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Share Name | Share Symbol | Market | Type |
---|---|---|---|
LyondellBasell Industries NV | NYSE:LYB | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.71 | 1.71% | 101.45 | 102.6099 | 99.57 | 100.11 | 2,684,573 | 01:00:00 |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2014
LYONDELLBASELL INDUSTRIES N.V.
(Exact Name of Registrant as Specified in Charter)
The Netherlands | 001-34726 | 98-0646235 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1221 McKinney St. Suite 300 Houston, Texas USA 77010 |
4th Floor, One Vine Street London W1J0AH The United Kingdom |
Stationsplein 45 3013 AK Rotterdam The Netherlands |
(Addresses of principal executive offices)
(713) 309-7200 | +44 (0)207 220 2600 | +31 (0)10 275 5500 |
(Registrants telephone numbers, including area codes)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
LyondellBasell Industries N.V. (the Company) has issued a press release this morning, July 25, 2014, announcing its earnings for the quarter ended June 30, 2014, a copy of which is furnished herewith as Exhibit 99.1.
Item 7.01. Regulation FD Disclosure.
The Company is holding a conference call to discuss its second quarter 2014 results on July 25, 2014. Information about the call can be found in the press release furnished herewith as Exhibit 99.1.
A copy of the slide materials to be discussed on the conference call, which will be available at the time of the teleconference and afterwards, are furnished herewith as Exhibit 99.2. The slides can be accessed on the Companys website at www.lyondellbasell.com.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated July 25, 2014
99.2 Presentation LyondellBasell Industries N.V. Second Quarter 2014 Earnings
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
LYONDELLBASELL INDUSTRIES N.V. | ||||||
Date: July 25, 2014 | By: | /s/ Craig B. Glidden | ||||
Craig B. Glidden | ||||||
Executive Vice President |
Exhibit Index
Exhibit |
Description | |
99.1 | Press Release dated July 25, 2014 | |
99.2 | Presentation LyondellBasell Industries N.V. Second Quarter 2014 Earnings |
Exhibit 99.1
NEWS RELEASE
HOUSTON and LONDON, July 25, 2014 |
LyondellBasell Reports Second-Quarter 2014 Results
Second-Quarter 2014 Highlights
| Record quarterly EBITDA of $1.94 billion |
| Record diluted earnings per share of $2.22; income from continuing operations of $1.17 billion |
| Solid results in all segments, with O&P Americas segment approaching EBITDA of $1 billion |
| Completed initial 10% share repurchase and initiated purchases under second 10% authorization; repurchased approximately 19 million shares during the quarter |
LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the second quarter 2014 of $2.22 diluted earnings per share, or $1.17 billion. Second quarter 2014 EBITDA was $1.94 billion. The increase from the first quarter 2014 was primarily due to Olefins and Polyolefins Americas segment results.
Comparisons with the prior quarter and second quarter 2013 are shown below:
Table 1 - Earnings Summary
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
Millions of U.S. dollars (except share data) |
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Sales and other operating revenues |
$ | 12,117 | $ | 11,135 | $ | 11,103 | $ | 23,252 | $ | 21,772 | ||||||||||
Net income(a) |
1,176 | 944 | 927 | 2,120 | 1,827 | |||||||||||||||
Income from continuing operations(b) |
1,173 | 943 | 923 | 2,116 | 1,829 | |||||||||||||||
Diluted earnings per share (U.S. dollars): |
||||||||||||||||||||
Net income(c) |
2.23 | 1.72 | 1.61 | 3.94 | 3.16 | |||||||||||||||
Income from continuing operations(b) |
2.22 | 1.72 | 1.60 | 3.93 | 3.16 | |||||||||||||||
Diluted share count (millions) |
527 | 548 | 578 | 537 | 578 | |||||||||||||||
EBITDA(d) |
1,941 | 1,668 | 1,652 | 3,609 | 3,237 |
(a) | Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10. |
(b) | Please see Table 11 for charges and benefits to income from continuing operations. |
(c) | Includes diluted earnings per share attributable to discontinued operations. |
(d) | See the end of this release for an explanation of the Companys use of EBITDA and Table 8 for reconciliations of EBITDA to income from continuing operations. |
LyondellBasell Industries | 1 | |
www.lyondellbasell.com |
We had record earnings this quarter of $2.22 per share, while our EBITDA approached $2 billion. Importantly, every segment contributed to this achievement. Of particular note was the strength in our Olefins and Polyolefins- Americas segment which generated nearly $1 billion of EBITDA even while we were performing significant scheduled maintenance at our La Porte ethylene site. In addition to the strong quarterly earnings, we repurchased approximately 19 million of our shares during the second quarter, completing the initial 10 percent share repurchase authorization. We also initiated repurchases under the second 10 percent authorization, said Jim Gallogly, LyondellBasell Chief Executive Officer.
As encouraging as these results are, we did not fully deliver on our reliability expectations, and the quarterly earnings could have been better. Specifically, we were late in completing our La Porte ethylene turnaround in part due to a mechanical issue with a compressor. Both supplier upsets and mechanical issues impacted our Intermediates and Derivatives business as well. Despite these temporary setbacks, our commitment to Operational Excellence continues to be the foundation of our success, Gallogly said.
Industry fundamentals remain strong, and we continue to execute on our investment program. During the third quarter we expect to begin production from the 800 million pound per year La Porte ethylene expansion. This is the first of three ethylene expansions and continues to put us well ahead of new greenfield plants pursued by others in the industry, Gallogly added.
OUTLOOK
During the first weeks of the third quarter, industry conditions have been similar to the second quarter environment. U.S. oil, natural gas, and natural gas liquids production remain strong. Together these support margins in our Olefins and Polyolefins Americas, Intermediates and Derivatives, and Refining segments. However, our results in the next quarter will be negatively impacted by the delayed start-up of our La Porte ethylene plant, Gallogly noted.
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.
LyondellBasell Industries | 2 | |
www.lyondellbasell.com |
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&PAmericas Financial Overview
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
Millions of U.S. dollars |
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating income |
$ | 898 | $ | 656 | $ | 872 | $ | 1,554 | $ | 1,693 | ||||||||||
EBITDA |
978 | 736 | 951 | 1,714 | 1,849 |
Three months ended June 30, 2014 versus three months ended March 31, 2014 The segment achieved record EBITDA results in the second quarter of 2014. EBITDA increased $242 million versus the first quarter 2014. Compared to the prior period, olefins results increased approximately $220 million. The first quarter was negatively impacted by ethylene purchases and inventory build in preparation for the second quarter La Porte plant turnaround. The second quarter was also negatively impacted, but to a lesser extent, by the delayed restart of the La Porte olefin plant and the subsequent purchase of ethylene. This impacted results by approximately $50 million. Olefins benefited in the second quarter from lower NGL costs and improved co-product values. Combined polyolefin results increased by approximately $20 million from the first quarter 2014 driven by higher polyethylene margins. The ethylene to polyethylene price spread increased 2 cents per pound. Joint venture equity income increased by $2 million.
Three months ended June 30, 2014 versus three months ended June 30, 2013 EBITDA increased $27 million versus the second quarter 2013. Olefins results declined approximately $130 million compared to the prior year period. Olefins sales and production volumes declined. However, margins benefited from lower NGL costs and higher co-product values. The price of ethylene decreased by approximately 2 cents per pound compared to the prior year period. Polyethylene results increased by approximately $150 million as the ethylene to polyethylene price spread improved by 10 cents per pound and sales volumes increased approximately 4 percent versus the prior year period. Polypropylene results increased by approximately $15 million due to slightly higher margins. Joint venture equity income decreased by $2 million.
LyondellBasell Industries | 3 | |
www.lyondellbasell.com |
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&PEAI Financial Overview
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
Millions of U.S. dollars |
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating income |
$ | 190 | $ | 225 | $ | 189 | $ | 415 | $ | 282 | ||||||||||
EBITDA |
319 | 356 | 295 | 675 | 520 |
Three months ended June 30, 2014 versus three months ended March 31, 2014 EBITDA decreased $37 million versus the first quarter 2014. Excluding the benefits of a $52 million environmental settlement in the first quarter, EBITDA increased by $15 million. Olefins results increased modestly. Naphtha cost increases and a decline in the price of ethylene of approximately 2 cents per pound were more than offset by increased co-product prices and from cracking more advantaged feedstocks. Approximately 55 percent of our ethylene production was sourced from advantaged raw materials. Combined polyolefin results increased from higher volumes. Combined polypropylene compounds and polybutene-1 results were unchanged. Equity income from joint ventures increased by $9 million from the first quarter 2014.
Three months ended June 30, 2014 versus three months ended June 30, 2013 EBITDA increased $24 million versus the second quarter 2013. Olefins results declined by approximately $20 million as a result of margins that were lower by approximately 3 cents per pound. This was partially mitigated by higher operating rates and from higher butadiene volumes following a 2013 expansion project. Combined polyolefin results increased primarily as a result of higher polyethylene and polypropylene margins of approximately 1 cent per pound. Polypropylene compounds and polybutene-1 results decreased by approximately $10 million from the prior year period as a result of lower polypropylene compound margins. Equity income from joint ventures increased $32 million from the second quarter 2013.
LyondellBasell Industries | 4 | |
www.lyondellbasell.com |
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 | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
Millions of U.S. dollars |
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating income |
$ | 375 | $ | 316 | $ | 285 | $ | 691 | $ | 608 | ||||||||||
EBITDA |
430 | 375 | 338 | 805 | 711 |
Three months ended June 30, 2014 versus three months ended March 31, 2014 EBITDA increased $55 million versus the first quarter 2014. Results for PO and PO derivatives decreased by approximately $20 million. Seasonally lower sales of propylene glycol sold into aircraft deicing were offset by higher sales of propylene oxide. Solvent margins declined. Intermediate chemicals results increased by approximately $10 million as styrene and ethylene glycol volumes improved. Additionally, acetic acid, vinyl acetate, and styrene margins improved but lower margins from methanol and ethylene glycol pricing partially offset the benefit. Oxyfuels results improved by approximately $70 million due to seasonal increases in both volume and margin. Equity income from joint ventures decreased by $4 million.
Three months ended June 30, 2014 versus three months ended June 30, 2013 EBITDA increased $92 million compared to the second quarter 2013. Results for PO and PO derivatives increased by approximately $25 million primarily due to higher volumes. Intermediate chemicals results were higher by approximately $60 million due to higher methanol and styrene volumes, and higher methanol and vinyl acetate margins. Oxyfuels results increased by approximately $10 million. Equity income from joint ventures decreased by $5 million from the second quarter in 2013.
LyondellBasell Industries | 5 | |
www.lyondellbasell.com |
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 | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
Millions of U.S. dollars |
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating income (loss) |
$ | 95 | $ | 86 | ($ | 16 | ) | $ | 181 | ($ | 33 | ) | ||||||||
EBITDA |
137 | 129 | 20 | 266 | 40 |
Three months ended June 30, 2014 versus three months ended March 31, 2014 EBITDA increased $8 million versus the first quarter 2014. The refinery processed 257,000 barrels per day, up 10,000 barrels per day from the prior quarter. Compared to the prior quarter, the Maya 2-1-1 benchmark crack spread declined by $1.25 per barrel, averaging $27.01 per barrel. The corresponding Houston refinery spread was relatively unchanged. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards was relatively unchanged versus the first quarter 2014.
Three months ended June 30, 2014 versus three months ended June 30, 2013 EBITDA increased $117 million versus the second quarter 2013. The refinery processed 257,000 barrels per day, down 8,000 barrels per day from the prior year period. Compared to the second quarter 2013, the Maya 2-1-1 benchmark spread increased $5.43 per barrel, and we benefited from improved yields and higher margins on secondary products. The cost of RINs decreased by approximately $20 million compared to the same quarter last year.
LyondellBasell Industries | 6 | |
www.lyondellbasell.com |
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 | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
Millions of U.S. dollars |
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Operating income |
$ | 56 | $ | 60 | $ | 39 | $ | 116 | $ | 89 | ||||||||||
EBITDA |
71 | 76 | 59 | 147 | 125 |
Three months ended June 30, 2014 versus three months ended March 31, 2014 EBITDA decreased by $5 million.
Three months ended June 30, 2014 versus three months ended June 30, 2013 EBITDA increased by $12 million from higher catalyst and licensing results.
Capital spending and cash balances
Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $415 million in the second quarter 2014. Our cash and short-term securities balance was $3.5 billion at June 30, 2014. We repurchased approximately 19 million of our outstanding ordinary shares and paid $370 million in dividends during the second quarter of 2014. There were 515 million common shares outstanding as of June 30th.
CONFERENCE CALL
LyondellBasell will host a conference call July 25 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. For international numbers, go to www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 1231245.
A replay of the call will be available from 2 p.m. ET July 25 until Aug. 25 at 11 p.m. ET. The replay dial-in numbers are 800-839-1171 (U.S.) and +1 203-369-3030 (international). The pass code for each is 3675.
The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.
LyondellBasell Industries | 7 | |
www.lyondellbasell.com |
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one of the worlds 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 Commissions 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 U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the
LyondellBasell Industries | 8 | |
www.lyondellbasell.com |
underlying business trends and performance of the companys 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.
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.
###
Source: LyondellBasell Industries
Media Contact: | Stanley Sehested +1 713-309-4125 | |
Investor Contact: | Douglas J. Pike +1 713-309-7141 |
LyondellBasell Industries | 9 | |
www.lyondellbasell.com |
Table 7 - Reconciliation of Segment Information to Consolidated Financial Information
2013 | 2014 | |||||||||||||||||||||||||||||||
(Millions of U.S. dollars) |
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | YTD | ||||||||||||||||||||||||
Sales and other operating revenues: |
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Olefins & Polyolefins - Americas |
$ | 3,244 | $ | 3,251 | $ | 3,315 | $ | 3,279 | $ | 13,089 | $ | 3,357 | $ | 3,462 | $ | 6,819 | ||||||||||||||||
Olefins & Polyolefins - Europe, Asia, International |
3,800 | 3,708 | 3,594 | 3,583 | 14,685 | 3,778 | 4,069 | 7,847 | ||||||||||||||||||||||||
Intermediates & Derivatives |
2,282 | 2,217 | 2,452 | 2,521 | 9,472 | 2,429 | 2,706 | 5,135 | ||||||||||||||||||||||||
Refining |
2,468 | 3,077 | 3,177 | 2,976 | 11,698 | 2,756 | 3,250 | 6,006 | ||||||||||||||||||||||||
Technology |
134 | 132 | 124 | 142 | 532 | 136 | 144 | 280 | ||||||||||||||||||||||||
Other |
(1,259 | ) | (1,282 | ) | (1,510 | ) | (1,363 | ) | (5,414 | ) | (1,321 | ) | (1,514 | ) | (2,835 | ) | ||||||||||||||||
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Continuing Operations |
$ | 10,669 | $ | 11,103 | $ | 11,152 | $ | 11,138 | $ | 44,062 | $ | 11,135 | $ | 12,117 | $ | 23,252 | ||||||||||||||||
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Operating income (loss): |
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Olefins & Polyolefins - Americas |
$ | 821 | $ | 872 | $ | 759 | $ | 801 | $ | 3,253 | $ | 656 | $ | 898 | $ | 1,554 | ||||||||||||||||
Olefins & Polyolefins - Europe, Asia, International |
93 | 189 | 78 | 17 | 377 | 225 | 190 | 415 | ||||||||||||||||||||||||
Intermediates & Derivatives |
323 | 285 | 371 | 321 | 1,300 | 316 | 375 | 691 | ||||||||||||||||||||||||
Refining |
(17 | ) | (16 | ) | (37 | ) | 92 | 22 | 86 | 95 | 181 | |||||||||||||||||||||
Technology |
50 | 39 | 35 | 33 | 157 | 60 | 56 | 116 | ||||||||||||||||||||||||
Other |
(3 | ) | (5 | ) | 1 | | (7 | ) | (3 | ) | (1 | ) | (4 | ) | ||||||||||||||||||
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Continuing Operations |
$ | 1,267 | $ | 1,364 | $ | 1,207 | $ | 1,264 | $ | 5,102 | $ | 1,340 | $ | 1,613 | $ | 2,953 | ||||||||||||||||
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Depreciation and amortization: |
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Olefins & Polyolefins - Americas |
$ | 75 | $ | 69 | $ | 73 | $ | 76 | $ | 293 | $ | 73 | $ | 74 | $ | 147 | ||||||||||||||||
Olefins & Polyolefins - Europe, Asia, International |
77 | 76 | 78 | 56 | 287 | 70 | 67 | 137 | ||||||||||||||||||||||||
Intermediates & Derivatives |
48 | 50 | 50 | 56 | 204 | 55 | 56 | 111 | ||||||||||||||||||||||||
Refining |
36 | 37 | 45 | 42 | 160 | 42 | 42 | 84 | ||||||||||||||||||||||||
Technology |
17 | 20 | 16 | 22 | 75 | 16 | 15 | 31 | ||||||||||||||||||||||||
Other |
| 2 | | | 2 | | | | ||||||||||||||||||||||||
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Continuing Operations |
$ | 253 | $ | 254 | $ | 262 | $ | 252 | $ | 1,021 | $ | 256 | $ | 254 | $ | 510 | ||||||||||||||||
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EBITDA: (a) |
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Olefins & Polyolefins - Americas |
$ | 898 | $ | 951 | $ | 841 | $ | 883 | $ | 3,573 | $ | 736 | $ | 978 | $ | 1,714 | ||||||||||||||||
Olefins & Polyolefins - Europe, Asia, International |
225 | 295 | 204 | 115 | 839 | 356 | 319 | 675 | ||||||||||||||||||||||||
Intermediates & Derivatives |
373 | 338 | 427 | 354 | 1,492 | 375 | 430 | 805 | ||||||||||||||||||||||||
Refining |
20 | 20 | 8 | 134 | 182 | 129 | 137 | 266 | ||||||||||||||||||||||||
Technology |
66 | 59 | 52 | 55 | 232 | 76 | 71 | 147 | ||||||||||||||||||||||||
Other |
3 | (11 | ) | (1 | ) | 2 | (7 | ) | (4 | ) | 6 | 2 | ||||||||||||||||||||
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Continuing Operations |
$ | 1,585 | $ | 1,652 | $ | 1,531 | $ | 1,543 | $ | 6,311 | $ | 1,668 | $ | 1,941 | $ | 3,609 | ||||||||||||||||
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Capital, turnarounds and IT deferred spending: |
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Olefins & Polyolefins - Americas |
$ | 122 | $ | 122 | $ | 218 | $ | 183 | $ | 645 | $ | 231 | $ | 306 | $ | 537 | ||||||||||||||||
Olefins & Polyolefins - Europe, Asia, International |
63 | 46 | 44 | 76 | 229 | 33 | 27 | 60 | ||||||||||||||||||||||||
Intermediates & Derivatives |
106 | 141 | 119 | 77 | 443 | 45 | 52 | 97 | ||||||||||||||||||||||||
Refining |
93 | 67 | 36 | 13 | 209 | 32 | 20 | 52 | ||||||||||||||||||||||||
Technology |
7 | 6 | 7 | 10 | 30 | 2 | 6 | 8 | ||||||||||||||||||||||||
Other |
| 5 | (1 | ) | 1 | 5 | | 4 | 4 | |||||||||||||||||||||||
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|||||||||||||||||
Total |
391 | 387 | 423 | 360 | 1,561 | 343 | 415 | 758 | ||||||||||||||||||||||||
Deferred charges included above |
| | | | | | | | ||||||||||||||||||||||||
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|||||||||||||||||
Continuing Operations |
$ | 391 | $ | 387 | $ | 423 | $ | 360 | $ | 1,561 | $ | 343 | $ | 415 | $ | 758 | ||||||||||||||||
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(a) | See Table 8 for EBITDA calculation. |
LyondellBasell Industries | 10 | |
www.lyondellbasell.com |
Table 8 - EBITDA Calculation
2013 | 2014 | |||||||||||||||||||||||||||||||
(Millions of U.S. dollars) |
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | YTD | ||||||||||||||||||||||||
Net income attributable to the Company shareholders |
$ | 901 | $ | 929 | $ | 853 | $ | 1,174 | $ | 3,857 | $ | 945 | $ | 1,178 | $ | 2,123 | ||||||||||||||||
Net income (loss) attributable to non-controlling interests |
(1 | ) | (2 | ) | (2 | ) | 1 | (4 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||||||||||||
(Income) loss from discontinued operations, net of tax |
6 | (4 | ) | 3 | 2 | 7 | (1 | ) | (3 | ) | (4 | ) | ||||||||||||||||||||
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Income from continuing operations |
906 | 923 | 854 | 1,177 | 3,860 | 943 | 1,173 | 2,116 | ||||||||||||||||||||||||
Provision for income taxes |
357 | 410 | 339 | 30 | 1,136 | 383 | 425 | 808 | ||||||||||||||||||||||||
Depreciation and amortization |
253 | 254 | 262 | 252 | 1,021 | 256 | 254 | 510 | ||||||||||||||||||||||||
Interest expense, net |
69 | 65 | 76 | 84 | 294 | 86 | 89 | 175 | ||||||||||||||||||||||||
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EBITDA |
$ | 1,585 | $ | 1,652 | $ | 1,531 | $ | 1,543 | $ | 6,311 | $ | 1,668 | $ | 1,941 | $ | 3,609 | ||||||||||||||||
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LyondellBasell Industries | 11 | |
www.lyondellbasell.com |
Table 9 - Selected Segment Operating Information
2013 | 2014 | |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | YTD | |||||||||||||||||||||||||
Olefins and Polyolefins - Americas |
||||||||||||||||||||||||||||||||
Volumes (million pounds) |
||||||||||||||||||||||||||||||||
Ethylene produced |
2,337 | 2,412 | 2,111 | 2,156 | 9,016 | 1,979 | 1,721 | 3,700 | ||||||||||||||||||||||||
Propylene produced |
624 | 529 | 652 | 646 | 2,451 | 611 | 648 | 1,259 | ||||||||||||||||||||||||
Polyethylene sold |
1,396 | 1,389 | 1,378 | 1,409 | 5,572 | 1,406 | 1,451 | 2,857 | ||||||||||||||||||||||||
Polypropylene sold |
565 | 637 | 669 | 642 | 2,513 | 614 | 632 | 1,246 | ||||||||||||||||||||||||
Benchmark Market Prices |
||||||||||||||||||||||||||||||||
West Texas Intermediate crude oil (USD per barrel) |
94.43 | 94.17 | 105.80 | 97.60 | 98.06 | 98.61 | 102.99 | 100.84 | ||||||||||||||||||||||||
Light Louisiana Sweet (LLS) crude oil (USD per barrel) |
113.86 | 104.64 | 109.94 | 101.12 | 107.31 | 104.36 | 105.55 | 104.97 | ||||||||||||||||||||||||
Natural gas (USD per million BTUs) |
3.45 | 4.22 | 3.68 | 3.70 | 3.78 | 5.01 | 4.74 | 4.87 | ||||||||||||||||||||||||
U.S. weighted average cost of ethylene production (cents/pound) |
13.8 | 15.7 | 16.6 | 18.6 | 16.2 | 20.0 | 17.1 | 18.6 | ||||||||||||||||||||||||
U.S. ethylene (cents/pound) |
48.0 | 46.3 | 45.8 | 46.5 | 46.7 | 48.3 | 47.2 | 47.8 | ||||||||||||||||||||||||
U.S. polyethylene [high density] (cents/pound) |
66.7 | 68.7 | 71.7 | 75.0 | 70.5 | 76.3 | 77.0 | 76.7 | ||||||||||||||||||||||||
U.S. propylene (cents/pound) |
75.0 | 63.3 | 68.3 | 68.2 | 68.7 | 73.3 | 69.7 | 71.5 | ||||||||||||||||||||||||
U.S. polypropylene [homopolymer] (cents/pound) |
88.0 | 76.2 | 82.3 | 82.2 | 82.2 | 88.3 | 84.7 | 86.5 | ||||||||||||||||||||||||
Olefins and Polyolefins - Europe, Asia, International |
||||||||||||||||||||||||||||||||
Volumes (million pounds) |
||||||||||||||||||||||||||||||||
Ethylene produced |
912 | 991 | 984 | 930 | 3,817 | 989 | 1,024 | 2,013 | ||||||||||||||||||||||||
Propylene produced |
577 | 610 | 597 | 568 | 2,352 | 582 | 617 | 1,199 | ||||||||||||||||||||||||
Polyethylene sold |
1,206 | 1,314 | 1,212 | 1,167 | 4,899 | 1,275 | 1,363 | 2,638 | ||||||||||||||||||||||||
Polypropylene sold |
1,657 | 1,821 | 1,612 | 1,531 | 6,621 | 1,509 | 1,707 | 3,216 | ||||||||||||||||||||||||
Benchmark Market Prices (0.01 per pound) |
||||||||||||||||||||||||||||||||
Western Europe weighted average cost of ethylene production |
36.2 | 29.3 | 34.9 | 38.5 | 34.7 | 32.9 | 34.3 | 33.6 | ||||||||||||||||||||||||
Western Europe ethylene |
58.6 | 54.4 | 55.0 | 55.1 | 55.8 | 54.7 | 52.8 | 53.8 | ||||||||||||||||||||||||
Western Europe polyethylene [high density] |
61.2 | 56.8 | 57.9 | 57.1 | 58.2 | 56.1 | 54.8 | 55.5 | ||||||||||||||||||||||||
Western Europe propylene |
50.6 | 47.9 | 49.6 | 49.9 | 49.5 | 51.3 | 52.2 | 51.7 | ||||||||||||||||||||||||
Western Europe polypropylene [homopolymer] |
59.1 | 56.1 | 58.1 | 58.2 | 57.9 | 59.9 | 61.3 | 60.6 | ||||||||||||||||||||||||
Intermediates and Derivatives |
||||||||||||||||||||||||||||||||
Volumes (million pounds) |
||||||||||||||||||||||||||||||||
Propylene oxide and derivatives |
683 | 665 | 665 | 729 | 2,742 | 772 | 781 | 1,553 | ||||||||||||||||||||||||
Ethylene oxide and derivatives |
260 | 277 | 294 | 346 | 1,177 | 262 | 319 | 581 | ||||||||||||||||||||||||
Styrene monomer |
703 | 589 | 756 | 832 | 2,880 | 683 | 870 | 1,553 | ||||||||||||||||||||||||
Acetyls |
431 | 470 | 506 | 510 | 1,917 | 683 | 592 | 1,275 | ||||||||||||||||||||||||
TBA Intermediates |
434 | 357 | 425 | 442 | 1,658 | 416 | 391 | 807 | ||||||||||||||||||||||||
Volumes (million gallons) |
||||||||||||||||||||||||||||||||
MTBE/ETBE |
185 | 235 | 241 | 222 | 883 | 188 | 266 | 454 | ||||||||||||||||||||||||
Benchmark Market Margins (cents per gallon) |
||||||||||||||||||||||||||||||||
MTBE - Northwest Europe |
104.9 | 88.4 | 86.8 | 37.8 | 79.1 | 63.4 | 90.7 | 76.8 | ||||||||||||||||||||||||
Refining |
||||||||||||||||||||||||||||||||
Volumes (thousands of barrels per day) |
||||||||||||||||||||||||||||||||
Heavy crude oil processing rate |
173 | 265 | 250 | 239 | 232 | 247 | 257 | 252 | ||||||||||||||||||||||||
Benchmark Market Margins |
||||||||||||||||||||||||||||||||
Light crude oil - 2-1-1 |
11.53 | 14.63 | 12.63 | 12.67 | 12.89 | 13.18 | 17.29 | 15.27 | ||||||||||||||||||||||||
Light crude oil - Maya differential |
11.17 | 6.95 | 10.59 | 11.65 | 10.05 | 15.08 | 9.72 | 12.41 |
Source: LYB and third party consultants
Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices.
LyondellBasell Industries | 12 | |
www.lyondellbasell.com |
Table 10 - Unaudited Income Statement Information
2013 | 2014 | |||||||||||||||||||||||||||||||
(Millions of U.S. dollars) |
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | YTD | ||||||||||||||||||||||||
Sales and other operating revenues |
$ | 10,669 | $ | 11,103 | $ | 11,152 | $ | 11,138 | $ | 44,062 | $ | 11,135 | $ | 12,117 | $ | 23,252 | ||||||||||||||||
Cost of sales |
9,153 | 9,496 | 9,690 | 9,601 | 37,940 | 9,577 | 10,255 | 19,832 | ||||||||||||||||||||||||
Selling, general and administrative expenses |
213 | 208 | 220 | 229 | 870 | 186 | 215 | 401 | ||||||||||||||||||||||||
Research and development expenses |
36 | 35 | 35 | 44 | 150 | 32 | 34 | 66 | ||||||||||||||||||||||||
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Operating income |
1,267 | 1,364 | 1,207 | 1,264 | 5,102 | 1,340 | 1,613 | 2,953 | ||||||||||||||||||||||||
Income from equity investments |
59 | 43 | 61 | 40 | 203 | 61 | 68 | 129 | ||||||||||||||||||||||||
Interest expense, net |
(69 | ) | (65 | ) | (76 | ) | (84 | ) | (294 | ) | (86 | ) | (89 | ) | (175 | ) | ||||||||||||||||
Other income (expense), net |
6 | (8 | ) | 1 | (13 | ) | (14 | ) | 11 | 6 | 17 | |||||||||||||||||||||
Reorganization items |
| (1 | ) | | | (1 | ) | | | | ||||||||||||||||||||||
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Income from continuing operations before income taxes |
1,263 | 1,333 | 1,193 | 1,207 | 4,996 | 1,326 | 1,598 | 2,924 | ||||||||||||||||||||||||
Provision for income taxes |
357 | 410 | 339 | 30 | 1,136 | 383 | 425 | 808 | ||||||||||||||||||||||||
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Income from continuing operations |
906 | 923 | 854 | 1,177 | 3,860 | 943 | 1,173 | 2,116 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax |
(6 | ) | 4 | (3 | ) | (2 | ) | (7 | ) | 1 | 3 | 4 | ||||||||||||||||||||
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Net income |
900 | 927 | 851 | 1,175 | 3,853 | 944 | 1,176 | 2,120 | ||||||||||||||||||||||||
Net (income) loss attributable to non-controlling interests |
1 | 2 | 2 | (1 | ) | 4 | 1 | 2 | 3 | |||||||||||||||||||||||
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Net income attributable to the Company shareholders |
$ | 901 | $ | 929 | $ | 853 | $ | 1,174 | $ | 3,857 | $ | 945 | $ | 1,178 | $ | 2,123 | ||||||||||||||||
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LyondellBasell Industries | 13 | |
www.lyondellbasell.com |
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 | Q2 | YTD | ||||||||||||||||||||||||
Pretax charges (benefits): |
||||||||||||||||||||||||||||||||
Impairments |
$ | | $ | | $ | | $ | 10 | $ | 10 | $ | | $ | | $ | | ||||||||||||||||
Insurance settlement |
| | | (25 | ) | (25 | ) | | | | ||||||||||||||||||||||
Settlement of environmental indemnification agreement |
| | | | | (52 | ) | | (52 | ) | ||||||||||||||||||||||
Loss on sale of investment |
| | | 16 | 16 | | | | ||||||||||||||||||||||||
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Total pretax charges (benefits) |
| | | 1 | 1 | (52 | ) | | (52 | ) | ||||||||||||||||||||||
Provision for income tax related to these items |
| | | 4 | 4 | | | | ||||||||||||||||||||||||
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After-tax effect of net charges (benefits) |
$ | | $ | | $ | | $ | 5 | $ | 5 | $ | (52 | ) | $ | | $ | (52 | ) | ||||||||||||||
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Effect on diluted earnings per share |
$ | | $ | | $ | | $ | | $ | | $ | 0.09 | $ | | $ | 0.09 |
LyondellBasell Industries | 14 | |
www.lyondellbasell.com |
Table 12 - Unaudited Cash Flow Information
2013 | 2014 | |||||||||||||||||||||||||||||||
(Millions of U.S. dollars) |
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | YTD | ||||||||||||||||||||||||
Net cash provided by operating activities |
$ | 799 | $ | 1,246 | $ | 1,116 | $ | 1,674 | $ | 4,835 | $ | 801 | $ | 1,797 | $ | 2,598 | ||||||||||||||||
Net cash used in investing activities |
(408 | ) | (389 | ) | (438 | ) | (367 | ) | (1,602 | ) | (2,011 | ) | (246 | ) | (2,257 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities |
(234 | ) | (508 | ) | 452 | (1,299 | ) | (1,589 | ) | (550 | ) | (2,217 | ) | (2,767 | ) |
LyondellBasell Industries | 15 | |
www.lyondellbasell.com |
Table 13 - Unaudited Balance Sheet Information
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | |||||||||||||||||||
(Millions of U.S. dollars) |
2013 | 2013 | 2013 | 2013 | 2014 | 2014 | ||||||||||||||||||
Cash and cash equivalents |
$ | 2,879 | $ | 3,233 | $ | 4,414 | $ | 4,450 | $ | 2,702 | $ | 2,030 | ||||||||||||
Restricted cash |
6 | 2 | 4 | 10 | 3 | 2 | ||||||||||||||||||
Short-term investments |
| | | | 1,402 | 1,299 | ||||||||||||||||||
Accounts receivable, net |
3,878 | 4,023 | 4,041 | 4,030 | 4,141 | 4,264 | ||||||||||||||||||
Inventories |
5,270 | 5,197 | 5,382 | 5,279 | 5,589 | 5,326 | ||||||||||||||||||
Prepaid expenses and other current assets |
622 | 577 | 784 | 830 | 1,156 | 784 | ||||||||||||||||||
|
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|
|||||||||||||
Total current assets |
12,655 | 13,032 | 14,625 | 14,599 | 14,993 | 13,705 | ||||||||||||||||||
Property, plant and equipment, net |
7,779 | 7,979 | 8,223 | 8,457 | 8,556 | 8,740 | ||||||||||||||||||
Investments and long-term receivables: |
||||||||||||||||||||||||
Investment in PO joint ventures |
401 | 409 | 423 | 421 | 424 | 418 | ||||||||||||||||||
Equity investments |
1,607 | 1,622 | 1,615 | 1,629 | 1,693 | 1,702 | ||||||||||||||||||
Other investments and long-term receivables |
421 | 231 | 164 | 64 | 62 | 58 | ||||||||||||||||||
Goodwill |
582 | 588 | 598 | 605 | 605 | 602 | ||||||||||||||||||
Intangible assets, net |
999 | 966 | 934 | 904 | 870 | 838 | ||||||||||||||||||
Other assets |
233 | 221 | 229 | 619 | 624 | 593 | ||||||||||||||||||
|
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|
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|
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|
|
|
|||||||||||||
Total assets |
$ | 24,677 | $ | 25,048 | $ | 26,811 | $ | 27,298 | $ | 27,827 | $ | 26,656 | ||||||||||||
|
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|
|||||||||||||
Current maturities of long-term debt |
$ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||
Short-term debt |
115 | 114 | 114 | 58 | 58 | 55 | ||||||||||||||||||
Accounts payable |
3,217 | 3,324 | 3,241 | 3,572 | 3,642 | 3,690 | ||||||||||||||||||
Accrued liabilities |
1,217 | 1,047 | 1,528 | 1,299 | 1,477 | 1,310 | ||||||||||||||||||
Deferred income taxes |
557 | 550 | 494 | 580 | 540 | 570 | ||||||||||||||||||
|
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|
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|
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|
|
|||||||||||||
Total current liabilities |
5,107 | 5,036 | 5,378 | 5,510 | 5,720 | 5,628 | ||||||||||||||||||
Long-term debt |
4,307 | 4,306 | 5,774 | 5,776 | 6,766 | 6,766 | ||||||||||||||||||
Other liabilities |
2,306 | 2,325 | 2,278 | 1,839 | 1,838 | 1,851 | ||||||||||||||||||
Deferred income taxes |
1,277 | 1,312 | 1,472 | 1,659 | 1,677 | 1,623 | ||||||||||||||||||
Stockholders equity |
11,641 | 12,032 | 11,874 | 12,478 | 11,791 | 10,753 | ||||||||||||||||||
Non-controlling interests |
39 | 37 | 35 | 36 | 35 | 35 | ||||||||||||||||||
|
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|
|
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|
|
|
|
|
|
|
|||||||||||||
Total liabilities and stockholders equity |
$ | 24,677 | $ | 25,048 | $ | 26,811 | $ | 27,298 | $ | 27,827 | $ | 26,656 | ||||||||||||
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LyondellBasell Industries | 16 | |
www.lyondellbasell.com |
Jim
Gallogly, Chief Executive Officer Karyn Ovelmen, Chief Financial
Officer Sergey
Vasnetsov,
SVP
Strategic
Planning
and
Transactions
Doug
Pike,
VP
Investor
Relations
Second-Quarter 2014 Earnings
Exhibit 99.2 |
Cautionary Statement
2
The
statements
in
this
presentation
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 Commissions website at www.sec.gov.
The illustrative results or returns of growth projects are not in any way intended
to be, nor should they be taken as, indicators or guarantees of performance.
The assumptions on which they are based are not projections and do not necessarily represent the
Companys expectations and future performance. You should not rely on
illustrated results or returns or these assumptions as being indicative of
our future results or returns. This presentation contains time sensitive
information that is accurate only as of the date hereof. Information contained in this
presentation is unaudited and is subject to change. We undertake no
obligation to update the information presented herein except as required by
law. lyondellbasell.com |
Information Related to Financial Measures
3
We have included EBITDA in this presentation, which is a non-GAAP measure, as
we believe that EBITDA
is
a
measure
commonly
used
by
investors.
However,
EBITDA,
as
presented
herein,
may
not
be
comparable to a similarly titled measure reported by other companies due to
differences in the way the measure is calculated.
We calculate EBITDA as income from continuing operations plus interest
expense (net), provision for (benefit from) income taxes, and depreciation &
amortization. EBITDA should not be considered an alternative to profit or
operating profit for any period as an indicator of our performance, or as an
alternative to operating cash flows as a measure of our liquidity. See Table 8 of
our accompanying earnings release for reconciliations of EBITDA to net
income. While
we
also
believe
that
free
cash
flow
(FCF)
and
book
capital
are
measures
commonly
used
by
investors, free cash flow and book capital, as presented herein,
may not be comparable to similarly titled
measures reported by other companies due to differences in the way the measures are
calculated. For purposes of this presentation, free cash flow means net cash
provided by operating activities minus capital expenditures and book capital
means total debt plus stockholders equity plus minority
interests. lyondellbasell.com |
lyondellbasell.com
Highlights
4
EBITDA
($ in millions)
Income
from
Continuing
Operations
($ in millions, except per share data)
2Q'14
1Q'14
2Q'13
EBITDA
$1,941
$1,668
$1,652
Income from Continuing Operations
$1,173
$943
$923
Diluted Earnings ($ / share) from Continuing Operations
$2.22
$1.72
$1.60
500
1,000
1,500
$2,000
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
300
600
900
1,200
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
LTM
EBITDA
-
$6,683
million
LTM
EPS
$7.54
per
share |
LyondellBasell Safety Performance
5
1) Includes employees and contractors.
Safety -
Injuries per 200,000 Hours Worked
(1)
In June, the American Chemistry Council recognized
LyondellBasell as a Responsible Care Company of the Year
0.0
0.1
0.2
0.3
0.4
0.5
2009
2010
2011
2012
2013
1H 2014
lyondellbasell.com |
1,000
2,000
3,000
$4,000
Olefins &
Polyolefins -
Americas
Olefins &
Polyolefins -
EAI
Intermediates
& Derivatives
Refining
Technology
300
600
900
$1,200
Olefins &
Polyolefins -
Americas
Olefins &
Polyolefins -
EAI
Intermediates
& Derivatives
Refining
Technology
Second Quarter 2014 and Last Twelve Months (LTM)
Segment EBITDA
6
($ in millions)
($ in millions)
LTM June 2014 EBITDA
Second Quarter 2014 EBITDA
Q214 EBITDA
$1,941 million
Q214 Operating Income
$1,613 million
LTM June 2014 EBITDA
$6,683 million
LTM June 2014 Operating Income
$5,424 million
lyondellbasell.com |
lyondellbasell.com
$3,233
$3,529
0
2,000
4,000
6,000
8,000
$10,000
Jul 2013
Beginning
Balance
CF from
Operations
excl.
Working
Capital
Working
Capital
Changes
Capex
Dividends &
Share
Repurchases
Net Debt
Borrowings
Other
Jun 2014
Ending
Balance
$4,379
$3,529
0
2,000
4,000
6,000
8,000
$10,000
Mar 2014
Beginning
Balance
CF from
Operations
excl.
Working
Capital
Working
Capital
Changes
Capex
Dividends &
Share
Repurchases
Net Debt
Borrowings
Other
Jun 2014
Ending
Balance
Cash Flow
7
1) Beginning and ending cash balances include cash and short-term securities; 2)
Includes accounts receivable, inventories and accounts payable; 3) Includes capital and maintenance turnaround spending.
($ in millions)
Q2 2014
LTM June 2014
(3)
(2)
(1)
(2)
(1)
(3)
(1)
(1)
~ $6.1 billion in dividends and share repurchases in the LTM June 2014
|
1,000
2,000
3,000
4,000
5,000
6,000
$7,000
2011
2012
2013
LTM Jun 2014
Capex
Free Cash Flow
1,000
2,000
3,000
4,000
5,000
6,000
$7,000
2011
2012
2013
LTM Jun 2014
Interim Dividends
Special Dividends
Share Repurchases
Strong Cash Generation,
Share Repurchases & Dividends
8
Cash From Operations
Dividends & Share Repurchases
($ in millions)
($ in millions)
~ 19 million shares repurchased during
Q22014 and ~ 62 million shares
repurchased as of June 30, 2014
Key Statistics
1) Cash balances include cash and short-term securities.
Snapshot at June 30, 2014
LTM FCF: $3.8 billion
LTM Capex: $1.5 billion
Cash
(1)
: $3.5 billion
Total Debt/LTM EBITDA: 1.0x
Total Debt/Book Capital: 39%
lyondellbasell.com |
lyondellbasell.com
0
15
30
45
60
Ethane Margin
Naphtha Margin
HDPE Margin
Ethylene/HDPE Chain
Olefins
&
Polyolefins
Americas
Highlights
and
Business
Drivers
2Q14
9
U.S. Olefins
Increased internal ethylene
consumption
inventory
reduction
La Porte turnaround
Lower COE from higher co-product
values and lower NGL costs
Polyethylene
Spread up ~ 2¢/lb
Volumes flat
Polypropylene (includes Catalloy)
Spread up slightly
Volumes up ~ 3%
Ethylene Chain Margins
(1)
EBITDA
Performance vs. 1Q14
Polypropylene Margins
(1)
EBITDA
Margin
Volume
($ in millions)
1) Source: Quarterly average industry data from third party consultants; 2) The
direction of the arrows reflects our underlying business metrics. (2)
2Q13
1Q14
2Q14
Jul14
(cents / lb)
(cents / lb)
200
400
600
800
$1000
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
0.0
1.5
3.0
4.5
6.0
2Q'13
1Q'14
2Q'14
Jul'14 |
lyondellbasell.com
Olefins & Polyolefins
Europe, Asia, International
Highlights and Business Drivers
2Q14
10
EU Olefins
Lower naphtha margin offset by
increased advantaged feedstocks
Operating rate ~ 95%
Polyethylene
Volumes up ~ 7%
Margins flat
Polypropylene (includes Catalloy)
Volumes up ~ 10%
Margins flat
JV equity income
EBITDA
Performance vs. 1Q14
European Polypropylene Margins
(1)
(cents / lb)
(cents / lb)
($ in millions)
(2)
100
200
300
$400
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
(4)
(2)
0
2
4
2Q'13
1Q'14
2Q'14
Jul'14
EBITDA
Margin
Volume
(10)
5
20
35
50
2Q'13
1Q'14
2Q'14
Jul'14
Naphtha Margin
HDPE Margin
Ethylene/HDPE Chain
European Ethylene Chain Margins
(1)
1) Source: Quarterly average data from third party
consultants; 2) The direction of the arrows reflects our underlying business metrics. |
Intermediates & Derivatives
Highlights and Business Drivers
2Q14
11
EBITDA
Propylene Oxide and Derivatives
PO volumes relatively unchanged
Lower derivatives volumes (deicers)
and margins
Intermediates
Acetyls
unchanged
improved
VAM/GAA margins offset by lower
Methanol margins
Improved Styrene volume and margins
Oxyfuels
Seasonal improvement in volumes and
margins
EBITDA
Margin
Volume
Performance vs. 1Q14
($ in millions)
EU
MTBE
Raw
Material
Margins
(per
Platts)
(1)
(cents / gallon)
P-Glycol Raw Material Margins (per Chemdata)
(1)
1) Data represents quarterly average; 2) The direction of the
arrows reflects our underlying business metrics.
(2)
(cents / lb)
100
200
300
400
$500
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
0
20
40
60
2Q13
1Q14
2Q14
3Q14E
0
40
80
120
2Q'13
1Q'14
2Q'14
Jul'14
lyondellbasell.com |
lyondellbasell.com
0
10
20
30
2Q'13
1Q'14
2Q'14
Jul'14
Lt-Hvy
Lt-Gasoline
Lt-ULSD
Refining Highlights and Business Drivers
2Q14
12
Houston Refinery
Crude throughput: 257 MBPD
Maya 2-1-1: $27.01 per bbl
Lower Maya 2-1-1 offset by higher
yield
Cost of RINs flat
EBITDA
Performance vs. 1Q14
EBITDA
Margin
Volume
($ in millions)
1) Light Louisiana Sweet (LLS) is the referenced light crude. Data represents
quarterly average; 2) The direction of the arrows reflects our underlying business metrics.
Capacity = 268 MBPD
Refining Spreads (per Platts)
(1)
Refining Throughput
(2)
($ / bbl)
(MBPD)
50
100
150
$200
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
0
100
200
300
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14 |
Second Quarter Summary and Outlook
13
Industry conditions expected to be
generally consistent with recent
quarters
O&P
Americas impacted by LaPorte
startup delays; expansion expected
on-stream late in quarter
O&P
EAI expects typical seasonal
impacts
Intermediates and Derivatives is
expected to remain steady
July Refining conditions have been
similar to June
Second Quarter Summary
Near-Term Outlook
Record earnings driven by solid
results across all segments
Industry fundamentals remain strong
O&P-
Americas record EBITDA
despite La Porte turnaround
Financial strategy on track with first
10% share repurchase program
complete and next 10% program
underway
lyondellbasell.com |
1 Year LyondellBasell Industrie... Chart |
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