HOUSTON and LONDON, Oct. 27,
2017 /PRNewswire/ --
Third Quarter 2017 Highlights
- Income from continuing operations: $1.1
billion
- EBITDA: $1.8 billion
- Quarterly diluted earnings per share: $2.67 per share
- Impacts from Hurricane Harvey partially offset by margin
improvements
- Dividends and share repurchases totaled $652 million; repurchased 3.1 million shares
during the third quarter
- Senior unsecured debt raised to BBB+ by S&P Global
Ratings
Comparisons with the prior quarter and third quarter
2016 are available in the following table:
Table 1 - Earnings
Summary
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
30,
|
June
30,
|
September
30,
|
September
30,
|
Millions of
U.S. dollars (except share data)
|
2017
|
2017
|
2016
|
2017
|
2016
|
Sales and other
operating revenues
|
$8,516
|
$8,403
|
$7,365
|
$25,349
|
$21,436
|
Net
income(a)
|
1,056
|
1,130
|
953
|
2,983
|
3,074
|
Income from
continuing operations(b)
|
1,058
|
1,134
|
955
|
2,997
|
3,077
|
Diluted earnings per
share (U.S. dollars):
|
|
|
|
|
|
|
Net
income(c)
|
2.67
|
2.81
|
2.30
|
7.46
|
7.23
|
|
Income from
continuing operations(b)
|
2.67
|
2.82
|
2.31
|
7.49
|
7.24
|
Diluted share count
(millions)
|
395
|
402
|
414
|
400
|
424
|
EBITDA(d)
|
1,821
|
1,970
|
1,606
|
5,408
|
5,196
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes net (income)
loss attributable to non-controlling interests and loss from
discontinued operations, net of tax. See Table 10.
|
(b)
|
See Table 11 for
charges and benefits to income from continuing
operations.
|
(c)
|
Includes diluted
earnings (loss) per share attributable to discontinued
operations.
|
(d)
|
See the end of this
release for an explanation of the Company's use of EBITDA and Table
8 for reconciliations of EBITDA to net income and income from
continuing operations.
|
LyondellBasell Industries (NYSE: LYB) today announced earnings
from continuing operations for the third quarter 2017 of
$1.1 billion, or $2.67 per share. In September,
LyondellBasell's interest in the Geosel pipeline and storage system
in France was sold for an
after-tax gain of $103 million that
increased third quarter earnings by $0.26 per share. Third quarter 2017 EBITDA
was $1.8 billion.
"LyondellBasell's portfolio of global businesses demonstrated
strong performance in the third quarter with EBITDA in our
Intermediates and Derivatives segment improving by more than 30%
relative to the third quarter of 2016 and continued strong results
from our Olefins and Polyolefins – Europe, Asia
and International segment," said Bob
Patel, LyondellBasell CEO.
"On the U.S. Gulf Coast, our commitment to hurricane
preparedness enabled safe plant operations during Hurricane
Harvey. We are deeply grateful for the selfless dedication
and commitment of our employees toward both restoring our
businesses and supporting our communities during this unprecedented
storm. We estimate that lost sales volumes valued at third
quarter margins and additional related costs due to the storm
impacted third quarter results by approximately $200 million. Margin improvements during
September provided a partial offset to the lost production and
higher costs," Patel said.
"During the third quarter, LyondellBasell advanced our growth
strategy by opening a new polypropylene compounds plant in
China and reaching final
investment decision for our next propylene oxide (PO) plant while
generating approximately $1.5 billion
of cash flow from operating activity and returning $652 million to shareholders. With Standard
& Poor's raising our senior unsecured debt to BBB+, the rating
on our long-term debt now matches our strong corporate
investment-grade credit ratings," said Patel.
OUTLOOK
"Hurricane Harvey reduced inventories across
the petrochemical industry and contributed to further delays in the
startup of new U.S. ethylene and derivative capacity. As the
industry works to rebuild inventories during the fourth quarter, we
expect global markets will remain tight to balanced for the
remainder of 2017 and the industry will be better positioned to
absorb capacity additions during 2018," Patel said.
LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING
SEGMENT
LyondellBasell manages operations through five
operating segments: 1) Olefins and Polyolefins – Americas; 2)
Olefins and Polyolefins – Europe,
Asia and International (EAI); 3)
Intermediates and Derivatives; 4) Refining; and 5)
Technology.
Olefins and Polyolefins - Americas (O&P-Americas) –
Our O&P–Americas segment produces and markets olefins and
co-products, polyethylene and polypropylene.
|
|
|
|
|
|
|
Table 2 -
O&P–Americas Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
|
September
30,
|
June
30,
|
September
30,
|
September
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$497
|
$738
|
$582
|
$1,794
|
$1,935
|
|
EBITDA
|
616
|
859
|
682
|
2,198
|
2,314
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2017 versus three months ended June
30, 2017 – EBITDA decreased $243
million versus the second quarter 2017. Compared to
the prior period, olefin results declined approximately
$260 million. Ethylene margins
fell approximately 5 cents per pound
primarily due to increasing feedstock prices. Sales volumes
also declined due to production outages related to Hurricane
Harvey. Combined polyolefin results were relatively
unchanged. Improvements in polyethylene volume and
polyethylene spreads over ethylene were offset by reduced volumes
in polypropylene combined with polypropylene prices lagging
propylene price increases. Joint venture equity income
decreased by $3 million.
Three months ended September 30,
2017 versus three months ended September 30, 2016 – EBITDA decreased
$66 million versus the third quarter
2016. Olefin results declined approximately $130 million primarily due to a decrease in
ethylene margin from reduced ethylene price and increased feedstock
costs. Net ethylene production increased 8 percent due to
planned maintenance and expansion in the third quarter 2016 at
Corpus Christi and planned
maintenance at Morris which exceeded the Harvey volume impacts in
the third quarter 2017. Combined polyolefin results increased
approximately $40 million primarily
due to a polyethylene spread improvement over ethylene of
approximately 5 cents per
pound. Joint venture equity income declined by $4 million.
Olefins and Polyolefins - Europe, Asia,
and International (O&P-EAI) – Our O&P–EAI segment
produces and markets olefins and co-products, polyethylene and
polypropylene, including polypropylene compounds.
Table 3 -
O&P–EAI Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
|
September
30,
|
June
30,
|
September
30,
|
September
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$460
|
$549
|
$447
|
$1,410
|
$1,228
|
|
EBITDA
|
698
|
699
|
584
|
1,926
|
1,669
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2017 versus three months ended June
30, 2017 – EBITDA decreased by $1
million versus the second quarter 2017. The third
quarter benefited $108 million from
the sale of LyondellBasell's interest in Geosel. Olefin
results decreased approximately $100
million primarily due to declining co-product prices.
Combined polyolefin results decreased approximately $10 million with reduced margins partially offset
by increased volume. Joint venture equity income was
relatively unchanged.
Three months ended September 30,
2017 versus three months ended September 30, 2016 – EBITDA increased by
$114 million versus the third quarter
2016. The third quarter 2017 benefited $108 million from the sale of LyondellBasell's
interest in Geosel. Third quarter 2016 included an
$11 million benefit from the
restructuring of Asian polypropylene joint ventures and the sale of
Australian polypropylene assets. Olefin results decreased by
approximately $15 million as higher
feedstock prices led to declining ethylene margins. Combined
polyolefin results increased by approximately $10 million with increased sales volumes
partially offset by declining polyethylene spreads. Joint
venture equity income was relatively unchanged.
Intermediates and Derivatives (I&D) – Our
I&D segment produces and markets propylene oxide (PO) and its
derivatives, oxyfuels and related products and intermediate
chemicals, such as styrene monomer, acetyls, ethylene oxide and
ethylene glycol.
Table 4 - I&D
Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
September
30,
|
June
30,
|
September
30,
|
September
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$329
|
$270
|
$240
|
$868
|
$822
|
|
EBITDA
|
402
|
339
|
304
|
1,080
|
1,027
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2017 versus three months ended June
30, 2017 – EBITDA increased $63 million versus the second quarter
2017. PO and derivatives results increased approximately
$25 million. Volumes improved
resulting from the completion of planned maintenance at our plant
in Botlek, The Netherlands in the
second quarter which were partially offset by production losses in
the third quarter due to Hurricane Harvey. Intermediate
chemicals results increased approximately $15 million, primarily due to a 2 cent per pound improvement in styrene
margins. Volumes declined for most intermediate
chemicals except for an increase in methanol volumes due to the
completion of second quarter planned maintenance. Oxyfuels
and related products results increased by approximately
$25 million primarily due to
increased volumes from the completion of planned maintenance at
Botlek. Joint venture equity income increased by $4 million.
Three months ended September 30,
2017 versus three months ended September 30, 2016 – EBITDA increased
$98 million versus the third quarter
2016. PO and derivatives results increased by approximately
$35 million as both margins and
volumes improved. Intermediate chemicals results increased by
approximately $85 million
primarily due to margin improvements in styrene, methanol
and ethylene glycol which more than offset volume declines
related to Hurricane Harvey. Oxyfuels and related products
results declined by approximately $20
million primarily due to hurricane related production
losses. Joint venture equity income was relatively
unchanged.
Refining – The primary products of this segment
include gasoline and distillates, including diesel fuel, heating
oil and jet fuel.
Table 5 - Refining
Financial Overview
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
September
30,
|
June
30,
|
September
30,
|
September
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
loss
|
$10
|
($21)
|
($56)
|
($81)
|
($139)
|
|
EBITDA
|
58
|
25
|
(10)
|
53
|
(9)
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2017 versus three months ended June
30, 2017 – EBITDA increased $33
million versus the second quarter 2017. The
Houston refinery operated at
240,000 barrels per day, 25,000 barrels per day less than the prior
quarter due to reduced rates as a result of Hurricane Harvey.
A $2.27 increase in the Maya 2-1-1 to
$21.81 was partially offset by
unfavorable heavy to light differentials on by-product margins.
Three months ended September 30,
2017 versus three months ended September 30, 2016 – EBITDA increased
$68 million versus the third quarter
2016. Third quarter 2017 throughput increased by 31,000
barrels per day with operational disruptions in the third quarter
of 2016 exceeding reduced rates in the third quarter 2017 due to
Hurricane Harvey. A $2.83
increase in the Maya 2-1-1 to $21.81
was partially offset by unfavorable heavy to light differentials on
by-product margins.
Technology Segment – Our Technology segment develops and
licenses chemical and polyolefin process technologies and
manufactures and sells polyolefin catalysts.
Table 6 -
Technology Financial Overview
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
|
September
30,
|
June
30,
|
September
30,
|
September
30,
|
|
Millions of
U.S. dollars
|
2017
|
2017
|
2016
|
2017
|
2016
|
|
Operating
income
|
$36
|
$39
|
$35
|
$125
|
$170
|
|
EBITDA
|
47
|
48
|
45
|
155
|
201
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
2017 versus three months ended June
30, 2017 – EBITDA decreased by $1
million versus the second quarter 2017.
Three months ended September 30,
2017 versus three months ended September 30, 2016 – EBITDA increased by
$2 million versus the third quarter
2016.
Capital Spending and Cash Balances
Capital expenditures, including growth projects, maintenance
turnarounds, catalyst and information technology-related
expenditures, were $318 million
during the third quarter 2017. Our cash and liquid investment
balance was $3.1 billion at
September 30, 2017. We
repurchased 3.1 million shares during the third quarter 2017,
leaving 394 million common shares outstanding as of September 30, 2017. The company paid
dividends of $356 million during the
third quarter of 2017.
CONFERENCE CALL
LyondellBasell will host a conference
call October 27 at 11 a.m. EDT. Participants on the call will
include Chief Executive Officer Bob
Patel, Executive Vice President and Chief Financial Officer
Thomas Aebischer and Director of
Investor Relations David Kinney.
The toll-free dial-in number in the U.S. is 800-475-8402. A
complete listing of toll-free numbers by country is available at
www.lyb.com/teleconference for international callers. The pass code
for all numbers is 6934553.
The slides and webcast that accompany the call will be available
at www.lyb.com/earnings.
A replay of the call will be available from 2 p.m. EDT October
27 until November 27 at
11:59 p.m. EST. The replay
dial-in numbers are 866-448-2572 (U.S.) and 203-369-1168
(international). The pass code for each is 2526.
ABOUT LYONDELLBASELL
LyondellBasell (NYSE: LYB) is one
of the largest plastics, chemicals and refining companies in the
world. Driven by its 13,000 employees around the globe,
LyondellBasell produces materials and products that are key to
advancing solutions to modern challenges like enhancing food safety
through lightweight and flexible packaging, protecting the purity
of water supplies through stronger and more versatile pipes, and
improving the safety, comfort and fuel efficiency of many of the
cars and trucks on the road. LyondellBasell sells products into
approximately 100 countries and is the world's largest licensor of
polyolefin and polypropylene technologies. More information about
LyondellBasell can be found at www.lyondellbasell.com.
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, 2016, which can be found
at www.lyondellbasell.com on the Investor Relations page and on the
Securities and Exchange Commission's website at www.sec.gov.
INFORMATION RELATED TO FINANCIAL MEASURES
This 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.
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.
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.
Table 7 -
Reconciliation of Segment Information to Consolidated Financial
Information (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
|
Sales and other
operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
2,115
|
|
$
|
2,211
|
|
$
|
2,342
|
|
$
|
2,409
|
|
$
|
9,077
|
|
$
|
2,604
|
|
$
|
2,547
|
|
$
|
2,449
|
|
$
|
7,600
|
|
|
Olefins &
Polyolefins - EAI
|
|
2,578
|
|
|
2,721
|
|
|
2,634
|
|
|
2,646
|
|
|
10,579
|
|
|
3,024
|
|
|
3,008
|
|
|
3,152
|
|
|
9,184
|
|
|
Intermediates &
Derivatives
|
|
1,702
|
|
|
1,769
|
|
|
1,805
|
|
|
1,950
|
|
|
7,226
|
|
|
2,150
|
|
|
2,014
|
|
|
2,077
|
|
|
6,241
|
|
|
Refining
|
|
955
|
|
|
1,289
|
|
|
1,330
|
|
|
1,561
|
|
|
5,135
|
|
|
1,353
|
|
|
1,713
|
|
|
1,670
|
|
|
4,736
|
|
|
Technology
|
|
132
|
|
|
129
|
|
|
102
|
|
|
116
|
|
|
479
|
|
|
120
|
|
|
107
|
|
|
98
|
|
|
325
|
|
|
Other/elims
|
|
(739)
|
|
|
(791)
|
|
|
(848)
|
|
|
(935)
|
|
|
(3,313)
|
|
|
(821)
|
|
|
(986)
|
|
|
(930)
|
|
|
(2,737)
|
|
|
|
Continuing
Operations
|
|
$
|
6,743
|
|
$
|
7,328
|
|
$
|
7,365
|
|
$
|
7,747
|
|
$
|
29,183
|
|
$
|
8,430
|
|
$
|
8,403
|
|
$
|
8,516
|
|
$
|
25,349
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
707
|
|
$
|
646
|
|
$
|
582
|
|
$
|
458
|
|
$
|
2,393
|
|
$
|
559
|
|
$
|
738
|
|
$
|
497
|
|
$
|
1,794
|
|
|
Olefins &
Polyolefins - EAI
|
|
358
|
|
|
423
|
|
|
447
|
|
|
266
|
|
|
1,494
|
|
|
401
|
|
|
549
|
|
|
460
|
|
|
1,410
|
|
|
Intermediates &
Derivatives
|
|
255
|
|
|
327
|
|
|
240
|
|
|
236
|
|
|
1,058
|
|
|
269
|
|
|
270
|
|
|
329
|
|
|
868
|
|
|
Refining
|
|
(30)
|
|
|
(53)
|
|
|
(56)
|
|
|
40
|
|
|
(99)
|
|
|
(70)
|
|
|
(21)
|
|
|
10
|
|
|
(81)
|
|
|
Technology
|
|
73
|
|
|
62
|
|
|
35
|
|
|
51
|
|
|
221
|
|
|
50
|
|
|
39
|
|
|
36
|
|
|
125
|
|
|
Other
|
|
(3)
|
|
|
(2)
|
|
|
1
|
|
|
(3)
|
|
|
(7)
|
|
|
1
|
|
|
2
|
|
|
- -
|
|
|
3
|
|
|
|
Continuing
Operations
|
$
|
1,360
|
|
$
|
1,403
|
|
$
|
1,249
|
|
$
|
1,048
|
|
$
|
5,060
|
|
$
|
1,210
|
|
$
|
1,577
|
|
$
|
1,332
|
|
$
|
4,119
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
90
|
|
$
|
88
|
|
$
|
87
|
|
$
|
97
|
|
$
|
362
|
|
$
|
118
|
|
$
|
107
|
|
$
|
105
|
|
$
|
330
|
|
|
Olefins &
Polyolefins - EAI
|
|
55
|
|
|
58
|
|
|
58
|
|
|
58
|
|
|
229
|
|
|
59
|
|
|
58
|
|
|
60
|
|
|
177
|
|
|
Intermediates &
Derivatives
|
|
70
|
|
|
69
|
|
|
62
|
|
|
68
|
|
|
269
|
|
|
69
|
|
|
68
|
|
|
69
|
|
|
206
|
|
|
Refining
|
|
43
|
|
|
40
|
|
|
40
|
|
|
40
|
|
|
163
|
|
|
40
|
|
|
44
|
|
|
49
|
|
|
133
|
|
|
Technology
|
|
10
|
|
|
11
|
|
|
10
|
|
|
10
|
|
|
41
|
|
|
10
|
|
|
9
|
|
|
11
|
|
|
30
|
|
|
|
Continuing
Operations
|
$
|
268
|
|
$
|
266
|
|
$
|
257
|
|
$
|
273
|
|
$
|
1,064
|
|
$
|
296
|
|
$
|
286
|
|
$
|
294
|
|
$
|
876
|
|
EBITDA:
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
878
|
|
$
|
754
|
|
$
|
682
|
|
$
|
563
|
|
$
|
2,877
|
|
$
|
723
|
|
$
|
859
|
|
$
|
616
|
|
$
|
2,198
|
|
|
Olefins &
Polyolefins - EAI
|
|
509
|
|
|
576
|
|
|
584
|
|
|
398
|
|
|
2,067
|
|
|
529
|
|
|
699
|
|
|
698
|
|
|
1,926
|
|
|
Intermediates &
Derivatives
|
|
326
|
|
|
397
|
|
|
304
|
|
|
306
|
|
|
1,333
|
|
|
339
|
|
|
339
|
|
|
402
|
|
|
1,080
|
|
|
Refining
|
|
14
|
|
|
(13)
|
|
|
(10)
|
|
|
81
|
|
|
72
|
|
|
(30)
|
|
|
25
|
|
|
58
|
|
|
53
|
|
|
Technology
|
|
83
|
|
|
73
|
|
|
45
|
|
|
61
|
|
|
262
|
|
|
60
|
|
|
48
|
|
|
47
|
|
|
155
|
|
|
Other
|
|
(3)
|
|
|
(4)
|
|
|
1
|
|
|
(3)
|
|
|
(9)
|
|
|
(4)
|
|
|
- -
|
|
|
- -
|
|
|
(4)
|
|
|
|
Continuing
Operations
|
$
|
1,807
|
|
$
|
1,783
|
|
$
|
1,606
|
|
$
|
1,406
|
|
$
|
6,602
|
|
$
|
1,617
|
|
$
|
1,970
|
|
$
|
1,821
|
|
$
|
5,408
|
|
Capital,
turnarounds and IT deferred spending:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins &
Polyolefins - Americas
|
$
|
303
|
|
$
|
339
|
|
$
|
384
|
|
$
|
350
|
|
$
|
1,376
|
|
$
|
202
|
|
$
|
179
|
|
$
|
165
|
|
$
|
546
|
|
|
Olefins &
Polyolefins - EAI
|
|
81
|
|
|
60
|
|
|
48
|
|
|
72
|
|
|
261
|
|
|
47
|
|
|
32
|
|
|
44
|
|
|
123
|
|
|
Intermediates &
Derivatives
|
|
76
|
|
|
80
|
|
|
90
|
|
|
87
|
|
|
333
|
|
|
77
|
|
|
107
|
|
|
79
|
|
|
263
|
|
|
Refining
|
|
57
|
|
|
71
|
|
|
51
|
|
|
45
|
|
|
224
|
|
|
84
|
|
|
79
|
|
|
21
|
|
|
184
|
|
|
Technology
|
|
6
|
|
|
9
|
|
|
9
|
|
|
12
|
|
|
36
|
|
|
7
|
|
|
6
|
|
|
8
|
|
|
21
|
|
|
Other
|
|
4
|
|
|
4
|
|
|
4
|
|
|
1
|
|
|
13
|
|
|
4
|
|
|
4
|
|
|
1
|
|
|
9
|
|
|
|
Continuing
Operations
|
$
|
527
|
|
$
|
563
|
|
$
|
586
|
|
$
|
567
|
|
$
|
2,243
|
|
$
|
421
|
|
$
|
407
|
|
$
|
318
|
|
$
|
1,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
EBITDA for the first
quarter of 2016 includes a pre-tax lower of cost or market
inventory valuation ("LCM") charge of $68 million and a $78 million
pre-tax-gain on the sale of our
wholly owned Argentine subsidiary. Second quarter 2016 EBITDA
includes a pre-tax LCM benefit of $68 million for the reversal of
the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth
quarter 2016 EBITDA also includes a pre-tax LCM charge of $29
million.
|
(b)
|
See Table 8 for
EBITDA calculation.
|
Table 8 - EBITDA
Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income(a)
|
$
|
1,030
|
|
$
|
1,091
|
|
$
|
953
|
|
$
|
763
|
|
$
|
3,837
|
|
$
|
797
|
|
$
|
1,130
|
|
$
|
1,056
|
|
$
|
2,983
|
|
Loss from
discontinued operations, net of tax
|
|
- -
|
|
|
1
|
|
|
2
|
|
|
7
|
|
|
10
|
|
|
8
|
|
|
4
|
|
|
2
|
|
|
14
|
|
Income from
continuing operations(a)
|
|
1,030
|
|
|
1,092
|
|
|
955
|
|
|
770
|
|
|
3,847
|
|
|
805
|
|
|
1,134
|
|
|
1,058
|
|
|
2,997
|
|
|
Provision for income
taxes
|
|
432
|
|
|
346
|
|
|
326
|
|
|
282
|
|
|
1,386
|
|
|
315
|
|
|
459
|
|
|
380
|
|
|
1,154
|
|
|
Depreciation and
amortization
|
|
268
|
|
|
266
|
|
|
257
|
|
|
273
|
|
|
1,064
|
|
|
296
|
|
|
286
|
|
|
294
|
|
|
876
|
|
|
Interest expense,
net(b)
|
|
77
|
|
|
79
|
|
|
68
|
|
|
81
|
|
|
305
|
|
|
201
|
|
|
91
|
|
|
89
|
|
|
381
|
|
EBITDA(c)
|
$
|
1,807
|
|
$
|
1,783
|
|
$
|
1,606
|
|
$
|
1,406
|
|
$
|
6,602
|
|
$
|
1,617
|
|
$
|
1,970
|
|
$
|
1,821
|
|
$
|
5,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The first quarter of
2016 includes an after-tax LCM charge of $47 million and a $78
million after-tax gain related to the sale of our wholly owned
Argentine subsidiary. The second quarter of 2016 includes an
after-tax benefit of $47 million for the reversal of the first
quarter 2016 LCM adjustment due to price recoveries during the
period. Fourth quarter 2016 also includes an $18 million after-tax
LCM charge. The third quarter of 2017 includes an after-tax gain of
$103 million on the sale of our interest in Geosel.
|
(b)
|
Includes pre-tax
charges totaling $113 million in the first quarter of 2017 related
to the repayment of $1,000 million aggregate principal amount of
our outstanding 5% senior notes due 2019.
|
(c)
|
The first quarter of
2016 includes a pre-tax LCM charge of $68 million and a pre-tax
gain of $78 million on the sale of our wholly owned Argentine
subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM
benefit of $68 million for the reversal of the first quarter 2016
LCM adjustment. Fourth quarter 2016 also includes a pre-tax
LCM charge of $29 million. Third quarter 2017 EBITDA includes a
pre-tax gain of $108 million on the sale of our interest in
Geosel.
|
Table 9 - Selected
Segment Operating Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
Olefins and
Polyolefins - Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene
produced
|
|
2,392
|
|
1,899
|
|
1,939
|
|
2,173
|
|
8,403
|
|
2,486
|
|
2,606
|
|
2,088
|
|
7,180
|
|
|
Propylene
produced
|
|
832
|
|
748
|
|
575
|
|
660
|
|
2,815
|
|
597
|
|
821
|
|
671
|
|
2,089
|
|
|
Polyethylene
sold
|
|
1,554
|
|
1,426
|
|
1,517
|
|
1,485
|
|
5,982
|
|
1,533
|
|
1,404
|
|
1,454
|
|
4,391
|
|
|
Polypropylene
sold
|
|
612
|
|
582
|
|
659
|
|
623
|
|
2,476
|
|
644
|
|
634
|
|
624
|
|
1,902
|
|
Benchmark Market
Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Texas
Intermediate crude oil (USD per barrel)
|
|
33.63
|
|
46.01
|
|
44.94
|
|
49.29
|
|
43.56
|
|
51.78
|
|
48.15
|
|
48.20
|
|
49.36
|
|
|
Light Louisiana Sweet
("LLS") crude oil (USD per barrel)
|
|
35.34
|
|
47.39
|
|
46.52
|
|
50.60
|
|
45.03
|
|
53.39
|
|
50.17
|
|
51.67
|
|
51.73
|
|
|
Houston Ship Channel
natural gas (USD per million BTUs)
|
|
1.93
|
|
2.06
|
|
2.79
|
|
3.01
|
|
2.45
|
|
2.96
|
|
3.14
|
|
2.92
|
|
3.01
|
|
|
U.S. weighted average
cost of ethylene production (cents/pound)
|
|
9.8
|
|
12.0
|
|
10.6
|
|
14.3
|
|
11.7
|
|
11.8
|
|
12.5
|
|
16.1
|
|
13.5
|
|
|
U.S. ethylene
(cents/pound)
|
|
26.7
|
|
30.3
|
|
33.0
|
|
32.7
|
|
30.7
|
|
33.1
|
|
31.9
|
|
31.9
|
|
32.3
|
|
|
U.S. polyethylene
[high density] (cents/pound)
|
|
52.3
|
|
59.0
|
|
60.7
|
|
58.3
|
|
57.6
|
|
57.3
|
|
59.0
|
|
60.7
|
|
59.0
|
|
|
U.S. propylene
(cents/pound)
|
|
31.0
|
|
32.7
|
|
37.8
|
|
36.2
|
|
34.4
|
|
47.2
|
|
41.0
|
|
41.7
|
|
43.3
|
|
|
U.S. polypropylene
[homopolymer] (cents/pound)
|
|
67.8
|
|
61.7
|
|
60.2
|
|
55.8
|
|
61.4
|
|
66.2
|
|
59.0
|
|
60.2
|
|
61.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Olefins and
Polyolefins - Europe, Asia, International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene
produced
|
|
950
|
|
941
|
|
1,066
|
|
946
|
|
3,903
|
|
1,022
|
|
1,069
|
|
1,046
|
|
3,137
|
|
|
Propylene
produced
|
|
555
|
|
577
|
|
649
|
|
563
|
|
2,344
|
|
598
|
|
632
|
|
620
|
|
1,850
|
|
|
Polyethylene
sold
|
|
1,434
|
|
1,386
|
|
1,315
|
|
1,330
|
|
5,465
|
|
1,421
|
|
1,370
|
|
1,525
|
|
4,316
|
|
|
Polypropylene
sold
|
|
1,773
|
|
1,617
|
|
1,509
|
|
1,582
|
|
6,481
|
|
1,714
|
|
1,530
|
|
1,738
|
|
4,982
|
|
Benchmark Market
Prices (€0.01 per pound)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western Europe
weighted average cost of ethylene production
|
|
16.3
|
|
21.2
|
|
17.9
|
|
23.8
|
|
19.8
|
|
22.7
|
|
17.6
|
|
18.9
|
|
19.7
|
|
|
Western Europe
ethylene
|
|
38.4
|
|
41.1
|
|
42.3
|
|
43.1
|
|
41.2
|
|
46.2
|
|
47.1
|
|
44.2
|
|
45.8
|
|
|
Western Europe
polyethylene [high density]
|
|
55.4
|
|
57.6
|
|
55.7
|
|
55.2
|
|
56.0
|
|
58.2
|
|
59.5
|
|
56.6
|
|
58.1
|
|
|
Western Europe
propylene
|
|
26.3
|
|
28.8
|
|
30.7
|
|
33.3
|
|
29.8
|
|
37.0
|
|
39.3
|
|
36.4
|
|
37.6
|
|
|
Western Europe
polypropylene [homopolymer]
|
|
46.5
|
|
49.5
|
|
49.5
|
|
51.7
|
|
49.3
|
|
56.3
|
|
60.1
|
|
57.4
|
|
58.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediates and
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (million
pounds unless otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propylene oxide and
derivatives
|
|
793
|
|
743
|
|
752
|
|
749
|
|
3,037
|
|
786
|
|
748
|
|
793
|
|
2,327
|
|
|
Intermediate
Chemicals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethylene oxide and
derivatives
|
|
301
|
|
233
|
|
224
|
|
329
|
|
1,087
|
|
292
|
|
297
|
|
275
|
|
864
|
|
|
|
Styrene
monomer
|
|
917
|
|
933
|
|
911
|
|
933
|
|
3,694
|
|
992
|
|
924
|
|
845
|
|
2,761
|
|
|
|
Acetyls
|
|
702
|
|
821
|
|
751
|
|
776
|
|
3,050
|
|
825
|
|
672
|
|
715
|
|
2,212
|
|
|
Oxyfuels and Related
Products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TBA
Intermediates
|
|
415
|
|
391
|
|
410
|
|
361
|
|
1,577
|
|
383
|
|
332
|
|
359
|
|
1,074
|
|
|
|
MTBE/ETBE (million
gallons)
|
|
270
|
|
278
|
|
298
|
|
264
|
|
1,110
|
|
239
|
|
263
|
|
289
|
|
791
|
|
Benchmark Market
Margins (cents per gallon)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MTBE - Northwest
Europe
|
|
44.4
|
|
78.7
|
|
55.3
|
|
50.6
|
|
57.2
|
|
49.5
|
|
67.3
|
|
59.8
|
|
58.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes (thousands
of barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heavy crude oil
processing rate
|
|
186
|
|
183
|
|
209
|
|
228
|
|
201
|
|
193
|
|
265
|
|
240
|
|
233
|
|
Benchmark Market
Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light crude oil -
2-1-1
|
|
8.67
|
|
11.52
|
|
11.46
|
|
11.20
|
|
10.73
|
|
11.86
|
|
13.26
|
|
16.71
|
|
13.94
|
|
|
Light crude oil -
Maya differential
|
|
9.19
|
|
9.55
|
|
7.52
|
|
7.80
|
|
8.51
|
|
8.78
|
|
6.28
|
|
5.10
|
|
6.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
Benchmark market
prices for U.S. and Western Europe polyethylene and polypropylene
reflect discounted prices. Volumes presented represent third party
sales of selected key products.
|
Table 10 -
Unaudited Income Statement Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other
operating revenues
|
$
|
6,743
|
|
$
|
7,328
|
|
$
|
7,365
|
|
$
|
7,747
|
|
$
|
29,183
|
|
$
|
8,430
|
|
$
|
8,403
|
|
$
|
8,516
|
|
$
|
25,349
|
|
Cost of
sales(a)
|
|
5,166
|
|
|
5,702
|
|
|
5,903
|
|
|
6,420
|
|
|
23,191
|
|
|
6,991
|
|
|
6,601
|
|
|
6,939
|
|
|
20,531
|
|
Selling, general and
administrative expenses
|
|
193
|
|
|
199
|
|
|
188
|
|
|
253
|
|
|
833
|
|
|
204
|
|
|
200
|
|
|
218
|
|
|
622
|
|
Research and
development expenses
|
|
24
|
|
|
24
|
|
|
25
|
|
|
26
|
|
|
99
|
|
|
25
|
|
|
25
|
|
|
27
|
|
|
77
|
|
|
Operating
income(a)
|
|
1,360
|
|
|
1,403
|
|
|
1,249
|
|
|
1,048
|
|
|
5,060
|
|
|
1,210
|
|
|
1,577
|
|
|
1,332
|
|
|
4,119
|
|
Income from equity
investments
|
|
91
|
|
|
117
|
|
|
81
|
|
|
78
|
|
|
367
|
|
|
81
|
|
|
78
|
|
|
81
|
|
|
240
|
|
Interest expense,
net(b)
|
|
(77)
|
|
|
(79)
|
|
|
(68)
|
|
|
(81)
|
|
|
(305)
|
|
|
(201)
|
|
|
(91)
|
|
|
(89)
|
|
|
(381)
|
|
Other income
(expense), net(c)
|
|
88
|
|
|
(3)
|
|
|
19
|
|
|
7
|
|
|
111
|
|
|
30
|
|
|
29
|
|
|
114
|
|
|
173
|
|
|
Income from
continuing operations before income taxes(a) (b)
(c)
|
|
1,462
|
|
|
1,438
|
|
|
1,281
|
|
|
1,052
|
|
|
5,233
|
|
|
1,120
|
|
|
1,593
|
|
|
1,438
|
|
|
4,151
|
|
Provision for income
taxes
|
|
432
|
|
|
346
|
|
|
326
|
|
|
282
|
|
|
1,386
|
|
|
315
|
|
|
459
|
|
|
380
|
|
|
1,154
|
|
|
Income from
continuing operations(d)
|
|
1,030
|
|
|
1,092
|
|
|
955
|
|
|
770
|
|
|
3,847
|
|
|
805
|
|
|
1,134
|
|
|
1,058
|
|
|
2,997
|
|
Loss from
discontinued operations, net of tax
|
|
- -
|
|
|
(1)
|
|
|
(2)
|
|
|
(7)
|
|
|
(10)
|
|
|
(8)
|
|
|
(4)
|
|
|
(2)
|
|
|
(14)
|
|
|
|
Net
income(d)
|
|
1,030
|
|
|
1,091
|
|
|
953
|
|
|
763
|
|
|
3,837
|
|
|
797
|
|
|
1,130
|
|
|
1,056
|
|
|
2,983
|
|
Net (income) loss
attributable to non-controlling interests
|
|
- -
|
|
|
- -
|
|
|
(1)
|
|
|
- -
|
|
|
(1)
|
|
|
- -
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
|
Net income
attributable to the Company
shareholders(d)
|
$
|
1,030
|
|
$
|
1,091
|
|
$
|
952
|
|
$
|
763
|
|
$
|
3,836
|
|
$
|
797
|
|
$
|
1,131
|
|
$
|
1,057
|
|
$
|
2,985
|
|
|
|
(a)
|
Amounts presented
herein include pre-tax LCM charges of $68 million and $29 million
in the first and fourth quarters of 2016, respectively. A pre-tax
benefit of
$68 million in the second quarter of 2016 reflects the reversal of
the first quarter 2016 LCM adjustment due to price recoveries
during the period.
|
(b)
|
Includes pre-tax
charges totaling $113 million in the first quarter of 2017 related
to the repayment of $1,000 million aggregate principal amount of
our outstanding 5% senior notes due 2019.
|
(c)
|
Includes a $78
million gain in the first quarter of 2016 on the sale of our wholly
owned Argentine subsidiary; a pre-tax gain of $31 million in the
first quarter of 2017 on the sale of our Lake Charles, Louisiana
site currently used as a logistics terminal; and a pre-tax gain of
$108 million in the third quarter of 2017 on the sale of our
interest in Geosel.
|
(d)
|
Amounts presented
herein include after-tax LCM charges of $47 million and $18 million
in the first and fourth quarters of 2016, respectively. The second
quarter of 2016 includes an after-tax benefit of $47 million for
the partial reversal of the first quarter 2016 LCM adjustment
resulting from price recoveries during the period. The first
quarter of 2016 also includes a $78 million gain on the sale of our
wholly owned Argentine subsidiary. The first quarter of 2017
includes after-tax charges totaling $106 million related to the
repayment of $1,000 million aggregate principal amount of our
outstanding 5% senior notes due 2019. The third quarter of 2017
includes a $103 million after-tax gain for sale of our interest in
Geosel.
|
Table 11 - Charges
(Benefits) Included in Income from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of U.S.
dollars (except share data)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Impact
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YTD
|
Pretax charges
(benefits):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and premiums
related to repayment of debt
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
113
|
|
$
|
- -
|
|
$
|
- -
|
|
$
|
113
|
|
Out of period tax
adjustment
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
61
|
|
|
74
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Gain on sale of
wholly owned subsidiary
|
|
(78)
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
(78)
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Lower of cost or
market inventory adjustment
|
|
68
|
|
|
(68)
|
|
|
- -
|
|
|
29
|
|
|
29
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Pension settlement
charge
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
58
|
|
|
58
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
Gain on sale of
Geosel
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
- -
|
|
|
(108)
|
|
|
(108)
|
Total pretax charges
(benefits)
|
|
(10)
|
|
|
(68)
|
|
|
- -
|
|
|
148
|
|
|
83
|
|
|
113
|
|
|
- -
|
|
|
(108)
|
|
|
5
|
Provision for
(benefit from) income tax related to these items
|
|
(21)
|
|
|
21
|
|
|
- -
|
|
|
(32)
|
|
|
(32)
|
|
|
(7)
|
|
|
- -
|
|
|
5
|
|
|
(2)
|
After-tax effect of
net charges (benefits)
|
$
|
(31)
|
|
$
|
(47)
|
|
$
|
- -
|
|
$
|
116
|
|
$
|
51
|
|
$
|
106
|
|
$
|
- -
|
|
$
|
(103)
|
|
$
|
3
|
Effect on diluted
earnings per share
|
$
|
0.07
|
|
$
|
0.11
|
|
$
|
- -
|
|
$
|
(0.29)
|
|
$
|
(0.12)
|
|
$
|
(0.26)
|
|
$
|
- -
|
|
$
|
0.26
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
Table 12 -
Unaudited Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2017
|
|
(Millions of U.S.
dollars)
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
Q1
|
|
|
Q2
|
|
|
Q3
|
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities(a)
|
$
|
1,300
|
|
$
|
1,261
|
|
$
|
1,332
|
|
$
|
1,713
|
|
$
|
5,606
|
|
$
|
678
|
|
$
|
1,560
|
|
$
|
1,486
|
|
$
|
3,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities(b)
|
|
(600)
|
|
|
(471)
|
|
|
(459)
|
|
|
(771)
|
|
|
(2,301)
|
|
|
(541)
|
|
|
(513)
|
|
|
(200)
|
|
|
(1,254)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities (a)
|
|
(333)
|
|
|
(1,039)
|
|
|
(1,195)
|
|
|
(782)
|
|
|
(3,349)
|
|
|
(537)
|
|
|
(822)
|
|
|
(832)
|
|
|
(2,191)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
In the second quarter
of 2017, the early adoption of ASU 2016-15, Statement of Cash
Flows (Topic 230): Classification of Certain Cash Receipts and Cash
Payments resulted in the reclassification of cash flows related
to debt extinguishment costs incurred in the first quarter of 2017
from operating to financing activities cash flows.
|
(b)
|
Also in the second
quarter of 2017, the early retrospective adoption of ASU 2016-18,
Statement of Cash Flows: Restricted Cash requires the
inclusion of restricted cash and restricted cash equivalents in the
cash and cash equivalents balances in our Statements of Cash
Flows.
|
Table 13 -
Unaudited Balance Sheet Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
(Millions of U.S.
dollars)
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2017
|
|
2017
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,318
|
|
$
|
1,060
|
|
$
|
740
|
|
$
|
875
|
|
$
|
485
|
|
$
|
734
|
|
$
|
1,204
|
|
Restricted
cash
|
|
4
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
6
|
|
|
7
|
|
Short-term
investments
|
|
1,332
|
|
|
1,023
|
|
|
1,090
|
|
|
1,147
|
|
|
1,176
|
|
|
1,278
|
|
|
1,295
|
|
Accounts receivable,
net
|
|
2,683
|
|
|
2,806
|
|
|
2,852
|
|
|
2,842
|
|
|
3,292
|
|
|
3,086
|
|
|
3,275
|
|
Inventories
|
|
3,978
|
|
|
4,009
|
|
|
4,015
|
|
|
3,809
|
|
|
3,875
|
|
|
4,007
|
|
|
4,177
|
|
Prepaid expenses and
other current assets
|
|
1,009
|
|
|
1,081
|
|
|
852
|
|
|
923
|
|
|
852
|
|
|
964
|
|
|
1,104
|
|
|
Total current
assets
|
|
10,324
|
|
|
9,983
|
|
|
9,553
|
|
|
9,599
|
|
|
9,681
|
|
|
10,075
|
|
|
11,062
|
|
Property, plant and
equipment, net
|
|
9,373
|
|
|
9,681
|
|
|
10,057
|
|
|
10,137
|
|
|
10,361
|
|
|
10,551
|
|
|
10,737
|
|
Investments and
long-term receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in PO
joint ventures
|
|
398
|
|
|
390
|
|
|
399
|
|
|
415
|
|
|
409
|
|
|
423
|
|
|
428
|
|
|
Equity
investments
|
|
1,734
|
|
|
1,610
|
|
|
1,681
|
|
|
1,575
|
|
|
1,672
|
|
|
1,595
|
|
|
1,644
|
|
|
Other investments and
long-term receivables
|
|
18
|
|
|
18
|
|
|
17
|
|
|
20
|
|
|
20
|
|
|
18
|
|
|
19
|
|
Goodwill
|
|
548
|
|
|
542
|
|
|
543
|
|
|
528
|
|
|
531
|
|
|
559
|
|
|
570
|
|
Intangible assets,
net
|
|
618
|
|
|
588
|
|
|
562
|
|
|
550
|
|
|
517
|
|
|
499
|
|
|
480
|
|
Other
assets
|
|
559
|
|
|
623
|
|
|
607
|
|
|
618
|
|
|
577
|
|
|
398
|
|
|
303
|
|
|
Total
assets
|
$
|
23,572
|
|
$
|
23,435
|
|
$
|
23,419
|
|
$
|
23,442
|
|
$
|
23,768
|
|
$
|
24,118
|
|
$
|
25,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
$
|
4
|
|
$
|
4
|
|
$
|
3
|
|
$
|
2
|
|
$
|
2
|
|
$
|
2
|
|
$
|
3
|
|
Short-term
debt
|
|
594
|
|
|
616
|
|
|
621
|
|
|
594
|
|
|
611
|
|
|
561
|
|
|
381
|
|
Accounts
payable
|
|
2,243
|
|
|
2,357
|
|
|
2,329
|
|
|
2,529
|
|
|
2,627
|
|
|
2,317
|
|
|
2,735
|
|
Accrued
liabilities
|
|
1,600
|
|
|
1,374
|
|
|
1,357
|
|
|
1,415
|
|
|
1,139
|
|
|
1,251
|
|
|
1,493
|
|
|
Total current
liabilities
|
|
4,441
|
|
|
4,351
|
|
|
4,310
|
|
|
4,540
|
|
|
4,379
|
|
|
4,131
|
|
|
4,612
|
|
Long-term
debt
|
|
8,504
|
|
|
8,485
|
|
|
8,464
|
|
|
8,385
|
|
|
8,419
|
|
|
8,496
|
|
|
8,531
|
|
Other
liabilities
|
|
2,125
|
|
|
2,143
|
|
|
2,151
|
|
|
2,113
|
|
|
2,130
|
|
|
2,253
|
|
|
2,326
|
|
Deferred income
taxes
|
|
2,134
|
|
|
2,149
|
|
|
2,387
|
|
|
2,331
|
|
|
2,353
|
|
|
2,370
|
|
|
2,447
|
|
Stockholders'
equity
|
|
6,344
|
|
|
6,283
|
|
|
6,082
|
|
|
6,048
|
|
|
6,462
|
|
|
6,866
|
|
|
7,326
|
|
Non-controlling
interests
|
|
24
|
|
|
24
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
2
|
|
|
1
|
|
|
Total liabilities and
stockholders' equity
|
$
|
23,572
|
|
$
|
23,435
|
|
$
|
23,419
|
|
$
|
23,442
|
|
$
|
23,768
|
|
$
|
24,118
|
|
$
|
25,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE LyondellBasell Industries