Quantcast

LyondellBasell Reports First-Quarter 2014 Results

April 29, 2014

HOUSTON and LONDON, April 29, 2014 /PRNewswire/ –

First-Quarter 2014 Highlights

    --  Diluted earnings per share of $1.72; $943 million income from continuing
        operations
    --  EBITDA of $1,668 million notwithstanding plant maintenance and
        weather-related cost increases
    --  Growth projects progressing with the start-up of a 200 million pounds
        per year polyethylene expansion, the commencement of the La Porte
        turnaround that will enable the third quarter addition of 800 million
        pounds per year of ethylene capacity, and the issuance of final permits
        for the Corpus Christi ethylene expansion
    --  Repurchased 15 million shares during the first quarter
    --  Shareholders approved a share repurchase program for an additional 10
        percent of shares at the annual meeting on April 16, 2014; and the
        Supervisory Board approved a 10 cent per share increase of the quarterly
        interim dividend to $0.70 per share

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the first quarter 2014 of $943 million or $1.72 diluted earnings per share. First quarter 2014 EBITDA was $1,668 million.

Comparisons with the prior quarter and first quarter 2013 are shown below:


    Table 1 -
     Earnings
     Summary
    ---------

                     Three Months Ended
                     ------------------

                         March 31,      December 31,       March 31,

    Millions of U.S.
     dollars (except
     share data)                   2014               2013          2013
    ----------------               ----               ----          ----

    Sales and other
     operating
     revenues                   $11,135            $11,138       $10,669
    ---------------             -------            -------       -------

    Net income(a)                   944              1,175           900
    ------------                    ---              -----           ---

    Income from
     continuing
     operations                     943              1,177           906
    -----------                     ---              -----           ---

    Diluted earnings
     per share (U.S.
     dollars):
    ----------------

      Net income(b)                1.72               2.11          1.55
      ------------                 ----               ----          ----

      Income from
       continuing
       operations                  1.72               2.11          1.56
      -----------                  ----               ----          ----

    Diluted share
     count
     (millions)                     548                555           578
    -------------                   ---                ---           ---

    EBITDA(c)                     1,668              1,543         1,585
    --------                      -----              -----         -----

    (a) Includes net loss
     attributable to non-
     controlling interests and
     income (loss) from
     discontinued operations,
     net of tax. See Table 10.

    (b)  Includes diluted
     earnings (loss) per share
     attributable to
     discontinued operations.

    (c)  See the end of this
     release for an explanation
     of the Company's use of
     EBITDA and Table 8 for
     reconciliations of EBITDA
     to income from continuing
     operations.

The first quarter 2014 income from continuing operations benefitted from $52 million related to an environmental indemnity settlement. There was no tax impact associated with this credit. The effect on diluted earnings per share was $0.09. Please see Table 11 for charges and benefits to income from continuing operations in the prior periods.

“The first quarter results were good despite headwinds from maintenance, weather-related raw material cost volatility, and shipping delays. Exclusive of these pressures, the underlying business fundamentals remained strong and relatively unchanged,” said Jim Gallogly, LyondellBasell Chief Executive Officer.

“In the U.S., our key raw materials continue to be in abundant supply with ethane tracking natural gas prices. Although natural gas prices increased in the face of record winter temperatures, current pricing and the outlook have moderated reflecting the strength of U.S. shale developments,” Gallogly said.

“The theme for our 2013 annual report was – ‘Taking the Early Advantage.’ We are putting these words into action. Our growth program is generating immediate results as our methanol plant restart contributed to first quarter earnings and cash flow. During late March, we completed a 200 million pound per year polyethylene expansion at Matagorda and began the final steps of our La Porte ethylene expansion. Additionally in mid-April, we received the final environmental permits for our Corpus Christi ethylene expansion,” Gallogly said.

OUTLOOK

“The industry trends that developed over the past few years are expected to continue in the near term. Likewise, conditions in our businesses are generally expected to be consistent with recent quarters and seasonal trends,” Gallogly said. “During the second quarter, we expect significant planned downtime at our La Porte facility while we perform normal turnaround maintenance and additional steps to complete an 800 million pounds per year ethylene expansion. Inventory build-up in preparation for this downtime should enable us to meet customer demands while helping mitigate the financial impact on the second quarter. As we enter the summer driving season, our refining benchmark crack spread is expected to remain relatively unchanged from the first quarter,” Gallogly said.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia and International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.

Olefins and 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 2 -O&P-Americas
     Financial Overview
    ---------------------

                          Three Months Ended
                          ------------------

                               March 31,     December 31,      March 31,

    Millions of U.S.
     dollars                            2014              2013         2013
    ----------------                    ----              ----         ----

    Operating income                    $656              $801         $821
    ----------------                    ----              ----         ----

    EBITDA                               736               883          898
    ------                               ---               ---          ---

Three months ended March 31, 2014 versus three months ended December 31, 2013 - EBITDA decreased $147 million versus the fourth quarter 2013. First quarter results were negatively impacted by olefin and polyethylene outages related to cold weather and maintenance activity as well as ethylene purchases and inventory build in preparation for the La Porte site turnaround. Collectively, these activities represented the majority of the EBITDA decline. Compared to the prior period, the olefins margin decreased slightly in part due to higher natural gas costs and the resulting increase in NGL feedstock prices. Polyethylene price increased by 3 cents per pound while sales volumes were relatively unchanged from the fourth quarter 2013. Polypropylene results and joint venture equity income were relatively unchanged.

Three months ended March 31, 2014 versus three months ended March 31, 2013 - EBITDA declined $162 million versus the first quarter 2013. As noted above, maintenance activities coupled with preparation for the La Porte turnaround contributed to the lower results. An ethylene margin decline of 6 cents per pound impacted results by approximately $120 million. Polyethylene results increased primarily driven by a 9 cent per pound higher average price. Polypropylene results increased by approximately $30 million due to improved margins and 9 percent higher sales volumes. Joint venture equity income was relatively unchanged.

Olefins and 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 3 -O&P-EAI
     Financial Overview
    -------------------

                        Three Months Ended
                        ------------------

                             March 31,     December 31,      March 31,

    Millions of U.S.
     dollars                          2014              2013         2013
    ----------------                  ----              ----         ----

    Operating income                  $225               $17          $93
    ----------------                  ----               ---          ---

    EBITDA                             356               115          225
    ------                             ---               ---          ---

Three months ended March 31, 2014 versus three months ended December 31, 2013 - EBITDA increased $241 million versus the fourth quarter 2013. Excluding the benefits of $52 million from an environmental settlement in the first quarter and $25 million from an insurance settlement in the fourth quarter, EBITDA increased by $214 million. Olefin results increased by approximately $65 million as a result of higher margins and seasonal recovery in volumes. Advantaged feedstock cracking represented approximately 35 percent of ethylene production. Combined polyolefin results increased, driven by improved margins and seasonally stronger sales volumes. Polypropylene compounds and polybutene-1 results increased approximately $30 million from seasonally low fourth quarter 2013 results. Equity income from joint ventures increased by $13 million from the fourth quarter 2013.

Three months ended March 31, 2014 versus three months ended March 31, 2013 - EBITDA increased $131 million versus the first quarter 2013, including a $52 million benefit related to an environmental settlement. Olefin results improved slightly, primarily as a result of higher volumes. Combined commodity polyolefin results increased by approximately $40 million primarily as a result of higher margins. Polypropylene compounds and polybutene-1 results increased by $20 million from the prior year period, primarily as a result of 4 percent higher sales volumes. Equity income from joint ventures was relatively unchanged.

Intermediates and 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 (acetic acid, vinyl acetate monomer and methanol), ethylene oxide and its derivatives, and oxyfuels.


    Table 4 -I&D
     Financial Overview
    -------------------

                        Three Months Ended
                        ------------------

                             March 31,     December 31,      March 31,

    Millions of U.S.
     dollars                          2014              2013         2013
    ----------------                  ----              ----         ----

    Operating income                  $316              $321         $323
    ----------------                  ----              ----         ----

    EBITDA                             375               354          373
    ------                             ---               ---          ---

Three months ended March 31, 2014 versus three months ended December 31, 2013 - EBITDA increased $21 million versus the fourth quarter 2013. Results for PO and PO derivatives improved due to seasonal volume recovery. Intermediate chemicals results decreased by approximately $20 million, primarily driven by lower styrene and ethylene glycol margins and volumes which more than offset higher acetyls volumes and margins. Improved oxyfuels margins offset lower sales volumes. The fourth quarter results include $26 million of charges related to our exit from the Nihon Oxirane Co. (NOC) joint venture in Japan.

Three months ended March 31, 2014 versus three months ended March 31, 2013 - EBITDA increased $2 million compared to the first quarter 2013. Results for PO and PO derivatives improved slightly, primarily due to higher sales volumes. Intermediate chemicals results improved by approximately $45 million, primarily due to higher methanol volumes and margins from the Channelview methanol plant restart compared to the same period in 2013. Oxyfuels results declined approximately $60 million, mainly due to lower margins. Equity income from joint ventures was relatively unchanged.

Refining - The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials.


    Table 5 -Refining Financial
     Overview
    ---------------------------

                          Three Months Ended
                          ------------------

                               March 31,     December 31,      March 31,

    Millions of U.S.
     dollars                            2014              2013         2013
    ----------------                    ----              ----         ----

    Operating income
     (loss)                              $86               $92         ($17)
    ----------------                     ---               ---         ----

    EBITDA                               129               134           20
    ------                               ---               ---          ---

Three months ended March 31, 2014 versus three months ended December 31, 2013 - EBITDA decreased $5 million versus the fourth quarter 2013. The Houston refinery operated at 247,000 barrels per day, up 8,000 barrels per day from the prior quarter although refinery throughput was constrained due to coker maintenance. The Maya 2-1-1 benchmark crack spread increased $3.94 per barrel, averaging $28.26 per barrel in the first quarter 2014. The improved refinery crack spread was offset by lower gasoline and distillate yields due to the coker outage and approximately $10 million higher natural gas costs. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards increased by approximately $10 million versus the fourth quarter 2013.

Three months ended March 31, 2014 versus three months ended March 31, 2013 - EBITDA increased $109 million versus the first quarter 2013, when results were negatively impacted by a major turnaround. Compared to the prior year period, a throughput increase of 74,000 barrels per day positively impacted the current quarter by approximately $60 million. The Maya 2-1-1 benchmark crack spread increased from the first quarter 2013 by $5.56 per barrel. The improved crack spread was slightly offset by lower gasoline and distillate yields, and higher natural gas costs. The cost of RINs decreased by approximately $5 million versus the first quarter 2013.

Technology – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.


    Table 6 -Technology
     Financial Overview
    -------------------

                             Three Months Ended
                             ------------------

                                  March 31,     December 31,      March 31,

    Millions of U.S. dollars               2014              2013         2013
    ------------------------               ----              ----         ----

    Operating income                        $60               $33          $50
    ----------------                        ---               ---          ---

    EBITDA                                   76                55           66
    ------                                  ---               ---          ---

Three months ended March 31, 2014 versus three months ended December 31, 2013 - EBITDA increased by $21 million, primarily as a result of higher catalyst sales and lower research and development costs which more than offset lower licensing revenues.

Three months ended March 31, 2014 versus three months ended March 31, 2013 -

EBITDA increased by $10 million, primarily due to lower research and development costs.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $343 million in the first quarter 2014. The cash and short-term securities balance was $4.4 billion at March 31, 2014. We repurchased approximately 15 million ordinary shares during the first quarter 2014 and approximately 42 million shares as of March 31, 2014. The company paid dividends of $327 million during the quarter and issued $1.0 billion in bonds at a coupon rate of 4.875 percent.

CONFERENCE CALL

LyondellBasell will host a conference call Apr. 29 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Jim Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President – Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.

The toll-free dial-in number in the U.S. is 888-677-1826. A complete listing of toll-free numbers by country is available at www.lyondell.com/teleconference for international callers. The pass code for all numbers is 1231245.

A replay of the call will be available from 2 p.m. ET April 29 until June 2 at 11 p.m. ET. The replay dial-in numbers are 888-566-0499 (U.S.) and +1 203-369-3057 (international). The pass code for each is 3675.

The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world’s largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyondellbasell.com) manufactures products at 55 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 parts, home furnishings, construction materials and biofuels.

FORWARD-LOOKING STATEMENTS

The statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures’ products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2013, 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, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with <st1_country-region><st1_city>U.S.</st1_city> generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, 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.</st1_country-region>

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 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 8 at the end of this release.

OTHER FINANCIAL MEASURE PRESENTATION NOTES

This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.

Media Contact: Stanley Sehested +1 713-309-4125

Investor Contact: Douglas J. Pike +1 713-309-7141


    Table 7 - Reconciliation of Segment Information to Consolidated Financial Information
    -------------------------------------------------------------------------------------

                                                                                             2013    2014
                                                                                             ----    ----

      (Millions of
       U.S. dollars)                 Q1                      Q2             Q3                     Q4              Total               Q1
      --------------                 ---                    ---             ---                   ---              -----              ---

      Sales and other
       operating
       revenues:

        Olefins &
         Polyolefins -
         Americas                             $3,244                      $3,251                   $3,315             $3,279            $13,089          $3,357

        Olefins
         &
         Polyolefins
         -
         Europe,
         Asia,
         International                 3,800                               3,708                    3,594              3,583             14,685           3,778

         Intermediates
         &
         Derivatives                   2,282                               2,217                    2,452              2,521              9,472           2,429

        Refining                       2,468                               3,077                    3,177              2,976             11,698           2,756

        Technology                       134                                 132                      124                142                532             136

        Other                         (1,259)                             (1,282)                  (1,510)            (1,363)            (5,414)         (1,321)
                                      ------                              ------                   ------             ------             ------          ------

                                 Continuing
                                 Operations                   $10,669                     $11,103          $11,152            $11,138            $44,062         $11,135
                                ===

      Operating income
       (loss):

        Olefins &
         Polyolefins -
         Americas                               $821                        $872                     $759               $801             $3,253            $656

        Olefins
         &
         Polyolefins
         -
         Europe,
         Asia,
         International                    93                                 189                       78                 17                377             225

         Intermediates
         &
         Derivatives                     323                                 285                      371                321              1,300             316

        Refining                         (17)                                (16)                     (37)                92                 22              86

        Technology                        50                                  39                       35                 33                157              60

        Other                             (3)                                 (5)                       1                - -                 (7)             (3)
                                         ---                                 ---                      ---                ---                ---             ---

                                 Continuing
                                 Operations                    $1,267                      $1,364           $1,207             $1,264             $5,102          $1,340
                                ===

      Depreciation and
       amortization:

        Olefins &
         Polyolefins -
         Americas                                $75                         $69                      $73                $76               $293             $73

        Olefins
         &
         Polyolefins
         -
         Europe,
         Asia,
         International                    77                                  76                       78                 56                287              70

         Intermediates
         &
         Derivatives                      48                                  50                       50                 56                204              55

        Refining                          36                                  37                       45                 42                160              42

        Technology                        17                                  20                       16                 22                 75              16

        Other                                   - -                           2                      - -                - -                  2             - -
                                                ---                         ---                      ---                ---                ---             ---

                                 Continuing
                                 Operations                      $253                        $254             $262               $252             $1,021            $256
                                ===

      EBITDA: (a)

        Olefins &
         Polyolefins -
         Americas                               $898                        $951                     $841               $883             $3,573            $736

        Olefins
         &
         Polyolefins
         -
         Europe,
         Asia,
         International                   225                                 295                      204                115                839             356

         Intermediates
         &
         Derivatives                     373                                 338                      427                354              1,492             375

        Refining                          20                                  20                        8                134                182             129

        Technology                        66                                  59                       52                 55                232              76

        Other                              3                                 (11)                      (1)                 2                 (7)             (4)
                                         ---                                 ---                      ---                ---                ---             ---

                                 Continuing
                                 Operations                    $1,585                      $1,652           $1,531             $1,543             $6,311          $1,668
                                ===

      Capital,
       turnarounds and IT
       deferred spending:

        Olefins &
         Polyolefins -
         Americas                               $122                        $122                     $218               $183               $645            $231

        Olefins
         &
         Polyolefins
         -
         Europe,
         Asia,
         International                    63                                  46                       44                 76                229              33

         Intermediates
         &
         Derivatives                     106                                 141                      119                 77                443              45

        Refining                          93                                  67                       36                 13                209              32

        Technology                         7                                   6                        7                 10                 30               2

        Other                                   - -                           5                       (1)                 1                  5             - -
                                                ---                         ---                      ---                ---                ---             ---

                                Total                             391                         387              423                360              1,561             343

         Deferred
         charges
         included
         above                                  - -                         - -                      - -                - -                - -             - -
                                                ---                         ---                      ---                ---                ---             ---

                                 Continuing
                                 Operations                      $391                        $387             $423               $360             $1,561            $343
                                ===

    (a) See Table 8 for EBITDA calculation.

    Table 8 - EBITDA Calculation
    ----------------------------

                                                                  2013     2014
                                                                  ----     ----

      (Millions of
       U.S.
       dollars)            Q1               Q2     Q3       Q4           Total            Q1
      ------------         ---             ---    ---       ---         -----          ---

      Net income
       attributable
       to the
       Company
       shareholders                  $901             $929        $853          $1,174        $3,857          $945

      Net income
       (loss)
       attributable
       to non-
       controlling
       interests                       (1)              (2)         (2)              1            (4)           (1)

      (Income) loss
       from
       discontinued
       operations,
       net of tax                       6               (4)          3               2             7            (1)
                                      ---              ---         ---             ---           ---           ---

      Income from
       continuing
       operations                     906              923         854           1,177         3,860           943

                      Provision
                      for
                      income
                      taxes                   357           410             339            30         1,136         383

                      Depreciation
                      and
                      amortization            253           254             262           252         1,021         256

                      Interest
                      expense,
                      net                      69            65              76            84           294          86
                                              ---           ---             ---           ---           ---         ---

      EBITDA                       $1,585           $1,652      $1,531          $1,543        $6,311        $1,668
                                   ======           ======      ======          ======        ======        ======

    Table 9 - Selected Segment Operating Information
    ------------------------------------------------

                                                                                               2013                 2014
                                                                                               ----                 ----

                                                                       Q1                   Q2                   Q3            Q4        Total       Q1
                                                                       ---                  ---                  ---           ---       -----       ---

      Olefins and
       Polyolefins -
       Americas

                          Volumes
                          (million
                          pounds)
                         --------

                          Ethylene
                          produced                         2,337                2,412                2,111               2,156     9,016       1,979

                          Propylene
                          produced                           624                  529                  652                 646     2,451         611

                          Polyethylene
                          sold                             1,396                1,389                1,378               1,409     5,572       1,406

                          Polypropylene
                          sold                               565                  637                  669                 642     2,513         614

                          Benchmark
                          Market Prices
                         --------------

                          West Texas
                          Intermediate
                          crude oil
                          (USD per
                          barrel)                           94.4                 94.2                105.8                97.6      98.1        98.6

                          Light
                          Louisiana
                          Sweet
                          ("LLS")
                          crude oil
                          (USD per
                          barrel)                          113.9                104.6                109.9               101.1     107.3       104.4

                          Natural gas
                          (USD per
                          million
                          BTUs)                              3.5                  4.2                  3.7                 3.7       3.8         5.0

                          U.S.
                          weighted
                          average
                          cost of
                          ethylene
                          production
                          (cents/
                          pound)                            13.8                 15.7                 16.6                18.6      16.2        20.0

                          U.S.
                          ethylene
                          (cents/
                          pound)                            48.0                 46.3                 45.8                46.5      46.7        48.3

                          U.S.
                          polyethylene
                          [high
                          density]
                          (cents/
                          pound)                            66.7                 68.7                 71.7                75.0      70.5        76.3

                          U.S.
                          propylene
                          (cents/
                          pound)                            75.0                 63.3                 68.3                68.2      68.7        73.3

                          U.S.
                          polypropylene
                          [homopolymer]
                          (cents/
                          pound)                            88.0                 76.2                 82.3                82.2      82.2        88.3

      Olefins and
       Polyolefins -
       Europe, Asia,
       International

                          Volumes
                          (million
                          pounds)
                         --------

                          Ethylene
                          produced                           912                  991                  984                 930     3,817         989

                          Propylene
                          produced                           577                  610                  597                 568     2,352         582

                          Polyethylene
                          sold                             1,206                1,314                1,212               1,167     4,899       1,275

                          Polypropylene
                          sold                             1,657                1,821                1,612               1,531     6,621       1,509

                          Benchmark
                          Market Prices
                          (EUR0.01 per
                          pound)
                         --------------

                          Western
                          Europe
                          weighted
                          average
                          cost of
                          ethylene
                          production                        36.2                 29.3                 34.9                38.5      34.7        32.9

                          Western
                          Europe
                          ethylene                          58.6                 54.4                 55.0                55.1      55.8        54.7

                          Western
                          Europe
                          polyethylene
                          [high
                          density]                          61.2                 56.8                 57.9                57.1      58.2        56.1

                          Western
                          Europe
                          propylene                         50.6                 47.9                 49.6                49.9      49.5        51.3

                          Western
                          Europe
                          polypropylene
                          [homopolymer]                     59.1                 56.1                 58.1                58.2      57.9        59.9

      Intermediates and
       Derivatives

                          Volumes
                          (million
                          pounds)
                         --------

                          Propylene
                          oxide and
                          derivatives                        683                  665                  665                 729     2,742         772

                          Ethylene
                          oxide and
                          derivatives                        260                  277                  294                 346     1,177         262

                          Styrene
                          monomer                            703                  589                  756                 832     2,880         683

                         Acetyls                             431                  470                  506                 510     1,917         683

                          TBA
                          Intermediates                      434                  357                  425                 442     1,658         416

                          Volumes
                          (million
                          gallons)
                         --------

                         MTBE/ETBE                           185                  235                  241                 222       883         188

                          Benchmark
                          Market Margins
                           (cents per
                           gallon)
                         ---------------

                          MTBE -
                          Northwest
                          Europe                           104.9                 88.4                 86.8                37.8      79.1        63.4

      Refining

                          Volumes
                          (thousands of
                          barrels per
                          day)
                         --------------

                          Heavy crude
                          oil
                          processing
                          rate                               173                  265                  250                 239       232         247

                          Benchmark
                          Market Margins
                         ---------------

                          Light crude
                          oil -2-1-1                       11.53                14.63                12.63               12.67     12.89       13.18

                          Light crude
                          oil -Maya
                          differential                     11.17                 6.95                10.59               11.65     10.05       15.08

    Source:  LYB and third party consultants

    Note:  Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted
     prices.

    Table 10 - Unaudited Income Statement Information
    -------------------------------------------------

                                                                       2013    2014
                                                                       ----    ----

      (Millions of
       U.S.
       dollars)                       Q1                     Q2              Q3               Q4              Total                Q1
      ------------                    ---                   ---             ---              ---               -----              ---

      Sales and
       other
       operating
       revenues                                     $10,669         $11,103          $11,152           $11,138             $44,062           $11,135

      Cost of sales                  9,153                   9,496            9,690             9,601              37,940             9,577

      Selling, general
       and
       administrative
       expenses                        213                     208              220               229                 870               186

      Research and
       development
       expenses                         36                      35               35                44                 150                32
                                       ---                     ---              ---               ---                 ---               ---

        Operating income             1,267                   1,364            1,207             1,264               5,102             1,340

      Income from
       equity
       investments                      59                      43               61                40                 203                61

      Interest
       expense, net                    (69)                    (65)             (76)              (84)               (294)              (86)

      Other income
       (expense), net                    6                      (8)               1               (13)                (14)               11

      Reorganization
       items                           - -                      (1)             - -               - -                  (1)              - -
                                       ---                     ---              ---               ---                 ---               ---

        Income from
         continuing
         operations
         before income
         taxes                       1,263                   1,333            1,193             1,207               4,996             1,326

      Provision for
       income taxes                    357                     410              339                30               1,136               383
                                       ---                     ---              ---               ---               -----               ---

        Income from
         continuing
         operations                    906                     923              854             1,177               3,860               943

      Income (loss)
       from
       discontinued
       operations,

        net of tax                      (6)                      4               (3)               (2)                 (7)                1
                                       ---                     ---              ---               ---                 ---               ---

          Net income                   900                     927              851             1,175               3,853               944

      Net loss
       attributable to
       non-
       controlling

        interests                        1                       2                2                (1)                  4                 1
                                       ---                     ---              ---               ---                 ---               ---

          Net income
           attributable to
           the Company

            shareholders                               $901            $929             $853            $1,174              $3,857              $945
                                                       ====            ====             ====            ======              ======              ====

    Table 11 - Charges (Benefits) Included in Income from Continuing Operations
    ---------------------------------------------------------------------------

                                                                       2013       2014
                                                                       ----       ----

    Millions of U.S.
     dollars (except share
     data)                                    Q1          Q2          Q3      Q4        Total          Q1
    ----------------------                    ---         ---        ---      ---      -----       ---

    Pretax charges
     (benefits):

                           Impairments         $    - -         $    - -       $   - -        $10         $10  $   - -

                            Insurance
                            settlement              - -              - -           - -        (25)        (25)     - -

                            Settlement
                            of
                            environmental
                            indemnification
                            agreement               - -              - -           - -        - -         - -      (52)

                            Loss on sale
                            of
                            investment              - -              - -           - -         16          16      - -

    Total pretax charges
     (benefits)                                     - -              - -           - -          1           1      (52)

    Provision for income tax
     related to these items                         - -              - -           - -          4           4      - -
                                                    ---              ---           ---        ---         ---      ---

    After-tax effect of
     net charges
     (benefits)                                $    - -         $    - -       $   - -         $5          $5     $(52)
                                             ===    ===       ===    ===     ===   ===        ===         ===     ====

    Effect on diluted
     earnings per share                        $    - -         $    - -       $   - -     $  - -      $  - -    $0.09

    Table 12 - Unaudited Cash Flow Information
    ------------------------------------------

                                                                            2013    2014
                                                                            ----    ----

      (Millions
       of U.S.
       dollars)    Q1            Q2             Q3         Q4       Total       Q1
      ---------    ---           ---            ---        ---      -----       ---

      Net cash
       provided
       by
       operating
       activities         $799          $1,264      $1,131     $1,641     $4,835           $801

      Net cash
       used in
       investing
       activities         (408)           (389)       (438)      (367)    (1,602)        (2,011)

      Net cash
       provided by
       (used in)
       financing
       activities         (234)           (526)        437     (1,266)    (1,589)          (550)

    Table 13 - Unaudited Balance Sheet Information
    ----------------------------------------------

                                                 March          June          September         December          March
                                                  31,            30,             30,               31,              31,

      (Millions of
       U.S. dollars)            2013              2013          2013              2013              2014
      --------------            ----              ----          ----              ----              ----

      Cash and cash
       equivalents                      $2,879                $3,233            $4,414            $4,450            $2,702

      Restricted cash              6                        2               4                10                 3

      Short-term
       investments                        - -                  - -               - -               - -             1,402

      Accounts
       receivable, net         3,878                    4,023           4,041             4,030             4,141

      Inventories              5,270                    5,197           5,382             5,279             5,589

      Prepaid expenses
       and other current
       assets                    622                      577             784               830             1,156
                                 ---                      ---             ---               ---             -----

          Total current
           assets                       12,655                13,032            14,625            14,599            14,993

      Property, plant
       and equipment,
       net                     7,779                    7,979           8,223             8,457             8,556

      Investments and
       long-term
       receivables:

          Investment in PO
           joint ventures                  401                   409               423               421               424

          Equity investments             1,607                 1,622             1,615             1,629             1,693

          Other investments
           and long-term
           receivables                     421                   231               164                64                62

      Goodwill                   582                      588             598               605               605

      Intangible assets,
       net                       999                      966             934               904               870

      Other assets               233                      221             229               619               624
                                 ---                      ---             ---               ---               ---

          Total assets                 $24,677                $25,048           $26,811           $27,298           $27,827
                                       =======                 =======           =======           =======           =======

      Current
       maturities of
       long-term
       debt                                 $1                    $1                $1                $1                $3

      Short-term debt            115                      114             114                58                58

      Accounts payable         3,217                    3,324           3,241             3,572             3,642

      Accrued
       liabilities             1,217                    1,047           1,528             1,299             1,477

      Deferred income
       taxes                     557                      550             494               580               540
                                 ---                      ---             ---               ---               ---

          Total current
           liabilities                   5,107                 5,036             5,378             5,510             5,720

      Long-term debt           4,307                    4,306           5,774             5,776             6,766

      Other liabilities        2,306                    2,325           2,278             1,839             1,838

      Deferred income
       taxes                   1,277                    1,312           1,472             1,659             1,677

      Stockholders'
       equity                 11,641                   12,032          11,874            12,478            11,791

      Non-controlling
       interests                  39                       37              35                36                35
                                 ---                      ---             ---               ---               ---

          Total liabilities
           and stockholders'
           equity                      $24,677                $25,048           $26,811           $27,298           $27,827
                                       =======                 =======           =======           =======           =======

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SOURCE LyondellBasell Industries


Source: PR Newswire



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