HOUSTON and LONDON, Jan. 31,
2020 /PRNewswire/ --
Highlights
- Net Income: $0.6 billion in the
fourth quarter; $3.4 billion in
2019
- Diluted earnings per share: $1.83
per share in the fourth quarter; $9.58 per share in 2019
- EBITDA: $1.2 billion in the
fourth quarter; $5.7 billion in
2019
- Record quarterly and annual EBITDA for the Technology
segment
- Cash from operating activities of $1.2
billion in the fourth quarter; $5.0
billion in 2019
- Returned $5.2 billion to
shareholders in the form of dividends and repurchased shares in
2019
Comparisons with the prior quarter, fourth quarter 2018 and year
ended 2018 are available in the following table:
Table 1 - Earnings Summary
Millions of
U.S. dollars (except share data)
|
Three Months
Ended
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Sales and other
operating revenues
|
$8,179
|
$8,722
|
$8,876
|
$34,727
|
$39,004
|
Net income
|
612
|
965
|
692
|
3,397
|
4,690
|
Diluted earnings per
share
|
1.83
|
2.85
|
1.79
|
9.58
|
12.01
|
Weighted average
diluted share count
|
334
|
337
|
381
|
353
|
389
|
EBITDA
(a)
|
1,172
|
1,513
|
1,212
|
5,692
|
6,867
|
|
|
(a)
|
See the end of this
release for an explanation of the Company's use of EBITDA and Table
9 for reconciliations of net income to EBITDA.
|
LyondellBasell Industries (NYSE: LYB) today announced net income
for the fourth quarter 2019 of $0.6
billion, or $1.83 per
share. Fourth quarter 2019 EBITDA was $1.2 billion. Full year 2019 net income was
$3.4 billion, or $9.58 per share, and EBITDA was $5.7 billion. The full year 2019 included
$89 million of integration costs that
impacted earnings by $0.26 per share
that were partially offset by an $85
million non-cash tax settlement that increased earnings by
$0.24 per share. Integration
activities related to the 2018 acquisition of A. Schulman are on
schedule with $130 million in forward
annual run-rate synergies as of December 31,
2019.
"During 2019 LyondellBasell continued to exhibit strong cash
generation and remained committed to our disciplined capital
allocation strategy. Over each of the past six years, we have
consistently delivered $5-6 billion
in cash from operating activities. We affirmed our commitment
to a strong and progressive dividend during 2019 by increasing our
quarterly dividend for the eleventh time and returning a total of
$5.2 billion in dividends and share
repurchases to shareholders. Our businesses benefited from
abundant and low-cost natural gas liquid feedstocks throughout the
year, and we demonstrated our capability to derive value from
M&A through the integration of the A. Schulman acquisition,"
said Bob Patel, LyondellBasell
CEO.
"During the fourth quarter, margins within most of our
businesses were impacted by slow industrial demand and typical
seasonality. Low-cost butane supported the highest fourth
quarter profitability for our Oxyfuels and Related Products
business over the past five years. Refining margins improved
on a higher Maya 2-1-1 crack spread and relatively strong prices
for naphtha and coke. Our Technology business achieved record
licensing revenues, contributing to the most profitable year in
company history for the segment."
"In 2019, we developed opportunities to expand into new markets
by leveraging LyondellBasell technologies to strengthen our
position in Asia. In June, we announced new polypropylene
capacity through our Thailand
joint venture, HMC Polymers. In September, we signed a
Memorandum of Understanding (MoU) with Liaoning Bora Enterprise
Group to build an integrated cracker and expand our footprint in
the rapidly growing Chinese market. Recently, we announced
our intention to expand our existing partnership with Sinopec to
build a second propylene oxide (PO) and styrene monomer (SM) plant
in China utilizing our advantaged
technology. Our leading technologies are satisfying rising
demand for our products in the fastest growing regions of the
world," Patel said.
OUTLOOK
"Our foundations of operational excellence, cost management and
disciplined capital allocation continue to serve us well in the
current challenging environment. We anticipate typical
seasonal improvements for our businesses as we progress through the
second and third quarters of 2020. Favorable resolution of
trade policies and a rebound in industrial demand could provide
significant upside for our industry. With the expected
benefits from the IMO 2020 regulations for our Houston Refinery and
the completion of our new Hyperzone project, we are
well-poised to extend LyondellBasell's outstanding track record of
cash generation," said Patel.
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 incorporate 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
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Operating
income
|
$365
|
$524
|
$507
|
$1,777
|
$2,251
|
EBITDA
|
498
|
653
|
631
|
2,302
|
2,762
|
Three months ended December 31,
2019 versus three months ended September 30, 2019 - EBITDA decreased
$155 million versus the third quarter
2019. Compared with the prior period, olefins results
decreased approximately $20 million
with a decline in margin partially offset by an increase in
volume. Ethylene margin decreased primarily due to higher
feedstock costs and a lower propylene price, while volume increased
with the completion of planned maintenance. Polyolefin
results declined $135 million due to
a seasonal decline in margins and volumes. Margins declined
mainly in polyethylene with a spread decrease over ethylene of more
than $130 per ton.
Three months ended December 31,
2019 versus three months ended December 31, 2018 - EBITDA decreased
$133 million versus the fourth
quarter 2018. Fourth quarter 2019 results increased by
$35 million due to inventory
valuation changes relative to the prior period. Olefins
results increased more than $60
million versus the fourth quarter 2018. Ethylene
margin expanded as lower feedstock costs were partially offset by a
lower propylene price. Polyolefin results decreased about
$235 million driven by a spread
decline in polyethylene and polypropylene of more than $365 per ton and $110 per ton, respectively.
Full year ended December 31,
2019 versus full year ended December
31, 2018 - EBITDA decreased $460
million versus 2018. Full year results increased by
$65 million due to inventory
valuation changes relative to the prior period. Olefins
results increased approximately $255
million versus 2018 with an increase in margin partially
offset by a decline in volume. Ethylene margin increased as
lower feedstock costs were partially offset by a lower propylene
price. Polyolefin results decreased about $765 million driven by a spread decrease in
polyethylene over ethylene of more than $260 per ton.
Olefins & Polyolefins - Europe, Asia,
International (O&P-EAI) - Our O&P-EAI
segment produces and markets Olefins & Co-products,
polyethylene and polypropylene.
Table 3 - O&P-EAI Financial Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Operating
income
|
$59
|
$202
|
$15
|
$673
|
$682
|
EBITDA
|
144
|
291
|
127
|
1,062
|
1,163
|
Three months ended December 31,
2019 versus three months ended September 30, 2019 - EBITDA decreased
$147 million versus the third quarter
2019. Fourth quarter results increased by $25 million due to inventory valuation changes
relative to the prior period. Olefins results decreased about
$140 million versus the third quarter
2019. Ethylene margin decreased driven by higher feedstock
costs and a lower propylene price. Combined polyolefins
results decreased approximately $45
million due to a seasonal decline in margins and
volumes. Polyolefin margins declined driven by spread
decreases in polyethylene and polypropylene over monomer.
Three months ended December 31,
2019 versus three months ended December 31, 2018 - EBITDA increased
$17 million versus the fourth quarter
2018. Fourth quarter 2019 results increased by $35 million due to inventory valuation changes
relative to the prior period. The fourth quarter 2018
included a $36 million gain on the
sale of our carbon black subsidiary in France. Compared with
the prior period, olefins results were relatively unchanged.
Volume increased driven by improved reliability with planned and
unplanned maintenance impacting the fourth quarter 2018 and was
offset by a decline in margin. Combined polyolefins results
were relatively unchanged with a small decrease in polypropylene
margin largely offset by an increase in polypropylene volume.
Joint venture equity income increased approximately $10 million.
Full year ended December 31,
2019 versus full year ended December
31, 2018 - EBITDA decreased $101
million versus 2018. Full year 2019 results include
the impact of approximately $55
million due to a decrease in the euro versus the U.S. dollar
exchange rate relative to 2018 and increased by $35 million due to inventory valuation changes
relative to the prior period. 2018 results include a
$36 million gain on the sale of our
carbon black subsidiary in France. Compared with the prior
period, olefins results increased approximately $75 million due to improvement in volume and
margin. Margin increased driven by declining feedstock costs
that exceeded the decrease in ethylene price. Volume
increased driven by improved reliability with planned and unplanned
maintenance impacting the fourth quarter 2018. Combined
polyolefins results decreased $65
million. Polyolefin margins declined driven by spread
decreases in polyethylene and polypropylene over monomer.
Polypropylene volume increased, partially offsetting the decline in
polyolefin margins. Joint venture equity income decreased
about $55 million primarily due to
reduced polyolefin spreads.
Intermediates & Derivatives (I&D) -
Our I&D segment produces and markets Propylene Oxide &
Derivatives, Oxyfuels & 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
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Operating
income
|
$249
|
$314
|
$308
|
$1,249
|
$1,716
|
EBITDA
|
329
|
390
|
379
|
1,557
|
2,011
|
Three months ended December 31,
2019 versus three months ended September 30, 2019 - EBITDA decreased
$61 million versus the third quarter
2019. Compared with the prior period, Propylene Oxide &
Derivatives results decreased about $10
million driven by lower margins due to sales mix.
Intermediate Chemicals results decreased approximately $50 million driven by margin declines for most
products. Oxyfuels & Related Products results were
relatively unchanged.
Three months ended December 31,
2019 versus three months ended December 31, 2018 - EBITDA decreased
$50 million versus the fourth quarter
2018. Compared with the prior period, Propylene Oxide &
Derivatives results decreased approximately $15 million with lower margins due to sales mix,
partially offset by increased volumes. Intermediate Chemicals
results decreased $165 million due to
margin declines for all products and reduced volumes from planned
maintenance activities. Oxyfuels & Related Products
results increased more than $110
million driven by improved margins due to contract price
improvements and low-cost butane. Volumes increased due to
planned maintenance in the fourth quarter of 2018.
Full year ended December 31,
2019 versus full year ended December
31, 2018 - EBITDA decreased $454
million versus a record 2018. Compared with the prior
period, Propylene Oxide & Derivatives results decreased
approximately $95 million driven by
lower volumes and lower margins due to sales mix.
Intermediate Chemicals results decreased about $510 million due to margin declines in most
businesses, primarily in styrene. Volumes decreased in all
businesses driven by planned maintenance and unplanned
downtime. Oxyfuels & Related Products increased
approximately $165 million.
Margins expanded due to contract price improvements and low-cost
butane.
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. Results for the segment
incorporate the businesses acquired from A. Schulman beginning on
August 21, 2018.
Table 5 - Advanced Polymer Solutions Financial
Overview
Millions of
U.S. dollars
|
Three Months
Ended
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Operating
income
|
$13
|
$67
|
$55
|
$290
|
$329
|
EBITDA
|
54
|
102
|
86
|
424
|
400
|
Three months ended December 31,
2019 versus three months ended September 30, 2019 - EBITDA decreased
$48 million versus the third quarter
2019. Integration costs related to the acquisition of A.
Schulman were $5 million lower in the
fourth quarter 2019 versus the third quarter. Compared with
the prior period, Compounding & Solutions results decreased
approximately $35 million due to
continued automotive market headwinds that impacted both volumes
and margins. Advanced Polymers results decreased $20 million with decline in margin and lower
volume due to seasonal construction demand.
Three months ended December 31,
2019 versus three months ended December 31, 2018 - EBITDA decreased
$32 million versus the fourth quarter
2018. Fourth quarter 2019 results increased by $15 million due to inventory valuation changes
relative to the prior period. Integration costs related to
the acquisition were $18 million
higher in the fourth quarter 2019 versus the fourth quarter
2018. Compared with the prior period, Compounding &
Solutions results decreased $20
million. Volumes declined due to a soft automotive
market. Advanced Polymers results decreased $10 million driven by lower volumes.
Full year ended December 31,
2019 versus full year ended December
31, 2018 - EBITDA increased $24
million versus 2018. Transaction and integration costs
related to the acquisition and assigned to the segment were
$47 million higher in 2019 versus
2018. Compared with the prior period, Compounding &
Solutions results increased approximately $105 million driven by the addition of new
product lines from the acquisition. Advanced Polymers results
decreased about $40 million driven by
a decrease in volumes due to lower automotive and industrial
roofing demand.
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
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Operating income
(loss)
|
$(19)
|
$(52)
|
$(139)
|
$(240)
|
$(28)
|
EBITDA
|
22
|
(6)
|
(84)
|
(65)
|
167
|
Three months ended December 31,
2019 versus three months ended September 30, 2019 - EBITDA increased
$28 million versus the third quarter
2019. Margins improved due to an increase in the Maya 2-1-1
industry benchmark crack spread of $1.31 per barrel to $19.44 per barrel and relative strong prices for
naphtha and coke. The Houston Refinery continued to run reliably
with a small increase in crude throughput of 3,000 barrels per day
to 267,000 barrels per day.
Three months ended December 31,
2019 versus three months ended December 31, 2018 - EBITDA increased
$106 million versus the fourth
quarter 2018. The Maya 2-1-1 crack spread increased
significantly by $8.55 per barrel to
$19.44 per barrel. Margin
improvement from the Maya 2-1-1 crack spread was partially offset
by higher prices of heavy sour crude oil purchased in the U.S. Gulf
Coast market. The Houston Refinery operated at 267,000
barrels per day, 83,000 barrels per day more than the prior period
due to the completion of planned maintenance in the second half of
2018.
Full year ended December 31,
2019 versus full year ended December
31, 2018 - EBITDA decreased $232
million versus 2018. Margins decreased due to limited
availability of favorably-priced heavy sour crude oil in the U.S.
Gulf Coast and a decrease in the Maya 2-1-1 crack spread of
$2.27 per barrel to $17.58 per barrel. Crude throughput
averaged 263,000 barrels per day, 32,000 barrels per day more than
the prior period due to the 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
|
Year
Ended
|
December 31,
2019
|
September 30,
2019
|
December 31,
2018
|
December 31,
2019
|
December 31,
2018
|
Operating
income
|
$132
|
$73
|
$50
|
$374
|
$284
|
EBITDA
|
138
|
83
|
61
|
411
|
328
|
Three months ended December 31,
2019 versus three months ended September 30, 2019 - EBITDA increased
$55 million versus the third quarter
2019 result driven by higher licensing revenue as significant
licenses reached revenue recognition milestones.
Three months ended December 31,
2019 versus three months ended December 31, 2018 - EBITDA increased
$77 million versus the fourth quarter
2018 result driven by higher licensing revenue.
Full year ended December 31,
2019 versus full year ended December
31, 2018 - EBITDA increased $83
million versus 2018. The increase was driven by higher
licensing revenue.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance
turnarounds, catalyst and information technology-related
expenditures, were $731 million
during the fourth quarter 2019 and $2.7
billion for the full year 2019. Our cash and liquid
investment balance was $1.1 billion
at December 31, 2019. We repurchased 42.7 million
ordinary shares during 2019. There were 333 million common shares
outstanding as of December 31, 2019. The company paid
dividends of $1.5 billion during
2019.
Reconciliations and Additional Information
Quantitative reconciliations of net income, the most comparable
GAAP measure, to EBITDA 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 January 31 at 11 a.m.
EST. Participants on the call will include Chief
Executive Officer Bob Patel,
Executive Vice President and Chief Financial Officer Michael McMurray 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. EST January
31 until March 2 at
11:59 p.m. EST. The replay
dial-in numbers are 800-759-4057 (U.S.) and +1 402-998-0479
(international). The passcode for each is 1160.
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
polypropylene compounds and the largest licensor of polyolefin
technologies. In 2020, LyondellBasell was named to Fortune
magazine's list of the "World's Most Admired Companies" for the
third consecutive year. 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.
Additional operating and financial information, including
reconciliations of non-GAAP measures to the most directly
comparable GAAP measure, may be found in Table 9 at the end of this
release and 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
|
|
Q4
|
|
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
|
|
$
|
2,073
|
|
$
|
8,435
|
Olefins &
Polyolefins - EAI
|
2,960
|
|
2,900
|
|
2,643
|
|
2,335
|
|
10,838
|
|
2,535
|
|
2,505
|
|
2,309
|
|
2,155
|
|
9,504
|
Intermediates &
Derivatives
|
2,343
|
|
2,584
|
|
2,509
|
|
2,152
|
|
9,588
|
|
1,894
|
|
2,062
|
|
2,046
|
|
1,832
|
|
7,834
|
Advanced Polymer
Solutions
|
838
|
|
833
|
|
1,039
|
|
1,314
|
|
4,024
|
|
1,339
|
|
1,258
|
|
1,186
|
|
1,067
|
|
4,850
|
Refining
|
2,257
|
|
2,569
|
|
2,499
|
|
1,832
|
|
9,157
|
|
1,882
|
|
2,180
|
|
2,134
|
|
2,055
|
|
8,251
|
Technology
|
115
|
|
182
|
|
171
|
|
115
|
|
583
|
|
141
|
|
173
|
|
146
|
|
203
|
|
663
|
Other/Eliminations
|
(1,392)
|
|
(1,404)
|
|
(1,476)
|
|
(1,322)
|
|
(5,594)
|
|
(1,124)
|
|
(1,244)
|
|
(1,236)
|
|
(1,206)
|
|
(4,810)
|
Continuing
Operations
|
$
|
9,767
|
|
$
|
10,206
|
|
$
|
10,155
|
|
$
|
8,876
|
|
$
|
39,004
|
|
$
|
8,778
|
|
$
|
9,048
|
|
$
|
8,722
|
|
$
|
8,179
|
|
$
|
34,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
629
|
|
$
|
543
|
|
$
|
572
|
|
$
|
507
|
|
$
|
2,251
|
|
$
|
384
|
|
$
|
504
|
|
$
|
524
|
|
$
|
365
|
|
$
|
1,777
|
Olefins &
Polyolefins - EAI
|
281
|
|
245
|
|
141
|
|
15
|
|
682
|
|
186
|
|
226
|
|
202
|
|
59
|
|
673
|
Intermediates &
Derivatives
|
408
|
|
569
|
|
431
|
|
308
|
|
1,716
|
|
314
|
|
372
|
|
314
|
|
249
|
|
1,249
|
Advanced Polymer
Solutions
|
114
|
|
112
|
|
48
|
|
55
|
|
329
|
|
119
|
|
91
|
|
67
|
|
13
|
|
290
|
Refining
|
15
|
|
58
|
|
38
|
|
(139)
|
|
(28)
|
|
(59)
|
|
(110)
|
|
(52)
|
|
(19)
|
|
(240)
|
Technology
|
46
|
|
100
|
|
88
|
|
50
|
|
284
|
|
73
|
|
96
|
|
73
|
|
132
|
|
374
|
Other
|
1
|
|
(1)
|
|
(1)
|
|
(2)
|
|
(3)
|
|
—
|
|
(2)
|
|
(4)
|
|
(1)
|
|
(7)
|
Continuing
Operations
|
$
|
1,494
|
|
$
|
1,626
|
|
$
|
1,317
|
|
$
|
794
|
|
$
|
5,231
|
|
$
|
1,017
|
|
$
|
1,177
|
|
$
|
1,124
|
|
$
|
798
|
|
$
|
4,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
106
|
|
$
|
109
|
|
$
|
111
|
|
$
|
116
|
|
$
|
442
|
|
$
|
115
|
|
$
|
117
|
|
$
|
118
|
|
$
|
120
|
|
$
|
470
|
Olefins &
Polyolefins - EAI
|
56
|
|
52
|
|
50
|
|
50
|
|
208
|
|
53
|
|
52
|
|
51
|
|
52
|
|
208
|
Intermediates &
Derivatives
|
73
|
|
72
|
|
71
|
|
71
|
|
287
|
|
72
|
|
74
|
|
75
|
|
74
|
|
295
|
Advanced Polymer
Solutions
|
8
|
|
9
|
|
22
|
|
30
|
|
69
|
|
29
|
|
30
|
|
32
|
|
42
|
|
133
|
Refining
|
46
|
|
46
|
|
45
|
|
55
|
|
192
|
|
43
|
|
44
|
|
41
|
|
41
|
|
169
|
Technology
|
10
|
|
12
|
|
10
|
|
11
|
|
43
|
|
10
|
|
11
|
|
10
|
|
6
|
|
37
|
Continuing
Operations
|
$
|
299
|
|
$
|
300
|
|
$
|
309
|
|
$
|
333
|
|
$
|
1,241
|
|
$
|
322
|
|
$
|
328
|
|
$
|
327
|
|
$
|
335
|
|
$
|
1,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA:(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
756
|
|
$
|
671
|
|
$
|
704
|
|
$
|
631
|
|
$
|
2,762
|
|
$
|
516
|
|
$
|
635
|
|
$
|
653
|
|
$
|
498
|
|
$
|
2,302
|
Olefins &
Polyolefins - EAI
|
419
|
|
355
|
|
262
|
|
127
|
|
1,163
|
|
296
|
|
331
|
|
291
|
|
144
|
|
1,062
|
Intermediates &
Derivatives
|
486
|
|
642
|
|
504
|
|
379
|
|
2,011
|
|
390
|
|
448
|
|
390
|
|
329
|
|
1,557
|
Advanced Polymer
Solutions
|
123
|
|
121
|
|
70
|
|
86
|
|
400
|
|
148
|
|
120
|
|
102
|
|
54
|
|
424
|
Refining
|
63
|
|
104
|
|
84
|
|
(84)
|
|
167
|
|
(15)
|
|
(66)
|
|
(6)
|
|
22
|
|
(65)
|
Technology
|
56
|
|
113
|
|
98
|
|
61
|
|
328
|
|
83
|
|
107
|
|
83
|
|
138
|
|
411
|
Other
|
10
|
|
4
|
|
10
|
|
12
|
|
36
|
|
10
|
|
4
|
|
—
|
|
(13)
|
|
1
|
Continuing
Operations
|
$
|
1,913
|
|
$
|
2,010
|
|
$
|
1,732
|
|
$
|
1,212
|
|
$
|
6,867
|
|
$
|
1,428
|
|
$
|
1,579
|
|
$
|
1,513
|
|
$
|
1,172
|
|
$
|
5,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital, turnarounds
and IT deferred spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
242
|
|
$
|
311
|
|
$
|
247
|
|
$
|
279
|
|
$
|
1,079
|
|
$
|
276
|
|
$
|
257
|
|
$
|
295
|
|
$
|
271
|
|
$
|
1,099
|
Olefins &
Polyolefins - EAI
|
58
|
|
40
|
|
58
|
|
92
|
|
248
|
|
64
|
|
39
|
|
45
|
|
65
|
|
213
|
Intermediates &
Derivatives
|
68
|
|
80
|
|
100
|
|
161
|
|
409
|
|
179
|
|
238
|
|
317
|
|
330
|
|
1,064
|
Advanced Polymer
Solutions
|
15
|
|
10
|
|
16
|
|
21
|
|
62
|
|
16
|
|
11
|
|
14
|
|
18
|
|
59
|
Refining
|
36
|
|
45
|
|
47
|
|
122
|
|
250
|
|
43
|
|
53
|
|
41
|
|
12
|
|
149
|
Technology
|
8
|
|
9
|
|
12
|
|
19
|
|
48
|
|
17
|
|
17
|
|
26
|
|
34
|
|
94
|
Other
|
2
|
|
1
|
|
2
|
|
4
|
|
9
|
|
4
|
|
7
|
|
4
|
|
1
|
|
16
|
Continuing
Operations
|
$
|
429
|
|
$
|
496
|
|
$
|
482
|
|
$
|
698
|
|
$
|
2,105
|
|
$
|
599
|
|
$
|
622
|
|
$
|
742
|
|
$
|
731
|
|
$
|
2,694
|
|
(a) See Table 9 for
the reconciliation of net income to EBITDA.
|
Table 9 -
Reconciliation of Net Income to EBITDA
|
|
2018
|
|
2019
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
Net income
(a)(b)
|
$
|
1,231
|
|
$
|
1,654
|
|
$
|
1,113
|
|
$
|
692
|
|
$
|
4,690
|
|
$
|
817
|
|
$
|
1,003
|
|
$
|
965
|
|
$
|
612
|
|
$
|
3,397
|
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
|
|
612
|
|
3,404
|
Provision for
(benefit from) income taxes(b)
|
303
|
|
(21)
|
|
232
|
|
99
|
|
613
|
|
203
|
|
169
|
|
136
|
|
140
|
|
648
|
Depreciation and
amortization
|
299
|
|
300
|
|
309
|
|
333
|
|
1,241
|
|
322
|
|
328
|
|
327
|
|
335
|
|
1,312
|
Interest expense,
net
|
80
|
|
76
|
|
76
|
|
83
|
|
315
|
|
86
|
|
76
|
|
81
|
|
85
|
|
328
|
EBITDA(c)
|
$
|
1,913
|
|
$
|
2,010
|
|
$
|
1,732
|
|
$
|
1,212
|
|
$
|
6,867
|
|
$
|
1,428
|
|
$
|
1,579
|
|
$
|
1,513
|
|
$
|
1,172
|
|
$
|
5,692
|
|
(a)
|
In the third quarter
of 2018, fourth quarter of 2018, first quarter of 2019, second
quarter of 2019, third quarter of 2019 and fourth quarter of 2019
are after-tax charges of $42 million, $15 million, $12 million, $15
million, $33 million and $29 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 previously
unrecognized tax benefits and release of associated accrued
interest.
|
|
|
(c)
|
EBITDA, for the third
quarter of 2018, fourth quarter of 2018, first quarter of 2019,
second quarter of 2019, third quarter of 2019 and fourth quarter of
2019 include pre-tax charges of $53 million, $20 million, $16
million, $19 million, $43 million and $38 million, respectively,
for acquisition-related transaction and integration costs
associated with our acquisition of A. Schulman.
|
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SOURCE LyondellBasell Industries