LyondellBasell Segment Results in Q3
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.
| 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 | 2016 | 2016 | 2015 | 2016 | 2015 |
| Operating income | $240 | $327 | $403 | $822 | $1,079 |
| EBITDA | 304 | 397 | 460 | 1,027 | 1,263 |
| LCM charges (benefits), pre-tax | – – | (28) | 46 | – – | 107 |
| EBITDA excluding LCM adjustments | 304 | 369 | 506 | 1,027 | 1,370 |
Three months ended September 30, 2016 versus three months ended June 30, 2016 –EBITDA decreased $65 million versus the second quarter 2016, excluding an unfavorable $28 million quarter to quarter variance as a result of an LCM adjustment related to inventory. Results for PO and PO derivatives declined by approximately $15 million primarily due to declining margins. Intermediate chemicals results declined by approximately $60 million, primarily due to a styrene margin decline of approximately 3 cents per pound. Lower ethanol, ethylene oxide, and ethylene glycol results also contributed. Oxyfuels were relatively unchanged with sales volume increases offset by lower margins. Equity income from joint ventures was relatively unchanged.
Three months ended September 30, 2016 versus three months ended September 30, 2015 – EBITDA decreased $202 million versus the third quarter 2015, excluding a favorable $46 million quarter to quarter variance as a result of an LCM inventory adjustment. Results for PO and PO derivatives declined by approximately $50 million due to lower margins while volumes increased approximately 8 percent. Intermediate chemicals results declined by approximately $130 million primarily due to methanol, styrene, and ethylene glycol margins. Oxyfuels results decreased approximately $20 million relative to very strong third quarter 2015 margins. Equity income from joint ventures was unchanged.
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