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)
- Advanced the Growth Program
– 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
- Strong Cash Flow and Share Repurchases
– 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
- 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
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(a)
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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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(b)
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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.
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SOURCE LyondellBasell Industries