HOUSTON and LONDON, June 26,
2019 /PRNewswire/ -- LyondellBasell (NYSE: LYB), one of
the largest plastics, chemicals and refining companies in the
world, today announced net income, EBITDA and earnings per share
guidance for its second quarter financial results. Based on
currently available information, LyondellBasell expects that second
quarter EBITDA will improve by approximately 10 to 20 percent over
results for the first quarter of 2019. Net income is expected to be
in the range of $1,035 million
to $1,080 million with EBITDA projected between $1,575 million to $1,675
million and diluted earnings between $2.79 and $2.91 per
share. In the second quarter, North American integrated ethylene
margins have improved due to lower feedstock costs. Additionally,
oxyfuels are experiencing typical seasonal improvements while
refining margins have remained challenged.
LyondellBasell is providing this guidance on a one-time basis in
connection with the tender offer for its ordinary shares that
commenced on June 10, 2019 and is
scheduled to expire on July 8, 2019.
As we have not completed our quarter ending June 30, 2019 or started our related financial
close and review procedures, the guidance set forth is preliminary,
subject to change, and is based upon information available as of
the date of this press release. The guidance does not reflect
events or transactions that may occur in the remainder of the
quarter. In addition, during the course of preparing our financial
statements and their review, we may identify items that would
require us to make adjustments which may be material to the amounts
described. We will provide final results for the second quarter in
our earnings release and earnings call which are scheduled for
August 2, 2019. See the end of this
release for an explanation of LyondellBasell's use of EBITDA and
Table 1 for a reconciliation of EBITDA to net income.
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.
ADDITIONAL INFORMATION REGARDING THE TENDER OFFER
This press release is for informational purposes only. This
press release is not a recommendation to buy or sell ordinary
shares or any other securities of LyondellBasell, and it is neither
an offer to purchase nor a solicitation of an offer to sell shares
or any other securities of LyondellBasell. In connection with the
tender offer referenced herein, LyondellBasell has filed a tender
offer statement on Schedule TO, including an offer to purchase, a
related letter of transmittal and other related materials, with the
United States Securities and Exchange Commission (the "SEC"). The
tender offer is being made only pursuant to the offer to purchase,
the related letter of transmittal and other related materials filed
as part of the issuer tender offer statement on Schedule TO,
in each case as may be amended or supplemented from time to time.
Shareholders should read carefully the offer to purchase, the
related letter of transmittal and other related materials because
they contain important information, including the various terms of,
and conditions to, the tender offer. Shareholders will be able to
obtain a free copy of the tender offer statement on
Schedule TO, the offer to purchase, the related letter of
transmittal and other related materials that LyondellBasell will be
filing with the SEC at the SEC's website at www.sec.gov. In
addition, free copies of these documents may be obtained by
contacting Georgeson LLC, the information agent for the tender
offer, toll-free at 1 (866) 300-8594.
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 net income plus interest expense (net),
provision for income taxes, and depreciation and
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 reconciliation of EBITDA to
net income, the most comparable GAAP measure, is provided in
Table 1 below.
Table 1 – Reconciliation of Net Income to EBITDA.
Millions of
U.S. dollars
|
Three Months
Ended
June 30,
2019
|
Net income
|
$1,035 to
1,080
|
Provision
for income taxes
|
150 to
185
|
Depreciation and
amortization
|
320 to 330
|
Interest expense,
net
|
70 to 80
|
EBITDA
|
1,575 to
1,675
|
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 preliminary, unaudited and subject to change.
LyondellBasell undertakes no obligation to update the information
presented herein except to the extent required by law.
FORWARD-LOOKING STATEMENTS
The statements in this release 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 availability of additional information about the ongoing
fiscal quarter; the completion of the ongoing fiscal quarter,
quarterly close procedures and preparation and review of the
financial statements, 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.
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SOURCE LyondellBasell Industries