HOUSTON and LONDON, Nov. 1,
2019 /PRNewswire/ --
Third Quarter 2019 Highlights
- Net Income: $1.0 billion
- Diluted earnings per share: $2.85
per share
- Quarter included $85 million
non-cash tax settlement that increased earnings by $0.25 per share
- EBITDA: $1.5 billion, resilient
performance in a challenging market
- Cash from operating activities: $1.9
billion
- Paid dividends and repurchased 37 million shares totaling
$3.6 billion
- Refinanced over $2 billion of
debt at favorable rates
Comparisons with the prior quarter and third quarter
2018 are available in the following table:
Table 1 - Earnings Summary
Millions of
U.S. dollars (except share data)
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Sales and other
operating revenues
|
$8,722
|
$9,048
|
$10,155
|
$26,548
|
$30,128
|
Net income
|
965
|
1,003
|
1,113
|
2,785
|
3,998
|
Diluted earnings per
share
|
2.85
|
2.70
|
2.85
|
7.72
|
10.18
|
Weighted average
diluted share count
|
337
|
370
|
390
|
360
|
392
|
EBITDA
(a)
|
1,513
|
1,579
|
1,732
|
4,520
|
5,655
|
(a)
|
See the end of this
release for an explanation of the Company's use of EBITDA and Table
9 for reconciliations of EBITDA to net income.
|
LyondellBasell Industries (NYSE: LYB) today announced net income
for the third quarter 2019 of $1.0
billion, or $2.85 per share,
which included an $85 million
non-cash tax settlement that increased earnings by $0.25 per share. Third quarter 2019 EBITDA
was $1.5 billion. Integration
activities related to the acquisition of A. Schulman are on
schedule and expected to generate approximately $125 million in forward annual run-rate synergies
as of the close of the third quarter. After tax costs related
to integration rose to $33 million
for the quarter and impacted third quarter earnings by $0.10 per share.
"LyondellBasell demonstrated resilient performance by achieving
a third consecutive increase in quarterly earnings per share with
its leading portfolio, advantaged global positions, and disciplined
capital allocation. Strong margins for our North American
ethylene and Oxyfuels & Related Products businesses were
supported by abundant supplies of low-cost, shale-based natural gas
liquid feedstocks. Our global Olefins & Polyolefins
businesses benefited from typical seasonal strength in demand for
consumer driven non-durable products with polyolefin sales volume
increasing by 5% relative to the second quarter. Market
headwinds from softer demand and compressing margins for styrene
impacted the profitability for our Intermediates & Derivatives
segment. Our refinery ran reliably at 99% of nameplate
capacity and margins increased with improved availability of
favorably-priced heavy sour crude oils in the Houston market," said Bob Patel, LyondellBasell CEO.
"We continued to execute our disciplined capital allocation
strategy during the third quarter. In September, we moved
forward on our value-driven approach to growth with a long-term
propylene supply contract and discussions to build a joint venture
chemical complex in northeast China. During July, we
completed a tender offer for 35.1 million shares that demonstrated
our views on the value of our company and the outlook for our
businesses. Over the past few weeks, we successfully
refinanced over $2 billion of debt in
a favorable interest rate environment," Patel said.
OUTLOOK
"Our businesses continue to benefit from low-cost natural gas
liquid feedstocks with favorable prices persisting into
October. We expect to see typical seasonal softening of
demand in the final months of the year. At the same time,
profitability at our Houston
refinery should begin to improve during the fourth quarter with
increasing demand for low-sulfur marine fuels ahead of the IMO 2020
regulation deadline," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING
SEGMENT
LyondellBasell manages operations through six operating
segments: 1) Olefins and Polyolefins - Americas; 2) Olefins and
Polyolefins - Europe, Asia and International; 3) Intermediates and
Derivatives; 4) Advanced Polymer Solutions; 5) Refining; and 6)
Technology. Results for our Advanced Polymer Solutions
segment incorporates the businesses acquired from A. Schulman
beginning on August 21, 2018.
Olefins & Polyolefins - Americas
(O&P-Americas) - Our O&P-Americas segment produces
and markets Olefins & Co-products, polyethylene and
polypropylene.
Table 2 - O&P-Americas Financial Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Operating
income
|
$524
|
$504
|
$572
|
$1,412
|
$1,744
|
EBITDA
|
653
|
635
|
704
|
1,804
|
2,131
|
Three months ended September 30,
2019 versus three months ended June
30, 2019 - EBITDA increased $18
million versus the second quarter 2019. Compared with
the prior period, olefins results increased $120 million. Ethylene margin improved as
the price of ethylene increased and feedstock prices
declined. Ethylene volume decreased due to planned
maintenance. Polyolefins results decreased approximately
$100 million due to a spread decrease
for polyethylene over ethylene of more than $220 per ton, partially offset by an increase in
polyolefin volume.
Three months ended September 30,
2019 versus three months ended September 30, 2018 - EBITDA decreased
$51 million versus the third quarter
2018. Compared with the prior period, olefins results
increased more than $150
million. Ethylene margin expanded primarily due to
reduced feedstock prices. Polyolefin results decreased
$215 million driven by a spread
decline in polyethylene over ethylene of more than $320 per ton, partially offset by an increase in
polyolefin volume.
Olefins & Polyolefins - Europe, Asia,
International (O&P-EAI) - Our O&P-EAI
segment produces and markets Olefins and Co-products, polyethylene
and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Operating
income
|
$202
|
$226
|
$141
|
$614
|
$667
|
EBITDA
|
291
|
331
|
262
|
918
|
1,036
|
Three months ended September 30,
2019 versus three months ended June
30, 2019 - EBITDA decreased $40
million versus the second quarter 2019. Compared with
the prior period, olefins results decreased about $10 million driven by a small decline in
volume. Combined polyolefins results were relatively
unchanged with an increase in polyethylene volume offset by a
compressed polyethylene margin. Joint venture equity income
decreased approximately $15
million.
Three months ended September 30,
2019 versus three months ended September 30, 2018 - EBITDA increased
$29 million versus the third quarter
2018. Olefins results increased about $75 million driven by an increase in margin and
volume. Margin improved as a decline in feedstock cost
significantly outpaced the decline in ethylene price.
Combined polyolefins results increased approximately $10 million primarily driven by higher volume due
to the timing of customer orders. Joint venture equity income
decreased approximately $35
million.
Intermediates & Derivatives (I&D) -
Our I&D segment produces and markets Propylene Oxide &
Derivatives, Oxyfuels and Related Products and Intermediate
Chemicals, such as styrene monomer, acetyls, ethylene oxide and
ethylene glycol.
Table 4 - I&D Financial Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Operating
income
|
$314
|
$372
|
$431
|
$1,000
|
$1,408
|
EBITDA
|
390
|
448
|
504
|
1,228
|
1,632
|
Three months ended September 30,
2019 versus three months ended June
30, 2019 - EBITDA decreased $58 million versus the second quarter 2019.
Compared with the prior period, Propylene Oxide & Derivatives
results were relatively unchanged. Intermediate Chemicals
results decreased $95 million driven
by a decline in margin for all products, primarily in
styrene. Volume decreased as a result of planned
maintenance. Oxyfuels & Related Products results
increased about $30 million due to
increased margin and volume. Margin improved driven by
low-cost butane and a higher gasoline blend premium.
Three months ended September 30,
2019 versus three months ended September 30, 2018 - EBITDA decreased
$114 million versus the third quarter
2018. Compared with the prior period, Propylene Oxide &
Derivatives results decreased approximately $15 million due to a small decline in
volume. Intermediate Chemicals results decreased about
$180 million driven by a decline in
margin for most products. Volume decreased as a result of
planned maintenance. Oxyfuels & Related Products results
increased more than $75
million. Margin increased due to low-cost butane and
contract price improvements.
Advanced Polymer Solutions (APS) - Our
Advanced Polymer Solutions segment produces and markets in two
lines of business: Compounding & Solutions and Advanced
Polymers. Compounding & Solutions includes polypropylene
compounds, engineered plastics, masterbatches, engineered
composites, colors and powders. Advanced Polymers consists of
Catalloy and polybutene-1. A. Schulman was acquired on
August 21, 2018, and results from the
acquisition are included prospectively.
Table 5 - Advanced Polymer Solutions Financial
Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Operating
income
|
$67
|
$91
|
$48
|
$277
|
$274
|
EBITDA
|
102
|
120
|
70
|
370
|
314
|
Three months ended September 30,
2019 versus three months ended June
30, 2019 - EBITDA decreased $18
million versus the second quarter 2019. Integration
costs related to the acquisition of A. Schulman and assigned to the
segment were $24 million higher in
the third quarter 2019 versus the second quarter. Compared
with the prior period, Compounding & Solutions results were
relatively unchanged. Advanced Polymers results improved
approximately $10 million driven by
modest improvement in construction demand.
Three months ended September 30,
2019 versus three months ended September 30, 2018 - EBITDA increased
$32 million versus the third quarter
2018. Integration costs related to the acquisition and
assigned to the segment were $43
million during the third quarter 2019, $6 million dollars lower than the transaction and
integration costs in the third quarter 2018. Compared with
the prior period, Compounding & Solutions results increased
$30 million primarily due to the
addition of new product lines from the acquisition. Advanced
Polymers results were relatively unchanged.
Refining - Our Refining segment produces and
markets gasoline and distillates, including diesel fuel, heating
oil and jet fuel.
Table 6 - Refining Financial Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Operating income
(loss)
|
$(52)
|
$(110)
|
$38
|
$(221)
|
$111
|
EBITDA
|
(6)
|
(66)
|
84
|
(87)
|
251
|
Three months ended September 30,
2019 versus three months ended June
30, 2019 - EBITDA increased $60
million versus the second quarter 2019. Margin
improved due to improved availability of favorably-priced heavy
sour crude oils in the U.S. Gulf Coast market. The Houston
Refinery continued to run well with crude throughput increasing to
264,000 barrels per day.
Three months ended September 30,
2019 versus three months ended September 30, 2018 - EBITDA decreased
$90 million versus the third quarter
2018. Margin declined primarily due to a decrease in the Maya
2-1-1 spread of $3.30 per barrel to
$18.13 per barrel and lower
by-product prices. Crude throughput was 264,000 barrels per
day, 33,000 barrels per day more than the prior period due to
completion of planned maintenance in the second half of 2018.
Technology - Our Technology segment develops and
licenses chemical and polyolefin process technologies and
manufactures and sells polyolefin catalysts.
Table 7 - Technology Financial Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Nine Months
Ended
|
September 30, 2019
|
June 30, 2019
|
September 30, 2018
|
September 30, 2019
|
September 30, 2018
|
Operating
income
|
$73
|
$96
|
$88
|
$242
|
$234
|
EBITDA
|
83
|
107
|
98
|
273
|
267
|
Three months ended September 30,
2019 versus three months ended June
30, 2019 - EBITDA decreased $24
million versus the second quarter 2019 primarily due to a
decrease in licensing revenue as several licenses reached revenue
milestones in the prior quarter.
Three months ended September 30,
2019 versus three months ended September 30, 2018 - EBITDA decreased
$15 million versus the third quarter
2018.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance
turnarounds, catalyst and information technology-related
expenditures, were $742 million
during the third quarter 2019. Our cash and liquid investment
balance was $1.1 billion at
September 30, 2019. There were 333 million common shares
outstanding as of September 30, 2019. The company paid
dividends of $351 million during the
third quarter 2019.
Reconciliations and Additional Information
Quantitative reconciliations of EBITDA to net income, the most
comparable GAAP measure, are provided in Table 9 at the end of this
release. Additional operating and financial information,
including reconciliations of non-GAAP measures, may be found on our
website at www.LyondellBasell.com/investorrelations.
CONFERENCE CALL
LyondellBasell will host a conference call November 1 at
11 a.m. EDT. Participants on
the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief
Financial Officer Thomas Aebischer
and Director of Investor Relations David
Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A
complete listing of toll-free numbers by country is available at
www.LyondellBasell.com/teleconference for international callers.
The passcode for all numbers is 6934553.
The slides and webcast that accompany the call will be available
at www.LyondellBasell.com/earnings.
A replay of the call will be available from 2:00 p.m. EDT November 1 until December 1 at 11:59 p.m.
EST. The replay dial-in numbers are 888-568-0509
(U.S.) and +1 203-369-3479 (international). The passcode for each
is 5713.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the largest plastics,
chemicals and refining companies in the world. Driven by its
employees around the globe, LyondellBasell produces materials and
products that are key to advancing solutions to modern
challenges like enhancing food safety through lightweight
and flexible packaging, protecting the purity of water supplies
through stronger and more versatile pipes, improving the safety,
comfort and fuel efficiency of many of the cars and trucks on the
road, and ensuring the safe and effective functionality in
electronics and appliances. LyondellBasell sells products into more
than 100 countries and is the world's largest producer of polymer
compounds and the largest licensor of polyolefin
technologies. In 2019, LyondellBasell was named to Fortune
magazine's list of the "World's Most Admired Companies." More
information about LyondellBasell can be found at
www.LyondellBasell.com.
FORWARD-LOOKING STATEMENTS
The statements in this release and the related teleconference
relating to matters that are not historical facts are
forward-looking statements. These forward-looking statements are
based upon assumptions of management which are believed to be
reasonable at the time made and are subject to significant risks
and uncertainties. Actual results could differ materially based on
factors including, but not limited to, the business cyclicality of
the chemical, polymers and refining industries; the availability,
cost and price volatility of raw materials and utilities,
particularly the cost of oil, natural gas, and associated natural
gas liquids; competitive product and pricing pressures; labor
conditions; our ability to attract and retain key personnel;
operating interruptions (including leaks, explosions, fires,
weather-related incidents, mechanical failure, unscheduled
downtime, supplier disruptions, labor shortages, strikes, work
stoppages or other labor difficulties, transportation
interruptions, spills and releases and other environmental risks);
the supply/demand balances for our and our joint ventures'
products, and the related effects of industry production capacities
and operating rates; our ability to achieve expected cost savings
and other synergies; our ability to successfully execute projects
and growth strategies; any proposed business combination, the
expected timetable for completing any proposed transactions and the
receipt of any required governmental approvals, future financial
and operating results, benefits and synergies of any proposed
transactions, future opportunities for the combined company; legal
and environmental proceedings; tax rulings, consequences or
proceedings; technological developments, and our ability to develop
new products and process technologies; potential governmental
regulatory actions; political unrest and terrorist acts; risks and
uncertainties posed by international operations, including foreign
currency fluctuations; and our ability to comply with debt
covenants and service our debt. Additional factors that could
cause results to differ materially from those described in the
forward-looking statements can be found in the "Risk Factors"
section of our Form 10-K for the year ended December 31, 2018, which can be found at
www.LyondellBasell.com on the Investor Relations page and on the
Securities and Exchange Commission's website at www.sec.gov.
INFORMATION RELATED TO FINANCIAL MEASURES
This release makes reference to certain non-GAAP financial
measures as defined in Regulation G of the U.S. Securities Exchange
Act of 1934, as amended.
EBITDA, as presented herein, may not be comparable to a
similarly titled measure reported by other companies due to
differences in the way the measure is calculated. We calculate
EBITDA as income from continuing operations plus interest expense
(net), provision for (benefit from) income taxes, and depreciation
& amortization. EBITDA should not be considered an
alternative to profit or operating profit for any period as an
indicator of our performance, or as an alternative to operating
cash flows as a measure of our liquidity.
Quantitative reconciliations of EBITDA to net income, the most
comparable GAAP measure, are provided in Table 9 at the end of this
release. Additional operating and financial information,
including reconciliations of non-GAAP measures, may be found on our
website at www.LyondellBasell.com/investorrelations.
OTHER FINANCIAL MEASURE PRESENTATION NOTES
This release contains time sensitive information that is
accurate only as of the time hereof. Information contained in this
release is unaudited and subject to change. LyondellBasell
undertakes no obligation to update the information presented herein
except to the extent required by law.
Table 8 -
Reconciliation of Segment Information to Consolidated Financial
Information
|
|
|
|
2018
|
|
|
2019
|
(Millions of U.S.
Dollars)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Total
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
2,646
|
|
$
|
2,542
|
|
$
|
2,770
|
|
$
|
2,450
|
|
$
|
10,408
|
|
$
|
2,111
|
|
$
|
2,114
|
|
$
|
2,137
|
|
$
|
6,362
|
Olefins &
Polyolefins - EAI
|
|
2,960
|
|
2,900
|
|
2,643
|
|
2,335
|
|
10,838
|
|
2,535
|
|
2,505
|
|
2,309
|
|
7,349
|
Intermediates &
Derivatives
|
|
2,343
|
|
2,584
|
|
2,509
|
|
2,152
|
|
9,588
|
|
1,894
|
|
2,062
|
|
2,046
|
|
6,002
|
Advanced Polymer
Solutions
|
|
838
|
|
833
|
|
1,039
|
|
1,314
|
|
4,024
|
|
1,339
|
|
1,258
|
|
1,186
|
|
3,783
|
Refining
|
|
2,257
|
|
2,569
|
|
2,499
|
|
1,832
|
|
9,157
|
|
1,882
|
|
2,180
|
|
2,134
|
|
6,196
|
Technology
|
|
115
|
|
182
|
|
171
|
|
115
|
|
583
|
|
141
|
|
173
|
|
146
|
|
460
|
Other/Eliminations
|
|
(1,392)
|
|
(1,404)
|
|
(1,476)
|
|
(1,322)
|
|
(5,594)
|
|
(1,124)
|
|
(1,244)
|
|
(1,236)
|
|
(3,604)
|
Continuing
operations
|
|
$
|
9,767
|
|
$
|
10,206
|
|
$
|
10,155
|
|
$
|
8,876
|
|
$
|
39,004
|
|
$
|
8,778
|
|
$
|
9,048
|
|
$
|
8,722
|
|
$
|
26,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
629
|
|
$
|
543
|
|
$
|
572
|
|
$
|
507
|
|
$
|
2,251
|
|
$
|
384
|
|
$
|
504
|
|
$
|
524
|
|
$
|
1,412
|
Olefins &
Polyolefins - EAI
|
|
281
|
|
245
|
|
141
|
|
15
|
|
682
|
|
186
|
|
226
|
|
202
|
|
614
|
Intermediates &
Derivatives
|
|
408
|
|
569
|
|
431
|
|
308
|
|
1,716
|
|
314
|
|
372
|
|
314
|
|
1,000
|
Advanced Polymer
Solutions
|
|
114
|
|
112
|
|
48
|
|
55
|
|
329
|
|
119
|
|
91
|
|
67
|
|
277
|
Refining
|
|
15
|
|
58
|
|
38
|
|
(139)
|
|
(28)
|
|
(59)
|
|
(110)
|
|
(52)
|
|
(221)
|
Technology
|
|
46
|
|
100
|
|
88
|
|
50
|
|
284
|
|
73
|
|
96
|
|
73
|
|
242
|
Other
|
|
1
|
|
(1)
|
|
(1)
|
|
(2)
|
|
(3)
|
|
—
|
|
(2)
|
|
(4)
|
|
(6)
|
Continuing
operations
|
|
$
|
1,494
|
|
$
|
1,626
|
|
$
|
1,317
|
|
$
|
794
|
|
$
|
5,231
|
|
$
|
1,017
|
|
$
|
1,177
|
|
$
|
1,124
|
|
$
|
3,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
106
|
|
$
|
109
|
|
$
|
111
|
|
$
|
116
|
|
$
|
442
|
|
$
|
115
|
|
$
|
117
|
|
$
|
118
|
|
$
|
350
|
Olefins &
Polyolefins - EAI
|
|
56
|
|
52
|
|
50
|
|
50
|
|
208
|
|
53
|
|
52
|
|
51
|
|
156
|
Intermediates &
Derivatives
|
|
73
|
|
72
|
|
71
|
|
71
|
|
287
|
|
72
|
|
74
|
|
75
|
|
221
|
Advanced Polymer
Solutions
|
|
8
|
|
9
|
|
22
|
|
30
|
|
69
|
|
29
|
|
30
|
|
32
|
|
91
|
Refining
|
|
46
|
|
46
|
|
45
|
|
55
|
|
192
|
|
43
|
|
44
|
|
41
|
|
128
|
Technology
|
|
10
|
|
12
|
|
10
|
|
11
|
|
43
|
|
10
|
|
11
|
|
10
|
|
31
|
Continuing
operations
|
|
$
|
299
|
|
$
|
300
|
|
$
|
309
|
|
$
|
333
|
|
$
|
1,241
|
|
$
|
322
|
|
$
|
328
|
|
$
|
327
|
|
$
|
977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA:(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
756
|
|
$
|
671
|
|
$
|
704
|
|
$
|
631
|
|
$
|
2,762
|
|
$
|
516
|
|
$
|
635
|
|
$
|
653
|
|
$
|
1,804
|
Olefins &
Polyolefins - EAI
|
|
419
|
|
355
|
|
262
|
|
127
|
|
1,163
|
|
296
|
|
331
|
|
291
|
|
918
|
Intermediates &
Derivatives
|
|
486
|
|
642
|
|
504
|
|
379
|
|
2,011
|
|
390
|
|
448
|
|
390
|
|
1,228
|
Advanced Polymer
Solutions
|
|
123
|
|
121
|
|
70
|
|
86
|
|
400
|
|
148
|
|
120
|
|
102
|
|
370
|
Refining
|
|
63
|
|
104
|
|
84
|
|
(84)
|
|
167
|
|
(15)
|
|
(66)
|
|
(6)
|
|
(87)
|
Technology
|
|
56
|
|
113
|
|
98
|
|
61
|
|
328
|
|
83
|
|
107
|
|
83
|
|
273
|
Other
|
|
10
|
|
4
|
|
10
|
|
12
|
|
36
|
|
10
|
|
4
|
|
—
|
|
14
|
Continuing
operations
|
|
$
|
1,913
|
|
$
|
2,010
|
|
$
|
1,732
|
|
$
|
1,212
|
|
$
|
6,867
|
|
$
|
1,428
|
|
$
|
1,579
|
|
$
|
1,513
|
|
$
|
4,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital, turnarounds
and IT deferred spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
|
$
|
242
|
|
$
|
311
|
|
$
|
247
|
|
$
|
279
|
|
$
|
1,079
|
|
$
|
276
|
|
$
|
257
|
|
$
|
295
|
|
$
|
828
|
Olefins &
Polyolefins - EAI
|
|
58
|
|
40
|
|
58
|
|
92
|
|
248
|
|
64
|
|
39
|
|
45
|
|
148
|
Intermediates &
Derivatives
|
|
68
|
|
80
|
|
100
|
|
161
|
|
409
|
|
179
|
|
238
|
|
317
|
|
734
|
Advanced Polymer
Solutions
|
|
15
|
|
10
|
|
16
|
|
21
|
|
62
|
|
16
|
|
11
|
|
14
|
|
41
|
Refining
|
|
36
|
|
45
|
|
47
|
|
122
|
|
250
|
|
43
|
|
53
|
|
41
|
|
137
|
Technology
|
|
8
|
|
9
|
|
12
|
|
19
|
|
48
|
|
17
|
|
17
|
|
26
|
|
60
|
Other
|
|
2
|
|
1
|
|
2
|
|
4
|
|
9
|
|
4
|
|
7
|
|
4
|
|
15
|
Continuing
operations
|
|
$
|
429
|
|
$
|
496
|
|
$
|
482
|
|
$
|
698
|
|
$
|
2,105
|
|
$
|
599
|
|
$
|
622
|
|
$
|
742
|
|
$
|
1,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
See Table 9 for the
reconciliation of EBITDA to net income.
|
Table 9 -
Reconciliation of Net Income to EBITDA
|
|
2018
|
|
2019
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
|
Q2
|
|
Q3
|
|
Total
|
Net income
(a)(b)
|
$
|
1,231
|
|
$
|
1,654
|
|
$
|
1,113
|
|
$
|
692
|
|
$
|
4,690
|
|
$
|
817
|
|
|
$
|
1,003
|
|
$
|
965
|
|
$
|
2,785
|
Loss from
discontinued operations, net of tax
|
—
|
|
1
|
|
2
|
|
5
|
|
8
|
|
—
|
|
|
3
|
|
4
|
|
7
|
Income from
continuing operations(a)(b)
|
1,231
|
|
1,655
|
|
1,115
|
|
697
|
|
4,698
|
|
817
|
|
|
1,006
|
|
969
|
|
2,792
|
Provision for (benefit from)
income taxes(b)
|
303
|
|
(21)
|
|
232
|
|
99
|
|
613
|
|
203
|
|
|
169
|
|
136
|
|
508
|
Depreciation and
amortization
|
299
|
|
300
|
|
309
|
|
333
|
|
1,241
|
|
322
|
|
|
328
|
|
327
|
|
977
|
Interest expense,
net
|
80
|
|
76
|
|
76
|
|
83
|
|
315
|
|
86
|
|
|
76
|
|
81
|
|
243
|
EBITDA(c)
|
$
|
1,913
|
|
$
|
2,010
|
|
$
|
1,732
|
|
$
|
1,212
|
|
$
|
6,867
|
|
$
|
1,428
|
|
|
$
|
1,579
|
|
$
|
1,513
|
|
$
|
4,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The third quarter of
2018, fourth quarter of 2018, first quarter of 2019, second quarter
of 2019 and third quarter of 2019 include after-tax charges of $42
million, $15 million, $12 million, $15 million and $33 million,
respectively, for acquisition-related transaction and integration
costs associated with our acquisition of A. Schulman.
|
(b)
|
The second quarter of
2018 and third quarter of 2019 includes a non-cash benefit of $346
million and $85 million, respectively, from the release of
unrecognized tax benefits and associated accrued
interest.
|
(c)
|
EBITDA for the third
quarter of 2018, fourth quarter of 2018, first quarter of 2019,
second quarter of 2019 and third quarter of 2019 include pre-tax
charges of $53 million, $20 million, $16 million, $19 million and
$43 million, respectively, for acquisition-related transaction and
integration costs associated with our acquisition of A.
Schulman.
|
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SOURCE LyondellBasell Industries