LyondellBasell Reports First-Quarter 2012 Results
ROTTERDAM, Netherlands, April 30, 2012 /PRNewswire/ –
First Quarter 2012 Highlights
- $599 million net income or $1.04 diluted earnings per share
- First-quarter EBITDA of $1,236 million
- North American olefins and refining margins strengthened across the quarter
- Operations at Berre refinery ceased in early January
- Continued debt restructuring through refinancing; weighted average interest rate will reduce to approximately 5.5 percent
LyondellBasell Industries (NYSE: LYB) today announced net income for the first quarter 2012 of $599 million, or $1.04 per share. First-quarter 2012 EBITDA was $1,236 million, a 131 percent increase from the fourth quarter 2011.
Comparisons with the prior quarter and first quarter 2011 are available in the following table.
Table 1 - Earnings Summary
--------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
---------
Millions of
U.S. dollars
(except
share data) 2012 2011 2011
------------- ---- ---- ----
Sales and
other
operating
revenues $11,879 $11,444 $12,252
---------- ------- ------- -------
Net income
(loss)(a) 599 (218) 660
---------- --- ---- ---
Diluted
earnings
(loss) per
share (U.S.
dollars) 1.04 (0.38) 1.15
------------ ---- ----- ----
Diluted share
count
(millions) 575 572 569
------------- --- --- ---
EBITDA(b) 1,236 536 1,402
-------- ----- --- -----
(a) Includes net income (loss) attributable to non-controlling interests. See Table 11.
(b) 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.
During the first quarter 2012, results improved across all business segments over the fourth quarter 2011. The most notable improvements were in the Olefins & Polyolefins – Americas segment, which benefitted from increased product pricing and lower feedstock costs, and in the Refining & Oxyfuels segment, which saw higher margins at the Houston refinery, abnormally strong margins in oxyfuels for this time of year, and the suspension of operations at the Berre refinery in early January.
Results also reflect the following charges and benefits:
Table 2 - Charges (Benefits) Included in Net Income
---------------------------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
--------- ------------ ---------
Millions of U.S. dollars
(except share data) 2012 2011 2011
------------------------ ---- ---- ----
Pretax charges (benefits):
--------------------------
Charges and
premiums
related to
repayment of
debt $ - - $431 $ - -
------------ ----- ---- -----
Berre refinery
closure costs - - 136 - -
-------------- --- --- ---
Reorganization
items (5) 15 2
-------------- --- --- ---
Corporate
restructurings - - 18 - -
-------------- --- --- ---
Impairments 22 8 5
----------- --- --- ---
Warrants -
mark to
market 10 6 59
----------- --- --- ---
Insurance
settlement - - - - (34)
---------- --- --- ---
Settlement
related to
Houston
refinery
crane
incident - - (15) - -
----------- --- --- ---
Total pretax charges (benefits) 27 599 32
------------------------------ --- --- ---
Provision for (benefit from)
income tax related to these
items (5) (151) 11
---------------------------- --- ---- ---
After-tax effect of net
charges (credits) $22 $448 $43
----------------------- --- ---- ---
Effect on diluted earnings per
share ($0.03) ($0.79) ($0.08)
------------------------------ ------ ------ ------
“We had a solid start to 2012 as margins in North American olefins and our Houston refinery rebounded from the weak levels experienced in the fourth quarter of last year,” said Jim Gallogly, LyondellBasell Chief Executive Officer. “Benchmark margins in both businesses were excellent at the end of the quarter, and the momentum has continued into the second quarter. In North American olefins, planned and unplanned industry maintenance led to a reduction in the cost of raw materials and increased ethylene prices,” he said.
“The European olefins and polyolefins markets recovered from a very poor fourth quarter but were pressured by rising raw material costs, and generally remain weak. We continue to see steady results from our Intermediates and Derivatives, and Technology segments, as well as our differentiated businesses within Olefins & Polyolefins – Europe, Asia, International,” Gallogly said.
“In early April, we took further steps in advancing our capital structure and completed a very successful refinancing of nearly all of our higher cost debt. Combined with our fourth-quarter financing, we have reduced future interest expense by approximately $325 million annually,” Gallogly said.
OUTLOOK
Commenting on the near-term outlook, Gallogly said, “The margin improvement momentum that benefitted the first quarter has continued into April. With global oil prices north of $100 a barrel, U.S. natural gas approximately $2 per million BTUs and comparatively cheap natural gas liquids, U.S. ethylene manufacturers are in a great competitive position relative to other producers. In refining, the benchmark Maya 2-1-1 crack spread remains strong, benefitting our Houston refinery.”
“Operationally, our Channelview turnaround is nearing completion and many of the units are already back on line. We have made significant investment in our facilities in recent years to ensure they operate safely and reliably. We are in a good position to benefit significantly from market opportunities in 2012 and beyond,” said Gallogly.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell operates in five business segments: 1) Olefins & Polyolefins – Americas; 2) Olefins & Polyolefins – Europe, Asia, International; 3) Intermediates & Derivatives; 4) Refining & Oxyfuels; and 5) Technology.
Olefins & Polyolefins – Americas (O&P-Americas) - The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.
Table 3 - O&P-Americas Financial Overview
-----------------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
---------
Millions of
U.S. dollars 2012 2011 2011
------------- ---- ---- ----
Operating
income $519 $328 $421
--------- ---- ---- ----
EBITDA 598 407 484
------ --- --- ---
Three months ended March 31, 2012 versus three months ended December 31, 2011 - O&P-Americas segment EBITDA increased $191 million versus the fourth quarter 2011. Compared to the prior period, olefins results increased due to higher ethylene price and lower average feedstock cost. Average ethylene sales price increased 2 cents per pound while the company’s average cost-of-ethylene-production metric decreased approximately 10 cents per pound. The decrease in the cost-of-ethylene-production was driven by lower natural gas liquids pricing, particularly ethane. Ethylene production volume was reduced by approximately 200 million pounds as a result of a planned maintenance turnaround. Polyethylene results increased approximately $40 million, primarily as a result of increased pricing, which more than offset increased feedstock costs. Polypropylene results improved approximately $20 million from the fourth quarter 2011, primarily due to higher margins. Overall, polyolefin sales volumes were slightly higher in the first quarter 2012 compared to the fourth quarter 2011. A $10 million dividend was received in the first quarter 2012 from our Indelpro joint venture.
Three months ended March 31, 2012 versus three months ended March 31, 2011 - O&P-Americas results increased $114 million versus the first quarter 2011. Olefins results increased compared to the prior year period, largely as a result of significantly improved margins. This increase was partially offset by polyethylene results, which declined approximately $70 million as a result of lower margins caused by higher ethylene prices compared to the first quarter 2011. Despite lower industry profitability in polyethylene, the overall industry ethylene / polyethylene chain margin increased from the first quarter 2011. Polypropylene results were relatively unchanged compared to the first quarter 2011.
Olefins & Polyolefins – Europe, Asia, International (O&P-EAI) - The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, global polypropylene compounds, Catalloy process resins and Polybutene-1 resins.
Table 4 - O&P-EAI Financial Overview
------------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of
U.S.
dollars 2012 2011 2011
----------- ---- ---- ----
Operating
income
(loss) $5 ($55) $179
--------- --- ---- ----
EBITDA 103 62 333
------ --- --- ---
Three months ended March 31, 2012 versus three months ended December 31, 2011 - O&P-EAI segment EBITDA increased $41 million versus the fourth quarter 2011. Olefins results increased approximately $20 million from the fourth quarter 2011 due primarily to higher volumes. Olefins price increases in the first quarter were offset by higher feedstock costs. Polyolefin results increased approximately $50 million from the prior period primarily due to higher polyethylene margins. Polypropylene compounds results increased approximately $10 million from the fourth quarter 2011. Dividends from joint ventures totaled $4 million during the first quarter 2012.
Three months ended March 31, 2012 versus three months ended March 31, 2011 - O&P-EAI segment EBITDA declined $230 million versus the first quarter 2011. Compared to the first quarter 2011, olefins results declined approximately $70 million and polyolefin results declined approximately $60 million. Both declines were driven primarily by lower margins. Polypropylene compounding results were flat compared to the prior year. Dividends from joint ventures decreased approximately $90 million.
Intermediates & Derivatives (I&D) - The primary products of this segment include propylene oxide (PO) and its co-products (styrene monomer, tertiary butyl alcohol (TBA), isobutylene and tertiary butyl hydroperoxide), and derivatives (propylene glycol, propylene glycol ethers and butanediol); acetyls, and ethylene oxide and its derivatives.
Table 5 - I&D Financial Overview
--------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of
U.S. dollars 2012 2011 2011
------------- ---- ---- ----
Operating
income $245 $134 $234
--------- ---- ---- ----
EBITDA 282 173 270
------ --- --- ---
Three months ended March 31, 2012 versus three months ended December 31, 2011 - I&D segment EBITDA increased $109 million versus the fourth quarter 2011. PO and PO derivatives results increased versus the prior period primarily due to the completion of planned maintenance turnarounds and stronger trade sales. Intermediates results increased versus the prior quarter primarily due to completion of planned maintenance turnarounds that negatively impacted acetyls and TBA sales in the fourth quarter.
Three months ended March 31, 2012 versus three months ended March 31, 2011 - I&D EBITDA increased $12 million compared to the first quarter 2011. PO and PO derivatives EBITDA increased slightly versus the prior year period due to improved margins in PO derivatives offset by weaker propylene glycol sales volumes used in deicing products. Intermediates results were flat compared to the prior period as improved BDO and TBA derivative( )margins were offset by lower results in ethylene oxide / ethylene glycols.
Refining & Oxyfuels (R&O) - The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, petrochemical raw materials, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE).
Table 6 - R&O Financial Overview
--------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of
U.S.
dollars 2012 2011 2011
----------- ---- ---- ----
Operating
income
(loss) $140 ($196) $164
--------- ---- ----- ----
EBITDA 192 (110)* 210
------ --- ----- ---
* Includes $136 million of charges related to the suspension of operations at the
Berre refinery.
Three months ended March 31, 2012 versus three months ended December 31, 2011 - Refining & Oxyfuels segment EBITDA increased $302 million versus the fourth quarter 2011. The Houston refinery operated near capacity at 259,000 barrels per day, which was relatively unchanged from the prior quarter. Results for the Houston refinery increased approximately $30 million, as margins improved from the fourth quarter 2011. Relative to the industry benchmark, the Houston refinery’s realized margins were negatively affected by the residual effects of fourth quarter 2011 crude volatility, absence of certain synergies related to the Channelview maintenance turnaround, and low refinery byproduct pricing. Oxyfuels results experienced an increase of approximately $80 million, primarily related to stronger than typical seasonal margins. The Berre refinery suspended operations on January 4, 2012. During the quarter, fixed costs associated with securing the assets continued to occur but were more than offset by sales of inventory at the refinery. The Berre refinery results in the fourth quarter 2011 include $136 million of charges related to the suspension of operations.
Three months ended March 31, 2012 versus three months ended March 31, 2011 - Refining & Oxyfuels segment EBITDA decreased $18 million versus the first quarter 2011. At the Houston refinery, EBITDA decreased approximately $110 million versus the prior year period. Results were driven by a lower industry average benchmark margin. Oxyfuels results improved approximately $90 million between the periods mainly as a result of stronger than typical seasonal margins and higher volumes. Operations at the Berre refinery were suspended on January 4, 2012.
Technology Segment – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.
Table 7 - Technology Financial Overview
---------------------------------------
Three Months Ended
------------------
March 31, December 31, March 31,
Millions of
U.S. dollars 2012 2011 2011
------------- ---- ---- ----
Operating
income $38 $11 $66
--------- --- --- ---
EBITDA 57 36 91
------ --- --- ---
Three months ended March 31, 2012 versus three months ended December 31, 2011 - Results increased primarily due to higher licensing income and catalyst sales.
Three months ended March 31, 2012 versus three months ended March 31, 2011 - Licensing income declined compared to the first quarter 2011.
Liquidity
Company liquidity, defined as cash and cash equivalents plus funds available through established lines of credit, was approximately $4.1 billion on March 31, 2012. The company’s cash balance was approximately $1.7 billion on March 31, 2012.
Capital Spending
Capital expenditures, including maintenance turnaround, catalyst and information technology related expenditures, were $229 million during the first quarter 2012.
CONFERENCE CALL
LyondellBasell will host a conference call today, April 30, 2012, at 12:00 p.m. ET. Participating on the call will be: Jim Gallogly, Chief Executive Officer; Karyn Ovelmen, Executive Vice President and Chief Financial Officer; Sergey Vasnetsov, Senior Vice President – Strategic Planning and Transactions; and Doug Pike, Vice President of Investor Relations. The toll-free dial-in number in the U.S. is 888-606-9542. For international numbers, please go to the company website, www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 1037125.
A replay of the call will be available from 3:00 p.m. ET April 30 to 11:00 p.m. ET on May 30. The replay dial-in numbers are 866-489-3828 (U.S.) and +1 203-369-1672 (international). The pass code for each is 2121.
A copy of the slides that accompany the call will be available on the LyondellBasell website at http://www.lyondellbasell.com/earnings.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the world’s largest plastics, chemical and refining companies. The company manufactures products at 58 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive components, home furnishings, construction materials and biofuels. 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 and natural gas; 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; 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, 2011, 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.
NON-GAAP 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. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures 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. These 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.
We have included EBITDA in this press release. 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. For purposes of this release, EBITDA means earnings before interest, taxes, depreciation and amortization, as adjusted for other items management does not believe are indicative of the Company’s underlying results of operations such as impairment charges, reorganization items, the effect of mark-to-market accounting on our warrants and current cost inventory adjustments. EBITDA also includes dividends from joint ventures. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternatives to operating cash flows as a measure of our liquidity.
Quantitative reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures are provided in Tables 8 and 9 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 8 - Reconciliation of Segment Information to Consolidated Financial Information
-------------------------------------------------------------------------------------
2011 2012
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1
------------------ --- --- --- --- ----- ---
Sales and other
operating revenues:
Olefins &
Polyolefins -
Americas $3,572 $4,010 $3,875 $3,423 $14,880 $3,349
Olefins &
Polyolefins -
Europe, Asia,
International 3,944 4,264 3,918 3,334 15,460 3,866
Intermediates &
Derivatives 1,692 1,777 1,617 1,401 6,487 1,699
Refining &
Oxyfuels 4,720 5,833 5,869 4,311 20,733 4,261
Technology 139 126 129 112 506 119
Other/elims (1,815) (1,968) (2,111) (1,137) (7,031) (1,415)
------ ------ ------ ------ ------ ------
Total $12,252 $14,042 $13,297 $11,444 $51,035 $11,879
======= ======= ======= ======= ======= =======
Operating income
(loss):
Olefins &
Polyolefins -
Americas $421 $509 $599 $328 $1,857 $519
Olefins &
Polyolefins -
Europe, Asia,
International 179 207 144 (55) 475 5
Intermediates &
Derivatives 234 235 259 134 862 245
Refining &
Oxyfuels 164 296 454 (196) 718 140
Technology 66 23 7 11 107 38
Other 1 (5) 4 (21) (21) (1)
Current cost
adjustment - - - - - - - - - - - -
--- --- --- --- --- ---
Total $1,065 $1,265 $1,467 $201 $3,998 $946
====== ====== ====== ==== ====== ====
Depreciation and
amortization:
Olefins &
Polyolefins -
Americas $58 $59 $64 $65 $246 $65
Olefins &
Polyolefins -
Europe, Asia,
International 57 66 69 70 262 69
Intermediates &
Derivatives 34 37 35 36 142 35
Refining &
Oxyfuels 42 46 48 61 197 50
Technology 24 16 21 23 84 18
Other - - - - - - - - - - - -
--- --- --- --- --- ---
Total $215 $224 $237 $255 $931 $237
==== ==== ==== ==== ==== ====
EBITDA: (a)
Olefins &
Polyolefins -
Americas $484 $578 $673 $407 $2,142 $598
Olefins &
Polyolefins -
Europe, Asia,
International 333 275 261 62 931 103
Intermediates &
Derivatives 270 314 297 173 1,054 282
Refining &
Oxyfuels 210 353 519 (110) 972 192
Technology 91 42 45 36 214 57
Other 14 (9) (7) (32) (34) 4
--- --- --- --- --- ---
Total EBITDA $1,402 $1,553 $1,788 $536 $5,279 $1,236
====== ====== ====== ==== ====== ======
Capital, turnarounds
and IT deferred
spending:
Olefins &
Polyolefins -
Americas $66 $138 $149 $72 $425 $102
Olefins &
Polyolefins -
Europe, Asia,
International 42 37 46 110 235 60
Intermediates &
Derivatives 5 15 25 54 99 18
Refining &
Oxyfuels 101 58 53 43 255 38
Technology 7 3 8 8 26 9
Other 1 10 - - 6 17 2
--- --- --- --- --- ---
Total 222 261 281 293 1,057 229
Deferred charges
included above (1) - - (2) (4) (7) (1)
--- --- --- --- --- ---
Capital
expenditures $221 $261 $279 $289 $1,050 $228
==== ==== ==== ==== ====== ====
(a) See Table 9 for a reconciliation of total EBITDA to net income.
Table 9 - Reconciliation of EBITDA to Net Income
------------------------------------------------
2011 2012
---- ----
(Millions of U.S.
dollars) Q1 Q2 Q3 Q4 Total Q1
------------------ --- --- --- --- ----- ---
Segment EBITDA:
Olefins &
Polyolefins -
Americas $484 $578 $673 $407 $2,142 $598
Olefins &
Polyolefins -
Europe, Asia,
International 333 275 261 62 931 103
Intermediates
& Derivatives 270 314 297 173 1,054 282
Refining &
Oxyfuels 210 353 519 (110) 972 192
Technology 91 42 45 36 214 57
Other 14 (9) (7) (32) (34) 4
--- --- --- --- --- ---
Total EBITDA 1,402 1,553 1,788 536 5,279 1,236
Adjustments to
EBITDA:
Berre refinery
closure costs - - - - - - 136 136 - -
Sale of
precious
metals - - (41) - - - - (41) - -
Corporate
restructurings - - 61 14 18 93 - -
Environmental
accruals - - 16 - - - - 16 - -
Settlement
related to
Houston
refinery
crane
incident - - - - - - (15) (15) - -
Insurance
settlement (34) - - - - - - (34) - -
--- --- --- --- --- ---
Total Adjusted
EBITDA 1,368 1,589 1,802 675 5,434 1,236
Add:
Income from
equity
investments 58 73 52 33 216 46
Unrealized
foreign
exchange
(loss) gain (3) 4 (17) (11) (27) (10)
Deduct:
Adjustments to
EBITDA 34 (36) (14) (139) (155) - -
Depreciation
and
amortization (215) (224) (237) (255) (931) (237)
Impairment
charges (5) (13) (26) (8) (52) (22)
Reorganization
items (2) (28) - - (15) (45) 5
Interest
expense, net (155) (164) (145) (542) (1,006) (95)
Joint venture
dividends
received (96) (11) (55) (44) (206) (14)
Provision for
income taxes (263) (388) (489) 92 (1,048) (302)
Fair value
change in
warrants (59) 6 22 (6) (37) (10)
Other (2) (5) 2 2 (3) 2
--- --- --- --- --- ---
Net income (loss) 660 803 895 (218) 2,140 599
Adjustments to
EBITDA (34) 36 14 139 155 - -
Premiums and
charges on
early
repayment of
debt - - 12 - - 431 443 - -
Reorganization
items 2 28 - - 15 45 (5)
Asset
retirement
obligation - - - - 10 - - 10 - -
Fair value
change in
warrants 59 (6) (22) 6 37 10
Impairment
charges 5 13 26 8 52 22
Tax impact of
net income
(loss)
adjustments 11 (21) (14) (151) (175) (5)
--- --- --- ---- ---- ---
Adjusted Net
Income $703 $865 $909 $230 $2,707 $621
==== ==== ==== ==== ====== ====
Earnings (loss)
per share:
Diluted
earnings per
share $1.15 $1.38 $1.51 $(0.38) $3.74 $1.04
Adjustments to
net income
(loss) 0.08 0.11 0.03 0.79 0.97 0.03
---- ---- ---- ---- ---- ----
Adjusted
diluted
earnings per
share $1.23 $1.49 $1.54 $0.41 $4.71 $1.07
===== ===== ===== ===== ===== =====
Table 10 - Selected Segment Operating Information
-------------------------------------------------
2011 2012
---- ----
Q1 Q2 Q3 Q4 YTD Q1
--- --- --- --- --- ---
Olefins and Polyolefins
-Americas
Volumes (million
pounds)
-----------------
Ethylene produced 2,089 1,929 2,134 2,201 8,353 1,988
Propylene
produced 769 556 838 744 2,907 533
Polyethylene sold 1,405 1,377 1,368 1,343 5,493 1,448
Polypropylene
sold 585 611 635 640 2,471 650
Benchmark Market
Prices
-----------------
West Texas
Intermediate
crude oil (USD
per barrel) 94.60 102.34 89.54 94.06 95.11 103.03
Light Louisiana
Sweet ("LLS")
crude oil (USD
per barrel) 107.83 118.34 112.46 110.81 112.40 119.85
Natural gas (USD
per million
BTUs) 4.19 4.43 4.31 3.64 4.14 2.65
U.S. weighted
average cost of
ethylene
production
(cents/pound) 32.6 33.8 34.3 41.6 35.6 28.5
U.S. ethylene
(cents/pound) 49.3 57.5 55.8 54.4 54.3 54.9
U.S. polyethylene
[high density]
(cents/pound) 87.7 95.3 89.0 85.7 89.4 92.0
U.S. propylene
(cents/pound) 71.7 87.3 76.5 57.8 73.3 67.2
U.S.
polypropylene
[homopolymer]
(cents/pound) 100.8 113.8 103.0 84.3 100.5 93.7
Olefins and Polyolefins
-Europe, Asia,
International
Volumes (million
pounds)
-----------------
Ethylene produced 997 999 926 807 3,729 947
Propylene
produced 608 631 560 487 2,286 577
Polyethylene sold 1,305 1,279 1,349 1,210 5,143 1,316
Polypropylene
sold 1,704 1,631 1,638 1,651 6,624 1,659
Benchmark Market
Prices
-----------------
Western Europe
weighted average
cost of ethylene
production (euro 0.01 per pound) 34.7 35.4 37.3 38.5 36.5 45.4
Western Europe
ethylene (euro
0.01 per pound) 52.0 54.7 50.3 49.7 51.7 55.1
Western Europe
polyethylene
[high density]
(euro 0.01
per pound) 62.1 65.9 59.9 58.4 61.6 65.1
Western Europe
propylene (euro
0.01 per pound) 50.8 55.3 50.2 46.5 50.7 50.1
Western Europe
polypropylene
[homopolymer]
(euro 0.01
per pound) 66.6 69.4 62.0 57.6 63.9 62.9
Intermediates and
Derivatives
Volumes (million
pounds)
-----------------
Propylene oxide
and derivatives 838 791 758 716 3,103 828
Ethylene oxide
and derivatives 288 277 281 254 1,100 312
Styrene monomer 852 817 714 682 3,065 704
Acetyls 439 417 411 370 1,637 489
TBA Intermediates 485 459 433 418 1,795 462
Refining and Oxyfuels
Volumes
-------
Houston Refining
crude processing
rate (thousands
of
barrels per day) 258 263 269 262 263 259
Berre Refinery
crude processing
rate (thousands
of
barrels per day) 101 85 79 61 82 N/A
MTBE/ETBE sales
volumes (million
gallons) 192 206 260 210 868 205
Benchmark Market
Margins
-----------------
Light crude oil -
2-1-1 6.00 10.28 9.54 5.26 7.80 9.34
Light crude oil -
Maya
differential 17.87 15.50 13.99 7.45 13.76 10.81
Urals 4-1-2-1
(USD per barrel) 7.81 7.71 8.76 8.02 8.08 N/A
MTBE -Northwest
Europe (cents
per gallon) 58.9 92.7 94.1 87.0 83.1 125.1
Source: CMAI, Bloomberg, LyondellBasell Industries
Table 11 - Unaudited Income Statement Information
2011 2012
---- ----
(Millions of U.S. dollars) Q1 Q2 Q3 Q4 Total Q1
------------------------- --- --- --- --- ----- ---
Sales and other operating
revenues $12,252 $14,042 $13,297 $11,444 $51,035 $11,879
Cost of sales 10,943 12,474 11,538 10,958 45,913 10,670
Selling, general and
administrative
expenses 211 247 239 231 928 224
Research and development
expenses 33 56 53 54 196 39
--- --- --- --- --- ---
Operating income 1,065 1,265 1,467 201 3,998 946
Income from equity investments 58 73 52 33 216 46
Interest expense, net (155) (164) (145) (542) (1,006) (95)
Other income (expense), net (43) 45 10 13 25 (1)
--- --- --- --- --- ---
Income before income taxes
and
reorganization
items 925 1,219 1,384 (295) 3,233 896
Reorganization items (2) (28) - - (15) (45) 5
--- --- --- --- --- ---
Income (loss) before taxes 923 1,191 1,384 (310) 3,188 901
Provision for (benefit from)
income taxes 263 388 489 (92) 1,048 302
--- --- --- --- ----- ---
Net income (loss) 660 803 895 (218) 2,140 599
Net loss attributable to non-
controlling
interests 3 1 - - 3 7 1
--- --- --- --- --- ---
Net income (loss) attributable
to
the Company $663 $804 $895 $(215) $2,147 $600
==== ==== ==== ===== ====== ====
Table 12 - Unaudited Cash Flow Information
2011 2012
---- ----
(Millions of
U.S. dollars) Q1 Q2 Q3 Q4 Total Q1
------------- --- --- --- --- ----- ---
Net cash
provided by
operating
activities $221 $1,026 $1,531 $91 $2,869 $921
Net cash used
in investing
activities (216) (435) (320) (50) (1,021) (185)
Net cash
provided by
(used in)
financing
activities 28 (327) (118) (4,547) (4,964) (148)
Table 13 - Unaudited Balance Sheet Information
----------------------------------------------
March 31, June 30, September 30, December 31, March 31,
--------- -------- ------------- ------------ ---------
(Millions of U.S.
dollars) 2011 2011 2011 2011 2012
------------------ ---- ---- ---- ---- ----
Cash and cash
equivalents $4,383 $4,687 $5,609 $1,065 $1,670
Restricted cash - - 250 292 53 9
Accounts receivable,
net 4,764 4,901 4,038 3,778 4,209
Inventories 5,726 5,577 5,682 5,499 5,208
Prepaid expenses and
other
current assets 1,100 1,098 1,097 1,040 1,002
----- ----- ----- ----- -----
Total current
assets 15,973 16,513 16,718 11,435 12,098
Property, plant and
equipment, net 7,440 7,569 7,363 7,333 7,426
Investments and long-
term
receivables:
Investment in PO
joint
ventures 444 436 422 412 415
Equity
investments 1,586 1,654 1,594 1,559 1,605
Related party
receivable 14 19 4 4 4
Other
investments and
long-term
receivables 66 63 67 68 72
Goodwill 807 621 598 585 595
Intangible assets, net 1,344 1,310 1,237 1,177 1,149
Other assets, net 274 290 264 266 245
--- --- --- --- ---
Total assets $27,948 $28,475 $28,267 $22,839 $23,609
======= ======= ======= ======= =======
Current maturities of
long-term debt $253 $2 $2 $4 $ - -
Short-term debt 51 50 49 48 42
Accounts payable 4,099 3,999 3,307 3,414 3,545
Accrued liabilities 1,711 1,613 1,505 1,242 1,049
Deferred income taxes 246 315 315 310 310
--- --- --- --- ---
Total current
liabilities 6,360 5,979 5,178 5,018 4,946
Long-term debt 5,805 5,813 5,782 3,980 3,984
Other liabilities 2,043 2,110 2,021 2,277 2,281
Deferred income taxes 1,027 947 1,204 917 1,035
Stockholders' equity
(deficit) 12,671 13,579 14,025 10,593 11,310
Non-controlling
interests 42 47 57 54 53
--- --- --- --- ---
Total
liabilities and
stockholders'
equity
(deficit) $27,948 $28,475 $28,267 $22,839 $23,609
======= ======= ======= ======= =======
SOURCE LyondellBasell Industries
