LyondellBasell PO Results

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.

Three months ended December 31, 2017 versus three months ended September 30, 2017 – EBITDA increased $8 million versus the third quarter 2017.  Fourth quarter results were impacted by a $17 million LIFO inventory charge.  PO and derivatives results increased approximately $35 million.  Volumes increased approximately 5% with the absence of Hurricane Harvey impacts and margins improved due to market tightness.  Intermediate chemicals results were relatively unchanged from the third quarter. Oxyfuels and related products results were relatively unchanged as seasonal margin declines were offset by volume improvements with the absence of hurricane losses during the third quarter.

Three months ended December 31, 2017 versus three months ended December 31, 2016 – EBITDA increased $104 million versus the fourth quarter 2016, which included a $16 million pension settlement.  Results for PO and derivatives and intermediate chemicals improved by approximately $120 million.  PO and derivatives volumes and margins improved as well as intermediate chemicals margins.  The gains in the PO and derivatives and intermediate chemicals businesses were offset by a net charge of approximately $35 million related to precious metal catalysts.  Oxyfuels and related products improved by approximately $10 million.

Full year ended December 31, 2017 versus full year ended December 31, 2016 – EBITDA increased $157 million versus 2016, which included a $16 million pension settlement.  EBITDA of approximately $1.5 billion for 2017 returned to the historical levels typically seen for the business.  PO and derivatives and intermediate chemicals results increased approximately $250 million primarily due to margin improvements.  The gains in the PO and derivatives and intermediate chemicals businesses were offset by approximately $50 million of higher charges related to precious metal catalysts.  Oxyfuels and related products results declined by approximately $60 million. Volumes were lower due to planned maintenance in 2017 and margins were reduced primarily due to higher butane pricing.

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