Attached files
| file | filename |
|---|---|
| 8-K - 8-K - LyondellBasell Industries N.V. | d762633d8k.htm |
| EX-99.1 - EX-99.1 - LyondellBasell Industries N.V. | d762633dex991.htm |
 Jim
Gallogly, Chief Executive Officer Karyn Ovelmen, Chief Financial
Officer Sergey
Vasnetsov,
SVP
–
Strategic
Planning
and
Transactions
Doug
Pike,
VP
–
Investor
Relations
Second-Quarter 2014 Earnings
Exhibit 99.2 |
 Cautionary Statement
2
The
statements
in
this
presentation
relating
to
matters
that
are
not
historical
facts
are
forward-looking
statements.
These
forward-looking statements are based upon assumptions of management which are
believed to be reasonable at the time made and are subject to significant
risks and uncertainties. Actual results could differ materially based on factors including, but not
limited to, the business cyclicality of the chemical, polymers and refining
industries; the availability, cost and price volatility of raw materials and
utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and
pricing pressures; labor conditions; our ability to attract and retain key
personnel; operating interruptions (including leaks, explosions, fires,
weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages,
strikes, work stoppages or other labor difficulties, transportation interruptions,
spills and releases and other environmental risks);
the
supply/demand
balances
for
our
and
our
joint
ventures’
products,
and
the
related
effects
of
industry
production
capacities and operating rates; our ability to achieve expected cost savings and
other synergies; our ability to successfully execute projects and growth
strategies; legal and environmental proceedings; tax rulings, consequences or proceedings;
technological developments, and our ability to develop new products and process
technologies; potential governmental regulatory actions; political unrest
and terrorist acts; risks and uncertainties posed by international operations, including foreign
currency fluctuations; and our ability to comply with debt covenants and service
our debt. Additional factors that could cause results
to
differ
materially
from
those
described
in
the
forward-looking
statements
can
be
found
in
the
“Risk
Factors”
section
of
our Form 10-K for the year ended December 31, 2013, 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.
The illustrative results or returns of growth projects are not in any way intended
to be, nor should they be taken as, indicators or guarantees of performance.
The assumptions on which they are based are not projections and do not necessarily represent the
Company’s expectations and future performance. You should not rely on
illustrated results or returns or these assumptions as being indicative of
our future results or returns. 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.
We calculate EBITDA as income from continuing operations plus interest
expense (net), provision for (benefit from) income taxes, and depreciation &
amortization. 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 8 of
our accompanying earnings release for reconciliations of EBITDA to net
income. While
we
also
believe
that
free
cash
flow
(FCF)
and
book
capital
are
measures
commonly
used
by
investors, free cash flow and book capital, as presented herein,
may not be comparable to similarly titled
measures reported by other companies due to differences in the way the measures are
calculated. For purposes of this presentation, free cash flow means net cash
provided by operating activities minus capital expenditures and book capital
means total debt plus stockholders’ equity plus minority
interests. lyondellbasell.com |
 lyondellbasell.com
Highlights
4
EBITDA
($ in millions)
Income
from
Continuing
Operations
($ in millions, except per share data)
2Q'14
1Q'14
2Q'13
EBITDA
$1,941
$1,668
$1,652
Income from Continuing Operations
$1,173
$943
$923
Diluted Earnings ($ / share) from Continuing Operations
$2.22
$1.72
$1.60
500
1,000
1,500
$2,000
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
300
600
900
1,200
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
LTM
EBITDA
-
$6,683
million
LTM
EPS
–
$7.54
per
share |
 LyondellBasell Safety Performance
5
1) Includes employees and contractors.
Safety -
Injuries per 200,000 Hours Worked
(1)
In June, the American Chemistry Council recognized
LyondellBasell as a Responsible Care Company of the Year
0.0
0.1
0.2
0.3
0.4
0.5
2009
2010
2011
2012
2013
1H 2014
lyondellbasell.com |
 1,000
2,000
3,000
$4,000
Olefins &
Polyolefins -
Americas
Olefins &
Polyolefins -
EAI
Intermediates
& Derivatives
Refining
Technology
300
600
900
$1,200
Olefins &
Polyolefins -
Americas
Olefins &
Polyolefins -
EAI
Intermediates
& Derivatives
Refining
Technology
Second Quarter 2014 and Last Twelve Months (LTM)
Segment EBITDA
6
($ in millions)
($ in millions)
LTM June 2014 EBITDA
Second Quarter 2014 EBITDA
Q2’14 EBITDA
$1,941 million
Q2’14 Operating Income
$1,613 million
LTM June 2014 EBITDA
$6,683 million
LTM June 2014 Operating Income
$5,424 million
lyondellbasell.com |
 lyondellbasell.com
$3,233
$3,529
0
2,000
4,000
6,000
8,000
$10,000
Jul 2013
Beginning
Balance
CF from
Operations
excl.
Working
Capital
Working
Capital
Changes
Capex
Dividends &
Share
Repurchases
Net Debt
Borrowings
Other
Jun 2014
Ending
Balance
$4,379
$3,529
0
2,000
4,000
6,000
8,000
$10,000
Mar 2014
Beginning
Balance
CF from
Operations
excl.
Working
Capital
Working
Capital
Changes
Capex
Dividends &
Share
Repurchases
Net Debt
Borrowings
Other
Jun 2014
Ending
Balance
Cash Flow
7
1) Beginning and ending cash balances include cash and short-term securities; 2)
Includes accounts receivable, inventories and accounts payable; 3) Includes capital and maintenance turnaround spending.
($ in millions)
Q2 2014
LTM June 2014
(3)
(2)
(1)
(2)
(1)
(3)
(1)
(1)
~ $6.1 billion in dividends and share repurchases in the LTM June 2014
|
 1,000
2,000
3,000
4,000
5,000
6,000
$7,000
2011
2012
2013
LTM Jun 2014
Capex
Free Cash Flow
1,000
2,000
3,000
4,000
5,000
6,000
$7,000
2011
2012
2013
LTM Jun 2014
Interim Dividends
Special Dividends
Share Repurchases
Strong Cash Generation,
Share Repurchases & Dividends
8
Cash From Operations
Dividends & Share Repurchases
($ in millions)
($ in millions)
~ 19 million shares repurchased during
Q2’2014 and ~ 62 million shares
repurchased as of June 30, 2014
Key Statistics
1) Cash balances include cash and short-term securities.
Snapshot at June 30, 2014
LTM FCF: $3.8 billion
LTM Capex: $1.5 billion
Cash
(1)
: $3.5 billion
Total Debt/LTM EBITDA: 1.0x
Total Debt/Book Capital: 39%
lyondellbasell.com |
 lyondellbasell.com
0
15
30
45
60
Ethane Margin
Naphtha Margin
HDPE Margin
Ethylene/HDPE Chain
Olefins
&
Polyolefins
–
Americas
Highlights
and
Business
Drivers
–
2Q’14
9
U.S. Olefins
•
Increased internal ethylene
consumption
–
inventory
reduction
•
La Porte turnaround
•
Lower COE from higher co-product
values and lower NGL costs
Polyethylene
•
Spread up ~ 2¢/lb
•
Volumes flat
Polypropylene (includes Catalloy)
•
Spread up slightly
•
Volumes up ~ 3%
Ethylene Chain Margins
(1)
EBITDA
Performance vs. 1Q’14
Polypropylene Margins
(1)
EBITDA
Margin
Volume
($ in millions)
1) Source: Quarterly average industry data from third party consultants; 2) The
direction of the arrows reflects our underlying business metrics. (2)
2Q’13
1Q’14
2Q’14
Jul’14
(cents / lb)
(cents / lb)
200
400
600
800
$1000
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
0.0
1.5
3.0
4.5
6.0
2Q'13
1Q'14
2Q'14
Jul'14 |
 lyondellbasell.com
Olefins & Polyolefins –
Europe, Asia, International
Highlights and Business Drivers –
2Q’14
10
EU Olefins
•
Lower naphtha margin offset by
increased advantaged feedstocks
•
Operating rate ~ 95%
Polyethylene
•
Volumes up ~ 7%
•
Margins flat
Polypropylene (includes Catalloy)
•
Volumes up ~ 10%
•
Margins flat
JV equity income
EBITDA
Performance vs. 1Q’14
European Polypropylene Margins
(1)
(cents / lb)
(cents / lb)
($ in millions)
(2)
100
200
300
$400
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
(4)
(2)
0
2
4
2Q'13
1Q'14
2Q'14
Jul'14
EBITDA
Margin
Volume
(10)
5
20
35
50
2Q'13
1Q'14
2Q'14
Jul'14
Naphtha Margin
HDPE Margin
Ethylene/HDPE Chain
European Ethylene Chain Margins
(1)
1) Source: Quarterly average data from third party
consultants; 2) The direction of the arrows reflects our underlying business metrics. |
 Intermediates & Derivatives
Highlights and Business Drivers –
2Q’14
11
EBITDA
Propylene Oxide and Derivatives
•
PO volumes relatively unchanged
•
Lower derivatives volumes (deicers)
and margins
Intermediates
•
Acetyls
unchanged
–
improved
VAM/GAA margins offset by lower
Methanol margins
•
Improved Styrene volume and margins
Oxyfuels
•
Seasonal improvement in volumes and
margins
EBITDA
Margin
Volume
Performance vs. 1Q’14
($ in millions)
EU
MTBE
Raw
Material
Margins
(per
Platts)
(1)
(cents / gallon)
P-Glycol Raw Material Margins (per Chemdata)
(1)
1) Data represents quarterly average; 2) The direction of the
arrows reflects our underlying business metrics.
(2)
(cents / lb)
100
200
300
400
$500
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
0
20
40
60
2Q13
1Q14
2Q14
3Q14E
0
40
80
120
2Q'13
1Q'14
2Q'14
Jul'14
lyondellbasell.com |
 lyondellbasell.com
0
10
20
30
2Q'13
1Q'14
2Q'14
Jul'14
Lt-Hvy
Lt-Gasoline
Lt-ULSD
Refining Highlights and Business Drivers –
2Q’14
12
Houston Refinery
•
Crude throughput: 257 MBPD
•
Maya 2-1-1: $27.01 per bbl
•
Lower Maya 2-1-1 offset by higher
yield
•
Cost of RINs flat
EBITDA
Performance vs. 1Q’14
EBITDA
Margin
Volume
($ in millions)
1) Light Louisiana Sweet (LLS) is the referenced light crude. Data represents
quarterly average; 2) The direction of the arrows reflects our underlying business metrics.
Capacity = 268 MBPD
Refining Spreads (per Platts)
(1)
Refining Throughput
(2)
($ / bbl)
(MBPD)
50
100
150
$200
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
0
100
200
300
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14 |
 Second Quarter Summary and Outlook
13
–
Industry conditions expected to be
generally consistent with recent
quarters
–
O&P –
Americas impacted by LaPorte
startup delays; expansion expected
on-stream late in quarter
–
O&P –
EAI expects typical seasonal
impacts
–
Intermediates and Derivatives is
expected to remain steady
–
July Refining conditions have been
similar to June
Second Quarter Summary
Near-Term Outlook
–
Record earnings driven by solid
results across all segments
–
Industry fundamentals remain strong
–
O&P-
Americas record EBITDA
despite La Porte turnaround
–
Financial strategy on track with first
10% share repurchase program
complete and next 10% program
underway
lyondellbasell.com |