HOUSTON and LONDON, Feb. 3,
2017 /PRNewswire/ --
2016 Full Year Highlights
- Strong Earnings
- Income from continuing operations: $3.8
billion ($3.9 billion
excluding LCM1)
- Diluted earnings per share: $9.15
per share ($9.20 per share excluding
LCM)
- EBITDA: $6.6 billion
($6.6 billion excluding LCM)
- Advanced the Growth Program
- Completed an 800 million pound ethylene expansion at
Corpus Christi, Texas, the final
in a series of planned expansions to increase our U.S. ethylene
capacity by 20%
- Began site preparations for a new 1.1 billion pound
polyethylene plant in La Porte,
Texas
- Strong Cash Flow and Share Repurchases
- Full year cash generation from operations totaled $5.6 billion
- Share repurchases and dividends totaled $4.3 billion; $2.2
billion in capital expenditures
- Repurchased 37 million shares or approximately 8% of the shares
outstanding on January 1, 2016
Fourth Quarter 2016 Highlights
- Income from continuing operations: $770
million ($788 million
excluding LCM)
- Diluted earnings per share: $1.89
per share ($1.94 per share excluding
LCM)
- EBITDA: $1.4 billion
($1.4 billion excluding LCM)
- Share repurchases and dividends totaled $783 million; repurchased 5.2 million shares
during the fourth quarter or approximately 1.3% of the shares
outstanding on October 1, 2016
Comparisons with the prior quarter, fourth quarter 2015 and
full year 2015 are available in the following table:
Table 1 - Earnings
Summary
|
|
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
Millions of
U.S. dollars
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
|
(except share
data)
|
2016
|
2016
|
2015
|
2016
|
2015
|
Sales and other
operating revenues
|
$7,747
|
$7,365
|
$7,071
|
$29,183
|
$32,735
|
Net
income(a)
|
763
|
953
|
795
|
3,837
|
4,474
|
Income from
continuing operations(b)
|
770
|
955
|
797
|
3,847
|
4,479
|
Diluted earnings per
share (U.S. dollars):
|
|
|
|
|
|
|
Net
income(c)
|
1.87
|
2.30
|
1.78
|
9.13
|
9.59
|
|
Income from
continuing operations(b)
|
1.89
|
2.31
|
1.78
|
9.15
|
9.60
|
Diluted share count
(millions)
|
407
|
414
|
446
|
420
|
466
|
EBITDA(d)
|
1,406
|
1,606
|
1,394
|
6,602
|
7,533
|
|
|
|
|
|
|
|
Excluding LCM
Impact:
|
|
|
|
|
|
LCM charges,
pre-tax
|
29
|
- -
|
284
|
29
|
548
|
Income from
continuing operations
|
788
|
955
|
982
|
3,865
|
4,830
|
Diluted earnings per
share (U.S. dollars):
|
|
|
|
|
|
|
Income from
continuing operations
|
1.94
|
2.31
|
2.20
|
9.20
|
10.35
|
EBITDA
|
1,435
|
1,606
|
1,678
|
6,631
|
8,081
|
|
|
|
|
|
|
|
(a)
Includes net loss attributable to
non-controlling interests and income (loss) from discontinued
operations, net of tax. See Table
10.
|
(b)
See Table 11 for charges and benefits to
income from continuing operations.
|
(c)
Includes diluted earnings per share
attributable to discontinued operations.
|
(d)
See the end of this release for an
explanation of the Company's use of EBITDA and Table 8 for
reconciliations of EBITDA to net income and income from continuing
operations.
|
|
|
|
1 LCM
stands for "lower of cost or market." An explanation of LCM
and why we have excluded it from our financial information in this
press release can be found at the end of this press release under
"Information Related to Financial Measures."
|
LyondellBasell Industries (NYSE: LYB) today announced earnings
from continuing operations for the fourth quarter 2016 of
$770 million, or $1.89 per share. Fourth quarter 2016 EBITDA was
$1.4 billion. The quarter
included a $29 million non-cash,
pre-tax charge for the impact of a lower of cost or market (LCM)
inventory adjustment ($18 million
after-tax). Excluding the LCM adjustment, earnings from
continuing operations during the fourth quarter totaled
$788 million, or $1.94 per share, and EBITDA was $1.4 billion. The fourth quarter also included a
$58 million lump sum pension
settlement and a $61 million
non-cash, out-of-period cumulative correction. The correction,
which was not material to any reporting period, relates to taxes on
our cross-currency swaps for 2014, 2015 and through the third
quarter of 2016. Together, the pension settlement and the non-cash,
out-of-period correction adversely impacted fourth quarter earnings
by $0.24 per share. Full year 2016
income from continuing operations was $3.8
billion, or $9.15 per share,
and EBITDA was $6.6 billion. The full
year included a non-cash, pre-tax LCM inventory adjustment of
$29 million ($18 million after tax). Excluding the LCM
adjustment, earnings from continuing operations for the full year
totaled $3.9 billion, or $9.20 per share, and EBITDA was $6.6 billion. 2016 earnings were negatively
impacted due to the $58 million
pension settlement, a $74 million
non-cash, out-of-period cumulative correction relating to 2014 and
2015 for taxes on our cross currency swaps and positively
impacted by an after tax gain of $78
million on the sale of our Argentine wholly owned
subsidiary, Petroken Petroquímica Ensenada S.A. (Petroken).
Combined, the net effect of the pension settlement, non-cash,
out-of-period tax correction and Petroken gain adversely impacted
full year 2016 earnings by $0.07 per
share.
"LyondellBasell posted good results for 2016 despite the impact
of our heavy planned maintenance schedule and several Refining
operational upsets. Our continued strong earnings and cash
flow enabled us to return cash to shareholders by increasing our
dividend per share by 9 percent and purchasing 8 percent of the
outstanding shares. Our Olefins and Polyolefins -
Europe, Asia and International and Technology segments
posted their second consecutive year of record results,
demonstrating continued global industry strength. Overall,
the global olefins and polyolefins industry benefitted from
continued favorable supply and demand balances while low crude oil
and fuel prices adversely impacted refining and oxyfuel
margins. During the fourth quarter, we completed the final
step in our 2 billion pound North American ethylene expansion
program, began site preparation for a 1.1 billion pound
polyethylene plant, and advanced our new propylene oxide plant
design. These projects coupled with the 2016 completion of
seven major plant maintenance turnarounds, including four cracker
turnarounds, position our company favorably for the coming years,"
said Bob Patel, LyondellBasell chief
executive officer.
OUTLOOK
"During the past several months, the industry
outlook for 2017 has steadily improved. Healthy U.S. and
global economic activity and ethylene project delays have led to an
improved forecast for industry supply and demand dynamics.
Global supply positions have provided optimism regarding crude oil
prices and NGL supply. While we will continue to watch these
developments, the significant investments in our 2016 maintenance
programs favorably position the company for 2017," Patel
said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING
SEGMENT
LyondellBasell manages operations through five
operating segments: 1) Olefins and Polyolefins – Americas; 2)
Olefins and Polyolefins – Europe,
Asia and International (EAI); 3)
Intermediates and Derivatives; 4) Refining; and 5)
Technology.
Comments and analysis represent underlying business activity and
are exclusive of LCM inventory adjustments.
Olefins and Polyolefins - Americas
(O&P-Americas) – Our O&P–Americas segment produces
and markets olefins and co-products, polyethylene and
polypropylene.
Table 2 -
O&P–Americas Financial Overview
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
Millions of
U.S. dollars
|
2016
|
2016
|
2015
|
2016
|
2015
|
Operating
income
|
$458
|
$582
|
$662
|
$2,393
|
$3,256
|
EBITDA
|
563
|
682
|
775
|
2,877
|
3,661
|
LCM charges,
pre-tax
|
29
|
- -
|
59
|
29
|
160
|
EBITDA excluding LCM
adjustments
|
592
|
682
|
834
|
2,906
|
3,821
|
Three months ended December 31,
2016 versus three months ended September 30, 2016 – EBITDA decreased
$90 million versus the third quarter
2016, excluding an unfavorable $29
million quarter to quarter variance as a result of the
fourth quarter LCM inventory adjustment. The fourth quarter segment
results were adversely impacted by $23
million due to the pension settlement. Compared to the
prior period, olefins results decreased approximately $80 million. This decrease was driven by
margins which declined approximately 6
cents per pound due to lower ethylene prices and increased
feedstock costs. Volumes improved as a result of the
completion of planned maintenance at the Morris, Illinois complex. Combined
polyolefins results increased by approximately $10 million. Polyethylene price spreads
over ethylene improved approximately 2
cents per pound partially offset by a 2 percent volume
decrease. Polypropylene volumes declined due to seasonal
demand while price spreads over propylene improved approximately
4 cents per pound. Joint
venture equity income declined by $7
million.
Three months ended December 31,
2016 versus three months ended December 31, 2015 – EBITDA decreased
$242 million versus the fourth
quarter 2015, excluding a favorable $30
million quarter to quarter variance as a result of the LCM
inventory adjustments. 2016 results were negatively impacted
by $23 million due to the pension
settlement. Olefins results declined approximately $70 million versus the fourth quarter 2015.
Ethylene margins were lower and production was down 9% primarily
due to scheduled maintenance. Combined polyolefins results
decreased approximately $150 million
versus the very strong prior year period. Polyethylene
spreads declined by approximately 6
cents per pound and volume decreased by approximately 6
percent. Polypropylene spreads declined by approximately
3 cents per pound. Joint
venture equity income declined by $10
million.
Full year ended December 31,
2016 versus full year ended December
31, 2015 – EBITDA decreased $915
million versus 2015, excluding a favorable $131 million year to year variance as a result of
the LCM inventory adjustments in both years. 2016 results
include a $57 million gain on the
sale of the Petroken polypropylene business and the $23 million negative impact due to the pension
settlement. Olefins results declined by approximately
$850 million from the prior year.
Ethylene margins declined by approximately 6 cents per pound versus 2015. The impact
of 2 cents per pound lower ethylene
sales price was compounded by a higher cost of ethylene production.
Production was approximately 13 percent lower primarily as a
result of 2016 scheduled plant maintenance. Combined
polyolefins results decreased approximately $120 million versus the prior year.
Polyethylene spreads over ethylene declined approximately
4 cents per pound and volume
decreased approximately 4 percent. Polypropylene spreads
improved by approximately 4 cents per
pound. Polypropylene sales volumes were lower due to the sale
of our Petroken subsidiary. Joint venture equity income
increased by $17 million versus the
prior year.
Olefins and Polyolefins - Europe, Asia,
International (O&P-EAI) – Our O&P–EAI segment
produces and markets olefins and co-products, polyethylene and
polypropylene, including polypropylene compounds.
Table 3 -
O&P–EAI Financial Overview
|
|
|
Three Months
Ended
|
Year
Ended
|
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
Millions of
U.S. dollars
|
2016
|
2016
|
2015
|
2016
|
2015
|
Operating
income
|
$266
|
$447
|
$302
|
$1,494
|
$1,309
|
EBITDA
|
398
|
584
|
427
|
2,067
|
1,825
|
LCM charges,
pre-tax
|
- -
|
- -
|
24
|
- -
|
30
|
EBITDA excluding LCM
adjustments
|
398
|
584
|
451
|
2,067
|
1,855
|
Three months ended December 31,
2016 versus three months ended September 30, 2016 – EBITDA decreased
$186 million for the fourth quarter
versus the third quarter 2016. The fourth quarter was
negatively impacted by a pension settlement of $8 million and the absence of an $11 million third quarter gain due to the
restructuring of Asian polypropylene joint ventures and the sale of
idled Australian polypropylene assets. Compared to the prior
period, olefins results decreased approximately $120 million. Ethylene margins declined
7 cents per pound primarily due to
feedstock costs. Ethylene sales and internal consumption were
also lower due to planned maintenance at our Wesseling,
Germany cracker. Combined
polyolefins results declined by approximately $50 million primarily due to lower spreads for
both polyethylene and polypropylene. Joint venture equity
income increased by $3 million.
Three months ended December 31,
2016 versus three months ended December 31, 2015 – EBITDA decreased by
$53 million versus the fourth quarter
2015, excluding a favorable $24
million quarter to quarter variance as a result of the 2015
LCM inventory adjustment. The fourth quarter 2016 was
adversely impacted by the $8 million
pension settlement. Compared to the prior period, olefins
results were relatively unchanged. Combined polyolefins
results decreased approximately $50
million. Polyethylene spreads declined while
polypropylene margins were relatively unchanged. Sales volume
declined 4 percent and 10 percent for polyethylene and
polypropylene, respectively. Joint venture equity income
increased by $2 million.
Full year ended December 31,
2016 versus full year ended December
31, 2015 – The segment achieved record EBITDA for the
year. EBITDA increased $212
million versus 2015, excluding a favorable $30 million year to year variance as a result of
the 2015 LCM inventory adjustment. 2016 results include gains
totaling $32 million due to the sale
of the Petroken polypropylene business, restructuring of Asian
polypropylene joint ventures and the sale of idled Australian
polypropylene assets. Olefins results declined by
approximately $20 million.
Combined polyolefins results increased approximately $180 million compared to the prior year driven by
a polyethylene and polypropylene spread improvement of
approximately 2 cents per pound and
3 cents per pound, respectively.
Joint venture equity income increased by $19
million.
Intermediates and Derivatives (I&D) – Our
I&D segment produces and markets propylene oxide (PO) and its
derivatives, oxyfuels and related products and intermediate
chemicals, such as styrene monomer, acetyls, ethylene oxide
and ethylene glycol.
Table 4 - I&D
Financial Overview
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
Millions of
U.S. dollars
|
2016
|
2016
|
2015
|
2016
|
2015
|
Operating
income
|
$236
|
$240
|
$145
|
$1,058
|
$1,224
|
EBITDA
|
306
|
304
|
212
|
1,333
|
1,475
|
LCM charges,
pre-tax
|
- -
|
- -
|
74
|
- -
|
181
|
EBITDA excluding LCM
adjustments
|
306
|
304
|
286
|
1,333
|
1,656
|
Three months ended December 31,
2016 versus three months ended September 30, 2016 – EBITDA increased
$2 million. The fourth quarter
was negatively impacted by a pension settlement of $16 million. PO and derivatives and intermediate
chemicals results increased by approximately $50 million primarily due to improved methanol
and ethylene glycol margins and reduced maintenance while PO and
derivatives were relatively steady. Oxyfuels results
decreased approximately $20 million
due to lower seasonal margins and volumes. Joint venture
equity income was relatively unchanged.
Three months ended December 31,
2016 versus three months ended December 31, 2015 – EBITDA increased
$20 million versus the fourth quarter
2015, excluding a favorable $74
million quarter to quarter variance as a result of a LCM
inventory adjustment in 2015. 2016 results were adversely
impacted by the $16 million pension
settlement. Results for PO and derivatives and intermediate
chemicals improved by approximately $20
million primarily due to increased styrene and acetyls
results. Oxyfuels improved approximately $10 million. Joint venture equity income
was relatively unchanged.
Full year ended December 31,
2016 versus full year ended December
31, 2015 – EBITDA decreased $323
million versus 2015, excluding a favorable $181 million year to year variance as a result of
LCM inventory adjustments. 2016 results were negatively
impacted by the $16 million pension
settlement. PO and derivatives and intermediate chemicals
results decreased approximately $200
million primarily due to lower margins for methanol,
ethylene glycol and PO derivatives, as well as the PO sales
mix. Oxyfuels results declined by approximately $90 million due to lower 2016
margins. Joint venture equity income declined by
$8 million.
Refining – The primary products of this segment
include gasoline and distillates, including diesel fuel, heating
oil and jet fuel.
Table 5 - Refining
Financial Overview
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
Millions of
U.S. dollars
|
2016
|
2016
|
2015
|
2016
|
2015
|
Operating income
(loss)
|
$40
|
($56)
|
($101)
|
($99)
|
$144
|
EBITDA
|
81
|
(10)
|
(59)
|
72
|
342
|
LCM charges,
pre-tax
|
- -
|
- -
|
127
|
- -
|
177
|
EBITDA excluding LCM
adjustments
|
81
|
(10)
|
68
|
72
|
519
|
Three months ended December 31,
2016 versus three months ended September 30, 2016 – EBITDA increased
$91 million versus the third quarter
2015. Underlying operational improvements provided
approximately half of the increase while the consumption of low
priced crude inventory from the prior year provided the
balance. The Houston
refinery operated at 228,000 barrels per day, up 19,000 barrels per
day from the prior quarter. The Maya 2-1-1 industry benchmark
spread was relatively unchanged, averaging approximately
$19 per barrel.
Three months ended December 31,
2016 versus three months ended December 31, 2015 – EBITDA increased
$13 million versus the fourth quarter
2015, excluding a favorable $127
million quarter to quarter variance as a result of a 2015
LCM inventory adjustment. Fourth quarter 2016 throughput
increased by 22,000 barrels per day from the prior year period. The
Maya 2-1-1 industry benchmark spread increased by $0.45 per barrel, averaging $19 per barrel. Both operating periods were
adversely impacted by operating issues.
Full year ended December 31,
2016 versus full year ended December
31, 2015 – EBITDA decreased $447
million versus 2015, excluding a favorable $177 million year to year variance as a result of
2015 LCM inventory adjustments. Throughput at the Houston
Refinery averaged 201,000 barrels per day, down 37,000 barrels per
day. The Maya 2-1-1 industry benchmark spread decreased by
approximately $3 per barrel,
averaging approximately $19 per
barrel. The cost of RINs was approximately $30 million higher in 2016 versus the prior
year.
Technology Segment – Our Technology segment develops and
licenses chemical and polyolefin process technologies and
manufactures and sells polyolefin catalysts.
Table 6 -
Technology Financial Overview
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
September
30,
|
December
31,
|
December
31,
|
December
31,
|
Millions of
U.S. dollars
|
2016
|
2016
|
2015
|
2016
|
2015
|
Operating
income
|
$51
|
$35
|
$54
|
$221
|
$197
|
EBITDA
|
61
|
45
|
65
|
262
|
243
|
Three months ended December 31,
2016 versus three months ended September 30, 2016 – EBITDA increased by
$16 million driven by the timing of
licensing revenue.
Three months ended December 31,
2016 versus three months ended December 31, 2015 – EBITDA decreased by
$4 million.
Full year ended December 31,
2016 versus full year ended December
31, 2015 – Record results as EBITDA increased by
$19 million, primarily due to
improved catalyst results.
Capital Spending and Cash Balances
Capital
expenditures, including growth projects, maintenance turnarounds,
catalyst and information technology-related expenditures, were
$567 million during the fourth
quarter 2016 and $2.2 billion for the
full year 2016. Our cash and liquid investment balance was
$2.4 billion at December 31, 2016. We repurchased 5.2 million
ordinary shares during the fourth quarter 2016 and 36.6 million
shares during 2016. There were 404 million common shares
outstanding as of December 31,
2016. The company paid dividends of $1.4 billion during 2016.
CONFERENCE CALL
LyondellBasell will host a conference
call February 3 at 11 a.m. ET. Participants on the call will
include Chief Executive Officer Bob
Patel, Executive Vice President and Chief Financial Officer
Thomas Aebischer and Vice President
of Investor Relations Doug
Pike.
The toll-free dial-in number in the U.S. is 888-677-1826. A
complete listing of toll-free numbers by country is available at
www.lyb.com/teleconference for international callers. The pass code
for all numbers is 6934553.
The slides and webcast that accompany the call will be available
at http://www.lyb.com/earnings.
A replay of the call will be available from 2 p.m. ET February
3 until March 4 at
12:59 a.m. ET. The replay
dial-in numbers are 866-467-2412 (U.S.) and +1 203-369-1448
(international). The pass code for each is 2526.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one
of the world's largest plastics, chemical and refining companies
and a member of the S&P 500. LyondellBasell (www.lyb.com)
products and technologies are used to make items that improve the
quality of life for people around the world including packaging,
electronics, automotive parts, home furnishings, construction
materials and biofuels.
FORWARD-LOOKING STATEMENTS
The statements in this
release and the related teleconference relating to matters that are
not historical facts are forward-looking statements. These
forward-looking statements are based upon assumptions of management
which are believed to be reasonable at the time made and are
subject to significant risks and uncertainties. Actual results
could differ materially based on factors including, but not limited
to, the business cyclicality of the chemical, polymers and refining
industries; the availability, cost and price volatility of raw
materials and utilities, particularly the cost of oil, natural gas,
and associated natural gas liquids; competitive product and pricing
pressures; labor conditions; our ability to attract and retain key
personnel; operating interruptions (including leaks, explosions,
fires, weather-related incidents, mechanical failure, unscheduled
downtime, supplier disruptions, labor shortages, strikes, work
stoppages or other labor difficulties, transportation
interruptions, spills and releases and other environmental risks);
the supply/demand balances for our and our joint ventures'
products, and the related effects of industry production capacities
and operating rates; our ability to achieve expected cost savings
and other synergies; our ability to successfully execute projects
and growth strategies; legal and environmental proceedings; tax
rulings, consequences or proceedings; technological developments,
and our ability to develop new products and process technologies;
potential governmental regulatory actions; political unrest and
terrorist acts; risks and uncertainties posed by international
operations, including foreign currency fluctuations; and our
ability to comply with debt covenants and service our debt.
Additional factors that could cause results to differ materially
from those described in the forward-looking statements can be found
in the "Risk Factors" section of our Form 10-K for the year ended
December 31, 2015, which can be found
at www.lyb.com on the Investor Relations page and on the Securities
and Exchange Commission's website at www.sec.gov.
INFORMATION RELATED TO FINANCIAL MEASURES
This release
makes reference to certain "non-GAAP" financial measures as defined
in Regulation G of the U.S. Securities Exchange Act of 1934, as
amended. The non-GAAP measures we have presented include
income from continuing operations excluding LCM, diluted earnings
per share excluding LCM, EBITDA and EBITDA excluding LCM. LCM
stands for "lower of cost or market," which is an accounting rule
consistent with GAAP related to the valuation of inventory.
Our inventories are stated at the lower of cost or market.
Cost is determined using the last-in, first-out ("LIFO") inventory
valuation methodology, which means that the most recently incurred
costs are charged to cost of sales and inventories are valued at
the earliest acquisition costs. Market is determined based on
an assessment of the current estimated replacement cost and selling
price of the inventory. In periods where the market price of
our inventory declines substantially, cost values of inventory may
be higher than the market value, which results in us writing down
the value of inventory to market value in accordance with the LCM
rule, consistent with GAAP. This adjustment is related to our use
of LIFO accounting and the recent decline in pricing for many of
our raw material and finished goods inventories. We report our
financial results in accordance with U.S. generally accepted
accounting principles, but believe that certain non-GAAP financial
measures, such as EBITDA and earnings and EBITDA excluding LCM,
provide useful supplemental information to investors regarding the
underlying business trends and performance of the company's ongoing
operations and are useful for period-over-period comparisons of
such operations. Non-GAAP financial measures should be considered
as a supplement to, and not as a substitute for, or superior to,
the financial measures prepared in accordance with GAAP.
EBITDA, as presented herein, may not be comparable to a
similarly titled measure reported by other companies due to
differences in the way the measure is calculated. We calculate
EBITDA as income from continuing operations plus interest expense
(net), provision for (benefit from) income taxes, and depreciation
& amortization. EBITDA should not be considered an
alternative to profit or operating profit for any period as an
indicator of our performance, or as an alternative to operating
cash flows as a measure of our liquidity. We have also
presented financial information herein exclusive of adjustments for
LCM.
Quantitative reconciliations of EBITDA to net income, the most
comparable GAAP measure, are provided in Table 8 at the end of this
release.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This
release contains time sensitive information that is accurate only
as of the time hereof. Information contained in this release is
unaudited and subject to change. LyondellBasell undertakes no
obligation to update the information presented herein except to the
extent required by law.
Table 7 -
Reconciliation of Segment Information to Consolidated Financial
Information (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
2,551
|
|
$
|
2,679
|
|
$
|
2,516
|
|
$
|
2,218
|
|
$
|
9,964
|
|
$
|
2,115
|
|
$
|
2,211
|
|
$
|
2,342
|
|
$
|
2,409
|
|
$
|
9,077
|
|
|
Olefins &
Polyolefins - EAI
|
|
2,911
|
|
|
3,061
|
|
|
2,932
|
|
|
2,672
|
|
|
11,576
|
|
|
2,578
|
|
|
2,721
|
|
|
2,634
|
|
|
2,646
|
|
|
10,579
|
|
|
Intermediates &
Derivatives
|
|
1,918
|
|
|
2,159
|
|
|
2,039
|
|
|
1,656
|
|
|
7,772
|
|
|
1,702
|
|
|
1,769
|
|
|
1,805
|
|
|
1,950
|
|
|
7,226
|
|
|
Refining
|
|
1,607
|
|
|
2,102
|
|
|
1,693
|
|
|
1,155
|
|
|
6,557
|
|
|
955
|
|
|
1,289
|
|
|
1,330
|
|
|
1,561
|
|
|
5,135
|
|
|
Technology
|
|
136
|
|
|
107
|
|
|
100
|
|
|
122
|
|
|
465
|
|
|
132
|
|
|
129
|
|
|
102
|
|
|
116
|
|
|
479
|
|
|
Other/elims
|
|
(938)
|
|
|
(963)
|
|
|
(946)
|
|
|
(752)
|
|
|
(3,599)
|
|
|
(739)
|
|
|
(791)
|
|
|
(848)
|
|
|
(935)
|
|
|
(3,313)
|
|
|
|
Continuing
Operations
|
$
|
8,185
|
|
$
|
9,145
|
|
$
|
8,334
|
|
$
|
7,071
|
|
$
|
32,735
|
|
$
|
6,743
|
|
$
|
7,328
|
|
$
|
7,365
|
|
$
|
7,747
|
|
$
|
29,183
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
934
|
|
$
|
920
|
|
$
|
740
|
|
$
|
662
|
|
$
|
3,256
|
|
$
|
707
|
|
$
|
646
|
|
$
|
582
|
|
$
|
458
|
|
$
|
2,393
|
|
|
Olefins &
Polyolefins - EAI
|
|
236
|
|
|
359
|
|
|
412
|
|
|
302
|
|
|
1,309
|
|
|
358
|
|
|
423
|
|
|
447
|
|
|
266
|
|
|
1,494
|
|
|
Intermediates &
Derivatives
|
|
271
|
|
|
405
|
|
|
403
|
|
|
145
|
|
|
1,224
|
|
|
255
|
|
|
327
|
|
|
240
|
|
|
236
|
|
|
1,058
|
|
|
Refining
|
|
74
|
|
|
119
|
|
|
52
|
|
|
(101)
|
|
|
144
|
|
|
(30)
|
|
|
(53)
|
|
|
(56)
|
|
|
40
|
|
|
(99)
|
|
|
Technology
|
|
64
|
|
|
45
|
|
|
34
|
|
|
54
|
|
|
197
|
|
|
73
|
|
|
62
|
|
|
35
|
|
|
51
|
|
|
221
|
|
|
Other
|
|
(4)
|
|
|
(3)
|
|
|
9
|
|
|
(10)
|
|
|
(8)
|
|
|
(3)
|
|
|
(2)
|
|
|
1
|
|
|
(3)
|
|
|
(7)
|
|
|
|
Continuing
Operations
|
$
|
1,575
|
|
$
|
1,845
|
|
$
|
1,650
|
|
$
|
1,052
|
|
$
|
6,122
|
|
$
|
1,360
|
|
$
|
1,403
|
|
$
|
1,249
|
|
$
|
1,048
|
|
$
|
5,060
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
86
|
|
$
|
85
|
|
$
|
87
|
|
$
|
95
|
|
$
|
353
|
|
$
|
90
|
|
$
|
88
|
|
$
|
87
|
|
$
|
97
|
|
$
|
362
|
|
|
Olefins &
Polyolefins - EAI
|
|
55
|
|
|
54
|
|
|
54
|
|
|
56
|
|
|
219
|
|
|
55
|
|
|
58
|
|
|
58
|
|
|
58
|
|
|
229
|
|
|
Intermediates &
Derivatives
|
|
60
|
|
|
56
|
|
|
55
|
|
|
62
|
|
|
233
|
|
|
70
|
|
|
69
|
|
|
62
|
|
|
68
|
|
|
269
|
|
|
Refining
|
|
74
|
|
|
40
|
|
|
41
|
|
|
41
|
|
|
196
|
|
|
43
|
|
|
40
|
|
|
40
|
|
|
40
|
|
|
163
|
|
|
Technology
|
|
12
|
|
|
12
|
|
|
11
|
|
|
11
|
|
|
46
|
|
|
10
|
|
|
11
|
|
|
10
|
|
|
10
|
|
|
41
|
|
|
|
Continuing
Operations
|
$
|
287
|
|
$
|
247
|
|
$
|
248
|
|
$
|
265
|
|
$
|
1,047
|
|
$
|
268
|
|
$
|
266
|
|
$
|
257
|
|
$
|
273
|
|
$
|
1,064
|
|
EBITDA:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
1,031
|
|
$
|
1,014
|
|
$
|
841
|
|
$
|
775
|
|
$
|
3,661
|
|
$
|
878
|
|
$
|
754
|
|
$
|
682
|
|
$
|
563
|
|
$
|
2,877
|
|
|
Olefins &
Polyolefins - EAI
|
|
357
|
|
|
492
|
|
|
549
|
|
|
427
|
|
|
1,825
|
|
|
509
|
|
|
576
|
|
|
584
|
|
|
398
|
|
|
2,067
|
|
|
Intermediates &
Derivatives
|
|
337
|
|
|
466
|
|
|
460
|
|
|
212
|
|
|
1,475
|
|
|
326
|
|
|
397
|
|
|
304
|
|
|
306
|
|
|
1,333
|
|
|
Refining
|
|
149
|
|
|
159
|
|
|
93
|
|
|
(59)
|
|
|
342
|
|
|
14
|
|
|
(13)
|
|
|
(10)
|
|
|
81
|
|
|
72
|
|
|
Technology
|
|
76
|
|
|
57
|
|
|
45
|
|
|
65
|
|
|
243
|
|
|
83
|
|
|
73
|
|
|
45
|
|
|
61
|
|
|
262
|
|
|
Other
|
|
2
|
|
|
(2)
|
|
|
13
|
|
|
(26)
|
|
|
(13)
|
|
|
(3)
|
|
|
(4)
|
|
|
1
|
|
|
(3)
|
|
|
(9)
|
|
|
|
Continuing
Operations
|
$
|
1,952
|
|
$
|
2,186
|
|
$
|
2,001
|
|
$
|
1,394
|
|
$
|
7,533
|
|
$
|
1,807
|
|
$
|
1,783
|
|
$
|
1,606
|
|
$
|
1,406
|
|
$
|
6,602
|
|
Capital,
turnarounds and IT deferred spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
149
|
|
$
|
140
|
|
$
|
159
|
|
$
|
220
|
|
$
|
668
|
|
$
|
303
|
|
$
|
339
|
|
$
|
384
|
|
$
|
350
|
|
$
|
1,376
|
|
|
Olefins &
Polyolefins - EAI
|
|
38
|
|
|
27
|
|
|
49
|
|
|
72
|
|
|
186
|
|
|
81
|
|
|
60
|
|
|
48
|
|
|
72
|
|
|
261
|
|
|
Intermediates &
Derivatives
|
|
76
|
|
|
76
|
|
|
135
|
|
|
154
|
|
|
441
|
|
|
76
|
|
|
80
|
|
|
90
|
|
|
87
|
|
|
333
|
|
|
Refining
|
|
33
|
|
|
28
|
|
|
23
|
|
|
24
|
|
|
108
|
|
|
57
|
|
|
71
|
|
|
51
|
|
|
45
|
|
|
224
|
|
|
Technology
|
|
6
|
|
|
3
|
|
|
7
|
|
|
8
|
|
|
24
|
|
|
6
|
|
|
9
|
|
|
9
|
|
|
12
|
|
|
36
|
|
|
Other
|
|
4
|
|
|
4
|
|
|
- -
|
|
|
5
|
|
|
13
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
1
|
|
|
13
|
|
|
|
Continuing
Operations
|
$
|
306
|
|
$
|
278
|
|
$
|
373
|
|
$
|
483
|
|
$
|
1,440
|
|
$
|
527
|
|
$
|
563
|
|
$
|
586
|
|
$
|
567
|
|
$
|
2,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
EBITDA as presented
herein includes the impacts of pre-tax LCM charges of $92 million,
$181 million and $284 million for the first, third and fourth
quarters of 2015, respectively. EBITDA for the second quarter of
2015 includes a pre-tax LCM
benefit of $9 million for the partial reversal of the first quarter
2015 LCM adjustment. EBITDA for the first quarter of 2016 includes
pre-tax LCM adjustments of $68 million and a $78 million
pre-tax gain on the sale of
our wholly owned Argentine subsidiary, respectively. Second quarter
2016 EBITDA includes a pre-tax LCM benefit of $68 million for the
reversal of the first quarter 2016 LCM adjustment due to
price recoveries during the
period. Fourth quarter 2016 EBITDA also included a pre-tax LCM
adjustment of $29 million. See Tables 2 through 6 for LCM
adjustments recorded for each segment.
|
(b)
|
See Table 8 for
EBITDA calculation.
|
Table 8 - EBITDA
Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income(a)
|
$
|
1,164
|
|
$
|
1,329
|
|
$
|
1,186
|
|
$
|
795
|
|
$
|
4,474
|
|
$
|
1,030
|
|
$
|
1,091
|
|
$
|
953
|
|
$
|
763
|
|
$
|
3,837
|
|
(Income) loss from
discontinued operations, net of tax
|
|
3
|
|
|
(3)
|
|
|
3
|
|
|
2
|
|
|
5
|
|
|
- -
|
|
|
1
|
|
|
2
|
|
|
7
|
|
|
10
|
|
Income from
continuing operations(a)
|
|
1,167
|
|
|
1,326
|
|
|
1,189
|
|
|
797
|
|
|
4,479
|
|
|
1,030
|
|
|
1,092
|
|
|
955
|
|
|
770
|
|
|
3,847
|
|
|
Provision for income
taxes
|
|
440
|
|
|
541
|
|
|
487
|
|
|
262
|
|
|
1,730
|
|
|
432
|
|
|
346
|
|
|
326
|
|
|
282
|
|
|
1,386
|
|
|
Depreciation and
amortization
|
|
287
|
|
|
247
|
|
|
248
|
|
|
265
|
|
|
1,047
|
|
|
268
|
|
|
266
|
|
|
257
|
|
|
273
|
|
|
1,064
|
|
|
Interest expense,
net
|
|
58
|
|
|
72
|
|
|
77
|
|
|
70
|
|
|
277
|
|
|
77
|
|
|
79
|
|
|
68
|
|
|
81
|
|
|
305
|
|
EBITDA(b)
|
$
|
1,952
|
|
$
|
2,186
|
|
$
|
2,001
|
|
$
|
1,394
|
|
$
|
7,533
|
|
$
|
1,807
|
|
$
|
1,783
|
|
$
|
1,606
|
|
$
|
1,406
|
|
$
|
6,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Amounts presented
herein include after-tax LCM charges of $58 million, $114 million
and $185 million in the first, third and fourth quarters of 2015,
respectively. The second quarter of 2015 includes an after-tax
benefit of $6 million for the
partial reversal of the first quarter 2015 LCM adjustment resulting
from price recoveries during the period. The first quarter of 2016
includes an after-tax LCM charge of $47 million and a $78
million after-tax gain related to
the sale of our wholly owned Argentine subsidiary. The second
quarter of 2016 includes an after-tax benefit of $47 million for
the reversal of the first quarter 2016 LCM adjustment due to
price recoveries during the period. The
fourth quarter of 2016 also includes an $18 million after tax LCM
charge.
|
(b)
|
EBITDA as presented
herein includes the impact of pre-tax LCM charges of $92 million,
$181 million and $284 million for the first, third and fourth
quarters of 2015, respectively. EBITDA for the second quarter of
2015 includes a pre-tax LCM
benefit of $9 million for the partial reversal of the first quarter
2015 LCM adjustment. The first quarter of 2016 includes a pre-tax
LCM charge of $68 million and a pre-tax gain of $78 million on
the sale of our wholly owned
Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax
LCM benefit of $68 million for the reversal of the first quarter
2016 LCM adjustment. The fourth quarter of 2016 also
includes a $29 million pre-tax LCM
charge.
|
Table 9 - Selected
Segment Operating Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Olefins and
Polyolefins - Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene
produced
|
|
2,364
|
|
2,415
|
|
2,514
|
|
2,391
|
|
9,684
|
|
2,392
|
|
1,899
|
|
1,939
|
|
2,173
|
|
8,403
|
|
|
|
Propylene
produced
|
|
805
|
|
740
|
|
697
|
|
798
|
|
3,040
|
|
832
|
|
748
|
|
575
|
|
660
|
|
2,815
|
|
|
|
Polyethylene
sold
|
|
1,473
|
|
1,575
|
|
1,577
|
|
1,578
|
|
6,203
|
|
1,554
|
|
1,426
|
|
1,517
|
|
1,485
|
|
5,982
|
|
|
|
Polypropylene
sold
|
|
627
|
|
698
|
|
662
|
|
606
|
|
2,593
|
|
612
|
|
582
|
|
659
|
|
623
|
|
2,476
|
|
|
Benchmark Market
Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Texas
Intermediate crude oil (USD per barrel)
|
|
48.57
|
|
57.95
|
|
45.36
|
|
42.16
|
|
48.71
|
|
33.63
|
|
46.01
|
|
44.94
|
|
49.29
|
|
43.56
|
|
|
|
Light Louisiana Sweet
("LLS") crude oil (USD per barrel)
|
|
52.84
|
|
62.93
|
|
50.20
|
|
43.53
|
|
52.36
|
|
35.34
|
|
47.39
|
|
46.52
|
|
50.60
|
|
45.03
|
|
|
|
Houston Ship Channel
natural gas (USD per million BTUs)
|
|
2.76
|
|
2.76
|
|
2.72
|
|
2.11
|
|
2.57
|
|
1.93
|
|
2.06
|
|
2.79
|
|
3.01
|
|
2.45
|
|
|
|
U.S. weighted average
cost of ethylene production (cents/pound)
|
|
10.2
|
|
9.7
|
|
9.6
|
|
10.9
|
|
10.1
|
|
9.8
|
|
12.0
|
|
10.6
|
|
14.3
|
|
11.7
|
|
|
|
U.S. ethylene
(cents/pound)
|
|
34.8
|
|
34.2
|
|
30.3
|
|
27.5
|
|
31.7
|
|
26.7
|
|
30.3
|
|
33.0
|
|
32.7
|
|
30.7
|
|
|
|
U.S. polyethylene
[high density] (cents/pound)
|
|
65.7
|
|
67.3
|
|
64.3
|
|
57.0
|
|
63.6
|
|
52.3
|
|
59.0
|
|
60.7
|
|
58.3
|
|
57.6
|
|
|
|
U.S. propylene
(cents/pound)
|
|
49.7
|
|
41.7
|
|
33.2
|
|
31.3
|
|
39.0
|
|
31.0
|
|
32.7
|
|
37.8
|
|
36.2
|
|
34.4
|
|
|
|
U.S. polypropylene
[homopolymer] (cents/pound)
|
|
67.7
|
|
61.7
|
|
59.3
|
|
62.7
|
|
62.8
|
|
67.8
|
|
61.7
|
|
60.2
|
|
55.8
|
|
61.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins and
Polyolefins - Europe, Asia, International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene
produced
|
|
1,007
|
|
1,047
|
|
944
|
|
978
|
|
3,976
|
|
950
|
|
941
|
|
1,066
|
|
946
|
|
3,903
|
|
|
|
Propylene
produced
|
|
600
|
|
632
|
|
575
|
|
575
|
|
2,382
|
|
555
|
|
577
|
|
649
|
|
563
|
|
2,344
|
|
|
|
Polyethylene
sold
|
|
1,533
|
|
1,360
|
|
1,304
|
|
1,379
|
|
5,576
|
|
1,434
|
|
1,386
|
|
1,315
|
|
1,330
|
|
5,465
|
|
|
|
Polypropylene
sold
|
|
1,817
|
|
1,529
|
|
1,673
|
|
1,757
|
|
6,776
|
|
1,773
|
|
1,617
|
|
1,509
|
|
1,582
|
|
6,481
|
|
|
Benchmark Market
Prices (€0.01 per pound)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Europe
weighted average cost of ethylene production
|
|
22.9
|
|
23.2
|
|
14.4
|
|
22.5
|
|
20.8
|
|
16.3
|
|
21.2
|
|
17.9
|
|
23.8
|
|
19.8
|
|
|
|
Western Europe
ethylene
|
|
39.3
|
|
47.1
|
|
46.6
|
|
41.4
|
|
43.6
|
|
38.4
|
|
41.1
|
|
42.3
|
|
43.1
|
|
41.2
|
|
|
|
Western Europe
polyethylene [high density]
|
|
45.2
|
|
60.6
|
|
61.2
|
|
56.9
|
|
56.0
|
|
55.4
|
|
57.6
|
|
55.7
|
|
55.2
|
|
56.0
|
|
|
|
Western Europe
propylene
|
|
37.1
|
|
44.4
|
|
41.7
|
|
31.0
|
|
38.5
|
|
26.3
|
|
28.8
|
|
30.7
|
|
33.3
|
|
29.8
|
|
|
|
Western Europe
polypropylene [homopolymer]
|
|
49.8
|
|
62.5
|
|
59.3
|
|
47.4
|
|
54.7
|
|
46.5
|
|
49.5
|
|
49.5
|
|
51.7
|
|
49.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediates and
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propylene oxide and
derivatives
|
|
870
|
|
751
|
|
697
|
|
682
|
|
3,000
|
|
793
|
|
743
|
|
752
|
|
749
|
|
3,037
|
|
|
|
Intermediate
Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene oxide and
derivatives
|
|
268
|
|
312
|
|
282
|
|
237
|
|
1,099
|
|
301
|
|
233
|
|
224
|
|
329
|
|
1,087
|
|
|
|
|
Styrene
monomer
|
|
903
|
|
735
|
|
904
|
|
889
|
|
3,431
|
|
917
|
|
933
|
|
911
|
|
933
|
|
3,694
|
|
|
|
|
Acetyls
|
|
547
|
|
810
|
|
733
|
|
623
|
|
2,713
|
|
702
|
|
821
|
|
751
|
|
776
|
|
3,050
|
|
|
|
Oxyfuels and Related
Products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TBA
Intermediates
|
|
433
|
|
321
|
|
421
|
|
371
|
|
1,546
|
|
415
|
|
391
|
|
410
|
|
361
|
|
1,577
|
|
|
|
Volumes (million
gallons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MTBE/ETBE
|
|
229
|
|
299
|
|
268
|
|
258
|
|
1,054
|
|
270
|
|
278
|
|
298
|
|
264
|
|
1,110
|
|
|
|
Benchmark Market
Margins (cents per gallon)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MTBE - Northwest
Europe
|
|
64.0
|
|
106.0
|
|
119.0
|
|
49.8
|
|
85.1
|
|
44.4
|
|
78.7
|
|
55.3
|
|
50.6
|
|
57.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (thousands
of barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heavy crude oil
processing rate
|
|
241
|
|
255
|
|
249
|
|
206
|
|
238
|
|
186
|
|
183
|
|
209
|
|
228
|
|
201
|
|
|
Benchmark Market
Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light crude oil -
2-1-1
|
|
15.02
|
|
16.42
|
|
15.29
|
|
9.44
|
|
14.04
|
|
8.67
|
|
11.52
|
|
11.46
|
|
11.20
|
|
10.73
|
|
|
|
Light crude oil -
Maya differential
|
|
8.72
|
|
7.56
|
|
7.48
|
|
9.11
|
|
8.26
|
|
9.19
|
|
9.55
|
|
7.52
|
|
7.80
|
|
8.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: LYB and
third party consultants
|
Note: Benchmark
market prices for U.S. and Western Europe polyethylene and
polypropylene reflect discounted prices. Volumes presented
represent third party sales of selected key products.
|
Table 10 -
Unaudited Income Statement Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other
operating revenues
|
$
|
8,185
|
|
$
|
9,145
|
|
$
|
8,334
|
|
$
|
7,071
|
|
$
|
32,735
|
|
$
|
6,743
|
|
$
|
7,328
|
|
$
|
7,365
|
|
$
|
7,747
|
|
$
|
29,183
|
|
Cost of
sales(a)
|
|
6,379
|
|
|
7,047
|
|
|
6,465
|
|
|
5,792
|
|
|
25,683
|
|
|
5,166
|
|
|
5,702
|
|
|
5,903
|
|
|
6,420
|
|
|
23,191
|
|
Selling, general and
administrative expenses
|
|
205
|
|
|
228
|
|
|
194
|
|
|
201
|
|
|
828
|
|
|
193
|
|
|
199
|
|
|
188
|
|
|
253
|
|
|
833
|
|
Research and
development expenses
|
|
26
|
|
|
25
|
|
|
25
|
|
|
26
|
|
|
102
|
|
|
24
|
|
|
24
|
|
|
25
|
|
|
26
|
|
|
99
|
|
|
Operating
income(a)
|
|
1,575
|
|
|
1,845
|
|
|
1,650
|
|
|
1,052
|
|
|
6,122
|
|
|
1,360
|
|
|
1,403
|
|
|
1,249
|
|
|
1,048
|
|
|
5,060
|
|
Income from equity
investments
|
|
69
|
|
|
90
|
|
|
93
|
|
|
87
|
|
|
339
|
|
|
91
|
|
|
117
|
|
|
81
|
|
|
78
|
|
|
367
|
|
Interest expense,
net
|
|
(58)
|
|
|
(72)
|
|
|
(77)
|
|
|
(70)
|
|
|
(277)
|
|
|
(77)
|
|
|
(79)
|
|
|
(68)
|
|
|
(81)
|
|
|
(305)
|
|
Other income
(expense), net(b)
|
|
21
|
|
|
4
|
|
|
10
|
|
|
(10)
|
|
|
25
|
|
|
88
|
|
|
(3)
|
|
|
19
|
|
|
7
|
|
|
111
|
|
|
Income from
continuing operations before income taxes(a)
(b)
|
|
1,607
|
|
|
1,867
|
|
|
1,676
|
|
|
1,059
|
|
|
6,209
|
|
|
1,462
|
|
|
1,438
|
|
|
1,281
|
|
|
1,052
|
|
|
5,233
|
|
Provision for income
taxes
|
|
440
|
|
|
541
|
|
|
487
|
|
|
262
|
|
|
1,730
|
|
|
432
|
|
|
346
|
|
|
326
|
|
|
282
|
|
|
1,386
|
|
|
Income from
continuing operations(c)
|
|
1,167
|
|
|
1,326
|
|
|
1,189
|
|
|
797
|
|
|
4,479
|
|
|
1,030
|
|
|
1,092
|
|
|
955
|
|
|
770
|
|
|
3,847
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(3)
|
|
|
3
|
|
|
(3)
|
|
|
(2)
|
|
|
(5)
|
|
|
- -
|
|
|
(1)
|
|
|
(2)
|
|
|
(7)
|
|
|
(10)
|
|
|
|
Net
income(c)
|
|
1,164
|
|
|
1,329
|
|
|
1,186
|
|
|
795
|
|
|
4,474
|
|
|
1,030
|
|
|
1,091
|
|
|
953
|
|
|
763
|
|
|
3,837
|
|
Net (income) loss
attributable to non-controlling interests
|
|
2
|
|
|
1
|
|
|
(1)
|
|
|
- -
|
|
|
2
|
|
|
- -
|
|
|
- -
|
|
|
(1)
|
|
|
- -
|
|
|
(1)
|
|
|
|
Net income
attributable to the Company
shareholders(c)
|
$
|
1,166
|
|
$
|
1,330
|
|
$
|
1,185
|
|
$
|
795
|
|
$
|
4,476
|
|
$
|
1,030
|
|
$
|
1,091
|
|
$
|
952
|
|
$
|
763
|
|
$
|
3,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Amounts presented
herein include pre-tax LCM charges of $92 million, $181 million and
$284 million for the first, third and fourth quarters of 2015,
respectively. The second quarter of 2015 includes a pre-tax
LCM benefit of $9 million for the
partial reversal of the first quarter 2015 LCM adjustment. The
first and fourth quarters of 2016 include pre-tax LCM charges of
$68 million and $29 million, respectively. Second quarter
2016 EBITDA includes a pre-tax LCM
benefit of $68 million for the reversal of the first quarter 2016
LCM adjustment due to price recoveries during the
period.
|
(b)
|
Includes a pre-tax
gain of $78 million on the sale of our wholly owned Argentine
subsidiary in the second quarter of 2016.
|
(c)
|
Amounts presented
herein include after-tax LCM charges of $58 million, $114 million
and $185 million in the first, third and fourth quarters of 2015,
respectively. The second quarter of 2015 includes an after-tax
benefit of $6 million for the
partial reversal of the first quarter 2015 LCM adjustment resulting
from price recoveries during the period. The first and fourth
quarters of 2016 include after-tax LCM charges of $47 million and
$18 million, respectively,
and an after-tax gain of $78 million on the sale of our wholly
owned Argentine subsidiary. Second quarter 2016 EBITDA includes an
after tax LCM benefit of $47 million for the reversal of the first
quarter 2016 LCM
adjustment.
|
Table 11 - Charges
(Benefits) Included in Income from Continuing
Operations
|
|
|
|
2015
|
|
2016
|
Millions of U.S.
dollars (except share data)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Annual
Impact
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Annual
Impact
|
Pretax charges
(benefits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Out of period tax
adjustment
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
61
|
|
$
|
74
|
|
Gain on sale of
wholly owned subsidiary
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
(78)
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
(78)
|
|
Lower of cost or
market inventory adjustment
|
|
92
|
|
|
(9)
|
|
|
181
|
|
|
284
|
|
|
548
|
|
|
68
|
|
|
(68)
|
|
|
- -
|
|
|
29
|
|
|
29
|
|
Pension settlement
charge
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
58
|
|
|
58
|
|
Emission allowance
credits, amortization
|
|
35
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
35
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
Total pretax charges
(benefits)
|
|
127
|
|
|
(9)
|
|
|
181
|
|
|
284
|
|
|
583
|
|
|
(10)
|
|
|
(68)
|
|
|
- -
|
|
|
148
|
|
|
83
|
Provision for
(benefit from) income tax related to these items
|
|
(47)
|
|
|
3
|
|
|
(67)
|
|
|
(99)
|
|
|
(210)
|
|
|
(21)
|
|
|
21
|
|
|
- -
|
|
|
(32)
|
|
|
(32)
|
After-tax effect of
net charges (benefits)
|
$
|
80
|
|
$
|
(6)
|
|
$
|
114
|
|
$
|
185
|
|
$
|
373
|
|
$
|
(31)
|
|
$
|
(47)
|
|
$
|
- -
|
|
$
|
116
|
|
$
|
51
|
Effect on diluted
earnings per share
|
$
|
(0.17)
|
|
$
|
0.02
|
|
$
|
(0.25)
|
|
$
|
(0.42)
|
|
$
|
(0.80)
|
|
$
|
0.07
|
|
$
|
0.11
|
|
$
|
- -
|
|
$
|
(0.29)
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 12 -
Unaudited Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2016
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
Q4
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
1,468
|
|
$
|
1,446
|
|
$
|
1,768
|
|
$
|
1,160
|
|
$
|
5,842
|
|
$
|
1,300
|
|
$
|
1,261
|
|
$
|
1,332
|
|
$
|
1,713
|
|
$
|
5,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(443)
|
|
|
(727)
|
|
|
67
|
|
|
52
|
|
|
(1,051)
|
|
|
(597)
|
|
|
(471)
|
|
|
(459)
|
|
|
(770)
|
|
|
(2,297)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(401)
|
|
|
(1,021)
|
|
|
(1,684)
|
|
|
(1,744)
|
|
|
(4,850)
|
|
|
(333)
|
|
|
(1,039)
|
|
|
(1,195)
|
|
|
(782)
|
|
|
(3,349)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 13 -
Unaudited Balance Sheet Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
(Millions of U.S.
dollars)
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,616
|
|
$
|
1,325
|
|
$
|
1,474
|
|
$
|
924
|
|
$
|
1,318
|
|
$
|
1,060
|
|
$
|
740
|
|
$
|
875
|
|
Restricted
cash
|
|
2
|
|
|
3
|
|
|
1
|
|
|
7
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
3
|
|
Short-term
investments
|
|
1,478
|
|
|
1,989
|
|
|
1,602
|
|
|
1,064
|
|
|
1,332
|
|
|
1,023
|
|
|
1,090
|
|
|
1,147
|
|
Accounts receivable,
net
|
|
3,089
|
|
|
3,373
|
|
|
2,924
|
|
|
2,517
|
|
|
2,683
|
|
|
2,806
|
|
|
2,852
|
|
|
2,842
|
|
Inventories
|
|
4,267
|
|
|
4,179
|
|
|
4,138
|
|
|
4,051
|
|
|
3,978
|
|
|
4,009
|
|
|
4,015
|
|
|
3,809
|
|
Prepaid expenses and
other current assets(a)
|
|
1,195
|
|
|
1,121
|
|
|
1,059
|
|
|
1,226
|
|
|
1,009
|
|
|
1,081
|
|
|
852
|
|
|
923
|
|
|
|
Total current
assets
|
|
11,647
|
|
|
11,990
|
|
|
11,198
|
|
|
9,789
|
|
|
10,324
|
|
|
9,983
|
|
|
9,553
|
|
|
9,599
|
|
Property, plant and
equipment, net
|
|
8,430
|
|
|
8,636
|
|
|
8,793
|
|
|
8,991
|
|
|
9,373
|
|
|
9,681
|
|
|
10,057
|
|
|
10,137
|
|
Investments and
long-term receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in PO
joint ventures
|
|
373
|
|
|
357
|
|
|
357
|
|
|
397
|
|
|
398
|
|
|
390
|
|
|
399
|
|
|
415
|
|
|
|
Equity
investments
|
|
1,581
|
|
|
1,612
|
|
|
1,602
|
|
|
1,608
|
|
|
1,734
|
|
|
1,610
|
|
|
1,681
|
|
|
1,575
|
|
|
|
Other investments and
long-term receivables
|
|
38
|
|
|
126
|
|
|
125
|
|
|
122
|
|
|
18
|
|
|
18
|
|
|
17
|
|
|
20
|
|
Goodwill
|
|
533
|
|
|
543
|
|
|
543
|
|
|
536
|
|
|
548
|
|
|
542
|
|
|
543
|
|
|
528
|
|
Intangible assets,
net
|
|
695
|
|
|
671
|
|
|
644
|
|
|
640
|
|
|
618
|
|
|
588
|
|
|
562
|
|
|
550
|
|
Other
assets(a)
|
|
637
|
|
|
600
|
|
|
605
|
|
|
674
|
|
|
559
|
|
|
623
|
|
|
607
|
|
|
618
|
|
|
|
Total
assets
|
$
|
23,934
|
|
$
|
24,535
|
|
$
|
23,867
|
|
$
|
22,757
|
|
$
|
23,572
|
|
$
|
23,435
|
|
$
|
23,419
|
|
$
|
23,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
|
4
|
|
$
|
3
|
|
$
|
3
|
|
$
|
4
|
|
$
|
4
|
|
$
|
4
|
|
$
|
3
|
|
$
|
2
|
|
Short-term
debt
|
|
514
|
|
|
582
|
|
|
573
|
|
|
353
|
|
|
594
|
|
|
616
|
|
|
621
|
|
|
594
|
|
Accounts
payable
|
|
2,631
|
|
|
2,755
|
|
|
2,450
|
|
|
2,182
|
|
|
2,243
|
|
|
2,357
|
|
|
2,329
|
|
|
2,529
|
|
Accrued
liabilities
|
|
1,482
|
|
|
1,455
|
|
|
1,784
|
|
|
1,810
|
|
|
1,600
|
|
|
1,374
|
|
|
1,357
|
|
|
1,415
|
|
Deferred income
taxes(a)
|
|
429
|
|
|
434
|
|
|
383
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
|
Total current
liabilities
|
|
5,060
|
|
|
5,229
|
|
|
5,193
|
|
|
4,349
|
|
|
4,441
|
|
|
4,351
|
|
|
4,310
|
|
|
4,540
|
|
Long-term
debt
|
|
7,677
|
|
|
7,658
|
|
|
7,674
|
|
|
7,671
|
|
|
8,504
|
|
|
8,485
|
|
|
8,464
|
|
|
8,385
|
|
Other
liabilities
|
|
2,038
|
|
|
2,063
|
|
|
2,044
|
|
|
2,036
|
|
|
2,125
|
|
|
2,143
|
|
|
2,151
|
|
|
2,113
|
|
Deferred income
taxes(a)
|
|
1,653
|
|
|
1,635
|
|
|
1,604
|
|
|
2,127
|
|
|
2,134
|
|
|
2,149
|
|
|
2,387
|
|
|
2,331
|
|
Stockholders'
equity
|
|
7,478
|
|
|
7,927
|
|
|
7,328
|
|
|
6,550
|
|
|
6,344
|
|
|
6,283
|
|
|
6,082
|
|
|
6,048
|
|
Non-controlling
interests
|
|
28
|
|
|
23
|
|
|
24
|
|
|
24
|
|
|
24
|
|
|
24
|
|
|
25
|
|
|
25
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
23,934
|
|
$
|
24,535
|
|
$
|
23,867
|
|
$
|
22,757
|
|
$
|
23,572
|
|
$
|
23,435
|
|
$
|
23,419
|
|
$
|
23,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lyondellbasell-reports-2016-earnings-300401852.html
SOURCE LyondellBasell Industries