LyondellBasell Reports Record 2015 Earnings

HOUSTON and LONDON, Feb. 2, 2016 /PRNewswire/ —

2015 Full Year Highlights

• Record Earnings

–    Income from continuing operations: $4.5 billion ($4.8 billion excluding LCM¹)
–    Diluted earnings per share: $9.60 per share ($10.35 per share excluding LCM)
–    EBITDA: $7.5 billion ($8.1 billion excluding LCM)

• Advanced the Growth Program

–    Completed a 250 million pound ethylene expansion at Channelview, Texas, the third in a series of planned expansions targeted to increase our U.S. ethylene capacity by approximately 25%
–    Added over 120 million pounds of polypropylene compounds capacity

• Strong Cash Flow and Share Repurchases

–    Full year cash generation from operations totaled $5.8 billion
–    Share repurchases and dividends totaled $6.1 billion
–    Repurchased 52 million shares or approximately 11% of the shares outstanding on January 1, 2015

Fourth Quarter 2015 Highlights

• Income from continuing operations: $797 million ($982 million excluding LCM)
• Diluted Earnings per share: $1.78 per share ($2.20 per share excluding LCM)
• EBITDA: $1.4 billion ($1.7 billion excluding LCM)
• Share repurchases and dividends totaled $1.6 billion;  repurchased 12.7 million shares during the fourth quarter or approximately 3% of the shares outstanding on October 1, 2015

Comparisons with the prior quarter, fourth quarter 2014 and full year 2014 are available in the following table:

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2015 of $797 million, or $1.78 per share. Fourth quarter 2014 EBITDA was $1.4 billion.  The quarter included a $284 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($185 million after-tax).  Excluding the LCM adjustment, earnings from continuing operations during the fourth quarter totaled $982 million, or $2.20 per share and EBITDA was $1.7 billion.  Full year 2015 income from continuing operations was $4.5 billion, or $9.60 per share, and EBITDA was $7.5 billion. The full year included a non-cash, pre-tax LCM inventory adjustment of $548 million ($351 million after tax).  Excluding the LCM adjustment, earnings from continuing operations for the full year totaled $4.8 billion, or $10.35 per share, and EBITDA was $8.1 billion.

"During 2015, LyondellBasell generated record earnings, advanced our growth program, and continued returning cash to shareholders at an industry-leading rate.  Our company posted strong results, with record performance from our Olefins and Polyolefins – Europe, Asia and International, Intermediates and Derivatives, and Technology segments.  Despite the challenging oil and gas environment, LyondellBasell's performance remained focused and steady.  We continue to prove that we are capable of delivering strong results under a wide range of market conditions," said Bob Patel, LyondellBasell chief executive officer. 

"During 2015 we continued to implement and expand our strategic programs.  We completed a 250 million pound per year ethylene expansion and increased our polypropylene compounds capacity by 120 million pounds.  We also advanced additional value-enhancing projects including a propylene oxide and tertiary butyl alcohol facility, an ethylene expansion at our Corpus Christi plant and U.S. polyethylene capacity," continued Patel.

"Our cash generation continued to be very strong in 2015 and we returned cash to shareholders through share repurchases and dividends totaling approximately $6.1 billion.  Since initiating our dividend and share repurchases, we have paid approximately $9.2 billion in dividends and acquired approximately 25% of the then outstanding shares," Patel said.

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 (including methanol), ethylene oxide and its derivatives, and oxyfuels.

Three months ended December 31, 2015 versus three months ended September 30, 2015 – EBITDA decreased $220 million versus the record third quarter 2015, excluding an unfavorable $28 million quarter to quarter variance as a result of LCM inventory adjustments.  Results for PO and PO derivatives decreased approximately $10 million.  Intermediate chemicals results decreased by approximately $160 million, primarily due to declines in styrene and methanol margins and decreased acetyl volumes due to our extended La Porte turnaround.  Oxyfuels results decreased approximately $60 million with typical seasonal margin declines.  Equity income from joint ventures improved by $2 million.

Three months ended December 31, 2015 versus three months ended December 31, 2014 – EBITDA decreased $78 million versus the fourth quarter 2014, excluding a favorable $19 million quarter to quarter variance as a result of LCM inventory adjustments.  Results for PO and PO derivatives improved by approximately $35 million.  Intermediate chemicals results decreased by approximately $60 million driven by lower acetyls results from lower methanol margins and lower acetyl volumes as a result of our 2015 La Porte turnaround.  Oxyfuels decreased approximately $55 million primarily as a result of unseasonably high margins during the fourth quarter of 2014.  Equity income from joint ventures increased by $1 million.

Full year ended December 31, 2015 versus full year ended December 31, 2014 – The segment achieved record EBITDA for 2015.  EBITDA increased $104 million versus 2014, excluding an unfavorable $88 million year to year variance as a result of LCM inventory adjustments.  PO and PO derivatives results increased approximately $40 million due to slightly higher volumes.  Intermediate chemicals results improved by approximately $120 million due to improved styrene margins that were partially offset by lower methanol and vinyl acetate margins.  Oxyfuels results declined by approximately $60 million compared to the prior year as strong octane spreads over butane and 15% higher volumes partially offset a decline in gasoline prices.  Equity income from joint ventures increased by $7 million.

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