| LyondellBasell Reports Third-Quarter 2013 Results | HOUSTON and LONDON, Oct. 29, 2013 /PRNewswire/ --
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, ------------- -------- ------------- ------------------- Millions of U.S. dollars (except share September 30, June 30, September 30, 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:
Table 2 - Charges (Benefits) Included in Income from Continuing Operations Three Months Ended Nine Months Ended -------------------------------------- September 30, ------------- -------- ------------- ------------------ Millions of U.S. dollars (except September 30, June 30, September 30, share data) 2013 2013 2012 2013 2012 ---------------- ------------- -------- ------------- ------- --------- Pretax charges (benefits): ---------------- ------------- -------- ------------- ------- --------- Charges and premiums related to repayment of debt $ - - $ - - $ - - $ - - $329 --------------- ------------- -------- ------------- ------- --------- Reorganization items - - - - - - - - (5) --------------- ------------- -------- ------------- ------- --------- Impairments - - - - - - - - 22 --------------- ------------- -------- ------------- ------- --------- Warrants - mark to market - - - - - - - - 10 --------------- ------------- -------- ------------- ------- --------- Insurance settlement - - - - - - - - (100) --------------- ------------- -------- ------------- ------- --------- Legal recovery - - - - (24) - - (24) --------------- ------------- -------- ------------- ------- --------- Lower of cost or market inventory adjustment - - - - (71) - - - - --------------- ------------- -------- ------------- ------- --------- Total pretax charges (benefits) - - - - (95) - - 232 ---------------- ------------- -------- ------------- ------- --------- Provision for (benefit from) income tax related to these items - - - - 35 - - (79) ---------------- ------------- -------- ------------- ------- --------- After-tax effect of net charges (credits) $ - - $ - - ($60) $ - - $153 ---------------- ------------- -------- ------------- ------- --------- Effect on diluted earnings per share $0 $0 $0.11 $0 ($0.25) ---------------- ------------- -------- ------------- ------- ---------
"We achieved solid third quarter results, with earnings of $1.51 per share and EBITDA of $1.53 billion," said CEO Jim Gallogly. "This performance is sequentially down from the prior quarter due to scheduled maintenance at a U.S. olefins and polyolefins site and fewer market-related opportunities in our European olefins and polyolefins business. Refining results again proved difficult, pressured by an oversupplied gasoline market, spending for RIN's and plant maintenance."
"During the quarter, we advanced our capital deployment program, purchasing shares and declaring dividends totaling $1.3 billion. Since authorization of the share repurchase program in May 2013 and through the close of the third quarter, approximately three percent of our outstanding shares have been repurchased," Gallogly said.
"Overall, we continued a pattern of steady results seen in recent quarters. Underlying this performance were safe, reliable operations coupled with the North American natural gas advantage. We are taking steps to further capitalize on this advantage. We are making significant progress on our expansion projects which will come online over the next two years. First up will be the fourth-quarter completion of the methanol restart project followed by our La Porte ethylene debottleneck expansion mid next year. We expect to see our growth projects completed significantly ahead of our competition and add to our strong earnings profile," Gallogly said.
OUTLOOK
"The fundamentals that have supported our results remained intact during October. However, we have historically seen margin compression in products such as oxyfuels in winter months and slower polyolefin sales around the holiday season," Gallogly said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT
LyondellBasell operates in five business 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 3 - O&P--Americas Financial Overview ---------------------------------------------------------------------------- Three Months Ended Nine Months Ended -------------------------------------- September 30, ------------- -------- ------------- ------------------- Millions of September 30, June 30, September 30, 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.
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