above their current circumstance, stay in school and achieve great things."
LyondellBasell has supported hurricane relief efforts since the early days of the storm. A donation was given to the American Red Cross Texas Gulf Coast Region, which provides life-saving services to more than 9 million people in the affected cities such as Corpus Christi, Beaumont, Galveston and Houston. A donation of personal protective equipment was given to the Houston Office of Emergency Management, which supported emergency responders and recovery teams in their efforts to search flooded homes and businesses. An additional donation of food was given to Catholic Charities of Southwest Louisiana to support their shelters which housed those impacted by the storm. The company also set up a Disaster Relief Fund as a way for employees to directly help their colleagues in need, with LyondellBasell matching funds on a dollar-for-dollar basis.
The company's global philanthropic efforts are focused in the areas of education, health, environment and providing support for first responders. The company remains an active supporter of many local organizations, including MD Anderson Cancer Center, Houston Astros Foundation and Galveston Bay Foundation. The company also actively supports the Harris County Sheriff's Industrial Unit Deputies and the Houston Police Department.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,400 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named one of the "World's Most Admired Companies" by Fortune Magazine. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
3/13/2018LyondellBasell to Address J.P. Morgan Aviation, Transportation & Industrials Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, March 8, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced Chief Financial Officer Thomas Aebischer will address investors at the J.P. Morgan Aviation, Transportation & Industrials Conference at 8:45 a.m. EDT on March 15, 2018 in the J.P. Morgan offices located at 383 Madison Ave., New York, New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.LyondellBasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
3/8/2018LyondellBasell Announces Increase to Quarterly Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, Feb. 23, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), today announced that its Supervisory Board has authorized the company's Management Board to declare a dividend of $1.00 per share, an 11 percent increase over the company's fourth quarter 2017 dividend of $0.90 per share. The dividend will be paid March 12, 2018 to shareholders of record March 5, 2018, with an ex-dividend date of March 2, 2018.
"A strong and progressive dividend is at the core of LyondellBasell's capital deployment hierarchy," said Bob Patel, CEO of LyondellBasell. "This double-digit increase reflects confidence in our ability to continue to provide leading returns to shareholders through business cycles."
The amount and timing of future dividends will depend on, and be subject to, market conditions, general economic conditions, applicable legal requirements and other corporate considerations. The dividend policy may be suspended or discontinued at any time.
Forward looking statements
This press release contains forward-looking statements. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ from forward-looking statements include, but are not limited to, availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and political governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments' the ability to comply with the terms of our credit facilities and other financial agreements; the ability to implement business strategies; and other factors affecting our business generally as set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2017, 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
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
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SOURCE LyondellBasell
Article Date
2/23/2018A. SCHULMAN INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of A. Schulman, Inc.
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
NEW ORLEANS, Feb. 16, 2018 /PRNewswire/ -- Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ("KSF") are investigating the proposed sale of A. Schulman, Inc. ("Schulman" or the "Company") (NasdaqGS: SHLM) to LyondellBasell Industries N.V. ("LyondellBasell") (NYSE: LYB). Under the terms of the proposed transaction, shareholders of Schulman will receive only $42.00 in cash and one contingent value right for each share of Schulman that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.
If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn (lewis.kahn@ksfcounsel.com) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nasdaqgs-shlm/ to learn more.
To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
206 Covington St.
Madisonville, LA 70447
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SOURCE Kahn Swick & Foti, LLC
Article Date
2/16/2018LyondellBasell Announces Entry into a Definitive Agreement to Acquire A. Schulman, Inc.
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON and AKRON, Ohio, Feb. 15, 2018 /PRNewswire/ --
LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, and A. Schulman, Inc. (NASDAQ: SHLM), a leading global supplier of high-performance plastic compounds, composites and powders, today announced that they have entered into a definitive agreement under which LyondellBasell will acquire A. Schulman for a total consideration of $2.25 billion. The acquisition builds upon LyondellBasell's existing platform in this space to create a premier Advanced Polymer Solutions business with broad geographic reach, leading technologies and a diverse product portfolio.
"The acquisition of A. Schulman is a natural extension of our current platform. This combination will allow us to provide our customers with a wider range of innovative solutions while adding the ability to serve high-growth end markets beyond the automotive sector, such as packaging and consumer products, electronics and appliances, building and construction, and agriculture," said Bob Patel, Chief Executive Officer of LyondellBasell. "By leveraging our proven approach to operational, commercial and business excellence, the combined business will create significant value for our shareholders and customers."
"This transaction, which provides our shareholders with a compelling, immediate cash premium, represents the culmination of a robust assessment of strategic alternatives undertaken by our Board of Directors," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman, Inc. "We are delighted to join forces with LyondellBasell, an industry leader we have admired for many years. LyondellBasell not only shares our commitment to meeting customers' demanding requirements, but with its scale and resources, the combined business will be better positioned to address a broader range of customer needs by integrating across applications and offering customers a wider range of solutions in attractive and growing markets. We also expect this combination to create significant opportunities for A. Schulman employees, whose professionalism and expertise will be integral to advancing LyondellBasell's vision, values and commitment to making a positive global impact."
Transaction Terms
Under the terms of the agreement, LyondellBasell will acquire A. Schulman for a total consideration of $2.25 billion. LyondellBasell will purchase 100 percent of A. Schulman common stock for $42 per share in cash and one contingent value right per share and assume outstanding debt and certain other obligations. In addition, the contingent value rights generally will provide a holder with an opportunity to receive certain net proceeds, if any are recovered, from certain ongoing litigation and government investigations relating to A. Schulman's Citadel and Lucent acquisitions.
LyondellBasell is using cash-on-hand to finance the acquisition. LyondellBasell expects to achieve $150 million in run-rate cost synergies within two years, primarily by leveraging its well-established approach to cost discipline and productivity, as well as its culture of operational, business and commercial excellence. Further, the acquisition is expected to be accretive to earnings within the first full year following close.
The combined businesses had revenues of $4.6 billion and adjusted EBITDA of $446 million over the last 12 months.
The proposed acquisition, which has been unanimously approved by the respective boards of LyondellBasell and A. Schulman, is subject to customary closing conditions, including regulatory approvals and approval by A. Schulman shareholders. The acquisition is expected to close in the second half of 2018.
More information on the transaction can be found at www.LyondellBasell.com/AdvancedPolymerSolutions
Shearman & Sterling LLP is serving as LyondellBasell's legal counsel, while J.P. Morgan and Dyal Co. are serving as co-financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP is serving as A. Schulman's legal counsel, while Citigroup Global Markets, Inc. is serving as financial advisor.
Conference Call
LyondellBasell will host a conference call on Thursday, February 15, 2018, at 8:45 a.m. EST. Participants on the call will include Chief Executive Officer Bob Patel, Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A complete listing of toll-free numbers by country is available at www.LyondellBasell.com/teleconference for international callers. The passcode for all numbers is 6934553.
The slides that accompany the call will be available at https://www.LyondellBasell.com/investorevents
A replay of the call will be available from 2:00 p.m. EST February 15, 2018, until March 18, 2018, at 12:59 a.m. EST. The replay dial-in numbers are 800-879-5513 (U.S.) and 402-220-4734 (toll). The passcode for each is 4587.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.LyondellBasell.com.
About A. Schulman
A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds, composites and resins headquartered in Akron, Ohio. Since 1928, the company has been providing innovative solutions to meet its customers' demanding requirements. The company's customers span a wide range of markets, such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The company employs approximately 5,100 people and has 54 manufacturing facilities globally. Additional information about A. Schulman can be found at www.aschulman.com.
Information Related to Financial Measures
This presentation 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 for LyondellBasell include adjusted EBITDA. Adjusted EBITDA, as presented for LyondellBasell Polypropylene Compounding (PPC) business, is calculated based upon a standard inventory costing methodology. For GAAP purposes, we present EBITDA for our Olefins and Polyolefins Americas segment, which includes PPC based upon last-in, first-out (LIFO) inventory costing methodology. To date, we have not allocated a 'LIFO effect' to PPC as it is not available. As such, we are unable to provide a quantitative reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. We calculate PPC Adjusted EBITDA in this presentation as income from continuing operations, with cost of goods sold valued at standard cost, plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. Adjusted 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. Adjusted EBITDA, as presented herein, may not be comparable to similarly titled measures of A. Schulman or as reported by other companies due to differences in the way the measure is calculated.
Cautionary Note Regarding Forward-looking Statements
The statements in this communication 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, 2016, 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.
Additionally, this communication includes forward-looking statements relating to the proposed merger between LyondellBasell and A. Schulman, Inc. ("Schulman"), including financial estimates and statements as to the expected timing, completion and effects of the proposed merger. These estimates and statements are subject to risks and uncertainties, and actual results might differ materially. Such estimates and statements include, but are not limited to, statements about the benefits of the merger, including future financial and operating results, the combined company's plans, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the management of LyondellBasell and Schulman and are subject to significant risks and uncertainties outside of our control. Actual results could differ materially based on factors including, but not limited to, the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, the risk that Schulman shareholders may not adopt the Merger Agreement, the risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated, failure to realize the benefits expected from the proposed merger and the effect of the announcement of the proposed merger on the ability of LyondellBasell and Schulman to retain customers and retain and hire key personnel and maintain relationships with their suppliers, and on their operating results and businesses generally. Discussions of additional risks and uncertainties are contained in LyondellBasell's and Schulman's filings with the Securities and Exchange Commission. Neither LyondellBasell nor Schulman is under any obligation, and each expressly disclaim any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this communication are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed merger between LyondellBasell and Schulman. In connection with the proposed transaction, Schulman plans to file a proxy statement with the SEC. SHAREHOLDERS OF SCHULMAN ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT SCHULMAN WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE TRANSACTION. Shareholders and investors will be able to obtain free copies of the proxy statement and other relevant materials (when they become available) and other documents filed by Schulman at the SEC's web site at www.sec.gov. Copies of the proxy statement (when they become available) and the filings that will be incorporated by reference therein may also be obtained, without charge, from Schulman's website, aschulman.com, under the heading "Investors" or by contacting Schulman's Investor Relations at 330-668-7346 or jennifer.beeman@aschulman.com.
Participants in the Solicitation
LyondellBasell, Schulman, their directors, executive officers and certain employees may be deemed, under SEC rules, to be participants in the solicitation of proxies in respect of the proposed merger. Information regarding LyondellBasell's directors and executive officers is available in its proxy statement filed with the SEC on April 6, 2017. Information regarding Schulman's directors and executive officers is available in its proxy statement filed with the SEC on October 27, 2017. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC (when they become available). These documents can be obtained free of charge from the sources indicated above.
1 Represents LyondellBasell's Polypropylene Compounding (PPC) business revenues of $2.1 billion for the twelve-month period ended December 31, 2017, plus A. Schulman revenues of $2.5 billion for the twelve-month period ended November 30, 2017. A. Shulman revenue information obtained from publicly available quarterly release data.
2 Represents LyondellBasell's Polypropylene Compounding (PPC) business adjusted EBITDA of $241 million for the twelve-month period ended December 31, 2017, plus A. Schulman adjusted EBITDA of $205 million for the twelve-month period ended November 30, 2017. A. Shulman adjusted EBITDA information obtained from publicly available quarterly release data.
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SOURCE LyondellBasell
Article Date
2/15/20182/2/2018 - LyondellBasell Reports 2017 Earnings
LyondellBasell Reports 2017 Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, Feb. 2, 2018 /PRNewswire/ --
2017 Full Year Highlights
Fourth Quarter 2017 Highlights
Comparisons with the prior quarter, fourth quarter 2016 and full year 2016 are available in the following table:
|
Table 1 - Earnings Summary |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
Millions of U.S. dollars |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||
|
(except share data) |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Sales and other operating revenues |
$9,135 |
$8,516 |
$7,747 |
$34,484 |
$29,183 |
||
|
Net income(a) |
1,894 |
1,056 |
763 |
4,877 |
3,837 |
||
|
Income from continuing operations(b) |
1,898 |
1,058 |
770 |
4,895 |
3,847 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Net income(c) |
4.79 |
2.67 |
1.87 |
12.23 |
9.13 |
||
|
Income from continuing operations(b) |
4.80 |
2.67 |
1.89 |
12.28 |
9.15 |
||
|
Diluted share count (weighted average in millions) |
395 |
395 |
407 |
399 |
420 |
||
|
EBITDA(d) |
1,726 |
1,821 |
1,406 |
7,134 |
6,602 |
||
|
(a) |
Includes net (income) loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 10. |
|||||||
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. |
|||||||
|
(c) |
Includes diluted earnings (loss) 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. |
|||||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2017 of $1.9 billion, or $4.80 per share. Fourth quarter 2017 EBITDA was $1.7 billion. The quarter included an $819 million one-time, non-cash benefit from U.S. tax reform that reduced net deferred tax liabilities and increased earnings by $2.07 per share. Full year 2017 income from continuing operations was $4.9 billion, or $12.28 per share, and EBITDA was $7.1 billion. During the first quarter, the company refinanced $1 billion in bonds at an after-tax cost of $106 million. The full year was positively impacted by an after-tax gain of $103 million in September on the sale of our interest in the Geosel pipeline and storage system in France and the fourth quarter one-time, non-cash benefit of $819 million from the reduction of net deferred tax liabilities. Combined, the net effect of the bond refinancing, Geosel gain and tax reform benefit positively impacted full year 2017 earnings by $2.05 per share.
"In 2017 we demonstrated the strength of our earnings performance under dynamic market conditions. Against a backdrop of substantial new capacity in our industry, LyondellBasell increased volumes, improved EBITDA and raised earnings. The complementary performance of our two global Olefins and Polyolefins segments combined with the relative stability of our Intermediates and Derivatives business portfolio provided a resilient platform for profitability during 2017. Outstanding performance by our Olefins and Polyolefins — Europe, Asia and International segment provided a fourth consecutive year of record EBITDA. In 2017, global operating rates remained strong due to delays in new capacity, a volume shortfall from Hurricane Harvey and an improving Chinese market. LyondellBasell captured market opportunities by operating our plants safely and reliably. We advanced our growth program by starting up a new polypropylene compounding plant in China, entering a premium polymer recycling joint venture with SUEZ, breaking ground on our new Hyperzone HDPE plant in La Porte, Texas and reaching a final investment decision for the world's largest PO/TBA plant," said Bob Patel, LyondellBasell chief executive officer.
OUTLOOK
"Over the past several months, strong global demand and delays in capacity additions across our industry have improved the outlook for 2018. We look forward to realizing the benefits of strong operating rates across our global portfolio of assets and continuing the upward trajectory in reliability and profitability for the Houston refinery. Over the coming years, LyondellBasell will continue to advance our growth by increasing the pace of organic business investments while diligently pursuing value-adding inorganic opportunities," 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 and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Olefins and Polyolefins — Americas (O&P-Americas) – Our O&P — Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
Table 2 - O&P–Americas Financial Overview |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$667 |
$497 |
$458 |
$2,461 |
$2,393 |
||
|
EBITDA |
784 |
616 |
563 |
2,982 |
2,877 |
||
Three months ended December 31, 2017 versus three months ended September 30, 2017 – EBITDA increased $168 million versus the third quarter 2017. Fourth quarter results were impacted by a last-in, first-out (LIFO) inventory charge of $22 million. Compared to the prior period, olefins results increased approximately $160 million. This increase was driven by a margin improvement of approximately 5 cents per pound due to higher ethylene prices, higher co-product contribution and lower feedstock costs. Volumes improved in the fourth quarter as plants returned to normal operation post Hurricane Harvey. Combined polyolefins results increased by approximately $40 million primarily due to an improvement in the polyethylene price spread over ethylene of approximately 2 cents per pound.
Three months ended December 31, 2017 versus three months ended December 31, 2016 – EBITDA increased $221 million versus the fourth quarter 2016, which included a $23 million pension settlement. Olefins results increased approximately $100 million versus the fourth quarter 2016. Ethylene margins improved approximately 5 cents per pound primarily due to improved co-product pricing. Combined polyolefins results increased approximately $75 million. Polyethylene spreads improved approximately 7 cents per pound as polyethylene price increases outpaced ethylene price increases.
Full year ended December 31, 2017 versus full year ended December 31, 2016 – EBITDA increased $105 million versus 2016, which included a $57 million gain on the sale of the Petroken polypropylene business and a $23 million pension settlement. 2017 results include a $31 million gain on the sale of property in Lake Charles, Louisiana. Olefins results increased by approximately $170 million from the prior year. Production was approximately 17 percent higher primarily due to 2016 scheduled plant maintenance and the expansion at Corpus Christi. Ethylene margins improved slightly with tighter market conditions. Combined polyolefins results decreased approximately $70 million versus the prior year. Polypropylene spreads over propylene declined approximately 5 cents per pound compared to high levels seen in 2016. This was partially offset by polyethylene spreads over ethylene increasing approximately 2 cents per pound. Joint venture equity income decreased by $17 million versus the prior year.
Olefins and Polyolefins — Europe, Asia, and International (O&P-EAI) – Our O&P — EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
|
Table 3 - O&P–EAI Financial Overview |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$224 |
$460 |
$266 |
$1,634 |
$1,494 |
||
|
EBITDA |
356 |
698 |
398 |
2,282 |
2,067 |
||
Three months ended December 31, 2017 versus three months ended September 30, 2017 – EBITDA decreased $342 million versus the third quarter 2017, which included a gain of $108 million on the sale of our interest in Geosel. Fourth quarter results were negatively impacted by a pension settlement charge of $20 million and a LIFO inventory charge of $20 million. Compared to the prior period, olefins results decreased approximately $100 million. Ethylene margins declined approximately 6 cents per pound primarily due to increased feedstock costs. Volume declined primarily due to unplanned maintenance in October 2017 at our Wesseling, Germany cracker. Combined polyolefins results declined by approximately $75 million due to margin declines in polyolefins and seasonal sales volume declines for both polyethylene and polypropylene.
Three months ended December 31, 2017 versus three months ended December 31, 2016 – EBITDA decreased by $42 million versus the fourth quarter 2016. The fourth quarter 2017 was negatively impacted by an additional $12 million of pension settlement charges relative to 2016. Compared to the prior period, olefins results were relatively unchanged. Combined polyolefins results declined by approximately $25 million primarily due to a decrease in polyethylene margin.
Full year ended December 31, 2017 versus full year ended December 31, 2016 – The segment achieved record EBITDA for 2017. EBITDA increased $215 million versus 2016, which included gains totaling $32 million from the sale of the Petroken polypropylene business, restructuring of Asian polypropylene joint ventures and the sale of idled Australian polypropylene assets. 2017 results included a benefit of $108 million from the gain on the sale of our interest in Geosel which was partially offset by pension charges that were $12 million higher than 2016. Olefins results increased by approximately $190 million. This increase was driven by margins which improved primarily due to an ethylene price increase of approximately 6 cents per pound. Volumes improved 4% in the absence of planned maintenance which occurred at two of the European crackers in 2016. Combined polyolefins results decreased approximately $50 million compared to the prior year driven by a polyethylene spread decline of approximately 3 cents per pound which was partially offset by an increase in polyolefin sales volumes. Joint venture equity income decreased by $31 million.
Intermediates and Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
Table 4 - I&D Financial Overview |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$334 |
$329 |
$236 |
$1,202 |
$1,058 |
||
|
EBITDA |
410 |
402 |
306 |
1,490 |
1,333 |
||
Three months ended December 31, 2017 versus three months ended September 30, 2017 – EBITDA increased $8 million versus the third quarter 2017. Fourth quarter results were impacted by a $17 million LIFO inventory charge. PO and derivatives results increased approximately $35 million. Volumes increased approximately 5% with the absence of Hurricane Harvey impacts and margins improved due to market tightness. Intermediate chemicals results were relatively unchanged from the third quarter. Oxyfuels and related products results were relatively unchanged as seasonal margin declines were offset by volume improvements with the absence of hurricane losses during the third quarter.
Three months ended December 31, 2017 versus three months ended December 31, 2016 – EBITDA increased $104 million versus the fourth quarter 2016, which included a $16 million pension settlement. Results for PO and derivatives and intermediate chemicals improved by approximately $120 million. PO and derivatives volumes and margins improved as well as intermediate chemicals margins. The gains in the PO and derivatives and intermediate chemicals businesses were offset by a net charge of approximately $35 million related to precious metal catalysts. Oxyfuels and related products improved by approximately $10 million.
Full year ended December 31, 2017 versus full year ended December 31, 2016 – EBITDA increased $157 million versus 2016, which included a $16 million pension settlement. EBITDA of approximately $1.5 billion for 2017 returned to the historical levels typically seen for the business. PO and derivatives and intermediate chemicals results increased approximately $250 million primarily due to margin improvements. The gains in the PO and derivatives and intermediate chemicals businesses were offset by approximately $50 million of higher charges related to precious metal catalysts. Oxyfuels and related products results declined by approximately $60 million. Volumes were lower due to planned maintenance in 2017 and margins were reduced primarily due to higher butane pricing.
Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.
|
Table 5 - Refining Financial Overview |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income (loss) |
$59 |
$10 |
$40 |
($22) |
($99) |
||
|
EBITDA |
104 |
58 |
81 |
157 |
72 |
||
Three months ended December 31, 2017 versus three months ended September 30, 2017 – EBITDA increased $46 million versus the third quarter 2017 primarily due to a fourth quarter LIFO benefit of $38 million. The Houston refinery operated at 245,000 barrels per day, up 5,000 barrels per day from the prior quarter. The Maya 2-1-1 industry benchmark spread declined $1.55, averaging $20.26 per barrel. Declines in gasoline refining spreads were partially offset by improved heavy to light crude oil differentials.
Three months ended December 31, 2017 versus three months ended December 31, 2016 – EBITDA increased $23 million versus the fourth quarter 2016. Fourth quarter 2017 throughput increased by 17,000 barrels per day from the prior year period. The Maya 2-1-1 industry benchmark spread increased by $1.26 to $20.26 per barrel, primarily due to improvements in diesel product price spreads over crude.
Full year ended December 31, 2017 versus full year ended December 31, 2016 – EBITDA increased $85 million versus 2016. Throughput at the Houston refinery averaged 236,000 barrels per day, up 35,000 barrels per day. The Maya 2-1-1 industry benchmark spread increased by $1.32 per barrel, averaging $20.56 per barrel, primarily due to improved diesel product spreads.
Technology Segment – Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
Table 6 - Technology Financial Overview |
||||||||
|
Three Months Ended |
Year Ended |
|||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
|||
|
Operating income |
$58 |
$36 |
$51 |
$183 |
$221 |
|||
|
EBITDA |
68 |
47 |
61 |
223 |
262 |
|||
Three months ended December 31, 2017 versus three months ended September 30, 2017 – EBITDA increased by $21 million due to increased catalyst sales and the timing of licensing revenue.
Three months ended December 31, 2017 versus three months ended December 31, 2016 – EBITDA increased by $7 million.
Full year ended December 31, 2017 versus full year ended December 31, 2016 – EBITDA decreased by $39 million, primarily due to decreased licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $401 million during the fourth quarter 2017 and $1.5 billion for the full year 2017. Our cash and liquid investment balance was $3.4 billion at December 31, 2017. We repurchased 10 million ordinary shares during 2017. There were approximately 395 million common shares outstanding as of December 31, 2017. The company paid dividends of $1.4 billion during 2017.
CONFERENCE CALL
LyondellBasell will host a conference call February 2 at 11 a.m. EST. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. 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 6934553.
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. EST February 2 until March 6 at 12:59 a.m. EST. The replay dial-in numbers are 800-677-5199 (U.S.) and 203-369-3133 (international). The pass code for each is 6549.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies." More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
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.
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.
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) |
|||||||||||||||||||||||||||||||||
|
2016 |
2017 |
||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||||
|
Sales and other operating revenues: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,115 |
$ |
2,211 |
$ |
2,342 |
$ |
2,409 |
$ |
9,077 |
$ |
2,604 |
$ |
2,547 |
$ |
2,449 |
$ |
2,800 |
$ |
10,400 | |||||||||||||
|
Olefins & Polyolefins - EAI |
2,578 |
2,721 |
2,634 |
2,646 |
10,579 |
3,024 |
3,008 |
3,152 |
3,079 |
12,263 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
1,702 |
1,769 |
1,805 |
1,950 |
7,226 |
2,150 |
2,014 |
2,077 |
2,231 |
8,472 | |||||||||||||||||||||||
|
Refining |
955 |
1,289 |
1,330 |
1,561 |
5,135 |
1,353 |
1,713 |
1,670 |
2,112 |
6,848 | |||||||||||||||||||||||
|
Technology |
132 |
129 |
102 |
116 |
479 |
120 |
107 |
98 |
125 |
450 | |||||||||||||||||||||||
|
Other/elims |
(739) |
(791) |
(848) |
(935) |
(3,313) |
(821) |
(986) |
(930) |
(1,212) |
(3,949) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
$ |
8,403 |
$ |
8,516 |
$ |
9,135 |
$ |
34,484 | |||||||||||||
|
Operating income (loss): |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
707 |
$ |
646 |
$ |
582 |
$ |
458 |
$ |
2,393 |
$ |
559 |
$ |
738 |
$ |
497 |
$ |
667 |
$ |
2,461 | |||||||||||||
|
Olefins & Polyolefins - EAI |
358 |
423 |
447 |
266 |
1,494 |
401 |
549 |
460 |
224 |
1,634 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
255 |
327 |
240 |
236 |
1,058 |
269 |
270 |
329 |
334 |
1,202 | |||||||||||||||||||||||
|
Refining |
(30) |
(53) |
(56) |
40 |
(99) |
(70) |
(21) |
10 |
59 |
(22) | |||||||||||||||||||||||
|
Technology |
73 |
62 |
35 |
51 |
221 |
50 |
39 |
36 |
58 |
183 | |||||||||||||||||||||||
|
Other |
(3) |
(2) |
1 |
(3) |
(7) |
1 |
2 |
- - |
(1) |
2 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
1,360 |
$ |
1,403 |
$ |
1,249 |
$ |
1,048 |
$ |
5,060 |
$ |
1,210 |
$ |
1,577 |
$ |
1,332 |
$ |
1,341 |
$ |
5,460 | |||||||||||||
|
Depreciation and amortization: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
90 |
$ |
88 |
$ |
87 |
$ |
97 |
$ |
362 |
$ |
118 |
$ |
107 |
$ |
105 |
$ |
109 |
$ |
439 | |||||||||||||
|
Olefins & Polyolefins - EAI |
55 |
58 |
58 |
58 |
229 |
59 |
58 |
60 |
62 |
239 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
70 |
69 |
62 |
68 |
269 |
69 |
68 |
69 |
73 |
279 | |||||||||||||||||||||||
|
Refining |
43 |
40 |
40 |
40 |
163 |
40 |
44 |
49 |
44 |
177 | |||||||||||||||||||||||
|
Technology |
10 |
11 |
10 |
10 |
41 |
10 |
9 |
11 |
10 |
40 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
268 |
$ |
266 |
$ |
257 |
$ |
273 |
$ |
1,064 |
$ |
296 |
$ |
286 |
$ |
294 |
$ |
298 |
$ |
1,174 | |||||||||||||
|
EBITDA: (b) |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
878 |
$ |
754 |
$ |
682 |
$ |
563 |
$ |
2,877 |
$ |
723 |
$ |
859 |
$ |
616 |
$ |
784 |
$ |
2,982 | |||||||||||||
|
Olefins & Polyolefins - EAI |
509 |
576 |
584 |
398 |
2,067 |
529 |
699 |
698 |
356 |
2,282 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
326 |
397 |
304 |
306 |
1,333 |
339 |
339 |
402 |
410 |
1,490 | |||||||||||||||||||||||
|
Refining |
14 |
(13) |
(10) |
81 |
72 |
(30) |
25 |
58 |
104 |
157 | |||||||||||||||||||||||
|
Technology |
83 |
73 |
45 |
61 |
262 |
60 |
48 |
47 |
68 |
223 | |||||||||||||||||||||||
|
Other |
(3) |
(4) |
1 |
(3) |
(9) |
(4) |
- - |
- - |
4 |
- - | |||||||||||||||||||||||
|
Continuing Operations |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
1,726 |
$ |
7,134 | |||||||||||||
|
Capital, turnarounds and IT deferred spending: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
303 |
$ |
339 |
$ |
384 |
$ |
350 |
$ |
1,376 |
$ |
202 |
$ |
179 |
$ |
165 |
$ |
207 |
$ |
753 | |||||||||||||
|
Olefins & Polyolefins - EAI |
81 |
60 |
48 |
72 |
261 |
47 |
32 |
44 |
83 |
206 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
76 |
80 |
90 |
87 |
333 |
77 |
107 |
79 |
69 |
332 | |||||||||||||||||||||||
|
Refining |
57 |
71 |
51 |
45 |
224 |
84 |
79 |
21 |
29 |
213 | |||||||||||||||||||||||
|
Technology |
6 |
9 |
9 |
12 |
36 |
7 |
6 |
8 |
11 |
32 | |||||||||||||||||||||||
|
Other |
4 |
4 |
4 |
1 |
13 |
4 |
4 |
1 |
2 |
11 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
527 |
$ |
563 |
$ |
586 |
$ |
567 |
$ |
2,243 |
$ |
421 |
$ |
407 |
$ |
318 |
$ |
401 |
$ |
1,547 | |||||||||||||
|
(a) |
EBITDA for the first quarter of 2016 includes a pre-tax lower of cost or market inventory valuation ("LCM") charge of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 EBITDA also includes a pre-tax LCM charge of $29 million. | |||||||||||||||||||||||||||||||||
|
(b) |
See Table 8 for EBITDA calculation. | |||||||||||||||||||||||||||||||||
|
Table 8 - EBITDA Calculation | |||||||||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||
|
Net income(a) (b) |
$ |
1,030 |
$ |
1,091 |
$ |
953 |
$ |
763 |
$ |
3,837 |
$ |
797 |
$ |
1,130 |
$ |
1,056 |
$ |
1,894 |
$ |
4,877 | |||||||||||
|
Loss from discontinued operations, net of tax |
- - |
1 |
2 |
7 |
10 |
8 |
4 |
2 |
4 |
18 | |||||||||||||||||||||
|
Income from continuing operations(a) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
1,134 |
1,058 |
1,898 |
4,895 | |||||||||||||||||||||
|
Provision for (benefit from) income taxes(b) |
432 |
346 |
326 |
282 |
1,386 |
315 |
459 |
380 |
(556) |
598 | |||||||||||||||||||||
|
Depreciation and amortization |
268 |
266 |
257 |
273 |
1,064 |
296 |
286 |
294 |
298 |
1,174 | |||||||||||||||||||||
|
Interest expense, net(c) |
77 |
79 |
68 |
81 |
305 |
201 |
91 |
89 |
86 |
467 | |||||||||||||||||||||
|
EBITDA(d) |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
1,726 |
$ |
7,134 | |||||||||||
|
(a) |
The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 also includes an $18 million after-tax LCM charge. The third quarter of 2017 includes an after-tax gain of $103 million on the sale of our interest in Geosel. | ||||||||||||||||||||||||||||||||||
|
(b) |
The fourth quarter of 2017 includes an $819 million non-cash tax benefit related to the lower federal income tax rate resulting from the newly enacted U.S. Tax Cuts and Jobs Act. | ||||||||||||||||||||||||||||||||||
|
(c) |
Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. | ||||||||||||||||||||||||||||||||||
|
(d) |
The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. Fourth quarter 2016 also includes a pre-tax LCM charge of $29 million. Third quarter 2017 EBITDA includes a pre-tax gain of $108 million on the sale of our interest in Geosel. | ||||||||||||||||||||||||||||||||||
|
Table 9 - Selected Segment Operating Information | ||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||||
|
Ethylene produced |
2,392 |
1,899 |
1,939 |
2,173 |
8,403 |
2,486 |
2,606 |
2,088 |
2,442 |
9,622 | ||||||||||||||
|
Propylene produced |
832 |
748 |
575 |
660 |
2,815 |
597 |
821 |
671 |
724 |
2,813 | ||||||||||||||
|
Polyethylene sold |
1,554 |
1,426 |
1,517 |
1,485 |
5,982 |
1,533 |
1,404 |
1,454 |
1,592 |
5,983 | ||||||||||||||
|
Polypropylene sold |
612 |
582 |
659 |
623 |
2,476 |
644 |
634 |
624 |
642 |
2,544 | ||||||||||||||
|
Benchmark Market Prices |
||||||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
33.63 |
46.01 |
44.94 |
49.29 |
43.56 |
51.78 |
48.15 |
48.20 |
55.30 |
50.85 | ||||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
35.34 |
47.39 |
46.52 |
50.60 |
45.03 |
53.39 |
50.17 |
51.67 |
60.94 |
54.02 | ||||||||||||||
|
Houston Ship Channel natural gas (USD per million BTUs) |
1.93 |
2.06 |
2.79 |
3.01 |
2.45 |
2.96 |
3.14 |
2.92 |
2.87 |
2.97 | ||||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
9.8 |
12.0 |
10.6 |
14.3 |
11.7 |
11.8 |
12.5 |
16.1 |
16.2 |
14.2 | ||||||||||||||
|
U.S. ethylene (cents/pound) |
26.7 |
30.3 |
33.0 |
32.7 |
30.7 |
33.1 |
31.9 |
31.9 |
33.5 |
32.6 | ||||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
52.3 |
59.0 |
60.7 |
58.3 |
57.6 |
57.3 |
59.0 |
60.7 |
67.5 |
61.1 | ||||||||||||||
|
U.S. propylene (cents/pound) |
31.0 |
32.7 |
37.8 |
36.2 |
34.4 |
47.2 |
41.0 |
41.7 |
49.0 |
44.7 | ||||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.8 |
61.7 |
60.2 |
55.8 |
61.4 |
66.2 |
59.0 |
60.2 |
68.7 |
63.5 | ||||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||||
|
Ethylene produced |
950 |
941 |
1,066 |
946 |
3,903 |
1,022 |
1,069 |
1,046 |
927 |
4,064 | ||||||||||||||
|
Propylene produced |
555 |
577 |
649 |
563 |
2,344 |
598 |
632 |
620 |
557 |
2,407 | ||||||||||||||
|
Polyethylene sold |
1,434 |
1,386 |
1,315 |
1,330 |
5,465 |
1,421 |
1,370 |
1,525 |
1,359 |
5,675 | ||||||||||||||
|
Polypropylene sold |
1,773 |
1,617 |
1,509 |
1,582 |
6,481 |
1,714 |
1,530 |
1,738 |
1,520 |
6,502 | ||||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
16.3 |
21.2 |
17.9 |
23.8 |
19.8 |
22.7 |
17.6 |
18.9 |
25.3 |
21.1 | ||||||||||||||
|
Western Europe ethylene |
38.4 |
41.1 |
42.3 |
43.1 |
41.2 |
46.2 |
47.1 |
44.2 |
47.0 |
46.1 | ||||||||||||||
|
Western Europe polyethylene [high density] |
55.4 |
57.6 |
55.7 |
55.2 |
56.0 |
58.2 |
59.5 |
56.6 |
57.4 |
57.9 | ||||||||||||||
|
Western Europe propylene |
26.3 |
28.8 |
30.7 |
33.3 |
29.8 |
37.0 |
39.3 |
36.4 |
39.5 |
38.1 | ||||||||||||||
|
Western Europe polypropylene [homopolymer] |
46.5 |
49.5 |
49.5 |
51.7 |
49.3 |
56.3 |
60.1 |
57.4 |
59.1 |
58.2 | ||||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||||||
|
Volumes (million pounds unless otherwise indicated) |
||||||||||||||||||||||||
|
Propylene oxide and derivatives |
793 |
743 |
752 |
749 |
3,037 |
786 |
748 |
793 |
830 |
3,157 | ||||||||||||||
|
Intermediate Chemicals: |
||||||||||||||||||||||||
|
Ethylene oxide and derivatives |
301 |
233 |
224 |
329 |
1,087 |
292 |
297 |
275 |
296 |
1,160 | ||||||||||||||
|
Styrene monomer |
917 |
933 |
911 |
933 |
3,694 |
992 |
924 |
845 |
797 |
3,558 | ||||||||||||||
|
Acetyls |
702 |
821 |
751 |
776 |
3,050 |
825 |
672 |
715 |
744 |
2,956 | ||||||||||||||
|
Oxyfuels and Related Products: |
||||||||||||||||||||||||
|
TBA Intermediates |
415 |
391 |
410 |
361 |
1,577 |
383 |
332 |
359 |
378 |
1,452 | ||||||||||||||
|
MTBE/ETBE (million gallons) |
270 |
278 |
298 |
264 |
1,110 |
239 |
263 |
289 |
293 |
1,084 | ||||||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||||||
|
MTBE - Northwest Europe |
44.4 |
78.7 |
55.3 |
50.6 |
57.2 |
49.5 |
67.3 |
59.8 |
35.9 |
52.9 | ||||||||||||||
|
Refining |
||||||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||||||
|
Heavy crude oil processing rate |
186 |
183 |
209 |
228 |
201 |
193 |
265 |
240 |
245 |
236 | ||||||||||||||
|
Benchmark Market Margins |
||||||||||||||||||||||||
|
Light crude oil - 2-1-1 |
8.67 |
11.52 |
11.46 |
11.20 |
10.73 |
11.86 |
13.26 |
16.71 |
12.30 |
13.54 | ||||||||||||||
|
Light crude oil - Maya differential |
9.19 |
9.55 |
7.52 |
7.80 |
8.51 |
8.78 |
6.28 |
5.10 |
7.96 |
7.02 | ||||||||||||||
|
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 | ||||||||||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | ||||||||||||||||||||||
|
Sales and other operating revenues |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
$ |
8,403 |
$ |
8,516 |
$ |
9,135 |
$ |
34,484 | ||||||||||||
|
Cost of sales(a) |
5,166 |
5,702 |
5,903 |
6,420 |
23,191 |
6,991 |
6,601 |
6,939 |
7,528 |
28,059 | ||||||||||||||||||||||
|
Selling, general and administrative expenses |
193 |
199 |
188 |
253 |
833 |
204 |
200 |
218 |
237 |
859 | ||||||||||||||||||||||
|
Research and development expenses |
24 |
24 |
25 |
26 |
99 |
25 |
25 |
27 |
29 |
106 | ||||||||||||||||||||||
|
Operating income(a) |
1,360 |
1,403 |
1,249 |
1,048 |
5,060 |
1,210 |
1,577 |
1,332 |
1,341 |
5,460 | ||||||||||||||||||||||
|
Income from equity investments |
91 |
117 |
81 |
78 |
367 |
81 |
78 |
81 |
81 |
321 | ||||||||||||||||||||||
|
Interest expense, net(b) |
(77) |
(79) |
(68) |
(81) |
(305) |
(201) |
(91) |
(89) |
(86) |
(467) | ||||||||||||||||||||||
|
Other income (expense), net(c) |
88 |
(3) |
19 |
7 |
111 |
30 |
29 |
114 |
6 |
179 | ||||||||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) (c) |
1,462 |
1,438 |
1,281 |
1,052 |
5,233 |
1,120 |
1,593 |
1,438 |
1,342 |
5,493 | ||||||||||||||||||||||
|
Provision for (benefit from) income taxes(d) |
432 |
346 |
326 |
282 |
1,386 |
315 |
459 |
380 |
(556) |
598 | ||||||||||||||||||||||
|
Income from continuing operations(e) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
1,134 |
1,058 |
1,898 |
4,895 | ||||||||||||||||||||||
|
Loss from discontinued operations, net of tax |
- - |
(1) |
(2) |
(7) |
(10) |
(8) |
(4) |
(2) |
(4) |
(18) | ||||||||||||||||||||||
|
Net income(e) |
1,030 |
1,091 |
953 |
763 |
3,837 |
797 |
1,130 |
1,056 |
1,894 |
4,877 | ||||||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
- - |
- - |
(1) |
- - |
(1) |
- - |
1 |
1 |
- - |
2 | ||||||||||||||||||||||
|
Net income attributable to the Company shareholders(e) |
$ |
1,030 |
$ |
1,091 |
$ |
952 |
$ |
763 |
$ |
3,836 |
$ |
797 |
$ |
1,131 |
$ |
1,057 |
$ |
1,894 |
$ |
4,879 | ||||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $68 million and $29 million in the first and fourth quarters of 2016, respectively. A pre-tax benefit of $68 million in the second quarter of 2016 reflects the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
||||||||||||||||||||||||||||||||||
|
(b) |
Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. |
||||||||||||||||||||||||||||||||||
|
(c) |
Includes a $78 million gain in the first quarter of 2016 on the sale of our wholly owned Argentine subsidiary; a pre-tax gain of $31 million in the first quarter of 2017 on the sale of our Lake Charles, Louisiana site currently used as a logistics terminal; and a pre-tax gain of $108 million in the third quarter of 2017 on the sale of our interest in Geosel. |
||||||||||||||||||||||||||||||||||
|
(d) |
The fourth quarter of 2017 includes an $819 million non-cash tax benefit related to the lower federal income tax rate resulting from the newly enacted U.S. Tax Cuts and Jobs Act. |
||||||||||||||||||||||||||||||||||
|
(e) |
Amounts presented herein include after-tax LCM charges of $47 million and $18 million in the first and fourth quarters of 2016, respectively. The second quarter of 2016 includes an after-tax benefit of $47 million for the partial reversal of the first quarter 2016 LCM adjustment resulting from price recoveries during the period. The first quarter of 2016 also includes a $78 million gain on the sale of our wholly owned Argentine subsidiary. The first quarter of 2017 includes after-tax charges totaling $106 million related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. The third quarter of 2017 includes a $103 million after-tax gain for sale of our interest in Geosel. The fourth quarter of 2017 includes an $819 million non-cash benefit discussed above. |
||||||||||||||||||||||||||||||||||
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations |
|||||||||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Annual |
Q1 |
Q2 |
Q3 |
Q4 |
Annual | |||||||||||||||||||||
|
Pretax charges (benefits): |
|||||||||||||||||||||||||||||||
|
Tax benefit due to change in tax law from |
|||||||||||||||||||||||||||||||
|
U.S. Tax Cuts and Jobs Act |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
(819) |
$ |
(819) | |||||||||||
|
Charges and premiums related to repayment of debt |
- - |
- - |
- - |
- - |
- - |
113 |
- - |
- - |
- - |
113 | |||||||||||||||||||||
|
Out of period tax adjustment |
- - |
- - |
- - |
61 |
74 |
- - |
- - |
- - |
- - |
- - | |||||||||||||||||||||
|
Gain on sale of wholly owned subsidiary |
(78) |
- - |
- - |
- - |
(78) |
- - |
- - |
- - |
- - |
- - | |||||||||||||||||||||
|
Lower of cost or market inventory adjustment |
68 |
(68) |
- - |
29 |
29 |
- - |
- - |
- - |
- - |
- - | |||||||||||||||||||||
|
Pension settlement charge |
- - |
- - |
- - |
58 |
58 |
- - |
- - |
- - |
- - |
- - | |||||||||||||||||||||
|
Gain on sale of Geosel |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
(108) |
- - |
(108) | |||||||||||||||||||||
|
Total pretax charges (benefits) |
(10) |
(68) |
- - |
148 |
83 |
113 |
- - |
(108) |
(819) |
(814) | |||||||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(21) |
21 |
- - |
(32) |
(32) |
(7) |
- - |
5 |
- - |
(2) | |||||||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
(31) |
$ |
(47) |
$ |
- - |
$ |
116 |
$ |
51 |
$ |
106 |
$ |
- - |
$ |
(103) |
$ |
(819) |
$ |
(816) | |||||||||||
|
Effect on diluted earnings per share |
$ |
0.07 |
$ |
0.11 |
$ |
- - |
$ |
(0.29) |
$ |
(0.12) |
$ |
(0.26) |
$ |
- - |
$ |
0.26 |
$ |
2.07 |
$ |
2.05 | |||||||||||
|
Table 12 - Unaudited Cash Flow Information | |||||||||||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||||
|
Net cash provided by operating activities(a) |
$ |
1,300 |
$ |
1,261 |
$ |
1,332 |
$ |
1,713 |
$ |
5,606 |
$ |
678 |
$ |
1,560 |
$ |
1,486 |
$ |
1,482 |
$ |
5,206 | |||||||||||||
|
Net cash used in investing activities(b) |
(600) |
(471) |
(459) |
(771) |
(2,301) |
(541) |
(513) |
(200) |
(502) |
(1,756) | |||||||||||||||||||||||
|
Net cash used in financing activities(a) |
(333) |
(1,039) |
(1,195) |
(782) |
(3,349) |
(537) |
(822) |
(832) |
(668) |
(2,859) | |||||||||||||||||||||||
|
(a) |
In the second quarter of 2017, the early adoption of ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments resulted in the reclassification of cash flows related to debt extinguishment costs incurred in the first quarter of 2017 from operating to financing activities cash flows. | |||||||||||||||||||||||||||||||||
|
(b) |
Also in the second quarter of 2017, the early retrospective adoption of ASU 2016-18, Statement of Cash Flows: Restricted Cash requires the inclusion of restricted cash and restricted cash equivalents in the cash and cash equivalents balances in our Statements of Cash Flows. | |||||||||||||||||||||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information | ||||||||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
June 30, |
September 30, |
December 31, | |||||||||||||||||||
|
(Millions of U.S. dollars) |
2016 |
2016 |
2016 |
2016 |
2017 |
2017 |
2017 |
2017 | ||||||||||||||||||
|
Cash and cash equivalents |
$ |
1,318 |
$ |
1,060 |
$ |
740 |
$ |
875 |
$ |
485 |
$ |
734 |
$ |
1,204 |
$ |
1,523 | ||||||||||
|
Restricted cash |
4 |
4 |
4 |
3 |
1 |
6 |
7 |
5 | ||||||||||||||||||
|
Short-term investments |
1,332 |
1,023 |
1,090 |
1,147 |
1,176 |
1,278 |
1,295 |
1,307 | ||||||||||||||||||
|
Accounts receivable, net |
2,683 |
2,806 |
2,852 |
2,842 |
3,292 |
3,086 |
3,275 |
3,539 | ||||||||||||||||||
|
Inventories |
3,978 |
4,009 |
4,015 |
3,809 |
3,875 |
4,007 |
4,177 |
4,217 | ||||||||||||||||||
|
Prepaid expenses and other current assets |
1,009 |
1,081 |
852 |
923 |
852 |
964 |
1,104 |
1,147 | ||||||||||||||||||
|
Total current assets |
10,324 |
9,983 |
9,553 |
9,599 |
9,681 |
10,075 |
11,062 |
11,738 | ||||||||||||||||||
|
Property, plant and equipment, net |
9,373 |
9,681 |
10,057 |
10,137 |
10,361 |
10,551 |
10,737 |
10,997 | ||||||||||||||||||
|
Investments and long-term receivables: |
||||||||||||||||||||||||||
|
Investment in PO joint ventures |
398 |
390 |
399 |
415 |
409 |
423 |
428 |
420 | ||||||||||||||||||
|
Equity investments |
1,734 |
1,610 |
1,681 |
1,575 |
1,672 |
1,595 |
1,644 |
1,635 | ||||||||||||||||||
|
Other investments and long-term receivables |
18 |
18 |
17 |
20 |
20 |
18 |
19 |
17 | ||||||||||||||||||
|
Goodwill |
548 |
542 |
543 |
528 |
531 |
559 |
570 |
570 | ||||||||||||||||||
|
Intangible assets, net |
618 |
588 |
562 |
550 |
517 |
499 |
480 |
568 | ||||||||||||||||||
|
Other assets |
559 |
623 |
607 |
618 |
577 |
398 |
303 |
261 | ||||||||||||||||||
|
Total assets |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
$ |
24,118 |
$ |
25,243 |
$ |
26,206 | ||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
2 |
$ |
2 |
$ |
2 |
$ |
3 |
$ |
2 | ||||||||||
|
Short-term debt |
594 |
616 |
621 |
594 |
611 |
561 |
381 |
68 | ||||||||||||||||||
|
Accounts payable |
2,243 |
2,357 |
2,329 |
2,529 |
2,627 |
2,317 |
2,735 |
2,895 | ||||||||||||||||||
|
Accrued liabilities |
1,600 |
1,374 |
1,357 |
1,415 |
1,139 |
1,251 |
1,493 |
1,812 | ||||||||||||||||||
|
Total current liabilities |
4,441 |
4,351 |
4,310 |
4,540 |
4,379 |
4,131 |
4,612 |
4,777 | ||||||||||||||||||
|
Long-term debt |
8,504 |
8,485 |
8,464 |
8,385 |
8,419 |
8,496 |
8,531 |
8,549 | ||||||||||||||||||
|
Other liabilities |
2,125 |
2,143 |
2,151 |
2,113 |
2,130 |
2,253 |
2,326 |
2,275 | ||||||||||||||||||
|
Deferred income taxes(a) |
2,134 |
2,149 |
2,387 |
2,331 |
2,353 |
2,370 |
2,447 |
1,655 | ||||||||||||||||||
|
Stockholders' equity |
6,344 |
6,283 |
6,082 |
6,048 |
6,462 |
6,866 |
7,326 |
8,949 | ||||||||||||||||||
|
Non-controlling interests |
24 |
24 |
25 |
25 |
25 |
2 |
1 |
1 | ||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
$ |
24,118 |
$ |
25,243 |
$ |
26,206 | ||||||||||
|
(a) |
Deferred income taxes at December 31, 2017 reflects an $819 million favorable adjustment related to the lower federal income tax rate resulting from the US Tax Cuts and Jobs Act. | |||||||||||||||||||||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-reports-2017-earnings-300592357.html
SOURCE LyondellBasell Industries
Article Date
2/2/20181/22/2018 - LyondellBasell named to Fortune Magazine's "World's Most Admired Companies" list for the first time
LyondellBasell named to Fortune Magazine's "World's Most Admired Companies" list for the first time
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Jan. 22, 2018 /PRNewswire/ -- Today, LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, announced it has been named to Fortune Magazine's 2018 list of the "World's Most Admired Companies" for 2018. This is a first-time achievement for the company.
"This is a tremendous and well-deserved honor for our 13,000 employees around the world who continue to deliver on the promise of making LyondellBasell the best operated, most valued company in our industry," said Bob Patel, CEO of LyondellBasell. "While we are certainly proud of all that has been accomplished, our focus remains on executing the strategy that will make us even more competitive in the future."
According to Korn Ferry, who administers the survey for Fortune Magazine, the "World's Most Admired Companies" study surveys top executives and directors from eligible companies, along with financial analysts, to identify the organizations that enjoy the strongest reputations within their own industries and across industries. Survey respondents are asked to evaluate companies in the categories of:
In December, LyondellBasell commemorated the 10-year anniversary of the merger between Basell AF and Lyondell Chemical Company. Since the merger, LyondellBasell has:
More information on Fortune's "World's Most Admired Companies" list can be found here.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named one of the "World's Most Admired Companies" by Fortune Magazine. More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-named-to-fortune-magazines-worlds-most-admired-companies-list-for-the-first-time-300585472.html
SOURCE LyondellBasell
Article Date
1/22/2018LyondellBasell to Discuss Fourth-Quarter Results on Friday, February 2, 2018
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, and LONDON, Jan. 19, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, will announce fourth-quarter 2017 financial results before the U.S. market opens on Friday, February 2 to be followed by a webcast and teleconference to discuss results at 11:00 a.m. EST.
Teleconference and Webcast Details:
Friday, February 2, 2018
11:00 a.m. EST
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers:
United States: 1-800-475-8402
United Kingdom: 0800-279-3953
Netherlands: 0800-020-0428
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EST February 2 until March 5 at 11:59 p.m. EST. The replay dial-in numbers are:
Toll Free: 1-800-677-5199
Toll: 203-369-3133
Passcode: 6549
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
1/19/20181/11/2018 - LyondellBasell Safety Experts Host Global Faculty Workshop to Teach the Teachers About Process Safety
LyondellBasell Safety Experts Host Global Faculty Workshop to Teach the Teachers About Process Safety
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Jan. 11, 2018 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of world's the largest plastics, chemicals and refining companies, has teamed up with the American Institute of Chemical Engineers (AIChE) to teach college professors from around the world about process safety so they can in turn better prepare their students for entering the chemical industry.
Last year, LyondellBasell donated $750,000 to the AIChE Foundation to support the organization's Undergraduate Process Safety Learning Initiative, a multi-pronged initiative that will define how the next generation of chemical engineers are prepared to enter the workforce. The initiative is a global effort and core priority of the AIChE Foundation's Doing a World of Good campaign, which focuses on bringing chemical engineering expertise to bear for the good of society. LyondellBasell is part of the campaign's Founders' Circle and has made a major commitment to the process safety learning initiative.
As part of its sponsorship LyondellBasell hosted an industry-led faculty workshop at its Houston Engineering Center from January 9 to 11, to provide chemical engineering professors the tools and information they need to incorporate safety training into their curriculum to ensure their students graduate with a working knowledge of chemical process safety.
Dan Coombs, LyondellBasell's executive vice president of Global Manufacturing, Projects, Refining and Technology and member of the AIChE Foundation Board of Trustees Corporate Council, reflected on the benefits of the initiative stating, "At LyondellBasell, we work every day to be the best operated company in the industry and that requires an unwavering commitment to safety. The AIChE Foundation's Undergraduate Process Safety Learning Initiative provides the opportunity for our safety experts to actively engage in better preparing faculty members and developing curriculum that will give the next generation of chemical engineers a foundation of excellence in process safety."
More than 30 engineering professors from 16 colleges and universities, including seven Middle Eastern universities, attended the workshop to learn how process safety is put into industrial practice and the importance of process safety to the design and operation of chemical and refining plants. LyondellBasell safety experts led the workshop and reviewed safety best practices and industry case studies with the faculty members. Additionally, visiting professors toured LyondellBasell manufacturing sites to see how process safety solutions are implemented in real life so that these practices can be shared in the classroom.
On behalf of AIChE, Executive Director June Wispelwey expressed her appreciation to LyondellBasell for its generosity and commitment to promoting process safety within the chemical engineering industry. "AIChE and our Center for Chemical Process Safety are grateful for LyondellBasell's demonstration of commitment and stewardship, as we work together to promote the safety of the chemical enterprise and expand the knowledge base of practitioners around the world."
Some of the topics covered in the workshop included loss prevention strategy, hazard identification methods and risk assessment, dispersion and consequence modeling, inherently safe design, and evaluating the availability of safeguards.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
About AIChE
AIChE is a professional society of more than 53,000 chemical engineers in 110 countries. Its members work in corporations, universities and government using their knowledge of chemical processes to develop safe and useful products for the benefit of society. Through its varied programs, AIChE continues to be a focal point for information exchange on the frontier of chemical engineering research in such areas as nanotechnology, sustainability, hydrogen fuels, biological and environmental engineering, and chemical plant safety and security. More information about AIChE is available at www.aiche.org.
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SOURCE LyondellBasell
Article Date
1/11/2018LyondellBasell Honored by American Institute of Chemical Engineers
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Dec. 7, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, was honored by the American Institute of Chemical Engineers (AIChE) for inspiring the next generation of engineers during the 2017 AIChE gala held in New York City. The special recognition commemorates the company's support of students in their pursuit of knowledge in the fields of Science, Technology, Engineering and Math (STEM).
"Our future depends on the next generation of innovative scientists, skilled engineers and highly trained systems operators," said LyondellBasell CEO Bob Patel. "We are proud to support programs that encourage our best and brightest to pursue a career in a sector that is advancing the positive future we know is possible. "
In addition to providing financial and volunteer support to schools working to improve STEM education in the communities where the company operates, LyondellBasell also supports workforce development and job training programs at colleges and universities.
In accepting the award, Mr. Patel reflected on the profound technological advances in the industry and pointed to the exciting career opportunities available due to significant growth in the U.S. chemical sector.
He noted that young engineers are drawn to careers that make a tangible difference in the world, adding that the chemical industry is advancing solutions in modern healthcare, helping to deliver clean water, and reducing emissions by light weighting vehicles.
"This industry is leading the charge in helping to solve some of the world's most daunting challenges," Mr. Patel said. "We have a lot to be proud of."
The AIChE gala raised approximately $450,000 to support programs that strengthen pre-college STEM education and foster a diverse and inclusive engineering profession.
"Attracting and preparing tomorrow's chemical engineers — and promoting an inclusive workforce in which they can all thrive — are essential if we are to successfully respond to global challenges," said AIChE executive director June C. Wispelwey. "Our gala honorees, through their dedication to early-education, are examples to which all employers of engineers should aspire."
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
12/7/2017LyondellBasell and SUEZ Purchase European Plastics Recycling Company
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and ROTTERDAM, Netherlands and PARIS, Nov. 27, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced it has entered into a definitive agreement to purchase a 50 percent stake in Quality Circular Polymers (QCP), a high standard plastics recycling company in Sittard-Geleen, Netherlands. Under the terms of the agreement, LyondellBasell will be a 50 / 50 partner in QCP with SUEZ, a French company specialized in water and waste management.
This transaction marks the first time that a major plastics and chemicals company partners with a leader in resource management to contribute to circular economy objectives.
"As the circular economy increases in prominence and importance, we believe that demand for recycled materials will continue to grow," LyondellBasell CEO Bob Patel and SUEZ CEO Jean-Louis Chaussade said in a joint statement. "This acquisition combines LyondellBasell's European market presence and technical capabilities with SUEZ's ability to collect and recover waste into new materials. We believe that this new venture will provide a strategic platform for future sustainable growth."
QCP was founded in 2014. Its Sittard-Geleen facility, near Maastricht, is capable of converting consumer waste into 35,000 tons of polypropylene (PP) and high-density polyethylene (HDPE) per year starting in 2018.
LyondellBasell will market QCP materials following the completion of the transaction, which is subject to regulatory approval. LyondellBasell and SUEZ are seeking to secure regulatory approval by the end of this year.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
About SUEZ
With 90,000 people on five continents, SUEZ is a world leader in smart and sustainable resource management. We provide water and waste management solutions that enable cities and industries to optimize their resource management and strengthen their environmental and economic performances, in line with regulatory standards. To meet increasing demands to overcome resource quality and scarcity challenges, SUEZ is fully engaged in the resource revolution. With the full potential of digital technologies and innovative solutions, the Group recovers 17 million tons of waste per year and produces 3.9 million tons of secondary raw materials and 7 TWh of local renewable energy. It also secures water resources, delivering wastewater treatment services to 58 million people and reusing 882 million m3 of wastewater. SUEZ generated total revenues of 15.3 billion euros in 2016.
About Quality Circular Polymers
Quality Circular Polymers (QCP) manufactures polymers of high and consistent quality based on used plastics. Reliable supply, integration, leading technologies and innovative recipes enable QCP to push the circular plastics industry to the next level. More information can be found at www.QCPolymers.com.
Forward-Looking Statement
The statements in this release 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 from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to complete the acquisition described or the timing of such transaction; our ability to obtain all necessary regulatory approvals; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. 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, 2016, 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. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell
Article Date
11/27/2017LyondellBasell to Address Citi Basic Materials Conference
Source: PR Newswire
HOUSTON and LONDON, Nov. 21, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that Chief Financial Officer Thomas Aebischer will address investors at the Citi Basic Materials Conference on November 28, 2017 at 2:45 p.m. EST. The conference will take place at The Ritz Carlton Hotel New York, Battery Park.
Webcast and Presentation slides Access
A live webcast can be accessed at the time of the presentation at https://www.lyondellbasell.com/en/investors/investor-events/. A replay of the presentation will be available at the same link one hour after the conclusion of the live event and the webcast replay will expire on February 27, 2018.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
11/21/201711/15/2017 - LyondellBasell Board Authorizes Quarterly Dividend
LyondellBasell Board Authorizes Quarterly Dividend
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, Nov. 15, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that its Supervisory Board has authorized the company's Management Board to declare a dividend of $0.90 per share. The dividend will be paid December 12, 2017 to shareholders of record December 5, 2017 with an ex-dividend date of December 4, 2017.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
11/15/2017LyondellBasell Teams Up with MD Anderson to Help Give Cancer the Boot
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Nov. 13, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, was the presenting sponsor of The University of Texas MD Anderson Cancer Center's second annual Boot Walk to End Cancer® which raised a total of $925,000. More than 5,000 participants wore their favorite pair of boots for a 1.2-mile walk in the heart of the Texas Medical Center. One hundred percent of funds raised from the event will go directly to support cancer research, diagnosis and care.
"Every family has seen a loved one or a friend battle cancer and we are proud to help support MD Anderson's mission to eliminate this disease," said Bob Patel, CEO of LyondellBasell. "By supporting and participating in the Boot Walk, our employees are demonstrating our belief that finding a cure is possible through the power of many."
The event took place at the MD Anderson medical campus in Houston and the route accommodated a diverse group of walkers who wore their favorite pair of boots. Cowboy boots, rain boots, combat boots and many more were seen at the event. Approximately 200 LyondellBasell employees, family members and friends participated in the event, donning their blue Nomex® coveralls and volunteer shirts. Following the walk, a day of activities including entertainment, music and food allowed participants to celebrate their hard work and fundraising efforts.
"It was an honor for LyondellBasell to be a part of this important event and we were especially proud to walk alongside those participants who have survived cancer," said Jeff Bonorden, global director of Health and Medical at LyondellBasell.
"We are thrilled so many people from across the community supported MD Anderson's Boot Walk," said Marshall E. Hicks, M.D., president ad interim of MD Anderson. "We are grateful to our presenting sponsor, LyondellBasell, and its more than 200 employees who joined us this year to give cancer the boot. Their commitment of time and resources is what helps make these type of events such a success in our efforts of making cancer history."
In addition to the Boot Walk, LyondellBasell launched a company-wide "Join the Fight" campaign designed to raise awareness about cancer. The campaign targeted the company's 13,000 global employees, their family members and contractors and provided information about various types of cancer. During the October "Pink Out" employees at the company's 55 manufacturing sites dressed in pink to honor and support those facing breast cancer. Each of the company's sites will distribute false mustaches in November for the "Movember" campaign which encourages employees to show solidarity with men who suffer from prostate and testicular cancer.
LyondellBasell's global philanthropic efforts are focused in the areas of education, health and environment. Over the last three years, the company has supported more than 990 charities around the world, while more than 9,200 employees have donated approximately 40,000 volunteer hours to local community service projects. In 2016, the company's United Way campaign raised approximately $1.7 million for the United Way of Greater Houston and the company remains an active supporter of many other local organizations, including Junior Achievement of Southeast Texas, the Houston Food Bank and Theatre Under the Stars. Earlier this year LyondellBasell enhanced youth ball fields in La Porte, Texas, as part of the company's participation in the Astros Foundation Community Leaders program. The company also supported the Harris County Sheriff's Industrial Unit Deputies, the Houston Police Department and the Houston Fire Department through grants that enabled the purchase of needed safety equipment and specialized training.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. With approximately 4,500 employees in the Houston area, LyondellBasell is one of the largest employers in the region. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
11/13/201710/27/2017 - LyondellBasell Reports Third Quarter 2017 Earnings
LyondellBasell Reports Third Quarter 2017 Earnings
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and LONDON, Oct. 27, 2017 /PRNewswire/ --
Third Quarter 2017 Highlights
Comparisons with the prior quarter and third quarter 2016 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) |
2017 |
2017 |
2016 |
2017 |
2016 | ||||
|
Sales and other operating revenues |
$8,516 |
$8,403 |
$7,365 |
$25,349 |
$21,436 | ||||
|
Net income(a) |
1,056 |
1,130 |
953 |
2,983 |
3,074 | ||||
|
Income from continuing operations(b) |
1,058 |
1,134 |
955 |
2,997 |
3,077 | ||||
|
Diluted earnings per share (U.S. dollars): |
|||||||||
|
Net income(c) |
2.67 |
2.81 |
2.30 |
7.46 |
7.23 | ||||
|
Income from continuing operations(b) |
2.67 |
2.82 |
2.31 |
7.49 |
7.24 | ||||
|
Diluted share count (millions) |
395 |
402 |
414 |
400 |
424 | ||||
|
EBITDA(d) |
1,821 |
1,970 |
1,606 |
5,408 |
5,196 | ||||
|
(a) |
Includes net (income) loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 10. |
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. |
|
(c) |
Includes diluted earnings (loss) 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. |
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2017 of $1.1 billion, or $2.67 per share. In September, LyondellBasell's interest in the Geosel pipeline and storage system in France was sold for an after-tax gain of $103 million that increased third quarter earnings by $0.26 per share. Third quarter 2017 EBITDA was $1.8 billion.
"LyondellBasell's portfolio of global businesses demonstrated strong performance in the third quarter with EBITDA in our Intermediates and Derivatives segment improving by more than 30% relative to the third quarter of 2016 and continued strong results from our Olefins and Polyolefins – Europe, Asia and International segment," said Bob Patel, LyondellBasell CEO.
"On the U.S. Gulf Coast, our commitment to hurricane preparedness enabled safe plant operations during Hurricane Harvey. We are deeply grateful for the selfless dedication and commitment of our employees toward both restoring our businesses and supporting our communities during this unprecedented storm. We estimate that lost sales volumes valued at third quarter margins and additional related costs due to the storm impacted third quarter results by approximately $200 million. Margin improvements during September provided a partial offset to the lost production and higher costs," Patel said.
"During the third quarter, LyondellBasell advanced our growth strategy by opening a new polypropylene compounds plant in China and reaching final investment decision for our next propylene oxide (PO) plant while generating approximately $1.5 billion of cash flow from operating activity and returning $652 million to shareholders. With Standard & Poor's raising our senior unsecured debt to BBB+, the rating on our long-term debt now matches our strong corporate investment-grade credit ratings," said Patel.
OUTLOOK
"Hurricane Harvey reduced inventories across the petrochemical industry and contributed to further delays in the startup of new U.S. ethylene and derivative capacity. As the industry works to rebuild inventories during the fourth quarter, we expect global markets will remain tight to balanced for the remainder of 2017 and the industry will be better positioned to absorb capacity additions during 2018," 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 and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
Olefins and Polyolefins - Americas (O&P-Americas) – Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
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 |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$497 |
$738 |
$582 |
$1,794 |
$1,935 |
||
|
EBITDA |
616 |
859 |
682 |
2,198 |
2,314 |
||
Three months ended September 30, 2017 versus three months ended June 30, 2017 – EBITDA decreased $243 million versus the second quarter 2017. Compared to the prior period, olefin results declined approximately $260 million. Ethylene margins fell approximately 5 cents per pound primarily due to increasing feedstock prices. Sales volumes also declined due to production outages related to Hurricane Harvey. Combined polyolefin results were relatively unchanged. Improvements in polyethylene volume and polyethylene spreads over ethylene were offset by reduced volumes in polypropylene combined with polypropylene prices lagging propylene price increases. Joint venture equity income decreased by $3 million.
Three months ended September 30, 2017 versus three months ended September 30, 2016 – EBITDA decreased $66 million versus the third quarter 2016. Olefin results declined approximately $130 million primarily due to a decrease in ethylene margin from reduced ethylene price and increased feedstock costs. Net ethylene production increased 8 percent due to planned maintenance and expansion in the third quarter 2016 at Corpus Christi and planned maintenance at Morris which exceeded the Harvey volume impacts in the third quarter 2017. Combined polyolefin results increased approximately $40 million primarily due to a polyethylene spread improvement over ethylene of approximately 5 cents per pound. Joint venture equity income declined by $4 million.
Olefins and Polyolefins - Europe, Asia, and International (O&P-EAI) – Our O&P–EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
|
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 |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$460 |
$549 |
$447 |
$1,410 |
$1,228 |
||
|
EBITDA |
698 |
699 |
584 |
1,926 |
1,669 |
||
Three months ended September 30, 2017 versus three months ended June 30, 2017 – EBITDA decreased by $1 million versus the second quarter 2017. The third quarter benefited $108 million from the sale of LyondellBasell's interest in Geosel. Olefin results decreased approximately $100 million primarily due to declining co-product prices. Combined polyolefin results decreased approximately $10 million with reduced margins partially offset by increased volume. Joint venture equity income was relatively unchanged.
Three months ended September 30, 2017 versus three months ended September 30, 2016 – EBITDA increased by $114 million versus the third quarter 2016. The third quarter 2017 benefited $108 million from the sale of LyondellBasell's interest in Geosel. Third quarter 2016 included an $11 million benefit from the restructuring of Asian polypropylene joint ventures and the sale of Australian polypropylene assets. Olefin results decreased by approximately $15 million as higher feedstock prices led to declining ethylene margins. Combined polyolefin results increased by approximately $10 million with increased sales volumes partially offset by declining polyethylene spreads. Joint venture equity income was relatively unchanged.
Intermediates and Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
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 |
2017 |
2017 |
2016 |
2017 |
2016 |
|
|
Operating income |
$329 |
$270 |
$240 |
$868 |
$822 |
|
|
EBITDA |
402 |
339 |
304 |
1,080 |
1,027 |
|
Three months ended September 30, 2017 versus three months ended June 30, 2017 – EBITDA increased $63 million versus the second quarter 2017. PO and derivatives results increased approximately $25 million. Volumes improved resulting from the completion of planned maintenance at our plant in Botlek, The Netherlands in the second quarter which were partially offset by production losses in the third quarter due to Hurricane Harvey. Intermediate chemicals results increased approximately $15 million, primarily due to a 2 cent per pound improvement in styrene margins. Volumes declined for most intermediate chemicals except for an increase in methanol volumes due to the completion of second quarter planned maintenance. Oxyfuels and related products results increased by approximately $25 million primarily due to increased volumes from the completion of planned maintenance at Botlek. Joint venture equity income increased by $4 million.
Three months ended September 30, 2017 versus three months ended September 30, 2016 – EBITDA increased $98 million versus the third quarter 2016. PO and derivatives results increased by approximately $35 million as both margins and volumes improved. Intermediate chemicals results increased by approximately $85 million primarily due to margin improvements in styrene, methanol and ethylene glycol which more than offset volume declines related to Hurricane Harvey. Oxyfuels and related products results declined by approximately $20 million primarily due to hurricane related production losses. Joint venture equity income was relatively unchanged.
Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.
|
Table 5 - Refining Financial Overview |
||||||
|
Three Months Ended |
Nine Months Ended |
|||||
|
September 30, |
June 30, |
September 30, |
September 30, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
|
|
Operating loss |
$10 |
($21) |
($56) |
($81) |
($139) |
|
|
EBITDA |
58 |
25 |
(10) |
53 |
(9) |
|
Three months ended September 30, 2017 versus three months ended June 30, 2017 – EBITDA increased $33 million versus the second quarter 2017. The Houston refinery operated at 240,000 barrels per day, 25,000 barrels per day less than the prior quarter due to reduced rates as a result of Hurricane Harvey. A $2.27 increase in the Maya 2-1-1 to $21.81 was partially offset by unfavorable heavy to light differentials on by-product margins.
Three months ended September 30, 2017 versus three months ended September 30, 2016 – EBITDA increased $68 million versus the third quarter 2016. Third quarter 2017 throughput increased by 31,000 barrels per day with operational disruptions in the third quarter of 2016 exceeding reduced rates in the third quarter 2017 due to Hurricane Harvey. A $2.83 increase in the Maya 2-1-1 to $21.81 was partially offset by unfavorable heavy to light differentials on by-product margins.
Technology Segment – Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
Table 6 - Technology Financial Overview |
|||||||
|
Three Months Ended |
Nine Months Ended |
||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
||||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$36 |
$39 |
$35 |
$125 |
$170 |
||
|
EBITDA |
47 |
48 |
45 |
155 |
201 |
||
Three months ended September 30, 2017 versus three months ended June 30, 2017 – EBITDA decreased by $1 million versus the second quarter 2017.
Three months ended September 30, 2017 versus three months ended September 30, 2016 – EBITDA increased by $2 million versus the third quarter 2016.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $318 million during the third quarter 2017. Our cash and liquid investment balance was $3.1 billion at September 30, 2017. We repurchased 3.1 million shares during the third quarter 2017, leaving 394 million common shares outstanding as of September 30, 2017. The company paid dividends of $356 million during the third quarter of 2017.
CONFERENCE CALL
LyondellBasell will host a conference call October 27 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. 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 6934553.
The slides and webcast that accompany the call will be available at www.lyb.com/earnings.
A replay of the call will be available from 2 p.m. EDT October 27 until November 27 at 11:59 p.m. EST. The replay dial-in numbers are 866-448-2572 (U.S.) and 203-369-1168 (international). The pass code for each is 2526.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
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.
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.
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) | ||||||||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||||
|
Sales and other operating revenues: |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,115 |
$ |
2,211 |
$ |
2,342 |
$ |
2,409 |
$ |
9,077 |
$ |
2,604 |
$ |
2,547 |
$ |
2,449 |
$ |
7,600 | ||||||||||||
|
Olefins & Polyolefins - EAI |
2,578 |
2,721 |
2,634 |
2,646 |
10,579 |
3,024 |
3,008 |
3,152 |
9,184 | |||||||||||||||||||||
|
Intermediates & Derivatives |
1,702 |
1,769 |
1,805 |
1,950 |
7,226 |
2,150 |
2,014 |
2,077 |
6,241 | |||||||||||||||||||||
|
Refining |
955 |
1,289 |
1,330 |
1,561 |
5,135 |
1,353 |
1,713 |
1,670 |
4,736 | |||||||||||||||||||||
|
Technology |
132 |
129 |
102 |
116 |
479 |
120 |
107 |
98 |
325 | |||||||||||||||||||||
|
Other/elims |
(739) |
(791) |
(848) |
(935) |
(3,313) |
(821) |
(986) |
(930) |
(2,737) | |||||||||||||||||||||
|
Continuing Operations |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
$ |
8,403 |
$ |
8,516 |
$ |
25,349 | ||||||||||||
|
Operating income (loss): |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
707 |
$ |
646 |
$ |
582 |
$ |
458 |
$ |
2,393 |
$ |
559 |
$ |
738 |
$ |
497 |
$ |
1,794 | ||||||||||||
|
Olefins & Polyolefins - EAI |
358 |
423 |
447 |
266 |
1,494 |
401 |
549 |
460 |
1,410 | |||||||||||||||||||||
|
Intermediates & Derivatives |
255 |
327 |
240 |
236 |
1,058 |
269 |
270 |
329 |
868 | |||||||||||||||||||||
|
Refining |
(30) |
(53) |
(56) |
40 |
(99) |
(70) |
(21) |
10 |
(81) | |||||||||||||||||||||
|
Technology |
73 |
62 |
35 |
51 |
221 |
50 |
39 |
36 |
125 | |||||||||||||||||||||
|
Other |
(3) |
(2) |
1 |
(3) |
(7) |
1 |
2 |
- - |
3 | |||||||||||||||||||||
|
Continuing Operations |
$ |
1,360 |
$ |
1,403 |
$ |
1,249 |
$ |
1,048 |
$ |
5,060 |
$ |
1,210 |
$ |
1,577 |
$ |
1,332 |
$ |
4,119 | ||||||||||||
|
Depreciation and amortization: |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
90 |
$ |
88 |
$ |
87 |
$ |
97 |
$ |
362 |
$ |
118 |
$ |
107 |
$ |
105 |
$ |
330 | ||||||||||||
|
Olefins & Polyolefins - EAI |
55 |
58 |
58 |
58 |
229 |
59 |
58 |
60 |
177 | |||||||||||||||||||||
|
Intermediates & Derivatives |
70 |
69 |
62 |
68 |
269 |
69 |
68 |
69 |
206 | |||||||||||||||||||||
|
Refining |
43 |
40 |
40 |
40 |
163 |
40 |
44 |
49 |
133 | |||||||||||||||||||||
|
Technology |
10 |
11 |
10 |
10 |
41 |
10 |
9 |
11 |
30 | |||||||||||||||||||||
|
Continuing Operations |
$ |
268 |
$ |
266 |
$ |
257 |
$ |
273 |
$ |
1,064 |
$ |
296 |
$ |
286 |
$ |
294 |
$ |
876 | ||||||||||||
|
EBITDA: (b) |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
878 |
$ |
754 |
$ |
682 |
$ |
563 |
$ |
2,877 |
$ |
723 |
$ |
859 |
$ |
616 |
$ |
2,198 | ||||||||||||
|
Olefins & Polyolefins - EAI |
509 |
576 |
584 |
398 |
2,067 |
529 |
699 |
698 |
1,926 | |||||||||||||||||||||
|
Intermediates & Derivatives |
326 |
397 |
304 |
306 |
1,333 |
339 |
339 |
402 |
1,080 | |||||||||||||||||||||
|
Refining |
14 |
(13) |
(10) |
81 |
72 |
(30) |
25 |
58 |
53 | |||||||||||||||||||||
|
Technology |
83 |
73 |
45 |
61 |
262 |
60 |
48 |
47 |
155 | |||||||||||||||||||||
|
Other |
(3) |
(4) |
1 |
(3) |
(9) |
(4) |
- - |
- - |
(4) | |||||||||||||||||||||
|
Continuing Operations |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
5,408 | ||||||||||||
|
Capital, turnarounds and IT deferred spending: |
||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
303 |
$ |
339 |
$ |
384 |
$ |
350 |
$ |
1,376 |
$ |
202 |
$ |
179 |
$ |
165 |
$ |
546 | ||||||||||||
|
Olefins & Polyolefins - EAI |
81 |
60 |
48 |
72 |
261 |
47 |
32 |
44 |
123 | |||||||||||||||||||||
|
Intermediates & Derivatives |
76 |
80 |
90 |
87 |
333 |
77 |
107 |
79 |
263 | |||||||||||||||||||||
|
Refining |
57 |
71 |
51 |
45 |
224 |
84 |
79 |
21 |
184 | |||||||||||||||||||||
|
Technology |
6 |
9 |
9 |
12 |
36 |
7 |
6 |
8 |
21 | |||||||||||||||||||||
|
Other |
4 |
4 |
4 |
1 |
13 |
4 |
4 |
1 |
9 | |||||||||||||||||||||
|
Continuing Operations |
$ |
527 |
$ |
563 |
$ |
586 |
$ |
567 |
$ |
2,243 |
$ |
421 |
$ |
407 |
$ |
318 |
$ |
1,146 | ||||||||||||
|
(a) |
EBITDA for the first quarter of 2016 includes a pre-tax lower of cost or market inventory valuation ("LCM") charge of $68 million and a $78 million pre-tax-gain on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 EBITDA also includes a pre-tax LCM charge of $29 million. | ||||||||||||||||||||||||||||
|
(b) |
See Table 8 for EBITDA calculation. | ||||||||||||||||||||||||||||
|
Table 8 - EBITDA Calculation | ||||||||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||||
|
Net income(a) |
$ |
1,030 |
$ |
1,091 |
$ |
953 |
$ |
763 |
$ |
3,837 |
$ |
797 |
$ |
1,130 |
$ |
1,056 |
$ |
2,983 | ||||||||||||
|
Loss from discontinued operations, net of tax |
- - |
1 |
2 |
7 |
10 |
8 |
4 |
2 |
14 | |||||||||||||||||||||
|
Income from continuing operations(a) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
1,134 |
1,058 |
2,997 | |||||||||||||||||||||
|
Provision for income taxes |
432 |
346 |
326 |
282 |
1,386 |
315 |
459 |
380 |
1,154 | |||||||||||||||||||||
|
Depreciation and amortization |
268 |
266 |
257 |
273 |
1,064 |
296 |
286 |
294 |
876 | |||||||||||||||||||||
|
Interest expense, net(b) |
77 |
79 |
68 |
81 |
305 |
201 |
91 |
89 |
381 | |||||||||||||||||||||
|
EBITDA(c) |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
$ |
1,970 |
$ |
1,821 |
$ |
5,408 | ||||||||||||
|
(a) |
The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 also includes an $18 million after-tax LCM charge. The third quarter of 2017 includes an after-tax gain of $103 million on the sale of our interest in Geosel. | |||||||||||||||||||||||||||||
|
(b) |
Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. | |||||||||||||||||||||||||||||
|
(c) |
The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. Fourth quarter 2016 also includes a pre-tax LCM charge of $29 million. Third quarter 2017 EBITDA includes a pre-tax gain of $108 million on the sale of our interest in Geosel. | |||||||||||||||||||||||||||||
|
Table 9 - Selected Segment Operating Information | |||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||
|
Olefins and Polyolefins - Americas |
|||||||||||||||||||||
|
Volumes (million pounds) |
|||||||||||||||||||||
|
Ethylene produced |
2,392 |
1,899 |
1,939 |
2,173 |
8,403 |
2,486 |
2,606 |
2,088 |
7,180 | ||||||||||||
|
Propylene produced |
832 |
748 |
575 |
660 |
2,815 |
597 |
821 |
671 |
2,089 | ||||||||||||
|
Polyethylene sold |
1,554 |
1,426 |
1,517 |
1,485 |
5,982 |
1,533 |
1,404 |
1,454 |
4,391 | ||||||||||||
|
Polypropylene sold |
612 |
582 |
659 |
623 |
2,476 |
644 |
634 |
624 |
1,902 | ||||||||||||
|
Benchmark Market Prices |
|||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
33.63 |
46.01 |
44.94 |
49.29 |
43.56 |
51.78 |
48.15 |
48.20 |
49.36 | ||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
35.34 |
47.39 |
46.52 |
50.60 |
45.03 |
53.39 |
50.17 |
51.67 |
51.73 | ||||||||||||
|
Houston Ship Channel natural gas (USD per million BTUs) |
1.93 |
2.06 |
2.79 |
3.01 |
2.45 |
2.96 |
3.14 |
2.92 |
3.01 | ||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
9.8 |
12.0 |
10.6 |
14.3 |
11.7 |
11.8 |
12.5 |
16.1 |
13.5 | ||||||||||||
|
U.S. ethylene (cents/pound) |
26.7 |
30.3 |
33.0 |
32.7 |
30.7 |
33.1 |
31.9 |
31.9 |
32.3 | ||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
52.3 |
59.0 |
60.7 |
58.3 |
57.6 |
57.3 |
59.0 |
60.7 |
59.0 | ||||||||||||
|
U.S. propylene (cents/pound) |
31.0 |
32.7 |
37.8 |
36.2 |
34.4 |
47.2 |
41.0 |
41.7 |
43.3 | ||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.8 |
61.7 |
60.2 |
55.8 |
61.4 |
66.2 |
59.0 |
60.2 |
61.8 | ||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
|||||||||||||||||||||
|
Volumes (million pounds) |
|||||||||||||||||||||
|
Ethylene produced |
950 |
941 |
1,066 |
946 |
3,903 |
1,022 |
1,069 |
1,046 |
3,137 | ||||||||||||
|
Propylene produced |
555 |
577 |
649 |
563 |
2,344 |
598 |
632 |
620 |
1,850 | ||||||||||||
|
Polyethylene sold |
1,434 |
1,386 |
1,315 |
1,330 |
5,465 |
1,421 |
1,370 |
1,525 |
4,316 | ||||||||||||
|
Polypropylene sold |
1,773 |
1,617 |
1,509 |
1,582 |
6,481 |
1,714 |
1,530 |
1,738 |
4,982 | ||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
|||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
16.3 |
21.2 |
17.9 |
23.8 |
19.8 |
22.7 |
17.6 |
18.9 |
19.7 | ||||||||||||
|
Western Europe ethylene |
38.4 |
41.1 |
42.3 |
43.1 |
41.2 |
46.2 |
47.1 |
44.2 |
45.8 | ||||||||||||
|
Western Europe polyethylene [high density] |
55.4 |
57.6 |
55.7 |
55.2 |
56.0 |
58.2 |
59.5 |
56.6 |
58.1 | ||||||||||||
|
Western Europe propylene |
26.3 |
28.8 |
30.7 |
33.3 |
29.8 |
37.0 |
39.3 |
36.4 |
37.6 | ||||||||||||
|
Western Europe polypropylene [homopolymer] |
46.5 |
49.5 |
49.5 |
51.7 |
49.3 |
56.3 |
60.1 |
57.4 |
58.0 | ||||||||||||
|
Intermediates and Derivatives |
|||||||||||||||||||||
|
Volumes (million pounds unless otherwise indicated) |
|||||||||||||||||||||
|
Propylene oxide and derivatives |
793 |
743 |
752 |
749 |
3,037 |
786 |
748 |
793 |
2,327 | ||||||||||||
|
Intermediate Chemicals: |
|||||||||||||||||||||
|
Ethylene oxide and derivatives |
301 |
233 |
224 |
329 |
1,087 |
292 |
297 |
275 |
864 | ||||||||||||
|
Styrene monomer |
917 |
933 |
911 |
933 |
3,694 |
992 |
924 |
845 |
2,761 | ||||||||||||
|
Acetyls |
702 |
821 |
751 |
776 |
3,050 |
825 |
672 |
715 |
2,212 | ||||||||||||
|
Oxyfuels and Related Products: |
|||||||||||||||||||||
|
TBA Intermediates |
415 |
391 |
410 |
361 |
1,577 |
383 |
332 |
359 |
1,074 | ||||||||||||
|
MTBE/ETBE (million gallons) |
270 |
278 |
298 |
264 |
1,110 |
239 |
263 |
289 |
791 | ||||||||||||
|
Benchmark Market Margins (cents per gallon) |
|||||||||||||||||||||
|
MTBE - Northwest Europe |
44.4 |
78.7 |
55.3 |
50.6 |
57.2 |
49.5 |
67.3 |
59.8 |
58.6 | ||||||||||||
|
Refining |
|||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
|||||||||||||||||||||
|
Heavy crude oil processing rate |
186 |
183 |
209 |
228 |
201 |
193 |
265 |
240 |
233 | ||||||||||||
|
Benchmark Market Margins |
|||||||||||||||||||||
|
Light crude oil - 2-1-1 |
8.67 |
11.52 |
11.46 |
11.20 |
10.73 |
11.86 |
13.26 |
16.71 |
13.94 | ||||||||||||
|
Light crude oil - Maya differential |
9.19 |
9.55 |
7.52 |
7.80 |
8.51 |
8.78 |
6.28 |
5.10 |
6.71 | ||||||||||||
|
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 | ||||||||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||||
|
Sales and other operating revenues |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
$ |
8,403 |
$ |
8,516 |
$ |
25,349 | ||||||||||||
|
Cost of sales(a) |
5,166 |
5,702 |
5,903 |
6,420 |
23,191 |
6,991 |
6,601 |
6,939 |
20,531 | |||||||||||||||||||||
|
Selling, general and administrative expenses |
193 |
199 |
188 |
253 |
833 |
204 |
200 |
218 |
622 | |||||||||||||||||||||
|
Research and development expenses |
24 |
24 |
25 |
26 |
99 |
25 |
25 |
27 |
77 | |||||||||||||||||||||
|
Operating income(a) |
1,360 |
1,403 |
1,249 |
1,048 |
5,060 |
1,210 |
1,577 |
1,332 |
4,119 | |||||||||||||||||||||
|
Income from equity investments |
91 |
117 |
81 |
78 |
367 |
81 |
78 |
81 |
240 | |||||||||||||||||||||
|
Interest expense, net(b) |
(77) |
(79) |
(68) |
(81) |
(305) |
(201) |
(91) |
(89) |
(381) | |||||||||||||||||||||
|
Other income (expense), net(c) |
88 |
(3) |
19 |
7 |
111 |
30 |
29 |
114 |
173 | |||||||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) (c) |
1,462 |
1,438 |
1,281 |
1,052 |
5,233 |
1,120 |
1,593 |
1,438 |
4,151 | |||||||||||||||||||||
|
Provision for income taxes |
432 |
346 |
326 |
282 |
1,386 |
315 |
459 |
380 |
1,154 | |||||||||||||||||||||
|
Income from continuing operations(d) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
1,134 |
1,058 |
2,997 | |||||||||||||||||||||
|
Loss from discontinued operations, net of tax |
- - |
(1) |
(2) |
(7) |
(10) |
(8) |
(4) |
(2) |
(14) | |||||||||||||||||||||
|
Net income(d) |
1,030 |
1,091 |
953 |
763 |
3,837 |
797 |
1,130 |
1,056 |
2,983 | |||||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
- - |
- - |
(1) |
- - |
(1) |
- - |
1 |
1 |
2 | |||||||||||||||||||||
|
Net income attributable to the Company shareholders(d) |
$ |
1,030 |
$ |
1,091 |
$ |
952 |
$ |
763 |
$ |
3,836 |
$ |
797 |
$ |
1,131 |
$ |
1,057 |
$ |
2,985 | ||||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $68 million and $29 million in the first and fourth quarters of 2016, respectively. A pre-tax benefit of | |||||||||||||||||||||||||||||
|
(b) |
Includes pre-tax charges totaling $113 million in the first quarter of 2017 related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. | |||||||||||||||||||||||||||||
|
(c) |
Includes a $78 million gain in the first quarter of 2016 on the sale of our wholly owned Argentine subsidiary; a pre-tax gain of $31 million in the first quarter of 2017 on the sale of our Lake Charles, Louisiana site currently used as a logistics terminal; and a pre-tax gain of $108 million in the third quarter of 2017 on the sale of our interest in Geosel. | |||||||||||||||||||||||||||||
|
(d) |
Amounts presented herein include after-tax LCM charges of $47 million and $18 million in the first and fourth quarters of 2016, respectively. The second quarter of 2016 includes an after-tax benefit of $47 million for the partial reversal of the first quarter 2016 LCM adjustment resulting from price recoveries during the period. The first quarter of 2016 also includes a $78 million gain on the sale of our wholly owned Argentine subsidiary. The first quarter of 2017 includes after-tax charges totaling $106 million related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. The third quarter of 2017 includes a $103 million after-tax gain for sale of our interest in Geosel. | |||||||||||||||||||||||||||||
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations |
|||||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||||
|
Annual |
|||||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Impact |
Q1 |
Q2 |
Q3 |
YTD | ||||||||||||||||||
|
Pretax charges (benefits): |
|||||||||||||||||||||||||||
|
Charges and premiums related to repayment of debt |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
113 |
$ |
- - |
$ |
- - |
$ |
113 | |||||||||
|
Out of period tax adjustment |
- - |
- - |
- - |
61 |
74 |
- - |
- - |
- - |
- - | ||||||||||||||||||
|
Gain on sale of wholly owned subsidiary |
(78) |
- - |
- - |
- - |
(78) |
- - |
- - |
- - |
- - | ||||||||||||||||||
|
Lower of cost or market inventory adjustment |
68 |
(68) |
- - |
29 |
29 |
- - |
- - |
- - |
- - | ||||||||||||||||||
|
Pension settlement charge |
- - |
- - |
- - |
58 |
58 |
- - |
- - |
- - |
- - | ||||||||||||||||||
|
Gain on sale of Geosel |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
(108) |
(108) | ||||||||||||||||||
|
Total pretax charges (benefits) |
(10) |
(68) |
- - |
148 |
83 |
113 |
- - |
(108) |
5 | ||||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(21) |
21 |
- - |
(32) |
(32) |
(7) |
- - |
5 |
(2) | ||||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
(31) |
$ |
(47) |
$ |
- - |
$ |
116 |
$ |
51 |
$ |
106 |
$ |
- - |
$ |
(103) |
$ |
3 | |||||||||
|
Effect on diluted earnings per share |
$ |
0.07 |
$ |
0.11 |
$ |
- - |
$ |
(0.29) |
$ |
(0.12) |
$ |
(0.26) |
$ |
- - |
$ |
0.26 |
$ |
(0.01) | |||||||||
|
Table 12 - Unaudited Cash Flow Information | ||||||||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||||
|
Net cash provided by operating activities(a) |
$ |
1,300 |
$ |
1,261 |
$ |
1,332 |
$ |
1,713 |
$ |
5,606 |
$ |
678 |
$ |
1,560 |
$ |
1,486 |
$ |
3,724 | ||||||||||||
|
Net cash used in investing activities(b) |
(600) |
(471) |
(459) |
(771) |
(2,301) |
(541) |
(513) |
(200) |
(1,254) | |||||||||||||||||||||
|
Net cash used in financing activities (a) |
(333) |
(1,039) |
(1,195) |
(782) |
(3,349) |
(537) |
(822) |
(832) |
(2,191) | |||||||||||||||||||||
|
(a) |
In the second quarter of 2017, the early adoption of ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments resulted in the reclassification of cash flows related to debt extinguishment costs incurred in the first quarter of 2017 from operating to financing activities cash flows. | |||||||||||||||||||||||||||||
|
(b) |
Also in the second quarter of 2017, the early retrospective adoption of ASU 2016-18, Statement of Cash Flows: Restricted Cash requires the inclusion of restricted cash and restricted cash equivalents in the cash and cash equivalents balances in our Statements of Cash Flows. | |||||||||||||||||||||||||||||
|
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) |
2016 |
2016 |
2016 |
2016 |
2017 |
2017 |
2017 | |||||||||||||||||||
|
Cash and cash equivalents |
$ |
1,318 |
$ |
1,060 |
$ |
740 |
$ |
875 |
$ |
485 |
$ |
734 |
$ |
1,204 | ||||||||||||
|
Restricted cash |
4 |
4 |
4 |
3 |
1 |
6 |
7 | |||||||||||||||||||
|
Short-term investments |
1,332 |
1,023 |
1,090 |
1,147 |
1,176 |
1,278 |
1,295 | |||||||||||||||||||
|
Accounts receivable, net |
2,683 |
2,806 |
2,852 |
2,842 |
3,292 |
3,086 |
3,275 | |||||||||||||||||||
|
Inventories |
3,978 |
4,009 |
4,015 |
3,809 |
3,875 |
4,007 |
4,177 | |||||||||||||||||||
|
Prepaid expenses and other current assets |
1,009 |
1,081 |
852 |
923 |
852 |
964 |
1,104 | |||||||||||||||||||
|
Total current assets |
10,324 |
9,983 |
9,553 |
9,599 |
9,681 |
10,075 |
11,062 | |||||||||||||||||||
|
Property, plant and equipment, net |
9,373 |
9,681 |
10,057 |
10,137 |
10,361 |
10,551 |
10,737 | |||||||||||||||||||
|
Investments and long-term receivables: |
||||||||||||||||||||||||||
|
Investment in PO joint ventures |
398 |
390 |
399 |
415 |
409 |
423 |
428 | |||||||||||||||||||
|
Equity investments |
1,734 |
1,610 |
1,681 |
1,575 |
1,672 |
1,595 |
1,644 | |||||||||||||||||||
|
Other investments and long-term receivables |
18 |
18 |
17 |
20 |
20 |
18 |
19 | |||||||||||||||||||
|
Goodwill |
548 |
542 |
543 |
528 |
531 |
559 |
570 | |||||||||||||||||||
|
Intangible assets, net |
618 |
588 |
562 |
550 |
517 |
499 |
480 | |||||||||||||||||||
|
Other assets |
559 |
623 |
607 |
618 |
577 |
398 |
303 | |||||||||||||||||||
|
Total assets |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
$ |
24,118 |
$ |
25,243 | ||||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
2 |
$ |
2 |
$ |
2 |
$ |
3 | ||||||||||||
|
Short-term debt |
594 |
616 |
621 |
594 |
611 |
561 |
381 | |||||||||||||||||||
|
Accounts payable |
2,243 |
2,357 |
2,329 |
2,529 |
2,627 |
2,317 |
2,735 | |||||||||||||||||||
|
Accrued liabilities |
1,600 |
1,374 |
1,357 |
1,415 |
1,139 |
1,251 |
1,493 | |||||||||||||||||||
|
Total current liabilities |
4,441 |
4,351 |
4,310 |
4,540 |
4,379 |
4,131 |
4,612 | |||||||||||||||||||
|
Long-term debt |
8,504 |
8,485 |
8,464 |
8,385 |
8,419 |
8,496 |
8,531 | |||||||||||||||||||
|
Other liabilities |
2,125 |
2,143 |
2,151 |
2,113 |
2,130 |
2,253 |
2,326 | |||||||||||||||||||
|
Deferred income taxes |
2,134 |
2,149 |
2,387 |
2,331 |
2,353 |
2,370 |
2,447 | |||||||||||||||||||
|
Stockholders' equity |
6,344 |
6,283 |
6,082 |
6,048 |
6,462 |
6,866 |
7,326 | |||||||||||||||||||
|
Non-controlling interests |
24 |
24 |
25 |
25 |
25 |
2 |
1 | |||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
$ |
24,118 |
$ |
25,243 | ||||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-reports-third-quarter-2017-earnings-300544726.html
SOURCE LyondellBasell Industries
Article Date
10/27/201710/23/2017 - Darleen Caron named Executive Vice President and Chief Human Resources Officer of LyondellBasell
Darleen Caron named Executive Vice President and Chief Human Resources Officer of LyondellBasell
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON and ROTTERDAM, Netherlands, Oct. 23, 2017 /PRNewswire/ -- LyondellBasell (NYSE:LYB), one of the largest plastics, chemicals and refining companies in the world, today announced the appointment of Darleen Caron as executive vice president and chief human resources officer.
"Darleen's track record of leading global HR functions, combined with her ability to design and implement strategic programs enabling business objectives make her a terrific fit for this role," said Bob Patel, CEO of LyondellBasell. "As we look to the future, I firmly believe a world-class HR function is key to strengthening our already outstanding team around the globe."
Most recently, Ms. Caron was executive vice president of global human resources for SNC-Lavalin, Inc. Previously, she led HR functions for the Dow Chemical Company and ABB, and both HR and environment, safety and health for Alcan.
Ms. Caron holds a BBA from the Université du Québec à Montréal. She will join the company Monday, Oct. 30, 2017.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
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 EBITDA. 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. 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. 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. 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.
View original content with multimedia:http://www.prnewswire.com/news-releases/darleen-caron-named-executive-vice-president-and-chief-human-resources-officer-of-lyondellbasell-300541396.html
SOURCE LyondellBasell
Article Date
10/23/2017LyondellBasell to Discuss Third-Quarter Results on Friday, October 27, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Oct. 13, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce third-quarter 2017 financial results before the U.S. market opens on Friday, October 27 to be followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details:
Friday, October 27, 2017
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers:
United States: 800-475-8402
United Kingdom: 0800-279-3953
Netherlands: 0800-020-0428
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EDT October 27 until November 27 at 11:59 p.m. EDT.
The replay dial-in numbers are:
Toll Free: 866-448-2572
Toll: 203-369-1168
Passcode: 2526
About LyondellBasell:
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-to-discuss-third-quarter-results-on-friday-october-27-2017-300536266.html
SOURCE LyondellBasell
Article Date
10/13/20179/27/2017 - LyondellBasell Introduces New Brand Identity
LyondellBasell Introduces New Brand Identity
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and ROTTERDAM, Netherlands, Sept. 27, 2017 /PRNewswire/ -- LyondellBasell (NYSE:LYB), one of the largest plastics, chemicals and refining companies in the world, today announced the introduction of its new global brand and tagline, "LyondellBasell: Advancing Possible."
Designed to communicate the many ways LyondellBasell technology, products and materials are critical to advancing solutions across nearly every sector of the global economy, the introduction of Advancing Possible coincides with the 10-year anniversary of the merger between Basell AF and Lyondell Chemical Company.
"There's never been a more exciting time to be an employee of LyondellBasell. As we get ready to celebrate our 10th birthday in December, our new brand honors our proud history of developing and delivering products that have changed the world for the better and the spirit of possibility that our employees around the globe demonstrate every single day," said Bob Patel, CEO of LyondellBasell. "As we look to the next 10 years, our goal is to further connect with our customers and other stakeholders by communicating our passion for helping our customers meet the challenges of today, while advancing innovations that will improve our world for future generations."
Advancing Possible was developed by the company's corporate communications team following significant research among a wide variety of stakeholders. To support the introduction of the new brand, the company has launched a website, www.AdvancingPossible.com, and is running advertising in industry-focused print and digital platforms including IHS Chemical Week, Plastics News, ICIS Chemical Business and the American Chemistry Council's SmartBrief.
"After significant research with our key stakeholders, we wanted to develop a unifying approach that is true to who we are as a company but also differentiates us from others in our industry space," said Michael Waldron, Vice President of global corporate communications. "From a strategic perspective, we wanted to ensure that the brand is flexible enough to support today's incredibly diverse product portfolio while also providing some room to grow in the future. Advancing Possible is larger than just us. It elevates our unique value proposition and the many ways our products, materials and technologies are helping to advance solutions all over the world. "
For nearly 70 years, LyondellBasell and its predecessor companies have pioneered the development of polyolefin, polypropylene and process technologies that are widely used around the world today. In addition to being the world's largest licensor of polyolefin and polypropylene technologies, the company manufactures products at 55 sites in 17 countries that are key to advancing solutions like enhancing food safety and access through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells its products into approximately 100 countries around the world.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
Information contained in this email is subject to the disclaimer found by clicking on the following link: http://www.lyb.com/en/about-us/disclaimer
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SOURCE LyondellBasell
Article Date
9/27/20179/27/2017 - LyondellBasell Introduces New Brand Identity
LyondellBasell Introduces New Brand Identity
Source: PR Newswire
HOUSTON and ROTTERDAM, Netherlands, Sept. 27, 2017 /PRNewswire/ -- LyondellBasell (NYSE:LYB), one of the largest plastics, chemicals and refining companies in the world, today announced the introduction of its new global brand and tagline, "LyondellBasell: Advancing Possible."
Designed to communicate the many ways LyondellBasell technology, products and materials are critical to advancing solutions across nearly every sector of the global economy, the introduction of Advancing Possible coincides with the 10-year anniversary of the merger between Basell AF and Lyondell Chemical Company.
"There's never been a more exciting time to be an employee of LyondellBasell. As we get ready to celebrate our 10th birthday in December, our new brand honors our proud history of developing and delivering products that have changed the world for the better and the spirit of possibility that our employees around the globe demonstrate every single day," said Bob Patel, CEO of LyondellBasell. "As we look to the next 10 years, our goal is to further connect with our customers and other stakeholders by communicating our passion for helping our customers meet the challenges of today, while advancing innovations that will improve our world for future generations."
Advancing Possible was developed by the company's corporate communications team following significant research among a wide variety of stakeholders. To support the introduction of the new brand, the company has launched a website, www.AdvancingPossible.com, and is running advertising in industry-focused print and digital platforms including IHS Chemical Week, Plastics News, ICIS Chemical Business and the American Chemistry Council's SmartBrief.
"After significant research with our key stakeholders, we wanted to develop a unifying approach that is true to who we are as a company but also differentiates us from others in our industry space," said Michael Waldron, Vice President of global corporate communications. "From a strategic perspective, we wanted to ensure that the brand is flexible enough to support today's incredibly diverse product portfolio while also providing some room to grow in the future. Advancing Possible is larger than just us. It elevates our unique value proposition and the many ways our products, materials and technologies are helping to advance solutions all over the world. "
For nearly 70 years, LyondellBasell and its predecessor companies have pioneered the development of polyolefin, polypropylene and process technologies that are widely used around the world today. In addition to being the world's largest licensor of polyolefin and polypropylene technologies, the company manufactures products at 55 sites in 17 countries that are key to advancing solutions like enhancing food safety and access through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells its products into approximately 100 countries around the world.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
Information contained in this email is subject to the disclaimer found by clicking on the following link: http://www.lyb.com/en/about-us/disclaimer
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SOURCE LyondellBasell
Article Date
9/27/2017LyondellBasell receives European Innovation Award from Plastics Europe for a smart polymer with "self-healing" properties
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
ROTTERDAM, Netherlands, Sept. 21, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, received a European Innovation Award from Plastics Europe and the Society of Plastics Engineers (SPE) in the category "Material Innovation." The company was honored for the development of Koattro KT MR05, a new plastomer with "self-healing" properties. The energy injected by the cutting instrument melts the amorph-soft surface and the two components can be joined together before the surface recrystallizes.
This material could be used to advance the production of seals for aluminum, plastic and wooden windows and doors. The components are cut and pressed onto the carrier surface without the use of glues, adhesives, special tooling or the need for extensive preparation work.
"We are honored to receive this Innovation Award from Plastics Europe," said Richard Roudeix, LyondellBasell's senior vice president olefins and polyolefins for Europe, Asia and international. "Innovation is a part of our DNA and our extensive R&D and Technical Service teams around the world are helping our customers advance their product portfolio, making more sustainable production processes a reality."
The European Innovation Award was launched by The Society of Plastics Engineers and Plastics Europe to raise awareness about the potential of plastic materials. With this award, Plastics Europe and SPE honor companies that have excelled with regard to innovation in the plastics industry. All companies that play a role in the value chain of plastics products, from the larger chemical companies to the plastic converting SMEs, are eligible for the award.
The Koattro family of high performance plastomers based on Butene-1 is characterized by several unique properties such as transparency, softness, flexibility without the use of plasticizers and products that are elastic without any cross-linking. This new family of products is the latest example of LyondellBasell's ability to translate material science into applications that advance traditional polymers into next generation materials.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
9/21/2017LyondellBasell Begins Production at New PP Compounding Plant in Dalian, China
Source: PR Newswire
HOUSTON and ROTTERDAM, The Netherlands, Sept. 21, 2017 /PRNewswire/ -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, today announced the successful startup of a new 20 kilotonne per year polypropylene (PP) compounding plant in Dalian, China. This is the company's third facility in China, strategically located to serve the region's growing automotive market.
"With China's automobile market poised for significant growth over the next several years this facility allows us to better serve our customers, reduce shipping time and logistics costs while delivering a strong return for our shareholders," said LyondellBasell CEO Bob Patel. "This plant leverages our global value chain, from polypropylene technology to specialized compounded products, for the benefit of our customers in the region."
LyondellBasell is the largest producer of PP compounds in the world, with 15 wholly owned facilities, including the Dalian plant, and three joint ventures in 12 countries. Currently in China, LyondellBasell operates PP compounding plants in Suzhou and Guangzhou. The addition of the Dalian plant allows the company's further expansion into the strategically important North China region which is home to a number of major automobile manufacturers including BMW, Daimler, GM, Volkswagen, Audi, Nissan and Chery.
"This plant will supply our customers with the innovative products they need to produce more efficient and comfortable vehicles and allow us to maintain our leadership position in the automotive sector," said Richard Roudeix, LyondellBasell senior vice president, Olefins & Polyolefins, Europe, Asia and International.
Jean Gadbois, LyondellBasell senior vice president, Manufacturing, Europe, Asia and International, added, "Our plants in China use the same process and materials as the plants in other strategic regions to guarantee uniformity of specifications for our global customers."
LyondellBasell's PP compounds are found in almost all modern vehicles and significantly contribute to improved fuel efficiency and the ability of automobile manufacturers to comply with strict environmental standards for car interiors. For example:
Most recently, in 2015, the company announced the strategic acquisition of SJS Plastiblends Pvt. Ltd and the PP compounding assets of Zylog Plastalloys Pvt., making LyondellBasell the third largest producer of PP compounds in India. All LyondellBasell PP compounding plants provide tailor-made solutions allowing automobile parts to meet demanding automotive specifications while providing consistency with global quality standards.
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SOURCE LyondellBasell
Article Date
9/21/2017LyondellBasell Celebrates 18th Annual Global Care Day
Source: PR Newswire
HOUSTON and ROTTERDAM, Netherlands, Sept. 11, 2017 /PRNewswire/ -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, for the 18th consecutive year harnessed the power of thousands of its employees and their family members on Global Care Day. During this day of community engagement, 58 of LyondellBasell's manufacturing sites and offices in 23 countries partnered with local community organizations to meet needs in the areas of education, health and the environment.
Some examples of projects include:
"There are many reasons why people volunteer, but no matter why each individual chooses to give their time, we're grateful that employees are dedicated to helping LyondellBasell's mission of being a responsible, good neighbor in the communities where we operate," said Richard Roudeix, LyondellBasell's senior vice president of Olefins & Polyolefins in Europe, Asia and International. "Projects like Global Care Day unite the company across the world and demonstrate that when we work together it is possible to make a big impact." Over the past 18 years, LyondellBasell employees and their families have cumulatively donated more than 179,000 volunteer hours on Global Care Day.
"Seeing our employees come together following a storm that ravaged our region was truly inspiring," said Paul Augustowski, LyondellBasell's senior vice president of Olefins & Polyolefins for the Americas. "This year's Global Care Day had a special meaning because it seemed as though every person on our Houston-area team knows someone who has been personally impacted by this storm. We were extremely grateful for the opportunity to make a big difference in the community."
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
9/11/20179/3/2017 - LyondellBasell Provides Needed Equipment to Hurricane Harvey Emergency Responders and Recovery Teams
LyondellBasell Provides Needed Equipment to Hurricane Harvey Emergency Responders and Recovery Teams
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 3, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced it has donated $25,000 in personal protective equipment (PPE) to the Houston Office of Emergency Management (OEM) to support emergency responders and recovery teams in their efforts to search flooded homes and businesses in the greater Houston area.
The donated equipment includes 1,000 pairs of leather work gloves, 1,000 pairs of rubber boots of various sizes, 500 flashlights with batteries, 500 pairs of safety eyewear and 300 chemical suits. The donation of work gloves was generously provided by two of LyondellBasell's PPE vendors, Ringers Gloves and Ansell Gloves.
"This is one small thing we can do for the first responders and recovery teams who are putting their lives on the line to save others," said LyondellBasell's Senior Manager of Global Security and Crisis Management Scott McHugh. "We have a strong partnership with the Houston OEM and we are glad we can provide support and cooperation during this time of crisis."
The protective equipment was delivered yesterday to the Houston OEM to ensure police, fire, emergency medical and recovery teams had enough PPE supplies for several more days of recovery searches of residences and businesses ahead of them. The donation will provide protection for more than 1,000 first responders as they continue their door-to-door recovery searches of properties in areas flooded from Hurricane Harvey.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
9/3/20179/2/2017 - LyondellBasell's Houston Refinery Donates Food to Families in Crisis in Wake of Hurricane Harvey
LyondellBasell's Houston Refinery Donates Food to Families in Crisis in Wake of Hurricane Harvey
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sept. 2, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that the company's Houston Refinery donated approximately $16,000 in food to The Bridge Over Troubled Waters (TBOTW), a nonprofit family crisis center located in Pasadena near the refinery. The donation helped restock the organization's food shelves and feed more than 160 families, some of which were impacted by Hurricane Harvey. The families rely on TBOTW for shelter services and other support.
"So many families have been impacted by the storm and need basic necessities," said Jerome Mauvigney, site manager of LyondellBasell's Houston Refinery. "As these families look to recover, we are here to help ease some their burden."
TBOTW offers support to provide safety and prevent domestic and sexual violence. With two offices, one in Pasadena and one in Baytown, the organization provides services such as case management, crisis intervention, a 24-hour hotline, domestic violence and sexual assault prevention education, emergency shelter and transitional living to those in Harris County.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell Industries
Article Date
9/2/20178/30/2017 - LyondellBasell Supports Tropical Storm Relief Efforts in Lake Charles with Food Donation
LyondellBasell Supports Tropical Storm Relief Efforts in Lake Charles with Food Donation
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
LAKE CHARLES, La., Aug. 30, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced a donation of more than $15,000 worth of food to Catholic Charities of Southwest Louisiana to support disaster relief efforts in Lake Charles neighborhoods impacted by Tropical Storm Harvey.
The donation will help feed hundreds of area residents who have evacuated their homes and are sheltering in place at the city's Purple Heart Recreational Center and Lake Charles Civic Center.
"Our thoughts are with those who have felt the effect of this devastating storm," said Shawn Cullen, site manager of LyondellBasell's Lake Charles Polymers Plant. "We are partnering with Catholic Charities to help provide meals to those in need, we hope this donation brings comfort to them while they are dealing with so much."
Catholic Charities of Southwest Louisiana is part of the larger Catholic Charities USA, which is a national organization that offers support to member agencies, provides disaster relief and promotes poverty reduction through research and legislative reform.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
8/30/20178/29/2017 - LyondellBasell Donates $200,000 to the American Red Cross Texas Gulf Coast Region for Hurricane Relief
LyondellBasell Donates $200,000 to the American Red Cross Texas Gulf Coast Region for Hurricane Relief
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Aug. 29, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the largest plastics, chemicals and refining companies in the world, today announced a donation of $200,000 to the American Red Cross Texas Gulf Coast Region to assist communities impacted by Hurricane Harvey.
"Our hearts go out to the thousands of Gulf Coast residents who have been affected by this devastating storm," said LyondellBasell CEO Bob Patel. "We are deeply grateful for the Red Cross staff and all of the volunteers who are providing aid and support to our communities during this time of need."
The American Red Cross Texas Gulf Coast Region provides life-saving services to more than 9 million people in cities such as Corpus Christi, Beaumont, Galveston and Houston. The region is made up of four local chapters: Southeast and Deep East Texas, South Texas, Coastal Bend and Greater Houston.
To assist with volunteer efforts, visit redcross.org/volunteer/.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
8/29/2017LyondellBasell Board Authorizes Quarterly Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Aug. 23, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that its Supervisory Board has authorized the company's Management Board to declare a dividend of $0.90 per share. The dividend will be paid September 13, 2017 to shareholders of record September 6, 2017 with an ex-dividend date of September 1, 2017.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
8/23/2017LyondellBasell to Address Jefferies Industrials Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, Aug. 3, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that Jim Guilfoyle, senior vice president, Global Intermediates & Derivatives and Global Supply Chain, will address investors at the Jefferies Industrials Conference on August 8, 2017 at 10:00 a.m. EST. The conference will take place at The InterContinental Barclay Hotel in New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.lyondellbasell.com/en/investors/investor-events/, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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SOURCE LyondellBasell
Article Date
8/3/2017LyondellBasell Reports Second Quarter 2017 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, July 28, 2017 /PRNewswire/ --
Second Quarter 2017 Highlights
Comparisons with the prior quarter and second quarter 2016 are available in the following table:
|
Table 1 - Earnings Summary |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
Millions of U.S. dollars (except share data) |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Sales and other operating revenues |
$8,403 |
$8,430 |
$7,328 |
$16,833 |
$14,071 |
||
|
Net income(a) |
1,130 |
797 |
1,091 |
1,927 |
2,121 |
||
|
Income from continuing operations(b) |
1,134 |
805 |
1,092 |
1,939 |
2,122 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Net income(c) |
2.81 |
1.98 |
2.56 |
4.78 |
4.93 |
||
|
Income from continuing operations(b) |
2.82 |
2.00 |
2.56 |
4.81 |
4.93 |
||
|
Diluted share count (millions) |
402 |
403 |
425 |
403 |
429 |
||
|
EBITDA(d) |
1,970 |
1,617 |
1,783 |
3,587 |
3,590 |
||
|
Excluding LCM Impact: |
|||||||
|
LCM benefit, pre-tax(e) |
- - |
- - |
(68) |
- - |
- - |
||
|
Income from continuing operations(b) |
1,134 |
805 |
1,045 |
1,939 |
2,122 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Income from continuing operations(b) |
2.82 |
2.00 |
2.45 |
4.81 |
4.93 |
||
|
EBITDA(d) |
1,970 |
1,617 |
1,715 |
3,587 |
3,590 |
||
|
(a) |
Includes net (income) loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 10. | ||||||
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. | ||||||
|
(c) |
Includes diluted earnings (loss) 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. | ||||||
|
(e) |
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." | ||||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2017 of $1.1 billion, or $2.82 per share. Second quarter 2017 EBITDA was $2.0 billion.
"LyondellBasell's second quarter results demonstrate the value of our investments in capacity expansions and asset maintenance to deliver record quarterly earnings per share for the company. During the second quarter, our ethylene crackers in the United States and Europe operated at 98 percent and the refinery operated at 99 percent of nameplate capacity. Second quarter 2017 ethylene production volumes increased by 34 percent in the Americas and 13 percent in Europe compared to the second quarter 2016. Our strong operating rates were met with solid demand to drive improvements in global Olefins and Polyolefins chain margins and deliver record quarterly EBITDA for our Olefins and Polyolefins – Europe, Asia and International segment," said Bob Patel, LyondellBasell CEO.
"In addition to our earnings strength, we generated $1.2 billion of free cash flow during the second quarter, increased our quarterly dividend by 6 percent and advanced our organic growth and share repurchase programs," said Patel.
OUTLOOK
"More than 25 percent of the first wave of new United States ethylene capacity is now in the market and global olefin and polyolefin industry conditions remain favorable during July. With no major maintenance planned for the remainder of 2017, we are well positioned to deliver strong performance from LyondellBasell's global assets," 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 and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments. 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."
Olefins and Polyolefins - Americas (O&P-Americas) – Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
Table 2 - O&P–Americas Financial Overview |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$738 |
$559 |
$646 |
$1,297 |
$1,353 |
||
|
EBITDA |
859 |
723 |
754 |
1,582 |
1,632 |
||
|
LCM charges (benefits), pre-tax |
- - |
- - |
- - |
- - |
- - |
||
|
EBITDA excluding LCM adjustments |
859 |
723 |
754 |
1,582 |
1,632 |
||
Three months ended June 30, 2017 versus three months ended March 31, 2017 – EBITDA increased $136 million versus the first quarter 2017. First quarter 2017 included a $31 million gain on the sale of property in Lake Charles, Louisiana. Compared to the prior period, olefin results increased approximately $100 million. Ethylene margins improved by approximately 3 cents per pound with declining feedstock prices for propane, butane and heavy liquids. Combined polyolefin results increased by approximately $80 million. Polyethylene and polypropylene spreads increased by 4 cents per pound and 5 cents per pound respectively, due to ethylene and propylene feedstock price decreases and higher polyethylene pricing, which was partially offset by small volume declines in polyethylene. Joint venture equity income decreased by $3 million.
Three months ended June 30, 2017 versus three months ended June 30, 2016 – EBITDA increased $105 million versus the second quarter 2016. Olefin results increased by approximately $150 million primarily due to an increase in ethylene production of approximately 34 percent due to planned maintenance in the second quarter of 2016. Combined polyolefin results declined approximately $25 million primarily due to declining margins in polypropylene partially offset by increased polypropylene sales volumes. Joint venture equity income declined by $9 million.
Olefins and Polyolefins - Europe, Asia, and International (O&P-EAI) – Our O&P–EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
|
Table 3 - O&P–EAI Financial Overview |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$549 |
$401 |
$423 |
$950 |
$781 |
||
|
EBITDA |
699 |
529 |
576 |
1,228 |
1,085 |
||
|
LCM benefit, pretax |
- - |
- - |
(40) |
- - |
- - |
||
|
EBITDA excluding LCM adjustments |
699 |
529 |
536 |
1,228 |
1,085 |
||
Three months ended June 30, 2017 versus three months ended March 31, 2017 – EBITDA increased by $170 million versus the first quarter 2017. Olefin results increased approximately $135 million as ethylene margins improved by 9 cents per pound primarily due to lower feedstock costs. Combined polyolefin results increased approximately $15 million primarily due to improved margins for polypropylene and polypropylene compounds. Joint venture equity income was relatively unchanged.
Three months ended June 30, 2017 versus three months ended June 30, 2016 – EBITDA increased by $163 million versus the second quarter 2016, excluding an unfavorable $40 million quarter to quarter variance as a result of a 2016 LCM inventory adjustment. Olefin results increased by approximately $180 million as a result of improved ethylene margins and increased sales volumes due to planned maintenance which occurred in the second quarter of 2016. Combined polyolefin results declined by approximately $15 million primarily due to lower polyethylene spreads. Joint venture equity income declined by $29 million primarily due to declining polymer spreads and reduced volumes.
Intermediates and Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
Table 4 - I&D Financial Overview |
||||||
|
Three Months Ended |
Six Months Ended |
|||||
|
June 30, |
March 31, |
June 30, |
June 30, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
|
|
Operating income |
$270 |
$269 |
$327 |
$539 |
$582 |
|
|
EBITDA |
339 |
339 |
397 |
678 |
723 |
|
|
LCM benefit, pre-tax |
- - |
- - |
(28) |
- - |
- - |
|
|
EBITDA excluding LCM adjustments |
339 |
339 |
369 |
678 |
723 |
|
Three months ended June 30, 2017 versus three months ended March 31, 2017 – EBITDA was unchanged relative to the first quarter 2017, including the impact from first quarter charges related to the recovery of precious metals after catalyst changes. Excluding the precious metal adjustments, PO and derivatives results declined approximately $5 million, primarily due to lower volumes resulting from planned maintenance at our plant in Botlek, The Netherlands. After excluding the precious metal adjustments, intermediate chemicals results declined approximately $30 million primarily due to a 2 cent per pound decrease in styrene margins and a decrease in methanol volumes due to planned maintenance. Oxyfuels and related products results were relatively unchanged as reduced volumes from the Botlek maintenance offset seasonal margin improvements. Joint venture equity income was relatively unchanged.
Three months ended June, 30 2017 versus three months ended June 30, 2016 – EBITDA decreased $30 million versus the second quarter 2016, excluding an unfavorable $28 million variance as a result of an LCM inventory adjustment. PO and derivatives results were relatively unchanged. Intermediate chemicals results improved by approximately $15 million primarily from improvements in methanol and VAM margins. Oxyfuels and related products results declined by approximately $45 million due to lower margins coupled with reduced volumes resulting from planned maintenance at Botlek. Joint venture equity income was relatively unchanged.
Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.
|
Table 5 - Refining Financial Overview |
||||||
|
Three Months Ended |
Six Months Ended |
|||||
|
June 30, |
March 31, |
June 30, |
June 30, |
|||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
|
|
Operating loss |
($21) |
($70) |
($53) |
($91) |
($83) |
|
|
EBITDA |
25 |
(30) |
(13) |
(5) |
1 |
|
|
LCM charges (benefits), pre-tax |
- - |
- - |
- - |
- - |
- - |
|
|
EBITDA excluding LCM adjustments |
25 |
(30) |
(13) |
(5) |
1 |
|
Three months ended June 30, 2017 versus three months ended March 31, 2017 – EBITDA increased $55 million versus the first quarter 2017. The Houston refinery operated at 265,000 barrels per day, 72,000 barrels per day more than the prior quarter following completion of planned maintenance at the beginning of the second quarter. Results were negatively impacted by low industry margins reflecting weak discounts for heavy crude oil during May and June.
Three months ended June 30, 2017 versus three months ended June 30, 2016 – EBITDA increased $38 million versus the second quarter 2016. Second quarter 2017 throughput increased by 82,000 barrels per day due to maintenance during the second quarter of 2016. Second quarter 2017 margins were negatively impacted by unfavorable heavy to light differentials in crude oil markets.
Technology Segment – Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
Table 6 - Technology Financial Overview |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
Millions of U.S. dollars |
2017 |
2017 |
2016 |
2017 |
2016 |
||
|
Operating income |
$39 |
$50 |
$62 |
$89 |
$135 |
||
|
EBITDA |
48 |
60 |
73 |
108 |
156 |
||
Three months ended June 30, 2017 versus three months ended March 31, 2017 – EBITDA decreased by $12 million primarily due to lower catalyst volumes related to the timing of shipments.
Three months ended June 30, 2017 versus three months ended June 30, 2016 – EBITDA decreased by $25 million due to the timing of licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $407 million during the second quarter 2017. Our cash and liquid investment balance was $2.6 billion at June 30, 2017. We repurchased 5.4 million ordinary shares during the second quarter 2017, leaving 397 million common shares outstanding as of June 30, 2017. The company paid dividends of $361 million during the second quarter of 2017.
CONFERENCE CALL
LyondellBasell will host a conference call July 28 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. 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 6934553.
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. EDT July 28 until August 28 at 11:59 p.m. EDT. The replay dial-in numbers are 800-294-5423 (U.S.) and 402-220-9786 (international). The pass code for each is 2526.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, 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.
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 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 related to our use of LIFO accounting and the recent decline 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) |
|||||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||||
|
Sales and other operating revenues: |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,115 |
$ |
2,211 |
$ |
2,342 |
$ |
2,409 |
$ |
9,077 |
$ |
2,604 |
$ |
2,547 |
$ |
5,151 | |||||||||||
|
Olefins & Polyolefins - EAI |
2,578 |
2,721 |
2,634 |
2,646 |
10,579 |
3,024 |
3,008 |
6,032 | |||||||||||||||||||
|
Intermediates & Derivatives |
1,702 |
1,769 |
1,805 |
1,950 |
7,226 |
2,150 |
2,014 |
4,164 | |||||||||||||||||||
|
Refining |
955 |
1,289 |
1,330 |
1,561 |
5,135 |
1,353 |
1,713 |
3,066 | |||||||||||||||||||
|
Technology |
132 |
129 |
102 |
116 |
479 |
120 |
107 |
227 | |||||||||||||||||||
|
Other/elims |
(739) |
(791) |
(848) |
(935) |
(3,313) |
(821) |
(986) |
(1,807) | |||||||||||||||||||
|
Continuing Operations |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
$ |
8,403 |
$ |
16,833 | |||||||||||
|
Operating income (loss): |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
707 |
$ |
646 |
$ |
582 |
$ |
458 |
$ |
2,393 |
$ |
559 |
$ |
738 |
$ |
1,297 | |||||||||||
|
Olefins & Polyolefins - EAI |
358 |
423 |
447 |
266 |
1,494 |
401 |
549 |
950 | |||||||||||||||||||
|
Intermediates & Derivatives |
255 |
327 |
240 |
236 |
1,058 |
269 |
270 |
539 | |||||||||||||||||||
|
Refining |
(30) |
(53) |
(56) |
40 |
(99) |
(70) |
(21) |
(91) | |||||||||||||||||||
|
Technology |
73 |
62 |
35 |
51 |
221 |
50 |
39 |
89 | |||||||||||||||||||
|
Other |
(3) |
(2) |
1 |
(3) |
(7) |
1 |
2 |
3 | |||||||||||||||||||
|
Continuing Operations |
$ |
1,360 |
$ |
1,403 |
$ |
1,249 |
$ |
1,048 |
$ |
5,060 |
$ |
1,210 |
$ |
1,577 |
$ |
2,787 | |||||||||||
|
Depreciation and amortization: |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
90 |
$ |
88 |
$ |
87 |
$ |
97 |
$ |
362 |
$ |
118 |
$ |
107 |
$ |
225 | |||||||||||
|
Olefins & Polyolefins - EAI |
55 |
58 |
58 |
58 |
229 |
59 |
58 |
117 | |||||||||||||||||||
|
Intermediates & Derivatives |
70 |
69 |
62 |
68 |
269 |
69 |
68 |
137 | |||||||||||||||||||
|
Refining |
43 |
40 |
40 |
40 |
163 |
40 |
44 |
84 | |||||||||||||||||||
|
Technology |
10 |
11 |
10 |
10 |
41 |
10 |
9 |
19 | |||||||||||||||||||
|
Continuing Operations |
$ |
268 |
$ |
266 |
$ |
257 |
$ |
273 |
$ |
1,064 |
$ |
296 |
$ |
286 |
$ |
582 | |||||||||||
|
EBITDA: (b) |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
878 |
$ |
754 |
$ |
682 |
$ |
563 |
$ |
2,877 |
$ |
723 |
$ |
859 |
$ |
1,582 | |||||||||||
|
Olefins & Polyolefins - EAI |
509 |
576 |
584 |
398 |
2,067 |
529 |
699 |
1,228 | |||||||||||||||||||
|
Intermediates & Derivatives |
326 |
397 |
304 |
306 |
1,333 |
339 |
339 |
678 | |||||||||||||||||||
|
Refining |
14 |
(13) |
(10) |
81 |
72 |
(30) |
25 |
(5) | |||||||||||||||||||
|
Technology |
83 |
73 |
45 |
61 |
262 |
60 |
48 |
108 | |||||||||||||||||||
|
Other |
(3) |
(4) |
1 |
(3) |
(9) |
(4) |
- - |
(4) | |||||||||||||||||||
|
Continuing Operations |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
$ |
1,970 |
$ |
3,587 | |||||||||||
|
Capital, turnarounds and IT deferred spending: |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
303 |
$ |
339 |
$ |
384 |
$ |
350 |
$ |
1,376 |
$ |
202 |
$ |
179 |
$ |
381 | |||||||||||
|
Olefins & Polyolefins - EAI |
81 |
60 |
48 |
72 |
261 |
47 |
32 |
79 | |||||||||||||||||||
|
Intermediates & Derivatives |
76 |
80 |
90 |
87 |
333 |
77 |
107 |
184 | |||||||||||||||||||
|
Refining |
57 |
71 |
51 |
45 |
224 |
84 |
79 |
163 | |||||||||||||||||||
|
Technology |
6 |
9 |
9 |
12 |
36 |
7 |
6 |
13 | |||||||||||||||||||
|
Other |
4 |
4 |
4 |
1 |
13 |
4 |
4 |
8 | |||||||||||||||||||
|
Continuing Operations |
$ |
527 |
$ |
563 |
$ |
586 |
$ |
567 |
$ |
2,243 |
$ |
421 |
$ |
407 |
$ |
828 | |||||||||||
|
(a) |
EBITDA for the first quarter of 2016 includes a pre-tax LCM charge of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 EBITDA also includes a pre-tax LCM charge of $29 million. See Tables 2 through 6 for LCM adjustments |
|
(b) |
See Table 8 for EBITDA calculation. |
|
Table 8 - EBITDA Calculation | |||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||
|
Net income(a) |
$ |
1,030 |
$ |
1,091 |
$ |
953 |
$ |
763 |
$ |
3,837 |
$ |
797 |
$ |
1,130 |
$ |
1,927 | |||||||||
|
Loss from discontinued operations, net of tax |
- - |
1 |
2 |
7 |
10 |
8 |
4 |
12 | |||||||||||||||||
|
Income from continuing operations(a) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
1,134 |
1,939 | |||||||||||||||||
|
Provision for income taxes |
432 |
346 |
326 |
282 |
1,386 |
315 |
459 |
774 | |||||||||||||||||
|
Depreciation and amortization |
268 |
266 |
257 |
273 |
1,064 |
296 |
286 |
582 | |||||||||||||||||
|
Interest expense, net(b) |
77 |
79 |
68 |
81 |
305 |
201 |
91 |
292 | |||||||||||||||||
|
EBITDA(c) |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
$ |
1,970 |
$ |
3,587 | |||||||||
|
(a) |
The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 also includes an $18 million after-tax LCM charge. |
|
(b) |
Includes pre-tax charges totalling $113 million in the first quarter of 2017 related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. |
|
(c) |
The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. Fourth quarter 2016 also includes a pre-tax LCM charge of $29 million. |
|
Table 9 - Selected Segment Operating Information | ||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||
|
Ethylene produced |
2,392 |
1,899 |
1,939 |
2,173 |
8,403 |
2,486 |
2,606 |
5,092 | ||||||||||||
|
Propylene produced |
832 |
748 |
575 |
660 |
2,815 |
597 |
821 |
1,418 | ||||||||||||
|
Polyethylene sold |
1,554 |
1,426 |
1,517 |
1,485 |
5,982 |
1,533 |
1,404 |
2,937 | ||||||||||||
|
Polypropylene sold |
612 |
582 |
659 |
623 |
2,476 |
644 |
634 |
1,278 | ||||||||||||
|
Benchmark Market Prices |
||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
33.63 |
46.01 |
44.94 |
49.29 |
43.56 |
51.78 |
48.15 |
49.95 | ||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
35.34 |
47.39 |
46.52 |
50.60 |
45.03 |
53.39 |
50.17 |
51.77 | ||||||||||||
|
Houston Ship Channel natural gas (USD per million BTUs) |
1.93 |
2.06 |
2.79 |
3.01 |
2.45 |
2.96 |
3.14 |
3.05 | ||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
9.8 |
12.0 |
10.6 |
14.3 |
11.7 |
11.8 |
12.5 |
12.2 | ||||||||||||
|
U.S. ethylene (cents/pound) |
26.7 |
30.3 |
33.0 |
32.7 |
30.7 |
33.1 |
31.9 |
32.5 | ||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
52.3 |
59.0 |
60.7 |
58.3 |
57.6 |
57.3 |
59.0 |
58.2 | ||||||||||||
|
U.S. propylene (cents/pound) |
31.0 |
32.7 |
37.8 |
36.2 |
34.4 |
47.2 |
41.0 |
44.1 | ||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.8 |
61.7 |
60.2 |
55.8 |
61.4 |
66.2 |
59.0 |
62.6 | ||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||
|
Ethylene produced |
950 |
941 |
1,066 |
946 |
3,903 |
1,022 |
1,069 |
2,091 | ||||||||||||
|
Propylene produced |
555 |
577 |
649 |
563 |
2,344 |
598 |
632 |
1,230 | ||||||||||||
|
Polyethylene sold |
1,434 |
1,386 |
1,315 |
1,330 |
5,465 |
1,421 |
1,370 |
2,791 | ||||||||||||
|
Polypropylene sold |
1,773 |
1,617 |
1,509 |
1,582 |
6,481 |
1,714 |
1,530 |
3,244 | ||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
16.3 |
21.2 |
17.9 |
23.8 |
19.8 |
22.7 |
17.6 |
20.2 | ||||||||||||
|
Western Europe ethylene |
38.4 |
41.1 |
42.3 |
43.1 |
41.2 |
46.2 |
47.1 |
46.6 | ||||||||||||
|
Western Europe polyethylene [high density] |
55.4 |
57.6 |
55.7 |
55.2 |
56.0 |
58.2 |
59.5 |
58.9 | ||||||||||||
|
Western Europe propylene |
26.3 |
28.8 |
30.7 |
33.3 |
29.8 |
37.0 |
39.3 |
38.2 | ||||||||||||
|
Western Europe polypropylene [homopolymer] |
46.5 |
49.5 |
49.5 |
51.7 |
49.3 |
56.3 |
60.1 |
58.2 | ||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||
|
Volumes (million pounds unless otherwise indicated) |
||||||||||||||||||||
|
Propylene oxide and derivatives |
793 |
743 |
752 |
749 |
3,037 |
786 |
748 |
1,534 | ||||||||||||
|
Intermediate Chemicals: |
||||||||||||||||||||
|
Ethylene oxide and derivatives |
301 |
233 |
224 |
329 |
1,087 |
292 |
297 |
589 | ||||||||||||
|
Styrene monomer |
917 |
933 |
911 |
933 |
3,694 |
992 |
924 |
1,916 | ||||||||||||
|
Acetyls |
702 |
821 |
751 |
776 |
3,050 |
825 |
672 |
1,497 | ||||||||||||
|
Oxyfuels and Related Products: |
||||||||||||||||||||
|
TBA Intermediates |
415 |
391 |
410 |
361 |
1,577 |
383 |
332 |
715 | ||||||||||||
|
MTBE/ETBE (million gallons) |
270 |
278 |
298 |
264 |
1,110 |
239 |
263 |
502 | ||||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||
|
MTBE - Northwest Europe |
44.4 |
78.7 |
55.3 |
50.6 |
57.2 |
49.5 |
67.3 |
58.2 | ||||||||||||
|
Refining |
||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||
|
Heavy crude oil processing rate |
186 |
183 |
209 |
228 |
201 |
193 |
265 |
229 | ||||||||||||
|
Benchmark Market Margins |
||||||||||||||||||||
|
Light crude oil - 2-1-1 |
8.67 |
11.52 |
11.46 |
11.20 |
10.73 |
11.86 |
13.26 |
12.57 | ||||||||||||
|
Light crude oil - Maya differential |
9.19 |
9.55 |
7.52 |
7.80 |
8.51 |
8.78 |
6.28 |
7.55 | ||||||||||||
|
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 | ||||||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | ||||||||||||||||||
|
Sales and other operating revenues |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
$ |
8,403 |
$ |
16,833 | ||||||||||
|
Cost of sales(a) |
5,166 |
5,702 |
5,903 |
6,420 |
23,191 |
6,991 |
6,601 |
13,592 | ||||||||||||||||||
|
Selling, general and administrative expenses |
193 |
199 |
188 |
253 |
833 |
204 |
200 |
404 | ||||||||||||||||||
|
Research and development expenses |
24 |
24 |
25 |
26 |
99 |
25 |
25 |
50 | ||||||||||||||||||
|
Operating income(a) |
1,360 |
1,403 |
1,249 |
1,048 |
5,060 |
1,210 |
1,577 |
2,787 | ||||||||||||||||||
|
Income from equity investments |
91 |
117 |
81 |
78 |
367 |
81 |
78 |
159 | ||||||||||||||||||
|
Interest expense, net(b) |
(77) |
(79) |
(68) |
(81) |
(305) |
(201) |
(91) |
(292) | ||||||||||||||||||
|
Other income (expense), net(c) |
88 |
(3) |
19 |
7 |
111 |
30 |
29 |
59 | ||||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) (c) |
1,462 |
1,438 |
1,281 |
1,052 |
5,233 |
1,120 |
1,593 |
2,713 | ||||||||||||||||||
|
Provision for income taxes |
432 |
346 |
326 |
282 |
1,386 |
315 |
459 |
774 | ||||||||||||||||||
|
Income from continuing operations(d) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
1,134 |
1,939 | ||||||||||||||||||
|
Loss from discontinued operations, net of tax |
- - |
(1) |
(2) |
(7) |
(10) |
(8) |
(4) |
(12) | ||||||||||||||||||
|
Net income(d) |
1,030 |
1,091 |
953 |
763 |
3,837 |
797 |
1,130 |
1,927 | ||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
- - |
- - |
(1) |
- - |
(1) |
- - |
1 |
1 | ||||||||||||||||||
|
Net income attributable to the Company shareholders(d) |
$ |
1,030 |
$ |
1,091 |
$ |
952 |
$ |
763 |
$ |
3,836 |
$ |
797 |
$ |
1,131 |
$ |
1,928 | ||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $68 million and $29 million in the first and fourth quarters of 2016, respectively. A pre-tax benefit of $68 million in the second quarter of 2016 reflects the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
|
(b) |
Includes pre-tax charges totalling $113 million in the first quarter of 2017 related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. |
|
(c) |
Includes a pre-tax gain of $31 million in the first quarter of 2017 on the sale of our Lake Charles, Louisiana site currently used as a logistics terminal and a $78 million gain in the first quarter of 2016 on the sale of our wholly owned Argentine subsidiary. |
|
(d) |
Amounts presented herein include after-tax LCM charges of $47 million and $18 million in the first and fourth quarters of 2016, respectively. The second quarter of 2016 includes an after tax benefit of $47 million for the partial reversal of the first quarter 2016 LCM adjustment resulting from price recoveries during the period. The first quarter of 2016 also includes a $78 million gain on the sale of our wholly owned Argentine subsidiary. The first quarter of 2017 includes after-tax charges totalling $106 million related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. |
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations |
||||||||||||||||||||||||
|
2016 |
2017 |
|||||||||||||||||||||||
|
Annual |
||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Impact |
Q1 |
Q2 |
YTD | ||||||||||||||||
|
Pretax charges (benefits): |
||||||||||||||||||||||||
|
Charges and premiums related to repayment of debt |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
113 |
$ |
- - |
$ |
113 | ||||||||
|
Out of period tax adjustment |
- - |
- - |
- - |
61 |
74 |
- - |
- - |
- - | ||||||||||||||||
|
Gain on sale of wholly owned subsidiary |
(78) |
- - |
- - |
- - |
(78) |
- - |
- - |
- - | ||||||||||||||||
|
Lower of cost or market inventory adjustment |
68 |
(68) |
- - |
29 |
29 |
- - |
- - |
- - | ||||||||||||||||
|
Pension settlement charge |
- - |
- - |
- - |
58 |
58 |
- - |
- - |
- - | ||||||||||||||||
|
Total pretax charges (benefits) |
(10) |
(68) |
- - |
148 |
83 |
113 |
- - |
113 | ||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(21) |
21 |
- - |
(32) |
(32) |
(7) |
- - |
(7) | ||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
(31) |
$ |
(47) |
$ |
- - |
$ |
116 |
$ |
51 |
$ |
106 |
$ |
- - |
$ |
106 | ||||||||
|
Effect on diluted earnings per share |
$ |
0.07 |
$ |
0.11 |
$ |
- - |
$ |
(0.29) |
$ |
(0.12) |
$ |
(0.26) |
$ |
- - |
$ |
(0.26) | ||||||||
|
Table 12 - Unaudited Cash Flow Information | |||||||||||||||||||||||||||
|
2016 |
2017 | ||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||||
|
Net cash provided by operating activities(a) |
$ |
1,300 |
$ |
1,261 |
$ |
1,332 |
$ |
1,713 |
$ |
5,606 |
$ |
678 |
$ |
1,560 |
$ |
2,238 | |||||||||||
|
Net cash used in investing activities(b) |
(600) |
(471) |
(459) |
(771) |
(2,301) |
(541) |
(513) |
(1,054) | |||||||||||||||||||
|
Net cash used in financing activities (a) |
(333) |
(1,039) |
(1,195) |
(782) |
(3,349) |
(537) |
(822) |
(1,359) | |||||||||||||||||||
|
(a) |
In the second quarter of 2017, the early adoption of ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments resulted in the reclassification of cash flows related to debt extinguishment costs incurred in the first quarter of 2017 from operating to financing activities cash flows. |
|
(b) |
Also in the second quarter of 2017, the early retrospective adoption of ASU 2016-18, Statement of Cash Flows: Restricted Cash requires the inclusion of restricted cash and restricted cash equivalents in the cash and cash equivalents balances in our Statements of Cash Flows. |
|
Table 13 - Unaudited Balance Sheet Information | ||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
June 30, | |||||||||||||||
|
(Millions of U.S. dollars) |
2016 |
2016 |
2016 |
2016 |
2017 |
2017 | ||||||||||||||
|
Cash and cash equivalents |
$ |
1,318 |
$ |
1,060 |
$ |
740 |
$ |
875 |
$ |
485 |
$ |
734 | ||||||||
|
Restricted cash |
4 |
4 |
4 |
3 |
1 |
6 | ||||||||||||||
|
Short-term investments |
1,332 |
1,023 |
1,090 |
1,147 |
1,176 |
1,278 | ||||||||||||||
|
Accounts receivable, net |
2,683 |
2,806 |
2,852 |
2,842 |
3,292 |
3,086 | ||||||||||||||
|
Inventories |
3,978 |
4,009 |
4,015 |
3,809 |
3,875 |
4,007 | ||||||||||||||
|
Prepaid expenses and other current assets |
1,009 |
1,081 |
852 |
923 |
852 |
964 | ||||||||||||||
|
Total current assets |
10,324 |
9,983 |
9,553 |
9,599 |
9,681 |
10,075 | ||||||||||||||
|
Property, plant and equipment, net |
9,373 |
9,681 |
10,057 |
10,137 |
10,361 |
10,551 | ||||||||||||||
|
Investments and long-term receivables: |
||||||||||||||||||||
|
Investment in PO joint ventures |
398 |
390 |
399 |
415 |
409 |
423 | ||||||||||||||
|
Equity investments |
1,734 |
1,610 |
1,681 |
1,575 |
1,672 |
1,595 | ||||||||||||||
|
Other investments and long-term receivables |
18 |
18 |
17 |
20 |
20 |
18 | ||||||||||||||
|
Goodwill |
548 |
542 |
543 |
528 |
531 |
559 | ||||||||||||||
|
Intangible assets, net |
618 |
588 |
562 |
550 |
517 |
499 | ||||||||||||||
|
Other assets |
559 |
623 |
607 |
618 |
577 |
398 | ||||||||||||||
|
Total assets |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
$ |
24,118 | ||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
2 |
$ |
2 |
$ |
2 | ||||||||
|
Short-term debt |
594 |
616 |
621 |
594 |
611 |
561 | ||||||||||||||
|
Accounts payable |
2,243 |
2,357 |
2,329 |
2,529 |
2,627 |
2,317 | ||||||||||||||
|
Accrued liabilities |
1,600 |
1,374 |
1,357 |
1,415 |
1,139 |
1,251 | ||||||||||||||
|
Total current liabilities |
4,441 |
4,351 |
4,310 |
4,540 |
4,379 |
4,131 | ||||||||||||||
|
Long-term debt |
8,504 |
8,485 |
8,464 |
8,385 |
8,419 |
8,496 | ||||||||||||||
|
Other liabilities |
2,125 |
2,143 |
2,151 |
2,113 |
2,130 |
2,253 | ||||||||||||||
|
Deferred income taxes |
2,134 |
2,149 |
2,387 |
2,331 |
2,353 |
2,370 | ||||||||||||||
|
Stockholders' equity |
6,344 |
6,283 |
6,082 |
6,048 |
6,462 |
6,866 | ||||||||||||||
|
Non-controlling interests |
24 |
24 |
25 |
25 |
25 |
2 | ||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
$ |
24,118 | ||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-reports-second-quarter-2017-earnings-300495921.html
SOURCE LyondellBasell Industries
Article Date
7/28/2017LyondellBasell to Build the World's Largest PO/TBA Plant in Texas
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, July 21, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced the final investment decision to build the world's largest propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in the Houston area. The project is estimated to cost approximately $2.4 billion, representing the single-largest capital investment in the company's history. At the peak of construction, the project is expected to create up to 2,500 jobs and approximately 160 permanent positions when operational.
"This world-scale project is a key part of our organic growth strategy which is designed to meet rising global demand for both urethanes and cleaner-burning oxyfuels while creating real, long-term value for our shareholders," said Bob Patel, CEO of LyondellBasell. "Our investment in this plant combines the best of both worlds: our leading PO/TBA process technology with proximity to low-cost feedstocks, which gives LyondellBasell a competitive advantage in the global marketplace for these products."
"We are pleased that LyondellBasell continues to view the Houston area as important to their global operations, creating jobs and opportunities for Houstonians," said Bob Harvey, president and CEO of the Greater Houston Partnership. "This new project further advances Houston's position as a global hub of petrochemical manufacturing, leveraging Houston's strategic access to the Americas and top markets around the world."
Built to serve global markets
Once in operation, the plant will produce an anticipated 1 billion pounds (470,000 metric tons) of PO and 2.2 billion pounds (1 million metric tons) of TBA annually. PO is used in the manufacture of bedding, furniture, carpeting, coatings, building materials and adhesives, while the TBA will be converted to two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane gasoline components that help gasoline burn cleaner and reduce emissions from automobiles.
LyondellBasell plans to sell the PO and derivative products to both domestic and global customers, while the oxyfuels will be primarily sold into Latin America and Asia. A portion of the TBA will remain in the domestic market in the form of high purity isobutylene which is used in tires and lubricants.
The majority of the products will be exported via the Houston Ship Channel.
Project overview
The PO/TBA project will have a split facility design to optimize product balances and realize synergies between LyondellBasell sites. The proposed location for the PO/TBA plant is the LyondellBasell Channelview Complex located in Channelview, Texas. The associated ethers unit, which will convert TBA to oxyfuels, is proposed for the company's Bayport Complex near Pasadena, Texas.
The company has completed front-end engineering design work and received the required environmental permits. Site preparation is underway and construction is expected to begin during the second half of 2018. It is anticipated the project will be completed by the middle of 2021. Final site selection is contingent upon final approval of certain economic incentives by the state of Texas.
The PO/TBA project is part of LyondellBasell's $5 billion organic growth program taking place on the U.S. Gulf Coast. LyondellBasell recently completed ethylene expansion projects at the company's La Porte, Channelview and Corpus Christi sites in Texas, finalizing a multi-year plan to increase annual ethylene capacity in the U.S. by 2 billion pounds (900,000 metric tons). Additionally, LyondellBasell began construction of a world-scale polyethylene (PE) plant at its La Porte Complex, which utilizes the company's proprietary Hyperzone PE technology and will more than double that site's PE capacity to 2 billion pounds (900,000 metric tons) per year upon completion in 2019.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
Forward-Looking Statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. 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, 2016, 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-to-build-the-worlds-largest-potba-plant-in-texas-300492083.html
SOURCE LyondellBasell
Article Date
7/21/2017LyondellBasell to Discuss Second-Quarter Results on Friday, July 28, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, July 14, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce second-quarter 2017 financial results before the U.S. market opens on Friday, July 28 to be followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details:
Friday, July 28, 2017
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.
Toll-Free Teleconference Dial-In Numbers:
United States: 800-475-8402
United Kingdom: 0800-279-3953
Netherlands: 0800-020-0428
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference.
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EDT July 28 until August 28 at 12:59 a.m. EDT.
The replay dial-in numbers are:
Toll Free: 800-294-5423
Toll: 402-220-9786
Passcode: 2526
About LyondellBasell:
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies. More information about LyondellBasell can be found at www.lyondellbasell.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/lyondellbasell-to-discuss-second-quarter-results-on-friday-july-28-2017-300488461.html
SOURCE LyondellBasell
Article Date
7/14/2017LyondellBasell to Provide Specialized Training to Cologne Firefighters
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and WESSELING, Germany, July 3, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced a donation of €36,000 to the Stadtfeuerwehrverband Köln (Cologne Firefighters Association) that will be used to provide specialized training for the professional and volunteer firefighters of the Cologne City Fire Brigade at the prestigious Falck Fire Academy in The Netherlands.
"We are deeply grateful for the service firefighters provide to the community and to our company," said Bob Patel, LyondellBasell's CEO. "One way we can honor their dedication is to ensure they receive training in the latest firefighting techniques. We are very pleased to assist the firefighters of Cologne as they support the continued safety of our 2,550 onsite workers as well as the broader community."
The donation was presented as part of LyondellBasell's annual Global Safety Day. This event provides the opportunity for employees and contractors to attend special workshops and training sessions about safety at home and at work. It serves as a reminder of the importance of safety and helps to drive improvements in occupational and process safety.
"LyondellBasell is committed to being a good neighbor in the communities where we operate," said Henk de Boon, LyondellBasell's Wesseling, Germany site manager. "This training program will not only benefit our local firefighters, but also the citizens in our community and the nearly 70,000 people working in the chemical industry locally."
Johannes Feyrer, managing director of the Cologne City firefighting association said, "I am impressed by this unprecedented support from LyondellBasell. This generous donation represents a very special form of appreciation for the work of the 2,000 professional and volunteer firefighters in the City of Cologne. This training allows us to provide better service to the community and increase the safety of the firefighters in action. It also enables us to effectively collaborate better with the firefighters from the various chemical companies."
The Falck Fire Academy (formerly known as Falck Risc) offers consultancy, education and training for emergency organizations worldwide in the prevention and management of emergency situations.
The donation of training is LyondellBasell's most recent effort to partner with the City Fire Brigade of Cologne. The company regularly coordinates with the fire brigades in the region to cross train at its Wesseling and Knapsack, Germany facilities in order to increase overall response effectiveness.
LyondellBasell's Wesseling site is the company's largest facility in Europe. Many of the employees serve as volunteer firefighters in their local communities. The site manufactures film used for food packaging, pipe materials used in municipal water systems and industrial heating systems, and products for the healthcare industry.
LyondellBasell is committed to supporting first responders globally and earlier this year the company announced a donation to fund specialized training for six fire departments in the Houston, Texas region at the Texas A&M Engineering Extension Service (TEEX), an internationally-recognized leader in emergency response training and firefighting.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin and polypropylene technologies.
SOURCE LyondellBasell
Article Date
7/3/2017LyondellBasell Announces Increase to Quarterly Dividend and Shareholder Approval of New Share Repurchase Program
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, May 24, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare a dividend of $0.90 per share, representing a 5.9 percent increase over the company's first quarter 2017 dividend. The interim dividend will be paid June 12, 2017 to shareholders of record June 5, 2017, with an ex-dividend date of June 1, 2017.
"This dividend increase represents the eighth increase since we began paying dividends in 2011," said Bob Patel, LyondellBasell CEO. "The increase announced today reflects our commitment to provide strong returns to our shareholders and the confidence we have in our ability to consistently generate strong cash flows through market cycles."
The company also announced that at its Annual General Meeting on May 24, 2017, shareholders approved a new share repurchase program authorizing the company to repurchase up to 10 percent of the company's shares over the next 18 months. The repurchases will be executed from time to time through open market or privately negotiated transactions.
The amount and timing of future share repurchases and dividends will depend on, and be subject to, market conditions, general economic conditions, applicable legal requirements and other corporate considerations. The share repurchase program and dividend policy may be suspended or discontinued at any time. This share repurchase program does not obligate LyondellBasell to acquire any particular amount of shares. LyondellBasell had approximately 401 million shares outstanding as of May 22, 2017.
This press release contains forward-looking statements. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ from forward-looking statements include, but are not limited to, availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and potential governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments; the ability to comply with the terms of our credit facilities and other financing arrangements; the ability to implement business strategies; and other factors affecting our business generally as set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2016, 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.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies and a member of the S&P 500 Index. LyondellBasell (www.lyb.com) 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.
SOURCE LyondellBasell
Article Date
5/24/2017LyondellBasell to Address Bernstein 33rd Annual Strategic Decisions Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, May 23, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that Chief Executive Officer Bob Patel will address investors at the Bernstein 33rd Annual Strategic Decisions Conference on June 1, 2017 at 1:00 p.m. EST. The conference will take place at The Grand Hyatt New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.lyondellbasell.com/en/investors/investor-events/, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies and a member of the S&P 500 Index. LyondellBasell (www.lyb.com) 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.
SOURCE LyondellBasell
Article Date
5/23/20175/22/2017 - LyondellBasell Receives Five Top Safety Awards
LyondellBasell Receives Five Top Safety Awards
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 22, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies today announced that it has received five top safety awards from the American Fuel and Petrochemical Manufacturers (AFPM). The AFPM's Distinguished Safety Awards (DSA) recognize a superior level of personal and process safety performance in the domestic refining and petrochemical manufacturing industries. The awards were announced at the AFPM National Safety Conference in New Orleans.
"At LyondellBasell, we firmly believe that a strong safety culture ultimately delivers stronger operational performance," said Bob Patel, LyondellBasell's CEO. "This award isn't just about a company accomplishment; it's far bigger than that. This is really about our employees going home safely every day. In my view there is no higher priority."
LyondellBasell's Lake Charles Plant in Westlake, La., received the 2016 Distinguished Safety Award, the highest award given by AFPM. The Lake Charles Plant is one of only four in the industry to receive the prestigious award for the year.
The Elite Gold Safety Award, which recognizes facilities with safety performance in the top one percentile, was presented to LyondellBasell's La Porte, Texas, facility, and the Elite Silver Safety Award, which recognizes facilities with safety performance in the top five percent, was presented to the company's Edison, N.J., Tuscola, Ill., and Alvin, Texas, facilities.
The AFPM Safety Awards Program is part of a comprehensive safety program developed by AFPM's Safety and Health Committee to promote accident prevention in the petroleum refining and petrochemical manufacturing industries.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies and a member of the S&P 500. 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. More information about LyondellBasell can be found at www.lyb.com.
SOURCE LyondellBasell
Article Date
5/22/2017LyondellBasell to Address Barclays Americas Select Franchise Conference 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, May 16, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced that Thomas Aebischer, chief financial officer, will address investors at the Barclays Americas Select Franchise Conference on May 17, 2017 at 10:30 a.m. BST (5:30 a.m. EDT). The conference will take place at The Langham London. The presentation may include forward looking information.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://www.lyondellbasell.com/en/investors/investor-events/, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies. LyondellBasell (www.lyb.com) 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.
SOURCE LyondellBasell
Article Date
5/16/2017LyondellBasell Begins Construction of Hyperzone PE Plant at its La Porte Complex
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 15, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, has broken ground on the first commercial Hyperzone polyethylene (PE) plant at its La Porte, Texas, complex. The plant will be capable of producing 1.1 billion pounds (500,000 metric tons) of high density polyethylene (HDPE) annually and will employ LyondellBasell's new proprietary Hyperzone PE technology that provides enhanced material performance. Startup of the plant is planned for 2019.
"Today represents the launch of our latest innovation in plastics technology," said Bob Patel, LyondellBasell CEO. "The new Hyperzone PE plant will produce a better plastic that advances solutions to modern challenges, like protecting the purity of water supplies through stronger and more versatile pipes and ensuring the freshness of bulk foods by providing tough, crack-resistant containers for storage. This is truly a global effort developed by an international team, built to serve worldwide markets."
Hyperzone PE technology enables customers to produce cost-effective, light weight plastics that are strong, durable and widely recyclable. The new Hyperzone PE technology also enables the production of a broad spectrum of HDPE products in one single plant whereas previous technologies require multiple plants.
LyondellBasell is a global leader in the development and licensing of polyolefin processes. The company plans to make the Hyperzone process technology available for licensing in the future. The technology took years to advance to commercialization and was a product of LyondellBasell's global research and development teams in Ferrara, Italy; Frankfurt, Germany; Cincinnati, Ohio; and Houston, Texas.
The company chose to build the new plant at its existing La Porte Complex because of its proximity to price-advantaged U.S. feedstocks and the transportation infrastructure needed to ship product to markets across the globe. The project will create up to 1,000 jobs at the peak of construction and 75 permanent positions.
The La Porte Complex is one of LyondellBasell's largest manufacturing facilities spanning approximately 550 acres. The complex has two docks on the Houston Ship Channel and truck and rail transportation capabilities. Once the Hyperzone PE plant is complete, the La Porte Complex will more than double its annual PE capacity to 2 billion pounds (900,000 metric tons). LyondellBasell currently produces a total of 7 billion pounds (3 million metric tons) of HDPE annually, including its share of capacity through joint venture facilities. The company is a leading worldwide producer of all forms of PE with an annual capacity of 12 billion pounds (5 million metric tons).
The Hyperzone PE plant is part of LyondellBasell's plan for $3-5 billion of investments along the U.S. Gulf Coast. The company recently completed work on ethylene expansion projects at its La Porte, Channelview and Corpus Christi sites in Texas. Additionally, development of a world-scale propylene oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is progressing and a final PO/TBA investment decision is expected in the second half of 2017.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies and a member of the S&P 500. 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. More information about LyondellBasell can be found at www.lyb.com.
Hyperzone is a trademark owned by the LyondellBasell Industries group of companies.
Forward-Looking Statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. 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, 2016, 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
SOURCE LyondellBasell
Article Date
5/15/2017LyondellBasell Among Top Donors to United Way of Greater Houston Campaign for 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 3, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced a $1.7 million donation to the United Way of Greater Houston for its 2016 campaign. As part of the company's commitment to being a responsible, good neighbor, LyondellBasell employees held United Way campaigns at 23 company sites across the United States and raised a total of $2.65 million.
"United Way mobilizes the caring power of communities to advance the common good," said Bob Patel, LyondellBasell CEO. "LyondellBasell is proud to support the United Way and we are personally proud of our employees' generosity as we work to be a good neighbor in the communities where we operate."
The company's 2016 national campaign was led by Jeffrey Kaplan, LyondellBasell's executive vice president and chief legal counsel. Donations to the United Way of Greater Houston come from multiple LyondellBasell manufacturing sites, including the Channelview Complex, the Houston Refinery and the La Porte Complex, as well as the company's operational headquarter offices in downtown Houston.
"As a company we are deeply committed to United Way's mission of improving lives and changing communities," said Dan Coombs, LyondellBasell executive vice president of Global Manufacturing, Projects, Refining and Technology; and United Way of Greater Houston board member. "I am honored to be a member of the organization's board and play a leadership role in making that mission a reality in our communities."
"The generous support of LyondellBasell and its employees has helped United Way of Greater Houston improve millions of lives and create lasting change in key areas," said Anna M. Babin, president and CEO, United Way of Greater Houston. "From ensuring that our neighbors' basic needs are met to initiatives that help families achieve financial stability and self-sufficiency, our reach in the community is greater because of the support of companies like LyondellBasell."
"When companies like LyondellBasell step up and pledge their time and talents to United Way, our entire community benefits," said John Gremp, 2016 chairman, United Way of Greater Houston Community Campaign. "United Way of Greater Houston helps 2 million people each year and we are proud to partner with LyondellBasell and its employees to make that work possible."
LyondellBasell's global philanthropic efforts are focused in the areas of education, health, environment and providing support for first responders. Over the last three years, the company has supported more than 990 charities around the world, while more than 9,200 employees have donated approximately 40,000 volunteer hours to local community service projects. The company is an active supporter of many local Houston organizations, including Junior Achievement of Southeast Texas, the Houston Food Bank, Theater Under the Stars and the Astros Foundation. The company has also actively supported the Harris County Sheriff's Industrial Unit Deputies, the Houston Police Department and the Houston Fire Department through grants that have enabled the purchase of needed safety equipment and specialized training.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies and a member of the S&P 500. 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. More information about LyondellBasell can be found at www.lyondellbasell.com.
About the United Way of Greater Houston
For more than 90 years, United Way of Greater Houston has been a leader and trusted partner in improving lives, tackling key community social issues and making a lasting difference. United Way of Greater Houston, last year alone, touched the lives of more than 2.4 million of the neighbors in the Bay Area and in Fort Bend, Harris, Montgomery and Waller counties. United Way focuses on strengthening the community by developing children and youth to their full potential, creating strong families and safe neighborhoods, sustaining senior independence and rebuilding people's lives in times of crisis. The United Way of Greater Houston is the best way to make the biggest difference in our community, changing Houston for good. For more information, please visit, http://www.unitedwayhouston.org.
SOURCE LyondellBasell
Article Date
5/3/2017LyondellBasell Reports First-Quarter 2017 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, April 28, 2017 /PRNewswire/ --
First Quarter 2017 Highlights
Comparisons with the prior quarter and first quarter 2016 are available in the following table:
|
Table 1 - Earnings Summary | |||||
|
Three Months Ended |
|||||
|
March 31, |
December 31, |
March 31, |
|||
|
Millions of U.S. dollars (except share data) |
2017 |
2016 |
2016 |
||
|
Sales and other operating revenues |
$8,430 |
$7,747 |
$6,743 |
||
|
Net income(a) |
797 |
763 |
1,030 |
||
|
Income from continuing operations(b) |
805 |
770 |
1,030 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||
|
Net income(c) |
1.98 |
1.87 |
2.37 |
||
|
Income from continuing operations(b) |
2.00 |
1.89 |
2.37 |
||
|
Diluted share count (millions) |
403 |
407 |
434 |
||
|
EBITDA(d) |
1,617 |
1,406 |
1,807 |
||
|
Excluding LCM Impact: |
|||||
|
LCM, pre-tax(e) |
- - |
29 |
68 |
||
|
Income from continuing operations(b) |
805 |
788 |
1,077 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||
|
Income from continuing operations(b) |
2.00 |
1.94 |
2.48 |
||
|
EBITDA(d) |
1,617 |
1,435 |
1,875 |
||
|
(a) |
Includes net income attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 10. | ||||
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. | ||||
|
(c) |
Includes diluted earnings (loss) 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. | ||||
|
(e) |
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." | ||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2017 of $0.8 billion, or $2.00 per share. First quarter 2017 EBITDA was $1.6 billion. During the quarter, the company redeemed $1 billion of outstanding 5.0% bonds that were due in 2019 with a new $1 billion ten-year bond issue at an after-tax cost of $106 million that reduced earnings by $0.26 per share.
"We began the year with improved results in our three largest segments. Olefins and polyolefins demand continued to be solid across all regions and we increased volumes from our Corpus Christi ethylene expansion. The Intermediates and Derivatives segment benefitted from improved first quarter profitability for styrene and methanol," said Bob Patel, LyondellBasell CEO and chairman of the management board.
"The first quarter marks the completion of several quarters of significant maintenance activity across our system. Scheduled maintenance on our U.S. butadiene recovery plant reduced our capture of high margins during the first quarter. Our refinery performed planned maintenance on the fluid unit, completed repairs on one of our two crude distillation units and successfully commissioned our investment for the production of Tier 3 low-sulfur gasoline. We look forward to the refinery returning to more consistent operations," said Patel.
OUTLOOK
"During April, global olefin and polyolefin industry conditions continue to remain favorable. While first quarter maintenance was relatively light for the U.S. ethylene industry, industry schedules show higher planned downtime in Europe and Asia during the second quarter. With a lighter maintenance schedule ahead for LyondellBasell, we look forward to benefitting from the full availability of our global assets," 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 and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & Polyolefins - Americas (O&P-Americas) – Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
Table 2 - O&P–Americas Financial Overview | |||||
|
Three Months Ended |
|||||
|
March 31, |
December 31, |
March 31, |
|||
|
Millions of U.S. dollars |
2017 |
2016 |
2016 |
||
|
Operating income |
$559 |
$458 |
$707 |
||
|
EBITDA |
723 |
563 |
878 |
||
|
LCM, pre-tax |
- - |
29 |
- - |
||
|
EBITDA excluding LCM |
723 |
592 |
878 |
||
Three months ended March 31, 2017 versus three months ended December 31, 2016 – EBITDA increased $131 million versus the fourth quarter 2016, excluding a favorable $29 million quarter to quarter variance as a result of a 2016 LCM inventory adjustment. First quarter 2017 included a $31 million gain on the sale of property in Lake Charles, Louisiana. Fourth quarter 2016 results reflected a pension settlement charge of $23 million and a last-in, first-out (LIFO) inventory charge of $20 million. Compared to the prior period, olefin results increased approximately $95 million. Ethylene sales increased 5 percent following the completion of planned maintenance and higher rates following our expansion at Corpus Christi. Ethylene margins improved by approximately 3 cents per pound with rising prices for ethylene and co-products. Combined polyolefin results declined by approximately $45 million. Ethylene and propylene feedstock price increases outpaced higher polyolefin prices, resulting in a decline in polyethylene and polypropylene spreads of approximately 2 cents per pound and 4 cents per pound respectively, which were partially offset by small volume improvements. Joint venture equity income increased by $9 million.
Three months ended March 31, 2017 versus three months ended March 31, 2016 – EBITDA decreased $155 million versus the first quarter 2016. First quarter 2017 included a $31 million gain on the sale of property in Lake Charles, Louisiana. The first quarter of 2016 included a $57 million gain on the sale of the Petroken polypropylene business. Olefin results increased by approximately $50 million primarily due to an increase in ethylene margin of 3 cents per pound. Combined polyolefin results declined approximately $165 million from very strong levels in the prior year period. Polyethylene and polypropylene spreads declined approximately 3 cents per pound and 14 cents per pound respectively. Joint venture equity income declined by $8 million.
Olefins & Polyolefins - Europe, Asia, International (O&P-EAI) – Our O&P–EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
|
Table 3 - O&P–EAI Financial Overview | ||||
|
Three Months Ended | ||||
|
March 31, |
December 31, |
March 31, | ||
|
Millions of U.S. dollars |
2017 |
2016 |
2016 | |
|
Operating income |
$401 |
$266 |
$358 | |
|
EBITDA |
529 |
398 |
509 | |
|
LCM, pre-tax |
- - |
- - |
40 | |
|
EBITDA excluding LCM |
529 |
398 |
549 | |
Three months ended March 31, 2017 versus three months ended December 31, 2016 – EBITDA increased by $131 million versus the fourth quarter 2016. Fourth quarter 2016 results reflected a LIFO inventory charge of $17 million and a pension settlement charge of $8 million. Olefin results increased approximately $60 million as ethylene prices increased nearly 3 cents per pound and higher co-products value offset higher naphtha costs. Olefins also benefitted from increased volume due to the absence of fourth quarter maintenance. Combined polyolefin results increased approximately $50 million primarily due to increased sales volumes. Joint venture equity income declined by $4 million.
Three months ended March 31, 2017 versus three months ended March 31, 2016 – EBITDA decreased by $20 million versus the first quarter 2016, excluding a favorable $40 million quarter to quarter variance as a result of a 2016 LCM inventory adjustment. The first quarter of 2016 benefitted from a $21 million gain on the sale of the Petroken polypropylene compounding business. Olefin results increased by approximately $20 million as a result of increased sales volumes due to the planned maintenance which occurred in the first quarter of 2016 and improved ethylene prices. Combined polyolefin results declined by approximately $20 million as polyethylene spreads declined. Joint venture equity income was relatively unchanged.
Intermediates & Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
Table 4 - I&D Financial Overview | ||||
|
Three Months Ended |
||||
|
March 31, |
December 31, |
March 31, |
||
|
Millions of U.S. dollars |
2017 |
2016 |
2016 |
|
|
Operating income |
$269 |
$236 |
$255 |
|
|
EBITDA |
339 |
306 |
326 |
|
|
LCM, pre-tax |
- - |
- - |
28 |
|
|
EBITDA excluding LCM |
339 |
306 |
354 |
|
Three months ended March 31, 2017 versus three months ended December 31, 2016 – EBITDA increased $33 million versus the fourth quarter 2016. Fourth quarter 2016 results reflected a LIFO inventory charge of $16 million and a pension settlement charge of $16 million. PO and derivatives results improved by approximately $15 million. In intermediate chemicals, styrene and methanol were the primary drivers behind approximately $65 million of margin improvement over the fourth quarter. These gains in the PO and derivatives and intermediate chemicals businesses were offset by approximately $40 million of charges in the first quarter and $30 million of gains in the fourth quarter related to recovery of precious metals after catalyst changes. Oxyfuels and related products results declined approximately $10 million on lower sales volumes. Joint venture equity income was relatively unchanged.
Three months ended March 31, 2017 versus three months ended March 31, 2016 – EBITDA decreased $15 million versus the first quarter 2016, excluding a favorable $28 million quarter to quarter variance as a result of an LCM inventory adjustment. PO and derivatives results declined by approximately $15 million. In intermediate chemicals, strong margins in styrene and methanol drove approximately $35 million of improvement over the first quarter of 2016. The PO and derivatives and intermediate chemicals businesses incurred approximately $30 million of increased charges related to recovery of precious metals after catalyst changes. Oxyfuels and related products results were relatively unchanged. Joint venture equity income was relatively unchanged.
Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.
|
Table 5 - Refining Financial Overview | ||||
|
Three Months Ended |
||||
|
March 31, |
December 31, |
March 31, |
||
|
Millions of U.S. dollars |
2017 |
2016 |
2016 |
|
|
Operating income (loss) |
($70) |
$40 |
($30) |
|
|
EBITDA |
(30) |
81 |
14 |
|
|
EBITDA excluding LCM |
(30) |
81 |
14 |
|
Three months ended March 31, 2017 versus three months ended December 31, 2016 – EBITDA decreased $111 million versus the fourth quarter 2016. Fourth quarter 2016 results reflected a LIFO benefit of $46 million primarily from low-priced crude inventory consumption, and a pension settlement charge of $8 million. Underlying operational performance accounted for approximately $60 million of the decline. The Houston refinery operated at 202,000 barrels per day, 26,000 barrels per day less than the prior quarter due to planned maintenance. Planned maintenance on the fluid catalytic cracker reduced product yields and gasoline production.
Three months ended March 31, 2017 versus three months ended March 31, 2016 – EBITDA decreased $44 million versus the first quarter 2016. First quarter 2017 throughput increased by 16,000 barrels per day with planned maintenance impacting both periods. Planned maintenance on the fluid catalytic cracker reduced product yields and gasoline production to outweigh the benefits of the higher throughput.
Technology Segment – Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
Table 6 - Technology Financial Overview | |||||
|
Three Months Ended |
|||||
|
March 31, |
December 31, |
March 31, |
|||
|
Millions of U.S. dollars |
2017 |
2016 |
2016 |
||
|
Operating income |
$50 |
$51 |
$73 |
||
|
EBITDA |
60 |
61 |
83 |
||
Three months ended March 31, 2017 versus three months ended December 31, 2016 – EBITDA decreased by $1 million.
Three months ended March 31, 2017 versus three months ended March 31, 2016 – EBITDA decreased by $23 million due to the timing of licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $421 million during the first quarter 2017. Our cash and liquid investment balance was $2.2 billion at March 31, 2017. We repurchased 1.5 million ordinary shares during the first quarter 2017. There were 403 million common shares outstanding as of March 31, 2017. The company paid dividends of $343 million during the first quarter of 2017.
CONFERENCE CALL
LyondellBasell will host a conference call April 28 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor Relations David Kinney.
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 6934553.
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. EDT April 28 until May 28 at 11:59 p.m. EDT. The replay dial-in numbers are 800-839-9140 (U.S.) and +1 203-369-3624 (international). The pass code for each is 2526.
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) 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, 2016, 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 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 related to our use of LIFO accounting and the recent decline 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) | ||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
||||||||||||||||
|
Sales and other operating revenues: |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,115 |
$ |
2,211 |
$ |
2,342 |
$ |
2,409 |
$ |
9,077 |
$ |
2,604 |
||||||||||
|
Olefins & Polyolefins - EAI |
2,578 |
2,721 |
2,634 |
2,646 |
10,579 |
3,024 |
||||||||||||||||
|
Intermediates & Derivatives |
1,702 |
1,769 |
1,805 |
1,950 |
7,226 |
2,150 |
||||||||||||||||
|
Refining |
955 |
1,289 |
1,330 |
1,561 |
5,135 |
1,353 |
||||||||||||||||
|
Technology |
132 |
129 |
102 |
116 |
479 |
120 |
||||||||||||||||
|
Other/elims |
(739) |
(791) |
(848) |
(935) |
(3,313) |
(821) |
||||||||||||||||
|
Continuing Operations |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
||||||||||
|
Operating income (loss): |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
707 |
$ |
646 |
$ |
582 |
$ |
458 |
$ |
2,393 |
$ |
559 |
||||||||||
|
Olefins & Polyolefins - EAI |
358 |
423 |
447 |
266 |
1,494 |
401 |
||||||||||||||||
|
Intermediates & Derivatives |
255 |
327 |
240 |
236 |
1,058 |
269 |
||||||||||||||||
|
Refining |
(30) |
(53) |
(56) |
40 |
(99) |
(70) |
||||||||||||||||
|
Technology |
73 |
62 |
35 |
51 |
221 |
50 |
||||||||||||||||
|
Other |
(3) |
(2) |
1 |
(3) |
(7) |
1 |
||||||||||||||||
|
Continuing Operations |
$ |
1,360 |
$ |
1,403 |
$ |
1,249 |
$ |
1,048 |
$ |
5,060 |
$ |
1,210 |
||||||||||
|
Depreciation and amortization: |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
90 |
$ |
88 |
$ |
87 |
$ |
97 |
$ |
362 |
$ |
118 |
||||||||||
|
Olefins & Polyolefins - EAI |
55 |
58 |
58 |
58 |
229 |
59 |
||||||||||||||||
|
Intermediates & Derivatives |
70 |
69 |
62 |
68 |
269 |
69 |
||||||||||||||||
|
Refining |
43 |
40 |
40 |
40 |
163 |
40 |
||||||||||||||||
|
Technology |
10 |
11 |
10 |
10 |
41 |
10 |
||||||||||||||||
|
Continuing Operations |
$ |
268 |
$ |
266 |
$ |
257 |
$ |
273 |
$ |
1,064 |
$ |
296 |
||||||||||
|
EBITDA: (b) |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
878 |
$ |
754 |
$ |
682 |
$ |
563 |
$ |
2,877 |
$ |
723 |
||||||||||
|
Olefins & Polyolefins - EAI |
509 |
576 |
584 |
398 |
2,067 |
529 |
||||||||||||||||
|
Intermediates & Derivatives |
326 |
397 |
304 |
306 |
1,333 |
339 |
||||||||||||||||
|
Refining |
14 |
(13) |
(10) |
81 |
72 |
(30) |
||||||||||||||||
|
Technology |
83 |
73 |
45 |
61 |
262 |
60 |
||||||||||||||||
|
Other |
(3) |
(4) |
1 |
(3) |
(9) |
(4) |
||||||||||||||||
|
Continuing Operations |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
||||||||||
|
Capital, turnarounds and IT deferred spending: |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
303 |
$ |
339 |
$ |
384 |
$ |
350 |
$ |
1,376 |
$ |
202 |
||||||||||
|
Olefins & Polyolefins - EAI |
81 |
60 |
48 |
72 |
261 |
47 |
||||||||||||||||
|
Intermediates & Derivatives |
76 |
80 |
90 |
87 |
333 |
77 |
||||||||||||||||
|
Refining |
57 |
71 |
51 |
45 |
224 |
84 |
||||||||||||||||
|
Technology |
6 |
9 |
9 |
12 |
36 |
7 |
||||||||||||||||
|
Other |
4 |
4 |
4 |
1 |
13 |
4 |
||||||||||||||||
|
Continuing Operations |
$ |
527 |
$ |
563 |
$ |
586 |
$ |
567 |
$ |
2,243 |
$ |
421 |
||||||||||
|
(a) |
EBITDA for the first quarter of 2016 includes a pre-tax LCM charge of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 EBITDA also includes a pre-tax LCM charge of $29 million. See Tables 2 through 6 for LCM adjustments recorded for each segment. | ||||||||||||||||||||||
|
(b) |
See Table 8 for EBITDA calculation. | ||||||||||||||||||||||
|
Table 8 - EBITDA Calculation | ||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
||||||||||||||||
|
Net income(a) |
$ |
1,030 |
$ |
1,091 |
$ |
953 |
$ |
763 |
$ |
3,837 |
$ |
797 |
||||||||||
|
Loss from discontinued operations, net of tax |
- - |
1 |
2 |
7 |
10 |
8 |
||||||||||||||||
|
Income from continuing operations(a) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
||||||||||||||||
|
Provision for income taxes |
432 |
346 |
326 |
282 |
1,386 |
315 |
||||||||||||||||
|
Depreciation and amortization |
268 |
266 |
257 |
273 |
1,064 |
296 |
||||||||||||||||
|
Interest expense, net(b) |
77 |
79 |
68 |
81 |
305 |
201 |
||||||||||||||||
|
EBITDA(c) |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 |
$ |
1,617 |
||||||||||
|
(a) |
The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 also includes an $18 million after-tax LCM charge. | ||||||||||||||||||||||
|
(b) |
Includes pre-tax charges totalling $113 million related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. | ||||||||||||||||||||||
|
(c) |
The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. Fourth quarter 2016 also includes a pre-tax LCM charge of $29 million. | ||||||||||||||||||||||
|
Table 9 - Selected Segment Operating Information | |||||||||||||||||
|
2016 |
2017 | ||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
||||||||||||
|
Olefins and Polyolefins - Americas |
|||||||||||||||||
|
Volumes (million pounds) |
|||||||||||||||||
|
Ethylene produced |
2,392 |
1,899 |
1,939 |
2,173 |
8,403 |
2,486 |
|||||||||||
|
Propylene produced |
832 |
748 |
575 |
660 |
2,815 |
597 |
|||||||||||
|
Polyethylene sold |
1,554 |
1,426 |
1,517 |
1,485 |
5,982 |
1,533 |
|||||||||||
|
Polypropylene sold |
612 |
582 |
659 |
623 |
2,476 |
644 |
|||||||||||
|
Benchmark Market Prices |
|||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
33.63 |
46.01 |
44.94 |
49.29 |
43.56 |
51.78 |
|||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
35.34 |
47.39 |
46.52 |
50.60 |
45.03 |
53.39 |
|||||||||||
|
Houston Ship Channel natural gas (USD per million BTUs) |
1.93 |
2.06 |
2.79 |
3.01 |
2.45 |
2.96 |
|||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
9.8 |
12.0 |
10.6 |
14.3 |
11.7 |
11.8 |
|||||||||||
|
U.S. ethylene (cents/pound) |
26.7 |
30.3 |
33.0 |
32.7 |
30.7 |
33.1 |
|||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
52.3 |
59.0 |
60.7 |
58.3 |
57.6 |
57.3 |
|||||||||||
|
U.S. propylene (cents/pound) |
31.0 |
32.7 |
37.8 |
36.2 |
34.4 |
47.2 |
|||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.8 |
61.7 |
60.2 |
55.8 |
61.4 |
66.2 |
|||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
|||||||||||||||||
|
Volumes (million pounds) |
|||||||||||||||||
|
Ethylene produced |
950 |
941 |
1,066 |
946 |
3,903 |
1,022 |
|||||||||||
|
Propylene produced |
555 |
577 |
649 |
563 |
2,344 |
598 |
|||||||||||
|
Polyethylene sold |
1,434 |
1,386 |
1,315 |
1,330 |
5,465 |
1,421 |
|||||||||||
|
Polypropylene sold |
1,773 |
1,617 |
1,509 |
1,582 |
6,481 |
1,714 |
|||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
|||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
16.3 |
21.2 |
17.9 |
23.8 |
19.8 |
22.7 |
|||||||||||
|
Western Europe ethylene |
38.4 |
41.1 |
42.3 |
43.1 |
41.2 |
46.2 |
|||||||||||
|
Western Europe polyethylene [high density] |
55.4 |
57.6 |
55.7 |
55.2 |
56.0 |
58.2 |
|||||||||||
|
Western Europe propylene |
26.3 |
28.8 |
30.7 |
33.3 |
29.8 |
37.0 |
|||||||||||
|
Western Europe polypropylene [homopolymer] |
46.5 |
49.5 |
49.5 |
51.7 |
49.3 |
56.3 |
|||||||||||
|
Intermediates and Derivatives |
|||||||||||||||||
|
Volumes (million pounds unless otherwise indicated) |
|||||||||||||||||
|
Propylene oxide and derivatives |
793 |
743 |
752 |
749 |
3,037 |
786 |
|||||||||||
|
Intermediate Chemicals: |
|||||||||||||||||
|
Ethylene oxide and derivatives |
301 |
233 |
224 |
329 |
1,087 |
292 |
|||||||||||
|
Styrene monomer |
917 |
933 |
911 |
933 |
3,694 |
992 |
|||||||||||
|
Acetyls |
702 |
821 |
751 |
776 |
3,050 |
825 |
|||||||||||
|
Oxyfuels and Related Products: |
|||||||||||||||||
|
TBA Intermediates |
415 |
391 |
410 |
361 |
1,577 |
383 |
|||||||||||
|
MTBE/ETBE (million gallons) |
270 |
278 |
298 |
264 |
1,110 |
239 |
|||||||||||
|
Benchmark Market Margins (cents per gallon) |
|||||||||||||||||
|
MTBE - Northwest Europe |
44.4 |
78.7 |
55.3 |
50.6 |
57.2 |
49.5 |
|||||||||||
|
Refining |
|||||||||||||||||
|
Volumes (thousands of barrels per day) |
|||||||||||||||||
|
Heavy crude oil processing rate |
186 |
183 |
209 |
228 |
201 |
202 |
|||||||||||
|
Benchmark Market Margins |
|||||||||||||||||
|
Light crude oil - 2-1-1 |
8.67 |
11.52 |
11.46 |
11.20 |
10.73 |
11.86 |
|||||||||||
|
Light crude oil - Maya differential |
9.19 |
9.55 |
7.52 |
7.80 |
8.51 |
8.78 |
|||||||||||
|
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 | ||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
||||||||||||||||
|
Sales and other operating revenues |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 |
$ |
8,430 |
||||||||||
|
Cost of sales(a) |
5,166 |
5,702 |
5,903 |
6,420 |
23,191 |
6,991 |
||||||||||||||||
|
Selling, general and administrative expenses |
193 |
199 |
188 |
253 |
833 |
204 |
||||||||||||||||
|
Research and development expenses |
24 |
24 |
25 |
26 |
99 |
25 |
||||||||||||||||
|
Operating income(a) |
1,360 |
1,403 |
1,249 |
1,048 |
5,060 |
1,210 |
||||||||||||||||
|
Income from equity investments |
91 |
117 |
81 |
78 |
367 |
81 |
||||||||||||||||
|
Interest expense, net(b) |
(77) |
(79) |
(68) |
(81) |
(305) |
(201) |
||||||||||||||||
|
Other income (expense), net(c) |
88 |
(3) |
19 |
7 |
111 |
30 |
||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) (c) |
1,462 |
1,438 |
1,281 |
1,052 |
5,233 |
1,120 |
||||||||||||||||
|
Provision for income taxes |
432 |
346 |
326 |
282 |
1,386 |
315 |
||||||||||||||||
|
Income from continuing operations(d) |
1,030 |
1,092 |
955 |
770 |
3,847 |
805 |
||||||||||||||||
|
Loss from discontinued operations, net of tax |
- - |
(1) |
(2) |
(7) |
(10) |
(8) |
||||||||||||||||
|
Net income(d) |
1,030 |
1,091 |
953 |
763 |
3,837 |
797 |
||||||||||||||||
|
Income attributable to non-controlling interests |
- - |
- - |
(1) |
- - |
(1) |
- - |
||||||||||||||||
|
Net income attributable to the Company shareholders(d) |
$ |
1,030 |
$ |
1,091 |
$ |
952 |
$ |
763 |
$ |
3,836 |
$ |
797 |
||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $68 million and $29 million in the first and fourth quarters of 2016, respectively. A pre-tax benefit of $68 million in the second quarter of 2016 reflects the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. | ||||||||||||||||||||||
|
(b) |
Includes pre-tax charges totalling $113 million related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. | ||||||||||||||||||||||
|
(c) |
Includes a pre-tax gain of $31 million in the first quarter of 2017 on the sale of our Lake Charles, Louisiana site currently used as a logistics terminal and a $78 million gain in the first quarter of 2016 on the sale of our wholly owned Argentine subsidiary. | ||||||||||||||||||||||
|
(d) |
Amounts presented herein include after-tax LCM charges of $47 million and $18 million in the first and fourth quarters of 2016, respectively. The second quarter of 2016 includes an after tax benefit of $47 million for the partial reversal of the first quarter 2016 LCM adjustment resulting from price recoveries during the period. The first quarter of 2016 also includes a $78 million gain on the sale of our wholly owned Argentine subsidiary. The first quarter of 2017 includes after-tax charges totalling $106 million related to the repayment of $1,000 million aggregate principal amount of our outstanding 5% senior notes due 2019. | ||||||||||||||||||||||
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations | ||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||
|
Annual |
||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Impact |
Q1 |
||||||||||||||
|
Pretax charges (benefits): |
||||||||||||||||||||
|
Charges and premiums related to repayment of debt |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
113 |
||||||||
|
Out of period tax adjustment |
- - |
- - |
- - |
61 |
74 |
- - |
||||||||||||||
|
Gain on sale of wholly owned subsidiary |
(78) |
- - |
- - |
- - |
(78) |
- - |
||||||||||||||
|
Lower of cost or market inventory adjustment |
68 |
(68) |
- - |
29 |
29 |
- - |
||||||||||||||
|
Pension settlement charge |
- - |
- - |
- - |
58 |
58 |
- - |
||||||||||||||
|
Total pretax charges (benefits) |
(10) |
(68) |
- - |
148 |
83 |
113 |
||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(21) |
21 |
- - |
(32) |
(32) |
(7) |
||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
(31) |
$ |
(47) |
$ |
- - |
$ |
116 |
$ |
51 |
$ |
106 |
||||||||
|
Effect on diluted earnings per share |
$ |
0.07 |
$ |
0.11 |
$ |
- - |
$ |
(0.29) |
$ |
(0.12) |
$ |
(0.26) |
||||||||
|
Table 12 - Unaudited Cash Flow Information | ||||||||||||||||||||||
|
2016 |
2017 | |||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
||||||||||||||||
|
Net cash provided by operating activities |
$ |
1,300 |
$ |
1,261 |
$ |
1,332 |
$ |
1,713 |
$ |
5,606 |
$ |
613 |
||||||||||
|
Net cash used in investing activities |
(597) |
(471) |
(459) |
(770) |
(2,297) |
(539) |
||||||||||||||||
|
Net cash used in financing activities |
(333) |
(1,039) |
(1,195) |
(782) |
(3,349) |
(472) |
||||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information | |||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
|||||||||||||||||
|
(Millions of U.S. dollars) |
2016 |
2016 |
2016 |
2016 |
2017 |
||||||||||||||||
|
Cash and cash equivalents |
$ |
1,318 |
$ |
1,060 |
$ |
740 |
$ |
875 |
$ |
485 |
|||||||||||
|
Restricted cash |
4 |
4 |
4 |
3 |
1 |
||||||||||||||||
|
Short-term investments |
1,332 |
1,023 |
1,090 |
1,147 |
1,176 |
||||||||||||||||
|
Accounts receivable, net |
2,683 |
2,806 |
2,852 |
2,842 |
3,292 |
||||||||||||||||
|
Inventories |
3,978 |
4,009 |
4,015 |
3,809 |
3,875 |
||||||||||||||||
|
Prepaid expenses and other current assets |
1,009 |
1,081 |
852 |
923 |
852 |
||||||||||||||||
|
Total current assets |
10,324 |
9,983 |
9,553 |
9,599 |
9,681 |
||||||||||||||||
|
Property, plant and equipment, net |
9,373 |
9,681 |
10,057 |
10,137 |
10,361 |
||||||||||||||||
|
Investments and long-term receivables: |
|||||||||||||||||||||
|
Investment in PO joint ventures |
398 |
390 |
399 |
415 |
409 |
||||||||||||||||
|
Equity investments |
1,734 |
1,610 |
1,681 |
1,575 |
1,672 |
||||||||||||||||
|
Other investments and long-term receivables |
18 |
18 |
17 |
20 |
20 |
||||||||||||||||
|
Goodwill |
548 |
542 |
543 |
528 |
531 |
||||||||||||||||
|
Intangible assets, net |
618 |
588 |
562 |
550 |
517 |
||||||||||||||||
|
Other assets |
559 |
623 |
607 |
618 |
577 |
||||||||||||||||
|
Total assets |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
|||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
2 |
$ |
2 |
|||||||||||
|
Short-term debt |
594 |
616 |
621 |
594 |
611 |
||||||||||||||||
|
Accounts payable |
2,243 |
2,357 |
2,329 |
2,529 |
2,627 |
||||||||||||||||
|
Accrued liabilities |
1,600 |
1,374 |
1,357 |
1,415 |
1,139 |
||||||||||||||||
|
Total current liabilities |
4,441 |
4,351 |
4,310 |
4,540 |
4,379 |
||||||||||||||||
|
Long-term debt |
8,504 |
8,485 |
8,464 |
8,385 |
8,419 |
||||||||||||||||
|
Other liabilities |
2,125 |
2,143 |
2,151 |
2,113 |
2,130 |
||||||||||||||||
|
Deferred income taxes |
2,134 |
2,149 |
2,387 |
2,331 |
2,353 |
||||||||||||||||
|
Stockholders' equity |
6,344 |
6,283 |
6,082 |
6,048 |
6,462 |
||||||||||||||||
|
Non-controlling interests |
24 |
24 |
25 |
25 |
25 |
||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 |
$ |
23,768 |
|||||||||||
SOURCE LyondellBasell Industries
Article Date
4/28/2017LyondellBasell to Discuss First-Quarter Results on Friday, April 28, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, April 14, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce first-quarter 2017 financial results before the U.S. market opens on Friday, April 28 to be followed by a webcast and teleconference to discuss results at 11:00 a.m. EDT.
Teleconference and Webcast Details:
Friday, April 28, 2017
11:00 a.m. EDT
Hosted by David Kinney, Director, Investor Relations
Access the webcast 10 to 15 minutes prior to the call at www.lyb.com/earnings
Toll-Free Teleconference Dial-In Numbers:
United States: 888-677-1826
United Kingdom: 0800-279-9630
Netherlands: 0800-343-4364
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EDT April 28 until May 28 at 12:59 a.m. EDT.
The replay dial-in numbers are:
Toll Free: 800-839-9140
Toll: 203-369-3624
Passcode: 2526
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) 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.
SOURCE LyondellBasell
Article Date
4/14/2017LyondellBasell Joins the Astros Foundation Community Leaders Program
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, April 3, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemicals and refining companies, today announced it has joined the Astros Foundation's Community Leaders program as part of its global philanthropy efforts.
In partnership with the Astros Foundation, LyondellBasell will enhance youth ball fields in La Porte, Texas, where the company is building a new High-Density Polyethylene (HDPE) Plant, the first commercial site to employ LyondellBasell's new proprietary Hyperzone PE technology.
"We thought Opening Day was the perfect time to announce this new partnership because we firmly believe that our company's core values of excellence, ownership and teamwork equal success in business, on the baseball diamond and in life," said Bob Patel, CEO of LyondellBasell. "For us, this partnership isn't just about enhancing youth ball fields but also about promoting our core values, an active, healthy lifestyle and giving back to this great community."
"We are very excited to welcome LyondellBasell into the Community Leaders program," said Houston Astros Owner and Chairman Jim Crane. "This program impacts thousands of local young athletes, giving them access to updated ball fields where they can play and develop both physically and mentally. Baseball and softball teach young players the importance of teamwork, perseverance and commitment, principles that will serve them not only on the field, but throughout their lives."
"We are grateful for the economic and philanthropic contributions LyondellBasell has made to our community over the years and we are thrilled that they have partnered with the Astros Foundation to bring new life to our ball fields so that children have a special place to learn life-long lessons," said La Porte Mayor Louis Rigby.
LyondellBasell's global philanthropic efforts are focused in the areas of education, health, environment and providing support for first responders. Over the last three years, the company has supported more than 990 charities around the world, while more than 9,200 employees have donated approximately 40,000 volunteer hours to local community service projects. In 2016, the company's United Way campaign raised approximately $1.7 million for the United Way of Greater Houston and the company remains an active supporter of many other local organizations, including Junior Achievement of Southeast Texas, the Houston Food Bank and the Theater Under the Stars. The company has also actively supported the Harris County Sheriff's Industrial Unit Deputies, the Houston Police Department and the Houston Fire Department through grants that have enabled the purchase of needed safety equipment and specialized training.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemicals and refining companies and a member of the S&P 500. 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. More information about LyondellBasell can be found at www.lyondellbasell.com.
About the Astros Foundation
The Astros Foundation is the official 501(c)(3) team charity of the Houston Astros. The Foundation seeks to harness the passion of baseball fans in the Greater Houston area to support its cornerstone charitable programs, including Community Leaders, the Astros MLB Youth Academy and the Astros RBI (Reviving Baseball in Inner Cities).
SOURCE LyondellBasell
Article Date
4/3/2017LyondellBasell to Host Investor Day 2017 on April 5, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, March 29, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will hold Investor Day 2017 at the New York Stock Exchange on April 5 from 12:30 p.m. to 5:00 p.m. ET. The program will feature presentations from CEO Bob Patel and other LyondellBasell executives highlighting corporate strategy, business plans and performance.
Webcast Access
A live webcast featuring both audio and presentation slides will be available via the Investor Events page on the company website, http://lyb.com/investorevents. The webcast will be open for registration beginning at 12:15 p.m. ET on April 5.
Presentation Slides
Presentation slides will be available at the time of the presentation through the webcast. Afterwards, the slides will be available in the Investor Relations section of the company's website and accessible at http://lyb.com/investorevents.
Webcast Replay
A replay of the webcast will be available via the company's website, accessible at http://lyb.com/investorevents, from 9 a.m. ET April 6 through May 6.
Related Disclosures
Required reconciliations of certain non-GAAP financial measures to GAAP financial measures and any other applicable disclosures (including the slides) will be available at the time of the presentation and afterwards at http://lyb.com/investorevents.
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) 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.
SOURCE LyondellBasell
Article Date
3/29/20173/10/2017 - LyondellBasell Honored by Junior Achievement with US President's Volunteer Service Award
LyondellBasell Honored by Junior Achievement with US President's Volunteer Service Award
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, March 10, 2017 /PRNewswire/ -- For the second consecutive year, LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, has been honored by Junior Achievement USA® (JA) with the U.S. President's Volunteer Service Award.
The Bronze Award recognized the approximately 200 LyondellBasell employees from across the country who donated more than 5,000 volunteer hours to Junior Achievement in the 2015-2016 school year. The company also donated a total of $104,000 to the organization last year.
Aaron Miner, operations manager of LyondellBasell's Morris, Illinois, Complex, accepted the award on behalf of the company at a special event in New York. Miner participated in JA programs as a young student. Today, he serves as a JA mentor and member of the Junior Achievement of Chicago board of directors.
"Aaron Miner exemplifies the power of Junior Achievement. As a former Junior Achievement participant, Aaron received the knowledge and skills needed to plan for the future, and now he is a leader at LyondellBasell and in his community," said Bob Patel, LyondellBasell's CEO and Junior Achievement of Southeast Texas board member. "Part of our company's mission is to be a good neighbor in the communities where we operate. Our partnership with Junior Achievement provides the opportunity for our employees around the country to make a meaningful contribution that has the potential to change a student's life for the better."
President George W. Bush established the President's Council on Service and Civic Participation (the Council) in 2003 to recognize the valuable contributions volunteers make in communities and to encourage more people to serve. The Council created the President's Volunteer Service Award program as a way to thank and honor Americans who, by their demonstrated commitment and example, inspire others to engage in volunteer service. In 2006, Junior Achievement became an official certifying organization for this award, which recognizes corporations with a U.S. presence that provide volunteers to teach JA programs anywhere in the world.
"LyondellBasell is an incredible company in so many regards," said Richard Franke, President of Junior Achievement of Southeast Texas. "Their generosity and employees have engaged the JA mission by actively empowering young people to own their economic success. Their volunteers are invaluable mentors for our young people. Individually, each volunteer is bringing life to our programs by sharing their experiences and skills with students. From managing personal finances to identifying and securing a rewarding job, LyondellBasell volunteers are educating and inspiring students with the tools they need to be successful."
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 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. More information about LyondellBasell can be found at www.lyb.com.
About Junior Achievement USA® (JA)
Junior Achievement is the world's largest organization dedicated to giving young people the knowledge and skills they need to own their economic success, plan for their future, and make smart academic and economic choices. JA programs are delivered by corporate and community volunteers, and provide relevant, hands-on experiences that give students from kindergarten through high school knowledge and skills in financial literacy, work readiness, and entrepreneurship. Today, JA reaches 4.8 million students per year in more than 100 markets across the United States, with an additional 5.6 million students served by operations over 100 other countries worldwide. Visit www.ja.org for more information.
SOURCE LyondellBasell
Article Date
3/10/2017LyondellBasell Prices Public Offering of Guaranteed Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Feb. 21, 2017 /PRNewswire/ -- LyondellBasell Industries N.V. (NYSE: LYB) ("LyondellBasell" or the "Company") announced today that LYB International Finance II B.V., its wholly-owned subsidiary, priced its public offering of $1 billion aggregate principal amount of 3.500% Guaranteed Notes due 2027 (the "Notes"). The Notes will be fully and unconditionally guaranteed by LyondellBasell. The offering is expected to close on March 2, 2017, subject to customary closing conditions. The proceeds of the offering, together with available cash from our balance sheet, are expected to be used to redeem or repay $1 billion aggregate principal amount of LyondellBasell's 5.0% Senior Notes due 2019.
J.P. Morgan, BofA Merrill Lynch, Deutsche Bank Securities and HSBC are the active joint book-running managers for this offering.
An automatic shelf registration statement (including a prospectus) relating to the Notes was previously filed with the Securities and Exchange Commission (the "SEC") and became effective upon filing. Before you invest, you should read the prospectus in the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the related prospectus supplement if you request it by calling J.P. Morgan toll-free at (866) 803-9204, BofA Merrill Lynch toll-free at (800) 294-1322, Deutsche Bank Securities toll-free at (800) 503-4611 or HSBC toll-free at (866) 811-8049.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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) 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.
Cautionary Statement
The statements in this release 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. Cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in the Form 10-K of LyondellBasell Industries N.V. for the year ended December 31, 2016, and in subsequent filings for LyondellBasell.
SOURCE LyondellBasell Industries
Article Date
2/21/20172/17/2017 - LyondellBasell Board Authorizes Interim Dividend
LyondellBasell Board Authorizes Interim Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Feb. 17, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare an interim dividend of $0.85 per share. The interim dividend will be paid March 13, 2017 to shareholders of record March 6, 2017 with an ex-dividend date of March 2, 2017.
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) 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.
SOURCE LyondellBasell Industries
Article Date
2/17/20172/3/2017 - LyondellBasell Reports 2016 Earnings
LyondellBasell Reports 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Feb. 3, 2017 /PRNewswire/ --
2016 Full Year Highlights
Fourth Quarter 2016 Highlights
Comparisons with the prior quarter, fourth quarter 2015 and full year 2015 are available in the following table:
|
Table 1 - Earnings Summary |
||||||
|
Three Months Ended |
Year Ended | |||||
|
Millions of U.S. dollars |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | |
|
(except share data) |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Sales and other operating revenues |
$7,747 |
$7,365 |
$7,071 |
$29,183 |
$32,735 | |
|
Net income(a) |
763 |
953 |
795 |
3,837 |
4,474 | |
|
Income from continuing operations(b) |
770 |
955 |
797 |
3,847 |
4,479 | |
|
Diluted earnings per share (U.S. dollars): |
||||||
|
Net income(c) |
1.87 |
2.30 |
1.78 |
9.13 |
9.59 | |
|
Income from continuing operations(b) |
1.89 |
2.31 |
1.78 |
9.15 |
9.60 | |
|
Diluted share count (millions) |
407 |
414 |
446 |
420 |
466 | |
|
EBITDA(d) |
1,406 |
1,606 |
1,394 |
6,602 |
7,533 | |
|
Excluding LCM Impact: |
||||||
|
LCM charges, pre-tax |
29 |
- - |
284 |
29 |
548 | |
|
Income from continuing operations |
788 |
955 |
982 |
3,865 |
4,830 | |
|
Diluted earnings per share (U.S. dollars): |
||||||
|
Income from continuing operations |
1.94 |
2.31 |
2.20 |
9.20 |
10.35 | |
|
EBITDA |
1,435 |
1,606 |
1,678 |
6,631 |
8,081 | |
|
(a) Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10. | ||||||||||
|
(b) 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." | ||||||||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2016 of $770 million, or $1.89 per share. Fourth quarter 2016 EBITDA was $1.4 billion. The quarter included a $29 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($18 million after-tax). Excluding the LCM adjustment, earnings from continuing operations during the fourth quarter totaled $788 million, or $1.94 per share, and EBITDA was $1.4 billion. The fourth quarter also included a $58 million lump sum pension settlement and a $61 million non-cash, out-of-period cumulative correction. The correction, which was not material to any reporting period, relates to taxes on our cross-currency swaps for 2014, 2015 and through the third quarter of 2016. Together, the pension settlement and the non-cash, out-of-period correction adversely impacted fourth quarter earnings by $0.24 per share. Full year 2016 income from continuing operations was $3.8 billion, or $9.15 per share, and EBITDA was $6.6 billion. The full year included a non-cash, pre-tax LCM inventory adjustment of $29 million ($18 million after tax). Excluding the LCM adjustment, earnings from continuing operations for the full year totaled $3.9 billion, or $9.20 per share, and EBITDA was $6.6 billion. 2016 earnings were negatively impacted due to the $58 million pension settlement, a $74 million non-cash, out-of-period cumulative correction relating to 2014 and 2015 for taxes on our cross currency swaps and positively impacted by an after tax gain of $78 million on the sale of our Argentine wholly owned subsidiary, Petroken Petroquímica Ensenada S.A. (Petroken). Combined, the net effect of the pension settlement, non-cash, out-of-period tax correction and Petroken gain adversely impacted full year 2016 earnings by $0.07 per share.
"LyondellBasell posted good results for 2016 despite the impact of our heavy planned maintenance schedule and several Refining operational upsets. Our continued strong earnings and cash flow enabled us to return cash to shareholders by increasing our dividend per share by 9 percent and purchasing 8 percent of the outstanding shares. Our Olefins and Polyolefins - Europe, Asia and International and Technology segments posted their second consecutive year of record results, demonstrating continued global industry strength. Overall, the global olefins and polyolefins industry benefitted from continued favorable supply and demand balances while low crude oil and fuel prices adversely impacted refining and oxyfuel margins. During the fourth quarter, we completed the final step in our 2 billion pound North American ethylene expansion program, began site preparation for a 1.1 billion pound polyethylene plant, and advanced our new propylene oxide plant design. These projects coupled with the 2016 completion of seven major plant maintenance turnarounds, including four cracker turnarounds, position our company favorably for the coming years," said Bob Patel, LyondellBasell chief executive officer.
OUTLOOK
"During the past several months, the industry outlook for 2017 has steadily improved. Healthy U.S. and global economic activity and ethylene project delays have led to an improved forecast for industry supply and demand dynamics. Global supply positions have provided optimism regarding crude oil prices and NGL supply. While we will continue to watch these developments, the significant investments in our 2016 maintenance programs favorably position the company for 2017," 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 and 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) – Our O&P–Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
|
Table 2 - O&P–Americas Financial Overview | ||||||
|
Three Months Ended |
Year Ended | |||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | ||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$458 |
$582 |
$662 |
$2,393 |
$3,256 | |
|
EBITDA |
563 |
682 |
775 |
2,877 |
3,661 | |
|
LCM charges, pre-tax |
29 |
- - |
59 |
29 |
160 | |
|
EBITDA excluding LCM adjustments |
592 |
682 |
834 |
2,906 |
3,821 | |
Three months ended December 31, 2016 versus three months ended September 30, 2016 – EBITDA decreased $90 million versus the third quarter 2016, excluding an unfavorable $29 million quarter to quarter variance as a result of the fourth quarter LCM inventory adjustment. The fourth quarter segment results were adversely impacted by $23 million due to the pension settlement. Compared to the prior period, olefins results decreased approximately $80 million. This decrease was driven by margins which declined approximately 6 cents per pound due to lower ethylene prices and increased feedstock costs. Volumes improved as a result of the completion of planned maintenance at the Morris, Illinois complex. Combined polyolefins results increased by approximately $10 million. Polyethylene price spreads over ethylene improved approximately 2 cents per pound partially offset by a 2 percent volume decrease. Polypropylene volumes declined due to seasonal demand while price spreads over propylene improved approximately 4 cents per pound. Joint venture equity income declined by $7 million.
Three months ended December 31, 2016 versus three months ended December 31, 2015 – EBITDA decreased $242 million versus the fourth quarter 2015, excluding a favorable $30 million quarter to quarter variance as a result of the LCM inventory adjustments. 2016 results were negatively impacted by $23 million due to the pension settlement. Olefins results declined approximately $70 million versus the fourth quarter 2015. Ethylene margins were lower and production was down 9% primarily due to scheduled maintenance. Combined polyolefins results decreased approximately $150 million versus the very strong prior year period. Polyethylene spreads declined by approximately 6 cents per pound and volume decreased by approximately 6 percent. Polypropylene spreads declined by approximately 3 cents per pound. Joint venture equity income declined by $10 million.
Full year ended December 31, 2016 versus full year ended December 31, 2015 – EBITDA decreased $915 million versus 2015, excluding a favorable $131 million year to year variance as a result of the LCM inventory adjustments in both years. 2016 results include a $57 million gain on the sale of the Petroken polypropylene business and the $23 million negative impact due to the pension settlement. Olefins results declined by approximately $850 million from the prior year. Ethylene margins declined by approximately 6 cents per pound versus 2015. The impact of 2 cents per pound lower ethylene sales price was compounded by a higher cost of ethylene production. Production was approximately 13 percent lower primarily as a result of 2016 scheduled plant maintenance. Combined polyolefins results decreased approximately $120 million versus the prior year. Polyethylene spreads over ethylene declined approximately 4 cents per pound and volume decreased approximately 4 percent. Polypropylene spreads improved by approximately 4 cents per pound. Polypropylene sales volumes were lower due to the sale of our Petroken subsidiary. Joint venture equity income increased by $17 million versus the prior year.
Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) – Our O&P–EAI segment produces and markets olefins and co-products, polyethylene and polypropylene, including polypropylene compounds.
|
Table 3 - O&P–EAI Financial Overview | ||||||
|
Three Months Ended |
Year Ended | |||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | ||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$266 |
$447 |
$302 |
$1,494 |
$1,309 | |
|
EBITDA |
398 |
584 |
427 |
2,067 |
1,825 | |
|
LCM charges, pre-tax |
- - |
- - |
24 |
- - |
30 | |
|
EBITDA excluding LCM adjustments |
398 |
584 |
451 |
2,067 |
1,855 | |
Three months ended December 31, 2016 versus three months ended September 30, 2016 – EBITDA decreased $186 million for the fourth quarter versus the third quarter 2016. The fourth quarter was negatively impacted by a pension settlement of $8 million and the absence of an $11 million third quarter gain due to the restructuring of Asian polypropylene joint ventures and the sale of idled Australian polypropylene assets. Compared to the prior period, olefins results decreased approximately $120 million. Ethylene margins declined 7 cents per pound primarily due to feedstock costs. Ethylene sales and internal consumption were also lower due to planned maintenance at our Wesseling, Germany cracker. Combined polyolefins results declined by approximately $50 million primarily due to lower spreads for both polyethylene and polypropylene. Joint venture equity income increased by $3 million.
Three months ended December 31, 2016 versus three months ended December 31, 2015 – EBITDA decreased by $53 million versus the fourth quarter 2015, excluding a favorable $24 million quarter to quarter variance as a result of the 2015 LCM inventory adjustment. The fourth quarter 2016 was adversely impacted by the $8 million pension settlement. Compared to the prior period, olefins results were relatively unchanged. Combined polyolefins results decreased approximately $50 million. Polyethylene spreads declined while polypropylene margins were relatively unchanged. Sales volume declined 4 percent and 10 percent for polyethylene and polypropylene, respectively. Joint venture equity income increased by $2 million.
Full year ended December 31, 2016 versus full year ended December 31, 2015 – The segment achieved record EBITDA for the year. EBITDA increased $212 million versus 2015, excluding a favorable $30 million year to year variance as a result of the 2015 LCM inventory adjustment. 2016 results include gains totaling $32 million due to the sale of the Petroken polypropylene business, restructuring of Asian polypropylene joint ventures and the sale of idled Australian polypropylene assets. Olefins results declined by approximately $20 million. Combined polyolefins results increased approximately $180 million compared to the prior year driven by a polyethylene and polypropylene spread improvement of approximately 2 cents per pound and 3 cents per pound, respectively. Joint venture equity income increased by $19 million.
Intermediates and Derivatives (I&D) – Our I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide and ethylene glycol.
|
Table 4 - I&D Financial Overview | ||||||
|
Three Months Ended |
Year Ended | |||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | ||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$236 |
$240 |
$145 |
$1,058 |
$1,224 | |
|
EBITDA |
306 |
304 |
212 |
1,333 |
1,475 | |
|
LCM charges, pre-tax |
- - |
- - |
74 |
- - |
181 | |
|
EBITDA excluding LCM adjustments |
306 |
304 |
286 |
1,333 |
1,656 | |
Three months ended December 31, 2016 versus three months ended September 30, 2016 – EBITDA increased $2 million. The fourth quarter was negatively impacted by a pension settlement of $16 million. PO and derivatives and intermediate chemicals results increased by approximately $50 million primarily due to improved methanol and ethylene glycol margins and reduced maintenance while PO and derivatives were relatively steady. Oxyfuels results decreased approximately $20 million due to lower seasonal margins and volumes. Joint venture equity income was relatively unchanged.
Three months ended December 31, 2016 versus three months ended December 31, 2015 – EBITDA increased $20 million versus the fourth quarter 2015, excluding a favorable $74 million quarter to quarter variance as a result of a LCM inventory adjustment in 2015. 2016 results were adversely impacted by the $16 million pension settlement. Results for PO and derivatives and intermediate chemicals improved by approximately $20 million primarily due to increased styrene and acetyls results. Oxyfuels improved approximately $10 million. Joint venture equity income was relatively unchanged.
Full year ended December 31, 2016 versus full year ended December 31, 2015 – EBITDA decreased $323 million versus 2015, excluding a favorable $181 million year to year variance as a result of LCM inventory adjustments. 2016 results were negatively impacted by the $16 million pension settlement. PO and derivatives and intermediate chemicals results decreased approximately $200 million primarily due to lower margins for methanol, ethylene glycol and PO derivatives, as well as the PO sales mix. Oxyfuels results declined by approximately $90 million due to lower 2016 margins. Joint venture equity income declined by $8 million.
Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.
|
Table 5 - Refining Financial Overview | ||||||
|
Three Months Ended |
Year Ended | |||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | ||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income (loss) |
$40 |
($56) |
($101) |
($99) |
$144 | |
|
EBITDA |
81 |
(10) |
(59) |
72 |
342 | |
|
LCM charges, pre-tax |
- - |
- - |
127 |
- - |
177 | |
|
EBITDA excluding LCM adjustments |
81 |
(10) |
68 |
72 |
519 | |
Three months ended December 31, 2016 versus three months ended September 30, 2016 – EBITDA increased $91 million versus the third quarter 2015. Underlying operational improvements provided approximately half of the increase while the consumption of low priced crude inventory from the prior year provided the balance. The Houston refinery operated at 228,000 barrels per day, up 19,000 barrels per day from the prior quarter. The Maya 2-1-1 industry benchmark spread was relatively unchanged, averaging approximately $19 per barrel.
Three months ended December 31, 2016 versus three months ended December 31, 2015 – EBITDA increased $13 million versus the fourth quarter 2015, excluding a favorable $127 million quarter to quarter variance as a result of a 2015 LCM inventory adjustment. Fourth quarter 2016 throughput increased by 22,000 barrels per day from the prior year period. The Maya 2-1-1 industry benchmark spread increased by $0.45 per barrel, averaging $19 per barrel. Both operating periods were adversely impacted by operating issues.
Full year ended December 31, 2016 versus full year ended December 31, 2015 – EBITDA decreased $447 million versus 2015, excluding a favorable $177 million year to year variance as a result of 2015 LCM inventory adjustments. Throughput at the Houston Refinery averaged 201,000 barrels per day, down 37,000 barrels per day. The Maya 2-1-1 industry benchmark spread decreased by approximately $3 per barrel, averaging approximately $19 per barrel. The cost of RINs was approximately $30 million higher in 2016 versus the prior year.
Technology Segment – Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
|
Table 6 - Technology Financial Overview | ||||||
|
Three Months Ended |
Year Ended | |||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, | ||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$51 |
$35 |
$54 |
$221 |
$197 | |
|
EBITDA |
61 |
45 |
65 |
262 |
243 | |
Three months ended December 31, 2016 versus three months ended September 30, 2016 – EBITDA increased by $16 million driven by the timing of licensing revenue.
Three months ended December 31, 2016 versus three months ended December 31, 2015 – EBITDA decreased by $4 million.
Full year ended December 31, 2016 versus full year ended December 31, 2015 – Record results as EBITDA increased by $19 million, primarily due to improved catalyst results.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $567 million during the fourth quarter 2016 and $2.2 billion for the full year 2016. Our cash and liquid investment balance was $2.4 billion at December 31, 2016. We repurchased 5.2 million ordinary shares during the fourth quarter 2016 and 36.6 million shares during 2016. There were 404 million common shares outstanding as of December 31, 2016. The company paid dividends of $1.4 billion during 2016.
CONFERENCE CALL
LyondellBasell will host a conference call February 3 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer 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 6934553.
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 February 3 until March 4 at 12:59 a.m. ET. The replay dial-in numbers are 866-467-2412 (U.S.) and +1 203-369-1448 (international). The pass code for each is 2526.
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) 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, 2015, 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 related to our use of LIFO accounting and the recent decline 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) | |||||||||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||||
|
Sales and other operating revenues: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,551 |
$ |
2,679 |
$ |
2,516 |
$ |
2,218 |
$ |
9,964 |
$ |
2,115 |
$ |
2,211 |
$ |
2,342 |
$ |
2,409 |
$ |
9,077 | |||||||||||||
|
Olefins & Polyolefins - EAI |
2,911 |
3,061 |
2,932 |
2,672 |
11,576 |
2,578 |
2,721 |
2,634 |
2,646 |
10,579 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
1,918 |
2,159 |
2,039 |
1,656 |
7,772 |
1,702 |
1,769 |
1,805 |
1,950 |
7,226 | |||||||||||||||||||||||
|
Refining |
1,607 |
2,102 |
1,693 |
1,155 |
6,557 |
955 |
1,289 |
1,330 |
1,561 |
5,135 | |||||||||||||||||||||||
|
Technology |
136 |
107 |
100 |
122 |
465 |
132 |
129 |
102 |
116 |
479 | |||||||||||||||||||||||
|
Other/elims |
(938) |
(963) |
(946) |
(752) |
(3,599) |
(739) |
(791) |
(848) |
(935) |
(3,313) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 | |||||||||||||
|
Operating income (loss): |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
934 |
$ |
920 |
$ |
740 |
$ |
662 |
$ |
3,256 |
$ |
707 |
$ |
646 |
$ |
582 |
$ |
458 |
$ |
2,393 | |||||||||||||
|
Olefins & Polyolefins - EAI |
236 |
359 |
412 |
302 |
1,309 |
358 |
423 |
447 |
266 |
1,494 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
271 |
405 |
403 |
145 |
1,224 |
255 |
327 |
240 |
236 |
1,058 | |||||||||||||||||||||||
|
Refining |
74 |
119 |
52 |
(101) |
144 |
(30) |
(53) |
(56) |
40 |
(99) | |||||||||||||||||||||||
|
Technology |
64 |
45 |
34 |
54 |
197 |
73 |
62 |
35 |
51 |
221 | |||||||||||||||||||||||
|
Other |
(4) |
(3) |
9 |
(10) |
(8) |
(3) |
(2) |
1 |
(3) |
(7) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
1,575 |
$ |
1,845 |
$ |
1,650 |
$ |
1,052 |
$ |
6,122 |
$ |
1,360 |
$ |
1,403 |
$ |
1,249 |
$ |
1,048 |
$ |
5,060 | |||||||||||||
|
Depreciation and amortization: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
86 |
$ |
85 |
$ |
87 |
$ |
95 |
$ |
353 |
$ |
90 |
$ |
88 |
$ |
87 |
$ |
97 |
$ |
362 | |||||||||||||
|
Olefins & Polyolefins - EAI |
55 |
54 |
54 |
56 |
219 |
55 |
58 |
58 |
58 |
229 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
60 |
56 |
55 |
62 |
233 |
70 |
69 |
62 |
68 |
269 | |||||||||||||||||||||||
|
Refining |
74 |
40 |
41 |
41 |
196 |
43 |
40 |
40 |
40 |
163 | |||||||||||||||||||||||
|
Technology |
12 |
12 |
11 |
11 |
46 |
10 |
11 |
10 |
10 |
41 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
287 |
$ |
247 |
$ |
248 |
$ |
265 |
$ |
1,047 |
$ |
268 |
$ |
266 |
$ |
257 |
$ |
273 |
$ |
1,064 | |||||||||||||
|
EBITDA: (b) |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
1,031 |
$ |
1,014 |
$ |
841 |
$ |
775 |
$ |
3,661 |
$ |
878 |
$ |
754 |
$ |
682 |
$ |
563 |
$ |
2,877 | |||||||||||||
|
Olefins & Polyolefins - EAI |
357 |
492 |
549 |
427 |
1,825 |
509 |
576 |
584 |
398 |
2,067 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
337 |
466 |
460 |
212 |
1,475 |
326 |
397 |
304 |
306 |
1,333 | |||||||||||||||||||||||
|
Refining |
149 |
159 |
93 |
(59) |
342 |
14 |
(13) |
(10) |
81 |
72 | |||||||||||||||||||||||
|
Technology |
76 |
57 |
45 |
65 |
243 |
83 |
73 |
45 |
61 |
262 | |||||||||||||||||||||||
|
Other |
2 |
(2) |
13 |
(26) |
(13) |
(3) |
(4) |
1 |
(3) |
(9) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 | |||||||||||||
|
Capital, turnarounds and IT deferred spending: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
149 |
$ |
140 |
$ |
159 |
$ |
220 |
$ |
668 |
$ |
303 |
$ |
339 |
$ |
384 |
$ |
350 |
$ |
1,376 | |||||||||||||
|
Olefins & Polyolefins - EAI |
38 |
27 |
49 |
72 |
186 |
81 |
60 |
48 |
72 |
261 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
76 |
76 |
135 |
154 |
441 |
76 |
80 |
90 |
87 |
333 | |||||||||||||||||||||||
|
Refining |
33 |
28 |
23 |
24 |
108 |
57 |
71 |
51 |
45 |
224 | |||||||||||||||||||||||
|
Technology |
6 |
3 |
7 |
8 |
24 |
6 |
9 |
9 |
12 |
36 | |||||||||||||||||||||||
|
Other |
4 |
4 |
- - |
5 |
13 |
4 |
4 |
4 |
1 |
13 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
306 |
$ |
278 |
$ |
373 |
$ |
483 |
$ |
1,440 |
$ |
527 |
$ |
563 |
$ |
586 |
$ |
567 |
$ |
2,243 | |||||||||||||
|
(a) |
EBITDA as presented herein includes the impacts of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. EBITDA for the first quarter of 2016 includes pre-tax LCM adjustments of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary, respectively. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 EBITDA also included a pre-tax LCM adjustment of $29 million. See Tables 2 through 6 for LCM adjustments recorded for each segment. |
|
(b) |
See Table 8 for EBITDA calculation. |
|
Table 8 - EBITDA Calculation | |||||||||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||||
|
Net income(a) |
$ |
1,164 |
$ |
1,329 |
$ |
1,186 |
$ |
795 |
$ |
4,474 |
$ |
1,030 |
$ |
1,091 |
$ |
953 |
$ |
763 |
$ |
3,837 | |||||||||||||
|
(Income) loss from discontinued operations, net of tax |
3 |
(3) |
3 |
2 |
5 |
- - |
1 |
2 |
7 |
10 | |||||||||||||||||||||||
|
Income from continuing operations(a) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 |
1,092 |
955 |
770 |
3,847 | |||||||||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 |
346 |
326 |
282 |
1,386 | |||||||||||||||||||||||
|
Depreciation and amortization |
287 |
247 |
248 |
265 |
1,047 |
268 |
266 |
257 |
273 |
1,064 | |||||||||||||||||||||||
|
Interest expense, net |
58 |
72 |
77 |
70 |
277 |
77 |
79 |
68 |
81 |
305 | |||||||||||||||||||||||
|
EBITDA(b) |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
1,406 |
$ |
6,602 | |||||||||||||
|
(a) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. The fourth quarter of 2016 also includes an $18 million after tax LCM charge. |
|
(b) |
EBITDA as presented herein includes the impact of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. The fourth quarter of 2016 also includes a $29 million pre-tax LCM charge. |
|
Table 9 - Selected Segment Operating Information | ||||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||||
|
Ethylene produced |
2,364 |
2,415 |
2,514 |
2,391 |
9,684 |
2,392 |
1,899 |
1,939 |
2,173 |
8,403 | ||||||||||||||
|
Propylene produced |
805 |
740 |
697 |
798 |
3,040 |
832 |
748 |
575 |
660 |
2,815 | ||||||||||||||
|
Polyethylene sold |
1,473 |
1,575 |
1,577 |
1,578 |
6,203 |
1,554 |
1,426 |
1,517 |
1,485 |
5,982 | ||||||||||||||
|
Polypropylene sold |
627 |
698 |
662 |
606 |
2,593 |
612 |
582 |
659 |
623 |
2,476 | ||||||||||||||
|
Benchmark Market Prices |
||||||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
48.57 |
57.95 |
45.36 |
42.16 |
48.71 |
33.63 |
46.01 |
44.94 |
49.29 |
43.56 | ||||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
52.84 |
62.93 |
50.20 |
43.53 |
52.36 |
35.34 |
47.39 |
46.52 |
50.60 |
45.03 | ||||||||||||||
|
Houston Ship Channel natural gas (USD per million BTUs) |
2.76 |
2.76 |
2.72 |
2.11 |
2.57 |
1.93 |
2.06 |
2.79 |
3.01 |
2.45 | ||||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
10.2 |
9.7 |
9.6 |
10.9 |
10.1 |
9.8 |
12.0 |
10.6 |
14.3 |
11.7 | ||||||||||||||
|
U.S. ethylene (cents/pound) |
34.8 |
34.2 |
30.3 |
27.5 |
31.7 |
26.7 |
30.3 |
33.0 |
32.7 |
30.7 | ||||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
65.7 |
67.3 |
64.3 |
57.0 |
63.6 |
52.3 |
59.0 |
60.7 |
58.3 |
57.6 | ||||||||||||||
|
U.S. propylene (cents/pound) |
49.7 |
41.7 |
33.2 |
31.3 |
39.0 |
31.0 |
32.7 |
37.8 |
36.2 |
34.4 | ||||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.7 |
61.7 |
59.3 |
62.7 |
62.8 |
67.8 |
61.7 |
60.2 |
55.8 |
61.4 | ||||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||||
|
Ethylene produced |
1,007 |
1,047 |
944 |
978 |
3,976 |
950 |
941 |
1,066 |
946 |
3,903 | ||||||||||||||
|
Propylene produced |
600 |
632 |
575 |
575 |
2,382 |
555 |
577 |
649 |
563 |
2,344 | ||||||||||||||
|
Polyethylene sold |
1,533 |
1,360 |
1,304 |
1,379 |
5,576 |
1,434 |
1,386 |
1,315 |
1,330 |
5,465 | ||||||||||||||
|
Polypropylene sold |
1,817 |
1,529 |
1,673 |
1,757 |
6,776 |
1,773 |
1,617 |
1,509 |
1,582 |
6,481 | ||||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
22.9 |
23.2 |
14.4 |
22.5 |
20.8 |
16.3 |
21.2 |
17.9 |
23.8 |
19.8 | ||||||||||||||
|
Western Europe ethylene |
39.3 |
47.1 |
46.6 |
41.4 |
43.6 |
38.4 |
41.1 |
42.3 |
43.1 |
41.2 | ||||||||||||||
|
Western Europe polyethylene [high density] |
45.2 |
60.6 |
61.2 |
56.9 |
56.0 |
55.4 |
57.6 |
55.7 |
55.2 |
56.0 | ||||||||||||||
|
Western Europe propylene |
37.1 |
44.4 |
41.7 |
31.0 |
38.5 |
26.3 |
28.8 |
30.7 |
33.3 |
29.8 | ||||||||||||||
|
Western Europe polypropylene [homopolymer] |
49.8 |
62.5 |
59.3 |
47.4 |
54.7 |
46.5 |
49.5 |
49.5 |
51.7 |
49.3 | ||||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||||
|
Propylene oxide and derivatives |
870 |
751 |
697 |
682 |
3,000 |
793 |
743 |
752 |
749 |
3,037 | ||||||||||||||
|
Intermediate Chemicals: |
||||||||||||||||||||||||
|
Ethylene oxide and derivatives |
268 |
312 |
282 |
237 |
1,099 |
301 |
233 |
224 |
329 |
1,087 | ||||||||||||||
|
Styrene monomer |
903 |
735 |
904 |
889 |
3,431 |
917 |
933 |
911 |
933 |
3,694 | ||||||||||||||
|
Acetyls |
547 |
810 |
733 |
623 |
2,713 |
702 |
821 |
751 |
776 |
3,050 | ||||||||||||||
|
Oxyfuels and Related Products: |
||||||||||||||||||||||||
|
TBA Intermediates |
433 |
321 |
421 |
371 |
1,546 |
415 |
391 |
410 |
361 |
1,577 | ||||||||||||||
|
Volumes (million gallons) |
||||||||||||||||||||||||
|
MTBE/ETBE |
229 |
299 |
268 |
258 |
1,054 |
270 |
278 |
298 |
264 |
1,110 | ||||||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||||||
|
MTBE - Northwest Europe |
64.0 |
106.0 |
119.0 |
49.8 |
85.1 |
44.4 |
78.7 |
55.3 |
50.6 |
57.2 | ||||||||||||||
|
Refining |
||||||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||||||
|
Heavy crude oil processing rate |
241 |
255 |
249 |
206 |
238 |
186 |
183 |
209 |
228 |
201 | ||||||||||||||
|
Benchmark Market Margins |
||||||||||||||||||||||||
|
Light crude oil - 2-1-1 |
15.02 |
16.42 |
15.29 |
9.44 |
14.04 |
8.67 |
11.52 |
11.46 |
11.20 |
10.73 | ||||||||||||||
|
Light crude oil - Maya differential |
8.72 |
7.56 |
7.48 |
9.11 |
8.26 |
9.19 |
9.55 |
7.52 |
7.80 |
8.51 | ||||||||||||||
|
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 | |||||||||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||||
|
Sales and other operating revenues |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
7,747 |
$ |
29,183 | |||||||||||||
|
Cost of sales(a) |
6,379 |
7,047 |
6,465 |
5,792 |
25,683 |
5,166 |
5,702 |
5,903 |
6,420 |
23,191 | |||||||||||||||||||||||
|
Selling, general and administrative expenses |
205 |
228 |
194 |
201 |
828 |
193 |
199 |
188 |
253 |
833 | |||||||||||||||||||||||
|
Research and development expenses |
26 |
25 |
25 |
26 |
102 |
24 |
24 |
25 |
26 |
99 | |||||||||||||||||||||||
|
Operating income(a) |
1,575 |
1,845 |
1,650 |
1,052 |
6,122 |
1,360 |
1,403 |
1,249 |
1,048 |
5,060 | |||||||||||||||||||||||
|
Income from equity investments |
69 |
90 |
93 |
87 |
339 |
91 |
117 |
81 |
78 |
367 | |||||||||||||||||||||||
|
Interest expense, net |
(58) |
(72) |
(77) |
(70) |
(277) |
(77) |
(79) |
(68) |
(81) |
(305) | |||||||||||||||||||||||
|
Other income (expense), net(b) |
21 |
4 |
10 |
(10) |
25 |
88 |
(3) |
19 |
7 |
111 | |||||||||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) |
1,607 |
1,867 |
1,676 |
1,059 |
6,209 |
1,462 |
1,438 |
1,281 |
1,052 |
5,233 | |||||||||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 |
346 |
326 |
282 |
1,386 | |||||||||||||||||||||||
|
Income from continuing operations(c) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 |
1,092 |
955 |
770 |
3,847 | |||||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
(3) |
3 |
(3) |
(2) |
(5) |
- - |
(1) |
(2) |
(7) |
(10) | |||||||||||||||||||||||
|
Net income(c) |
1,164 |
1,329 |
1,186 |
795 |
4,474 |
1,030 |
1,091 |
953 |
763 |
3,837 | |||||||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
2 |
1 |
(1) |
- - |
2 |
- - |
- - |
(1) |
- - |
(1) | |||||||||||||||||||||||
|
Net income attributable to the Company shareholders(c) |
$ |
1,166 |
$ |
1,330 |
$ |
1,185 |
$ |
795 |
$ |
4,476 |
$ |
1,030 |
$ |
1,091 |
$ |
952 |
$ |
763 |
$ |
3,836 | |||||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first and fourth quarters of 2016 include pre-tax LCM charges of $68 million and $29 million, respectively. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
|
(b) |
Includes a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary in the second quarter of 2016. |
|
(c) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first and fourth quarters of 2016 include after-tax LCM charges of $47 million and $18 million, respectively, and an after-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes an after tax LCM benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment. |
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations | ||||||||||||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Annual |
Q1 |
Q2 |
Q3 |
Q4 |
Annual | ||||||||||||||||||||||
|
Pretax charges (benefits): |
||||||||||||||||||||||||||||||||
|
Out of period tax adjustment |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
61 |
$ |
74 | ||||||||||||
|
Gain on sale of wholly owned subsidiary |
- - |
- - |
- - |
- - |
- - |
(78) |
- - |
- - |
- - |
(78) | ||||||||||||||||||||||
|
Lower of cost or market inventory adjustment |
92 |
(9) |
181 |
284 |
548 |
68 |
(68) |
- - |
29 |
29 | ||||||||||||||||||||||
|
Pension settlement charge |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
58 |
58 | ||||||||||||||||||||||
|
Emission allowance credits, amortization |
35 |
- - |
- - |
- - |
35 |
- - |
- - |
- - |
- - |
- - | ||||||||||||||||||||||
|
Total pretax charges (benefits) |
127 |
(9) |
181 |
284 |
583 |
(10) |
(68) |
- - |
148 |
83 | ||||||||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(47) |
3 |
(67) |
(99) |
(210) |
(21) |
21 |
- - |
(32) |
(32) | ||||||||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
80 |
$ |
(6) |
$ |
114 |
$ |
185 |
$ |
373 |
$ |
(31) |
$ |
(47) |
$ |
- - |
$ |
116 |
$ |
51 | ||||||||||||
|
Effect on diluted earnings per share |
$ |
(0.17) |
$ |
0.02 |
$ |
(0.25) |
$ |
(0.42) |
$ |
(0.80) |
$ |
0.07 |
$ |
0.11 |
$ |
- - |
$ |
(0.29) |
$ |
(0.12) | ||||||||||||
|
Table 12 - Unaudited Cash Flow Information | |||||||||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
Total | |||||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
1,468 |
$ |
1,446 |
$ |
1,768 |
$ |
1,160 |
$ |
5,842 |
$ |
1,300 |
$ |
1,261 |
$ |
1,332 |
$ |
1,713 |
$ |
5,606 | |||||||||||||
|
Net cash provided by (used in) investing activities |
(443) |
(727) |
67 |
52 |
(1,051) |
(597) |
(471) |
(459) |
(770) |
(2,297) | |||||||||||||||||||||||
|
Net cash used in financing activities |
(401) |
(1,021) |
(1,684) |
(1,744) |
(4,850) |
(333) |
(1,039) |
(1,195) |
(782) |
(3,349) | |||||||||||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information | |||||||||||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
June 30, |
September 30, |
December 31, | ||||||||||||||||||||||
|
(Millions of U.S. dollars) |
2015 |
2015 |
2015 |
2015 |
2016 |
2016 |
2016 |
2016 | |||||||||||||||||||||
|
Cash and cash equivalents |
$ |
1,616 |
$ |
1,325 |
$ |
1,474 |
$ |
924 |
$ |
1,318 |
$ |
1,060 |
$ |
740 |
$ |
875 | |||||||||||||
|
Restricted cash |
2 |
3 |
1 |
7 |
4 |
4 |
4 |
3 | |||||||||||||||||||||
|
Short-term investments |
1,478 |
1,989 |
1,602 |
1,064 |
1,332 |
1,023 |
1,090 |
1,147 | |||||||||||||||||||||
|
Accounts receivable, net |
3,089 |
3,373 |
2,924 |
2,517 |
2,683 |
2,806 |
2,852 |
2,842 | |||||||||||||||||||||
|
Inventories |
4,267 |
4,179 |
4,138 |
4,051 |
3,978 |
4,009 |
4,015 |
3,809 | |||||||||||||||||||||
|
Prepaid expenses and other current assets(a) |
1,195 |
1,121 |
1,059 |
1,226 |
1,009 |
1,081 |
852 |
923 | |||||||||||||||||||||
|
Total current assets |
11,647 |
11,990 |
11,198 |
9,789 |
10,324 |
9,983 |
9,553 |
9,599 | |||||||||||||||||||||
|
Property, plant and equipment, net |
8,430 |
8,636 |
8,793 |
8,991 |
9,373 |
9,681 |
10,057 |
10,137 | |||||||||||||||||||||
|
Investments and long-term receivables: |
|||||||||||||||||||||||||||||
|
Investment in PO joint ventures |
373 |
357 |
357 |
397 |
398 |
390 |
399 |
415 | |||||||||||||||||||||
|
Equity investments |
1,581 |
1,612 |
1,602 |
1,608 |
1,734 |
1,610 |
1,681 |
1,575 | |||||||||||||||||||||
|
Other investments and long-term receivables |
38 |
126 |
125 |
122 |
18 |
18 |
17 |
20 | |||||||||||||||||||||
|
Goodwill |
533 |
543 |
543 |
536 |
548 |
542 |
543 |
528 | |||||||||||||||||||||
|
Intangible assets, net |
695 |
671 |
644 |
640 |
618 |
588 |
562 |
550 | |||||||||||||||||||||
|
Other assets(a) |
637 |
600 |
605 |
674 |
559 |
623 |
607 |
618 | |||||||||||||||||||||
|
Total assets |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 | |||||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
3 |
$ |
3 |
$ |
4 |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
2 | |||||||||||||
|
Short-term debt |
514 |
582 |
573 |
353 |
594 |
616 |
621 |
594 | |||||||||||||||||||||
|
Accounts payable |
2,631 |
2,755 |
2,450 |
2,182 |
2,243 |
2,357 |
2,329 |
2,529 | |||||||||||||||||||||
|
Accrued liabilities |
1,482 |
1,455 |
1,784 |
1,810 |
1,600 |
1,374 |
1,357 |
1,415 | |||||||||||||||||||||
|
Deferred income taxes(a) |
429 |
434 |
383 |
- - |
- - |
- - |
- - |
- - | |||||||||||||||||||||
|
Total current liabilities |
5,060 |
5,229 |
5,193 |
4,349 |
4,441 |
4,351 |
4,310 |
4,540 | |||||||||||||||||||||
|
Long-term debt |
7,677 |
7,658 |
7,674 |
7,671 |
8,504 |
8,485 |
8,464 |
8,385 | |||||||||||||||||||||
|
Other liabilities |
2,038 |
2,063 |
2,044 |
2,036 |
2,125 |
2,143 |
2,151 |
2,113 | |||||||||||||||||||||
|
Deferred income taxes(a) |
1,653 |
1,635 |
1,604 |
2,127 |
2,134 |
2,149 |
2,387 |
2,331 | |||||||||||||||||||||
|
Stockholders' equity |
7,478 |
7,927 |
7,328 |
6,550 |
6,344 |
6,283 |
6,082 |
6,048 | |||||||||||||||||||||
|
Non-controlling interests |
28 |
23 |
24 |
24 |
24 |
24 |
25 |
25 | |||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 |
$ |
23,442 | |||||||||||||
|
(a) |
Our prospective adoption of ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, in December 2015 resulted in the classification of our deferred taxes as of December 2015 as noncurrent. |
SOURCE LyondellBasell Industries
Article Date
2/3/2017LyondellBasell to Discuss Fourth-Quarter Results on Friday, February 3, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Jan. 20, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce fourth-quarter 2016 financial results before the U.S. market opens on Friday, February 3, to be followed by a webcast and teleconference to discuss results at 11 a.m. EST.
Teleconference and Webcast Details:
Friday, February 3, 2017
11 a.m. EST
Hosted by Doug Pike, Vice President, Investor Relations
Access the webcast 10 to 15 minutes prior to the call at www.lyb.com/earnings
Toll-Free Teleconference Dial-In Numbers:
United States: 888-677-1826
United Kingdom: 0800-279-9630
Netherlands: 0800-343-4364
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EST February 3 until March 4 at 12:59 a.m. EST.
The replay dial-in numbers are:
Toll Free: 866-467-2412
Toll: 203-369-1448
Passcode: 2526
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) 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.
SOURCE LyondellBasell
Article Date
1/20/2017LyondellBasell Corpus Christi Complex Expansion Complete
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, and LONDON, Jan. 19, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced completion of the 800 million pounds-per-year ethylene expansion project at the company's Corpus Christi, Texas, site. The project increases ethylene capacity at the facility by 50 percent, from 1.7 billion pounds-per-year to 2.5 billion pounds-per-year, and completes the company's multi-year plan to increase annual ethylene capacity in the U.S. by two billion pounds.
"As we look to meet growing, global demand for our products, we continue to seek the right opportunities that ensure we are well positioned for the longer term," said Bob Patel, LyondellBasell CEO and chairman of the management board. "By expanding ethylene capacity in the U.S. through debottlenecks rather than long and costly greenfield developments, we quickly added substantial capacity for significantly less than the cost of a new plant," he added.
Completion of the Corpus Christi expansion is another milestone in the company's organic profit-generating growth strategy. To date, the company has completed the following expansion projects at its manufacturing sites globally:
120 million pounds-per-year combined ethylene/polyethylene increase – Clinton, Iowa and Morris, Ill.
155 million pounds-per-year butadiene increase – Wesseling, Germany
250 million gallons-per-year methanol increase – Channelview, Texas
800 million pounds-per-year ethylene increase – La Porte, Texas
220 million pounds-per-year polyethylene increase – Matagorda, Texas
250 million pounds-per-year ethylene increase – Channelview, Texas
800 million pounds-per-year ethylene increase – Corpus Christi, Texas
Since 2012, LyondellBasell has invested approximately $2 billion in U.S. Gulf Coast expansion projects and plans to invest an additional $3 billion in the region. In September, the company announced the construction of a high density polyethylene plant (HDPE) in La Porte that will be the first to utilize LyondellBasell's new proprietary Hyperzone PE technology. HDPE is one of the most versatile plastics because it is lightweight, yet very strong; impact resistant; weather resistant; it can be molded into almost any shape and is widely recyclable. Construction is scheduled to begin in early 2017 with start-up planned for 2019. Additionally, development of a world scale propylene oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is progressing.
Ethylene is a basic chemical building block used in consumer products such as housewares, construction materials, automotive parts, food packaging and personal care products. Global demand for ethylene has consistently grown at a 4 percent annual rate, according to IHS Markit.
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 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. More information about LyondellBasell can be found at www.lyb.com.
Forward-Looking Statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. 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, 2015, 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
SOURCE LyondellBasell
Article Date
1/19/2017LyondellBasell announces planned leadership changes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Jan. 18, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies today announced a planned executive leadership change.
After seven years with LyondellBasell, Kevin Brown, executive vice president – manufacturing and refining and a member of the company's management board, has announced he will be retiring in mid-February.
Kevin will be replaced by Daniel Coombs, who currently serves as the executive vice president – global olefins & polyolefins (O&P) and technology and is a member of the company's management board. In addition to manufacturing and refining, in his new role, Mr. Coombs will have additional responsibility for the company's technology business, global projects, global engineering services and procurement functions. Mr. Coombs has more than 38 years of industry experience, including 22 years in manufacturing in the United States and the Middle East as well as major capital project management.
"Since joining the company in 2009, Kevin has played a key role in our company's success and development. His work has helped to establish a solid foundation for sustainable performance over the longer term and I want to thank him for his hard work and significant contributions," said Bob Patel, LyondellBasell CEO and chairman of the management board. "I am also very pleased that Dan will be taking on this important role. Having a deep bench of quality talent like Dan ensures a seamless transition of responsibilities."
As a result of these changes, Paul Augustowski, currently senior vice president – O&P Americas, will no longer report to Mr. Coombs and will report directly to Mr. Patel. Similarly, Richard Roudeix, currently senior vice president – O&P Europe, will report directly to Mr. Patel as well. Mr. Roudeix will expand his responsibilities to include the entire O&P Europe, Asia and International segment, which includes joint ventures and related marketing and PP compounding. In connection with these responsibilities, Mr. Roudeix's title will change to senior vice president – O&P Europe, Asia and International.
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) 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.
SOURCE LyondellBasell
Article Date
1/18/20171/13/2017 - LyondellBasell Donation to Provide Specialized Training for Six Houston-Area Fire Departments
LyondellBasell Donation to Provide Specialized Training for Six Houston-Area Fire Departments
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Jan. 13, 2017 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, announced a donation of $100,000 to fund specialized emergency training for six Houston-area fire departments that serve key industrial corridors.
The donation will underwrite hazardous materials (HazMat) training scholarships for fire departments in Houston, Channelview, Pasadena, La Porte, Sheldon and Mont Belvieu. Texas A&M Engineering Extension Service (TEEX), an internationally-recognized leader in emergency response training and firefighting, will administer the training to the fire departments.
"We recognize the challenges fire departments in Houston and smaller outlying communities face in obtaining this unique type of training. We believe in being a responsible, good neighbor where we operate and are pleased we can help in saving lives and protecting our communities," said Bob Patel, LyondellBasell CEO and chairman of the management board. "We are honored to play a small role in ensuring that the brave men and women who put their lives on the line every day are even better prepared to safely do their jobs."
The greater Houston area is home to many industrial facilities including refineries, storage terminals and chemical plants that handle a variety of materials and products. The TEEX courses will train firefighters specifically in handling incidents involving different hazardous materials that require specialized response tactics.
According to Houston Mayor Sylvester Turner, the training provided by the scholarship donation is an essential resource that will help prepare area fire departments for all types of emergencies.
"This donation will go a long way toward better equipping our firefighters with the expertise they need when responding to industrial related emergencies," said Turner. "LyondellBasell is such a wonderful community partner. They never hesitate to step forward to help out. I want to thank them for their generosity."
The LyondellBasell donation will provide more than 1,200 hours of instruction in TEEX's HazMat training program. Fire departments will have the option of attending classes either at the Brayton Fire Training Field in College Station, Texas, or onsite at their fire stations using TEEX's mobile training units.
"This generous donation by LyondellBasell will help enhance the region's operational and hazardous materials response readiness. With Houston being the 'energy capital of the world,' it is important that we stay up to date with the dynamic arena that is hazardous materials," said Houston Fire Chief Samuel Peña. "I would like to thank Mayor Turner and Bob Patel for their leadership and commitment to our area fire departments."
The donation of HazMat training is LyondellBasell's most recent effort to partner with and support local first responders. The company regularly coordinates with fire departments and other mutual aid groups to cross train at its facilities in order to increase overall response effectiveness. The company also donated funds to purchase essential safety equipment for Harris County Sheriff's Industrial Unit Deputies, tactical vests for the Houston Police Department, and three rescue boats for the Houston Fire Department.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies, with more than 4,000 employees in the greater Houston area and 13,000 employees worldwide. 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. More information about LyondellBasell can be found at www.lyb.com.
About Texas A&M Engineering Extension Service
TEEX is an internationally recognized leader in the delivery of emergency response, homeland security and workforce training, technical assistance and economic development. Last year, TEEX served more than 168,000 people from every U.S. state and territory and 82 countries worldwide. TEEX makes a difference by providing training, developing practical solutions and saving lives. More information about TEEX can be found at www.teex.org.
SOURCE LyondellBasell
Article Date
1/13/201711/18/2016 - LyondellBasell Board Authorizes Interim Dividend
LyondellBasell Board Authorizes Interim Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Nov. 18, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare an interim dividend of $0.85 per share. The interim dividend will be paid December 13, 2016 to shareholders of record November 29, 2016 with an ex-dividend date of November 25, 2016.
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) 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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell Industries
Article Date
11/18/2016LyondellBasell to Address Citi's Basic Materials Conference
Source: PR Newswire
HOUSTON and NEW YORK, Nov. 17, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Jim Guilfoyle, senior vice president, Global Intermediates & Derivatives and Global Supply Chain, will address investors at Citi's Basic Materials Conference on November 29, 2016, at 10:15 a.m. EST. The conference will take place at The Ritz-Carlton New York, Battery Park.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) 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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
11/17/2016LyondellBasell to Address Morgan Stanley Global Chemicals and Agriculture Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, Nov. 2, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Doug Pike, vice president of Investor Relations, will address investors at the Morgan Stanley Global Chemicals and Agriculture Conference on November 14, 2016, at 8:00 a.m. EST. The conference will take place at the Four Seasons Hotel Boston.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) 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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
11/2/2016LyondellBasell Reports Third-Quarter 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Nov. 1, 2016 /PRNewswire/ --
Third Quarter 2016 Highlights
Comparisons with the prior quarter and third quarter 2015 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) |
2016 |
2016 |
2015 |
2016 |
2015 |
||||
|
Sales and other operating revenues |
$7,365 |
$7,328 |
$8,334 |
$21,436 |
$25,664 |
||||
|
Net income(a) |
953 |
1,091 |
1,186 |
3,074 |
3,679 |
||||
|
Income from continuing operations(b) |
955 |
1,092 |
1,189 |
3,077 |
3,682 |
||||
|
Diluted earnings per share (U.S. dollars): |
|||||||||
|
Net income(c) |
2.30 |
2.56 |
2.54 |
7.23 |
7.77 |
||||
|
Income from continuing operations(b) |
2.31 |
2.56 |
2.55 |
7.24 |
7.78 |
||||
|
Diluted share count (millions) |
414 |
425 |
463 |
424 |
473 |
||||
|
EBITDA(d) |
1,606 |
1,783 |
2,001 |
5,196 |
6,139 |
||||
|
Excluding LCM1 Impact: |
|||||||||
|
LCM charges (benefits), pre-tax |
- - |
(68) |
181 |
- - |
264 |
||||
|
Income from continuing operations(b) |
955 |
1,045 |
1,303 |
3,077 |
3,848 |
||||
|
Diluted earnings per share (U.S. dollars): |
|||||||||
|
Income from continuing operations(b) |
2.31 |
2.45 |
2.80 |
7.24 |
8.13 |
||||
|
EBITDA(d) |
1,606 |
1,715 |
2,182 |
5,196 |
6,403 |
||||
|
(a) |
Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10. | |||||||
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. | |||||||
|
(c) |
Includes diluted earnings (loss) 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. | |||||||
|
__________________________________ |
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2016 of approximately $1.0 billion, or $2.31 per share. Third quarter 2016 EBITDA was $1.6 billion.
"Third quarter earnings were $2.31 per share; remaining on a 2016 annual pace that exceeds $9.00 per share. During the quarter and throughout the year, the strong contribution from our European olefins and polyolefins business has demonstrated the geographic balance within our portfolio. This has been particularly significant as our North American olefins and polyolefins business results have been impacted by a heavy planned maintenance schedule. Both regions experienced continued strong polyolefin demand. Within our refining business, operating disruptions impacted third quarter results," said Bob Patel, LyondellBasell's CEO.
OUTLOOK
"During October, global olefin and polyolefin industry conditions have remained favorable. We anticipate that the winter months will bring some typical seasonal slowing in select business lines. The fourth quarter marks the completion of a period of significant planned maintenance and associated downtime in our olefin and polyolefin assets. During 2017, our planned maintenance schedule is much lighter than 2016, and we will be positioned to benefit from our investment in system upgrades, reliability and expansions," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins & Polyolefins – Americas; 2) Olefins & Polyolefins – Europe, Asia and International (EAI); 3) Intermediates & Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & 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 |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$582 |
$646 |
$740 |
$1,935 |
$2,594 | |
|
EBITDA |
682 |
754 |
841 |
2,314 |
2,886 | |
|
LCM charges, pre-tax |
- - |
- - |
79 |
- - |
101 | |
|
EBITDA excluding LCM adjustments |
682 |
754 |
920 |
2,314 |
2,987 | |
Three months ended September 30, 2016 versus three months ended June 30, 2016 – EBITDA decreased $72 million for the third quarter 2016 versus the second quarter 2016. Compared to the prior period, underlying olefin results increased approximately $15 million. Ethylene price increased approximately 4 cents per pound. Combined polyolefin results declined by $70 million. Polyethylene spreads decreased by approximately 4 cents per pound. Polyethylene sales volumes improved by approximately 6 percent as inventory management offset planned maintenance. Polypropylene spreads declined by 9 cents per pound partially offset by volumes which increased approximately 13 percent. Joint venture equity income declined by $8 million.
Three months ended September 30, 2016 versus three months ended September 30, 2015 – EBITDA decreased $238 million versus the third quarter 2015, excluding a favorable $79 million quarter to quarter variance as a result of an LCM inventory adjustment. Olefin results declined by $120 million. Third quarter was impacted by planned maintenance activities at Corpus Christi and Morris, Illinois. Combined polyolefin results declined approximately $110 million versus the prior year period. Polyethylene results declined primarily due to a margin decline of approximately 7 cents per pound. Polyethylene sales volumes declined by approximately 4 percent due to planned facility maintenance during the quarter. Polypropylene sales volumes and margins were relatively unchanged. Joint venture equity income was unchanged.
Olefins & 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 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 |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$447 |
$423 |
$412 |
$1,228 |
$1,007 | |
|
EBITDA |
584 |
576 |
549 |
1,669 |
1,398 | |
|
LCM charges (benefits), pretax |
- - |
(40) |
6 |
- - |
6 | |
|
EBITDA excluding LCM adjustments |
584 |
536 |
555 |
1,669 |
1,404 | |
Three months ended September 30, 2016 versus three months ended June 30, 2016 – EBITDA increased by $48 million versus the second quarter 2016, excluding an unfavorable $40 million quarter to quarter variance as a result of an LCM inventory adjustment. The third quarter benefited $11 million from the restructuring of Asian polypropylene joint ventures and the sale of Australian polypropylene assets. Olefin results increased approximately $95 million as margins increased approximately 7 cents per pound. Olefins also benefitted from increased volume due to the absence of second quarter maintenance. Combined polyolefin results declined $25 million primarily due to lower polyethylene margins. Polypropylene compounds and polybutene-1 results decreased by $10 million. Equity income declined by $29 million due to scheduled joint venture maintenance.
Three months ended September 30, 2016 versus three months ended September 30, 2015 – EBITDA increased by $29 million versus the third quarter 2015, excluding a favorable $6 million quarter to quarter variance as a result of an LCM inventory adjustment. The third quarter of 2016 benefited $11 million from the restructuring of Asian polypropylene joint ventures and the sale of Australian polypropylene assets. Olefin results were relatively unchanged. Combined polyolefin results increased approximately $20 million as spreads improved while volumes declined by approximately 5 percent. Polypropylene compounds and polybutene-1 results improved by approximately $15 million. Equity income declined by $12 million due to scheduled joint venture maintenance.
Intermediates & 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), ethylene oxide and its derivatives, and oxyfuels.
|
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 |
2016 |
2016 |
2015 |
2016 |
2015 |
|
Operating income |
$240 |
$327 |
$403 |
$822 |
$1,079 |
|
EBITDA |
304 |
397 |
460 |
1,027 |
1,263 |
|
LCM charges (benefits), pre-tax |
- - |
(28) |
46 |
- - |
107 |
|
EBITDA excluding LCM adjustments |
304 |
369 |
506 |
1,027 |
1,370 |
Three months ended September 30, 2016 versus three months ended June 30, 2016 –EBITDA decreased $65 million versus the second quarter 2016, excluding an unfavorable $28 million quarter to quarter variance as a result of an LCM adjustment related to inventory. Results for PO and PO derivatives declined by approximately $15 million primarily due to declining margins. Intermediate chemicals results declined by approximately $60 million, primarily due to a styrene margin decline of approximately 3 cents per pound. Lower ethanol, ethylene oxide, and ethylene glycol results also contributed. Oxyfuels were relatively unchanged with sales volume increases offset by lower margins. Equity income from joint ventures was relatively unchanged.
Three months ended September 30, 2016 versus three months ended September 30, 2015 – EBITDA decreased $202 million versus the third quarter 2015, excluding a favorable $46 million quarter to quarter variance as a result of an LCM inventory adjustment. Results for PO and PO derivatives declined by approximately $50 million due to lower margins while volumes increased approximately 8 percent. Intermediate chemicals results declined by approximately $130 million primarily due to methanol, styrene, and ethylene glycol margins. Oxyfuels results decreased approximately $20 million relative to very strong third quarter 2015 margins. Equity income from joint ventures 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 |
2016 |
2016 |
2015 |
2016 |
2015 |
|
Operating income (loss) |
($56) |
($53) |
$52 |
($139) |
$245 |
|
EBITDA |
(10) |
(13) |
93 |
(9) |
401 |
|
LCM charges, pre-tax |
- - |
- - |
50 |
- - |
50 |
|
EBITDA excluding LCM adjustments |
(10) |
(13) |
143 |
(9) |
451 |
Three months ended September 30, 2016 versus three months ended June 30, 2016 – EBITDA increased $3 million versus the second quarter 2016. During the third quarter, operating rates were limited to 209,000 barrels per day due to operational disruptions. The Maya 2-1-1 industry benchmark crack spread decreased by $2.09 per barrel, averaging $18.98 per barrel.
Three months ended September 30, 2016 versus three months ended September 30, 2015 – EBITDA decreased $153 million versus the third quarter 2015, excluding a favorable $50 million quarter to quarter variance as a result of an LCM inventory adjustment. Third quarter 2016 throughput was down by 40,000 barrels per day from the prior year period due to operational disruptions. The Maya 2-1-1 industry benchmark crack spread decreased by $3.79 per barrel.
Technology Segment – The Technology segment has global responsibility for our polyolefin catalyst business and our process technology licensing business.
|
Table 6 - Technology Financial Overview | ||||||
|
Three Months Ended |
Nine Months Ended | |||||
|
September 30, |
June 30, |
September 30, |
September 30, | |||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 | |
|
Operating income |
$35 |
$62 |
$34 |
$170 |
$143 | |
|
EBITDA |
45 |
73 |
45 |
201 |
178 | |
Three months ended September 30, 2016 versus three months ended June 30, 2016 – EBITDA decreased by $28 million due to the timing of licensing revenue.
Three months ended September 30, 2016 versus three months ended September 30, 2015 – EBITDA was unchanged with improved catalyst results partially offset by licensing results.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $586 million during the third quarter 2016. Our cash and liquid investment balance was $2.1 billion at September 30, 2016. We repurchased 10.3 million ordinary shares during the third quarter 2016. There were 409 million common shares outstanding as of September 30, 2016. The company paid dividends of $351 million during the third quarter of 2016.
CONFERENCE CALL
LyondellBasell will host a conference call November 1 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer 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 6934553.
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. EDT November 1 until December 1 at 11:59 p.m. EDT. The replay dial-in numbers are 866-425-0182 (U.S.) and +1 203-369-0874 (international). The pass code for each is 11116.
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 55 sites in 17 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, 2015, 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 related to our use of LIFO accounting and the recent decline 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) | |||||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | ||||||||||||||||||||
|
Sales and other operating revenues: |
|||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,551 |
$ |
2,679 |
$ |
2,516 |
$ |
2,218 |
$ |
9,964 |
$ |
2,115 |
$ |
2,211 |
$ |
2,342 |
$ |
6,668 | |||||||||||
|
Olefins & Polyolefins - EAI |
2,911 |
3,061 |
2,932 |
2,672 |
11,576 |
2,578 |
2,721 |
2,634 |
7,933 | ||||||||||||||||||||
|
Intermediates & Derivatives |
1,918 |
2,159 |
2,039 |
1,656 |
7,772 |
1,702 |
1,769 |
1,805 |
5,276 | ||||||||||||||||||||
|
Refining |
1,607 |
2,102 |
1,693 |
1,155 |
6,557 |
955 |
1,289 |
1,330 |
3,574 | ||||||||||||||||||||
|
Technology |
136 |
107 |
100 |
122 |
465 |
132 |
129 |
102 |
363 | ||||||||||||||||||||
|
Other/elims |
(938) |
(963) |
(946) |
(752) |
(3,599) |
(739) |
(791) |
(848) |
(2,378) | ||||||||||||||||||||
|
Continuing Operations |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
21,436 | |||||||||||
|
Operating income (loss): |
|||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
934 |
$ |
920 |
$ |
740 |
$ |
662 |
$ |
3,256 |
$ |
707 |
$ |
646 |
$ |
582 |
$ |
1,935 | |||||||||||
|
Olefins & Polyolefins - EAI |
236 |
359 |
412 |
302 |
1,309 |
358 |
423 |
447 |
1,228 | ||||||||||||||||||||
|
Intermediates & Derivatives |
271 |
405 |
403 |
145 |
1,224 |
255 |
327 |
240 |
822 | ||||||||||||||||||||
|
Refining |
74 |
119 |
52 |
(101) |
144 |
(30) |
(53) |
(56) |
(139) | ||||||||||||||||||||
|
Technology |
64 |
45 |
34 |
54 |
197 |
73 |
62 |
35 |
170 | ||||||||||||||||||||
|
Other |
(4) |
(3) |
9 |
(10) |
(8) |
(3) |
(2) |
1 |
(4) | ||||||||||||||||||||
|
Continuing Operations |
$ |
1,575 |
$ |
1,845 |
$ |
1,650 |
$ |
1,052 |
$ |
6,122 |
$ |
1,360 |
$ |
1,403 |
$ |
1,249 |
$ |
4,012 | |||||||||||
|
Depreciation and amortization: |
|||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
86 |
$ |
85 |
$ |
87 |
$ |
95 |
$ |
353 |
$ |
90 |
$ |
88 |
$ |
87 |
$ |
265 | |||||||||||
|
Olefins & Polyolefins - EAI |
55 |
54 |
54 |
56 |
219 |
55 |
58 |
58 |
171 | ||||||||||||||||||||
|
Intermediates & Derivatives |
60 |
56 |
55 |
62 |
233 |
70 |
69 |
62 |
201 | ||||||||||||||||||||
|
Refining |
74 |
40 |
41 |
41 |
196 |
43 |
40 |
40 |
123 | ||||||||||||||||||||
|
Technology |
12 |
12 |
11 |
11 |
46 |
10 |
11 |
10 |
31 | ||||||||||||||||||||
|
Continuing Operations |
$ |
287 |
$ |
247 |
$ |
248 |
$ |
265 |
$ |
1,047 |
$ |
268 |
$ |
266 |
$ |
257 |
$ |
791 | |||||||||||
|
EBITDA: (b) |
|||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
1,031 |
$ |
1,014 |
$ |
841 |
$ |
775 |
$ |
3,661 |
$ |
878 |
$ |
754 |
$ |
682 |
$ |
2,314 | |||||||||||
|
Olefins & Polyolefins - EAI |
357 |
492 |
549 |
427 |
1,825 |
509 |
576 |
584 |
1,669 | ||||||||||||||||||||
|
Intermediates & Derivatives |
337 |
466 |
460 |
212 |
1,475 |
326 |
397 |
304 |
1,027 | ||||||||||||||||||||
|
Refining |
149 |
159 |
93 |
(59) |
342 |
14 |
(13) |
(10) |
(9) | ||||||||||||||||||||
|
Technology |
76 |
57 |
45 |
65 |
243 |
83 |
73 |
45 |
201 | ||||||||||||||||||||
|
Other |
2 |
(2) |
13 |
(26) |
(13) |
(3) |
(4) |
1 |
(6) | ||||||||||||||||||||
|
Continuing Operations |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
5,196 | |||||||||||
|
Capital, turnarounds and IT deferred spending: |
|||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
149 |
$ |
140 |
$ |
159 |
$ |
220 |
$ |
668 |
$ |
303 |
$ |
339 |
$ |
384 |
$ |
1,026 | |||||||||||
|
Olefins & Polyolefins - EAI |
38 |
27 |
49 |
72 |
186 |
81 |
60 |
48 |
189 | ||||||||||||||||||||
|
Intermediates & Derivatives |
76 |
76 |
135 |
154 |
441 |
76 |
80 |
90 |
246 | ||||||||||||||||||||
|
Refining |
33 |
28 |
23 |
24 |
108 |
57 |
71 |
51 |
179 | ||||||||||||||||||||
|
Technology |
6 |
3 |
7 |
8 |
24 |
6 |
9 |
9 |
24 | ||||||||||||||||||||
|
Other |
4 |
4 |
- - |
5 |
13 |
4 |
4 |
4 |
12 | ||||||||||||||||||||
|
Continuing Operations |
$ |
306 |
$ |
278 |
$ |
373 |
$ |
483 |
$ |
1,440 |
$ |
527 |
$ |
563 |
$ |
586 |
$ |
1,676 | |||||||||||
|
(a) |
EBITDA as presented herein includes the impacts of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. EBITDA for the first quarter of 2016 includes a pre-tax LCM adjustment of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. See Tables 2 through 6 for LCM adjustments recorded for each segment. |
|
(b) |
See Table 8 for EBITDA calculation. |
|
Table 8 - EBITDA Calculation | ||||||||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||
|
Net income(a) |
$ |
1,164 |
$ |
1,329 |
$ |
1,186 |
$ |
795 |
$ |
4,474 |
$ |
1,030 |
$ |
1,091 |
$ |
953 |
$ |
3,074 | ||||||||||
|
(Income) loss from discontinued operations, net of tax |
3 |
(3) |
3 |
2 |
5 |
- - |
1 |
2 |
3 | |||||||||||||||||||
|
Income from continuing operations(a) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 |
1,092 |
955 |
3,077 | |||||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 |
346 |
326 |
1,104 | |||||||||||||||||||
|
Depreciation and amortization |
287 |
247 |
248 |
265 |
1,047 |
268 |
266 |
257 |
791 | |||||||||||||||||||
|
Interest expense, net |
58 |
72 |
77 |
70 |
277 |
77 |
79 |
68 |
224 | |||||||||||||||||||
|
EBITDA(b) |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 |
$ |
1,783 |
$ |
1,606 |
$ |
5,196 | ||||||||||
|
(a) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
|
(b) |
EBITDA as presented herein includes the impact of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. |
|
Table 9 - Selected Segment Operating Information | ||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | ||||||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||
|
Ethylene produced |
2,364 |
2,415 |
2,514 |
2,391 |
9,684 |
2,392 |
1,899 |
1,939 |
6,230 | |||||||||||||
|
Propylene produced |
805 |
740 |
697 |
798 |
3,040 |
832 |
748 |
575 |
2,155 | |||||||||||||
|
Polyethylene sold |
1,473 |
1,575 |
1,577 |
1,578 |
6,203 |
1,554 |
1,426 |
1,517 |
4,497 | |||||||||||||
|
Polypropylene sold |
627 |
698 |
662 |
606 |
2,593 |
612 |
582 |
659 |
1,853 | |||||||||||||
|
Benchmark Market Prices |
||||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
48.57 |
57.95 |
45.36 |
42.16 |
48.71 |
33.63 |
46.01 |
44.94 |
41.65 | |||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
52.84 |
62.93 |
50.20 |
43.53 |
52.36 |
35.34 |
47.39 |
46.52 |
43.20 | |||||||||||||
|
Houston Ship Channel natural gas (USD per million BTUs) |
2.76 |
2.76 |
2.72 |
2.11 |
2.57 |
1.93 |
2.06 |
2.79 |
2.26 | |||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
10.2 |
9.7 |
9.6 |
10.9 |
10.1 |
9.8 |
12.0 |
10.6 |
10.8 | |||||||||||||
|
U.S. ethylene (cents/pound) |
34.8 |
34.2 |
30.3 |
27.5 |
31.7 |
26.7 |
30.3 |
33.0 |
30.0 | |||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
65.7 |
67.3 |
64.3 |
57.0 |
63.6 |
52.3 |
59.0 |
60.7 |
57.3 | |||||||||||||
|
U.S. propylene (cents/pound) |
49.7 |
41.7 |
33.2 |
31.3 |
39.0 |
31.0 |
32.7 |
37.8 |
33.8 | |||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.7 |
61.7 |
59.3 |
62.7 |
62.8 |
67.8 |
61.7 |
60.2 |
63.2 | |||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||
|
Ethylene produced |
1,007 |
1,047 |
944 |
978 |
3,976 |
950 |
941 |
1,066 |
2,957 | |||||||||||||
|
Propylene produced |
600 |
632 |
575 |
575 |
2,382 |
555 |
577 |
649 |
1,781 | |||||||||||||
|
Polyethylene sold |
1,533 |
1,360 |
1,304 |
1,379 |
5,576 |
1,434 |
1,386 |
1,315 |
4,135 | |||||||||||||
|
Polypropylene sold |
1,817 |
1,529 |
1,673 |
1,757 |
6,776 |
1,773 |
1,617 |
1,509 |
4,899 | |||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
22.9 |
23.2 |
14.4 |
22.5 |
20.8 |
16.3 |
21.2 |
17.9 |
18.5 | |||||||||||||
|
Western Europe ethylene |
39.3 |
47.1 |
46.6 |
41.4 |
43.6 |
38.4 |
41.1 |
42.3 |
40.6 | |||||||||||||
|
Western Europe polyethylene [high density] |
45.2 |
60.6 |
61.2 |
56.9 |
56.0 |
55.4 |
57.6 |
55.7 |
56.2 | |||||||||||||
|
Western Europe propylene |
37.1 |
44.4 |
41.7 |
31.0 |
38.5 |
26.3 |
28.8 |
30.7 |
28.6 | |||||||||||||
|
Western Europe polypropylene [homopolymer] |
49.8 |
62.5 |
59.3 |
47.4 |
54.7 |
46.5 |
49.5 |
49.5 |
48.5 | |||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||
|
Propylene oxide and derivatives sold |
870 |
751 |
697 |
682 |
3,000 |
793 |
743 |
752 |
2,288 | |||||||||||||
|
Ethylene oxide and derivatives sold |
268 |
312 |
282 |
237 |
1,099 |
301 |
233 |
224 |
758 | |||||||||||||
|
Styrene monomer sold |
903 |
735 |
904 |
889 |
3,431 |
917 |
933 |
911 |
2,761 | |||||||||||||
|
Acetyls sold |
547 |
810 |
733 |
623 |
2,713 |
702 |
821 |
751 |
2,274 | |||||||||||||
|
TBA Intermediates sold |
433 |
321 |
421 |
371 |
1,546 |
415 |
391 |
410 |
1,216 | |||||||||||||
|
Volumes (million gallons) |
||||||||||||||||||||||
|
MTBE/ETBE sold |
229 |
299 |
268 |
258 |
1,054 |
270 |
278 |
298 |
846 | |||||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||||
|
MTBE - Northwest Europe |
64.0 |
106.0 |
119.0 |
49.8 |
85.1 |
44.4 |
78.7 |
55.3 |
59.5 | |||||||||||||
|
Refining |
||||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||||
|
Heavy crude oil processing rate |
241 |
255 |
249 |
206 |
238 |
186 |
183 |
209 |
192 | |||||||||||||
|
Benchmark Market Margins |
||||||||||||||||||||||
|
Light crude oil - 2-1-1 |
15.02 |
16.42 |
15.29 |
9.44 |
14.04 |
8.67 |
11.52 |
11.46 |
10.58 | |||||||||||||
|
Light crude oil - Maya differential |
8.72 |
7.56 |
7.48 |
9.11 |
8.26 |
9.19 |
9.55 |
7.52 |
8.74 | |||||||||||||
|
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 | ||||||||||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||||
|
Sales and other operating revenues |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 |
$ |
7,328 |
$ |
7,365 |
$ |
21,436 | ||||||||||||
|
Cost of sales(a) |
6,379 |
7,047 |
6,465 |
5,792 |
25,683 |
5,166 |
5,702 |
5,903 |
16,771 | |||||||||||||||||||||
|
Selling, general and administrative expenses |
205 |
228 |
194 |
201 |
828 |
193 |
199 |
188 |
580 | |||||||||||||||||||||
|
Research and development expenses |
26 |
25 |
25 |
26 |
102 |
24 |
24 |
25 |
73 | |||||||||||||||||||||
|
Operating income(a) |
1,575 |
1,845 |
1,650 |
1,052 |
6,122 |
1,360 |
1,403 |
1,249 |
4,012 | |||||||||||||||||||||
|
Income from equity investments |
69 |
90 |
93 |
87 |
339 |
91 |
117 |
81 |
289 | |||||||||||||||||||||
|
Interest expense, net |
(58) |
(72) |
(77) |
(70) |
(277) |
(77) |
(79) |
(68) |
(224) | |||||||||||||||||||||
|
Other income (expense), net(b) |
21 |
4 |
10 |
(10) |
25 |
88 |
(3) |
19 |
104 | |||||||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) |
1,607 |
1,867 |
1,676 |
1,059 |
6,209 |
1,462 |
1,438 |
1,281 |
4,181 | |||||||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 |
346 |
326 |
1,104 | |||||||||||||||||||||
|
Income from continuing operations(c) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 |
1,092 |
955 |
3,077 | |||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
(3) |
3 |
(3) |
(2) |
(5) |
- - |
(1) |
(2) |
(3) | |||||||||||||||||||||
|
Net income(c) |
1,164 |
1,329 |
1,186 |
795 |
4,474 |
1,030 |
1,091 |
953 |
3,074 | |||||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
2 |
1 |
(1) |
- - |
2 |
- - |
- - |
(1) |
(1) | |||||||||||||||||||||
|
Net income attributable to the Company shareholders(c) |
$ |
1,166 |
$ |
1,330 |
$ |
1,185 |
$ |
795 |
$ |
4,476 |
$ |
1,030 |
$ |
1,091 |
$ |
952 |
$ |
3,073 | ||||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
|
(b) |
Includes a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary in the second quarter of 2016. |
|
(c) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and an after-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes an after tax LCM benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment. |
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations |
|||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | ||||||||||||||||||
|
Pretax charges (benefits): |
|||||||||||||||||||||||||||
|
Gain on sale of wholly owned subsidiary |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
(78) |
- - |
- - |
(78) | ||||||||||||
|
Lower of cost or market inventory adjustment |
92 |
(9) |
181 |
284 |
548 |
68 |
$ |
(68) |
$ |
- - |
$ |
- - | |||||||||||||||
|
Emission allowance credits, amortization |
35 |
- - |
- - |
- - |
35 |
- - |
- - |
- - |
- - | ||||||||||||||||||
|
Total pretax charges (benefits) |
127 |
(9) |
181 |
284 |
583 |
(10) |
(68) |
- - |
(78) | ||||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(47) |
3 |
(67) |
(99) |
(210) |
(21) |
21 |
- - |
- - | ||||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
80 |
$ |
(6) |
$ |
114 |
$ |
185 |
$ |
373 |
$ |
(31) |
$ |
(47) |
$ |
- - |
$ |
(78) | |||||||||
|
Effect on diluted earnings per share |
$ |
(0.17) |
$ |
0.02 |
$ |
(0.25) |
$ |
(0.42) |
$ |
(0.80) |
$ |
0.07 |
$ |
0.11 |
$ |
- - |
$ |
0.19 | |||||||||
|
Table 12 - Unaudited Cash Flow Information | ||||||||||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
YTD | |||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
1,468 |
$ |
1,446 |
$ |
1,768 |
$ |
1,160 |
$ |
5,842 |
$ |
1,300 |
$ |
1,261 |
$ |
1,332 |
$ |
3,893 | ||||||||||||
|
Net cash provided by (used in) investing activities |
(443) |
(727) |
67 |
52 |
(1,051) |
(597) |
(471) |
(459) |
(1,527) | |||||||||||||||||||||
|
Net cash used in financing activities |
(401) |
(1,021) |
(1,684) |
(1,744) |
(4,850) |
(333) |
(1,039) |
(1,195) |
(2,567) | |||||||||||||||||||||
|
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) |
2015 |
2015 |
2015 |
2015 |
2016 |
2016 |
2016 | ||||||||||||||||||||
|
Cash and cash equivalents |
$ |
1,616 |
$ |
1,325 |
$ |
1,474 |
$ |
924 |
$ |
1,318 |
$ |
1,060 |
$ |
740 | |||||||||||||
|
Restricted cash |
2 |
3 |
1 |
7 |
4 |
4 |
4 | ||||||||||||||||||||
|
Short-term investments |
1,478 |
1,989 |
1,602 |
1,064 |
1,332 |
1,023 |
1,090 | ||||||||||||||||||||
|
Accounts receivable, net |
3,089 |
3,373 |
2,924 |
2,517 |
2,683 |
2,806 |
2,852 | ||||||||||||||||||||
|
Inventories |
4,267 |
4,179 |
4,138 |
4,051 |
3,978 |
4,009 |
4,015 | ||||||||||||||||||||
|
Prepaid expenses and other current assets(a) |
1,195 |
1,121 |
1,059 |
1,226 |
1,009 |
1,081 |
852 | ||||||||||||||||||||
|
Total current assets |
11,647 |
11,990 |
11,198 |
9,789 |
10,324 |
9,983 |
9,553 | ||||||||||||||||||||
|
Property, plant and equipment, net |
8,430 |
8,636 |
8,793 |
8,991 |
9,373 |
9,681 |
10,057 | ||||||||||||||||||||
|
Investments and long-term receivables: |
|||||||||||||||||||||||||||
|
Investment in PO joint ventures |
373 |
357 |
357 |
397 |
398 |
390 |
399 | ||||||||||||||||||||
|
Equity investments |
1,581 |
1,612 |
1,602 |
1,608 |
1,734 |
1,610 |
1,681 | ||||||||||||||||||||
|
Other investments and long-term receivables |
38 |
126 |
125 |
122 |
18 |
18 |
17 | ||||||||||||||||||||
|
Goodwill |
533 |
543 |
543 |
536 |
548 |
542 |
543 | ||||||||||||||||||||
|
Intangible assets, net |
695 |
671 |
644 |
640 |
618 |
588 |
562 | ||||||||||||||||||||
|
Other assets(a) |
637 |
600 |
605 |
674 |
559 |
623 |
607 | ||||||||||||||||||||
|
Total assets |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 | |||||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
3 |
$ |
3 |
$ |
4 |
$ |
4 |
$ |
4 |
$ |
3 | |||||||||||||
|
Short-term debt |
514 |
582 |
573 |
353 |
594 |
616 |
621 | ||||||||||||||||||||
|
Accounts payable |
2,631 |
2,755 |
2,450 |
2,182 |
2,243 |
2,357 |
2,329 | ||||||||||||||||||||
|
Accrued liabilities |
1,482 |
1,455 |
1,784 |
1,810 |
1,600 |
1,374 |
1,357 | ||||||||||||||||||||
|
Deferred income taxes(a) |
429 |
434 |
383 |
- - |
- - |
- - |
- - | ||||||||||||||||||||
|
Total current liabilities |
5,060 |
5,229 |
5,193 |
4,349 |
4,441 |
4,351 |
4,310 | ||||||||||||||||||||
|
Long-term debt |
7,677 |
7,658 |
7,674 |
7,671 |
8,504 |
8,485 |
8,464 | ||||||||||||||||||||
|
Other liabilities |
2,038 |
2,063 |
2,044 |
2,036 |
2,125 |
2,143 |
2,151 | ||||||||||||||||||||
|
Deferred income taxes(a) |
1,653 |
1,635 |
1,604 |
2,127 |
2,134 |
2,149 |
2,387 | ||||||||||||||||||||
|
Stockholders' equity |
7,478 |
7,927 |
7,328 |
6,550 |
6,344 |
6,283 |
6,082 | ||||||||||||||||||||
|
Non-controlling interests |
28 |
23 |
24 |
24 |
24 |
24 |
25 | ||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 |
$ |
23,435 |
$ |
23,419 | |||||||||||||
|
(a) |
Our prospective adoption of ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, in December 2015 resulted in the classification of our deferred taxes as of December 2015 as noncurrent. |
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell Industries
Article Date
11/1/2016LyondellBasell to Discuss Third-Quarter Results on Tuesday, November 1, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Oct. 17, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce third-quarter financial results before the U.S. market opens on Tuesday, November 1, to be followed by a webcast and teleconference to discuss results at 11 a.m. EDT.
Teleconference and Webcast Details:
Tuesday, November 1, 2016
11 a.m. EDT
Hosted by Doug Pike, Vice President, Investor Relations
Access the webcast 10 to 15 minutes prior to the call at www.lyb.com/earnings
Toll-Free Teleconference Dial-In Numbers:
United States: 888-677-1826
United Kingdom: 0800-279-9630
Netherlands: 0800-343-4364
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EDT November 1 until December 1 at 11:59 p.m. EDT.
The replay dial-in numbers are:
Toll Free: 866-425-0182
Toll: 203-369-0874
Passcode: 11116
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) 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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
10/17/2016LyondellBasell Will Build High Density Polyethylene Plant at La Porte, Texas, Complex
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Sept. 9, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, has selected its La Porte, Texas, manufacturing complex as the site for a new High Density Polyethylene (HDPE) Plant. The plant will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology and will have an annual capacity of 1.1 billion pounds (500,000 metric tons). The project is expected to create up to 1,000 jobs at the peak of construction and as many as 75 full time positions. Construction is scheduled to begin in early 2017 with start-up planned for 2019.
"This project represents the next generation of technology," said Bob Patel, LyondellBasell CEO and Chairman of the Management Board. "This location is ideal for this facility because of the feedstock advantage we enjoy, the ability to ship product around the world and, most importantly, the outstanding workforce that the Gulf Coast has to offer."
Located on the south shore of the Houston Ship Channel, LyondellBasell's La Porte complex spans 540 acres and produces ethylene, propylene, Linear Low-Density Polyethylene (LLDPE) and Low-Density Polyethylene (LDPE). LLDPE, LDPE and HDPE are thermoplastics used to manufacture a wide variety of plastic products used in everyday life such as bottles, bags, containers, toys, food packaging, healthcare articles, automotive applications and industrial packaging. The La Porte complex is also the primary location for LyondellBasell's Acetyls business with an integrated chain of manufacturing units producing methanol, acetic acid and vinyl acetate monomer (VAM). VAM is used in household latex paint, adhesives, food packaging, wire and cable coatings and automotive safety glass.
HDPE is one of the most versatile plastics because it is lightweight, yet very strong; impact resistant; weather resistant; it can be molded into almost any shape and is widely recyclable.
HDPE resins produced using LyondellBasell's new proprietary Hyperzone PE technology will exhibit enhanced properties such as an improved stress crack resistance and an improved balance between stiffness and impact strength. In certain applications, Hyperzone PE resins may allow customers to use less PE resin per unit produced, resulting in improved resource efficiency and savings for customers. This technology was developed at LyondellBasell's European research and development centers located in Frankfurt, Germany, and Ferrara, Italy.
LyondellBasell currently produces a total of 7.8 billion pounds (3.5 million metric tons) of HDPE annually, including capacity of its joint venture facilities. The company is a leading worldwide producer of all forms of PE with an annual capacity of 13.2 billion pounds (6 million metric tons). LyondellBasell is a global leader in the development and licensing of polyolefin processes and related catalysts and plans to make the Hyperzone PE technology available for licensing in the future. The company has over 250 polypropylene and polyethylene lines licensed worldwide.
The Hyperzone PE project is part of LyondellBasell's ongoing growth plan. Recently, the company completed work on ethylene expansion projects at the La Porte and Channelview sites in Texas. A third ethylene expansion project is currently underway in Corpus Christi, Texas. Additionally, development of a world scale propylene oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is progressing.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 57 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. More information about LyondellBasell can be found at www.lyb.com.
Hyperzone is a trademark owned by the LyondellBasell Industries group of companies.
Forward-Looking Statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. 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, 2015, 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell
Article Date
9/9/2016LyondellBasell to Address Credit Suisse Basic Materials Conference
Source: PR Newswire
HOUSTON and NEW YORK, Aug. 31, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Thomas Aebischer, executive vice president and chief financial officer, will address investors at the Credit Suisse Basic Materials Conference on September 14, 2016, at 12:00 p.m. EDT. The conference will take place at the Credit Suisse Conference Center in New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
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SOURCE LyondellBasell
Article Date
8/31/2016LyondellBasell to Address RBC Capital Markets' Industrial Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, Aug. 29, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Doug Pike, vice president of Investor Relations, will address investors at the RBC Capital Markets' Industrial Conference on September 8, 2016, at 12:50 p.m. PDT (3:50 p.m. EDT). The conference will take place at the Mandarin Oriental Hotel in Las Vegas.
Audio Webcast Access
A live audio webcast can be accessed at the time of the presentation at https://lyb.com/investorevents. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
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SOURCE LyondellBasell
Article Date
8/29/2016LyondellBasell to Build High Density Polyethylene Plant on U.S. Gulf Coast
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, July 29, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, has made the final investment decision to build a High Density Polyethylene (HDPE) Plant on the U.S. Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The project is expected to create up to 1,000 jobs at the peak of construction and as many as 75 permanent positions. Start-up is planned for 2019.
"Innovation is key to our future success. This new proprietary technology will have the capability to produce a wide range of HDPE products with enhanced properties, many of which have the potential to exceed industry benchmarks," said Bob Patel, LyondellBasell's CEO.
HDPE is used in numerous applications such as pipe, bottles, containers, toys, film, healthcare articles, plastic fuel tanks and industrial packaging. LyondellBasell's Hyperzone PE enhanced properties include improved stress crack resistance and enhanced balance between stiffness and impact strength.
The Hyperzone PE technology is a cascade gas phase process based on LyondellBasell's unique Multizone circulating reactor technology and was developed at LyondellBasell's European research and development centers located in Frankfurt, Germany, and Ferrara, Italy. The new proprietary technology will have the capability to produce a wide range of high-performance multi-modal HDPE products. In certain applications, Hyperzone PE resins allow customers to use less PE resin per unit produced, resulting in improved resource efficiency and savings for customers. While the Hyperzone PE plant will be located on the U.S. Gulf Coast, the products produced will serve markets across the globe.
"We are continuing to invest in growth-oriented projects like Hyperzone PE, where we see long term feedstock advantage," Patel added. "We believe that the combination of our latest polyolefins technology and new ethylene capacity from low cost debottlenecks will provide a good return on investment. Additionally, this project enhances our ethylene integration strategy, allowing us to capture value across the ethylene value chain."
LyondellBasell currently produces a total of 7.8 billion pounds (3.5 million metric tons) of HDPE annually, including capacity of its joint venture facilities. The company is a leading worldwide producer of all forms of PE with an annual capacity of 13.2 billion pounds (6 million metric tons). Consumer products made from PE are commonly recycled.
LyondellBasell is a global leader in the development and licensing of polyolefin processes and related catalysts and plans to make the Hyperzone PE technology available for licensing in the future. The company has over 250 polypropylene and polyethylene lines licensed worldwide.
The Hyperzone PE project is part of LyondellBasell's ongoing growth plan. Recently, the company completed work on ethylene expansion projects at the company's La Porte and Channelview sites in Texas. A third ethylene expansion project is currently underway in Corpus Christi, Texas. Additionally, development of a world scale propylene oxide and tertiary butyl alcohol (PO/TBA) plant at the company's Channelview site is progressing.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 57 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. More information about LyondellBasell can be found at www.lyb.com.
Hyperzone is a trademark owned by the LyondellBasell Industries group of companies.
Forward-Looking Statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. Actual results could differ materially based on factors including, but not limited to, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell or where operations of the company are located. 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, 2015, 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. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell
Article Date
7/29/2016LyondellBasell Reports Second-Quarter 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, July 29, 2016 /PRNewswire/ --
Second Quarter 2016 Highlights
Comparisons with the prior quarter and second quarter 2015 are available in the following table:
|
Table 1 - Earnings Summary |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
Millions of U.S. dollars (except share data) |
2016 |
2016 |
2015 |
2016 |
2015 |
||
|
Sales and other operating revenues |
$7,328 |
$6,743 |
$9,145 |
$14,071 |
$17,330 |
||
|
Net income(a) |
1,091 |
1,030 |
1,329 |
2,121 |
2,493 |
||
|
Income from continuing operations(b) |
1,092 |
1,030 |
1,326 |
2,122 |
2,493 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Net income(c) |
2.56 |
2.37 |
2.82 |
4.93 |
5.22 |
||
|
Income from continuing operations(b) |
2.56 |
2.37 |
2.81 |
4.93 |
5.22 |
||
|
Diluted share count (millions) |
425 |
434 |
472 |
429 |
477 |
||
|
EBITDA(d) |
1,783 |
1,807 |
2,186 |
3,590 |
4,138 |
||
|
Excluding LCM Impact: |
|||||||
|
LCM charges (benefits), pre-tax |
(68) |
68 |
(9) |
- - |
83 |
||
|
Income from continuing operations(b) |
1,045 |
1,077 |
1,320 |
2,122 |
2,545 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Income from continuing operations(b) |
2.45 |
2.48 |
2.79 |
4.93 |
5.33 |
||
|
EBITDA(d) |
1,715 |
1,875 |
2,177 |
3,590 |
4,221 |
||
|
(a) |
Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10. | |||||||||
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. | |||||||||
|
(c) |
Includes diluted earnings (loss) 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." | |||||||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2016 of $1.1 billion, or $2.56 per share. Second quarter 2016 EBITDA was $1.8 billion. The quarter included a $68 million non-cash, pre-tax benefit for the impact of a lower of cost or market (LCM) inventory adjustment ($47 million after-tax benefit). Excluding the LCM adjustment, earnings from continuing operations during the second quarter totaled $1.0 billion, or $2.45 per share and EBITDA was $1.7 billion.
"Excluding the first quarter gain from the Petroken business sale and the impact of maintenance activities, overall second quarter results were similar to the first quarter. Balance across our business portfolio enabled us to generate earnings in excess of $1 billion and earnings per share of $2.56. Industry trends generally developed as we anticipated resulting in continued strong polyolefin performance and seasonally stronger fuel margins. However, due to an April upset at our refinery, the benefits of higher fuel margins were only seen in our Oxyfuels business," said Bob Patel, LyondellBasell's CEO.
OUTLOOK
"During the third quarter, chemical and polyolefin markets thus far have generally been well balanced with trends similar to the second quarter. However, refining and oxyfuel margins have declined. Within our system, refinery repairs have been completed, and the Corpus Christi ethylene plant expansion is expected to be completed by the end of the third quarter. During the second half of the year our plant maintenance schedule continues to be significant with turnarounds at additional O&P and I&D facilities. Although our inventory and scheduling efforts will only partially mitigate the production impact during this heavy planned maintenance period, we look forward to the continuing returns from these investments in long-term reliability," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins & Polyolefins – Americas; 2) Olefins & Polyolefins – Europe, Asia and International (EAI); 3) Intermediates & Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & 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 |
Six Months Ended |
||||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 |
||
|
Operating income |
$646 |
$707 |
$920 |
$1,353 |
$1,854 |
||
|
EBITDA |
754 |
878 |
1,014 |
1,632 |
2,045 |
||
|
LCM charges (benefits), pre-tax |
- - |
- - |
(21) |
- - |
22 |
||
|
EBITDA excluding LCM adjustments |
754 |
878 |
993 |
1,632 |
2,067 |
||
Three months ended June 30, 2016 versus three months ended March 31, 2016 – EBITDA decreased $124 million for the second quarter 2016 versus the first quarter 2016. First quarter 2016 results included a $57 million gain on the sale of the Petroken polypropylene business. Results declined by $67 million exclusive of the Petroken gain. Compared to the prior period, underlying olefin results were relatively unchanged as margins increased while customer and internal derivative maintenance resulted in reduced ethylene volumes. Combined polyolefin results continued to be strong despite declining by approximately $60 million. Polyethylene sales volumes declined by 8% due to plant maintenance. Polyethylene spreads increased by approximately 1 cent per pound. Polypropylene spreads declined by approximately 2 cents per pound and volumes were down 5% primarily due to the first quarter sale of Petroken. Joint venture equity income declined by $2 million.
Three months ended June 30, 2016 versus three months ended June 30, 2015 – EBITDA decreased $239 million versus the second quarter 2015, excluding an unfavorable $21 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefin results drove the decline as quarterly EBITDA decreased approximately $280 million versus the prior year primarily due to lower ethylene margin. Combined polyolefin results increased approximately $30 million versus the prior year period. Polyethylene results declined due to maintenance while margins were relatively unchanged. Polypropylene benefitted from a spread improvement of approximately 10 cents per pound and volumes were lower in 2016 due to the first quarter Petroken sale. Joint venture equity income improved by $12 million consistent with strong polypropylene margins.
Olefins & 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 3 - O&P–EAI Financial Overview |
|||||||
|
Millions of U.S. dollars |
Three Months Ended |
Six Months Ended |
|||||
|
June 30, |
March 31, |
June 30, |
June 30, |
||||
|
2016 |
2016 |
2015 |
2015 |
2016 |
|||
|
Operating income |
$423 |
$358 |
$359 |
$781 |
$595 |
||
|
EBITDA |
576 |
509 |
492 |
1,085 |
849 |
||
|
LCM charges (benefits), pretax |
(40) |
40 |
- - |
- - |
- - |
||
|
EBITDA excluding LCM adjustments |
536 |
549 |
492 |
1,085 |
849 |
||
Three months ended June 30, 2016 versus three months ended March 31, 2016 – EBITDA decreased by $13 million versus the first quarter 2016, excluding a favorable $80 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results included a $21 million gain on the sale of the Petroken polypropylene compounding business. Exclusive of the Petroken sale, results were relatively unchanged. Olefin results decreased approximately $30 million on relatively unchanged volumes. Combined polyolefin results were steady. Polypropylene compounds and polybutene-1 results increased by approximately $10MM. Equity income from joint ventures increased by $27 million consistent with strong polypropylene margins.
Three months ended June 30, 2016 versus three months ended June 30, 2015 – EBITDA increased by $44 million versus the second quarter 2015, excluding a favorable $40 million quarter to quarter variance as a result of LCM inventory adjustments. Olefin results declined by approximately $60 million due to a 2 cent per pound decrease in margin combined with reduced volumes related to planned maintenance at our Berre, France facility. Combined polyolefin results increased approximately $65 million as spreads for polyethylene improved by approximately 1 cent per pound while polypropylene spreads improved by approximately 4 cents per pound. Combined polyolefin volumes increased by approximately 4%. Polypropylene compounds and polybutene-1 results improved by approximately $10 million. Equity income from joint ventures increased by $17 million.
Intermediates & 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), ethylene oxide and its derivatives, and oxyfuels.
|
Table 4 - I&D Financial Overview |
||||||
|
Three Months Ended |
Six Months Ended |
|||||
|
June 30, |
March 31, |
June 30, |
June 30, |
|||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 |
|
|
Operating income |
$327 |
$255 |
$405 |
$582 |
$676 |
|
|
EBITDA |
397 |
326 |
466 |
723 |
803 |
|
|
LCM charges (benefits), pre-tax |
(28) |
28 |
17 |
- - |
61 |
|
|
EBITDA excluding LCM adjustments |
369 |
354 |
483 |
723 |
864 |
|
Three months ended June 30, 2016 versus three months ended March 31, 2016 – EBITDA increased $15 million versus the first quarter 2016, excluding a favorable $56 million quarter to quarter variance as a result of LCM adjustments related to inventory. Results for PO and PO derivatives declined by approximately $20 million partially due to product sales mix. Intermediate chemicals results improved by approximately $10 million, primarily due to an approximately 4 cents per pound improvement in styrene margin. This increase was partially offset by lower methanol margins. Oxyfuels improved approximately $30 million consistent with seasonal margin improvements. Equity income from joint ventures was relatively unchanged.
Three months ended June 30, 2016 versus three months ended June 30, 2015 – EBITDA decreased $114 million versus the second quarter 2015, excluding a favorable $45 million quarter to quarter variance as a result of LCM inventory adjustments. Results for PO and PO derivatives were relatively unchanged. Intermediate chemicals results declined by approximately $45 million primarily due to reduced methanol margins and lower EO/EG results partially offset by higher styrene sales volumes. Oxyfuels results decreased approximately $55 million relative to a very strong second quarter 2015. Equity income from joint ventures decreased by $2 million.
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 |
Six Months Ended |
|||||
|
June 30, |
March 31, |
June 30, |
June 30, |
|||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 |
|
|
Operating income (loss) |
($53) |
($30) |
$119 |
($83) |
$193 |
|
|
EBITDA |
(13) |
14 |
159 |
1 |
308 |
|
|
LCM charges (benefits), pre-tax |
- - |
- - |
(5) |
- - |
- - |
|
|
EBITDA excluding LCM adjustments |
(13) |
14 |
154 |
1 |
308 |
|
Three months ended June 30, 2016 versus three months ended March 31, 2016 – EBITDA decreased $27 million versus the first quarter 2016. The Houston refinery operated at 183,000 barrels per day primarily due to the refinery fire. The Maya 2-1-1 industry benchmark crack spread increased by $3.21 per barrel, averaging $21.07 per barrel. Despite the improved industry crack spreads, spreads at the Houston Refinery did not improve due to operational limitations.
Three months ended June 30, 2016 versus three months ended June 30, 2015 – EBITDA decreased $167 million versus the second quarter 2015, excluding an unfavorable $5 million quarter to quarter variance as a result of LCM inventory adjustments. Second quarter 2016 throughput was down by 72,000 barrels per day from the prior year period due to the refinery fire and subsequent downtime for repairs. The Maya 2-1-1 industry benchmark crack spread decreased by $2.91 per barrel.
Technology Segment – 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 |
Six Months Ended |
|||||
|
June 30, |
March 31, |
June 30, |
June 30, |
|||
|
Millions of U.S. dollars |
2016 |
2016 |
2015 |
2016 |
2015 |
|
|
Operating income |
$62 |
$73 |
$45 |
$135 |
$109 |
|
|
EBITDA |
73 |
83 |
57 |
156 |
133 |
|
Three months ended June 30, 2016 versus three months ended March 31, 2016 – EBITDA decreased by $10 million due to lower licensing revenue.
Three months ended June 30, 2016 versus three months ended June 30, 2015 – EBITDA increased by $16 million due to improved catalyst and licensing results.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $563 million during the second quarter 2016. Our cash and liquid investment balance was $2.5 billion at June 30, 2016. We repurchased 8.8 million ordinary shares during the second quarter 2016. There were 419 million common shares outstanding as of June 30, 2016. The company paid dividends of $362 million during the second quarter of 2016.
CONFERENCE CALL
LyondellBasell will host a conference call July 29 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer 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 6934553.
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. EDT July 29 until August 29 at 12:59 a.m. EDT. The replay dial-in numbers are 866-453-2318 (U.S.) and +1 203-369-1226 (international). The pass code for each is 72916.
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 57 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; 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, 2015, 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 related to our use of LIFO accounting and the recent decline 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) | |||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||||
|
Sales and other operating revenues: |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,551 |
$ |
2,679 |
$ |
2,516 |
$ |
2,218 |
$ |
9,964 |
$ |
2,115 |
$ |
2,211 |
$ |
4,326 | |||||||||||
|
Olefins & Polyolefins - EAI |
2,911 |
3,061 |
2,932 |
2,672 |
11,576 |
2,578 |
2,721 |
5,299 | |||||||||||||||||||
|
Intermediates & Derivatives |
1,918 |
2,159 |
2,039 |
1,656 |
7,772 |
1,702 |
1,769 |
3,471 | |||||||||||||||||||
|
Refining |
1,607 |
2,102 |
1,693 |
1,155 |
6,557 |
955 |
1,289 |
2,244 | |||||||||||||||||||
|
Technology |
136 |
107 |
100 |
122 |
465 |
132 |
129 |
261 | |||||||||||||||||||
|
Other/elims |
(938) |
(963) |
(946) |
(752) |
(3,599) |
(739) |
(791) |
(1,530) | |||||||||||||||||||
|
Continuing Operations |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 |
$ |
7,328 |
$ |
14,071 | |||||||||||
|
Operating income (loss): |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
934 |
$ |
920 |
$ |
740 |
$ |
662 |
$ |
3,256 |
$ |
707 |
$ |
646 |
$ |
1,353 | |||||||||||
|
Olefins & Polyolefins - EAI |
236 |
359 |
412 |
302 |
1,309 |
358 |
423 |
781 | |||||||||||||||||||
|
Intermediates & Derivatives |
271 |
405 |
403 |
145 |
1,224 |
255 |
327 |
582 | |||||||||||||||||||
|
Refining |
74 |
119 |
52 |
(101) |
144 |
(30) |
(53) |
(83) | |||||||||||||||||||
|
Technology |
64 |
45 |
34 |
54 |
197 |
73 |
62 |
135 | |||||||||||||||||||
|
Other |
(4) |
(3) |
9 |
(10) |
(8) |
(3) |
(2) |
(5) | |||||||||||||||||||
|
Continuing Operations |
$ |
1,575 |
$ |
1,845 |
$ |
1,650 |
$ |
1,052 |
$ |
6,122 |
$ |
1,360 |
$ |
1,403 |
$ |
2,763 | |||||||||||
|
Depreciation and amortization: |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
86 |
$ |
85 |
$ |
87 |
$ |
95 |
$ |
353 |
$ |
90 |
$ |
88 |
$ |
178 | |||||||||||
|
Olefins & Polyolefins - EAI |
55 |
54 |
54 |
56 |
219 |
55 |
58 |
113 | |||||||||||||||||||
|
Intermediates & Derivatives |
60 |
56 |
55 |
62 |
233 |
70 |
69 |
139 | |||||||||||||||||||
|
Refining |
74 |
40 |
41 |
41 |
196 |
43 |
40 |
83 | |||||||||||||||||||
|
Technology |
12 |
12 |
11 |
11 |
46 |
10 |
11 |
21 | |||||||||||||||||||
|
Continuing Operations |
$ |
287 |
$ |
247 |
$ |
248 |
$ |
265 |
$ |
1,047 |
$ |
268 |
$ |
266 |
$ |
534 | |||||||||||
|
EBITDA: (b) |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
1,031 |
$ |
1,014 |
$ |
841 |
$ |
775 |
$ |
3,661 |
$ |
878 |
$ |
754 |
$ |
1,632 | |||||||||||
|
Olefins & Polyolefins - EAI |
357 |
492 |
549 |
427 |
1,825 |
509 |
576 |
1,085 | |||||||||||||||||||
|
Intermediates & Derivatives |
337 |
466 |
460 |
212 |
1,475 |
326 |
397 |
723 | |||||||||||||||||||
|
Refining |
149 |
159 |
93 |
(59) |
342 |
14 |
(13) |
1 | |||||||||||||||||||
|
Technology |
76 |
57 |
45 |
65 |
243 |
83 |
73 |
156 | |||||||||||||||||||
|
Other |
2 |
(2) |
13 |
(26) |
(13) |
(3) |
(4) |
(7) | |||||||||||||||||||
|
Continuing Operations |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 |
$ |
1,783 |
$ |
3,590 | |||||||||||
|
Capital, turnarounds and IT deferred spending: |
|||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
149 |
$ |
140 |
$ |
159 |
$ |
220 |
$ |
668 |
$ |
303 |
$ |
339 |
$ |
642 | |||||||||||
|
Olefins & Polyolefins - EAI |
38 |
27 |
49 |
72 |
186 |
81 |
60 |
141 | |||||||||||||||||||
|
Intermediates & Derivatives |
76 |
76 |
135 |
154 |
441 |
76 |
80 |
156 | |||||||||||||||||||
|
Refining |
33 |
28 |
23 |
24 |
108 |
57 |
71 |
128 | |||||||||||||||||||
|
Technology |
6 |
3 |
7 |
8 |
24 |
6 |
9 |
15 | |||||||||||||||||||
|
Other |
4 |
4 |
- - |
5 |
13 |
4 |
4 |
8 | |||||||||||||||||||
|
Continuing Operations |
$ |
306 |
$ |
278 |
$ |
373 |
$ |
483 |
$ |
1,440 |
$ |
527 |
$ |
563 |
$ |
1,090 | |||||||||||
|
(a) |
EBITDA as presented herein includes the impacts of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. EBITDA for the first quarter of 2016 includes a pre-tax LCM adjustment of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. See Tables 2 through 6 for LCM adjustments recorded for each segment. |
|
(b) |
See Table 8 for EBITDA calculation. |
|
Table 8 - EBITDA Calculation | |||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||||
|
Net income(a) |
$ |
1,164 |
$ |
1,329 |
$ |
1,186 |
$ |
795 |
$ |
4,474 |
$ |
1,030 |
$ |
1,091 |
$ |
2,121 | |||||||||||
|
(Income) loss from discontinued operations, net of tax |
3 |
(3) |
3 |
2 |
5 |
- - |
1 |
1 | |||||||||||||||||||
|
Income from continuing operations(a) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 |
1,092 |
2,122 | |||||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 |
346 |
778 | |||||||||||||||||||
|
Depreciation and amortization |
287 |
247 |
248 |
265 |
1,047 |
268 |
266 |
534 | |||||||||||||||||||
|
Interest expense, net |
58 |
72 |
77 |
70 |
277 |
77 |
79 |
156 | |||||||||||||||||||
|
EBITDA(b) |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 |
$ |
1,783 |
$ |
3,590 | |||||||||||
|
(a) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
|
(b) |
EBITDA as presented herein includes the impact of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. |
|
Table 9 - Selected Segment Operating Information | ||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||
|
Ethylene produced |
2,364 |
2,415 |
2,514 |
2,391 |
9,684 |
2,392 |
1,899 |
4,291 | ||||||||||||
|
Propylene produced |
805 |
740 |
697 |
798 |
3,040 |
832 |
748 |
1,580 | ||||||||||||
|
Polyethylene sold |
1,473 |
1,575 |
1,577 |
1,578 |
6,203 |
1,554 |
1,426 |
2,980 | ||||||||||||
|
Polypropylene sold |
627 |
698 |
662 |
606 |
2,593 |
612 |
582 |
1,194 | ||||||||||||
|
Benchmark Market Prices |
||||||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
48.57 |
57.95 |
45.36 |
42.16 |
48.71 |
33.63 |
46.01 |
39.97 | ||||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
52.84 |
62.93 |
50.20 |
43.53 |
52.36 |
35.34 |
47.39 |
41.51 | ||||||||||||
|
Natural gas (USD per million BTUs) |
2.76 |
2.76 |
2.72 |
2.11 |
2.57 |
1.93 |
2.06 |
1.99 | ||||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
10.2 |
9.7 |
9.6 |
10.9 |
10.1 |
9.8 |
12.0 |
10.9 | ||||||||||||
|
U.S. ethylene (cents/pound) |
34.8 |
34.2 |
30.3 |
27.5 |
31.7 |
26.7 |
30.3 |
28.5 | ||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
65.7 |
67.3 |
64.3 |
57.0 |
63.6 |
52.3 |
59.0 |
55.7 | ||||||||||||
|
U.S. propylene (cents/pound) |
49.7 |
41.7 |
33.2 |
31.3 |
39.0 |
31.0 |
32.7 |
31.8 | ||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.7 |
61.7 |
59.3 |
62.7 |
62.8 |
67.8 |
61.7 |
64.8 | ||||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||
|
Ethylene produced |
1,007 |
1,047 |
944 |
978 |
3,976 |
950 |
941 |
1,891 | ||||||||||||
|
Propylene produced |
600 |
632 |
575 |
575 |
2,382 |
555 |
577 |
1,132 | ||||||||||||
|
Polyethylene sold |
1,533 |
1,360 |
1,304 |
1,379 |
5,576 |
1,434 |
1,386 |
2,820 | ||||||||||||
|
Polypropylene sold |
1,817 |
1,529 |
1,673 |
1,757 |
6,776 |
1,773 |
1,617 |
3,390 | ||||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
22.9 |
23.2 |
14.4 |
22.5 |
20.8 |
16.3 |
21.2 |
18.8 | ||||||||||||
|
Western Europe ethylene |
39.3 |
47.1 |
46.6 |
41.4 |
43.6 |
38.4 |
41.1 |
39.7 | ||||||||||||
|
Western Europe polyethylene [high density] |
45.2 |
60.6 |
61.2 |
56.9 |
56.0 |
55.4 |
57.6 |
56.5 | ||||||||||||
|
Western Europe propylene |
37.1 |
44.4 |
41.7 |
31.0 |
38.5 |
26.3 |
28.8 |
27.6 | ||||||||||||
|
Western Europe polypropylene [homopolymer] |
49.8 |
62.5 |
59.3 |
47.4 |
54.7 |
46.5 |
49.5 |
48.0 | ||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||
|
Propylene oxide and derivatives |
870 |
751 |
697 |
682 |
3,000 |
793 |
743 |
1,536 | ||||||||||||
|
Ethylene oxide and derivatives |
268 |
312 |
282 |
237 |
1,099 |
301 |
233 |
534 | ||||||||||||
|
Styrene monomer |
903 |
735 |
904 |
889 |
3,431 |
917 |
933 |
1,850 | ||||||||||||
|
Acetyls |
547 |
810 |
733 |
623 |
2,713 |
702 |
821 |
1,523 | ||||||||||||
|
TBA Intermediates |
433 |
321 |
421 |
371 |
1,546 |
415 |
391 |
806 | ||||||||||||
|
Volumes (million gallons) |
||||||||||||||||||||
|
MTBE/ETBE |
229 |
299 |
268 |
258 |
1,054 |
270 |
278 |
548 | ||||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||
|
MTBE - Northwest Europe |
64.0 |
106.0 |
119.0 |
49.8 |
85.1 |
44.4 |
78.7 |
61.7 | ||||||||||||
|
Refining |
||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||
|
Heavy crude oil processing rate |
241 |
255 |
249 |
206 |
238 |
186 |
183 |
184 | ||||||||||||
|
Benchmark Market Margins |
||||||||||||||||||||
|
Light crude oil - 2-1-1 |
15.02 |
16.42 |
15.29 |
9.44 |
14.04 |
8.67 |
11.52 |
10.13 | ||||||||||||
|
Light crude oil - Maya differential |
8.72 |
7.56 |
7.48 |
9.11 |
8.26 |
9.19 |
9.55 |
9.37 | ||||||||||||
|
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 | |||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||||
|
Sales and other operating revenues |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 |
$ |
7,328 |
$ |
14,071 | |||||||||||
|
Cost of sales(a) |
6,379 |
7,047 |
6,465 |
5,792 |
25,683 |
5,166 |
5,702 |
10,868 | |||||||||||||||||||
|
Selling, general and administrative expenses |
205 |
228 |
194 |
201 |
828 |
193 |
199 |
392 | |||||||||||||||||||
|
Research and development expenses |
26 |
25 |
25 |
26 |
102 |
24 |
24 |
48 | |||||||||||||||||||
|
Operating income(a) |
1,575 |
1,845 |
1,650 |
1,052 |
6,122 |
1,360 |
1,403 |
2,763 | |||||||||||||||||||
|
Income from equity investments |
69 |
90 |
93 |
87 |
339 |
91 |
117 |
208 | |||||||||||||||||||
|
Interest expense, net |
(58) |
(72) |
(77) |
(70) |
(277) |
(77) |
(79) |
(156) | |||||||||||||||||||
|
Other income (expense), net(b) |
21 |
4 |
10 |
(10) |
25 |
88 |
(3) |
85 | |||||||||||||||||||
|
Income from continuing operations before income taxes(a) (b) |
1,607 |
1,867 |
1,676 |
1,059 |
6,209 |
1,462 |
1,438 |
2,900 | |||||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 |
346 |
778 | |||||||||||||||||||
|
Income from continuing operations(c) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 |
1,092 |
2,122 | |||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
(3) |
3 |
(3) |
(2) |
(5) |
- - |
(1) |
(1) | |||||||||||||||||||
|
Net income(c) |
1,164 |
1,329 |
1,186 |
795 |
4,474 |
1,030 |
1,091 |
2,121 | |||||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
2 |
1 |
(1) |
- - |
2 |
- - |
- - |
- - | |||||||||||||||||||
|
Net income attributable to the Company shareholders(c) |
$ |
1,166 |
$ |
1,330 |
$ |
1,185 |
$ |
795 |
$ |
4,476 |
$ |
1,030 |
$ |
1,091 |
$ |
2,121 | |||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the partial reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. |
|
(b) |
Includes a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary in the second quarter of 2016. |
|
(c) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and an after-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes an after tax LCM benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment. |
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations |
|||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||
|
Pretax charges (benefits): |
|||||||||||||||||||||||||
|
Gain on sale of wholly owned subsidiary |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
(78) |
- - |
(78) | |||||||||||
|
Lower of cost or market inventory adjustment |
92 |
(9) |
181 |
284 |
548 |
68 |
$ |
(68) |
$ |
- - | |||||||||||||||
|
Emission allowance credits, amortization |
35 |
- - |
- - |
- - |
35 |
- - |
- - |
- - | |||||||||||||||||
|
Total pretax charges (benefits) |
127 |
(9) |
181 |
284 |
583 |
(10) |
(68) |
(78) | |||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
(47) |
3 |
(67) |
(99) |
(210) |
(21) |
21 |
- - | |||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
80 |
$ |
(6) |
$ |
114 |
$ |
185 |
$ |
373 |
$ |
(31) |
$ |
(47) |
$ |
(78) | |||||||||
|
Effect on diluted earnings per share |
$ |
(0.17) |
$ |
0.02 |
$ |
(0.25) |
$ |
(0.42) |
$ |
(0.80) |
$ |
0.07 |
$ |
0.11 |
$ |
0.18 | |||||||||
|
Table 12 - Unaudited Cash Flow Information | |||||||||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
YTD | |||||||||||||||||||
|
Net cash provided by operating activities |
$ |
1,468 |
$ |
1,446 |
$ |
1,768 |
$ |
1,160 |
$ |
5,842 |
$ |
1,300 |
$ |
1,261 |
$ |
2,561 | |||||||||||
|
Net cash provided by (used in) investing activities |
(443) |
(727) |
67 |
52 |
(1,051) |
(597) |
(471) |
(1,068) | |||||||||||||||||||
|
Net cash used in financing activities |
(401) |
(1,021) |
(1,684) |
(1,744) |
(4,850) |
(333) |
(1,039) |
(1,372) | |||||||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information | |||||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
June 30, | ||||||||||||||||||
|
(Millions of U.S. dollars) |
2015 |
2015 |
2015 |
2015 |
2016 |
2016 | |||||||||||||||||
|
Cash and cash equivalents |
$ |
1,616 |
$ |
1,325 |
$ |
1,474 |
$ |
924 |
$ |
1,318 |
$ |
1,060 | |||||||||||
|
Restricted cash |
2 |
3 |
1 |
7 |
4 |
4 | |||||||||||||||||
|
Short-term investments |
1,478 |
1,989 |
1,602 |
1,064 |
1,332 |
1,023 | |||||||||||||||||
|
Accounts receivable, net |
3,089 |
3,373 |
2,924 |
2,517 |
2,683 |
2,806 | |||||||||||||||||
|
Inventories |
4,267 |
4,179 |
4,138 |
4,051 |
3,978 |
4,009 | |||||||||||||||||
|
Prepaid expenses and other current assets(a) |
1,195 |
1,121 |
1,059 |
1,226 |
1,009 |
1,081 | |||||||||||||||||
|
Total current assets |
11,647 |
11,990 |
11,198 |
9,789 |
10,324 |
9,983 | |||||||||||||||||
|
Property, plant and equipment, net |
8,430 |
8,636 |
8,793 |
8,991 |
9,373 |
9,681 | |||||||||||||||||
|
Investments and long-term receivables: |
|||||||||||||||||||||||
|
Investment in PO joint ventures |
373 |
357 |
357 |
397 |
398 |
390 | |||||||||||||||||
|
Equity investments |
1,581 |
1,612 |
1,602 |
1,608 |
1,734 |
1,610 | |||||||||||||||||
|
Other investments and long-term receivables |
38 |
126 |
125 |
122 |
18 |
18 | |||||||||||||||||
|
Goodwill |
533 |
543 |
543 |
536 |
548 |
542 | |||||||||||||||||
|
Intangible assets, net |
695 |
671 |
644 |
640 |
618 |
588 | |||||||||||||||||
|
Other assets(a) |
637 |
600 |
605 |
674 |
559 |
623 | |||||||||||||||||
|
Total assets |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 |
$ |
23,435 | |||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
3 |
$ |
3 |
$ |
4 |
$ |
4 |
$ |
4 | |||||||||||
|
Short-term debt |
514 |
582 |
573 |
353 |
594 |
616 | |||||||||||||||||
|
Accounts payable |
2,631 |
2,755 |
2,450 |
2,182 |
2,243 |
2,357 | |||||||||||||||||
|
Accrued liabilities |
1,482 |
1,455 |
1,784 |
1,810 |
1,600 |
1,374 | |||||||||||||||||
|
Deferred income taxes(a) |
429 |
434 |
383 |
- - |
- - |
- - | |||||||||||||||||
|
Total current liabilities |
5,060 |
5,229 |
5,193 |
4,349 |
4,441 |
4,351 | |||||||||||||||||
|
Long-term debt |
7,677 |
7,658 |
7,674 |
7,671 |
8,504 |
8,485 | |||||||||||||||||
|
Other liabilities |
2,038 |
2,063 |
2,044 |
2,036 |
2,125 |
2,143 | |||||||||||||||||
|
Deferred income taxes(a) |
1,653 |
1,635 |
1,604 |
2,127 |
2,134 |
2,149 | |||||||||||||||||
|
Stockholders' equity |
7,478 |
7,927 |
7,328 |
6,550 |
6,344 |
6,283 | |||||||||||||||||
|
Non-controlling interests |
28 |
23 |
24 |
24 |
24 |
24 | |||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 |
$ |
23,435 | |||||||||||
|
(a) |
Our prospective adoption of ASU 2015-17,Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, in December 2015 resulted in the classification of our deferred taxes as of December 2015 as noncurrent. | ||||||||||||||||||||||
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SOURCE LyondellBasell
Article Date
7/29/2016LyondellBasell to Address Jefferies Industrials Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, July 27, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Dan Coombs, executive vice president of Global Olefins & Polyolefins and Technology, will address investors at the Jefferies Industrials Conference on August 10, 2016, at 3:20 p.m. EDT. The conference will take place at The Grand Hyatt New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
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SOURCE LyondellBasell
Article Date
7/27/20167/22/2016 - LyondellBasell Board Authorizes Interim Dividend
LyondellBasell Board Authorizes Interim Dividend
Source: PR Newswire
HOUSTON and LONDON, July 22, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare an interim dividend of $0.85 per share. The interim dividend will be paid September 6, 2016 to shareholders of record August 16, 2016 with an ex-dividend date of August 12, 2016.
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 57 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.
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|
Media Contact: |
Faye Justice Eson |
+1 713-309-7575 |
|
Investor Contact: |
Douglas J. Pike |
+1 713-309-7141 |
SOURCE LyondellBasell
Article Date
7/22/2016LyondellBasell to Discuss Second-Quarter Results on Friday, July 29, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, July 15, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce second-quarter financial results before the U.S. market opens on Friday, July 29, to be followed by a webcast and teleconference to discuss results at 11 a.m. EDT.
Teleconference and Webcast Details:
Friday, July 29, 2016
11 a.m. EDT
Hosted by Doug Pike, Vice President, Investor Relations
Access the webcast 10 to 15 minutes prior to the call at www.lyb.com/earnings
Toll-Free Teleconference Dial-In Numbers:
United States: 888-677-1826
United Kingdom: 0800-279-9630
Netherlands: 0800-343-4364
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EDT July 29 until August 29 at 12:59 a.m. EDT.
The replay dial-in numbers are:
Toll Free: 866-453-2318
Toll: 203-369-1226
Passcode: 72916
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 57 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.
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SOURCE LyondellBasell
Article Date
7/15/2016LyondellBasell to Address Deutsche Bank Global Industrials and Materials Summit
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, May 31, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Doug Pike, vice president of Investor Relations, will address investors at the Deutsche Bank Global Industrials and Materials Summit on June 9, 2016, at 11:20 a.m. CDT. The conference will take place at The Westin River North in Chicago.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
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SOURCE LyondellBasell
Article Date
5/31/2016LyondellBasell to Address the Bernstein 32nd Annual Strategic Decisions Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, May 17, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Bob Patel, CEO and chairman of the management board, will address investors at the Bernstein 32nd Annual Strategic Decisions Conference on June 3, 2016, at 10:00 a.m. EDT. The conference will take place at The Waldorf Astoria Hotel in New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
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SOURCE LyondellBasell
Article Date
5/17/2016LyondellBasell Announces New Share Repurchase Program and Increased Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, May 13, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare an interim dividend of $0.85 per share, representing a nine percent increase from the company's first quarter 2016 dividend. The interim dividend will be paid June 7, 2016 to shareholders of record May 24, 2016, with an ex-dividend date of May 20, 2016.
The company also announced that at its Annual General Meeting on May 11, 2016, shareholders approved a new share repurchase program authorizing the company to repurchase up to 10% of the company's shares over the next 18 months. The repurchases will be executed from time to time through open market or privately negotiated transactions.
"Because of our disciplined approach we have returned more than $21.6 billion to our shareholders through dividend payments and share repurchases over the past five years," said Bob Patel, LyondellBasell CEO and chairman of the management board. "Our increased dividend and new share repurchase program demonstrate our focused commitment to return value to our shareholders."
LyondellBasell is in the top quintile of the Standard & Poor's 500 index for dividend yield.
The amount and timing of future share repurchases and dividends will depend on, and be subject to, market conditions, general economic conditions, applicable legal requirements and other corporate considerations. The share repurchase program and dividend policy may be suspended or discontinued at any time. This share repurchase program does not obligate LyondellBasell to acquire any particular amount of shares. LyondellBasell had approximately 426 million shares outstanding as of May 11, 2016.
This press release contains forward-looking statements. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ from forward-looking statements include, but are not limited to, availability, cost and price volatility of raw materials and utilities; supply/demand balances; industry production capacities and operating rates; uncertainties associated with worldwide economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining industries; operating interruptions; current and potential governmental regulatory actions; terrorist acts; international political unrest; competitive products and pricing; technological developments; the ability to comply with the terms of our credit facilities and other financing arrangements; the ability to implement business strategies; and other factors affecting our business generally as set forth in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2015, 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.
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 57 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.
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SOURCE LyondellBasell
Article Date
5/13/2016LyondellBasell Receives National MS Society Circle of Distinction Award
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 9, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, has been honored with the Circle of Distinction Award from the National MS Society for raising a total of $1.4 million to help people living with multiple sclerosis.
Since 1998, LyondellBasell employees have participated in the BP MS 150, a two-day fundraising bike ride in Texas organized by the National MS Society. The ride is the largest event of its kind in North America with approximately 13,000 cyclists, 3,500 volunteers and countless spectators along the route from Houston to Austin, Texas.
"At LyondellBasell, we believe in the power of many and I am extremely proud of the hundreds of LyondellBasell employees who have participated in this event over the years and helped us reach the milestone of $1.4 million dollars raised," said Jim Guilfoyle, senior vice president of Global Intermediate & Derivatives and Global Supply Chain, and a member of the LyondellBasell cycling team.
"Members of the Society's Circle of Distinction demonstrate their commitment to the Society's mission through their extraordinary financial leadership and generosity," said Mark Neagli, president of South Central Region MS Society. "We are deeply grateful to LyondellBasell and their extraordinary employees who are dedicated to bringing us closer to a world free of multiple sclerosis."
At a special event celebrating the milestone, LyondellBasell presented a framed team jersey to hang in the Hall of Fame at the National MS Society offices in Houston.
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 57 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.
About National MS Society:
The Society mobilizes people and resources so that everyone affected by multiple sclerosis can live their best lives as we stop MS in its tracks, restore what has been lost and end MS forever. Last year, the Society invested $54 million to advance more than 380 research projects around the world. Through its comprehensive nationwide network of services, the Society also invested $122.2 million to help more than one million individuals affected by MS connect to the people, information and resources needed to live their best lives.
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SOURCE LyondellBasell
Article Date
5/9/2016LyondellBasell to Address Goldman Sachs Basic Materials Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, May 2, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Doug Pike, vice president, Investor Relations, will address investors at the Goldman Sachs Basic Materials Conference on May 17, 2016, at 9:45 a.m. EDT. The conference will take place at the Goldman Sachs Conference Center in New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
5/2/2016LyondellBasell to Address Wells Fargo Securities Industrial and Construction Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, April 29, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Doug Pike, vice president, Investor Relations, will address investors at the Wells Fargo Securities Industrial and Construction Conference on May 11, 2016, at 3:15 p.m. EDT. The conference will take place at the New York Palace Hotel in New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at https://lyb.com/investorevents, where copies of the slides related to the webcast will also be available for download. A replay of the presentation will be available on the company's website within 24 hours following the webcast.
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.lyb.com) manufactures products at 57 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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
4/29/2016LyondellBasell Announces Planned Departure of Sergey Vasnetsov
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, April 27, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced the planned departure of Sergey Vasnetsov, senior vice president of Strategic Planning and Transactions. Mr. Vasnetsov will leave the company at the end of May for personal and family reasons.
"I want to thank Sergey for his many significant contributions to our company's success," said Bob Patel, LyondellBasell's CEO and chairman of the management board. "Through his knowledge of our industry, his thought leadership and his boundless energy, Sergey has played a key role in guiding the company to its leading industry position. I wish him all the very best as he enters a well-deserved next chapter."
Mr. Vasnetsov joined LyondellBasell in 2010 as senior vice president of Strategic Planning and Transactions with responsibility for financial and strategic planning, capital investments, and the Investor Relations function.
"It has been a privilege to work with Bob and the many talented individuals leading LyondellBasell into the future," said Mr. Vasnetsov. "Given the company's highly-focused executive team, great people and top-notch plants, I am confident that LyondellBasell will be very successful sustaining its position as the premier global petrochemical leader."
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 57 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.
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SOURCE LyondellBasell
Article Date
4/27/2016LyondellBasell Reports First-Quarter 2016 Earnings
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, April 22, 2016 /PRNewswire/ --
First Quarter 2016 Highlights
Comparisons with the prior quarter and first quarter 2015 are available in the following table:
|
Table 1 - Earnings Summary |
||||||
|
Three Months Ended |
||||||
|
March 31, |
December 31, |
March 31, |
||||
|
Millions of U.S. dollars (except share data) |
2016 |
2015 |
2015 |
|||
|
Sales and other operating revenues |
$6,743 |
$7,071 |
$8,185 |
|||
|
Net income(a) |
1,030 |
795 |
1,164 |
|||
|
Income from continuing operations(b) |
1,030 |
797 |
1,167 |
|||
|
Diluted earnings per share (U.S. dollars): |
||||||
|
Net income(c) |
2.37 |
1.78 |
2.41 |
|||
|
Income from continuing operations(b) |
2.37 |
1.78 |
2.42 |
|||
|
Diluted share count (millions) |
434 |
446 |
481 |
|||
|
EBITDA(d) |
1,807 |
1,394 |
1,952 |
|||
|
Excluding LCM Impact: |
||||||
|
LCM, pre-tax |
68 |
284 |
92 |
|||
|
Income from continuing operations(b) |
1,077 |
982 |
1,225 |
|||
|
Diluted earnings per share (U.S. dollars): |
||||||
|
Income from continuing operations(b) |
2.48 |
2.20 |
2.54 |
|||
|
EBITDA(d) |
1,875 |
1,678 |
2,044 |
|||
|
(a) |
Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10. | |||||||||
|
(b) |
See Table 11 for charges and benefits to income from continuing operations. | |||||||||
|
(c) |
Includes diluted earnings (loss) 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." | |||||||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2016 of $1.0 billion, or $2.37 per share. First quarter 2016 EBITDA was $1.8 billion. The quarter included a $68 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($47 million after-tax). Excluding the LCM adjustment, earnings from continuing operations during the first quarter totaled $1.1 billion, or $2.48 per share and EBITDA was $1.9 billion. In February, the Argentine wholly owned subsidiary Petroken Petroquímica Ensenada S.A. (Petroken) was sold for an after tax gain of $78 million that impacted earnings by $0.18 per share.
"The first quarter of 2016 developed as we anticipated. LyondellBasell's operations were strong and we completed planned maintenance as expected. The value of our global footprint and integrated businesses was evident in the excellent results from the Olefins & Polyolefins, Europe, Asia and International segment and our global polypropylene businesses. Markets for our products were generally tight with prices responding quickly to supply and demand dynamics," said Bob Patel, LyondellBasell chief executive officer.
OUTLOOK
"As we look forward to the remainder of the second quarter, a significant amount of industry capacity will be offline in both the U.S. and Asia for scheduled maintenance. We believe this is tightening global olefin and polyolefin markets. Within our system, we have begun the maintenance turnaround and 800 million pound ethylene expansion at Corpus Christi and expect to ramp up toward full utilization of the expanded capacity during the third quarter. During the second quarter our refinery will operate at reduced rates as we repair damage from an April fire. At the same time, the refining and oxyfuels businesses have started to benefit from seasonal margin improvements," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell manages operations through five operating segments: 1) Olefins & Polyolefins – Americas; 2) Olefins & Polyolefins – Europe, Asia and International (EAI); 3) Intermediates & Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying business activity and are exclusive of LCM inventory adjustments.
Olefins & 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 |
|||||
|
March 31, |
December 31, |
March 31, |
|||
|
Millions of U.S. dollars |
2016 |
2015 |
2015 |
||
|
Operating income |
$707 |
$662 |
$934 |
||
|
EBITDA |
878 |
775 |
1,031 |
||
|
LCM, pre-tax |
- - |
59 |
43 |
||
|
EBITDA excluding LCM |
878 |
834 |
1,074 |
||
Three months ended March 31, 2016 versus three months ended December 31, 2015 – EBITDA increased $44 million for the first quarter 2016 versus the fourth quarter 2015, excluding a favorable $59 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results include a $57 million gain on the sale of the Petroken polypropylene business. Compared to the prior period, underlying olefin results were relatively unchanged. Combined polyolefin results declined by approximately $20 million. Polyethylene spreads declined by approximately 4 cents per pound. Polypropylene spreads improved by approximately 6 cents per pound while volumes were relatively unchanged. Joint venture equity income improved by $7 million.
Three months ended March 31, 2016 versus three months ended March 31, 2015 – EBITDA decreased $196 million versus the first quarter 2015, excluding a favorable $43 million quarter to quarter variance as a result of the LCM inventory adjustments. First quarter 2016 results include the $57 million gain on the sale of Petroken. Olefin results drove the decline as quarterly EBITDA decreased approximately $390 million versus the prior year. Ethylene margins declined by approximately 14 cents per pound and additional costs were incurred for purchases and an inventory build to support our 2016 planned maintenance at Corpus Christi. Combined polyolefin results increased approximately $115 million versus the prior year period. The majority of the improvement was driven by polypropylene spreads improving by approximately 13 cents per pound. Joint venture equity income improved by $15 million.
Olefins & 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 3 - O&P–EAI Financial Overview |
|||||
|
Three Months Ended |
|||||
|
March 31, |
December 31, |
March 31, |
|||
|
Millions of U.S. dollars |
2016 |
2015 |
2015 |
||
|
Operating income |
$358 |
$302 |
$236 |
||
|
EBITDA |
509 |
427 |
357 |
||
|
LCM, pre-tax |
40 |
24 |
- - |
||
|
EBITDA excluding LCM |
549 |
451 |
357 |
||
Three months ended March 31, 2016 versus three months ended December 31, 2015 – EBITDA increased by $98 million versus the fourth quarter 2015, excluding an unfavorable $16 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results include a $21 million gain on the sale of the Petroken polypropylene compounding business. Olefin results increased approximately $65 million due to approximately 4 cents per pound improvement in margins on relatively unchanged volumes. Combined polyolefin results increased by approximately $20 million as spreads for both polyethylene and polypropylene improved. Polypropylene compounds and polybutene-1 results were relatively unchanged. Equity income from joint ventures was relatively unchanged.
Three months ended March 31, 2016 versus three months ended March 31, 2015 – EBITDA increased by $192 million versus the first quarter 2015, excluding an unfavorable $40 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 results include the $21 million gain on the sale of Petroken. Olefin results improved by approximately $55 million with an 8 cent per pound improvement in margin. Combined polyolefin results increased approximately $130 million as spreads for polyethylene improved by approximately 8 cents per pound while polypropylene spreads improved by approximately 7 cents per pound. Combined polyolefin volumes were down approximately 4% primarily due to planned maintenance at our Berre, France facility. Polypropylene compounds and polybutene-1 results declined by approximately $10 million. Equity income from joint ventures increased by $12 million.
Intermediates & 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), ethylene oxide and its derivatives, and oxyfuels.
|
Table 4 - I&D Financial Overview |
||||
|
Three Months Ended |
||||
|
March 31, |
December 31, |
March 31, |
||
|
Millions of U.S. dollars |
2016 |
2015 |
2015 |
|
|
Operating income |
$255 |
$145 |
$271 |
|
|
EBITDA |
326 |
212 |
337 |
|
|
LCM, pre-tax |
28 |
74 |
44 |
|
|
EBITDA excluding LCM |
354 |
286 |
381 |
|
Three months ended March 31, 2016 versus three months ended December 31, 2015 – EBITDA increased $68 million versus the fourth quarter 2015, excluding a favorable $46 million quarter to quarter variance as a result of LCM adjustments related to inventory. Results for PO and PO derivatives were relatively unchanged. Intermediate chemicals results improved by approximately $80 million, primarily due to increased volumes for acetyls, isobutylene derivatives and ethylene oxide and derivatives due to the absence of fourth quarter maintenance and approximately 2 cents per pound margin improvement for styrene. Oxyfuels results were relatively unchanged. Equity income from joint ventures decreased by $4 million.
Three months ended March 31, 2016 versus three months ended March 31, 2015 – EBITDA decreased $27 million versus the first quarter 2015, excluding a favorable $16 million quarter to quarter variance as a result of LCM inventory adjustments. Results for PO and PO derivatives decreased by approximately $10 million due to product mix and a weaker aircraft deicer season. Intermediate chemicals results were relatively unchanged with higher methanol volumes and styrene margin improvements of approximately 2 cents per pound offset by approximately 30 cents per gallon lower methanol margins. Oxyfuels decreased approximately $20 million primarily as a result of compression from the unseasonably high margins seen during the first quarter of 2015. Equity income from joint ventures decreased by $5 million.
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 |
||||
|
March 31, |
December 31, |
March 31, |
||
|
Millions of U.S. dollars |
2016 |
2015 |
2015 |
|
|
Operating income (loss) |
($30) |
($101) |
$74 |
|
|
EBITDA |
14 |
(59) |
149 |
|
|
LCM, pre-tax |
- - |
127 |
5 |
|
|
EBITDA excluding LCM |
14 |
68 |
154 |
|
Three months ended March 31, 2016 versus three months ended December 31, 2015 – EBITDA decreased $54 million versus the fourth quarter 2015, excluding a favorable $127 million quarter to quarter variance as a result of LCM inventory adjustments. The Houston refinery operated at 186,000 barrels per day due to maintenance on one set of crude and coker units. The Maya 2-1-1 industry benchmark crack spread decreased by $0.69 per barrel, averaging $17.86 per barrel. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards was unchanged versus the fourth quarter 2015.
Three months ended March 31, 2016 versus three months ended March 31, 2015 – EBITDA decreased $140 million versus the first quarter 2015, excluding a favorable $5 million quarter to quarter variance as a result of LCM inventory adjustments. First quarter 2016 throughput was down by 55,000 barrels per day from the prior year period due to planned maintenance. The Maya 2-1-1 industry benchmark crack spread decreased by $5.88 per barrel. The cost of RINs was relatively unchanged relative to the first quarter 2015.
Technology Segment – 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 |
|||||
|
March 31, |
December 31, |
March 31, |
|||
|
Millions of U.S. dollars |
2016 |
2015 |
2015 |
||
|
Operating income |
$73 |
$54 |
$64 |
||
|
EBITDA |
83 |
65 |
76 |
||
Three months ended March 31, 2016 versus three months ended December 31, 2015 – EBITDA increased by $18 million, largely driven by the timing of licensing revenue.
Three months ended March 31, 2016 versus three months ended March 31, 2015 – EBITDA increased by $7 million.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $527 million during the first quarter 2016. Our cash and liquid investment balance was $3.0 billion at March 31, 2016. We repurchased 12.3 million ordinary shares during the first quarter 2016. There were 428 million common shares outstanding as of March 31, 2016. The company paid dividends of $336 million during the first quarter of 2016 and issued €750 million in bonds at a coupon rate of 1.875% due in 2022.
CONFERENCE CALL
LyondellBasell will host a conference call April 22 at 11 a.m. EDT. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer, 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 6934553.
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. EDT April 22 until May 23 at 12:59 a.m. EDT. The replay dial-in numbers are 866-513-4385 (U.S.) and +1 203-369-1984 (international). The pass code for each is 42216.
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 57 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; 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, 2015, 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 related to our use of LIFO accounting and the recent decline 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) | ||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 | ||||||||||||||||
|
Sales and other operating revenues: |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
2,551 |
$ |
2,679 |
$ |
2,516 |
$ |
2,218 |
$ |
9,964 |
$ |
2,115 | ||||||||||
|
Olefins & Polyolefins - EAI |
2,911 |
3,061 |
2,932 |
2,672 |
11,576 |
2,578 | ||||||||||||||||
|
Intermediates & Derivatives |
1,918 |
2,159 |
2,039 |
1,656 |
7,772 |
1,702 | ||||||||||||||||
|
Refining |
1,607 |
2,102 |
1,693 |
1,155 |
6,557 |
955 | ||||||||||||||||
|
Technology |
136 |
107 |
100 |
122 |
465 |
132 | ||||||||||||||||
|
Other/elims |
(938) |
(963) |
(946) |
(752) |
(3,599) |
(739) | ||||||||||||||||
|
Continuing Operations |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 | ||||||||||
|
Operating income (loss): |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
934 |
$ |
920 |
$ |
740 |
$ |
662 |
$ |
3,256 |
$ |
707 | ||||||||||
|
Olefins & Polyolefins - EAI |
236 |
359 |
412 |
302 |
1,309 |
358 | ||||||||||||||||
|
Intermediates & Derivatives |
271 |
405 |
403 |
145 |
1,224 |
255 | ||||||||||||||||
|
Refining |
74 |
119 |
52 |
(101) |
144 |
(30) | ||||||||||||||||
|
Technology |
64 |
45 |
34 |
54 |
197 |
73 | ||||||||||||||||
|
Other |
(4) |
(3) |
9 |
(10) |
(8) |
(3) | ||||||||||||||||
|
Continuing Operations |
$ |
1,575 |
$ |
1,845 |
$ |
1,650 |
$ |
1,052 |
$ |
6,122 |
$ |
1,360 | ||||||||||
|
Depreciation and amortization: |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
86 |
$ |
85 |
$ |
87 |
$ |
95 |
$ |
353 |
$ |
90 | ||||||||||
|
Olefins & Polyolefins - EAI |
55 |
54 |
54 |
56 |
219 |
55 | ||||||||||||||||
|
Intermediates & Derivatives |
60 |
56 |
55 |
62 |
233 |
70 | ||||||||||||||||
|
Refining |
74 |
40 |
41 |
41 |
196 |
43 | ||||||||||||||||
|
Technology |
12 |
12 |
11 |
11 |
46 |
10 | ||||||||||||||||
|
Continuing Operations |
$ |
287 |
$ |
247 |
$ |
248 |
$ |
265 |
$ |
1,047 |
$ |
268 | ||||||||||
|
EBITDA: (b) |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
1,031 |
$ |
1,014 |
$ |
841 |
$ |
775 |
$ |
3,661 |
$ |
878 | ||||||||||
|
Olefins & Polyolefins - EAI |
357 |
492 |
549 |
427 |
1,825 |
509 | ||||||||||||||||
|
Intermediates & Derivatives |
337 |
466 |
460 |
212 |
1,475 |
326 | ||||||||||||||||
|
Refining |
149 |
159 |
93 |
(59) |
342 |
14 | ||||||||||||||||
|
Technology |
76 |
57 |
45 |
65 |
243 |
83 | ||||||||||||||||
|
Other |
2 |
(2) |
13 |
(26) |
(13) |
(3) | ||||||||||||||||
|
Continuing Operations |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 | ||||||||||
|
Capital, turnarounds and IT deferred spending: |
||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
149 |
$ |
140 |
$ |
159 |
$ |
220 |
$ |
668 |
$ |
303 | ||||||||||
|
Olefins & Polyolefins - EAI |
38 |
27 |
49 |
72 |
186 |
81 | ||||||||||||||||
|
Intermediates & Derivatives |
76 |
76 |
135 |
154 |
441 |
76 | ||||||||||||||||
|
Refining |
33 |
28 |
23 |
24 |
108 |
57 | ||||||||||||||||
|
Technology |
6 |
3 |
7 |
8 |
24 |
6 | ||||||||||||||||
|
Other |
4 |
4 |
- - |
5 |
13 |
4 | ||||||||||||||||
|
Continuing Operations |
$ |
306 |
$ |
278 |
$ |
373 |
$ |
483 |
$ |
1,440 |
$ |
527 | ||||||||||
|
(a) |
EBITDA as presented herein includes the impacts of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. EBITDA for the first quarter 2016 includes a pre-tax LCM adjustment of $68 million and a $78 million gain on the sale of our wholly owned Argentine subsidiary. See Tables 2 through 6 for LCM adjustments recorded for each segment. | ||||||||||||||||||||||
|
(b) |
See Table 8 for EBITDA calculation. | ||||||||||||||||||||||
|
Table 8 - EBITDA Calculation | |||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 | |||||||||||||||
|
Net income(a) |
$ |
1,164 |
$ |
1,329 |
$ |
1,186 |
$ |
795 |
$ |
4,474 |
$ |
1,030 | |||||||||
|
(Income) loss from discontinued operations, net of tax |
3 |
(3) |
3 |
2 |
5 |
- - | |||||||||||||||
|
Income from continuing operations(a) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 | |||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 | |||||||||||||||
|
Depreciation and amortization |
287 |
247 |
248 |
265 |
1,047 |
268 | |||||||||||||||
|
Interest expense, net |
58 |
72 |
77 |
70 |
277 |
77 | |||||||||||||||
|
EBITDA(b) |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 |
$ |
1,807 | |||||||||
|
(a) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. | |||||||||||||||||||||
|
(b) |
EBITDA as presented herein includes the impact of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a gain of $78 million on the sale of our wholly owned Argentine subsidiary. | |||||||||||||||||||||
|
Table 9 - Selected Segment Operating Information | ||||||||||||||||
|
2015 |
2016 | |||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 | |||||||||||
|
Olefins and Polyolefins - Americas |
||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||
|
Ethylene produced |
2,364 |
2,415 |
2,514 |
2,391 |
9,684 |
2,392 | ||||||||||
|
Propylene produced |
805 |
740 |
697 |
798 |
3,040 |
832 | ||||||||||
|
Polyethylene sold |
1,473 |
1,575 |
1,577 |
1,578 |
6,203 |
1,554 | ||||||||||
|
Polypropylene sold |
627 |
698 |
662 |
606 |
2,593 |
612 | ||||||||||
|
Benchmark Market Prices |
||||||||||||||||
|
West Texas Intermediate crude oil (USD per barrel) |
48.57 |
57.95 |
45.36 |
42.16 |
48.71 |
33.63 | ||||||||||
|
Light Louisiana Sweet ("LLS") crude oil (USD per barrel) |
52.84 |
62.93 |
50.20 |
43.53 |
52.36 |
35.34 | ||||||||||
|
Natural gas (USD per million BTUs) |
2.76 |
2.76 |
2.72 |
2.11 |
2.57 |
1.93 | ||||||||||
|
U.S. weighted average cost of ethylene production (cents/pound) |
10.2 |
9.7 |
9.6 |
10.9 |
10.1 |
9.8 | ||||||||||
|
U.S. ethylene (cents/pound) |
34.8 |
34.2 |
30.3 |
27.5 |
31.7 |
26.7 | ||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
65.7 |
67.3 |
64.3 |
57.0 |
63.6 |
52.3 | ||||||||||
|
U.S. propylene (cents/pound) |
49.7 |
41.7 |
33.2 |
31.3 |
39.0 |
31.0 | ||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
67.7 |
61.7 |
59.3 |
62.7 |
62.8 |
67.8 | ||||||||||
|
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||
|
Ethylene produced |
1,007 |
1,047 |
944 |
978 |
3,976 |
950 | ||||||||||
|
Propylene produced |
600 |
632 |
575 |
575 |
2,382 |
555 | ||||||||||
|
Polyethylene sold |
1,533 |
1,360 |
1,304 |
1,379 |
5,576 |
1,434 | ||||||||||
|
Polypropylene sold |
1,817 |
1,529 |
1,673 |
1,757 |
6,776 |
1,773 | ||||||||||
|
Benchmark Market Prices (€0.01 per pound) |
||||||||||||||||
|
Western Europe weighted average cost of ethylene production |
22.9 |
23.2 |
14.4 |
22.5 |
20.8 |
16.3 | ||||||||||
|
Western Europe ethylene |
39.3 |
47.1 |
46.6 |
41.4 |
43.6 |
38.4 | ||||||||||
|
Western Europe polyethylene [high density] |
45.2 |
60.6 |
61.2 |
56.9 |
56.0 |
55.4 | ||||||||||
|
Western Europe propylene |
37.1 |
44.4 |
41.7 |
31.0 |
38.5 |
26.3 | ||||||||||
|
Western Europe polypropylene [homopolymer] |
49.8 |
62.5 |
59.3 |
47.4 |
54.7 |
46.5 | ||||||||||
|
Intermediates and Derivatives |
||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||
|
Propylene oxide and derivatives |
870 |
751 |
697 |
682 |
3,000 |
793 | ||||||||||
|
Ethylene oxide and derivatives |
268 |
312 |
282 |
237 |
1,099 |
301 | ||||||||||
|
Styrene monomer |
903 |
735 |
904 |
889 |
3,431 |
917 | ||||||||||
|
Acetyls |
547 |
810 |
733 |
623 |
2,713 |
702 | ||||||||||
|
TBA Intermediates |
433 |
321 |
421 |
371 |
1,546 |
415 | ||||||||||
|
Volumes (million gallons) |
||||||||||||||||
|
MTBE/ETBE |
229 |
299 |
268 |
258 |
1,054 |
270 | ||||||||||
|
Benchmark Market Margins (cents per gallon) |
||||||||||||||||
|
MTBE - Northwest Europe |
64.0 |
106.0 |
119.0 |
49.8 |
85.1 |
44.4 | ||||||||||
|
Refining |
||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||
|
Heavy crude oil processing rate |
241 |
255 |
249 |
206 |
238 |
186 | ||||||||||
|
Benchmark Market Margins |
||||||||||||||||
|
Light crude oil - 2-1-1 |
15.02 |
16.42 |
15.29 |
9.44 |
14.04 |
8.67 | ||||||||||
|
Light crude oil - Maya differential |
8.72 |
7.56 |
7.48 |
9.11 |
8.26 |
9.18 | ||||||||||
|
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 | ||||||||||||||||||||||
|
2015 |
2016 | |||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 | ||||||||||||||||
|
Sales and other operating revenues |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 |
$ |
6,743 | ||||||||||
|
Cost of sales(a) |
6,379 |
7,047 |
6,465 |
5,792 |
25,683 |
5,166 | ||||||||||||||||
|
Selling, general and administrative expenses |
205 |
228 |
194 |
201 |
828 |
193 | ||||||||||||||||
|
Research and development expenses |
26 |
25 |
25 |
26 |
102 |
24 | ||||||||||||||||
|
Operating income(a) |
1,575 |
1,845 |
1,650 |
1,052 |
6,122 |
1,360 | ||||||||||||||||
|
Income from equity investments |
69 |
90 |
93 |
87 |
339 |
91 | ||||||||||||||||
|
Interest expense, net |
(58) |
(72) |
(77) |
(70) |
(277) |
(77) | ||||||||||||||||
|
Other income (expense), net(b) |
21 |
4 |
10 |
(10) |
25 |
88 | ||||||||||||||||
|
Income from continuing operations before income taxes(a, b) |
1,607 |
1,867 |
1,676 |
1,059 |
6,209 |
1,462 | ||||||||||||||||
|
Provision for income taxes |
440 |
541 |
487 |
262 |
1,730 |
432 | ||||||||||||||||
|
Income from continuing operations(c) |
1,167 |
1,326 |
1,189 |
797 |
4,479 |
1,030 | ||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
(3) |
3 |
(3) |
(2) |
(5) |
- - | ||||||||||||||||
|
Net income(c) |
1,164 |
1,329 |
1,186 |
795 |
4,474 |
1,030 | ||||||||||||||||
|
Net (income) loss attributable to non-controlling interests |
2 |
1 |
(1) |
- - |
2 |
- - | ||||||||||||||||
|
Net income attributable to the Company shareholders(c) |
$ |
1,166 |
$ |
1,330 |
$ |
1,185 |
$ |
795 |
$ |
4,476 |
$ |
1,030 | ||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes a pre-tax LCM charge of $68 million. | |||||||||||||||||||||
|
(b) |
Includes a gain of $78 million on the sale of our wholly owned Argentine subsidiary. | |||||||||||||||||||||
|
(c) |
Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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. The first quarter of 2016 includes an after-tax LCM charge of $47 million and an after-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. | |||||||||||||||||||||
|
Table 11 - Charges (Benefits) Included in Income from Continuing Operations | |||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||
|
Millions of U.S. dollars (except share data) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 | |||||||||||||
|
Pretax charges (benefits): |
|||||||||||||||||||
|
Gain on sale of wholly owned subsidiary |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
(78) | |||||||
|
Lower of cost or market inventory adjustment |
92 |
(9) |
181 |
284 |
548 |
68 | |||||||||||||
|
Emission allowance credits, amortization |
35 |
- - |
- - |
- - |
35 |
- - | |||||||||||||
|
Total pretax charges (benefits) |
127 |
(9) |
181 |
284 |
583 |
(10) | |||||||||||||
|
Provision for (benefit from) income tax related to these items |
(47) |
3 |
(67) |
(99) |
(210) |
(21) | |||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
80 |
$ |
(6) |
$ |
114 |
$ |
185 |
$ |
373 |
$ |
(31) | |||||||
|
Effect on diluted earnings per share |
$ |
(0.17) |
$ |
0.02 |
$ |
(0.25) |
$ |
(0.42) |
$ |
(0.80) |
$ |
0.07 | |||||||
|
Table 12 - Unaudited Cash Flow Information | |||||||||||||||||||||
|
2015 |
2016 | ||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 | |||||||||||||||
|
Net cash provided by operating activities |
$ |
1,468 |
$ |
1,446 |
$ |
1,768 |
$ |
1,160 |
$ |
5,842 |
$ |
1,300 | |||||||||
|
Net cash provided by (used in) investing activities |
(443) |
(727) |
67 |
52 |
(1,051) |
(597) | |||||||||||||||
|
Net cash used in financing activities |
(401) |
(1,021) |
(1,684) |
(1,744) |
(4,850) |
(333) | |||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information | ||||||||||||||||||||
|
March 31, |
June 30, |
September 30, |
December 31, |
March 31, | ||||||||||||||||
|
(Millions of U.S. dollars) |
2015 |
2015 |
2015 |
2015 |
2016 | |||||||||||||||
|
Cash and cash equivalents |
$ |
1,616 |
$ |
1,325 |
$ |
1,474 |
$ |
924 |
$ |
1,318 | ||||||||||
|
Restricted cash |
2 |
3 |
1 |
7 |
4 | |||||||||||||||
|
Short-term investments |
1,478 |
1,989 |
1,602 |
1,064 |
1,332 | |||||||||||||||
|
Accounts receivable, net |
3,089 |
3,373 |
2,924 |
2,517 |
2,683 | |||||||||||||||
|
Inventories |
4,267 |
4,179 |
4,138 |
4,051 |
3,978 | |||||||||||||||
|
Prepaid expenses and other current assets(a) |
1,195 |
1,121 |
1,059 |
1,226 |
1,009 | |||||||||||||||
|
Total current assets |
11,647 |
11,990 |
11,198 |
9,789 |
10,324 | |||||||||||||||
|
Property, plant and equipment, net |
8,430 |
8,636 |
8,793 |
8,991 |
9,373 | |||||||||||||||
|
Investments and long-term receivables: |
||||||||||||||||||||
|
Investment in PO joint ventures |
373 |
357 |
357 |
397 |
398 | |||||||||||||||
|
Equity investments |
1,581 |
1,612 |
1,602 |
1,608 |
1,734 | |||||||||||||||
|
Other investments and long-term receivables |
38 |
126 |
125 |
122 |
18 | |||||||||||||||
|
Goodwill |
533 |
543 |
543 |
536 |
548 | |||||||||||||||
|
Intangible assets, net |
695 |
671 |
644 |
640 |
618 | |||||||||||||||
|
Other assets(a) |
637 |
600 |
605 |
674 |
559 | |||||||||||||||
|
Total assets |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 | ||||||||||
|
Current maturities of long-term debt |
$ |
4 |
$ |
3 |
$ |
3 |
$ |
4 |
$ |
4 | ||||||||||
|
Short-term debt |
514 |
582 |
573 |
353 |
594 | |||||||||||||||
|
Accounts payable |
2,631 |
2,755 |
2,450 |
2,182 |
2,243 | |||||||||||||||
|
Accrued liabilities |
1,482 |
1,455 |
1,784 |
1,810 |
1,600 | |||||||||||||||
|
Deferred income taxes(a) |
429 |
434 |
383 |
- - |
- - | |||||||||||||||
|
Total current liabilities |
5,060 |
5,229 |
5,193 |
4,349 |
4,441 | |||||||||||||||
|
Long-term debt |
7,677 |
7,658 |
7,674 |
7,671 |
8,504 | |||||||||||||||
|
Other liabilities |
2,038 |
2,063 |
2,044 |
2,036 |
2,125 | |||||||||||||||
|
Deferred income taxes(a) |
1,653 |
1,635 |
1,604 |
2,127 |
2,134 | |||||||||||||||
|
Stockholders' equity |
7,478 |
7,927 |
7,328 |
6,550 |
6,344 | |||||||||||||||
|
Non-controlling interests |
28 |
23 |
24 |
24 |
24 | |||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 |
$ |
23,572 | ||||||||||
|
(a) |
Our prospective adoption of ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, in December 2015 resulted in the classification of our deferred taxes as of December 2015 as noncurrent. | |||||||||||||||||||
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SOURCE LyondellBasell Industries
Article Date
4/22/2016LyondellBasell to Discuss First-Quarter Results on Friday, April 22, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, April 12, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce first-quarter financial results before the U.S. market opens on Friday, April 22, to be followed by a webcast and teleconference to discuss results at 11 a.m. EDT.
Teleconference and Webcast Details:
Friday, April 22, 2016
11 a.m. EDT
Hosted by Doug Pike, Vice President, Investor Relations
Access the webcast 10 to 15 minutes prior to the call at www.lyb.com/earnings
Toll-Free Teleconference Dial-In Numbers:
United States: 888-677-1826
United Kingdom: 0800-279-9630
Netherlands: 0800-343-4364
Passcode: 6934553
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from 2 p.m. EDT April 22 until May 23 at 12:59 a.m. EDT.
The replay dial-in numbers are:
Toll Free: 866-513-4385
Toll: 203-369-1984
Passcode: 42216
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 57 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.
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SOURCE LyondellBasell
Article Date
4/12/2016LyondellBasell Completes Second Polypropylene Compounds Acquisition in India
Source: PR Newswire
HOUSTON and LONDON, April 7, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that it completed the previously announced acquisition of the polypropylene (PP) compounding assets of Zylog Plastalloys Pvt. Ltd. (Zylog) in India. The company entered into a definitive agreement to acquire Zylog's PP compounding assets in November 2015.
LyondellBasell has supplied the Indian market through imports and tolling arrangements since 2009. In October 2015, LyondellBasell acquired SJS Plastiblends Pvt. Ltd.'s PP compounding business which is located in Aurangabad, Maharashtra. With the acquisition of Zylog's manufacturing operations in Sinnar, Maharashtra, and Chennai, Tamil Nadu, LyondellBasell is now the third largest producer of PP compounds in India with an annual capacity of 44,000 metric tons (97 million pounds).
In addition to the already existing product lines offered at these sites, LyondellBasell will produce its Hostacom glass fiber-reinforced, mineral filled and unfilled colored grades as well as Hifax high impact thermoplastic olefins. These compounds are used to manufacture automotive parts, home appliances and other products.
"Our investments in India demonstrate LyondellBasell's continued focus on strategic growth projects that increase our competitive advantage and provide a strong return on assets," said Bhavesh (Bob) Patel, CEO and chairman of the management board of LyondellBasell. "We are proud of the high-quality products we provide to the automotive manufacturers, and our expansion in India underscores our commitment to meeting customer needs globally," he added.
LyondellBasell is the world's largest producer of PP compounds with an annual capacity of 1.3 million metric tons (2.8 billion pounds).
India represents the fourth largest growth market for automobiles globally with 3 million new vehicles produced each year. According to IHS Inc., India's automotive market is expected to continue growing by 6 to 8 percent annually through 2021. In its latest Global Economic Prospect report, the World Bank projected that India's GDP will grow by 7.8 percent in 2016 and 7.9 percent annually in 2017 and 2018.
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 57 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.
Hostacom and Hifax are trademarks owned by LyondellBasell.
The manufacturing facilities in India are owned and operated by Basell Polyolefins India Pvt. Ltd., a wholly-owned subsidiary of LyondellBasell.
Forward-Looking Statements
The statements in this release 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 from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to achieve expected cost savings and other synergies; our ability to successfully integrate and operate the acquired business described in this release; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the Company and its affiliates are located. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. 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, 2015, 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. LyondellBasell assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.
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SOURCE LyondellBasell
Article Date
4/7/2016LyondellBasell Among the Top United Way of Greater Houston Campaigns for 2015
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, March 23, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced a donation of $1.9 million to the United Way of Greater Houston for its 2015 campaign. As part of the company's 2015 effort, LyondellBasell held United Way campaigns at 22 company sites across the U.S. and raised a total of $2.7 million.
"We are committed to being a responsible, good neighbor in the communities where we operate," said LyondellBasell CEO Bob Patel. "We are very proud of our efforts and the generosity of our employees in giving back to their communities through charitable giving and volunteer service."
Donations to the United Way of Greater Houston come from multiple LyondellBasell manufacturing sites, including the Channelview Complex, the Houston Refinery and the La Porte Complex, as well as the company's operational headquarter offices in downtown Houston.
"LyondellBasell continues to be one of United Way's top corporate contributors, and we appreciate the hard work of their campaign leaders and the generous hearts of their employees," said Marc Watts, chairman of the board of the United Way of Greater Houston.
"LyondellBasell is a model for giving in our community," said Debbie Moseley, executive director of Bridge Over Troubled Waters, a United Way agency located in Pasadena, Texas. "Not only do they provide financial support through their annual United Way campaign, but LyondellBasell employees have volunteered to paint, make repairs to our building, weed and install new landscaping," she added. Bridge Over Troubled Waters provides emergency shelter, long-term housing, childcare, women's services and educational programs for victims of domestic violence.
In addition to supporting the United Way, in 2015 approximately 2,900 LyondellBasell employees and family members around the world participated in Global Care Day, the company's annual day of service. LyondellBasell also plays a leadership role in supporting many other Houston area organizations including Junior Achievement of Southeast Texas, the Houston Independent School District's Energy Institute, San Jacinto Community College, the Pasadena Independent School District and the Houston Food Bank. In addition to the United Way, in 2015 LyondellBasell donated $ 1.7 million to 1,030 non-profit agencies in the U.S.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies, with more than 4,000 employees in the greater Houston area. The company manufactures products at 55 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. More information about LyondellBasell can be found at www.lyb.com
About the United Way of Greater Houston
For more than 90 years, United Way of Greater Houston has been a leader and trusted partner in improving lives, tackling key community social issues and making a lasting difference. United Way of Greater Houston, last year alone, touched the lives of more than 2.4 million people in the Bay Area and in Fort Bend, Harris, Montgomery and Waller counties. United Way focuses on strengthening the community by developing children and youth to their full potential, creating strong families and safe neighborhoods, sustaining senior independence and rebuilding people's lives in times of crisis. For more information go to www.unitedwayhouston.org.
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SOURCE LyondellBasell
Article Date
3/23/20163/11/2016 - LyondellBasell Honored by Junior Achievement with the US President's Volunteer Service Award
LyondellBasell Honored by Junior Achievement with the US President's Volunteer Service Award
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, March 11, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that it has been honored with the U.S. President's Volunteer Service Silver Award for donating 10,000 volunteer hours to Junior Achievement (JA) in the 2014-2015 school year. The company was recently recognized at a special awards ceremony held in New York City.
"At LyondellBasell, a key part of our mission is being a responsible, good neighbor in the communities where we operate. Partnering with Junior Achievement has been a great experience for our company because it gives our team a real opportunity to directly share knowledge and skills that are so important for future success," said Bob Patel, LyondellBasell's CEO and chairman of the management board. "I am grateful for the opportunity to serve on JA's board of directors for Southeast Texas, but more importantly, for the employees who gave of their time to serve as JA mentors and positive role models."
In addition to donating 10,000 volunteer hours, LyondellBasell contributed a total of $111,485 to Junior Achievement this past school year. Approximately 265 LyondellBasell employees at company sites across the country taught financial literacy skills and entrepreneurship, and inspired students from kindergarten to high school to reach their greatest potential.
"Junior Achievement volunteers are important mentors for young people, bringing our programs to life. JA volunteers share their experiences and skills with students while delivering our programs, teaching them how to manage their money, succeed in the workforce, or start a business that creates jobs and helps the economy grow. JA's volunteers are critical to our organization's success and are a vital part of our mission," said Rick Franke, JA of Southeast Texas President.
President George W. Bush established the President's Council on Service and Civic Participation in 2003 to recognize the valuable contributions volunteers make in communities and to encourage more people to serve. The Council created the President's Volunteer Service Award program as a way to thank and honor Americans who, by their demonstrated commitment and example, inspire others to engage in volunteer service. In 2006, Junior Achievement became an official certifying organization for this award, which recognizes corporations with a U.S. presence that provide volunteers to teach JA programs anywhere in the world.
About Junior Achievement USA® (JA)
Junior Achievement is the world's largest organization dedicated to giving young people the knowledge and skills they need to own their economic success, plan for their future, and make smart academic and economic choices. JA programs are delivered by corporate and community volunteers, and provide relevant, hands-on experiences that give students from kindergarten through high school essential experience and skills in financial literacy, work readiness, and entrepreneurship. Today, JA reaches 4.6 million students per year in 112 markets across the United States, with an additional 5.6 million students served by operations in 121 other countries worldwide. Visit www.ja.org for more information.
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.lyb.com) manufactures products at 55 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.
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SOURCE LyondellBasell
Article Date
3/11/2016LyondellBasell Prices Public Offering of Guaranteed Notes
Source: PR Newswire
HOUSTON and LONDON, Feb. 24, 2016 /PRNewswire/ -- LyondellBasell Industries N.V. (NYSE: LYB) ("LyondellBasell" or the "Company") announced today that LYB International Finance II B.V., its wholly-owned subsidiary, priced its public offering of €750 million aggregate principal amount of 1.875% Guaranteed Notes due 2022 (the "Notes"). The Notes are fully and unconditionally guaranteed by LyondellBasell. The offering is expected to close on March 2, 2016, subject to customary closing conditions. The proceeds of the offering are expected to be used for general corporate purposes, including repurchases of LyondellBasell's ordinary shares.
Barclays Bank PLC, Deutsche Bank AG, London Branch, ING Bank N.V. and Morgan Stanley & Co. International plc are the active joint book-running managers for this offering.
An automatic shelf registration statement (including a prospectus) relating to the Notes was previously filed with the Securities and Exchange Commission and became effective upon filing. Before you invest, you should read the prospectus in the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the related prospectus supplement if you request it by calling Barclays Bank PLC toll-free at +1 (888) 603-5487, Deutsche Bank AG, London Branch toll-free at +1 (800) 503-4611, ING Bank N.V at +31 20 501 3104 or Morgan Stanley & Co. International plc toll-free at +1 (866) 718-1649.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Relevant stabilization regulations including FCA / ICMA apply.
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 55 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.
Cautionary Statement
The statements in this release 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. Cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in the Form 10-K of LyondellBasell Industries N.V. for the year ended December 31, 2015, and in subsequent filings for LyondellBasell.
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SOURCE LyondellBasell
Article Date
2/24/2016LyondellBasell to Address J.P. Morgan Aviation, Transportation & Industrials Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and NEW YORK, Feb. 24, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Bob Patel, CEO and chairman of the management board, will address investors at 10:55 a.m. EST on March 9, 2016, during the J.P. Morgan Aviation, Transportation & Industrials Conference at the J.P. Morgan Conference Center in New York.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at www.lyb.com/investorpresentations, where copies of the slides related to the webcast will also be available for download.
Webcast Replay
A replay of the webcast will be available via the Company's website, www.lyb.com/investorpresentations, from 4 p.m. EST on March 9, 2016, through April 9, 2016.
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.lyb.com) manufactures products at 55 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.
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SOURCE LyondellBasell
Article Date
2/24/2016LyondellBasell to Address Bank of America Global Agriculture & Chemicals Conference
Source: PR Newswire
HOUSTON and NEW YORK, Feb. 17, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced that Sergey Vasnetsov, senior vice president, Strategic Planning and Transactions, will address investors at 1:30 p.m. EST on March 2, 2016, during the Bank of America Global Agriculture & Chemicals Conference at The Ritz-Carlton in Ft. Lauderdale, FL.
Webcast and Presentation Slides Access
A live webcast can be accessed at the time of the presentation at www.lyb.com/investorpresentations, where copies of the slides related to the webcast will also be available for download.
Webcast Replay
A replay of the webcast will be available via the Company's website, www.lyb.com/investorpresentations, from 4 p.m. EST on March 2, 2016 through April 2, 2016.
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.lyb.com) manufactures products at 55 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.
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SOURCE LyondellBasell
Article Date
2/17/20162/17/2016 - LyondellBasell Board Authorizes Interim Dividend
LyondellBasell Board Authorizes Interim Dividend
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Feb. 17, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today announced that its Supervisory Board has authorized the company's Management Board to declare an interim dividend of $0.78 per share. The interim dividend will be paid March 14, 2016 to shareholders of record February 29, 2016 with an ex-dividend date of February 25, 2016.
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 55 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.
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SOURCE LyondellBasell
Article Date
2/17/2016LyondellBasell Sells Argentina-based Petroken to Grupo Inversor Petroquímica S.L.
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Feb. 5, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced the completion of the sale of its wholly-owned subsidiary Petroken Petroquimica Ensenada S.A. (Petroken) to Grupo Inversor Petroquímica S.L. (GIP) for $184 million. Petroken operates a 180 kiloton plant in Ensenada and is a leading polypropylene producer in Argentina.
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 55 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.
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SOURCE LyondellBasell
Article Date
2/5/20162/2/2016 - LyondellBasell Reports Record 2015 Earnings
LyondellBasell Reports Record 2015 Earnings
Source: PR Newswire
HOUSTON and LONDON, Feb. 2, 2016 /PRNewswire/ --
2015 Full Year Highlights
– Income from continuing operations: $4.5 billion ($4.8 billion excluding LCM1)
– Diluted earnings per share: $9.60 per share ($10.35 per share excluding LCM)
– EBITDA: $7.5 billion ($8.1 billion excluding LCM)
– Completed a 250 million pound ethylene expansion at Channelview, Texas, the third in a series of planned expansions targeted to increase our U.S. ethylene capacity by approximately 25%
– Added over 120 million pounds of polypropylene compounds capacity
– Full year cash generation from operations totaled $5.8 billion
– Share repurchases and dividends totaled $6.1 billion
– Repurchased 52 million shares or approximately 11% of the shares outstanding on January 1, 2015
Fourth Quarter 2015 Highlights
Comparisons with the prior quarter, fourth quarter 2014 and full year 2014 are available in the following table:
|
Table 1 - Earnings Summary |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
Millions of U.S. dollars |
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||
|
(except share data) |
2015 |
2015 |
2014 |
2015 |
2014 |
||
|
Sales and other operating revenues |
$7,071 |
$8,334 |
$10,290 |
$32,735 |
$45,608 |
||
|
Net income(a) |
795 |
1,186 |
791 |
4,474 |
4,168 |
||
|
Income from continuing operations(b) |
797 |
1,189 |
796 |
4,479 |
4,172 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Net income(c) |
1.78 |
2.54 |
1.54 |
9.59 |
7.99 |
||
|
Income from continuing operations(b) |
1.78 |
2.55 |
1.57 |
9.60 |
8.00 |
||
|
Diluted share count (millions) |
446 |
463 |
499 |
466 |
521 |
||
|
EBITDA(d) |
1,394 |
2,001 |
1,406 |
7,533 |
7,050 |
||
|
Excluding LCM Impact: |
|||||||
|
LCM charges, pre-tax |
284 |
181 |
715 |
548 |
760 |
||
|
Income from continuing operations |
982 |
1,303 |
1,251 |
4,830 |
4,655 |
||
|
Diluted earnings per share (U.S. dollars): |
|||||||
|
Income from continuing operations |
2.20 |
2.80 |
2.48 |
10.35 |
8.92 |
||
|
EBITDA |
1,678 |
2,182 |
2,121 |
8,081 |
7,810 |
||
|
(a) |
Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10. | |||||||
|
(b) |
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." | |||||||
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2015 of $797 million, or $1.78 per share. Fourth quarter 2014 EBITDA was $1.4 billion. The quarter included a $284 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($185 million after-tax). Excluding the LCM adjustment, earnings from continuing operations during the fourth quarter totaled $982 million, or $2.20 per share and EBITDA was $1.7 billion. Full year 2015 income from continuing operations was $4.5 billion, or $9.60 per share, and EBITDA was $7.5 billion. The full year included a non-cash, pre-tax LCM inventory adjustment of $548 million ($351 million after tax). Excluding the LCM adjustment, earnings from continuing operations for the full year totaled $4.8 billion, or $10.35 per share, and EBITDA was $8.1 billion.
"During 2015, LyondellBasell generated record earnings, advanced our growth program, and continued returning cash to shareholders at an industry-leading rate. Our company posted strong results, with record performance from our Olefins and Polyolefins - Europe, Asia and International, Intermediates and Derivatives, and Technology segments. Despite the challenging oil and gas environment, LyondellBasell's performance remained focused and steady. We continue to prove that we are capable of delivering strong results under a wide range of market conditions," said Bob Patel, LyondellBasell chief executive officer.
"During 2015 we continued to implement and expand our strategic programs. We completed a 250 million pound per year ethylene expansion and increased our polypropylene compounds capacity by 120 million pounds. We also advanced additional value-enhancing projects including a propylene oxide and tertiary butyl alcohol facility, an ethylene expansion at our Corpus Christi plant and U.S. polyethylene capacity," continued Patel.
"Our cash generation continued to be very strong in 2015 and we returned cash to shareholders through share repurchases and dividends totaling approximately $6.1 billion. Since initiating our dividend and share repurchases, we have paid approximately $9.2 billion in dividends and acquired approximately 25% of the then outstanding shares," Patel said.
OUTLOOK
"We are confident that our industry position and our continued focus on cost and operating discipline will serve us well under a variety of market conditions. While near-term industry performance will partially hinge on the direction of raw material costs and subsequent price responses, our growth positions remain advantaged, product demand continues to be good and our expansions are generating incremental earnings. During 2016 we plan to complete an 800 million pound ethylene expansion project, complete engineering for our one billion pound propylene oxide plant and finalize our polyethylene expansion plans. LyondellBasell will continue to prudently pursue value-creating expansions while maintaining focus on operational performance, earnings growth and shareholder value," 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 and 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 |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
||
|
Operating income |
$662 |
$740 |
$950 |
$3,256 |
$3,572 |
||
|
EBITDA |
775 |
841 |
1,040 |
3,661 |
3,911 |
||
|
LCM charges, pre-tax |
59 |
79 |
234 |
160 |
279 |
||
|
EBITDA excluding LCM adjustments |
834 |
920 |
1,274 |
3,821 |
4,190 |
||
Three months ended December 31, 2015 versus three months ended September 30, 2015 –EBITDA decreased $86 million for the fourth quarter 2015 versus the third quarter 2015, excluding a favorable $20 million quarter to quarter variance as a result of LCM inventory adjustments. Compared to the prior period, underlying olefins results decreased approximately $130 million. This decrease was driven by lower ethylene and coproduct prices. Lower feedstock costs resulted in ethylene margins that were approximately 6 cents per pound lower than the third quarter 2015. Our ethylene plants operated at 95% of capacity. Combined polyolefin results increased by approximately $40 million. Polyethylene volumes remained strong while spreads were relatively unchanged. Polypropylene volumes declined due to operating issues while spreads over monomer improved by approximately 4 cents per pound. Joint venture equity income improved by $3 million.
Three months ended December 31, 2015 versus three months ended December 31, 2014 – EBITDA decreased $440 million versus the fourth quarter 2014, excluding a favorable $175 million quarter to quarter variance as a result of the LCM inventory adjustments. Olefin results accounted for the majority of the decline as quarterly EBITDA decreased approximately $660 million versus the prior year. Ethylene margins declined by approximately 28 cents per pound. Combined polyolefin results increased approximately $210 million versus the prior year period. Polyethylene volume improved by approximately 9 percent and spreads improved by approximately 6 cents per pound. Polypropylene spreads improved by approximately 12 cents per pound. Joint venture equity income improved by $10 million.
Full year ended December 31, 2015 versus full year ended December 31, 2014 – Segment EBITDA decreased $369 million versus 2014, excluding a favorable $119 million year to year variance as a result of the LCM inventory adjustments. Olefin results declined by approximately $970 million from the prior year. Ethylene margins declined by approximately 17 cents per pound versus 2014. Lower ethylene sales prices in 2015 were partially offset by lower feedstock costs. Production volume was approximately 14% higher as a result of the 2014 La Porte expansion and the absence of the 2014 La Porte turnaround. Combined polyolefin results increased approximately $570 million versus the prior year. Polyethylene spreads over ethylene improved approximately 5 cents per pound and volume increased approximately 5 percent following the 2014 Matagorda expansion. Polypropylene spreads improved by approximately 8 cents per pound. Equity income improved by $21 million versus the prior year due to stronger volumes and margins at our joint venture in Mexico.
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 3 - O&P–EAI Financial Overview |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
||
|
Operating income |
$302 |
$412 |
$246 |
$1,309 |
$884 |
||
|
EBITDA |
427 |
549 |
348 |
1,825 |
1,366 |
||
|
LCM charges, pre-tax |
24 |
6 |
44 |
30 |
44 |
||
|
EBITDA excluding LCM adjustments |
451 |
555 |
392 |
1,855 |
1,410 |
||
Three months ended December 31, 2015 versus three months ended September 30, 2015 – EBITDA decreased $104 million versus the record third quarter 2015, excluding an unfavorable $18 million quarter to quarter variance as a result of LCM inventory adjustments. Olefin results decreased approximately $130 million due to lower margins while ethylene volumes improved by approximately 4 percent. Combined polyolefin results improved by approximately $15 million and largely continued to maintain high spreads. Polypropylene compounds and polybutene-1 results improved by approximately $20 million. Equity income from joint ventures declined by $11 million.
Three months ended December 31, 2015 versus three months ended December 31, 2014 – EBITDA increased by $59 million versus the fourth quarter 2014, excluding a favorable $20 million quarter to quarter variance as a result of LCM inventory adjustments. Olefin results decreased by approximately $120 million primarily as a result of lower margins. Ethylene volume decreased by approximately 8 percent due to the turnaround at our Münchsmünster cracker in 2015. Combined polyolefin results increased approximately $150 million due to improved margins and higher volumes for both polyethylene and polypropylene. Polypropylene compounds and polybutene-1 results improved by approximately $20 million. Equity income from joint ventures increased by $12 million.
Full year ended December 31, 2015 versus full year ended December 31, 2014 – The segment achieved record EBITDA for the year. EBITDA increased $445 million versus 2014, excluding a favorable $14 million year to year variance as a result of LCM inventory adjustments. 2014 benefited from a $52 million environmental settlement that was recognized in the first quarter of 2014. Underlying olefin results increased approximately $25 million, as average feedstock price declines outweighed lower average product prices. Combined polyolefin results increased approximately $420 million compared to the prior year driven by strong demand leading to 7% higher volume and improving margins. Polypropylene compounds and polybutene-1 were relatively unchanged. Equity income from joint ventures increased by $54 million, driven by strong results from joint ventures in Poland and South Korea.
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), ethylene oxide and its derivatives, and oxyfuels.
|
Table 4 - I&D Financial Overview |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
||
|
Operating income |
$145 |
$403 |
$208 |
$1,224 |
$1,220 |
||
|
EBITDA |
212 |
460 |
271 |
1,475 |
1,459 |
||
|
LCM charges, pre-tax |
74 |
46 |
93 |
181 |
93 |
||
|
EBITDA excluding LCM adjustments |
286 |
506 |
364 |
1,656 |
1,552 |
||
Three months ended December 31, 2015 versus three months ended September 30, 2015 – EBITDA decreased $220 million versus the record third quarter 2015, excluding an unfavorable $28 million quarter to quarter variance as a result of LCM inventory adjustments. Results for PO and PO derivatives decreased approximately $10 million. Intermediate chemicals results decreased by approximately $160 million, primarily due to declines in styrene and methanol margins and decreased acetyl volumes due to our extended La Porte turnaround. Oxyfuels results decreased approximately $60 million with typical seasonal margin declines. Equity income from joint ventures improved by $2 million.
Three months ended December 31, 2015 versus three months ended December 31, 2014 – EBITDA decreased $78 million versus the fourth quarter 2014, excluding a favorable $19 million quarter to quarter variance as a result of LCM inventory adjustments. Results for PO and PO derivatives improved by approximately $35 million. Intermediate chemicals results decreased by approximately $60 million driven by lower acetyls results from lower methanol margins and lower acetyl volumes as a result of our 2015 La Porte turnaround. Oxyfuels decreased approximately $55 million primarily as a result of unseasonably high margins during the fourth quarter of 2014. Equity income from joint ventures increased by $1 million.
Full year ended December 31, 2015 versus full year ended December 31, 2014 – The segment achieved record EBITDA for 2015. EBITDA increased $104 million versus 2014, excluding an unfavorable $88 million year to year variance as a result of LCM inventory adjustments. PO and PO derivatives results increased approximately $40 million due to slightly higher volumes. Intermediate chemicals results improved by approximately $120 million due to improved styrene margins that were partially offset by lower methanol and vinyl acetate margins. Oxyfuels results declined by approximately $60 million compared to the prior year as strong octane spreads over butane and 15% higher volumes partially offset a decline in gasoline prices. Equity income from joint ventures increased by $7 million.
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 |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
||
|
Operating income (loss) |
($101) |
$52 |
($354) |
$144 |
($106) |
||
|
EBITDA |
(59) |
93 |
(311) |
342 |
65 |
||
|
LCM charges, pre-tax |
127 |
50 |
344 |
177 |
344 |
||
|
EBITDA excluding LCM adjustments |
68 |
143 |
33 |
519 |
409 |
||
Three months ended December 31, 2015 versus three months ended September 30, 2015 – EBITDA decreased $75 million versus the third quarter 2014, excluding an unfavorable $77 million quarter to quarter variance as a result of LCM inventory adjustments. The Houston refinery operated at 206,000 barrels per day, down 43,000 barrels per day from the prior quarter due to unplanned repairs on several major units. The Maya 2-1-1 industry benchmark crack spread decreased by $4.22 per barrel, averaging $18.55 per barrel. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards increased by approximately $10 million versus the third quarter 2015.
Three months ended December 31, 2015 versus three months ended December 31, 2014 – EBITDA increased $35 million versus the fourth quarter 2014, excluding a favorable $217 million quarter to quarter variance as a result of LCM inventory adjustments. Fourth quarter 2015 throughput was down by 60,000 barrels per day from the prior year period. The Maya 2-1-1 industry benchmark crack spread increased by $0.83 per barrel, averaging $18.55 per barrel. Compared to the 2014 period, refinery margins decreased. The cost of RINs was relatively unchanged relative to the fourth quarter 2014.
Full year ended December 31, 2015 versus full year ended December 31, 2014 – EBITDA increased $110 million versus 2014, excluding a favorable $167 million year to year variance as a result of LCM inventory adjustments. Throughput at the Houston Refinery averaged 238,000 barrels per day, down 21,000 barrels per day. The Maya 2-1-1 industry benchmark crack spread decreased by $2.13 per barrel, averaging $22.30 per barrel. The refinery benefited from improved secondary product margins and higher Canadian crude volumes. The cost of RINs was relatively unchanged in 2015 relative to 2014.
Technology Segment – 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 |
Year Ended |
||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||
|
Millions of U.S. dollars |
2015 |
2015 |
2014 |
2015 |
2014 |
||
|
Operating income |
$54 |
$34 |
$29 |
$197 |
$171 |
||
|
EBITDA |
65 |
45 |
44 |
243 |
232 |
||
Three months ended December 31, 2015 versus three months ended September 30, 2015 – EBITDA increased by $20 million driven by the timing of licensing revenue in the fourth quarter and favorable catalyst volumes.
Three months ended December 31, 2015 versus three months ended December 31, 2014 – EBITDA increased by $21 million due to higher catalyst volumes.
Full year ended December 31, 2015 versus full year ended December 31, 2014 – EBITDA exceeded 2014 by $11 million, improving to a record level.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $483 million during the fourth quarter 2015 and $1.4 billion for the full year 2015. Our cash and liquid investment balance was $2.4 billion at December 31, 2015. We repurchased 12.7 million ordinary shares during the fourth quarter 2015 and 51.8 million shares during 2015. There were 440 million common shares outstanding as of December 31, 2015. The company paid dividends of $1.4 billion during 2015.
CONFERENCE CALL
LyondellBasell will host a conference call February 2 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer, 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 February 2 until March 2 at 11:59 p.m. ET. The replay dial-in numbers are 866-465-1311 (U.S.) and +1 203-369-1427 (international). The pass code for each is 22160.
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 related to our use of LIFO accounting and the recent decline 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 |
Q4 |
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 |
$ |
2,218 |
$ |
9,964 | |||||||||||||
|
Olefins & Polyolefins - EAI |
3,778 |
4,069 |
3,995 |
3,361 |
15,203 |
2,911 |
3,061 |
2,932 |
2,672 |
11,576 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
2,429 |
2,706 |
2,691 |
2,304 |
10,130 |
1,918 |
2,159 |
2,039 |
1,656 |
7,772 | |||||||||||||||||||||||
|
Refining |
2,756 |
3,250 |
3,146 |
2,558 |
11,710 |
1,607 |
2,102 |
1,693 |
1,155 |
6,557 | |||||||||||||||||||||||
|
Technology |
136 |
144 |
107 |
110 |
497 |
136 |
107 |
100 |
122 |
465 | |||||||||||||||||||||||
|
Other/elims |
(1,321) |
(1,514) |
(1,623) |
(1,422) |
(5,880) |
(938) |
(963) |
(946) |
(752) |
(3,599) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
11,135 |
$ |
12,117 |
$ |
12,066 |
$ |
10,290 |
$ |
45,608 |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 | |||||||||||||
|
Operating income (loss): |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
656 |
$ |
898 |
$ |
1,068 |
$ |
950 |
$ |
3,572 |
$ |
934 |
$ |
920 |
$ |
740 |
$ |
662 |
$ |
3,256 | |||||||||||||
|
Olefins & Polyolefins - EAI |
225 |
190 |
223 |
246 |
884 |
236 |
359 |
412 |
302 |
1,309 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
316 |
375 |
321 |
208 |
1,220 |
271 |
405 |
403 |
145 |
1,224 | |||||||||||||||||||||||
|
Refining |
86 |
95 |
67 |
(354) |
(106) |
74 |
119 |
52 |
(101) |
144 | |||||||||||||||||||||||
|
Technology |
60 |
56 |
26 |
29 |
171 |
64 |
45 |
34 |
54 |
197 | |||||||||||||||||||||||
|
Other |
(3) |
(1) |
1 |
(2) |
(5) |
(4) |
(3) |
9 |
(10) |
(8) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
1,340 |
$ |
1,613 |
$ |
1,706 |
$ |
1,077 |
$ |
5,736 |
$ |
1,575 |
$ |
1,845 |
$ |
1,650 |
$ |
1,052 |
$ |
6,122 | |||||||||||||
|
Depreciation and amortization: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
73 |
$ |
74 |
$ |
84 |
$ |
85 |
$ |
316 |
$ |
86 |
$ |
85 |
$ |
87 |
$ |
95 |
$ |
353 | |||||||||||||
|
Olefins & Polyolefins - EAI |
70 |
67 |
65 |
46 |
248 |
55 |
54 |
54 |
56 |
219 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
55 |
56 |
55 |
59 |
225 |
60 |
56 |
55 |
62 |
233 | |||||||||||||||||||||||
|
Refining |
42 |
42 |
42 |
43 |
169 |
74 |
40 |
41 |
41 |
196 | |||||||||||||||||||||||
|
Technology |
16 |
15 |
16 |
14 |
61 |
12 |
12 |
11 |
11 |
46 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
256 |
$ |
254 |
$ |
262 |
$ |
247 |
$ |
1,019 |
$ |
287 |
$ |
247 |
$ |
248 |
$ |
265 |
$ |
1,047 | |||||||||||||
|
EBITDA: (b) |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
736 |
$ |
978 |
$ |
1,157 |
$ |
1,040 |
$ |
3,911 |
$ |
1,031 |
$ |
1,014 |
$ |
841 |
$ |
775 |
$ |
3,661 | |||||||||||||
|
Olefins & Polyolefins - EAI |
356 |
319 |
343 |
348 |
1,366 |
357 |
492 |
549 |
427 |
1,825 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
375 |
430 |
383 |
271 |
1,459 |
337 |
466 |
460 |
212 |
1,475 | |||||||||||||||||||||||
|
Refining |
129 |
137 |
110 |
(311) |
65 |
149 |
159 |
93 |
(59) |
342 | |||||||||||||||||||||||
|
Technology |
76 |
71 |
41 |
44 |
232 |
76 |
57 |
45 |
65 |
243 | |||||||||||||||||||||||
|
Other |
(4) |
6 |
1 |
14 |
17 |
2 |
(2) |
13 |
(26) |
(13) | |||||||||||||||||||||||
|
Continuing Operations |
$ |
1,668 |
$ |
1,941 |
$ |
2,035 |
$ |
1,406 |
$ |
7,050 |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 | |||||||||||||
|
Capital, turnarounds and IT deferred spending: |
|||||||||||||||||||||||||||||||||
|
Olefins & Polyolefins - Americas |
$ |
231 |
$ |
306 |
$ |
208 |
$ |
167 |
$ |
912 |
$ |
149 |
$ |
140 |
$ |
159 |
$ |
220 |
$ |
668 | |||||||||||||
|
Olefins & Polyolefins - EAI |
33 |
27 |
45 |
86 |
191 |
38 |
27 |
49 |
72 |
186 | |||||||||||||||||||||||
|
Intermediates & Derivatives |
45 |
52 |
50 |
94 |
241 |
76 |
76 |
135 |
154 |
441 | |||||||||||||||||||||||
|
Refining |
32 |
20 |
27 |
44 |
123 |
33 |
28 |
23 |
24 |
108 | |||||||||||||||||||||||
|
Technology |
2 |
6 |
6 |
11 |
25 |
6 |
3 |
7 |
8 |
24 | |||||||||||||||||||||||
|
Other |
- - |
4 |
2 |
1 |
7 |
4 |
4 |
- - |
5 |
13 | |||||||||||||||||||||||
|
Continuing Operations |
$ |
343 |
$ |
415 |
$ |
338 |
$ |
403 |
$ |
1,499 |
$ |
306 |
$ |
278 |
$ |
373 |
$ |
483 |
$ |
1,440 | |||||||||||||
|
(a) |
EBITDA as presented herein includes the impacts of pre-tax LCM charges of $45 million and $715 million in the third and fourth quarters of 2014, respectively. EBITDA includes pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. 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 |
Q4 |
YTD | |||||||||||||||||||||||
|
Net income (a) |
$ |
944 |
$ |
1,176 |
$ |
1,257 |
$ |
791 |
$ |
4,168 |
$ |
1,164 |
$ |
1,329 |
$ |
1,186 |
$ |
795 |
$ |
4,474 | |||||||||||||
|
(Income) loss from discontinued operations, net of tax |
(1) |
(3) |
3 |
5 |
4 |
3 |
(3) |
3 |
2 |
5 | |||||||||||||||||||||||
|
Income from continuing operations(a) |
943 |
1,173 |
1,260 |
796 |
4,172 |
1,167 |
1,326 |
1,189 |
797 |
4,479 | |||||||||||||||||||||||
|
Provision for income taxes |
383 |
425 |
434 |
298 |
1,540 |
440 |
541 |
487 |
262 |
1,730 | |||||||||||||||||||||||
|
Depreciation and amortization |
256 |
254 |
262 |
247 |
1,019 |
287 |
247 |
248 |
265 |
1,047 | |||||||||||||||||||||||
|
Interest expense, net |
86 |
89 |
79 |
65 |
319 |
58 |
72 |
77 |
70 |
277 | |||||||||||||||||||||||
|
EBITDA(b) |
$ |
1,668 |
$ |
1,941 |
$ |
2,035 |
$ |
1,406 |
$ |
7,050 |
$ |
1,952 |
$ |
2,186 |
$ |
2,001 |
$ |
1,394 |
$ |
7,533 | |||||||||||||
|
(a) |
Amounts presented herein include after-tax LCM charges of $28 million and $455 million in the third and fourth quarters of 2014, respectively. The impacts of after-tax LCM charges were $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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 and $715 million in the third and fourth quarters of 2014, respectively. EBITDA includes impacts of pre-tax LCM charges of $92 million, $181 million and $284 million in the first, third and fourth quarters of 2015, respectively. 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 |
Q4 |
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 |
2,391 |
9,684 | ||||||||||||||
|
Propylene produced |
611 |
648 |
559 |
719 |
2,537 |
805 |
740 |
697 |
798 |
3,040 | ||||||||||||||
|
Polyethylene sold |
1,517 |
1,363 |
1,603 |
1,451 |
5,934 |
1,473 |
1,575 |
1,577 |
1,578 |
6,203 | ||||||||||||||
|
Polypropylene sold |
627 |
605 |
681 |
592 |
2,505 |
627 |
698 |
662 |
606 |
2,593 | ||||||||||||||
|
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 |
42.16 |
48.71 | ||||||||||||||
|
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 |
43.53 |
52.36 | ||||||||||||||
|
Natural gas (USD per million BTUs) |
5.01 |
4.74 |
4.19 |
4.09 |
4.51 |
2.76 |
2.76 |
2.72 |
2.11 |
2.57 | ||||||||||||||
|
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 |
10.9 |
10.1 | ||||||||||||||
|
U.S. ethylene (cents/pound) |
48.3 |
47.2 |
51.8 |
44.8 |
48.0 |
34.8 |
34.2 |
30.3 |
27.5 |
31.7 | ||||||||||||||
|
U.S. polyethylene [high density] (cents/pound) |
76.3 |
77.0 |
78.0 |
76.7 |
77.0 |
65.7 |
67.3 |
64.3 |
57.0 |
63.6 | ||||||||||||||
|
U.S. propylene (cents/pound) |
73.3 |
69.7 |
70.8 |
69.8 |
70.9 |
49.7 |
41.7 |
33.2 |
31.3 |
39.0 | ||||||||||||||
|
U.S. polypropylene [homopolymer] (cents/pound) |
88.3 |
84.7 |
86.3 |
85.8 |
86.3 |
67.7 |
61.7 |
59.3 |
62.7 |
62.8 | ||||||||||||||
|
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 |
978 |
3,976 | ||||||||||||||
|
Propylene produced |
582 |
617 |
629 |
618 |
2,446 |
600 |
632 |
575 |
575 |
2,382 | ||||||||||||||
|
Polyethylene sold |
1,275 |
1,363 |
1,284 |
1,254 |
5,176 |
1,533 |
1,360 |
1,304 |
1,379 |
5,576 | ||||||||||||||
|
Polypropylene sold |
1,509 |
1,707 |
1,633 |
1,561 |
6,410 |
1,817 |
1,529 |
1,673 |
1,757 |
6,776 | ||||||||||||||
|
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 |
22.5 |
20.8 | ||||||||||||||
|
Western Europe ethylene |
54.7 |
52.8 |
54.1 |
48.7 |
52.6 |
39.3 |
47.1 |
46.6 |
41.4 |
43.6 | ||||||||||||||
|
Western Europe polyethylene [high density] |
56.1 |
54.8 |
55.4 |
51.5 |
54.5 |
45.2 |
60.6 |
61.2 |
56.9 |
56.0 | ||||||||||||||
|
Western Europe propylene |
51.3 |
52.2 |
51.9 |
46.5 |
50.5 |
37.1 |
44.4 |
41.7 |
31.0 |
38.5 | ||||||||||||||
|
Western Europe polypropylene [homopolymer] |
59.9 |
61.3 |
61.4 |
57.0 |
59.9 |
49.8 |
62.5 |
59.3 |
47.4 |
54.7 | ||||||||||||||
|
Intermediates and Derivatives |
||||||||||||||||||||||||
|
Volumes (million pounds) |
||||||||||||||||||||||||
|
Propylene oxide and derivatives |
772 |
726 |
768 |
781 |
3,047 |
870 |
751 |
697 |
682 |
3,000 | ||||||||||||||
|
Ethylene oxide and derivatives |
262 |
319 |
211 |
226 |
1,018 |
268 |
312 |
282 |
237 |
1,099 | ||||||||||||||
|
Styrene monomer |
683 |
870 |
933 |
870 |
3,356 |
903 |
735 |
904 |
889 |
3,431 | ||||||||||||||
|
Acetyls |
683 |
592 |
613 |
619 |
2,507 |
547 |
810 |
733 |
623 |
2,713 | ||||||||||||||
|
TBA Intermediates |
416 |
391 |
461 |
384 |
1,652 |
433 |
321 |
421 |
371 |
1,546 | ||||||||||||||
|
Volumes (million gallons) |
||||||||||||||||||||||||
|
MTBE/ETBE |
188 |
266 |
245 |
216 |
915 |
229 |
299 |
268 |
258 |
1,054 | ||||||||||||||
|
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 |
49.8 |
85.1 | ||||||||||||||
|
Refining |
||||||||||||||||||||||||
|
Volumes (thousands of barrels per day) |
||||||||||||||||||||||||
|
Heavy crude oil processing rate |
247 |
257 |
264 |
266 |
259 |
241 |
255 |
249 |
206 |
238 | ||||||||||||||
|
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 |
9.44 |
14.04 | ||||||||||||||
|
Light crude oil - Maya differential |
15.08 |
9.72 |
10.15 |
9.22 |
11.11 |
8.72 |
7.56 |
7.48 |
9.11 |
8.26 | ||||||||||||||
|
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 |
Q4 |
YTD | |||||||||||||||||||||||
|
Sales and other operating revenues |
$ |
11,135 |
$ |
12,117 |
$ |
12,066 |
$ |
10,290 |
$ |
45,608 |
$ |
8,185 |
$ |
9,145 |
$ |
8,334 |
$ |
7,071 |
$ |
32,735 | |||||||||||||
|
Cost of sales(a) |
9,577 |
10,255 |
10,118 |
8,989 |
38,939 |
6,379 |
7,047 |
6,465 |
5,792 |
25,683 | |||||||||||||||||||||||
|
Selling, general and administrative expenses |
186 |
215 |
211 |
194 |
806 |
205 |
228 |
194 |
201 |
828 | |||||||||||||||||||||||
|
Research and development expenses |
32 |
34 |
31 |
30 |
127 |
26 |
25 |
25 |
26 |
102 | |||||||||||||||||||||||
|
Operating income(a) |
1,340 |
1,613 |
1,706 |
1,077 |
5,736 |
1,575 |
1,845 |
1,650 |
1,052 |
6,122 | |||||||||||||||||||||||
|
Income from equity investments |
61 |
68 |
64 |
64 |
257 |
69 |
90 |
93 |
87 |
339 | |||||||||||||||||||||||
|
Interest expense, net |
(86) |
(89) |
(79) |
(65) |
(319) |
(58) |
(72) |
(77) |
(70) |
(277) | |||||||||||||||||||||||
|
Other income, net |
11 |
6 |
3 |
18 |
38 |
21 |
4 |
10 |
(10) |
25 | |||||||||||||||||||||||
|
Income from continuing operations before income taxes(a) |
1,326 |
1,598 |
1,694 |
1,094 |
5,712 |
1,607 |
1,867 |
1,676 |
1,059 |
6,209 | |||||||||||||||||||||||
|
Provision for income taxes |
383 |
425 |
434 |
298 |
1,540 |
440 |
541 |
487 |
262 |
1,730 | |||||||||||||||||||||||
|
Income from continuing operations(b) |
943 |
1,173 |
1,260 |
796 |
4,172 |
1,167 |
1,326 |
1,189 |
797 |
4,479 | |||||||||||||||||||||||
|
Income (loss) from discontinued operations, net of tax |
1 |
3 |
(3) |
(5) |
(4) |
(3) |
3 |
(3) |
(2) |
(5) | |||||||||||||||||||||||
|
Net income(b) |
944 |
1,176 |
1,257 |
791 |
4,168 |
1,164 |
1,329 |
1,186 |
795 |
4,474 | |||||||||||||||||||||||
|
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 |
$ |
795 |
$ |
4,476 | |||||||||||||
|
(a) |
Amounts presented herein include pre-tax LCM charges of $45 million and $715 million in the third and fourth quarters of 2014, respectively. The impacts of pre-tax LCM charges were $92 million, $181 million and $284 million in the first, third and fourth quarters of 2015, respectively. 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 and $455 million in the third and fourth quarters of 2014, respectively. The impacts of after tax LCM were $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. 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 |
Q4 |
YTD | |||||||||||||||||||||
|
Pretax charges (benefits): |
|||||||||||||||||||||||||||||||
|
Settlement of environmental indemnification agreement |
$ |
(52) |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
(52) |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
$ |
- - | |||||||||||
|
Lower of cost or market inventory adjustment |
- - |
- - |
45 |
715 |
760 |
92 |
(9) |
181 |
284 |
548 | |||||||||||||||||||||
|
Emission allowance credits, amortization |
- - |
- - |
- - |
- - |
- - |
35 |
- - |
- - |
- - |
35 | |||||||||||||||||||||
|
Total pretax charges (benefits) |
(52) |
- - |
45 |
715 |
708 |
127 |
(9) |
181 |
284 |
583 | |||||||||||||||||||||
|
Provision for (benefit from) income tax related to these items |
- - |
- - |
(17) |
(260) |
(277) |
(47) |
3 |
(67) |
(99) |
(210) | |||||||||||||||||||||
|
After-tax effect of net charges (benefits) |
$ |
(52) |
$ |
- - |
$ |
28 |
$ |
455 |
$ |
431 |
$ |
80 |
$ |
(6) |
$ |
114 |
$ |
185 |
$ |
373 | |||||||||||
|
Effect on diluted earnings per share |
$ |
0.09 |
$ |
- - |
$ |
(0.05) |
$ |
(0.91) |
$ |
(0.82) |
$ |
(0.17) |
$ |
0.02 |
$ |
(0.25) |
$ |
(0.42) |
$ |
(0.80) | |||||||||||
|
Table 12 - Unaudited Cash Flow Information | |||||||||||||||||||||||||||||||||
|
2014 |
2015 | ||||||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Q1 |
Q2 |
Q3 |
Q4 |
YTD | |||||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
801 |
$ |
1,797 |
$ |
1,434 |
$ |
2,016 |
$ |
6,048 |
$ |
1,468 |
$ |
1,446 |
$ |
1,768 |
$ |
1,160 |
$ |
5,842 | |||||||||||||
|
Net cash provided by (used in) investing activities |
(2,011) |
(246) |
(638) |
(636) |
(3,531) |
(443) |
(727) |
67 |
52 |
(1,051) | |||||||||||||||||||||||
|
Net cash used in financing activities |
(550) |
(2,217) |
(1,621) |
(1,519) |
(5,907) |
(401) |
(1,021) |
(1,684) |
(1,744) |
(4,850) | |||||||||||||||||||||||
|
Table 13 - Unaudited Balance Sheet Information | |||||||||||||||||||||||||||||
|
(Millions of U.S. dollars) |
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
June 30, |
September 30, |
December 31, | |||||||||||||||||||||
|
2014 |
2014 |
2014 |
2014 |
2015 |
2015 |
2015 |
2015 | ||||||||||||||||||||||
|
Cash and cash equivalents |
$ |
2,702 |
$ |
2,030 |
$ |
1,185 |
$ |
1,031 |
$ |
1,616 |
$ |
1,325 |
$ |
1,474 |
$ |
924 | |||||||||||||
|
Restricted cash |
3 |
2 |
- - |
2 |
2 |
3 |
1 |
7 | |||||||||||||||||||||
|
Short-term investments |
1,402 |
1,299 |
1,544 |
1,593 |
1,478 |
1,989 |
1,602 |
1,064 | |||||||||||||||||||||
|
Accounts receivable, net |
4,141 |
4,264 |
4,105 |
3,448 |
3,089 |
3,373 |
2,924 |
2,517 | |||||||||||||||||||||
|
Inventories |
5,589 |
5,326 |
5,359 |
4,517 |
4,267 |
4,179 |
4,138 |
4,051 | |||||||||||||||||||||
|
Prepaid expenses and other current assets(a) |
1,156 |
784 |
739 |
1,054 |
1,195 |
1,121 |
1,059 |
1,226 | |||||||||||||||||||||
|
Total current assets |
14,993 |
13,705 |
12,932 |
11,645 |
11,647 |
11,990 |
11,198 |
9,789 | |||||||||||||||||||||
|
Property, plant and equipment, net |
8,556 |
8,740 |
8,600 |
8,758 |
8,430 |
8,636 |
8,793 |
8,991 | |||||||||||||||||||||
|
Investments and long-term receivables: |
|||||||||||||||||||||||||||||
|
Investment in PO joint ventures |
424 |
418 |
397 |
384 |
373 |
357 |
357 |
397 | |||||||||||||||||||||
|
Equity investments |
1,693 |
1,702 |
1,690 |
1,636 |
1,581 |
1,612 |
1,602 |
1,608 | |||||||||||||||||||||
|
Other investments and long-term receivables |
62 |
58 |
54 |
44 |
38 |
126 |
125 |
122 | |||||||||||||||||||||
|
Goodwill |
605 |
602 |
576 |
566 |
533 |
543 |
543 |
536 | |||||||||||||||||||||
|
Intangible assets, net |
870 |
838 |
799 |
769 |
695 |
671 |
644 |
640 | |||||||||||||||||||||
|
Other assets (a)(b) |
556 |
528 |
520 |
419 |
637 |
600 |
605 |
674 | |||||||||||||||||||||
|
Total assets |
$ |
27,759 |
$ |
26,591 |
$ |
25,568 |
$ |
24,221 |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 | |||||||||||||
|
Current maturities of long-term debt |
$ |
3 |
$ |
3 |
$ |
2 |
$ |
4 |
$ |
4 |
$ |
3 |
$ |
3 |
$ |
4 | |||||||||||||
|
Short-term debt |
58 |
55 |
56 |
346 |
514 |
582 |
573 |
353 | |||||||||||||||||||||
|
Accounts payable |
3,642 |
3,690 |
3,431 |
3,064 |
2,631 |
2,755 |
2,450 |
2,182 | |||||||||||||||||||||
|
Accrued liabilities |
1,477 |
1,310 |
1,460 |
1,554 |
1,482 |
1,455 |
1,784 |
1,810 | |||||||||||||||||||||
|
Deferred income taxes(a) |
540 |
570 |
685 |
469 |
429 |
434 |
383 |
- - | |||||||||||||||||||||
|
Total current liabilities |
5,720 |
5,628 |
5,634 |
5,437 |
5,060 |
5,229 |
5,193 |
4,349 | |||||||||||||||||||||
|
Long-term debt (b) |
6,698 |
6,701 |
6,690 |
6,695 |
7,677 |
7,658 |
7,674 |
7,671 | |||||||||||||||||||||
|
Other liabilities |
1,838 |
1,851 |
1,795 |
2,122 |
2,038 |
2,063 |
2,044 |
2,036 | |||||||||||||||||||||
|
Deferred income taxes(a) |
1,677 |
1,623 |
1,574 |
1,623 |
1,653 |
1,635 |
1,604 |
2,127 | |||||||||||||||||||||
|
Stockholders' equity |
11,791 |
10,753 |
9,843 |
8,314 |
7,478 |
7,927 |
7,328 |
6,550 | |||||||||||||||||||||
|
Non-controlling interests |
35 |
35 |
32 |
30 |
28 |
23 |
24 |
24 | |||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ |
27,759 |
$ |
26,591 |
$ |
25,568 |
$ |
24,221 |
$ |
23,934 |
$ |
24,535 |
$ |
23,867 |
$ |
22,757 | |||||||||||||
|
(a) |
Our prospective adoption of ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, in December 2015 resulted in the classification of our deferred taxes as of December 2015 as noncurrent. | ||||||||||||||||||||||||||||
|
(b) |
In December 2015, we adopted ASU 2015-03, Interest–Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires the presentation of deferred issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the debt liability. In December 2015, we also adopted, ASU 2015-15, Interest–Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which allows the classification of debt issuance costs related to line-of-credit arrangements as an asset to be amortized over the term of the agreement. Accordingly, we have revised our presentation of long term debt for each period presented. | ||||||||||||||||||||||||||||
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell Industries
Article Date
2/2/2016LyondellBasell to Discuss Fourth-Quarter Results on Tuesday, Feb. 2, 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Jan. 19, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB) will announce fourth-quarter financial results before the U.S. market opens on Tuesday, Feb. 2, to be followed by a webcast and teleconference to discuss results at 11 a.m. Eastern Time.
Teleconference and Webcast Details:
Tuesday, Feb. 2, 2016
11 a.m. Eastern Time
Hosted by Doug Pike, Vice President, Investor Relations
Access the webcast 10 to 15 minutes prior to the call at www.lyb.com/earnings
Toll-Free Teleconference Dial-In Numbers:
United States: 888-677-1826
United Kingdom: 0800-279-9630
Netherlands: 0800-343-4364
Passcode: 4843334
A complete listing of toll-free numbers by country can be found at www.lyb.com/teleconference
Presentation Slides:
Presentation slides will be available at the time of the teleconference and afterward at www.lyb.com/earnings.
Replay Information:
A replay of the call will be available from noon Eastern Time, Feb. 2, until 1:00 PM Eastern Time, Mar. 2, 2016.
The replay dial-in numbers are:
Toll Free: 866-465-1311
Toll: 203-369-1427
Passcode: 22160
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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
1/19/2016LyondellBasell Announces Executive Leadership Changes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON and LONDON, Jan. 14, 2016 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced several senior leadership changes.
After four years with LyondellBasell, Timothy D. Roberts, executive vice president of global Olefins and Polyolefins has announced his decision to leave the company. Mr. Roberts will be succeeded by Daniel M. Coombs who joined LyondellBasell last year as executive vice president of global Intermediates and Derivatives, Technology and Procurement. Mr. Coombs brings 30 years of experience in petrochemicals, including leadership roles in commercial, manufacturing and joint ventures in the Middle East.
"We will miss Tim's leadership and energy. We thank him for his significant contributions and wish him all the best in his future endeavors," said Bob Patel, LyondellBasell's CEO. "I feel confident that our depth of talent and prior succession planning allows for a smooth transition and continued industry-leading performance."
James D. Guilfoyle, currently senior vice president, global Intermediates and Derivatives, will continue in his current role while assuming additional responsibilities for the company's supply chain activities. For the past year, Mr. Guilfoyle has worked closely with Mr. Coombs leading the company's global Intermediates and Derivatives business.
"As part of our strong leadership team, Dan and Jim have made a tremendous positive impact on our business," said Mr. Patel. "As we continue to execute our growth program, both Dan and Jim have the business acumen, industry knowledge and leadership skills necessary to take their functions to the next level."
Mr. Coombs and Mr. Guilfoyle will report to Mr. Patel.
As part of this transition, LyondellBasell will further expand its regional leadership by appointing Paul Augustowski as senior vice president of Olefins and Polyolefins in the Americas. Mr. Augustowski has over two decades of experience in Polyolefins, in the U.S. and Europe. Richard Roudeix will continue as the European Olefins and Polyolefins business leader. Mr. Augustowski and Mr. Roudeix will report to Mr. Coombs.
About Daniel M. Coombs
Prior to joining LyondellBasell, Mr. Coombs held several senior executive roles with Chevron Phillips Chemical Company including senior vice president for Specialties, Aromatics and Styrenics, vice president of Corporate Planning and Development, and vice president and deputy general manager for Qatar Chemical Company Limited. Mr. Coombs holds a Bachelor of Science in Chemical Engineering from The Ohio State University, a Master of Science in Chemical Engineering from the University of Tulsa and an MBA from Texas A&M University.
About James D. Guilfoyle
Mr. Guilfoyle joined a LyondellBasell predecessor company in 1993 as a chemical engineer at the La Porte, Texas Olefins Plant. Prior to assuming his current role, he held a number of technical and managerial positions within the Olefins and Polyolefins business including vice president of Global Propylene Oxide and Co-Products. Mr. Guilfoyle holds a Bachelor of Science in chemical engineering from the University of Cincinnati, a Master of Science in chemical engineering and an MBA from the University of Houston.
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.
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
1/14/2016LyondellBasell Holiday Donation Fulfills Local First Responder "Wish Lists"
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Dec. 17, 2015 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of the world's largest plastics, chemical and refining companies, today announced a holiday donation of $70,000 that will be used to support the purchase of additional safety equipment that is on the "wish lists" of local police and firefighting agencies.
"At the holidays, we are called to focus on the needs of others. The Houston police and firefighters work around the clock, regardless of weather conditions, often sacrificing their own holiday celebrations with family and friends to keep us safe," said Bob Patel, CEO and chairman of the management board of LyondellBasell. "Because safety is at the core of our culture, we wanted to purchase needed safety equipment on these agencies' 'wish lists.' In doing so, our goal is to support our community, not just during the holidays, but every day."
Surrounded by several hundred employees and joined by Houston Fire Chief Rodney West and Houston Police Chief Charles McClelland, Patel presented $35,000 checks to the Fire Fighters Foundation of Houston and the Houston Police Foundation, respectively.
Fire Fighters Foundation of Houston Grant
The Fire Fighters Foundation of Houston will use the donation to support the purchase of three additional rescue boats which can be used during search and rescue missions, like those conducted during the 2015 Memorial Day floods.
"When responding to incidents, fire fighters require specialized equipment, not always covered in our operating budget," said Houston Fire Chief Rodney West. "LyondellBasell's generous gift to the Fire Fighters Foundation of Houston will be used for equipment that could literally mean the difference between life and death. This is a holiday gift that will keep on giving."
Police Foundation Grant
The Houston Police Foundation will use the donation to purchase tactical vests worn by officers in the field.
"The safety of our officers is critical to keeping our city a safe place to live and work," said Houston Police Chief Charles McClelland. "LyondellBasell's very generous support of the Houston Police Foundation will not only help our officers do their day jobs, but more importantly, to return home safely every night."
In addition to these specific gifts, LyondellBasell was recently recognized as one of the top 10 corporate fundraisers by the United Way of Greater Houston; is one of a small group of companies nationally to be awarded The U.S. President's Volunteer Service Award by Junior Achievement for over 10,000 volunteer hours; and has provided over $1.1 million in grants to local education and charitable organizations in 2015.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies, with more than 4,000 employees in the greater Houston area. The company 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. More information about LyondellBasell can be found at www.lyb.com.
Photo - http://photos.prnewswire.com/prnh/20151217/297122
Photo - http://photos.prnewswire.com/prnh/20151217/297123
Logo - http://photos.prnewswire.com/prnh/20140416/75605
SOURCE LyondellBasell
Article Date
12/18/2015Projects & Assets
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