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Press release from PR Newswire

LyondellBasell Reports Record 2012 Earnings

Friday, February 01, 2013

LyondellBasell Reports Record 2012 Earnings08:28 EST Friday, February 01, 2013   ROTTERDAM, Netherlands, Feb. 1, 2013 /PRNewswire/ -- Full Year 2012 HighlightsRecord earnings of $2,858 million income from continuing operations or $4.96 diluted earnings per share; EBITDA of $5,856 million Strong performance led by advantaged positions in Olefins and Polyolefins ? Americas and Intermediates and Derivatives segments Paid $2.4 billion in dividends, or $4.20 per share, a yield of approximately 7 percent Joined the S&P 500 indexFourth Quarter 2012 Highlights$645 million income from continuing operations or $1.13 diluted earnings per share, and EBITDA of $1,289 million Strong North America olefins margins with approximately 85 percent of ethylene production sourced from natural gas liquids (NGLs) Business followed the typical fourth quarter trends Paid a special dividend of $2.75 per share or $1.6 billionLyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2012 of $645 million, or $1.13 per share. Fourth-quarter 2012 EBITDA was $1,289 million. Full year 2012 income from continuing operations was $2,858 million, or $4.96 per share. Comparisons with the prior quarter, fourth quarter 2011, and full year 2011 are available in the following table.Table 1 - Earnings SummaryThree Months EndedYear EndedMillions of U.S. dollarsDecember 31,September 30,December 31,December 31,December 31,(except share data)2012 2012201120122011Sales and other operating revenues$11,097 $11,273$10,981$45,352$48,183Net income (loss)(a)623 844(218)2,8342,140Income from continuing operations645 851272,8582,472Diluted earnings per share (U.S. dollars):Net income (loss)(b)1.09 1.46(0.38)4.923.74Income from continuing operations1.13 1.470.054.964.32Diluted share count (millions) 578 577575577572EBITDA(c)1,289 1,5657665,8565,585EBITDA excluding LCM inventory valuation adjustments1,289 1,4947665,8565,585(a) Includes net loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 11.(b) Includes diluted loss per share attributable to discontinued operations.(c) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to income from continuing operations.For 2012, LyondellBasell reported record results, led by the Olefins and Polyolefins - Americas and the Intermediates and Derivatives segments, both of which benefit from geographically advantaged feedstocks. Fourth-quarter 2012 EBITDA and net income were lower than the third quarter 2012, following normal seasonal slowdown impacts. Results reflect the following charges and benefits:Table 2 - Charges (Benefits) Included in Net IncomeThree Months EndedYear EndedMillions of U.S. dollarsDecember 31,September 30,December 31,December 31,December 31,(except share data)20122012201120122011Pretax charges (benefits): Charges and premiums related to repayment of debt$ - -$ - -$431$329$443Reorganization items- -- -15(4)45Corporate restructurings53- -185393Impairments- -- -- -2223Sale of precious metals- -- -- -- -(41)Warrants - mark to market- -- -61137Legal recovery- -(24)- -(24)- -Insurance settlement- -- -- -(100)(34)Unfavorable contract reserve reversal(28)- -- -(28)- -Environmental accruals- -- -- -- -16Asset retirement obligations- -- -- -- -10Settlement related to Houston refinery crane incident- -- -(15)- -(15)Lower of cost or market inventory adjustment- -(71)- -- -- -Total pretax charges (benefits)25(95)455259577Provision for (benefit from) income tax related to these items(17)35(154)(96)(169)After-tax effect of net charges (credits)8(60)301163408Effect on diluted earnings per share$ - -$0.11($0.52)($0.26)($0.69)"Our fourth quarter results were in line with seasonal trends and our expectations, contributing to a record year for LyondellBasell," said Jim Gallogly, LyondellBasell Chief Executive Officer. "During 2012, we generated income from continuing operations of $2,858 million or $4.96 per share. Our North American olefins business and our Intermediates and Derivatives segment set the pace for the year's strong performance. The benefits of our focused back-to-basics strategy were clearly demonstrated as reliable manufacturing operations allowed us to take advantage of favorable market conditions. The U.S. shale gas revolution is clearly visible in our current results as well as future growth plans," Gallogly said."Over the past two and a half years, the company has advanced every facet of its business processes, including safer and more reliable operations, strict cost control and refurbishing its assets through a large number of major turnarounds. This work has enabled strong returns to shareholders, a strengthened balance sheet, and a significant capital growth program. Our employees' hard work and dedication have contributed to our strong operational and financial performance," Gallogly said."During the year, we paid dividends of more than $2.4 billion, or $4.20 per share, contributing to an annual shareholders' return of 89 percent. Our success was further recognized through our addition to the S&P 500 index and Moody's raising our credit rating to investment grade," Gallogly said.OUTLOOKCommenting on the near term outlook, Gallogly said, "We have seen a good start in 2013. Our assets have run well through the early weeks of the new year. Overall, the fundamentals that supported our success during 2012 have continued. Our employees remain very focused, and we anticipate another strong year in 2013.""Olefins in North America continue to benefit from strong margins created by low priced natural gas liquid raw materials. However, outside of North America, the global olefins industry continues to experience low operating rates and profitability, negatively impacting our European olefins and commodity polyolefin businesses," Gallogly said."The diversified portfolio of businesses in our Intermediates and Derivatives segment continues to realize solid performance. Our Refining segment will be impacted by a turnaround in the first quarter as we complete scheduled maintenance at our Houston refinery," added Gallogly.LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT LyondellBasell operates in five business segments: 1) Olefins and Polyolefins ? Americas; 2) Olefins and Polyolefins ? Europe, Asia, 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 OverviewThree Months EndedYear EndedDecember 31,September 30,December 31,December 31,December 31,Millions of U.S. dollars20122012 201120122011Operating income$693$738$328$2,650$1,855EBITDA769820 4072,9632,140EBITDA excluding LCM charges769749 4072,9632,140Three months ended December 31, 2012 versus three months ended September 30, 2012 ? EBITDA decreased $51 million versus the third quarter 2012. Underlying EBITDA increased by $20 million excluding the impact of the $71 million non-cash lower of cost or market (LCM) reversal in the third quarter 2012. Compared to the prior period, underlying olefins results increased primarily due to margin improvement in the fourth quarter 2012. The fourth quarter was the second consecutive quarter where the company's North American olefins plant utilization exceeded 100 percent of nameplate capacity. Combined polyolefin results declined slightly, driven by lower polyethylene spreads and a 6 percent decline in polypropylene sales volume. During the third quarter, the segment received $10 million in dividends from the Indelpro joint venture. Three months ended December 31, 2012 versus three months ended December 31, 2011 ? EBITDA increased $362 million versus the fourth quarter 2011. Olefins results increased compared to the prior year period largely as a result of significantly improved margins resulting from lower natural gas liquid prices, in addition to increased ethylene production. Polyethylene results improved as a result of a 7 percent increase in sales volume coupled with approximately 3 cents per pound spread improvement. Polypropylene results also increased as a result of higher polypropylene margins more than offsetting a 4 percent volume decline. Full year ended December 31, 2012 versus full year ended December 31, 2011 ? EBITDA increased $823 million versus 2011. Olefins results increased compared to the prior year, primarily driven by improved ethylene margins as the company's average cost-of-ethylene-production metric decreased approximately 11 cents per pound, which more than offset an approximate 3 cents per pound decline in the company's average ethylene sales price. Polyolefin results were higher in 2012 than in 2011 as both sales volumes and margins improved. The segment benefited in 2012 from a $29 million hurricane insurance settlement.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 OverviewThree Months EndedYear EndedDecember 31,September 30,December 31,December 31,December 31,Millions of U.S. dollars20122012 201120122011Operating income (loss)($94)$15($73)$127$435EBITDA5075 45561894Three months ended December 31, 2012 versus three months ended September 30, 2012 ? EBITDA decreased $25 million versus the third quarter 2012. The fourth quarter included a net negative impact related to various items such as restructuring and compensation accruals, a feedstock contract renegotiation, and a Wesseling plant turnaround. Underlying results for combined olefins and polyolefins improved by approximately $30 million. Combined polypropylene compounds and Polybutene-1 results declined approximately $40 million from a strong third quarter 2012 due to a seasonal volume decline in addition to lower margins related to raw materials pricing volatility. Dividends from joint ventures totaled $50 million during the fourth quarter 2012. Three months ended December 31, 2012 versus three months ended December 31, 2011 ? EBITDA increased $5 million versus the fourth quarter 2011. Underlying olefins results increased due to improved margins. Combined polyolefin results increased approximately $25 million compared to the prior year period primarily as a result of improved margins. Polypropylene compounding and Polybutene-1 results declined approximately $25 million compared to the prior year period due to lower margins, driven by a raw material pricing lag that more than offset a 3 percent volume increase. Dividends from joint ventures totaled $50 million in the fourth quarter 2012 and $44 million in the same period in 2011.Full year ended December 31, 2012 versus full year ended December 31, 2011 ? EBITDA decreased $333 million versus 2011. Olefins results declined approximately $190 million due to lower margins and a 6 percent decline in production volume, partly associated with the Wesseling plant turnaround in late 2012. Combined polyolefin results fell approximately $65 million due to lower sales volumes and margins, while results for polypropylene compounding and Polybutene-1 improved by approximately $10 million as margins improved and volumes stayed relatively unchanged. Dividends from joint ventures decreased $68 million in 2012 when compared to 2011. 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 OverviewThree Months EndedYear EndedDecember 31,September 30,December 31,December 31,December 31,Millions of U.S. dollars2012 2012201120122011Operating income$246$424$185$1,430$1,156EBITDA305 4752351,6531,392Three months ended December 31, 2012 versus three months ended September 30, 2012 ? EBITDA decreased $170 million versus the third quarter 2012. Combined PO and derivatives, and intermediate chemicals results declined approximately $55 million versus the prior period due to the effects of planned maintenance turnarounds and a seasonal drop in demand. Oxyfuels results declined approximately $100 million due to lower sales volumes and margins associated with typical fourth quarter gasoline demand and pricing seasonality. Three months ended December 31, 2012 versus three months ended December 31, 2011 ? EBITDA increased $70 million compared to the fourth quarter 2011. Underlying EBITDA for PO and derivatives decreased slightly versus the prior year period due to lower margins. The decline in PO and derivatives was outpaced by higher C4 chemicals margins and increased acetyls volumes and margins compared to the fourth quarter 2011. Oxyfuels results increased by approximately $55 million due to improved margins driven by higher fourth quarter 2012 gasoline prices coupled with higher crude oil-to-natural gas spread relative to the fourth quarter 2011.Full year ended December 31, 2012 versus full year ended December 31, 2011 ? EBITDA in 2012 increased by $261 million versus 2011. Combined results for PO, PO derivatives and intermediate chemicals products increased. Improved C4 chemical margins more than offset moderate declines in PO derivatives and ethylene glycol margins. Oxyfuels results increased by approximately $230 million due to improved volumes and margins. Higher margins in 2012 were driven by higher gasoline prices coupled with higher crude oil-to-natural gas spread compared to 2011. The I&D segment benefited in 2012 from $14 million in joint venture dividends and $18 million in proceeds from a hurricane insurance settlement, and in 2011 from $41 million related to the sale of precious metals. Refining ? The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials. Table 6 - Refining Financial OverviewThree Months EndedYear EndedDecember 31,September 30,December 31,December 31,December 31,Millions of U.S. dollars20122012 201120122011Operating income$86$114$3$334$809EBITDA122150 67481977Three months ended December 31, 2012 versus three months ended September 30, 2012 ? EBITDA decreased $28 million versus the third quarter 2012. Excluding the $24 million in proceeds related to a legal restitution in the third quarter 2012, underlying business results were relatively unchanged. The Houston refinery operated at 255,000 barrels per day, up 15,000 barrels per day from the prior quarter. The Maya 2-1-1 benchmark crack spread decreased $2.29 per barrel to $24.36 per barrel in the fourth quarter 2012. Relative to the benchmark spread, results continue to be negatively impacted from depressed by-product values such as petroleum coke and various natural gas based products. Three months ended December 31, 2012 versus three months ended December 31, 2011 ? EBITDA increased $55 million versus the fourth quarter 2011. The Houston refinery operated at 255,000 barrels per day, down 7,000 barrels per day from the fourth quarter in 2011. The throughput decline, which negatively impacted the segment results by approximately $10 million, was more than offset by improved fourth quarter 2012 margins. The Maya 2-1-1 benchmark crack spread increased $11.65 per barrel to $24.36 per barrel in the fourth quarter 2012. The fourth quarter 2011 results included $15 million in proceeds from the 2008 crane incident settlement. Full year ended December 31, 2012 versus full year ended December 31, 2011 ? EBITDA decreased $496 million in 2012 compared to 2011 due to fewer opportunities to purchase discounted crude oils, reduced by-product values, and a throughput decline of 8,000 barrels-per-day. The throughput decline was the result of a combination of planned and unplanned outages at the Houston refinery. The Maya 2-1-1 benchmark crack spread increased $1.99 per barrel to $23.55 per barrel in 2012 compared to 2011. Relative to the benchmark spread, results were negatively impacted from reduced opportunity to purchase discounted crude oils, and depressed by-product values such as petroleum coke. The refining segment benefited from proceeds of $77 million in 2012 and $49 million in 2011 from insurance claims, recoveries and settlements.Technology ? The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services. Table 7 - Technology Financial OverviewThree Months EndedYear EndedDecember 31,September 30,December 31,December 31,December 31,Millions of U.S. dollars20122012 201120122011Operating income$23$31$11$122$107EBITDA4348 36197214Three months ended December 31, 2012 versus three months ended September 30, 2012 ? EBITDA declined $5 million compared to the third quarter 2012. Higher catalyst sales were more than offset by $18 million in charges related to research and development restructuring activities. Three months ended December 31, 2012 versus three months ended December 31, 2011 ? EBITDA increased $7 million compared to the fourth quarter of the prior year driven by higher catalyst sales and licensing activities. The fourth quarter 2012 includes $18 million in charges related to research and development restructuring activities.Full year ended December 31, 2012 versus full year ended December 31, 2011 ? EBITDA decreased $17 million due to charges related to research and development restructuring activities. Capital Spending and Cash balancesCapital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $333 million during the fourth quarter 2012 and $1.1 billion for the full year 2012. The company's cash balance was approximately $2.7 billion on Dec. 31, 2012.CONFERENCE CALLLyondellBasell will host a conference call today, Feb. 01, 2013, 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 800-369-1609. For international numbers, please go to our website, www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 4807902. A replay of the call will be available from 2 p.m. ET Feb. 1 to 11 p.m. ET on March 1. The replay dial-in numbers are 866-454-2134 (U.S.) and +1 203-369-1248 (international). The pass code for each number is 7068. The slides that accompany the call will be available at http://www.lyondellbasell.com/earnings.ABOUT LYONDELLBASELLLyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500 Index. LyondellBasell (www.lyondellbasell.com) manufactures products at 58 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. FORWARD-LOOKING STATEMENTSThe 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; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2011, which can be found at www.lyondellbasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.govNON-GAAP MEASURESThis release makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.We have included EBITDA in this press release. EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. For purposes of this release, EBITDA means net income before net interest expense, income taxes, depreciation and amortization, reorganization items, income from equity investments, income (loss) attributable to non-controlling interests, net income (loss) from discontinued operations, plus joint venture dividends, as adjusted for other items management does not believe are indicative of the Company's underlying results of operations such as impairment charges, asset retirement obligations and the effect of mark-to-market accounting on our warrants. The specific items for which EBITDA is adjusted in each applicable reporting period may only be relevant in certain periods and are disclosed in the reconciliation of non-GAAP financial measures table. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as alternatives to operating cash flows as a measure of our liquidity. Quantitative reconciliations of non-GAAP financial measures are provided in Table 9 at the end of this release.OTHER FINANCIAL MEASURE PRESENTATION NOTESThis 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: David A. Harpole +1 713-309-4125 Investor Contact: Douglas J. Pike +1 713-309-7141Table 8 - Reconciliation of Segment Information to Consolidated Financial Information2011 2012(Millions of U.S. dollars)Q1Q2Q3Q4YTDQ1Q2Q3Q4YTDSales and other operating revenues: Olefins & Polyolefins - Americas$3,572$4,010$3,875$3,423$14,880$3,349$3,283$3,217$3,085$12,934Olefins & Polyolefins - EAI3,988 4,2923,9543,35715,5913,8983,5753,4483,60014,521Intermediates & Derivatives2,331 2,5362,4912,1429,5002,4852,2852,6372,2519,658Refining2,867 3,9963,9552,88813,7063,2033,4963,2723,32013,291Technology139 126129112506119115124140498Other/elims(1,517)(1,654)(1,888)(941)(6,000)(1,320)(1,506)(1,425)(1,299)(5,550)Continuing Operations$11,380$13,306$12,516$10,981$48,183$11,734$11,248$11,273$11,097$45,352Discontinued Operations$872$736$781$463$2,852$145$42$56$35$278Operating income (loss): Olefins & Polyolefins - Americas$421$508$598$328$1,855$519$700$738$693$2,650Olefins & Polyolefins - EAI175 203130(73)435320315(94)127Intermediates & Derivatives276 3273681851,1563703904242461,430Refining158 25839038091012411486334Technology66 2371110738303123122Other(1)(9)- -(15)(25)- -26513Continuing Operations$1,095$1,310$1,493$439$4,337$940$1,449$1,328$959$4,676Discontinued Operations$(30)$(45)$(26)$(238)$(339)$6$(15)$(8)$(6)$(23)Depreciation and amortization:Olefins & Polyolefins - Americas$58$59$64$65$246$65$71$69$76$281Olefins & Polyolefins - EAI57 66697026269696384285Intermediates & Derivatives44 48464818647484950194Refining32 35374915338373637148Technology24 162123841819181873Other- - - -- -- -- -- -- -112Continuing Operations$215$224$237$255$931$237$244$236$266$983Discontinued Operations$- -$- -$- -$- -$- -$- -$- -$- -$- -$- -EBITDA: (a)Olefins & Polyolefins - Americas$484$577$672$407$2,140$598$776$820$769$2,963Olefins & Polyolefins - EAI329 273247458941013357550561Intermediates & Derivatives321 4194172351,3924184554753051,653Refining190 2934276797748161150122481Technology91 42453621457494843197Other5 (11)(2)(24)(32)6(2)(3)- -1Continuing Operations$1,420$1,593$1,806$766$5,585$1,228$1,774$1,565$1,289$5,856Discontinued Operations$(18)$(40)$(18)$(230)$(306)$8$(15)$(9)$(6)$(22)Capital, turnarounds and IT deferred spending: Olefins & Polyolefins - Americas$66$138$149$72$425$102$135$126$105$468Olefins & Polyolefins - EAI42 374611023560396095254Intermediates & Derivatives5 15265510118244473159Refining96 49453422438272447136Technology7 3882698121443Other1 10- -617231(1)5Total 217 2522742851,0282292362673331,065Deferred charges included above(1)- -(2)(4)(7)(1)(3)(1)- -(5)Continuing Operations$216$252$272$281$1,021$228$233$266$333$1,060Discontinued Operations$5$9$7$8$29$- -$- -$- -$- -$- -(a) See Table 9 for a reconciliation of total EBITDA to income from continuing operations. Table 9 - Reconciliation of EBITDA to Income from Continuing Operations20112012(Millions of U.S. dollars)Q1Q2Q3Q4YTDQ1Q2Q3Q4YTDSegment EBITDA:Olefins & Polyolefins - Americas$484$577$672$407$2,140$598$776$820$769$2,963Olefins & Polyolefins - EAI329273247458941013357550561Intermediates & Derivatives3214194172351,3924184554753051,653Refining1902934276797748161150122481Technology9142453621457494843197Other5(11)(2)(24)(32)6(2)(3)- -1Total EBITDA1,4201,5931,8067665,5851,2281,7741,5651,2895,856Adjustments to EBITDA:Legal recovery- -- -- -- -- -- -- -(24)- -(24)Unfavorable contract reserve reversal- -- -- -- -- -- -- -- -(28)(28)Lower of cost or market inventory adjustment- -- -- -- -- -- -71(71)- -- -Sale of precious metals- -(41)- -- -(41)- -- -- -- -- -Corporate restructurings- -61141893- -- -- -5353Environmental accruals- -16- -- -16- -- -- -- -- -Settlement related to Houston refinery crane incident- -- -- -(15)(15)- -- -- -- -- -Insurance settlement(34)- -- -- -(34)- -(100)- -- -(100)Total Adjusted EBITDA1,3861,6291,8207695,6041,2281,7451,4701,3145,757Add: Income from equity investments5873523321646273238143Deduct: Adjustments to EBITDA34(36)(14)(3)(19)- -2995(25)99Depreciation and amortization (215)(224)(237)(255)(931)(237)(244)(236)(266)(983)Impairment charges- -(4)(19)- -(23)(22)- -- -- -(22)Asset retirement obligation- -- -(10)- -(10)- -- -- -- -- -Reorganization items(2)(28)- -(15)(45)5(1)- -- -4Interest expense, net(155)(164)(146)(542)(1,007)(95)(409)(67)(69)(640)Joint venture dividends received(96)(11)(55)(44)(206)(14)(73)(10)(50)(147)Provision for income taxes(263)(388)(506)98(1,059)(301)(306)(435)(285)(1,327)Non-controlling interests(3)(1)- -(3)(7)(1)(2)(2)(9)(14)Fair value change in warrants(59)622(6)(37)(10)- -(1)- -(11)Other(3)(1)5(5)(4)(5)25(3)(1)Income from continuing operations682851912272,4725947688516452,858Adjustments to EBITDA(34)3614319- -(29)(95)25(99)Premiums and charges on early repayment of debt- -12- -431443- -329- -- -329Reorganization items228- -1545(5)1- -- -(4)Asset retirement obligation- -- -10- -10- -- -- -- -- -Fair value change in warrants59(6)(22)63710- -1- -11Impairment charges- -419- -2322- -- -- -22Tax impact of net income (loss) adjustments11(21)(5)(154)(169)(5)(109)35(17)(96)Adjusted income from continuing operations$720$904$928$328$2,880$616$960$792$653$3,021Earnings (loss) per share:Diluted earnings per share ?continuing operations$1.19$1.46$1.54$0.05$4.32$1.03$1.33$1.47$1.13$4.96Adjustments to continuing operations0.070.090.030.520.690.040.32(0.11)- -0.26Adjusted diluted earnings per share$1.26$1.55$1.57$0.57$5.01$1.07$1.65$1.36$1.13$5.22Table 10 - Selected Segment Operating Information2011 2012Q1Q2Q3Q4YTDQ1Q2Q3Q4YTDOlefins and Polyolefins - AmericasVolumes (million pounds)Ethylene produced2,089 1,9292,1342,2018,3531,9882,1342,4012,4498,972Propylene produced769 5568387442,9075336156335822,363Polyethylene sold1,405 1,3771,3681,3435,4931,4481,3161,4341,4415,639Polypropylene sold685 7047277272,8437357197406952,889Benchmark Market PricesWest Texas Intermediate crude oil (USDper barrel)94.60 102.3489.5494.0695.11103.0393.3592.2088.2394.15Light Louisiana Sweet ("LLS") crude oil (USDper barrel)107.83 118.34112.46110.81112.40119.85108.24109.36109.47111.70Natural gas (USD per million BTUs)4.19 4.434.313.644.142.652.332.923.492.90U.S. weighted average cost of ethylene production(cents/pound)32.6 33.834.341.635.628.518.419.718.621.2U.S. ethylene (cents/pound)49.3 57.555.854.454.354.946.945.445.748.3U.S. polyethylene [high density] (cents/pound)61.7 68.763.059.763.367.063.059.359.762.3U.S. propylene (cents/pound)71.7 87.376.557.873.367.264.249.854.558.9U.S. polypropylene [homopolymer] (cents/pound)89.3 99.790.270.787.581.276.763.868.572.5Olefins and Polyolefins - Europe, Asia, InternationalVolumes (million pounds)Ethylene produced997 9999268073,7299479308028333,512Propylene produced608 6315604872,2865775624935022,134Polyethylene sold1,305 1,2791,3491,2105,1431,3161,1371,2531,2574,963Polypropylene sold1,551 1,4941,4891,5436,0771,5411,3371,6331,5746,085Benchmark Market PricesWestern Europe weighted average cost of ethylene production (â?¬0.01 per pound)34.7 35.437.338.536.545.431.739.638.938.9Western Europe ethylene (â?¬0.01 per pound)52.0 54.750.349.751.755.158.653.158.156.2Western Europe polyethylene [high density] (â?¬0.01per pound)55.9 59.354.052.555.458.660.957.261.059.4Western Europe propylene (â?¬0.01 per pound)50.8 55.350.246.550.750.154.147.650.850.7Western Europe polypropylene [homopolymer] (â?¬0.01 per pound)61.3 63.857.053.058.857.960.456.158.758.3Intermediates and DerivativesVolumes (million pounds)Propylene oxide and derivatives798 7377216842,9407747437626632,942Ethylene oxide and derivatives288 2772812541,1003122753112601,158Styrene monomer852 8177146823,0657046787987942,974Acetyls439 4174113701,6374894444994041,836TBA Intermediates485 4594334181,7954624484413991,750Volumes (million gallons)MTBE/ETBE191 195227205818205189256199849Benchmark Market MarginsMTBE - Northwest Europe (cents per gallon)58.9 92.794.187.083.1125.1122.0149.976.3118.2RefiningVolumes (thousands of barrels per day)Heavy crude oil processing rate258 263269262263259267240255255Benchmark Market MarginsLight crude oil - 2-1-16.00 10.289.545.267.809.3414.0414.717.9111.50Light crude oil - Maya differential17.87 15.5013.997.4513.7610.819.1211.9416.4512.05Source: IHS, Bloomberg, LyondellBasell IndustriesNote - Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. Table 11 - Unaudited Income Statement Information20112012(Millions of U.S. dollars)Q1Q2Q3Q4YTDQ1Q2Q3Q4YTDSales and other operating revenues$11,380$13,306$12,516$10,981$48,183$11,734$11,248$11,273$11,097$45,352Cost of sales10,03711,70410,73410,25742,73210,5329,5619,6709,83239,595Selling, general and administrative expenses215236236231918223201236249909Research and development expenses3356535419639373957172Operating income1,0951,3101,4934394,3379401,4491,3289594,676Income from equity investments5873523321646273238143Interest expense, net(156)(163)(146)(542)(1,007)(95)(409)(67)(69)(640)Other income (expense), net(50)47191430(1)8(7)22Income (loss) before income taxes and reorganization items9471,2671,418(56)3,5768901,0751,2869304,181Reorganization items(2)(28)- -(15)(45)5(1)- -- -4Income (loss) before taxes9451,2391,418(71)3,5318951,0741,2869304,185Provision for (benefit from) income taxes263388506(98)1,0593013064352851,327Income from continuing operations682851912272,4725947688516452,858Income (loss) from discontinued operations, net of tax(22)(48)(17)(245)(332)5- -(7)(22)(24)Net income (loss)660803895(218)2,1405997688446232,834Net loss attributable to non-controlling interests31- -37122914Net income (loss) attributableto the Company shareholders$663$804$895$(215)$2,147$600$770$846$632$2,848Table 12 - Unaudited Cash Flow Information2011 2012(Millions of U.S. dollars)Q1Q2Q3Q4YTDQ1Q2Q3Q4YTDNet cash provided by operating activities$221$1,023$1,528$88$2,860$913$504$2,042$1,328$4,787Net cash used in investing activities(216)(435)(320)(50)(1,021)(185)(245)(266)(317)(1,013)Net cash provided by (used in) financing activities28 (324)(115)(4,544)(4,955)(140)55(234)(1,826)(2,145)Table 13 - Unaudited Balance Sheet InformationMarch 31,June 30,September 30,December 31,March 31,June 30,September 30,December 31,(Millions of U.S. dollars)20112011201120112012201220122012Cash and cash equivalents$4,383$4,687$5,609$1,065$1,670$1,950$3,527$2,732Restricted cash- -25029253914195Accounts receivable, net4,7644,9014,0383,7784,2093,8884,0833,904Inventories5,7265,5775,6825,4995,2085,7595,2345,075Prepaid expenses and othercurrent assets1,1001,0981,0971,0401,002755532570Total current assets15,97316,51316,71811,43512,09812,36613,39512,286Property, plant and equipment, net7,4407,5697,3637,3337,4267,2377,4127,696Investments and long-termreceivables: Investment in PO joint ventures444436422412415411405397Equity investments 1,5861,6541,5941,5591,6051,5211,5811,583Other investments andlong-term receivables808271727670361383Goodwill615621598585595576585591Intangible assets, net1,3441,3101,2371,1771,1491,1031,0731,038Other assets, net274290264266245261292246Total assets$27,756$28,475$28,267$22,839$23,609$23,545$25,104$24,220Current maturities of long-term debt$253$2$2$4$- -$- -$- -$1Short-term debt5150494842484795Accounts payable4,0993,9993,3073,4143,5453,0043,2973,285Accrued liabilities1,7111,6131,5051,2421,0499151,1771,157Deferred income taxes321315315310310277304558Total current liabilities6,4355,9795,1785,0184,9464,2444,8255,096Long-term debt5,8055,8135,7823,9803,9844,3054,3054,304Other liabilities2,0432,1102,0212,2772,2812,2082,1532,327Deferred income taxes7609471,2049171,0351,2451,4601,314Stockholders' equity12,67113,57914,02510,59311,31011,49212,31211,139Non-controlling interests4247575453514940Total liabilities andstockholders' equity$27,756$28,475$28,267$22,839$23,609$23,545$25,104$24,220SOURCE LyondellBasell Industries