LyondellBasell Q1 PO Results

LyondellBasell Reports First-Quarter 2016 Earnings

Intermediates & 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 March 31, 2016 versus three months ended December 31, 2015 – EBITDA increased $68 million versus the fourth quarter 2015, excluding a favorable $46 million quarter to quarter variance as a result of LCM adjustments related to inventory.  Results for PO and PO derivatives were relatively unchanged.  Intermediate chemicals results improved by approximately $80 million, primarily due to increased volumes for acetyls, isobutylene derivatives and ethylene oxide and derivatives due to the absence of fourth quarter maintenance and approximately 2 cents per pound margin improvement for styrene.  Oxyfuels results were relatively unchanged.  Equity income from joint ventures decreased by $4 million.

Three months ended March 31, 2016 versus three months ended March 31, 2015 – EBITDA decreased $27 million versus the first quarter 2015, excluding a favorable $16 million quarter to quarter variance as a result of LCM inventory adjustments.  Results for PO and PO derivatives decreased by approximately $10 million due to product mix and a weaker aircraft deicer season.  Intermediate chemicals results were relatively unchanged with higher methanol volumes and styrene margin improvements of approximately 2 cents per pound offset by approximately 30 cents per gallon lower methanol margins.  Oxyfuels decreased approximately $20 million primarily as a result of compression from the unseasonably high margins seen during the first quarter of 2015.  Equity income from joint ventures decreased by $5 million.

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