LyondellBasell Industries 1 www.lyondellbasell.com NEWS RELEASE HOUSTON and LONDON, October 29, 2013 LyondellBasell Reports Third-Quarter 2013 Results Third-Quarter 2013 Highlights • Diluted earnings per share of $1.51; $854 million income from continuing operations • EBITDA of $1,531 million • Solid earnings and cash flow continued, supported by reliable operations and favorable crude oil and natural gas environment - Completed scheduled maintenance turnaround at Clinton ethylene and polyethylene facility • 13.5 million shares repurchased during the quarter LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2013 of $1.51 diluted earnings per share or $854 million. Third quarter 2013 EBITDA was $1,531 million. Comparisons with the prior quarter and third quarter 2012 are shown below: Table 1 - Earnings Summary Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, Millions of U.S. dollars (except share data) 2013 2013 2012 2013 2012 Sales and other operating revenues $11,152 $11,103 $11,273 $32,924 $34,255 Net income (a) 851 927 844 2,678 2,211 Income from continuing operations 854 923 851 2,683 2,213 Diluted earnings per share (U.S. dollars): Net income (b) 1.50 1.61 1.46 4.66 3.83 Income from continuing operations 1.51 1.60 1.47 4.67 3.83 Diluted share count (millions) 567 578 577 575 577 EBITDA (c)(d) 1,531 1,652 1,589 4,768 4,543 (a) Includes net loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 11. (b) Includes diluted 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 9 for reconciliations of EBITDA to income from continuing operations. (d) Includes a $71 million lower of cost or market inventory valuation adjustment in the third quarter 2012 which is a reversal of a $71 million charge in the second quarter of 2012. Results also reflect the following charges and benefits:
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Third-Quarter 2013 Highlights • Diluted earnings per share of $1.51; $854 million income from continuing operations • EBITDA of $1,531 million • Solid earnings and cash flow continued, supported by reliable operations and favorable
crude oil and natural gas environment - Completed scheduled maintenance turnaround at Clinton ethylene and polyethylene
facility • 13.5 million shares repurchased during the quarter
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third
quarter 2013 of $1.51 diluted earnings per share or $854 million. Third quarter 2013 EBITDA was $1,531
million. Comparisons with the prior quarter and third quarter 2012 are shown below:
Table 1 - Earnings Summary Three Months Ended Nine Months Ended
September 30, June 30, September 30, September 30, Millions of U.S. dollars (except share data) 2013 2013 2012 2013 2012
Sales and other operating revenues $11,152 $11,103 $11,273 $32,924 $34,255
Net income(a) 851 927 844 2,678 2,211
Income from continuing operations 854 923 851 2,683 2,213
Diluted earnings per share (U.S. dollars): Net income(b) 1.50 1.61 1.46 4.66 3.83
Income from continuing operations 1.51 1.60 1.47 4.67 3.83
EBITDA(c)(d) 1,531 1,652 1,589 4,768 4,543 (a) Includes net loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 11. (b) Includes diluted 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 9 for reconciliations of EBITDA to income from continuing operations. (d) Includes a $71 million lower of cost or market inventory valuation adjustment in the third quarter 2012 which is a reversal of a $71 million charge in the second quarter of 2012. Results also reflect the following charges and benefits:
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 3 - O&P–Americas Financial Overview Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, Millions of U.S. dollars 2013 2013 2012 2013 2012 Operating income $759 $872 $738 $2,452 $1,957 EBITDA 841 951 814 2,690 2,190 Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA
decreased $110 million versus the second quarter 2013. Compared to the prior period, olefins results
decreased primarily due to a scheduled turnaround at Clinton, Iowa, a 1 cent per pound decline in
ethylene contract price and higher raw material costs driven by higher propane, butane and naphtha
prices in the third quarter. The Clinton turnaround impacted the quarter results by approximately $65
million. Combined polyolefin results increased from the second quarter 2013. Results benefitted from an
approximately 2 cent per pound higher average polyethylene price and a 5 percent increase in
polypropylene sales volumes. Joint venture equity income was relatively unchanged.
Three months ended September 30, 2013 versus three months ended September 30, 2012 –
EBITDA increased $27 million in the third quarter 2013 versus the third quarter 2012. Excluding the
favorable impact of a $71 million lower of cost or market adjustment in the third quarter 2012, EBITDA
increased $98 million, primarily due to higher polyethylene results. Olefins results decreased
approximately $45 million compared to the prior year period partially due to the scheduled Clinton
turnaround. The third quarter 2013 results benefitted from increased ethane cracking at a lower cost.
Polyethylene results improved as a 9 cent per pound higher price more than offset a 4 percent volume
decline. Polypropylene results were relatively unchanged. Joint venture equity income was relatively
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 4 - O&P–EAI Financial Overview Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, Millions of U.S. dollars 2013 2013 2012 2013 2012 Operating income $78 $189 $15 $360 $221 EBITDA 204 295 102 724 522 Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA
decreased $91 million versus the second quarter 2013. Olefin results decreased by approximately $75
million primarily due to a decline in olefin margins driven by higher feedstock costs and lower co-product
values. Improved polyethylene margins offset a 10 percent decline in overall polyolefin sales volumes.
Polypropylene compounds and polybutene-1 results decreased by approximately $15 million primarily
due to lower margins related to raw material price volatility and a 5 percent decline in sales volumes.
Equity income from joint ventures increased by $17 million from the second quarter 2013.
Three months ended September 30, 2013 versus three months ended September 30, 2012 –
EBITDA increased $102 million versus the third quarter 2012. Olefin results improved by approximately
$70 million, a result of both higher margins and volumes. The higher olefin margins were driven by higher
ethylene prices in the third quarter of 2013 versus the same period in 2012. Volumes were lower in the
2012 period as a result of an olefin turnaround at Wesseling, Germany. Combined polyolefin results
increased by approximately $20 million primarily as a result of improved margins. Polypropylene
compounds and polybutene-1 results decreased by approximately $10 million from the prior year period
as a result of lower margins related to raw material pricing lag. Equity income from joint ventures
increased by $25 million from the third quarter 2012.
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,
ethylene oxide and its derivatives, and oxyfuels.
Table 5 - I&D Financial Overview Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, Millions of U.S. dollars 2013 2013 2012 2013 2012 Operating income $371 $285 $424 $979 $1,184 EBITDA 427 338 475 1,138 1,324 Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA
increased $89 million versus the second quarter 2013. Results for PO and PO derivatives increased by
approximately $20 million following the completion of second quarter turnarounds. Competitive pressure
continued to impact butanediol and solvents margins due to oversupply in Asia. Intermediate chemicals
results increased by approximately $65 million driven primarily by higher styrene margins and higher
sales volumes following second quarter turnarounds. Oxyfuels results improved by approximately $15
million due to higher margins and volumes. Equity income from joint ventures was relatively unchanged.
Three months ended September 30, 2013 versus three months ended September 30, 2012 –
EBITDA decreased $48 million compared to the third quarter 2012. Results for PO and PO derivatives
declined primarily due to weaker butanediol and solvents market conditions. Intermediate chemicals
results increased as a result of higher styrene, acetyl and ethylene glycol margins. Oxyfuels results
declined by approximately $60 million due to lower margins and volumes, which were stronger than
typical in the third quarter of 2012. Equity income from joint ventures increased by $3 million from the
Refining – The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and
petrochemical raw materials.
Table 6 - Refining Financial Overview Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, Millions of U.S. dollars 2013 2013 2012 2013 2012 Operating income (loss) ($37) ($16) $114 ($70) $248 EBITDA 8 20 150 48 358 Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA,
including benefits from property tax assessments and legal settlements of $15 million, declined $12
million versus the second quarter 2013. The Houston refinery operated at 250,000 barrels per day, down
15,000 barrels per day from the prior quarter due to maintenance work on an operating unit. The Maya 2-
1-1 industry benchmark crack spread increased by $1.64 per barrel, averaging $23.22 per barrel. The
refinery spread did not increase as the timing of crude purchases coupled with benchmark crude oil price
volatility resulted in higher costs during the quarter. The cost of Renewable Identification Numbers (RINs)
to meet U.S. renewable fuel standards decreased by $12 million versus the second quarter 2013.
Three months ended September 30, 2013 versus three months ended September 30, 2012 –
EBITDA decreased $142 million versus the third quarter 2012. Excluding the benefit of legal restitutions in
both periods and the resolution of property tax assessments in third quarter 2013, EBITDA decreased by
$133 million. The 250,000 barrels per day operating rate in the current quarter represents an increase of
10,000 barrels per day from the prior year period. Compared to the third quarter 2012, the decline in
Maya 2-1-1 benchmark spread of $5.54 per barrel and higher natural gas costs negatively impacted
results by approximately $110 million. The cost of RINs increased by $28 million compared to the same
Technology – 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 Nine Months Ended September 30, June 30, September 30, September 30, Millions of U.S. dollars 2013 2013 2012 2013 2012 Operating income $35 $39 $31 $124 $99 EBITDA 52 59 49 177 155 Three months ended September 30, 2013 versus three months ended June 30, 2013 – EBITDA
decreased by $7 million primarily as a result of lower licensing revenues.
Three months ended September 30, 2013 versus three months ended September 30, 2012 –
EBITDA increased by $3 million as higher catalyst sales and lower research and development costs more
than offset lower licensing revenues versus the third quarter 2012.
Capital spending and cash balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information
technology-related expenditures, were $423 million in the third quarter 2013. The cash balance was $4.4
billion at Sept. 30, 2013. We repurchased 13.5 million ordinary shares during the third quarter 2013.
Dividends declared in the quarter totaled $280 million. In July, the company issued long-term bonds in an
aggregate principal amount of $1.5 billion with an average interest rate of 4.6 percent.
CONFERENCE CALL
LyondellBasell will host a conference call Oct. 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 877-950-3594. 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 Oct. 29 until Nov.29 at 11 p.m. ET. The replay dial-in
numbers are 888-667-5779 (U.S.) and +1 402-220-6423 (international). The pass code for each is 5421.
The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.