ROTTERDAM, Netherlands,
Feb. 10, 2012 /PRNewswire/ --
Full Year 2011
- $2,140 million net income or
$3.74 diluted earnings per share.
Full-year 2011 net income negatively impacted by $567 million, or $0.97 diluted earnings per share, of charges
relating primarily to refinancing and the Berre refinery
- EBITDA of $5,279 million,
includes $155 million of charges
relating primarily to the Berre refinery
- Strong performance led by advantaged positions in U.S.
olefins and refining
- Paid $2.9 billion in
dividends
Fourth Quarter 2011
- $218 million net loss or
$0.38 diluted loss per share.
Fourth quarter net loss negatively impacted by $448 million, or $0.79 diluted loss per share, of charges relating
primarily to refinancing and the Berre refinery
- Fourth-quarter EBITDA of $536
million negatively impacted by significantly weaker refining
margins, with Maya 2-1-1 spreads declining ~$11 per barrel from third quarter 2011, and
$139 million of charges relating
primarily to the Berre refinery
- Year-end economic slowdown which led to reduced ethylene
industry margins further negatively impacted results
- Positive momentum seen in early 2012 in U.S. olefins and
refining industries
LyondellBasell Industries (NYSE: LYB) today announced a net loss
for the fourth quarter 2011 of $218
million, or $0.38 per share.
Fourth-quarter 2011 EBITDA was $536
million. For the full year 2011, net income was
$2,140 million, or $3.74 per share. The fourth-quarter and
full-year results include the impacts of $431 million included in interest expense related
to the company's refinancings and $136
million of charges associated with the suspension of
operations at the Berre refinery.
Comparisons with the prior quarter, fourth quarter 2010 and full
year 2010 are available in the following table.
|
|
Table 1 - Earnings
Summary(a)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
|
Millions of U.S. dollars (except
share data)
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Sales and other operating
revenues
|
$11,444
|
$13,297
|
$10,610
|
$51,035
|
$41,151
|
|
|
Net income (loss)(b)
(c)
|
(218)
|
895
|
766
|
2,140
|
10,084
|
|
|
Diluted earnings (loss) per
share (U.S. dollars)
|
(0.38)
|
1.51
|
1.34
|
3.74
|
N/A
|
|
|
Diluted share count (millions)
|
572
|
575
|
566
|
572
|
N/A
|
|
|
EBITDA(d)
|
536
|
1,788
|
1,085
|
5,279
|
3,993
|
|
|
EBITDA excluding LCM inventory
valuation
|
|
|
|
|
|
|
|
|
adjustments
|
536
|
1,788
|
762
|
5,279
|
4,035
|
|
|
|
|
|
|
|
|
|
|
|
(a) For all periods prior
to May 1, 2010, EBITDA is calculated using a current cost inventory
basis. For periods on and after
|
|
|
May 1, 2010, net income and
EBITDA are calculated using the LIFO method of inventory
accounting.
|
|
|
(b) Includes net income
(loss) attributable to non-controlling interests. See Table
11.
|
|
|
(c) The twelve months
ended December 31, 2010 includes an $8,640 million after-tax gain
on the discharge of liabilities subject
|
|
|
to compromise related to
emergence from Chapter 11 and fresh-start accounting adjustments.
|
|
|
(d) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
For 2011, LyondellBasell reported improved results across the
majority of its portfolio, most notably in North American olefins
and at the Houston refinery, both
of which benefit from advantaged feedstocks.
The fourth quarter was negatively impacted by lower industry
margins, particularly in refining, a year-end slowdown, charges
primarily related to the suspension of operations at the Berre
refinery and costs related to refinancing activities.
Results reflect the following charges and benefits:
|
|
Table 2 - Charges (Benefits)
Included in Net Income
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
Millions of U.S. dollars (except
share data)
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
Pretax charges
(benefits):
|
|
|
|
|
|
|
|
Charges and premiums related
to
|
|
|
|
|
|
|
|
|
repayment of debt
|
$431
|
$ -
|
$27
|
$443
|
$27
|
|
|
Berre refinery closure
costs
|
136
|
-
|
-
|
136
|
-
|
|
|
Reorganization items
|
15
|
-
|
2
|
45
|
(26)
|
|
|
Gain on discharge of liabilities
subject
|
|
|
|
|
|
|
|
|
to compromise
|
-
|
-
|
-
|
-
|
(13,617)
|
|
|
Change in net assets resulting
from
|
|
|
|
|
|
|
|
|
application of fresh-start
accounting
|
-
|
-
|
-
|
-
|
6,278
|
|
|
Corporate
restructurings
|
18
|
14
|
-
|
93
|
-
|
|
|
Impairments
|
8
|
26
|
28
|
52
|
37
|
|
|
Sale of precious
metals
|
-
|
-
|
-
|
(41)
|
-
|
|
|
Warrants - mark to
market
|
6
|
(22)
|
55
|
37
|
114
|
|
|
Insurance settlement
|
-
|
-
|
-
|
(34)
|
-
|
|
|
Environmental
accruals
|
-
|
-
|
-
|
16
|
-
|
|
|
Settlement related to Houston
refinery
|
|
|
|
|
|
|
|
|
crane incident
|
(15)
|
-
|
-
|
(15)
|
-
|
|
|
Asset retirement
obligation
|
-
|
10
|
-
|
10
|
-
|
|
|
Gain on sale of Flavors &
Fragrance
|
|
|
|
|
|
|
|
|
business
|
-
|
-
|
(64)
|
-
|
(64)
|
|
|
Lower of cost or market
inventory adjustment
|
-
|
-
|
(323)
|
-
|
42
|
|
|
Charge related to dispute over
environmental
|
|
|
|
|
|
|
|
|
indemnity
|
-
|
-
|
-
|
-
|
64
|
|
Total pretax charges
(benefits)
|
599
|
28
|
(275)
|
742
|
(7,145)
|
|
Provision for (benefit from)
income tax related
|
|
|
|
|
|
|
|
to these items
|
(151)
|
(14)
|
124
|
(175)
|
(1,279)
|
|
After-tax effect of net charges
(credits)
|
$448
|
$14
|
($151)
|
$567
|
($8,424)
|
|
Effect on diluted earnings per
share
|
$ (0.79)
|
$ (0.03)
|
$0.27
|
$ (0.97)
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
"The fourth quarter was a period of global economic slowdown and
our results were impacted by broader trends," said Jim Gallogly, LyondellBasell Chief Executive
Officer. "Customers responded to this slowdown by destocking
inventory and delaying orders, which negatively impacted volumes in
Europe and Asia and margins globally. Refining
margins were particularly weak. Although overall results for
the fourth quarter declined, we expect our strategy of focusing on
the basics and running our assets safely and efficiently will
continue to deliver value to our shareholders," Gallogly said.
"Despite a weak fourth quarter, 2011 was a strong year for
LyondellBasell. Exclusive of a number of costs incurred to
improve the company, including costs related to restructuring and
refinancing our capital structure, full-year adjusted EBITDA was
slightly over $5.4 billion and
adjusted net income was over $2.7
billion, or $4.71 per adjusted
diluted share. We returned $2.9
billion to shareholders through dividends. We also
defined our plans for future growth, which we communicated at our
December Investor Day. I am also extremely proud of all who
work at our facilities as we achieved a record year in health,
safety and environmental performance," Gallogly said.
OUTLOOK
Commenting on the near-term outlook, Gallogly said, "We expect
overall first-quarter economic activity to remain slow in
Europe and Asia for certain of our businesses. In
recent weeks, we have seen indications that our market environment
is improving in the U.S. Ethylene chain margins have
increased from fourth-quarter lows as ethane prices have declined
and co-products and polyolefin prices have increased. In
refining, the benchmark Maya 2-1-1 crack spread has improved,
benefiting our Houston refinery.
Importantly, certain underlying fundamentals that have supported
our business remain intact. A low ratio of U.S. natural gas
to crude oil prices creates a favorable condition for our U.S.
operations. Our differentiated businesses such as our
propylene oxide, polypropylene compounding, and our Saudi and
certain Asian joint ventures remain on a solid path," added
Gallogly.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING
SEGMENT
LyondellBasell operates in five business segments: 1) Olefins
& Polyolefins – Americas; 2) Olefins & Polyolefins –
Europe, Asia, International (EAI); 3) Intermediates
& Derivatives; 4) Refining & Oxyfuels; and 5)
Technology.
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.
|
|
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|
|
|
|
|
|
|
Table 3 - O&P–Americas
Financial Overview(a)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
|
Millions of U.S.
dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Operating income
|
$328
|
$599
|
$446
|
$1,857
|
$1,363
|
|
|
EBITDA
|
407
|
673
|
505
|
2,142
|
1,685
|
|
|
EBITDA excluding LCM
charges
|
407
|
673
|
342
|
2,142
|
1,719
|
|
|
|
|
|
|
|
|
|
|
|
(a) For all periods prior
to May 1, 2010, operating income and EBITDA are calculated on a
current cost inventory basis. For
|
|
|
periods on and after May 1,
2010, operating income and EBITDA are calculated using the LIFO
method of inventory accounting.
|
|
|
See Table 8.
|
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|
|
|
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|
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|
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|
Three months ended December 31,
2011 versus three months ended September 30, 2011 – O&P-Americas segment
EBITDA decreased $266 million versus
the third quarter 2011. Olefins profitability declined
approximately $250 million from the
prior period primarily due to reduced margins. Compared to
the third quarter, average ethylene sales price declined
2 cents per pound while the company's
average cost-of-ethylene-production metric increased approximately
11 cents per pound. The
increase in the cost-of-ethylene-production was driven by lower
co-product pricing. Ethylene production volume was unchanged
compared to the previous quarter. Polyethylene (PE) results
declined approximately $30 million
primarily as a result of lower sales prices. Polypropylene
(PP) profits declined approximately $20
million from the third quarter 2011 primarily due to lower
margins. Overall, polyolefin sales volumes were relatively
unchanged in the fourth quarter compared to the third quarter.
Three months ended December 31,
2011 versus three months ended December 31, 2010 – Excluding a $163 million non-cash Lower of Cost or Market
(LCM) gain in the fourth quarter 2010, O&P-Americas results
increased $65 million versus the
fourth quarter 2010. Olefins results increased approximately
$95 million compared to the prior
year period largely as a result of significantly improved margins.
This increase was partially offset by PE results which
declined approximately $75 million
compared to the fourth quarter 2010 as a result of lower margins
caused by higher ethylene prices. PP results declined
approximately $10 million compared to
the fourth quarter 2010 due to lower margins.
Year ended December 31, 2011
versus year ended December 31,
2010 – Excluding a non-cash 2010 LCM inventory charge of
$34 million, O&P – Americas
results improved $423 million versus
2010. Ethylene margins improved as the Company's average
ethylene sales price increased approximately 8 cents per pound which more than offset an
approximate 2 cents per pound
increase in the Company's cost-of-ethylene-production metric.
Olefins results increased approximately $380 million compared to the prior year.
Polyolefin results were approximately $125 million lower in 2011 than in 2010 as
polyolefin price increases lagged ethylene and propylene prices,
compressing 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 4 - O&P–EAI Financial
Overview(a)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
|
Millions of U.S.
dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Operating income
(loss)
|
($55)
|
$144
|
$66
|
$475
|
$526
|
|
|
EBITDA
|
62
|
261
|
125
|
931
|
818
|
|
|
EBITDA excluding LCM
charges
|
62
|
261
|
115
|
931
|
818
|
|
|
|
|
|
|
|
|
|
|
|
(a) For all periods prior
to May 1, 2010, operating income and EBITDA are calculated on a
current cost inventory basis. For
|
|
|
periods on and after May 1,
2010, operating income and EBITDA are calculated using the LIFO
method of inventory accounting.
|
|
|
See Table 8.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2011 versus three months ended September 30, 2011 – O&P-EAI segment
EBITDA decreased $199 million versus
the third quarter 2011. Olefins results declined
approximately $135 million from the
third quarter 2011 due to lower cracker margins and volumes.
Polyolefin results declined approximately $50 million from the prior period primarily due
to lower polyethylene margins. Polypropylene compounds
results declined approximately $10
million from the third quarter 2011. Dividends from
joint ventures totaled $44 million
during the fourth quarter 2011.
Three months ended December 31,
2011 versus three months ended December 31, 2010 – Excluding a $10 million fourth-quarter 2010 LCM gain, EBITDA
declined $53 million versus the
fourth quarter 2010. Olefins results were relatively
unchanged while polyethylene results declined approximately
$55 million compared to the prior
year period primarily as a result of lower margins.
Polypropylene EBITDA fell approximately $60 million compared to the prior year period due
to lower sales volumes and compressed margins. Polypropylene
compounding results improved slightly compared to the prior year.
Dividends from joint ventures increased approximately
$40 million.
Year ended December 31, 2011
versus year ended December 31,
2010 – EBITDA increased $113
million versus 2010. Improved olefins volumes and margins,
along with higher co-product prices, contributed to the improved
performance while combined polyethylene and polypropylene sales
declined 3%. Additionally, 2011 results benefited from
improved polypropylene compounding results and increased joint
venture dividends when compared to 2010.
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, and ethylene oxide and its derivatives.
|
|
Table 5 - I&D Financial
Overview(a)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
|
Millions of U.S.
dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Operating income
|
$134
|
$259
|
$196
|
$862
|
$669
|
|
|
EBITDA
|
173
|
297
|
228
|
1,054
|
851
|
|
|
EBITDA excluding LCM
charges
|
173
|
297
|
211
|
1,054
|
859
|
|
|
|
|
|
|
|
|
|
|
(a) For all periods prior
to May 1, 2010, operating income and EBITDA are calculated on a
current cost inventory basis. For
|
|
|
periods on and after May 1,
2010, operating income and EBITDA are calculated using the LIFO
method of inventory accounting.
|
|
|
See Table 8. I&D
results in Table 5 do not reflect the $64 million gain on the sale
of the Flavors & Fragrance business
|
|
|
on December 22, 2010. The
$64 million gain appears as "Income (loss) from discontinued
operations, net of tax" on the income
|
|
|
statement (Table 11).
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2011 versus three months ended September 30, 2011 – I&D segment EBITDA
decreased $124 million versus the
third quarter 2011. PO and PO derivatives results declined
versus the prior period due to the effects of planned maintenance
turnarounds and seasonal decreases in demand. Intermediates
profitability declined versus the third quarter primarily due to
planned maintenance turnarounds that negatively impacted acetyls
and TBA sales.
Three months ended December 31,
2011 versus three months ended December 31, 2010 –Excluding a $17 million non-cash LCM gain in the fourth
quarter 2010, I&D EBITDA decreased $38
million compared to the fourth quarter 2010.
Underlying PO and PO derivatives EBITDA decreased slightly
versus the prior year period due to the effects of a planned
maintenance outage and lower deicer sales from warmer seasonal
weather. A decline in PO and PO derivatives was offset by
increased ethylene oxide / ethylene glycol volumes and margins
compared to fourth quarter 2010.
Year ended December 31, 2011
versus year ended December 31,
2010 – Excluding an $8
million non-cash LCM charge in 2010, segment EBITDA
increased by $195 million versus
2010. PO and PO derivative margins improved primarily driven
by strong derivative results. Acetyls and ethylene glycol
volume and margin increases were the primary drivers for improved
Intermediates results. Full-year 2010 results include the
flavors and fragrance business, which was sold in the fourth
quarter 2010. The gain from the sale of the flavors and
fragrance business was not included in 2010 segment results.
Refining & Oxyfuels (R&O) – The primary products
of this segment include gasoline, diesel fuel, heating oil, jet
fuel, petrochemical raw materials, methyl tertiary butyl ether
(MTBE) and ethyl tertiary butyl ether (ETBE).
|
|
Table 6 - R&O Financial
Overview(a)
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
|
Millions of U.S.
dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Operating income
(loss)
|
($196)
|
$454
|
$144
|
$718
|
$142
|
|
|
EBITDA
|
(110)
|
519
|
212
|
972
|
452
|
|
|
EBITDA excluding LCM
charges
|
(110)
|
519
|
79
|
972
|
452
|
|
|
|
|
|
|
|
|
|
|
(a) For all periods prior
to May 1, 2010, operating income and EBITDA are calculated on a
current cost inventory basis. For
|
|
|
periods on and after May 1,
2010, operating income and EBITDA are calculated using the LIFO
method of inventory accounting.
|
|
|
See Table 8.
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2011 versus three months ended September 30, 2011 – Refining & Oxyfuels
segment EBITDA decreased $629 million
versus the third quarter 2011. The Houston refinery financial
performance declined approximately $410
million as the average industry benchmark margin declined
nearly $11 per barrel compared to the
previous quarter. Opportunities for purchasing crude oil
below the Maya crude oil benchmark that were available in the third
quarter were limited in the fourth quarter. Crude oil
throughput at the Houston refinery
decreased to 262,000 barrels per day primarily due to planned
maintenance outages. The Berre refinery continued to record a
loss, and results were impacted by a labor strike and weaker
refining margins. Results also include $136
million of charges related to the suspension of operations
at the refinery on Jan. 4, 2012.
Oxyfuels results experienced a decline of approximately
$65 million primarily related to
lower seasonal margins and volume.
Three months ended December 31,
2011 versus three months ended December 31, 2010 – Excluding a $133 million non-cash LCM gain in the fourth
quarter 2010, segment EBITDA decreased $189
million versus the fourth quarter 2010. At the
Houston refinery, EBITDA decreased
approximately $90 million versus the
prior year period. Results were driven by a lower industry
average benchmark margin offset by higher throughput volumes.
Compared to the prior year period, Berre refinery results
were negatively impacted by a labor strike, weaker refining margins
and $136 million of charges for the
suspension of operations. Oxyfuels results improved
approximately $40 million between the
periods mainly as a result of a stronger than typical seasonal
margins.
Year ended December 31, 2011
versus year ended December 31,
2010 – Segment EBITDA increased $520 million versus 2010. An increase in
the industry benchmark margin of approximately $4 per barrel, increased crude throughput and
benefits related to crude purchasing were the primary contributors
to an approximately $530 million
improvement in performance at the Houston refinery. Berre refinery results were
weaker for the year as a result of weaker refining margins, lower
throughput and charges related to the suspension of operations at
the refinery. Oxyfuels results improved approximately $110 million in 2011, principally as a result of
higher margins.
Technology Segment – The principal products of the
Technology segment include polyolefin catalysts and production
process technology licenses and related services.
|
|
|
|
|
|
|
|
|
|
Table 7 - Technology Financial
Overview(a)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
|
|
Millions of U.S.
dollars
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Operating income
|
$11
|
$7
|
$8
|
$107
|
$108
|
|
|
EBITDA
|
36
|
45
|
44
|
214
|
212
|
|
|
EBITDA excluding LCM
charges
|
36
|
45
|
44
|
214
|
212
|
|
|
|
|
|
|
|
|
|
|
|
(a) For all periods prior
to May 1, 2010, operating income and EBITDA are calculated on a
current cost inventory basis. For
|
|
|
periods on and after May 1,
2010, operating income and EBITDA are calculated using the LIFO
method of inventory accounting.
|
|
|
See Table 8.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2011 versus three months ended September 30, 2011 – Results declined
primarily due to seasonally lower catalyst sales.
Three months ended December 31,
2011 versus three months ended December 31, 2010 – Licensing and technology
services results declined compared to fourth quarter 2010 while
catalyst results improved compared to the prior year period.
Year ended December 31, 2011
versus year ended December 31,
2010 – Segment results were comparable to 2010.
Lower licensing and services revenue and higher research and
development (R&D) costs related to the closure of the Newtown
Square R&D center were offset by higher catalyst income.
Liquidity
Company liquidity, defined as cash and cash equivalents plus
funds available through established lines of credit, was
approximately $3.2 billion on
Dec. 31, 2011. The company's
cash balance was approximately $1.1
billion including $53 million
of restricted cash on Dec. 31,
2011.
Capital Spending
Capital expenditures, including maintenance turnaround, catalyst
and information technology related expenditures, were $291 million during the fourth quarter 2011 and
$1.06 billion for the full year
2011.
CONFERENCE CALL
LyondellBasell will host a conference call today, Feb. 10, 2012, at 11:00
a.m. ET. Participating on the call will be:
Jim Gallogly, Chief Executive
Officer; Karyn Ovelmen, Executive
Vice President and Chief Financial Officer; Sergey Vasnetsov, Senior Vice President -
Strategic Planning and Transactions; and Doug Pike, Vice President of Investor Relations.
The toll-free dial-in number in the U.S. is 888-982-4611.
For international numbers, please go to our website,
www.lyondellbasell.com/teleconference, for a complete listing of
toll-free numbers by country. The pass code for all numbers
is 3987211.
A replay of the call will be available from 1:00 p.m. ET February 10
to 11:00 p.m. ET on March 10.
The replay dial-in numbers are 888-568-0611 (U.S.) and +1
203-369-3197 (international). The pass code for each is 6565.
A copy of the slides that accompany the call will be available
on the LyondellBasell website at
http://www.lyondellbasell.com/earnings.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world's largest
plastics, chemical and refining companies. The company manufactures
products at 58 sites in 18 countries. LyondellBasell products and
technologies are used to make items that improve the quality of
life for people around the world including packaging, electronics,
automotive components, home furnishings, construction materials and
biofuels. 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 and natural gas; competitive product
and pricing pressures; labor conditions; our ability to attract and
retain key personnel; operating interruptions (including leaks,
explosions, fires, weather-related incidents, mechanical failure,
unscheduled downtime, supplier disruptions, labor shortages,
strikes, work stoppages or other labor difficulties, transportation
interruptions, spills and releases and other environmental risks);
the supply/demand balances for our and our joint ventures'
products, and the related effects of industry production capacities
and operating rates; our ability to achieve expected cost savings
and other synergies; legal and environmental proceedings; tax
rulings, consequences or proceedings; technological developments,
and our ability to develop new products and process technologies;
potential governmental regulatory actions; political unrest and
terrorist acts; risks and uncertainties posed by international
operations, including foreign currency fluctuations; and our
ability to comply with debt covenants and service our debt.
Additional factors that could cause results to differ
materially from those described in the forward-looking statements
can be found in the "Risk Factors" section of our Form 10-K for the
year ended December 31, 2010, which
can be found at www.lyondellbasell.com on the Investor Relations
page and on the Securities and Exchange Commission's website at
www.sec.gov.
NON-GAAP MEASURES
This release makes reference to certain "non-GAAP" financial
measures as defined in Regulation G of the U.S. Securities Exchange
Act of 1934, as amended. We report our financial results in
accordance with U.S. generally accepted accounting principles, but
believe that certain non-GAAP financial measures provide useful
supplemental information to investors regarding the underlying
business trends and performance of the company's ongoing operations
and are useful for period-over-period comparisons of such
operations. These non-GAAP financial measures should be considered
as a supplement to, and not as a substitute for, or superior to,
the financial measures prepared in accordance with GAAP.
We have included EBITDA, adjusted EBITDA, adjusted net income
and adjusted earnings per share in this press release.
EBITDA, as presented herein, may not be comparable to a
similarly titled measure reported by other companies due to
differences in the way the measure is calculated. For purposes of
this release, EBITDA for predecessor periods means earnings before
interest, taxes, depreciation, amortization and restructuring
costs, as adjusted for other items management does not believe are
indicative of the Company's underlying results of operations such
as impairment charges, reorganization items, the effect of
mark-to-market accounting on our warrants and current cost
inventory adjustments. EBITDA for successor periods means
earnings before interest, taxes, depreciation and amortization, as
adjusted for the same items, to the extent applicable in the
successor periods. EBITDA also includes dividends from joint
ventures. EBITDA should not be considered an alternative to
profit or operating profit for any period as an indicator of our
performance, or as alternatives to operating cash flows as a
measure of our liquidity.
Quantitative reconciliations of non-GAAP financial measures to
their nearest comparable GAAP financial measures are provided
Tables 8 and 9 at the end of this release.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
As a result of the Company's reorganization proceedings and its
emergence from Chapter 11, financial results are prepared and
disclosed for a predecessor company for the time period before
May 1, 2010, and the successor
company for time periods after April 30,
2010, the date of emergence. For financial accounting
purposes, the predecessor and successor companies are considered to
be two separate entities. Further, the reorganization under
Chapter 11 and the application of fresh-start accounting make
comparisons of the predecessor and successor periods difficult.
The primary impacts affecting the comparisons include (i)
significant changes to our inventory valuations; (ii) lower
depreciation and amortization expense; and (iii) lower interest
expense. In connection with the application of fresh-start
accounting, we were required to write our inventory up to fair
market value, which was significant given the high crude oil prices
at April 30, 2010. However, in
the fourth quarter 2010, prices rose to levels close to those at
April 30, 2010, and it became
necessary to reverse significant portions of the LCM charges taken
in the second and third quarters. The lower depreciation and
amortization expenses in the successor period are the result of the
revaluation of assets in connection with fresh-start accounting.
Lower interest expense is the result of the substantial
changes to the balance sheet as a result of the reorganization.
Prior to emergence from Chapter 11, we utilized a combination of
First-In, First-Out and Last-In, First-Out inventory methods for
financial reporting. For purposes of evaluating segment results,
management reviewed operating results using current cost, which
approximates LIFO. As supplementary information, and for our
segment reporting, we provide EBITDA information on a current cost
basis for periods prior to our emergence from Chapter 11. Since
emergence from Chapter 11, we have utilized the LIFO inventory
methodology and EBITDA information for periods after our emergence
is on a LIFO basis. The combined financial results and
measures that are disclosed in this press release, including
EBITDA, therefore use both current cost and LIFO methodologies.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
(Millions of U.S. dollars)
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
|
YTD
|
|
Sales and other operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
3,572
|
|
$
|
4,010
|
|
$
|
3,875
|
|
$
|
3,423
|
|
$
|
14,880
|
|
Olefins & Polyolefins - Europe, Asia, International
|
|
|
3,944
|
|
|
4,264
|
|
|
3,918
|
|
|
3,334
|
|
|
15,460
|
|
Intermediates & Derivatives
|
|
|
1,692
|
|
|
1,777
|
|
|
1,617
|
|
|
1,401
|
|
|
6,487
|
|
Refining & Oxyfuels
|
|
|
4,720
|
|
|
5,833
|
|
|
5,869
|
|
|
4,311
|
|
|
20,733
|
|
Technology
|
|
|
139
|
|
|
126
|
|
|
129
|
|
|
112
|
|
|
506
|
|
Other/elims
|
|
|
(1,815)
|
|
|
(1,968)
|
|
|
(2,111)
|
|
|
(1,137)
|
|
|
(7,031)
|
|
Total
|
|
$
|
12,252
|
|
$
|
14,042
|
|
$
|
13,297
|
|
$
|
11,444
|
|
$
|
51,035
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
421
|
|
$
|
509
|
|
$
|
599
|
|
$
|
328
|
|
$
|
1,857
|
|
Olefins & Polyolefins - Europe, Asia, International
|
|
|
179
|
|
|
207
|
|
|
144
|
|
|
(55)
|
|
|
475
|
|
Intermediates & Derivatives
|
|
|
234
|
|
|
235
|
|
|
259
|
|
|
134
|
|
|
862
|
|
Refining & Oxyfuels
|
|
|
164
|
|
|
296
|
|
|
454
|
|
|
(196)
|
|
|
718
|
|
Technology
|
|
|
66
|
|
|
23
|
|
|
7
|
|
|
11
|
|
|
107
|
|
Other
|
|
|
1
|
|
|
(5)
|
|
|
4
|
|
|
(21)
|
|
|
(21)
|
|
Current cost adjustment
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Total
|
|
$
|
1,065
|
|
$
|
1,265
|
|
$
|
1,467
|
|
$
|
201
|
|
$
|
3,998
|
|
Depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
58
|
|
$
|
59
|
|
$
|
64
|
|
$
|
65
|
|
$
|
246
|
|
Olefins & Polyolefins - Europe, Asia, International
|
|
|
57
|
|
|
66
|
|
|
69
|
|
|
70
|
|
|
262
|
|
Intermediates & Derivatives
|
|
|
34
|
|
|
37
|
|
|
35
|
|
|
36
|
|
|
142
|
|
Refining & Oxyfuels
|
|
|
42
|
|
|
46
|
|
|
48
|
|
|
61
|
|
|
197
|
|
Technology
|
|
|
24
|
|
|
16
|
|
|
21
|
|
|
23
|
|
|
84
|
|
Other
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Total
|
|
$
|
215
|
|
$
|
224
|
|
$
|
237
|
|
$
|
255
|
|
$
|
931
|
|
EBITDA: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
484
|
|
$
|
578
|
|
$
|
673
|
|
$
|
407
|
|
$
|
2,142
|
|
Olefins & Polyolefins - Europe, Asia, International
|
|
|
333
|
|
|
275
|
|
|
261
|
|
|
62
|
|
|
931
|
|
Intermediates & Derivatives
|
|
|
270
|
|
|
314
|
|
|
297
|
|
|
173
|
|
|
1,054
|
|
Refining & Oxyfuels
|
|
|
210
|
|
|
353
|
|
|
519
|
|
|
(110)
|
|
|
972
|
|
Technology
|
|
|
91
|
|
|
42
|
|
|
45
|
|
|
36
|
|
|
214
|
|
Other
|
|
|
14
|
|
|
(9)
|
|
|
(7)
|
|
|
(32)
|
|
|
(34)
|
|
Total EBITDA
|
|
$
|
1,402
|
|
$
|
1,553
|
|
$
|
1,788
|
|
$
|
536
|
|
$
|
5,279
|
|
Capital, turnarounds and IT deferred spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
66
|
|
$
|
138
|
|
$
|
149
|
|
$
|
72
|
|
$
|
425
|
|
Olefins & Polyolefins - Europe, Asia, International
|
|
|
42
|
|
|
37
|
|
|
46
|
|
|
110
|
|
|
235
|
|
Intermediates & Derivatives
|
|
|
5
|
|
|
15
|
|
|
25
|
|
|
54
|
|
|
99
|
|
Refining & Oxyfuels
|
|
|
101
|
|
|
58
|
|
|
53
|
|
|
43
|
|
|
255
|
|
Technology
|
|
|
7
|
|
|
3
|
|
|
8
|
|
|
8
|
|
|
26
|
|
Other
|
|
|
1
|
|
|
10
|
|
|
- -
|
|
|
6
|
|
|
17
|
|
Total
|
|
|
222
|
|
|
261
|
|
|
281
|
|
|
293
|
|
|
1,057
|
|
Deferred charges included above
|
|
|
(1)
|
|
|
- -
|
|
|
(2)
|
|
|
(4)
|
|
|
(7)
|
|
Capital expenditures
|
|
$
|
221
|
|
$
|
261
|
|
$
|
279
|
|
$
|
289
|
|
$
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See Table 9 for a
reconciliation of total EBITDA, excluding LCM inventory valuation
adjustments, to net income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 8 - Reconciliation of
Segment Information to Consolidated Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Successor
|
Combined
|
|
|
|
2010
|
|
|
|
|
|
April 1
-
|
|
May 1
-
|
|
|
|
|
|
|
|
January 1
-
|
|
May 1
-
|
|
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
April
30
|
|
June
30
|
|
Q2
|
|
Q3
|
|
Q4
|
|
April
30
|
|
December 31
|
|
YTD
|
|
Sales and other operating revenues: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
3,020
|
|
$
|
1,163
|
|
$
|
2,004
|
|
$
|
3,167
|
|
$
|
3,247
|
|
$
|
3,155
|
|
$
|
4,183
|
|
$
|
8,406
|
|
$
|
12,589
|
|
Olefins & Polyolefins - Europe, Asia,
International
|
|
|
3,119
|
|
|
1,066
|
|
|
2,140
|
|
|
3,206
|
|
|
3,247
|
|
|
3,342
|
|
|
4,105
|
|
|
8,729
|
|
|
12,834
|
|
Intermediates & Derivatives
|
|
|
1,316
|
|
|
504
|
|
|
940
|
|
|
1,444
|
|
|
1,453
|
|
|
1,361
|
|
|
1,820
|
|
|
3,754
|
|
|
5,574
|
|
Refining & Oxyfuels
|
|
|
3,415
|
|
|
1,333
|
|
|
2,403
|
|
|
3,736
|
|
|
3,867
|
|
|
4,051
|
|
|
4,748
|
|
|
10,321
|
|
|
15,069
|
|
Technology
|
|
|
110
|
|
|
35
|
|
|
75
|
|
|
110
|
|
|
157
|
|
|
133
|
|
|
145
|
|
|
365
|
|
|
510
|
|
Other/elims
|
|
|
(1,225)
|
|
|
(389)
|
|
|
(790)
|
|
|
(1,179)
|
|
|
(1,669)
|
|
|
(1,432)
|
|
|
(1,534)
|
|
|
(3,891)
|
|
|
(5,425)
|
|
Total
|
|
$
|
9,755
|
|
$
|
3,712
|
|
$
|
6,772
|
|
$
|
10,484
|
|
$
|
10,302
|
|
$
|
10,610
|
|
$
|
13,467
|
|
$
|
27,684
|
|
$
|
41,151
|
|
Operating income (loss):
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
145
|
|
$
|
175
|
|
$
|
149
|
|
$
|
324
|
|
$
|
448
|
|
$
|
446
|
|
$
|
320
|
|
$
|
1,043
|
|
$
|
1,363
|
|
Olefins & Polyolefins - Europe, Asia,
International
|
|
|
71
|
|
|
44
|
|
|
114
|
|
|
158
|
|
|
231
|
|
|
66
|
|
|
115
|
|
|
411
|
|
|
526
|
|
Intermediates & Derivatives
|
|
|
123
|
|
|
34
|
|
|
109
|
|
|
143
|
|
|
207
|
|
|
196
|
|
|
157
|
|
|
512
|
|
|
669
|
|
Refining & Oxyfuels
|
|
|
(128)
|
|
|
29
|
|
|
14
|
|
|
43
|
|
|
83
|
|
|
144
|
|
|
(99)
|
|
|
241
|
|
|
142
|
|
Technology
|
|
|
31
|
|
|
8
|
|
|
23
|
|
|
31
|
|
|
38
|
|
|
8
|
|
|
39
|
|
|
69
|
|
|
108
|
|
Other
|
|
|
(59)
|
|
|
18
|
|
|
13
|
|
|
31
|
|
|
(19)
|
|
|
(16)
|
|
|
(41)
|
|
|
(22)
|
|
|
(63)
|
|
Current cost adjustment
|
|
|
184
|
|
|
15
|
|
|
- -
|
|
|
15
|
|
|
- -
|
|
|
- -
|
|
|
199
|
|
|
- -
|
|
|
199
|
|
Total
|
|
$
|
367
|
|
$
|
323
|
|
$
|
422
|
|
$
|
745
|
|
$
|
988
|
|
$
|
844
|
|
$
|
690
|
|
$
|
2,254
|
|
$
|
2,944
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
119
|
|
$
|
41
|
|
$
|
51
|
|
$
|
92
|
|
$
|
42
|
|
$
|
58
|
|
$
|
160
|
|
$
|
151
|
|
$
|
311
|
|
Olefins & Polyolefins - Europe, Asia,
International
|
|
|
81
|
|
|
26
|
|
|
33
|
|
|
59
|
|
|
60
|
|
|
53
|
|
|
107
|
|
|
146
|
|
|
253
|
|
Intermediates & Derivatives
|
|
|
69
|
|
|
22
|
|
|
23
|
|
|
45
|
|
|
30
|
|
|
28
|
|
|
91
|
|
|
81
|
|
|
172
|
|
Refining & Oxyfuels
|
|
|
135
|
|
|
45
|
|
|
9
|
|
|
54
|
|
|
55
|
|
|
43
|
|
|
180
|
|
|
107
|
|
|
287
|
|
Technology
|
|
|
17
|
|
|
6
|
|
|
6
|
|
|
12
|
|
|
40
|
|
|
32
|
|
|
23
|
|
|
78
|
|
|
101
|
|
Other
|
|
|
3
|
|
|
1
|
|
|
7
|
|
|
8
|
|
|
(5)
|
|
|
(7)
|
|
|
4
|
|
|
(5)
|
|
|
(1)
|
|
Total
|
|
$
|
424
|
|
$
|
141
|
|
$
|
129
|
|
$
|
270
|
|
$
|
222
|
|
$
|
207
|
|
$
|
565
|
|
$
|
558
|
|
$
|
1,123
|
|
EBITDA: (a)(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
274
|
|
$
|
216
|
|
$
|
198
|
|
$
|
414
|
|
$
|
492
|
|
$
|
505
|
|
$
|
490
|
|
$
|
1,195
|
|
$
|
1,685
|
|
Olefins & Polyolefins - Europe, Asia,
International
|
|
|
152
|
|
|
78
|
|
|
174
|
|
|
252
|
|
|
289
|
|
|
125
|
|
|
230
|
|
|
588
|
|
|
818
|
|
Intermediates & Derivatives
|
|
|
196
|
|
|
56
|
|
|
128
|
|
|
184
|
|
|
243
|
|
|
228
|
|
|
252
|
|
|
599
|
|
|
851
|
|
Refining & Oxyfuels
|
|
|
3
|
|
|
76
|
|
|
21
|
|
|
97
|
|
|
140
|
|
|
212
|
|
|
79
|
|
|
373
|
|
|
452
|
|
Technology
|
|
|
47
|
|
|
14
|
|
|
29
|
|
|
43
|
|
|
78
|
|
|
44
|
|
|
61
|
|
|
151
|
|
|
212
|
|
Other
|
|
|
(32)
|
|
|
8
|
|
|
72
|
|
|
80
|
|
|
(44)
|
|
|
(29)
|
|
|
(24)
|
|
|
(1)
|
|
|
(25)
|
|
Total EBITDA
|
|
|
640
|
|
|
448
|
|
|
622
|
|
|
1,070
|
|
|
1,198
|
|
|
1,085
|
|
|
1,088
|
|
|
2,905
|
|
|
3,993
|
|
LCM inventory valuation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
|
- -
|
|
|
- -
|
|
|
333
|
|
|
333
|
|
|
32
|
|
|
(323)
|
|
|
- -
|
|
|
42
|
|
|
42
|
|
Total excluding LCM inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
valuation adjustments
|
|
$
|
640
|
|
$
|
448
|
|
$
|
955
|
|
$
|
1,403
|
|
$
|
1,230
|
|
$
|
762
|
|
$
|
1,088
|
|
$
|
2,947
|
|
$
|
4,035
|
|
Capital, turnarounds and IT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deferred
spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
69
|
|
$
|
20
|
|
$
|
50
|
|
$
|
70
|
|
$
|
40
|
|
$
|
56
|
|
$
|
89
|
|
$
|
146
|
|
$
|
235
|
|
Olefins & Polyolefins - Europe, Asia,
International
|
|
|
59
|
|
|
43
|
|
|
31
|
|
|
74
|
|
|
32
|
|
|
43
|
|
|
102
|
|
|
106
|
|
|
208
|
|
Intermediates & Derivatives
|
|
|
7
|
|
|
5
|
|
|
5
|
|
|
10
|
|
|
39
|
|
|
32
|
|
|
12
|
|
|
76
|
|
|
88
|
|
Refining & Oxyfuels
|
|
|
64
|
|
|
15
|
|
|
22
|
|
|
37
|
|
|
34
|
|
|
52
|
|
|
79
|
|
|
108
|
|
|
187
|
|
Technology
|
|
|
10
|
|
|
2
|
|
|
3
|
|
|
5
|
|
|
7
|
|
|
9
|
|
|
12
|
|
|
19
|
|
|
31
|
|
Other
|
|
|
4
|
|
|
3
|
|
|
5
|
|
|
8
|
|
|
9
|
|
|
12
|
|
|
7
|
|
|
26
|
|
|
33
|
|
Total
|
|
|
213
|
|
|
88
|
|
|
116
|
|
|
204
|
|
|
161
|
|
|
204
|
|
|
301
|
|
|
481
|
|
|
782
|
|
Deferred charges included above
|
|
|
(74)
|
|
|
(1)
|
|
|
(3)
|
|
|
(4)
|
|
|
(8)
|
|
|
(4)
|
|
|
(75)
|
|
|
(15)
|
|
|
(90)
|
|
Capital
expenditures(c)
|
|
$
|
139
|
|
$
|
87
|
|
$
|
113
|
|
$
|
200
|
|
$
|
153
|
|
$
|
200
|
|
$
|
226
|
|
$
|
466
|
|
$
|
692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For periods prior to
May 1, 2010, Predecessor segment operating income and EBITDA were
determined on a current cost basis. For periods following May
1, 2010,
|
|
Successor
operating income and EBITDA were determined using the LIFO method
of inventory accounting.
|
|
(b) See Table 9 for a
reconciliation of total EBITDA, excluding LCM inventory valuation
adjustments, to net income.
|
|
(c) Deferred IT spending is
excluded from capital expenditures for all periods presented.
Turnarounds, which are classified as property, plant and
equipment from May 1, 2010,
|
|
were
excluded from capital expenditures for periods prior to May 1,
2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9 - Reconciliation of
EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
|
2011
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Segment EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
484
|
|
$
|
578
|
|
$
|
673
|
|
$
|
407
|
|
$
|
2,142
|
|
Olefins & Polyolefins - Europe, Asia,
International
|
|
|
333
|
|
|
275
|
|
|
261
|
|
|
62
|
|
|
931
|
|
Intermediates & Derivatives
|
|
|
270
|
|
|
314
|
|
|
297
|
|
|
173
|
|
|
1,054
|
|
Refining & Oxyfuels
|
|
|
210
|
|
|
353
|
|
|
519
|
|
|
(110)
|
|
|
972
|
|
Technology
|
|
|
91
|
|
|
42
|
|
|
45
|
|
|
36
|
|
|
214
|
|
Other
|
|
|
14
|
|
|
(9)
|
|
|
(7)
|
|
|
(32)
|
|
|
(34)
|
|
Total
EBITDA
|
|
|
1,402
|
|
|
1,553
|
|
|
1,788
|
|
|
536
|
|
|
5,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Berre
refinery closure costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
136
|
|
|
136
|
|
Sale
of precious metals
|
|
|
-
|
|
|
(41)
|
|
|
-
|
|
|
-
|
|
|
(41)
|
|
Corporate restructurings
|
|
|
-
|
|
|
61
|
|
|
14
|
|
|
18
|
|
|
93
|
|
Environmental accruals
|
|
|
-
|
|
|
16
|
|
|
-
|
|
|
-
|
|
|
16
|
|
Settlement related to Houston refinery crane incident
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(15)
|
|
|
(15)
|
|
Insurance settlement
|
|
|
(34)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(34)
|
|
Total Adjusted
EBITDA
|
|
|
1,368
|
|
|
1,589
|
|
|
1,802
|
|
|
675
|
|
|
5,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investments
|
|
|
58
|
|
|
73
|
|
|
52
|
|
|
33
|
|
|
216
|
|
Unrealized foreign exchange (loss) gain
|
|
|
(3)
|
|
|
4
|
|
|
(17)
|
|
|
(11)
|
|
|
(27)
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to EBITDA
|
|
|
34
|
|
|
(36)
|
|
|
(14)
|
|
|
(139)
|
|
|
(155)
|
|
Depreciation and amortization
|
|
|
(215)
|
|
|
(224)
|
|
|
(237)
|
|
|
(255)
|
|
|
(931)
|
|
Impairment charges
|
|
|
(5)
|
|
|
(13)
|
|
|
(26)
|
|
|
(8)
|
|
|
(52)
|
|
Reorganization items
|
|
|
(2)
|
|
|
(28)
|
|
|
-
|
|
|
(15)
|
|
|
(45)
|
|
Interest expense, net
|
|
|
(155)
|
|
|
(164)
|
|
|
(145)
|
|
|
(542)
|
|
|
(1,006)
|
|
Joint
venture dividends received
|
|
|
(96)
|
|
|
(11)
|
|
|
(55)
|
|
|
(44)
|
|
|
(206)
|
|
Provision for income taxes
|
|
|
(263)
|
|
|
(388)
|
|
|
(489)
|
|
|
92
|
|
|
(1,048)
|
|
Fair
value change in warrants
|
|
|
(59)
|
|
|
6
|
|
|
22
|
|
|
(6)
|
|
|
(37)
|
|
Other
|
|
|
(2)
|
|
|
(5)
|
|
|
2
|
|
|
2
|
|
|
(3)
|
|
Net income (loss)
|
|
|
660
|
|
|
803
|
|
|
895
|
|
|
(218)
|
|
|
2,140
|
|
Adjustments to EBITDA
|
|
|
(34)
|
|
|
36
|
|
|
14
|
|
|
139
|
|
|
155
|
|
Premiums and charges on early repayment of debt
|
|
|
-
|
|
|
12
|
|
|
-
|
|
|
431
|
|
|
443
|
|
Reorganization items
|
|
|
2
|
|
|
28
|
|
|
-
|
|
|
15
|
|
|
45
|
|
Asset
retirement obligation
|
|
|
-
|
|
|
-
|
|
|
10
|
|
|
-
|
|
|
10
|
|
Fair
value change in warrants
|
|
|
59
|
|
|
(6)
|
|
|
(22)
|
|
|
6
|
|
|
37
|
|
Impairment charges
|
|
|
5
|
|
|
13
|
|
|
26
|
|
|
8
|
|
|
52
|
|
Tax
impact of net income (loss) adjustments
|
|
|
11
|
|
|
(21)
|
|
|
(14)
|
|
|
(151)
|
|
|
(175)
|
|
Adjusted Net
Income
|
|
$
|
703
|
|
$
|
865
|
|
$
|
909
|
|
$
|
230
|
|
$
|
2,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
1.15
|
|
$
|
1.38
|
|
$
|
1.51
|
|
$
|
(0.38)
|
|
$
|
3.74
|
|
Adjustments to net income (loss)
|
|
|
0.08
|
|
|
0.11
|
|
|
0.03
|
|
|
0.79
|
|
|
0.97
|
|
Adjusted diluted earnings per share
|
|
$
|
1.23
|
|
$
|
1.49
|
|
$
|
1.54
|
|
$
|
0.41
|
|
$
|
4.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9 - Reconciliation of
EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
|
|
|
2010
|
|
|
|
|
|
|
April 1
-
|
|
May 1
-
|
|
|
|
|
|
|
|
|
|
|
January 1
-
|
|
May 1
-
|
|
|
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
April
30
|
|
June
30
|
|
Q2
|
|
Q3
|
|
Q4
|
|
April
30
|
|
December 31
|
|
YTD
|
|
Segment EBITDA:
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins & Polyolefins - Americas
|
|
$
|
274
|
|
$
|
216
|
|
$
|
198
|
|
$
|
414
|
|
$
|
492
|
|
$
|
505
|
|
$
|
490
|
|
$
|
1,195
|
|
$
|
1,685
|
|
Olefins & Polyolefins - Europe,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia, International
|
|
|
152
|
|
|
78
|
|
|
174
|
|
|
252
|
|
|
289
|
|
|
125
|
|
|
230
|
|
|
588
|
|
|
818
|
|
Intermediates & Derivatives
|
|
|
196
|
|
|
56
|
|
|
128
|
|
|
184
|
|
|
243
|
|
|
228
|
|
|
252
|
|
|
599
|
|
|
851
|
|
Refining & Oxyfuels
|
|
|
3
|
|
|
76
|
|
|
21
|
|
|
97
|
|
|
140
|
|
|
212
|
|
|
79
|
|
|
373
|
|
|
452
|
|
Technology
|
|
|
47
|
|
|
14
|
|
|
29
|
|
|
43
|
|
|
78
|
|
|
44
|
|
|
61
|
|
|
151
|
|
|
212
|
|
Other
|
|
|
(32)
|
|
|
8
|
|
|
72
|
|
|
80
|
|
|
(44)
|
|
|
(29)
|
|
|
(24)
|
|
|
(1)
|
|
|
(25)
|
|
Total
EBITDA
|
|
|
640
|
|
|
448
|
|
|
622
|
|
|
1,070
|
|
|
1,198
|
|
|
1,085
|
|
|
1,088
|
|
|
2,905
|
|
|
3,993
|
|
LCM
inventory valuation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
|
- -
|
|
|
- -
|
|
|
333
|
|
|
333
|
|
|
32
|
|
|
(323)
|
|
|
- -
|
|
|
42
|
|
|
42
|
|
Total EBITDA
excluding LCM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inventory valuation adjustments
|
|
|
640
|
|
|
448
|
|
|
955
|
|
|
1,403
|
|
|
1,230
|
|
|
762
|
|
|
1,088
|
|
|
2,947
|
|
|
4,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity investments
|
|
|
55
|
|
|
29
|
|
|
27
|
|
|
56
|
|
|
29
|
|
|
30
|
|
|
84
|
|
|
86
|
|
|
170
|
|
Unrealized foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
exchange loss
|
|
|
(202)
|
|
|
(62)
|
|
|
(14)
|
|
|
(76)
|
|
|
(7)
|
|
|
(1)
|
|
|
(264)
|
|
|
(22)
|
|
|
(286)
|
|
Gain
on sale of Flavors and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fragrance business
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
64
|
|
|
- -
|
|
|
64
|
|
|
64
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LCM
inventory valuation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
|
- -
|
|
|
- -
|
|
|
(333)
|
|
|
(333)
|
|
|
(32)
|
|
|
323
|
|
|
- -
|
|
|
(42)
|
|
|
(42)
|
|
Depreciation and amortization
|
|
|
(424)
|
|
|
(141)
|
|
|
(129)
|
|
|
(270)
|
|
|
(222)
|
|
|
(207)
|
|
|
(565)
|
|
|
(558)
|
|
|
(1,123)
|
|
Impairment charges
|
|
|
(3)
|
|
|
(6)
|
|
|
- -
|
|
|
(6)
|
|
|
- -
|
|
|
(28)
|
|
|
(9)
|
|
|
(28)
|
|
|
(37)
|
|
Reorganization
items
|
|
|
207
|
|
|
7,181
|
|
|
(8)
|
|
|
7,173
|
|
|
(13)
|
|
|
(2)
|
|
|
7,388
|
|
|
(23)
|
|
|
7,365
|
|
Interest expense, net
|
|
|
(409)
|
|
|
(299)
|
|
|
(120)
|
|
|
(419)
|
|
|
(186)
|
|
|
(222)
|
|
|
(708)
|
|
|
(528)
|
|
|
(1,236)
|
|
Joint
venture dividends received
|
|
|
(13)
|
|
|
(5)
|
|
|
(28)
|
|
|
(33)
|
|
|
-
|
|
|
(6)
|
|
|
(18)
|
|
|
(34)
|
|
|
(52)
|
|
(Provision for) benefit from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
|
(12)
|
|
|
1,327
|
|
|
(28)
|
|
|
1,299
|
|
|
(254)
|
|
|
112
|
|
|
1,315
|
|
|
(170)
|
|
|
1,145
|
|
Fair
value change in warrants
|
|
|
- -
|
|
|
- -
|
|
|
17
|
|
|
17
|
|
|
(76)
|
|
|
(55)
|
|
|
- -
|
|
|
(114)
|
|
|
(114)
|
|
Current cost adjustment to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inventory
|
|
|
184
|
|
|
15
|
|
|
- -
|
|
|
15
|
|
|
- -
|
|
|
- -
|
|
|
199
|
|
|
- -
|
|
|
199
|
|
Other
|
|
|
(15)
|
|
|
9
|
|
|
8
|
|
|
17
|
|
|
(2)
|
|
|
(4)
|
|
|
(6)
|
|
|
2
|
|
|
(4)
|
|
Net income
|
|
|
8
|
|
|
8,496
|
|
|
347
|
|
|
8,843
|
|
|
467
|
|
|
766
|
|
|
8,504
|
|
|
1,580
|
|
|
10,084
|
|
Less: Net (income)
loss attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to
non-controlling interests
|
|
|
2
|
|
|
58
|
|
|
(5)
|
|
|
53
|
|
|
7
|
|
|
5
|
|
|
60
|
|
|
7
|
|
|
67
|
|
Net income attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the
Company
|
|
$
|
10
|
|
$
|
8,554
|
|
$
|
342
|
|
$
|
8,896
|
|
$
|
474
|
|
$
|
771
|
|
$
|
8,564
|
|
$
|
1,587
|
|
$
|
10,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For periods prior to May 1,
2010, Predecessor segment operating income and EBITDA were
determined on a current cost basis. For periods following May
1, 2010,
|
|
Successor
operating income and EBITDA were determined using the LIFO method
of inventory accounting.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 10 - Selected Segment
Operating Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
2011
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Olefins and Polyolefins -
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
(million pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene produced
|
|
2,019
|
|
1,998
|
|
2,184
|
|
2,152
|
|
8,353
|
|
2,089
|
|
1,929
|
|
2,134
|
|
2,201
|
|
8,353
|
|
Propylene produced
|
|
755
|
|
777
|
|
790
|
|
695
|
|
3,017
|
|
769
|
|
556
|
|
838
|
|
744
|
|
2,907
|
|
Polyethylene sold
|
|
1,330
|
|
1,320
|
|
1,472
|
|
1,347
|
|
5,469
|
|
1,405
|
|
1,377
|
|
1,368
|
|
1,343
|
|
5,493
|
|
Polypropylene sold
|
|
615
|
|
670
|
|
675
|
|
611
|
|
2,571
|
|
585
|
|
611
|
|
635
|
|
640
|
|
2,471
|
|
Benchmark Market
Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Texas Intermediate crude oil (USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per barrel)
|
|
78.9
|
|
78.1
|
|
76.1
|
|
85.2
|
|
79.6
|
|
94.6
|
|
102.3
|
|
89.5
|
|
94.1
|
|
95.1
|
|
Light Louisiana Sweet ("LLS") crude oil (USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per barrel)
|
|
80.0
|
|
82.2
|
|
79.6
|
|
89.3
|
|
82.8
|
|
107.8
|
|
118.3
|
|
112.5
|
|
110.8
|
|
112.4
|
|
Natural gas (USD per million BTUs)
|
|
5.4
|
|
4.0
|
|
4.4
|
|
4.2
|
|
4.5
|
|
4.2
|
|
4.4
|
|
4.3
|
|
3.6
|
|
4.1
|
|
U.S. weighted average cost of ethylene production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(cents/pound)
|
|
34.3
|
|
26.7
|
|
25.2
|
|
33.8
|
|
30.0
|
|
32.6
|
|
33.8
|
|
34.3
|
|
41.6
|
|
35.6
|
|
U.S. ethylene (cents/pound)
|
|
52.3
|
|
45.6
|
|
38.3
|
|
47.3
|
|
45.9
|
|
49.3
|
|
57.5
|
|
55.8
|
|
54.4
|
|
54.3
|
|
U.S. polyethylene [high density]
(cents/pound)
|
|
83.3
|
|
84.0
|
|
77.7
|
|
83.7
|
|
82.2
|
|
87.7
|
|
95.3
|
|
89.0
|
|
85.7
|
|
89.4
|
|
U.S. propylene (cents/pound)
|
|
61.5
|
|
63.3
|
|
56.2
|
|
57.3
|
|
59.6
|
|
71.7
|
|
87.3
|
|
76.5
|
|
57.8
|
|
73.3
|
|
U.S. polypropylene [homopolymer]
(cents/pound)
|
|
87.8
|
|
89.8
|
|
82.7
|
|
83.8
|
|
86.0
|
|
100.8
|
|
113.8
|
|
103.0
|
|
84.3
|
|
100.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins and Polyolefins -
Europe, Asia, International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
(million pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene produced
|
|
861
|
|
842
|
|
994
|
|
913
|
|
3,610
|
|
997
|
|
999
|
|
926
|
|
807
|
|
3,729
|
|
Propylene produced
|
|
509
|
|
540
|
|
636
|
|
560
|
|
2,245
|
|
608
|
|
631
|
|
560
|
|
487
|
|
2,286
|
|
Polyethylene sold
|
|
1,239
|
|
1,230
|
|
1,316
|
|
1,275
|
|
5,060
|
|
1,305
|
|
1,279
|
|
1,349
|
|
1,210
|
|
5,143
|
|
Polypropylene sold
|
|
1,538
|
|
1,762
|
|
1,891
|
|
1,832
|
|
7,023
|
|
1,704
|
|
1,631
|
|
1,638
|
|
1,651
|
|
6,624
|
|
Benchmark Market
Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Europe weighted average cost of ethylene
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
production (euro 0.01 per pound)
|
|
28.7
|
|
27.3
|
|
26.5
|
|
35.7
|
|
29.5
|
|
34.7
|
|
35.4
|
|
37.3
|
|
38.5
|
|
36.5
|
|
Western Europe ethylene (euro 0.01 per
pound)
|
|
41.6
|
|
43.7
|
|
43.1
|
|
44.3
|
|
43.2
|
|
52.0
|
|
54.7
|
|
50.3
|
|
49.7
|
|
51.7
|
|
Western Europe polyethylene [high density] (euro
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per pound)
|
|
51.4
|
|
53.8
|
|
52.4
|
|
52.5
|
|
52.5
|
|
62.1
|
|
65.9
|
|
59.9
|
|
58.4
|
|
61.6
|
|
Western Europe propylene (euro 0.01 per
pound)
|
|
38.9
|
|
45.1
|
|
43.1
|
|
42.6
|
|
42.4
|
|
50.8
|
|
55.3
|
|
50.2
|
|
46.5
|
|
50.7
|
|
Western Europe polypropylene [homopolymer] (euro 0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per pound)
|
|
51.3
|
|
60.3
|
|
60.3
|
|
58.9
|
|
57.7
|
|
66.6
|
|
69.4
|
|
62.0
|
|
57.6
|
|
63.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediates and
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propylene oxide and derivatives
|
|
869
|
|
781
|
|
872
|
|
860
|
|
3,382
|
|
838
|
|
791
|
|
758
|
|
716
|
|
3,103
|
|
Ethylene oxide and derivatives
|
|
265
|
|
250
|
|
206
|
|
251
|
|
972
|
|
288
|
|
277
|
|
281
|
|
254
|
|
1,100
|
|
Styrene monomer
|
|
589
|
|
780
|
|
827
|
|
685
|
|
2,881
|
|
852
|
|
817
|
|
714
|
|
682
|
|
3,065
|
|
Acetyls
|
|
379
|
|
439
|
|
405
|
|
484
|
|
1,707
|
|
439
|
|
417
|
|
411
|
|
370
|
|
1,637
|
|
TBA Intermediates
|
|
472
|
|
470
|
|
454
|
|
425
|
|
1,821
|
|
485
|
|
459
|
|
433
|
|
418
|
|
1,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining and
Oxyfuels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Houston Refining crude processing rate (thousands of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
barrels per day)
|
|
263
|
|
189
|
|
261
|
|
233
|
|
236
|
|
258
|
|
263
|
|
269
|
|
262
|
|
263
|
|
Berre Refinery crude processing rate (thousands of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
barrels per day)
|
|
73
|
|
99
|
|
99
|
|
80
|
|
88
|
|
101
|
|
85
|
|
79
|
|
61
|
|
82
|
|
MTBE/ETBE sales volumes (million gallons)
|
|
189
|
|
236
|
|
248
|
|
218
|
|
891
|
|
192
|
|
206
|
|
260
|
|
210
|
|
868
|
|
Benchmark Market
Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light crude oil - 2-1-1(a)
|
|
6.85
|
|
10.45
|
|
7.60
|
|
8.97
|
|
8.48
|
|
19.06
|
|
10.28
|
|
9.54
|
|
5.26
|
|
7.80
|
|
Light crude oil - Maya differential(a)
|
|
8.94
|
|
9.54
|
|
8.54
|
|
9.41
|
|
9.15
|
|
4.63
|
|
15.50
|
|
13.99
|
|
7.45
|
|
13.76
|
|
Urals 4-1-2-1 (USD per barrel)
|
|
5.91
|
|
7.33
|
|
5.89
|
|
6.64
|
|
6.45
|
|
7.81
|
|
7.71
|
|
8.76
|
|
8.02
|
|
8.08
|
|
MTBE - Northwest Europe (cents per gallon)
|
|
49.3
|
|
46.2
|
|
44.3
|
|
18.5
|
|
39.3
|
|
58.9
|
|
92.7
|
|
94.1
|
|
87.0
|
|
83.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: CMAI, Bloomberg,
LyondellBasell Industries
|
|
|
|
|
|
|
|
(a) Prices prior to 2011 use WTI
as the light crude benchmark. Beginning in 2011, LLS is used
as the light crude benchmark.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 11 - Unaudited Income
Statement Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
|
2011
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
|
Sales and other
operating revenues
|
|
$
|
12,252
|
|
$
|
14,042
|
|
$
|
13,297
|
|
$
|
11,444
|
|
$
|
51,035
|
|
Cost of
sales
|
|
|
10,943
|
|
|
12,474
|
|
|
11,538
|
|
|
10,958
|
|
|
45,913
|
|
Selling, general
and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
|
|
|
211
|
|
|
247
|
|
|
239
|
|
|
231
|
|
|
928
|
|
Research and
development expenses
|
|
|
33
|
|
|
56
|
|
|
53
|
|
|
54
|
|
|
196
|
|
Operating income
|
|
|
1,065
|
|
|
1,265
|
|
|
1,467
|
|
|
201
|
|
|
3,998
|
|
Income from equity
investments
|
|
|
58
|
|
|
73
|
|
|
52
|
|
|
33
|
|
|
216
|
|
Interest expense,
net
|
|
|
(155)
|
|
|
(164)
|
|
|
(145)
|
|
|
(542)
|
|
|
(1,006)
|
|
Other income
(expense), net
|
|
|
(43)
|
|
|
45
|
|
|
10
|
|
|
13
|
|
|
25
|
|
Income before income taxes and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reorganization items
|
|
|
925
|
|
|
1,219
|
|
|
1,384
|
|
|
(295)
|
|
|
3,233
|
|
Reorganization
items
|
|
|
(2)
|
|
|
(28)
|
|
|
- -
|
|
|
(15)
|
|
|
(45)
|
|
Income (loss) before taxes
|
|
|
923
|
|
|
1,191
|
|
|
1,384
|
|
|
(310)
|
|
|
3,188
|
|
Provision for
(benefit from) income taxes
|
|
|
263
|
|
|
388
|
|
|
489
|
|
|
(92)
|
|
|
1,048
|
|
Net income
(loss)
|
|
|
660
|
|
|
803
|
|
|
895
|
|
|
(218)
|
|
|
2,140
|
|
Less: Net loss attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interests
|
|
|
3
|
|
|
1
|
|
|
- -
|
|
|
3
|
|
|
7
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the
Company
|
|
$
|
663
|
|
$
|
804
|
|
$
|
895
|
|
$
|
(215)
|
|
$
|
2,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 11 - Unaudited Income
Statement Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
|
|
2010
|
|
|
|
|
|
April 1
-
|
|
May 1
-
|
|
|
|
|
|
|
|
January 1 -
|
|
May 1
-
|
|
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
April
30
|
|
June
30
|
|
Q2
|
|
Q3
|
|
Q4
|
|
April
30
|
|
December 31
|
|
YTD
|
|
Sales and
other operating revenues
|
|
$
|
9,755
|
|
$
|
3,712
|
|
$
|
6,772
|
|
$
|
10,484
|
|
$
|
10,302
|
|
$
|
10,610
|
|
$
|
13,467
|
|
$
|
27,684
|
|
$
|
41,151
|
|
Cost of
sales
|
|
|
9,130
|
|
|
3,284
|
|
|
6,198
|
|
|
9,482
|
|
|
9,075
|
|
|
9,494
|
|
|
12,414
|
|
|
24,767
|
|
|
37,181
|
|
Selling, general
and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
|
|
|
217
|
|
|
91
|
|
|
129
|
|
|
220
|
|
|
204
|
|
|
231
|
|
|
308
|
|
|
564
|
|
|
872
|
|
Research and
development expenses
|
|
|
41
|
|
|
14
|
|
|
23
|
|
|
37
|
|
|
35
|
|
|
41
|
|
|
55
|
|
|
99
|
|
|
154
|
|
Operating income
|
|
|
367
|
|
|
323
|
|
|
422
|
|
|
745
|
|
|
988
|
|
|
844
|
|
|
690
|
|
|
2,254
|
|
|
2,944
|
|
Income from equity
investments
|
|
|
55
|
|
|
29
|
|
|
27
|
|
|
56
|
|
|
29
|
|
|
30
|
|
|
84
|
|
|
86
|
|
|
170
|
|
Interest expense,
net
|
|
|
(409)
|
|
|
(299)
|
|
|
(120)
|
|
|
(419)
|
|
|
(186)
|
|
|
(222)
|
|
|
(708)
|
|
|
(528)
|
|
|
(1,236)
|
|
Other income
(expense), net
|
|
|
(200)
|
|
|
(65)
|
|
|
54
|
|
|
(11)
|
|
|
(97)
|
|
|
(60)
|
|
|
(265)
|
|
|
(103)
|
|
|
(368)
|
|
Income (loss) before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and reorganization items
|
|
|
(187)
|
|
|
(12)
|
|
|
383
|
|
|
371
|
|
|
734
|
|
|
592
|
|
|
(199)
|
|
|
1,709
|
|
|
1,510
|
|
Reorganization
items
|
|
|
207
|
|
|
7,181
|
|
|
(8)
|
|
|
7,173
|
|
|
(13)
|
|
|
(2)
|
|
|
7,388
|
|
|
(23)
|
|
|
7,365
|
|
Income before taxes
|
|
|
20
|
|
|
7,169
|
|
|
375
|
|
|
7,544
|
|
|
721
|
|
|
590
|
|
|
7,189
|
|
|
1,686
|
|
|
8,875
|
|
Provision for (benefit from) income taxes
|
|
|
12
|
|
|
(1,327)
|
|
|
28
|
|
|
(1,299)
|
|
|
254
|
|
|
(112)
|
|
|
(1,315)
|
|
|
170
|
|
|
(1,145)
|
|
Income from
continuing operations
|
|
|
8
|
|
|
8,496
|
|
|
347
|
|
|
8,843
|
|
|
467
|
|
|
702
|
|
|
8,504
|
|
|
1,516
|
|
|
10,020
|
|
Income from
discontinued operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
64
|
|
|
- -
|
|
|
64
|
|
|
64
|
|
Net
income
|
|
|
8
|
|
|
8,496
|
|
|
347
|
|
|
8,843
|
|
|
467
|
|
|
766
|
|
|
8,504
|
|
|
1,580
|
|
|
10,084
|
|
Less: Net (income)
loss attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests
|
|
|
2
|
|
|
58
|
|
|
(5)
|
|
|
53
|
|
|
7
|
|
|
5
|
|
|
60
|
|
|
7
|
|
|
67
|
|
Net income
attributable to the Company
|
|
$
|
10
|
|
$
|
8,554
|
|
$
|
342
|
|
$
|
8,896
|
|
$
|
474
|
|
$
|
771
|
|
$
|
8,564
|
|
$
|
1,587
|
|
$
|
10,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12 - Unaudited Cash Flow
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
|
2011
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
YTD
|
|
Net cash provided by operating activities
|
|
$
|
221
|
|
$
|
1,026
|
|
$
|
1,531
|
|
$
|
91
|
|
$
|
2,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
|
|
(216)
|
|
|
(435)
|
|
|
(320)
|
|
|
(50)
|
|
|
(1,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing activities
|
|
|
28
|
|
|
(327)
|
|
|
(118)
|
|
|
(4,547)
|
|
|
(4,964)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12 - Unaudited Cash Flow
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
Successor
|
|
Successor
|
|
Predecessor
|
|
Successor
|
|
Combined
|
|
|
2010
|
|
|
|
|
April 1
-
|
|
May 1
-
|
|
|
|
|
|
|
|
January 1
-
|
|
May
1-
|
|
|
|
(Millions of U.S. dollars)
|
Q1
|
|
April
30
|
|
June
30
|
|
Q2
|
|
Q3
|
|
Q4
|
|
April
30
|
|
December 31
|
|
|
YTD
|
|
Net cash
provided by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(used
in) operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
activities
|
$
|
(373)
|
|
$
|
(552)
|
|
$
|
1,105
|
|
$
|
553
|
|
$
|
1,124
|
|
$
|
739
|
|
$
|
(925)
|
|
$
|
2,968
|
|
$
|
2,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investing activities
|
|
(127)
|
|
|
(97)
|
|
|
(110)
|
|
|
(207)
|
|
|
(156)
|
|
|
(57)
|
|
|
(224)
|
|
|
(323)
|
|
|
(547)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(used
in) financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
activities
|
|
490
|
|
|
2,825
|
|
|
133
|
|
|
2,958
|
|
|
(88)
|
|
|
(1,239)
|
|
|
3,315
|
|
|
(1,194)
|
|
|
2,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 13 - Unaudited Balance
Sheet Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor
|
|
Successor
|
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
(Millions of U.S.
dollars)
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
Cash and
cash equivalents
|
$
|
537
|
|
$
|
3,753
|
|
$
|
4,832
|
|
$
|
4,222
|
|
$
|
4,383
|
|
$
|
4,687
|
|
$
|
5,609
|
|
$
|
1,065
|
|
Restricted
cash
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
250
|
|
|
292
|
|
|
53
|
|
Short-term
investments
|
|
2
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Accounts
receivable, net
|
|
3,642
|
|
|
3,533
|
|
|
3,800
|
|
|
3,747
|
|
|
4,764
|
|
|
4,901
|
|
|
4,038
|
|
|
3,778
|
|
Inventories
|
|
3,590
|
|
|
4,372
|
|
|
4,412
|
|
|
4,824
|
|
|
5,726
|
|
|
5,577
|
|
|
5,682
|
|
|
5,499
|
|
Prepaid expenses
and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
current assets
|
|
932
|
|
|
1,016
|
|
|
885
|
|
|
986
|
|
|
1,100
|
|
|
1,098
|
|
|
1,097
|
|
|
1,036
|
|
Total current assets
|
|
8,703
|
|
|
12,674
|
|
|
13,929
|
|
|
13,779
|
|
|
15,973
|
|
|
16,513
|
|
|
16,718
|
|
|
11,431
|
|
Property, plant and equipment, net
|
|
14,687
|
|
|
6,839
|
|
|
7,216
|
|
|
7,190
|
|
|
7,440
|
|
|
7,569
|
|
|
7,363
|
|
|
7,333
|
|
Investments and
long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in PO joint
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ventures
|
|
880
|
|
|
434
|
|
|
447
|
|
|
437
|
|
|
444
|
|
|
436
|
|
|
422
|
|
|
412
|
|
Equity investments
|
|
1,125
|
|
|
1,507
|
|
|
1,582
|
|
|
1,587
|
|
|
1,586
|
|
|
1,654
|
|
|
1,594
|
|
|
1,559
|
|
Related party receivable
|
|
14
|
|
|
13
|
|
|
14
|
|
|
14
|
|
|
14
|
|
|
19
|
|
|
4
|
|
|
4
|
|
Other investments and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
long-term receivables
|
|
90
|
|
|
77
|
|
|
54
|
|
|
67
|
|
|
66
|
|
|
63
|
|
|
67
|
|
|
68
|
|
Goodwill
|
|
- -
|
|
|
1,061
|
|
|
1,105
|
|
|
595
|
|
|
807
|
|
|
621
|
|
|
598
|
|
|
585
|
|
Intangible assets,
net
|
|
1,748
|
|
|
1,427
|
|
|
1,411
|
|
|
1,360
|
|
|
1,344
|
|
|
1,310
|
|
|
1,237
|
|
|
1,177
|
|
Other assets,
net
|
|
338
|
|
|
257
|
|
|
272
|
|
|
273
|
|
|
274
|
|
|
290
|
|
|
264
|
|
|
266
|
|
Total assets
|
$
|
27,585
|
|
$
|
24,289
|
|
$
|
26,030
|
|
$
|
25,302
|
|
$
|
27,948
|
|
$
|
28,475
|
|
$
|
28,267
|
|
$
|
22,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
$
|
487
|
|
$
|
8
|
|
$
|
8
|
|
$
|
4
|
|
$
|
253
|
|
$
|
2
|
|
$
|
2
|
|
$
|
4
|
|
Short-term
debt
|
|
6,675
|
|
|
557
|
|
|
518
|
|
|
42
|
|
|
51
|
|
|
50
|
|
|
49
|
|
|
48
|
|
Accounts
payable
|
|
2,213
|
|
|
2,526
|
|
|
2,562
|
|
|
2,761
|
|
|
4,099
|
|
|
3,999
|
|
|
3,307
|
|
|
3,414
|
|
Accrued
liabilities
|
|
1,220
|
|
|
1,199
|
|
|
1,513
|
|
|
1,705
|
|
|
1,711
|
|
|
1,613
|
|
|
1,505
|
|
|
1,238
|
|
Deferred income
taxes
|
|
163
|
|
|
444
|
|
|
446
|
|
|
319
|
|
|
246
|
|
|
315
|
|
|
315
|
|
|
310
|
|
Total current liabilities
|
|
10,758
|
|
|
4,734
|
|
|
5,047
|
|
|
4,831
|
|
|
6,360
|
|
|
5,979
|
|
|
5,178
|
|
|
5,014
|
|
Long-term
debt
|
|
304
|
|
|
6,745
|
|
|
6,799
|
|
|
6,036
|
|
|
5,805
|
|
|
5,813
|
|
|
5,782
|
|
|
3,980
|
|
Other
liabilities
|
|
1,317
|
|
|
2,013
|
|
|
2,086
|
|
|
2,183
|
|
|
2,043
|
|
|
2,110
|
|
|
2,021
|
|
|
2,277
|
|
Deferred income
taxes
|
|
2,012
|
|
|
867
|
|
|
1,155
|
|
|
656
|
|
|
1,027
|
|
|
947
|
|
|
1,204
|
|
|
917
|
|
Liabilities subject
to compromise
|
|
22,058
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Stockholders'
equity (deficit)
|
|
(8,975)
|
|
|
9,868
|
|
|
10,882
|
|
|
11,535
|
|
|
12,671
|
|
|
13,579
|
|
|
14,025
|
|
|
10,593
|
|
Non-controlling
interests
|
|
111
|
|
|
62
|
|
|
61
|
|
|
61
|
|
|
42
|
|
|
47
|
|
|
57
|
|
|
54
|
|
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(deficit)
|
$
|
27,585
|
|
$
|
24,289
|
|
$
|
26,030
|
|
$
|
25,302
|
|
$
|
27,948
|
|
$
|
28,475
|
|
$
|
28,267
|
|
$
|
22,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE LyondellBasell Industries