HOUSTON and LONDON, July 28,
2017 /PRNewswire/ --
Second Quarter 2017 Highlights
- Income from continuing operations: $1.1
billion
- EBITDA: $2.0 billion
- Record quarterly diluted earnings per share: $2.82 per share
- Record quarterly EBITDA for Olefins and Polyolefins -
Europe, Asia, and International: $699 million
- Strong volume growth with a 27% increase in global ethylene
production and a 45% improvement in refining crude volumes over
prior year
- Dividends and share repurchases totaled $0.8 billion; repurchased 5.4 million shares
during the second quarter
- Increased second quarter 2017 dividend by 6% to $0.90 per share
Comparisons with the prior quarter and second quarter
2016 are available in the following table:
Table 1 - Earnings
Summary
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June
30,
|
March
31,
|
June
30,
|
June
30,
|
|
Millions of
U.S. dollars (except share data)
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Sales and other
operating revenues
|
$8,403
|
$8,430
|
$7,328
|
$16,833
|
$14,071
|
|
Net
income(a)
|
1,130
|
797
|
1,091
|
1,927
|
2,121
|
|
Income from
continuing operations(b)
|
1,134
|
805
|
1,092
|
1,939
|
2,122
|
|
Diluted earnings per
share (U.S. dollars):
|
|
|
|
|
|
|
|
Net
income(c)
|
2.81
|
1.98
|
2.56
|
4.78
|
4.93
|
|
|
Income from
continuing operations(b)
|
2.82
|
2.00
|
2.56
|
4.81
|
4.93
|
|
Diluted share count
(millions)
|
402
|
403
|
425
|
403
|
429
|
|
EBITDA(d)
|
1,970
|
1,617
|
1,783
|
3,587
|
3,590
|
|
|
|
|
|
|
|
|
|
Excluding LCM
Impact:
|
|
|
|
|
|
|
LCM benefit,
pre-tax(e)
|
- -
|
- -
|
(68)
|
- -
|
- -
|
|
Income from
continuing operations(b)
|
1,134
|
805
|
1,045
|
1,939
|
2,122
|
|
Diluted earnings per
share (U.S. dollars):
|
|
|
|
|
|
|
|
Income from
continuing operations(b)
|
2.82
|
2.00
|
2.45
|
4.81
|
4.93
|
|
EBITDA(d)
|
1,970
|
1,617
|
1,715
|
3,587
|
3,590
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes net (income)
loss attributable to non-controlling interests and loss from
discontinued operations, net of tax. See Table 10.
|
(b)
|
See Table 11 for
charges and benefits to income from continuing
operations.
|
(c)
|
Includes diluted
earnings (loss) per share attributable to discontinued
operations.
|
(d)
|
See the end of this
release for an explanation of the Company's use of EBITDA and Table
8 for reconciliations of EBITDA to net income and income from continuing operations.
|
(e)
|
LCM stands for lower
of cost or market. An explanation of LCM and why we have excluded
it from our financial information in this press release can be found at the end of this
press release under "Information Related to Financial
Measures."
|
LyondellBasell Industries (NYSE: LYB) today announced earnings
from continuing operations for the second quarter 2017 of
$1.1 billion, or $2.82 per share. Second quarter 2017 EBITDA
was $2.0 billion.
"LyondellBasell's second quarter results demonstrate the value
of our investments in capacity expansions and asset maintenance to
deliver record quarterly earnings per share for the company.
During the second quarter, our ethylene crackers in the United States and Europe operated at 98 percent and the refinery
operated at 99 percent of nameplate capacity. Second quarter
2017 ethylene production volumes increased by 34 percent in the
Americas and 13 percent in Europe
compared to the second quarter 2016. Our strong operating
rates were met with solid demand to drive improvements in global
Olefins and Polyolefins chain margins and deliver record quarterly
EBITDA for our Olefins and Polyolefins – Europe, Asia
and International segment," said Bob
Patel, LyondellBasell CEO.
"In addition to our earnings strength, we generated $1.2 billion of free cash flow during the second
quarter, increased our quarterly dividend by 6 percent and advanced
our organic growth and share repurchase programs," said Patel.
OUTLOOK
"More than 25 percent of the first wave of new United States ethylene capacity is now in the
market and global olefin and polyolefin industry conditions remain
favorable during July. With no major maintenance planned
for the remainder of 2017, we are well positioned to deliver strong
performance from LyondellBasell's global assets," Patel
said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING
SEGMENT
LyondellBasell manages operations through five operating
segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and
Polyolefins – Europe, Asia and International (EAI); 3) Intermediates
and Derivatives; 4) Refining; and 5) Technology.
The following comments and analysis represent underlying
business activity and are exclusive of LCM inventory
adjustments. LCM stands for lower of cost or market. An
explanation of LCM and why we have excluded it from our financial
information in this press release can be found at the end of this
press release under "Information Related to Financial
Measures."
Olefins and Polyolefins - Americas (O&P-Americas) –
Our O&P–Americas segment produces and markets olefins and
co-products, polyethylene and polypropylene.
|
|
|
|
|
|
|
Table 2 -
O&P–Americas Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
June
30,
|
March
31,
|
June
30,
|
June
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$738
|
$559
|
$646
|
$1,297
|
$1,353
|
|
EBITDA
|
859
|
723
|
754
|
1,582
|
1,632
|
|
LCM charges
(benefits), pre-tax
|
- -
|
- -
|
- -
|
- -
|
- -
|
|
EBITDA excluding LCM
adjustments
|
859
|
723
|
754
|
1,582
|
1,632
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
2017 versus three months ended March
31, 2017 – EBITDA increased $136
million versus the first quarter 2017. First quarter
2017 included a $31 million gain on
the sale of property in Lake Charles, Louisiana. Compared to
the prior period, olefin results increased approximately
$100 million. Ethylene margins
improved by approximately 3 cents per
pound with declining feedstock prices for propane, butane and heavy
liquids. Combined polyolefin results increased by
approximately $80 million.
Polyethylene and polypropylene spreads increased by 4 cents per pound and 5
cents per pound respectively, due to ethylene and propylene
feedstock price decreases and higher polyethylene pricing, which
was partially offset by small volume declines in
polyethylene. Joint venture equity income decreased by
$3 million.
Three months ended June 30,
2017 versus three months ended June
30, 2016 – EBITDA increased $105
million versus the second quarter 2016. Olefin results
increased by approximately $150
million primarily due to an increase in ethylene production
of approximately 34 percent due to planned maintenance in the
second quarter of 2016. Combined polyolefin results declined
approximately $25 million primarily
due to declining margins in polypropylene partially offset by
increased polypropylene sales volumes. Joint venture equity
income declined by $9
million.
Olefins and Polyolefins - Europe, Asia,
and International (O&P-EAI) – Our O&P–EAI segment
produces and markets olefins and co-products, polyethylene and
polypropylene, including polypropylene compounds.
Table 3 -
O&P–EAI Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
June
30,
|
March
31,
|
June
30,
|
June
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$549
|
$401
|
$423
|
$950
|
$781
|
|
EBITDA
|
699
|
529
|
576
|
1,228
|
1,085
|
|
LCM benefit,
pretax
|
- -
|
- -
|
(40)
|
- -
|
- -
|
|
EBITDA excluding LCM
adjustments
|
699
|
529
|
536
|
1,228
|
1,085
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
2017 versus three months ended March
31, 2017 – EBITDA increased by $170 million versus the first quarter 2017.
Olefin results increased approximately $135
million as ethylene margins improved by 9 cents per pound primarily due to lower
feedstock costs. Combined polyolefin results increased
approximately $15 million primarily
due to improved margins for polypropylene and polypropylene
compounds. Joint venture equity income was relatively
unchanged.
Three months ended June 30,
2017 versus three months ended June
30, 2016 – EBITDA increased by $163 million versus the second quarter 2016,
excluding an unfavorable $40 million
quarter to quarter variance as a result of a 2016 LCM inventory
adjustment. Olefin results increased by approximately $180 million as a result of improved ethylene
margins and increased sales volumes due to planned maintenance
which occurred in the second quarter of 2016. Combined
polyolefin results declined by approximately $15 million primarily due to lower polyethylene
spreads. Joint venture equity income declined by $29 million primarily due to declining polymer
spreads and reduced volumes.
Intermediates and Derivatives (I&D) – Our
I&D segment produces and markets propylene oxide (PO) and its
derivatives, oxyfuels and related products and intermediate
chemicals, such as styrene monomer, acetyls, ethylene oxide and
ethylene glycol.
Table 4 - I&D
Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June
30,
|
March
31,
|
June
30,
|
June
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$270
|
$269
|
$327
|
$539
|
$582
|
|
EBITDA
|
339
|
339
|
397
|
678
|
723
|
|
LCM benefit,
pre-tax
|
- -
|
- -
|
(28)
|
- -
|
- -
|
|
EBITDA excluding LCM
adjustments
|
339
|
339
|
369
|
678
|
723
|
|
|
|
|
|
|
|
|
Three months ended June 30,
2017 versus three months ended March
31, 2017 – EBITDA was unchanged relative to the
first quarter 2017, including the impact from first quarter charges
related to the recovery of precious metals after catalyst
changes. Excluding the precious metal adjustments, PO and
derivatives results declined approximately $5 million, primarily due to lower volumes
resulting from planned maintenance at our plant in Botlek, The
Netherlands. After excluding the precious metal adjustments,
intermediate chemicals results declined approximately $30 million primarily due to a 2 cent per pound decrease in styrene margins and
a decrease in methanol volumes due to planned maintenance.
Oxyfuels and related products results were relatively unchanged as
reduced volumes from the Botlek maintenance offset seasonal margin
improvements. Joint venture equity income was relatively
unchanged.
Three months ended June, 30 2017 versus three months ended
June 30, 2016 – EBITDA decreased
$30 million versus the second quarter
2016, excluding an unfavorable $28
million variance as a result of an LCM inventory
adjustment. PO and derivatives results were relatively
unchanged. Intermediate chemicals results improved by
approximately $15 million primarily
from improvements in methanol and VAM margins. Oxyfuels and
related products results declined by approximately $45 million due to lower margins coupled with
reduced volumes resulting from planned maintenance at Botlek.
Joint venture equity income was relatively unchanged.
Refining – The primary products of this segment
include gasoline and distillates, including diesel fuel, heating
oil and jet fuel.
Table 5 - Refining
Financial Overview
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
June
30,
|
March
31,
|
June
30,
|
June
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
loss
|
($21)
|
($70)
|
($53)
|
($91)
|
($83)
|
|
EBITDA
|
25
|
(30)
|
(13)
|
(5)
|
1
|
|
LCM charges
(benefits), pre-tax
|
- -
|
- -
|
- -
|
- -
|
- -
|
|
EBITDA excluding LCM
adjustments
|
25
|
(30)
|
(13)
|
(5)
|
1
|
|
|
|
|
|
|
|
|
Three months ended June 30,
2017 versus three months ended March
31, 2017 – EBITDA increased $55
million versus the first quarter 2017. The
Houston refinery operated at
265,000 barrels per day, 72,000 barrels per day more than the prior
quarter following completion of planned maintenance at the
beginning of the second quarter. Results were negatively
impacted by low industry margins reflecting weak discounts for
heavy crude oil during May and June.
Three months ended June 30,
2017 versus three months ended June
30, 2016 – EBITDA increased $38
million versus the second quarter 2016. Second quarter
2017 throughput increased by 82,000 barrels per day due to
maintenance during the second quarter of 2016. Second quarter
2017 margins were negatively impacted by unfavorable heavy to light
differentials in crude oil markets.
Technology Segment – Our Technology segment develops and
licenses chemical and polyolefin process technologies and
manufactures and sells polyolefin catalysts.
|
|
|
|
|
|
|
Table 6 -
Technology Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
June
30,
|
March
31,
|
June
30,
|
June
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$39
|
$50
|
$62
|
$89
|
$135
|
|
EBITDA
|
48
|
60
|
73
|
108
|
156
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
2017 versus three months ended March
31, 2017 – EBITDA decreased by $12 million primarily due to lower catalyst
volumes related to the timing of shipments.
Three months ended June 30,
2017 versus three months ended June
30, 2016 – EBITDA decreased by $25 million due to the timing of licensing
revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance
turnarounds, catalyst and information technology-related
expenditures, were $407 million
during the second quarter 2017. Our cash and liquid
investment balance was $2.6 billion
at June 30, 2017. We
repurchased 5.4 million ordinary shares during the second quarter
2017, leaving 397 million common shares outstanding as of
June 30, 2017. The company paid
dividends of $361 million during the
second quarter of 2017.
CONFERENCE CALL
LyondellBasell will host a conference call July 28 at 11 a.m.
EDT. Participants on the call will include Chief
Executive Officer Bob Patel,
Executive Vice President and Chief Financial Officer Thomas Aebischer and Director of Investor
Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A
complete listing of toll-free numbers by country is available at
www.lyb.com/teleconference for international callers. The pass code
for all numbers is 6934553.
The slides and webcast that accompany the call will be available
at http://www.lyb.com/earnings.
A replay of the call will be available from 2 p.m. EDT July 28
until August 28 at 11:59 p.m. EDT. The replay dial-in numbers
are 800-294-5423 (U.S.) and 402-220-9786 (international). The pass
code for each is 2526.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics,
chemicals and refining companies in the world. Driven by its 13,000
employees around the globe, LyondellBasell produces materials and
products that are key to advancing solutions to modern challenges
like enhancing food safety through lightweight and flexible
packaging, protecting the purity of water supplies through stronger
and more versatile pipes, and improving the safety, comfort and
fuel efficiency of many of the cars and trucks on the road.
LyondellBasell sells products into approximately 100 countries and
is the world's largest licensor of polyolefin and polypropylene
technologies. More information about LyondellBasell can be found at
www.lyondellbasell.com.
FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference
relating to matters that are not historical facts are
forward-looking statements. These forward-looking statements are
based upon assumptions of management which are believed to be
reasonable at the time made and are subject to significant risks
and uncertainties. Actual results could differ materially based on
factors including, but not limited to, the business cyclicality of
the chemical, polymers and refining industries; the availability,
cost and price volatility of raw materials and utilities,
particularly the cost of oil, natural gas, and associated natural
gas liquids; competitive product and pricing pressures; labor
conditions; our ability to attract and retain key personnel;
operating interruptions (including leaks, explosions, fires,
weather-related incidents, mechanical failure, unscheduled
downtime, supplier disruptions, labor shortages, strikes, work
stoppages or other labor difficulties, transportation
interruptions, spills and releases and other environmental risks);
the supply/demand balances for our and our joint ventures'
products, and the related effects of industry production capacities
and operating rates; our ability to achieve expected cost savings
and other synergies; our ability to successfully execute projects
and growth strategies; legal and environmental proceedings; tax
rulings, consequences or proceedings; technological developments,
and our ability to develop new products and process technologies;
potential governmental regulatory actions; political unrest and
terrorist acts; risks and uncertainties posed by international
operations, including foreign currency fluctuations; and our
ability to comply with debt covenants and service our debt.
Additional factors that could cause results to differ materially
from those described in the forward-looking statements can be found
in the "Risk Factors" section of our Form 10-K for the year ended
December 31, 2016, which can be found
at www.lyondellbasell.com on the Investor Relations page and on the
Securities and Exchange Commission's website at www.sec.gov.
INFORMATION RELATED TO FINANCIAL MEASURES
This release makes reference to certain non-GAAP financial
measures as defined in Regulation G of the U.S. Securities Exchange
Act of 1934, as amended. The non-GAAP measures we have
presented include income from continuing operations excluding LCM,
diluted earnings per share excluding LCM, EBITDA and EBITDA
excluding LCM. LCM stands for lower of cost or market, which
is an accounting rule consistent with GAAP related to the valuation
of inventory. Our inventories are stated at the lower of cost
or market. Cost is determined using the LIFO inventory
valuation methodology, which means that the most recently incurred
costs are charged to cost of sales and inventories are valued at
the earliest acquisition costs. Market is determined based on
an assessment of the current estimated replacement cost and selling
price of the inventory. In periods where the market price of
our inventory declines substantially, cost values of inventory may
be higher than the market value, which results in us writing down
the value of inventory to market value in accordance with the LCM
rule, consistent with GAAP. This adjustment is related to our use
of LIFO accounting and the recent decline in pricing for many of
our raw material and finished goods inventories. We report our
financial results in accordance with U.S. generally accepted
accounting principles, but believe that certain non-GAAP financial
measures, such as EBITDA and earnings and EBITDA excluding LCM,
provide useful supplemental information to investors regarding the
underlying business trends and performance of the company's ongoing
operations and are useful for period-over-period comparisons of
such operations. Non-GAAP financial measures should be considered
as a supplement to, and not as a substitute for, or superior to,
the financial measures prepared in accordance with GAAP.
EBITDA, as presented herein, may not be comparable to a
similarly titled measure reported by other companies due to
differences in the way the measure is calculated. We calculate
EBITDA as income from continuing operations plus interest expense
(net), provision for (benefit from) income taxes, and depreciation
& amortization. EBITDA should not be considered an
alternative to profit or operating profit for any period as an
indicator of our performance, or as an alternative to operating
cash flows as a measure of our liquidity. We have also
presented financial information herein exclusive of adjustments for
LCM.
Quantitative reconciliations of EBITDA to net income, the most
comparable GAAP measure, are provided in Table 8 at the end of this
release.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is
accurate only as of the time hereof. Information contained in this
release is unaudited and subject to change. LyondellBasell
undertakes no obligation to update the information presented herein
except to the extent required by law.
Table 7 -
Reconciliation of Segment Information to Consolidated Financial
Information (a)
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
YTD
|
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
2,115
|
|
$
|
2,211
|
|
$
|
2,342
|
|
$
|
2,409
|
|
$
|
9,077
|
|
$
|
2,604
|
|
$
|
2,547
|
|
$
|
5,151
|
|
|
Olefins &
Polyolefins - EAI
|
|
|
2,578
|
|
|
2,721
|
|
|
2,634
|
|
|
2,646
|
|
|
10,579
|
|
|
3,024
|
|
|
3,008
|
|
|
6,032
|
|
|
Intermediates &
Derivatives
|
|
|
1,702
|
|
|
1,769
|
|
|
1,805
|
|
|
1,950
|
|
|
7,226
|
|
|
2,150
|
|
|
2,014
|
|
|
4,164
|
|
|
Refining
|
|
|
955
|
|
|
1,289
|
|
|
1,330
|
|
|
1,561
|
|
|
5,135
|
|
|
1,353
|
|
|
1,713
|
|
|
3,066
|
|
|
Technology
|
|
|
132
|
|
|
129
|
|
|
102
|
|
|
116
|
|
|
479
|
|
|
120
|
|
|
107
|
|
|
227
|
|
|
Other/elims
|
|
|
(739)
|
|
|
(791)
|
|
|
(848)
|
|
|
(935)
|
|
|
(3,313)
|
|
|
(821)
|
|
|
(986)
|
|
|
(1,807)
|
|
|
|
Continuing
Operations
|
|
$
|
6,743
|
|
$
|
7,328
|
|
$
|
7,365
|
|
$
|
7,747
|
|
$
|
29,183
|
|
$
|
8,430
|
|
$
|
8,403
|
|
$
|
16,833
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
707
|
|
$
|
646
|
|
$
|
582
|
|
$
|
458
|
|
$
|
2,393
|
|
$
|
559
|
|
$
|
738
|
|
$
|
1,297
|
|
|
Olefins &
Polyolefins - EAI
|
|
|
358
|
|
|
423
|
|
|
447
|
|
|
266
|
|
|
1,494
|
|
|
401
|
|
|
549
|
|
|
950
|
|
|
Intermediates &
Derivatives
|
|
|
255
|
|
|
327
|
|
|
240
|
|
|
236
|
|
|
1,058
|
|
|
269
|
|
|
270
|
|
|
539
|
|
|
Refining
|
|
|
(30)
|
|
|
(53)
|
|
|
(56)
|
|
|
40
|
|
|
(99)
|
|
|
(70)
|
|
|
(21)
|
|
|
(91)
|
|
|
Technology
|
|
|
73
|
|
|
62
|
|
|
35
|
|
|
51
|
|
|
221
|
|
|
50
|
|
|
39
|
|
|
89
|
|
|
Other
|
|
|
(3)
|
|
|
(2)
|
|
|
1
|
|
|
(3)
|
|
|
(7)
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
|
Continuing
Operations
|
|
$
|
1,360
|
|
$
|
1,403
|
|
$
|
1,249
|
|
$
|
1,048
|
|
$
|
5,060
|
|
$
|
1,210
|
|
$
|
1,577
|
|
$
|
2,787
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
90
|
|
$
|
88
|
|
$
|
87
|
|
$
|
97
|
|
$
|
362
|
|
$
|
118
|
|
$
|
107
|
|
$
|
225
|
|
|
Olefins &
Polyolefins - EAI
|
|
|
55
|
|
|
58
|
|
|
58
|
|
|
58
|
|
|
229
|
|
|
59
|
|
|
58
|
|
|
117
|
|
|
Intermediates &
Derivatives
|
|
|
70
|
|
|
69
|
|
|
62
|
|
|
68
|
|
|
269
|
|
|
69
|
|
|
68
|
|
|
137
|
|
|
Refining
|
|
|
43
|
|
|
40
|
|
|
40
|
|
|
40
|
|
|
163
|
|
|
40
|
|
|
44
|
|
|
84
|
|
|
Technology
|
|
|
10
|
|
|
11
|
|
|
10
|
|
|
10
|
|
|
41
|
|
|
10
|
|
|
9
|
|
|
19
|
|
|
|
Continuing
Operations
|
|
$
|
268
|
|
$
|
266
|
|
$
|
257
|
|
$
|
273
|
|
$
|
1,064
|
|
$
|
296
|
|
$
|
286
|
|
$
|
582
|
|
EBITDA:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
878
|
|
$
|
754
|
|
$
|
682
|
|
$
|
563
|
|
$
|
2,877
|
|
$
|
723
|
|
$
|
859
|
|
$
|
1,582
|
|
|
Olefins &
Polyolefins - EAI
|
|
|
509
|
|
|
576
|
|
|
584
|
|
|
398
|
|
|
2,067
|
|
|
529
|
|
|
699
|
|
|
1,228
|
|
|
Intermediates &
Derivatives
|
|
|
326
|
|
|
397
|
|
|
304
|
|
|
306
|
|
|
1,333
|
|
|
339
|
|
|
339
|
|
|
678
|
|
|
Refining
|
|
|
14
|
|
|
(13)
|
|
|
(10)
|
|
|
81
|
|
|
72
|
|
|
(30)
|
|
|
25
|
|
|
(5)
|
|
|
Technology
|
|
|
83
|
|
|
73
|
|
|
45
|
|
|
61
|
|
|
262
|
|
|
60
|
|
|
48
|
|
|
108
|
|
|
Other
|
|
|
(3)
|
|
|
(4)
|
|
|
1
|
|
|
(3)
|
|
|
(9)
|
|
|
(4)
|
|
|
- -
|
|
|
(4)
|
|
|
|
Continuing
Operations
|
|
$
|
1,807
|
|
$
|
1,783
|
|
$
|
1,606
|
|
$
|
1,406
|
|
$
|
6,602
|
|
$
|
1,617
|
|
$
|
1,970
|
|
$
|
3,587
|
|
Capital,
turnarounds and IT deferred spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
303
|
|
$
|
339
|
|
$
|
384
|
|
$
|
350
|
|
$
|
1,376
|
|
$
|
202
|
|
$
|
179
|
|
$
|
381
|
|
|
Olefins &
Polyolefins - EAI
|
|
|
81
|
|
|
60
|
|
|
48
|
|
|
72
|
|
|
261
|
|
|
47
|
|
|
32
|
|
|
79
|
|
|
Intermediates &
Derivatives
|
|
|
76
|
|
|
80
|
|
|
90
|
|
|
87
|
|
|
333
|
|
|
77
|
|
|
107
|
|
|
184
|
|
|
Refining
|
|
|
57
|
|
|
71
|
|
|
51
|
|
|
45
|
|
|
224
|
|
|
84
|
|
|
79
|
|
|
163
|
|
|
Technology
|
|
|
6
|
|
|
9
|
|
|
9
|
|
|
12
|
|
|
36
|
|
|
7
|
|
|
6
|
|
|
13
|
|
|
Other
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
1
|
|
|
13
|
|
|
4
|
|
|
4
|
|
|
8
|
|
|
|
Continuing
Operations
|
|
$
|
527
|
|
$
|
563
|
|
$
|
586
|
|
$
|
567
|
|
$
|
2,243
|
|
$
|
421
|
|
$
|
407
|
|
$
|
828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
EBITDA for the first
quarter of 2016 includes a pre-tax LCM charge of $68 million and a
$78 million pre-tax gain on the sale of our wholly owned
Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax
LCM benefit of $68 million for the reversal of the first quarter
2016 LCM adjustment due to price recoveries during the period.
Fourth quarter 2016 EBITDA also includes a pre-tax LCM charge of
$29 million. See Tables 2 through 6 for LCM adjustments
|
(b)
|
See Table 8 for
EBITDA calculation.
|
Table 8 - EBITDA
Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income(a)
|
$
|
1,030
|
|
$
|
1,091
|
|
$
|
953
|
|
$
|
763
|
|
$
|
3,837
|
|
$
|
797
|
|
$
|
1,130
|
|
$
|
1,927
|
|
Loss from
discontinued operations, net of tax
|
|
- -
|
|
|
1
|
|
|
2
|
|
|
7
|
|
|
10
|
|
|
8
|
|
|
4
|
|
|
12
|
|
Income from
continuing operations(a)
|
|
1,030
|
|
|
1,092
|
|
|
955
|
|
|
770
|
|
|
3,847
|
|
|
805
|
|
|
1,134
|
|
|
1,939
|
|
|
Provision for income
taxes
|
|
432
|
|
|
346
|
|
|
326
|
|
|
282
|
|
|
1,386
|
|
|
315
|
|
|
459
|
|
|
774
|
|
|
Depreciation and
amortization
|
|
268
|
|
|
266
|
|
|
257
|
|
|
273
|
|
|
1,064
|
|
|
296
|
|
|
286
|
|
|
582
|
|
|
Interest expense,
net(b)
|
|
77
|
|
|
79
|
|
|
68
|
|
|
81
|
|
|
305
|
|
|
201
|
|
|
91
|
|
|
292
|
|
EBITDA(c)
|
$
|
1,807
|
|
$
|
1,783
|
|
$
|
1,606
|
|
$
|
1,406
|
|
$
|
6,602
|
|
$
|
1,617
|
|
$
|
1,970
|
|
$
|
3,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The first quarter of
2016 includes an after-tax LCM charge of $47 million and a $78
million after-tax gain related to the sale of our wholly owned
Argentine subsidiary. The second quarter of 2016 includes an
after-tax benefit of $47 million for the reversal of the first
quarter 2016 LCM adjustment due to price recoveries during the
period. Fourth quarter 2016 also includes an $18 million after-tax
LCM charge.
|
(b)
|
Includes pre-tax
charges totalling $113 million in the first quarter of 2017 related
to the repayment of $1,000 million aggregate principal amount of
our outstanding 5% senior notes due 2019.
|
(c)
|
The first quarter of
2016 includes a pre-tax LCM charge of $68 million and a pre-tax
gain of $78 million on the sale of our wholly owned Argentine
subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM
benefit of $68 million for the reversal of the first quarter 2016
LCM adjustment. Fourth quarter 2016 also includes a pre-tax LCM
charge of $29 million.
|
Table 9 - Selected
Segment Operating Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
YTD
|
|
Olefins and
Polyolefins - Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene
produced
|
|
2,392
|
|
1,899
|
|
1,939
|
|
2,173
|
|
8,403
|
|
2,486
|
|
2,606
|
|
5,092
|
|
|
|
Propylene
produced
|
|
832
|
|
748
|
|
575
|
|
660
|
|
2,815
|
|
597
|
|
821
|
|
1,418
|
|
|
|
Polyethylene
sold
|
|
1,554
|
|
1,426
|
|
1,517
|
|
1,485
|
|
5,982
|
|
1,533
|
|
1,404
|
|
2,937
|
|
|
|
Polypropylene
sold
|
|
612
|
|
582
|
|
659
|
|
623
|
|
2,476
|
|
644
|
|
634
|
|
1,278
|
|
|
Benchmark Market
Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Texas
Intermediate crude oil (USD per barrel)
|
|
33.63
|
|
46.01
|
|
44.94
|
|
49.29
|
|
43.56
|
|
51.78
|
|
48.15
|
|
49.95
|
|
|
|
Light Louisiana Sweet
("LLS") crude oil (USD per barrel)
|
|
35.34
|
|
47.39
|
|
46.52
|
|
50.60
|
|
45.03
|
|
53.39
|
|
50.17
|
|
51.77
|
|
|
|
Houston Ship Channel
natural gas (USD per million BTUs)
|
|
1.93
|
|
2.06
|
|
2.79
|
|
3.01
|
|
2.45
|
|
2.96
|
|
3.14
|
|
3.05
|
|
|
|
U.S. weighted average
cost of ethylene production (cents/pound)
|
|
9.8
|
|
12.0
|
|
10.6
|
|
14.3
|
|
11.7
|
|
11.8
|
|
12.5
|
|
12.2
|
|
|
|
U.S. ethylene
(cents/pound)
|
|
26.7
|
|
30.3
|
|
33.0
|
|
32.7
|
|
30.7
|
|
33.1
|
|
31.9
|
|
32.5
|
|
|
|
U.S. polyethylene
[high density] (cents/pound)
|
|
52.3
|
|
59.0
|
|
60.7
|
|
58.3
|
|
57.6
|
|
57.3
|
|
59.0
|
|
58.2
|
|
|
|
U.S. propylene
(cents/pound)
|
|
31.0
|
|
32.7
|
|
37.8
|
|
36.2
|
|
34.4
|
|
47.2
|
|
41.0
|
|
44.1
|
|
|
|
U.S. polypropylene
[homopolymer] (cents/pound)
|
|
67.8
|
|
61.7
|
|
60.2
|
|
55.8
|
|
61.4
|
|
66.2
|
|
59.0
|
|
62.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins and
Polyolefins - Europe, Asia, International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene
produced
|
|
950
|
|
941
|
|
1,066
|
|
946
|
|
3,903
|
|
1,022
|
|
1,069
|
|
2,091
|
|
|
|
Propylene
produced
|
|
555
|
|
577
|
|
649
|
|
563
|
|
2,344
|
|
598
|
|
632
|
|
1,230
|
|
|
|
Polyethylene
sold
|
|
1,434
|
|
1,386
|
|
1,315
|
|
1,330
|
|
5,465
|
|
1,421
|
|
1,370
|
|
2,791
|
|
|
|
Polypropylene
sold
|
|
1,773
|
|
1,617
|
|
1,509
|
|
1,582
|
|
6,481
|
|
1,714
|
|
1,530
|
|
3,244
|
|
|
Benchmark Market
Prices (€0.01 per pound)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Europe
weighted average cost of ethylene production
|
|
16.3
|
|
21.2
|
|
17.9
|
|
23.8
|
|
19.8
|
|
22.7
|
|
17.6
|
|
20.2
|
|
|
|
Western Europe
ethylene
|
|
38.4
|
|
41.1
|
|
42.3
|
|
43.1
|
|
41.2
|
|
46.2
|
|
47.1
|
|
46.6
|
|
|
|
Western Europe
polyethylene [high density]
|
|
55.4
|
|
57.6
|
|
55.7
|
|
55.2
|
|
56.0
|
|
58.2
|
|
59.5
|
|
58.9
|
|
|
|
Western Europe
propylene
|
|
26.3
|
|
28.8
|
|
30.7
|
|
33.3
|
|
29.8
|
|
37.0
|
|
39.3
|
|
38.2
|
|
|
|
Western Europe
polypropylene [homopolymer]
|
|
46.5
|
|
49.5
|
|
49.5
|
|
51.7
|
|
49.3
|
|
56.3
|
|
60.1
|
|
58.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediates and
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds unless otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propylene oxide and
derivatives
|
|
793
|
|
743
|
|
752
|
|
749
|
|
3,037
|
|
786
|
|
748
|
|
1,534
|
|
|
|
Intermediate
Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene oxide and
derivatives
|
|
301
|
|
233
|
|
224
|
|
329
|
|
1,087
|
|
292
|
|
297
|
|
589
|
|
|
|
|
Styrene
monomer
|
|
917
|
|
933
|
|
911
|
|
933
|
|
3,694
|
|
992
|
|
924
|
|
1,916
|
|
|
|
|
Acetyls
|
|
702
|
|
821
|
|
751
|
|
776
|
|
3,050
|
|
825
|
|
672
|
|
1,497
|
|
|
|
Oxyfuels and Related
Products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TBA
Intermediates
|
|
415
|
|
391
|
|
410
|
|
361
|
|
1,577
|
|
383
|
|
332
|
|
715
|
|
|
|
|
MTBE/ETBE (million
gallons)
|
|
270
|
|
278
|
|
298
|
|
264
|
|
1,110
|
|
239
|
|
263
|
|
502
|
|
|
Benchmark Market
Margins (cents per gallon)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MTBE - Northwest
Europe
|
|
44.4
|
|
78.7
|
|
55.3
|
|
50.6
|
|
57.2
|
|
49.5
|
|
67.3
|
|
58.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (thousands
of barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heavy crude oil
processing rate
|
|
186
|
|
183
|
|
209
|
|
228
|
|
201
|
|
193
|
|
265
|
|
229
|
|
|
Benchmark Market
Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light crude oil -
2-1-1
|
|
8.67
|
|
11.52
|
|
11.46
|
|
11.20
|
|
10.73
|
|
11.86
|
|
13.26
|
|
12.57
|
|
|
|
Light crude oil -
Maya differential
|
|
9.19
|
|
9.55
|
|
7.52
|
|
7.80
|
|
8.51
|
|
8.78
|
|
6.28
|
|
7.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: LYB and
third party consultants
|
Note: Benchmark
market prices for U.S. and Western Europe polyethylene and
polypropylene reflect discounted prices. Volumes presented
represent third party sales of selected
|
key products.
|
Table 10 -
Unaudited Income Statement Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other
operating revenues
|
$
|
6,743
|
|
$
|
7,328
|
|
$
|
7,365
|
|
$
|
7,747
|
|
$
|
29,183
|
|
$
|
8,430
|
|
$
|
8,403
|
|
$
|
16,833
|
|
Cost of
sales(a)
|
|
5,166
|
|
|
5,702
|
|
|
5,903
|
|
|
6,420
|
|
|
23,191
|
|
|
6,991
|
|
|
6,601
|
|
|
13,592
|
|
Selling, general and
administrative expenses
|
|
193
|
|
|
199
|
|
|
188
|
|
|
253
|
|
|
833
|
|
|
204
|
|
|
200
|
|
|
404
|
|
Research and
development expenses
|
|
24
|
|
|
24
|
|
|
25
|
|
|
26
|
|
|
99
|
|
|
25
|
|
|
25
|
|
|
50
|
|
|
Operating
income(a)
|
|
1,360
|
|
|
1,403
|
|
|
1,249
|
|
|
1,048
|
|
|
5,060
|
|
|
1,210
|
|
|
1,577
|
|
|
2,787
|
|
Income from equity
investments
|
|
91
|
|
|
117
|
|
|
81
|
|
|
78
|
|
|
367
|
|
|
81
|
|
|
78
|
|
|
159
|
|
Interest expense,
net(b)
|
|
(77)
|
|
|
(79)
|
|
|
(68)
|
|
|
(81)
|
|
|
(305)
|
|
|
(201)
|
|
|
(91)
|
|
|
(292)
|
|
Other income
(expense), net(c)
|
|
88
|
|
|
(3)
|
|
|
19
|
|
|
7
|
|
|
111
|
|
|
30
|
|
|
29
|
|
|
59
|
|
|
Income from
continuing operations before income taxes(a) (b)
(c)
|
|
1,462
|
|
|
1,438
|
|
|
1,281
|
|
|
1,052
|
|
|
5,233
|
|
|
1,120
|
|
|
1,593
|
|
|
2,713
|
|
Provision for income
taxes
|
|
432
|
|
|
346
|
|
|
326
|
|
|
282
|
|
|
1,386
|
|
|
315
|
|
|
459
|
|
|
774
|
|
|
Income from
continuing operations(d)
|
|
1,030
|
|
|
1,092
|
|
|
955
|
|
|
770
|
|
|
3,847
|
|
|
805
|
|
|
1,134
|
|
|
1,939
|
|
Loss from
discontinued operations, net of tax
|
|
- -
|
|
|
(1)
|
|
|
(2)
|
|
|
(7)
|
|
|
(10)
|
|
|
(8)
|
|
|
(4)
|
|
|
(12)
|
|
|
|
Net
income(d)
|
|
1,030
|
|
|
1,091
|
|
|
953
|
|
|
763
|
|
|
3,837
|
|
|
797
|
|
|
1,130
|
|
|
1,927
|
|
Net (income) loss
attributable to non-controlling interests
|
|
- -
|
|
|
- -
|
|
|
(1)
|
|
|
- -
|
|
|
(1)
|
|
|
- -
|
|
|
1
|
|
|
1
|
|
|
|
Net income
attributable to the Company
shareholders(d)
|
$
|
1,030
|
|
$
|
1,091
|
|
$
|
952
|
|
$
|
763
|
|
$
|
3,836
|
|
$
|
797
|
|
$
|
1,131
|
|
$
|
1,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Amounts presented
herein include pre-tax LCM charges of $68 million and $29 million
in the first and fourth quarters of 2016, respectively. A pre-tax
benefit of $68 million in the second quarter of 2016 reflects the
reversal of the first quarter 2016 LCM adjustment due to price
recoveries during the period.
|
(b)
|
Includes pre-tax
charges totalling $113 million in the first quarter of 2017 related
to the repayment of $1,000 million aggregate principal amount of
our outstanding 5% senior notes due 2019.
|
(c)
|
Includes a pre-tax
gain of $31 million in the first quarter of 2017 on the sale of our
Lake Charles, Louisiana site currently used as a logistics terminal
and a $78 million gain in the first quarter of 2016 on the sale of
our wholly owned Argentine subsidiary.
|
(d)
|
Amounts presented
herein include after-tax LCM charges of $47 million and $18 million
in the first and fourth quarters of 2016, respectively. The second
quarter of 2016 includes an after tax benefit of $47 million for
the partial reversal of the first quarter 2016 LCM adjustment
resulting from price recoveries during the period. The first
quarter of 2016 also includes a $78 million gain on the sale of our
wholly owned Argentine subsidiary. The first quarter of 2017
includes after-tax charges totalling $106 million related to the
repayment of $1,000 million aggregate principal amount of our
outstanding 5% senior notes due 2019.
|
Table 11 - Charges
(Benefits) Included in Income from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual
|
|
|
|
|
|
|
|
|
Millions of U.S.
dollars (except share data)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Impact
|
|
Q1
|
|
Q2
|
|
YTD
|
Pretax charges
(benefits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and premiums
related to repayment of debt
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
113
|
|
$
|
- -
|
|
$
|
113
|
|
Out of period tax
adjustment
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
61
|
|
|
74
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Gain on sale of
wholly owned subsidiary
|
|
(78)
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
(78)
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Lower of cost or
market inventory adjustment
|
|
68
|
|
|
(68)
|
|
|
- -
|
|
|
29
|
|
|
29
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Pension settlement
charge
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
58
|
|
|
58
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
Total pretax charges
(benefits)
|
|
(10)
|
|
|
(68)
|
|
|
- -
|
|
|
148
|
|
|
83
|
|
|
113
|
|
|
- -
|
|
|
113
|
Provision for
(benefit from) income tax related to these items
|
|
(21)
|
|
|
21
|
|
|
- -
|
|
|
(32)
|
|
|
(32)
|
|
|
(7)
|
|
|
- -
|
|
|
(7)
|
After-tax effect of
net charges (benefits)
|
$
|
(31)
|
|
$
|
(47)
|
|
$
|
- -
|
|
$
|
116
|
|
$
|
51
|
|
$
|
106
|
|
$
|
- -
|
|
$
|
106
|
Effect on diluted
earnings per share
|
$
|
0.07
|
|
$
|
0.11
|
|
$
|
- -
|
|
$
|
(0.29)
|
|
$
|
(0.12)
|
|
$
|
(0.26)
|
|
$
|
- -
|
|
$
|
(0.26)
|
|
Table 12 -
Unaudited Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
|
Q2
|
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities(a)
|
$
|
1,300
|
|
$
|
1,261
|
|
$
|
1,332
|
|
$
|
1,713
|
|
$
|
5,606
|
|
$
|
678
|
|
$
|
1,560
|
|
$
|
2,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities(b)
|
|
(600)
|
|
|
(471)
|
|
|
(459)
|
|
|
(771)
|
|
|
(2,301)
|
|
|
(541)
|
|
|
(513)
|
|
|
(1,054)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities (a)
|
|
(333)
|
|
|
(1,039)
|
|
|
(1,195)
|
|
|
(782)
|
|
|
(3,349)
|
|
|
(537)
|
|
|
(822)
|
|
|
(1,359)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
In the second quarter
of 2017, the early adoption of ASU 2016-15, Statement of Cash
Flows (Topic 230): Classification of Certain Cash Receipts and Cash
Payments resulted in the reclassification of cash flows related
to debt extinguishment costs incurred in the first quarter of 2017
from operating to financing activities cash flows.
|
(b)
|
Also in the second
quarter of 2017, the early retrospective adoption of ASU 2016-18,
Statement of Cash Flows: Restricted Cash requires the
inclusion of restricted cash and restricted cash equivalents in the
cash and cash equivalents balances in our Statements of Cash
Flows.
|
Table 13 -
Unaudited Balance Sheet Information
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
(Millions of U.S.
dollars)
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,318
|
|
$
|
1,060
|
|
$
|
740
|
|
$
|
875
|
|
$
|
485
|
|
$
|
734
|
|
Restricted
cash
|
|
4
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
6
|
|
Short-term
investments
|
|
1,332
|
|
|
1,023
|
|
|
1,090
|
|
|
1,147
|
|
|
1,176
|
|
|
1,278
|
|
Accounts receivable,
net
|
|
2,683
|
|
|
2,806
|
|
|
2,852
|
|
|
2,842
|
|
|
3,292
|
|
|
3,086
|
|
Inventories
|
|
3,978
|
|
|
4,009
|
|
|
4,015
|
|
|
3,809
|
|
|
3,875
|
|
|
4,007
|
|
Prepaid expenses and
other current assets
|
|
1,009
|
|
|
1,081
|
|
|
852
|
|
|
923
|
|
|
852
|
|
|
964
|
|
|
|
Total current
assets
|
|
10,324
|
|
|
9,983
|
|
|
9,553
|
|
|
9,599
|
|
|
9,681
|
|
|
10,075
|
|
Property, plant and
equipment, net
|
|
9,373
|
|
|
9,681
|
|
|
10,057
|
|
|
10,137
|
|
|
10,361
|
|
|
10,551
|
|
Investments and
long-term receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in PO
joint ventures
|
|
398
|
|
|
390
|
|
|
399
|
|
|
415
|
|
|
409
|
|
|
423
|
|
|
|
Equity
investments
|
|
1,734
|
|
|
1,610
|
|
|
1,681
|
|
|
1,575
|
|
|
1,672
|
|
|
1,595
|
|
|
|
Other investments and
long-term receivables
|
|
18
|
|
|
18
|
|
|
17
|
|
|
20
|
|
|
20
|
|
|
18
|
|
Goodwill
|
|
548
|
|
|
542
|
|
|
543
|
|
|
528
|
|
|
531
|
|
|
559
|
|
Intangible assets,
net
|
|
618
|
|
|
588
|
|
|
562
|
|
|
550
|
|
|
517
|
|
|
499
|
|
Other
assets
|
|
559
|
|
|
623
|
|
|
607
|
|
|
618
|
|
|
577
|
|
|
398
|
|
|
|
Total
assets
|
$
|
23,572
|
|
$
|
23,435
|
|
$
|
23,419
|
|
$
|
23,442
|
|
$
|
23,768
|
|
$
|
24,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
|
4
|
|
$
|
4
|
|
$
|
3
|
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
Short-term
debt
|
|
594
|
|
|
616
|
|
|
621
|
|
|
594
|
|
|
611
|
|
|
561
|
|
Accounts
payable
|
|
2,243
|
|
|
2,357
|
|
|
2,329
|
|
|
2,529
|
|
|
2,627
|
|
|
2,317
|
|
Accrued
liabilities
|
|
1,600
|
|
|
1,374
|
|
|
1,357
|
|
|
1,415
|
|
|
1,139
|
|
|
1,251
|
|
|
|
Total current
liabilities
|
|
4,441
|
|
|
4,351
|
|
|
4,310
|
|
|
4,540
|
|
|
4,379
|
|
|
4,131
|
|
Long-term
debt
|
|
8,504
|
|
|
8,485
|
|
|
8,464
|
|
|
8,385
|
|
|
8,419
|
|
|
8,496
|
|
Other
liabilities
|
|
2,125
|
|
|
2,143
|
|
|
2,151
|
|
|
2,113
|
|
|
2,130
|
|
|
2,253
|
|
Deferred income
taxes
|
|
2,134
|
|
|
2,149
|
|
|
2,387
|
|
|
2,331
|
|
|
2,353
|
|
|
2,370
|
|
Stockholders'
equity
|
|
6,344
|
|
|
6,283
|
|
|
6,082
|
|
|
6,048
|
|
|
6,462
|
|
|
6,866
|
|
Non-controlling
interests
|
|
24
|
|
|
24
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
2
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
23,572
|
|
$
|
23,435
|
|
$
|
23,419
|
|
$
|
23,442
|
|
$
|
23,768
|
|
$
|
24,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE LyondellBasell Industries