Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - LyondellBasell Industries N.V. | d344220d8k.htm |
| EX-99.1 - PRESS RELEASE - LyondellBasell Industries N.V. | d344220dex991.htm |
 Jim
Gallogly, Chief Executive Officer Karyn Ovelmen, Chief Financial Officer
Sergey Vasnetsov, SVP -
Strategic Planning and Transactions
Doug Pike, VP -
Investor Relations
April 30, 2012
First-Quarter 2012 Earnings
Exhibit 99.2 |
 lyondellbasell.com
Cautionary Statement
2
The information in this presentation includes forward-looking statements. These statements
relate to future events, such as anticipated revenues, earnings, business strategies, competitive
position or other aspects of our operations or operating results. Actual outcomes and results
may differ materially from what is expressed or forecast in such forward-looking statements.
These statements are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Factors that could cause actual
results to differ from forward-looking statements include, but are not limited to,
availability, cost and price volatility of raw materials and utilities; supply/demand balances;
industry production capacities and operating rates; uncertainties associated with worldwide
economies; legal, tax and environmental proceedings; cyclical nature of the chemical and refining
industries; operating interruptions; current and potential governmental regulatory actions;
terrorist acts; international political unrest; competitive products and pricing; technological
developments; the ability to comply with the terms of our credit facilities and other financing
arrangements; the ability to implement business strategies; and other factors affecting our
business generally as set forth in the “Risk Factors” section of our Form 10-K for
the year ended December 31, 2011, 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. This presentation contains time sensitive information
that is accurate only as of the date hereof. Information contained in this presentation is
unaudited and is subject to change. We undertake no obligation to update the information
presented herein except as required by law. |
 lyondellbasell.com
Information Related to Financial Measures
3
We have included EBITDA in this presentation, which is a non-GAAP measure, as we believe
that EBITDA is a measure commonly used by investors. However, 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. For purposes of this presentation,
EBITDA means earnings before interest, taxes, depreciation and amortization, as adjusted for
other items management does not believe are indicative of the Company’s underlying results
of operations such as impairment charges, reorganization items, the effect of mark-to-market
accounting on our warrants and current cost inventory adjustments. EBITDA also includes
dividends from joint ventures. 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. See Table 9 of our accompanying
earnings release for reconciliations of EBITDA to net income. While we also believe
that net debt is a measure commonly used by investors, net debt, 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. For purposes of this presentation, net debt means short-term
debt plus current maturities of long-term debt plus long-term debt minus cash and cash
equivalents and minus restricted cash. |
 lyondellbasell.com
500
1,000
1,500
$2,000
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
Highlights
Quarterly
EBITDA
Quarterly EBITDA increase of 131% from 4Q’11
($ in millions)
($ in millions, except per share data)
1Q'12
4Q'11
1Q'11
EBITDA
$1,236
$536
$1,402
Net Income / (Loss)
$599
($218)
$660
Diluted Earnings ($ / share)
$1.04
($0.38)
$1.15
Net Debt / LTM EBITDA
0.5x
0.6x
0.4x
4 |
 lyondellbasell.com
LyondellBasell Safety Performance
•
Continued good safety results
•
Significant Q1 contractor activity related
to maintenance turnarounds
0.0
0.1
0.2
0.3
0.4
0.5
2009
2010
2011
2012 YTD
Injuries per 200,000 Hours Worked
(1)
1)
Includes employees and contractors. YTD as of March 2012.
5 |
 lyondellbasell.com
500
1,000
1,500
2,000
$2,500
Olefins &
Polyolefins -
Americas
Olefins &
Polyolefins -
EAI
Intermediates
& Derivatives
Refining &
Oxyfuels
Technology
125
250
375
500
$625
Olefins &
Polyolefins -
Americas
Olefins &
Polyolefins -
EAI
Intermediates
& Derivatives
Refining &
Oxyfuels
Technology
March 2012 LTM EBITDA
LTM March EBITDA
$5,113 million
LTM Operating Income
$3,879 million
Q1’12 EBITDA
$1,236 million
Q1’12 Operating Income
$946 million
First-Quarter 2012 and Last-Twelve-Months (LTM)
Segment EBITDA
First-Quarter 2012 EBITDA
($ in millions)
($ in millions)
Note: Shaded area for Refining & Oxyfuels represents EBITDA adjusted for $136
million Berre charge add back. Charge was taken in Q4 2011 and is related to the suspension of operations at the refinery.
6 |
 lyondellbasell.com
$4,383
$1,679
0
2,000
4,000
6,000
8,000
$10,000
Q2'11
Begin.
Cash
Balance
CF from
Operations
excl.
Working
Capital
Working
Capital
Changes
Capex
Dividends
Net Debt
Repayment
Other
Q1'12
Ending
Cash
Balance
$1,118
$1,679
0
500
1,000
1,500
2,000
$2,500
Q1'12
Beginning
Cash
Balance
CF from
Operations
excl.
Working
Capital
Working
Capital
Changes
Capex
Dividends
Net Debt
Repayment
Other
Q1'12
Ending
Cash
Balance
Cash Flow
1)
Q1’12 beginning and ending cash balance includes cash, cash equivalents and
restricted cash. 2)
Includes inventories, accounts payable and accounts receivable.
3) Includes capital and maintenance turnaround spending.
(3)
(2)
(1)
($ in millions)
(2)
(3)
First-Quarter 2012
LTM March 2012
(3)
7
(1) |
 lyondellbasell.com
Working Capital and Key Financials Statistics
Snapshot at March 31, 2012
Liquidity: $4.1 billion
Debt: $4.0 billion
Cash: $1.7 billion
Net Debt/LTM EBITDA: 0.5x
1) Figures depicted represent end of quarter balances.
($ in billions)
Working Capital
(1)
Key Statistics
($6)
($4)
($2)
$0
$2
$4
$6
$8
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
Total WC
Inventory
AR
AP
8 |
 lyondellbasell.com
(10)
0
10
20
30
40
50
Ethane Margin
Naphtha Margin
HDPE Margin
Ethylene/HDPE Chain
Olefins & Polyolefins -
Americas
Highlights and Business Drivers -
1Q’12
U.S. Olefins
•
Ethylene price up 2¢/lb
•
COE down 10¢/lb
•
~82% of ethylene from NGLs
Polyethylene
•
Price up 6¢/lb
Polypropylene (includes Catalloy)
•
Modest margin improvement
Ethylene Chain Margins (per CMAI)
EBITDA
Performance vs. 4Q’11
Polypropylene Margins (per CMAI)
EBITDA
Margin
Volume
($ in millions)
(cents / lb)
(cents / lb)
0
1
2
3
4
1Q'11
4Q'11
1Q'12
Apr-12
1Q’11
4Q’11
1Q’12
Apr-12
200
400
600
$800
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
9 |
 lyondellbasell.com
(10)
0
10
20
30
40
50
1Q'11
4Q'11
1Q'12
Apr-12
HDPE Margin
Naphtha Margin
Ethylene/HDPE Chain
Olefins & Polyolefins -
Europe, Asia, International
Highlights and Business Drivers -
1Q’12
EU Olefins
•
Q1 EBITDA near breakeven
•
Price increases roughly offset by
naphtha margin
Polyethylene
•
Volume returns to Q3 level
Polypropylene (includes Catalloy)
•
PP compounds steady
JV dividends
•
Due to timing
European Ethylene Chain Margins (per CMAI)
EBITDA
Performance vs. 4Q’11
European Polypropylene Margins (per CMAI)
EBITDA
Margin
Volume
($ in millions)
(cents / lb)
(cents / lb)
100
200
300
$400
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
(6)
(4)
(2)
0
2
1Q'11
4Q'11
1Q'12
Apr-12
10 |
 lyondellbasell.com
Intermediates & Derivatives
Highlights and Business Drivers -
1Q’12
EBITDA
Propylene Oxide and Derivatives
•
Volumes up following Q4 turnaround
and year-end slowdown
Intermediates
•
Acetyls up following Q4 turnaround
•
TBA intermediates margin increase
•
Styrene margin decline
EBITDA
Margin
Volume
Performance vs. 4Q’11
($ in millions)
50
100
150
200
250
300
$350
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
11 |
 lyondellbasell.com
0
10
20
30
1Q'11
4Q'11
1Q'12
Apr-12
Lt-Hvy
Lt-Gasoline
Lt-Heating Oil
Refining & Oxyfuels
Highlights and Business Drivers -
1Q’12
Houston Refinery
•
Q1 crude throughput: 259 MBPD
•
Maya 2-1-1: $20.15 / bbl
Oxyfuels
•
Strong margins
•
Volumes are up following Q4
turnaround
Refining Spreads (per Platts)
(2)
EBITDA
(1)
Performance vs. 4Q’11
EU MTBE Raw Material Margins (per Platts)
EBITDA
Margin
Volume
($ in millions)
($ / bbl)
(cents / gallon)
150
300
450
$600
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
0
50
100
150
200
1Q'11
4Q'11
1Q'12
Apr-12
12
1)
Shaded
area
in
Q4
represents
EBITDA
adjusted
for
$136
million
Berre
charge
add
back.
2) Light Louisiana Sweet (LLS) is the referenced light crude.
|
 lyondellbasell.com
Benchmark Margins
U.S. Gulf Coast Spot Ethylene Margin
Maya 2-1-1 Crack Spread
(¢/lbs.)
($/barrel)
Sources:
CMAI and Platts.
13
0
15
30
45
60
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
0
8
16
24
32
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12 |
 lyondellbasell.com
First-Quarter Summary and Outlook
•
Strong margin recovery in:
-
North American olefins
-
Houston refinery
•
Maintenance turnaround activity
initiated at
Channelview during March
•
Continued to optimize capital
structure with debt refinancing
-
$3B new bonds at average 5.25%
coupon
First-Quarter Summary
Near-Term Outlook
14
•
Entered the second quarter with strong
North American olefins and Houston
refinery margins
•
European olefins/polyolefins remain
weak while differentiated businesses
continue to perform
•
Channelview olefins facility turnaround:
-
Many units restarted
-
Olefins unit being restarted
•
Second-quarter results will reflect
refinancing premiums |