LyondellBasell Reports Record Third-Quarter 2014 Results

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Oct 24, 2014, 06:00 ET

HOUSTON and LONDON, Oct. 24, 2014 /PRNewswire/ --

Third-Quarter 2014 Highlights

Second consecutive quarter of record earnings
- Diluted earnings per share of $2.46
- Income from continuing operations of $1.3 billion
- EBITDA of $2.0 billion
- O&P Americas segment achieved EBITDA exceeding $1.1 billion
Announced the development of two new growth projects during the quarter
$5.4 billion of share repurchases and dividends year to date
- Repurchased approximately 12 million shares during the third quarter

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2014 of $1.3 billion, or $2.46 diluted earnings per share. Third quarter 2014 EBITDA was $2.0 billion. The quarter includes a $45 million non-cash charge for the impact of a lower of cost or market (LCM) inventory adjustment. The increase from the second quarter 2014 was primarily due to increased earnings in our Olefins and Polyolefins – Americas segment.

Comparisons with the prior quarter and third quarter 2013 are shown below:

Table 1 - Earnings Summary
		Three Months Ended			Nine Months Ended
*Millions of U.S. dollars (except share data)*		September 30,	June 30,	September 30,	September 30,
*Millions of U.S. dollars (except share data)*		2014	2014	2013	2014	2013
Sales and other operating revenues		$12,066	$12,117	$11,152	$35,318	$32,924
Net income^(a)		1,257	1,176	851	3,377	2,678
Income from continuing operations^(b)		1,260	1,173	854	3,376	2,683
Diluted earnings per share (U.S. dollars):
	Net income^(c)	2.45	2.23	1.50	6.38	4.66
	Income from continuing operations^(b)	2.46	2.22	1.51	6.38	4.67
Diluted share count (millions)		512	527	567	529	575
EBITDA^(d)		2,035	1,941	1,531	5,644	4,768

(a) Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10.
(b) Please see Table 11 for charges and benefits to income from continuing operations.
(c) Includes diluted earnings per share attributable to discontinued operations.
(d) See the end of this release for an explanation of the Company's use of EBITDA and Table 8 for reconciliations of EBITDA to net income and income from continuing operations.

"We are pleased to deliver a second consecutive quarter of record earnings, and our best quarter ever. During the third quarter we achieved diluted earnings per share from continuing operations of $2.46 and, for the first time, EBITDA exceeded $2 billion. Our Olefins and Polyolefins- Americas segment generated EBITDA in excess of $1.1 billion during the quarter. A tight U.S. ethylene market helped drive the record earnings," said Jim Gallogly, LyondellBasell Chief Executive Officer.

"In addition to our strong earnings, we continue to return cash to our shareholders. During the quarter, dividends and share repurchases totaled $1.6 billion. We repurchased approximately 12 million shares during the third quarter, and approximately 46 million shares year to date. Since the first share repurchase program was started in May 2013, we have repurchased approximately 73 million shares, or approximately 13 percent of the shares outstanding," continued Gallogly.

"Industry fundamentals remained strong during the quarter, and we continue to make progress on our investment program. Late in the quarter we initiated production from the 800 million pound per year La Porte ethylene expansion. This is the first of multiple ethylene expansions by the company, putting us well ahead of new greenfield plants pursued by others in the industry. In addition, we announced the development of two new growth projects, a further expansion of our Channelview olefins complex and a new U.S. Gulf Coast PO/TBA plant. Both projects take advantage of the favorable environment for North American raw materials, and the PO/TBA plant leverages our proprietary technology. These projects demonstrate that LyondellBasell has continued organic growth opportunities," Gallogly added.

OUTLOOK

"Despite declines in crude oil prices, U.S. industry fundamentals remained favorable through the first weeks of October. Domestic ethylene and polyolefins pricing remained strong, and we continued to benefit from favorable NGL pricing. Our fourth quarter results should be favorably impacted by the new La Porte ethylene capacity. Additionally, our refinery should begin receiving shipments of Canadian crude from the Flanagan South pipeline. However, we historically experience margin compression in products such as oxyfuels in winter months and slower polyolefin demand around the holiday season. Recent crude oil price declines are expected to ultimately impact domestic margins but today's tight market conditions may delay the timing of potential declines. We are watching to see how this develops. Given favorable NGL prices, our domestic assets remain significantly advantaged," Gallogly noted.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell manages operations through five operating segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia and International; 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.

Olefins and Polyolefins - Americas (O&P-Americas) – The primary products of this segment include ethylene and its co-products (propylene, butadiene and benzene), polyethylene, polypropylene and Catalloy process resins.


Table 2 - O&P–Americas Financial Overview
	Three Months Ended			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,
*Millions of U.S. dollars*	2014	2014	2013	2014	2013
Operating income	$1,068	$898	$759	$2,622	$2,452
EBITDA	1,157	978	841	2,871	2,690

Three months ended September 30, 2014 versus three months ended June 30, 2014 – The segment achieved record EBITDA results in the third quarter of 2014. EBITDA increased $179 million versus the second quarter 2014. Third quarter results include a $45 million non-cash LCM charge generated from a decline in inventory valuation. Compared to the prior period, olefins results increased approximately $220 million. This increase was largely driven by an increase in the average ethylene price of approximately eight cents per pound during the period. Third quarter ethylene sales volumes increased despite being negatively impacted by the delayed restart of the La Porte olefins plant. Combined polyolefin results decreased by approximately $40 million from the second quarter 2014. Strong demand was offset by a decrease in the ethylene to polyethylene price spread of seven cents per pound. Joint venture equity income was stable quarter on quarter.

Three months ended September 30, 2014 versus three months ended September 30, 2013 – EBITDA increased $316 million versus the third quarter 2013. The third quarter 2014 included a $45 million non-cash LCM charge. Olefins results increased approximately $260 million compared to the prior year period. Margins benefited from lower NGL costs and an approximately nine cents per pound higher average price of ethylene compared to the prior year period. Ethylene demand improved primarily from increased internal polyethylene production. Polyethylene results increased by approximately $35 million as volume improved by approximately 15 percent. Polypropylene results increased by approximately $10 million primarily from higher margins. Joint venture equity income decreased by $1 million.

Olefins and Polyolefins - Europe, Asia, International (O&P-EAI) – The primary products of this segment include ethylene and its co-products (propylene and butadiene), polyethylene, polypropylene, global polypropylene compounds, Catalloy process resins and polybutene-1 resins.

Table 3 - O&P–EAI Financial Overview
	Three Months Ended			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,
*Millions of U.S. dollars*	2014	2014	2013	2014	2013
Operating income	$223	$190	$78	$638	$360
EBITDA	343	319	204	1,018	724

Three months ended September 30, 2014 versus three months ended June 30, 2014 – EBITDA increased $24 million versus the second quarter 2014. Olefins results increased by approximately $35 million primarily due to lower production costs. Approximately 55 percent of our ethylene production was sourced from advantaged raw materials. Ethylene operating rates were 95 percent during the third quarter. Combined polyolefin results increased by approximately $15 million. Combined polypropylene compounds and polybutene-1 results declined approximately $15 million as volume declined approximately 6 percent from lower seasonal demand. Equity income from joint ventures decreased by $7 million from the second quarter 2014 primarily as a result of planned and unplanned maintenance.

Three months ended September 30, 2014 versus three months ended September 30, 2013 – EBITDA increased $139 million versus the third quarter 2013. Olefins results increased by approximately $85 million primarily as a result of higher margins from processing advantaged feedstocks, lower naphtha, higher operating rates, and improved co-product values. Combined polyolefin results increased approximately $50 million primarily as a result of higher margins. Polypropylene compounds and polybutene-1 results decreased by approximately $10 million from the prior year period. Equity income from joint ventures increased $8 million from the third quarter 2013.

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 (acetic acid, vinyl acetate monomer and 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*	2014	2014	2013	2014	2013
Operating income	$321	$375	$371	$1,012	$979
EBITDA	383	430	427	1,188	1,138

Three months ended September 30, 2014 versus three months ended June 30, 2014 – EBITDA decreased $47 million versus the second quarter 2014. Results for PO and PO derivatives increased by approximately $25 million. Increased PO volumes and higher PO derivative margins drove the increase. Intermediate chemicals results decreased by approximately $50 million. Lower styrene results and unplanned outages at our ethylene oxide and methanol plants were responsible for the decline. Oxyfuels results declined by approximately $20 million due to lower sales volumes. Equity income from joint ventures increased by $3 million.

Three months ended September 30, 2014 versus three months ended September 30, 2013 – EBITDA decreased $44 million compared to the third quarter 2013. Results for PO and PO derivatives increased by approximately $30 million as a result of higher volumes and better pricing as a result of tight PO supply. Intermediate chemicals results were lower by approximately $55 million despite higher methanol volume. Styrene raw material margins declined approximately 13 cents per pound from strong third quarter 2013 margins. Oxyfuels results decreased by approximately $30 million. Equity income from joint ventures decreased $4 million from the third quarter 2013.

Refining – The primary products of this segment include gasoline, diesel fuel, heating oil, jet fuel, and petrochemical raw materials.

Table 5 - Refining Financial Overview
	Three Months Ended			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,
*Millions of U.S. dollars*	2014	2014	2013	2014	2013
Operating income (loss)	$67	$95	($37)	$248	($70)
EBITDA	110	137	8	376	48

Three months ended September 30, 2014 versus three months ended June 30, 2014 – EBITDA decreased $27 million versus the second quarter 2014. The refinery processed 264,000 barrels per day, up 7,000 barrels per day from the prior quarter. Compared to the prior quarter, the Maya 2-1-1 benchmark crack spread declined by $2.66 per barrel, averaging $24.35 per barrel. The corresponding Houston refinery spread experienced a smaller decline due primarily to favorable crude purchases relative to Maya. Hydrodesulfurization unit maintenance lowered finished product yields resulting in lower margins. The cost of Renewable Identification Numbers (RINs) to meet U.S. renewable fuel standards was relatively unchanged versus the second quarter 2014.

Three months ended September 30, 2014 versus three months ended September 30, 2013 – EBITDA increased $102 million versus the third quarter 2013. The refinery processed 14,000 barrels per day more than the prior year period. Compared to the third quarter 2013, the Maya 2-1-1 benchmark spread increased $1.13 per barrel. The refinery also benefited from better margins on secondary products, such as propylene, naphtha, and NGLs. The cost of RINs decreased by approximately $10 million compared to the same quarter last year.

Technology – The principal products of the Technology segment include polyolefin catalysts and production process technology licenses and related services.


Table 6 - Technology Financial Overview
	Three Months Ended			Nine Months Ended
	September 30,	June 30,	September 30,	September 30,
*Millions of U.S. dollars*	2014	2014	2013	2014	2013
Operating income	$26	$56	$35	$142	$124
EBITDA	41	71	52	188	$177

Three months ended September 30, 2014 versus three months ended June 30, 2014 – EBITDA decreased by $30 million from lower licensing results.

Three months ended September 30, 2014 versus three months ended September 30, 2013 – EBITDA decreased by $11 million from lower licensing results.

Capital spending and cash balances

Capital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $338 million in the third quarter 2014. Our cash and short-term securities balance was $2.9 billion at September 30, 2014. We repurchased approximately 12 million of our outstanding ordinary shares and paid $358 million in dividends during the third quarter of 2014. There were 504 million common shares outstanding as of September 30^th.

CONFERENCE CALL

LyondellBasell will host a conference call October 24 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Jim Gallogly, Executive Vice President and Chief Financial Officer Karyn Ovelmen, Senior Vice President - Strategic Planning and Transactions Sergey Vasnetsov, and Vice President of Investor Relations Doug Pike.

The toll-free dial-in number in the U.S. is 888-677-1826. For international numbers, go to www.lyb.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 1231245.

A replay of the call will be available from 2 p.m. ET October 24 until November 24 at 11 p.m. ET. The replay dial-in numbers are 800-947-6627 (U.S.) and +1 203-369-3974 (international). The pass code for each is 3675.

The slides that accompany the call will be available at http://www.lyb.com/earnings.

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyb.com) manufactures products at 55 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.

FORWARD-LOOKING STATEMENTS

The statements in this release and the related teleconference 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.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

NON-GAAP MEASURES

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

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 alternative to operating cash flows as a measure of our liquidity.

Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 8 at the end of this release.

OTHER FINANCIAL MEASURE PRESENTATION NOTES

This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.

Table 7 - Reconciliation of Segment Information to Consolidated Financial Information

				2013										2014
	(Millions of U.S. dollars)			Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		YTD
	Sales and other operating revenues:
		Olefins & Polyolefins - Americas		$	3,244	$	3,251	$	3,315	$	3,279	$	13,089	$	3,357	$	3,462	$	3,750	$	10,569
		Olefins & Polyolefins - Europe, Asia, International			3,800		3,708		3,594		3,583		14,685		3,778		4,069		3,995		11,842
		Intermediates & Derivatives			2,282		2,217		2,452		2,521		9,472		2,429		2,706		2,691		7,826
		Refining			2,468		3,077		3,177		2,976		11,698		2,756		3,250		3,146		9,152
		Technology			134		132		124		142		532		136		144		107		387
		Other			(1,259)		(1,282)		(1,510)		(1,363)		(5,414)		(1,321)		(1,514)		(1,623)		(4,458)
			Continuing Operations	$	10,669	$	11,103	$	11,152	$	11,138	$	44,062	$	11,135	$	12,117	$	12,066	$	35,318
	Operating income (loss):
		Olefins & Polyolefins - Americas		$	821	$	872	$	759	$	801	$	3,253	$	656	$	898	$	1,068	$	2,622
		Olefins & Polyolefins - Europe, Asia, International			93		189		78		17		377		225		190		223		638
		Intermediates & Derivatives			323		285		371		321		1,300		316		375		321		1,012
		Refining			(17)		(16)		(37)		92		22		86		95		67		248
		Technology			50		39		35		33		157		60		56		26		142
		Other			(3)		(5)		1		- -		(7)		(3)		(1)		1		(3)
			Continuing Operations	$	1,267	$	1,364	$	1,207	$	1,264	$	5,102	$	1,340	$	1,613	$	1,706	$	4,659
	Depreciation and amortization:
		Olefins & Polyolefins - Americas		$	75	$	69	$	73	$	76	$	293	$	73	$	74	$	84	$	231
		Olefins & Polyolefins - Europe, Asia, International			77		76		78		56		287		70		67		65		202
		Intermediates & Derivatives			48		50		50		56		204		55		56		55		166
		Refining			36		37		45		42		160		42		42		42		126
		Technology			17		20		16		22		75		16		15		16		47
		Other			- -		2		- -		- -		2		- -		- -		- -		- -
			Continuing Operations	$	253	$	254	$	262	$	252	$	1,021	$	256	$	254	$	262	$	772
	EBITDA: ^(a)
		Olefins & Polyolefins - Americas		$	898	$	951	$	841	$	883	$	3,573	$	736	$	978	$	1,157	$	2,871
		Olefins & Polyolefins - Europe, Asia, International			225		295		204		115		839		356		319		343		1,018
		Intermediates & Derivatives			373		338		427		354		1,492		375		430		383		1,188
		Refining			20		20		8		134		182		129		137		110		376
		Technology			66		59		52		55		232		76		71		41		188
		Other			3		(11)		(1)		2		(7)		(4)		6		1		3
			Continuing Operations	$	1,585	$	1,652	$	1,531	$	1,543	$	6,311	$	1,668	$	1,941	$	2,035	$	5,644
	Capital, turnarounds and IT deferred spending:
		Olefins & Polyolefins - Americas		$	122	$	122	$	218	$	183	$	645	$	231	$	306	$	208	$	745
		Olefins & Polyolefins - Europe, Asia, International			63		46		44		76		229		33		27		45		105
		Intermediates & Derivatives			106		141		119		77		443		45		52		50		147
		Refining			93		67		36		13		209		32		20		27		79
		Technology			7		6		7		10		30		2		6		6		14
		Other			- -		5		(1)		1		5		- -		4		2		6
			Total		391		387		423		360		1,561		343		415		338		1,096
		Deferred charges included above			- -		- -		- -		- -		- -		- -		- -		- -		- -
			Continuing Operations	$	391	$	387	$	423	$	360	$	1,561	$	343	$	415	$	338	$	1,096


(a) See Table 8 for EBITDA calculation.

Table 8 - EBITDA Calculation

			2013										2014
	(Millions of U.S. dollars)		Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		YTD

	Net income attributable to the Company shareholders		$	901	$	929	$	853	$	1,174	$	3,857	$	945	$	1,178	$	1,258	$	3,381
	Net income (loss) attributable to non-controlling interests			(1)		(2)		(2)		1		(4)		(1)		(2)		(1)		(4)
	(Income) loss from discontinued operations, net of tax			6		(4)		3		2		7		(1)		(3)		3		(1)
	Income from continuing operations			906		923		854		1,177		3,860		943		1,173		1,260		3,376
		Provision for income taxes		357		410		339		30		1,136		383		425		434		1,242
		Depreciation and amortization		253		254		262		252		1,021		256		254		262		772
		Interest expense, net		69		65		76		84		294		86		89		79		254
	EBITDA		$	1,585	$	1,652	$	1,531	$	1,543	$	6,311	$	1,668	$	1,941	$	2,035	$	5,644

Table 9 - Selected Segment Operating Information

				2013					2014
				Q1	Q2	Q3	Q4	Total	Q1	Q2	Q3	YTD
	Olefins and Polyolefins - Americas
		Volumes (million pounds)
			Ethylene produced	2,337	2,412	2,111	2,156	9,016	1,979	1,721	2,301	6,001
			Propylene produced	624	529	652	646	2,451	611	648	559	1,818
			Polyethylene sold	1,396	1,389	1,378	1,409	5,572	1,406	1,451	1,577	4,434
			Polypropylene sold	565	637	669	642	2,513	614	632	681	1,927
		Benchmark Market Prices
			West Texas Intermediate crude oil (USD per barrel)	94.43	94.17	105.80	97.60	98.06	98.61	102.99	97.25	99.62
			Light Louisiana Sweet ("LLS") crude oil (USD per barrel)	113.86	104.64	109.94	101.12	107.31	104.36	105.55	101.03	103.63
			Natural gas (USD per million BTUs)	3.45	4.22	3.68	3.70	3.78	5.01	4.74	4.19	4.65
			U.S. weighted average cost of ethylene production (cents/pound)	13.8	15.7	16.6	18.6	16.2	20.0	17.1	14.5	17.1
			U.S. ethylene (cents/pound)	48.0	46.3	45.8	46.5	46.7	48.3	47.2	51.8	49.1
			U.S. polyethylene [high density] (cents/pound)	66.7	68.7	71.7	75.0	70.5	76.3	77.0	78.0	77.1
			U.S. propylene (cents/pound)	75.0	63.3	68.3	68.2	68.7	73.3	69.7	70.8	71.3
			U.S. polypropylene [homopolymer] (cents/pound)	88.0	76.2	82.3	82.2	82.2	88.3	84.7	86.3	86.4

	Olefins and Polyolefins - Europe, Asia, International
		Volumes (million pounds)
			Ethylene produced	912	991	984	930	3,817	989	1,024	1,039	3,052
			Propylene produced	577	610	597	568	2,352	582	617	629	1,828
			Polyethylene sold	1,206	1,314	1,212	1,167	4,899	1,275	1,363	1,284	3,922
			Polypropylene sold	1,657	1,821	1,612	1,531	6,621	1,509	1,707	1,633	4,849
		Benchmark Market Prices (€0.01 per pound)
			Western Europe weighted average cost of ethylene production	36.2	29.3	34.9	38.5	34.7	32.9	34.3	31.5	32.9
			Western Europe ethylene	58.6	54.4	55.0	55.1	55.8	54.7	52.8	54.1	53.9
			Western Europe polyethylene [high density]	61.2	56.8	57.9	57.1	58.2	56.1	54.8	55.4	55.5
			Western Europe propylene	50.6	47.9	49.6	49.9	49.5	51.3	52.2	51.9	51.8
			Western Europe polypropylene [homopolymer]	59.1	56.1	58.1	58.2	57.9	59.9	61.3	61.4	60.9

	Intermediates and Derivatives
		Volumes (million pounds)
			Propylene oxide and derivatives	683	665	665	729	2,742	772	726	768	2,266
			Ethylene oxide and derivatives	260	277	294	346	1,177	262	319	211	792
			Styrene monomer	703	589	756	832	2,880	683	870	933	2,486
			Acetyls	431	470	506	510	1,917	683	592	613	1,888
			TBA Intermediates	434	357	425	442	1,658	416	391	461	1,268
		Volumes (million gallons)
			MTBE/ETBE	185	235	241	222	883	188	266	245	699
		Benchmark Market Margins (cents per gallon)
			MTBE - Northwest Europe	104.9	88.4	86.8	37.8	79.1	63.4	90.7	111.8	86.4

	Refining
		Volumes (thousands of barrels per day)
			Heavy crude oil processing rate	173	265	250	239	232	247	257	264	256
		Benchmark Market Margins
			Light crude oil - 2-1-1	11.53	14.63	12.63	12.67	12.89	13.18	17.29	14.20	14.90
			Light crude oil - Maya differential	11.17	6.95	10.59	11.65	10.05	15.08	9.72	10.15	11.64


Source: LYB and third party consultants
Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices.

Table 10 - Unaudited Income Statement Information

					2013										2014
	(Millions of U.S. dollars)				Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		YTD

	Sales and other operating revenues				$	10,669	$	11,103	$	11,152	$	11,138	$	44,062	$	11,135	$	12,117	$	12,066	$	35,318
	Cost of sales					9,153		9,496		9,690		9,601		37,940		9,577		10,255		10,118		29,950
	Selling, general and administrative expenses					213		208		220		229		870		186		215		211		612
	Research and development expenses					36		35		35		44		150		32		34		31		97
		Operating income				1,267		1,364		1,207		1,264		5,102		1,340		1,613		1,706		4,659
	Income from equity investments					59		43		61		40		203		61		68		64		193
	Interest expense, net					(69)		(65)		(76)		(84)		(294)		(86)		(89)		(79)		(254)
	Other income (expense), net					6		(9)		1		(13)		(15)		11		6		3		20
		Income from continuing operations before income taxes				1,263		1,333		1,193		1,207		4,996		1,326		1,598		1,694		4,618
	Provision for income taxes					357		410		339		30		1,136		383		425		434		1,242
		Income from continuing operations				906		923		854		1,177		3,860		943		1,173		1,260		3,376
	Income (loss) from discontinued operations,
		net of tax				(6)		4		(3)		(2)		(7)		1		3		(3)		1
			Net income			900		927		851		1,175		3,853		944		1,176		1,257		3,377
	Net (income) loss attributable to non-controlling
		interests				1		2		2		(1)		4		1		2		1		4
			Net income attributable to the Company
				shareholders	$	901	$	929	$	853	$	1,174	$	3,857	$	945	$	1,178	$	1,258	$	3,381

Table 11 - Charges (Benefits) Included in Income from Continuing Operations

		2013										2014
Millions of U.S. dollars (except share data)		Q1		Q2		Q3		Q4		Total		Q1		Q2		Q3		YTD
Pretax charges (benefits):
	Impairments	$	- -	$	- -	$	- -	$	10	$	10	$	- -	$	- -	$	- -	$	- -
	Insurance settlement		- -		- -		- -		(25)		(25)		- -		- -		- -		- -
	Settlement of environmental indemnification agreement		- -		- -		- -		- -		- -		(52)		- -		- -		(52)
	Loss on sale of investment		- -		- -		- -		16		16		- -		- -		- -		- -
	Lower of cost or market inventory adjustment		- -		- -		- -		- -		- -		- -		- -		45		45
Total pretax charges (benefits)			- -		- -		- -		1		1		(52)		- -		45		(7)
Provision for (benefit from) income tax related to these items			- -		- -		- -		4		4		- -		- -		(17)		(17)
After-tax effect of net charges (benefits)		$	- -	$	- -	$	- -	$	5	$	5	$	(52)	$	- -	$	28	$	(24)
Effect on diluted earnings per share		$	- -	$	- -	$	- -	$	- -	$	- -	$	0.09	$	- -	$	(0.05)	$	0.04

Table 12 - Unaudited Cash Flow Information

		2013										2014
	(Millions of U.S. dollars)	Q1		Q2		Q3		Q4		Total		Q1			Q2		Q3		YTD

	Net cash provided by operating activities	$	799	$	1,246	$	1,116	$	1,674	$	4,835	$	801	$	1,797	$	1,434	$	4,032

	Net cash used in investing activities		(408)		(389)		(438)		(367)		(1,602)		(2,011)		(246)		(638)		(2,895)

	Net cash provided by (used in) financing activities		(234)		(508)		452		(1,299)		(1,589)		(550)		(2,217)		(1,621)		(4,388)

Table 13 - Unaudited Balance Sheet Information

	(Millions of U.S. dollars)		March 31,		June 30,		September 30,		December 31,		March 31,		June 30,		September 30,
	(Millions of U.S. dollars)		2013		2013		2013		2013		2014		2014		2014

	Cash and cash equivalents		$	2,879	$	3,233	$	4,414	$	4,450	$	2,702	$	2,030	$	1,185
	Restricted cash			6		2		4		10		3		2		- -
	Short-term investments			- -		- -		- -		- -		1,402		1,299		1,544
	Accounts receivable, net			3,878		4,023		4,041		4,030		4,141		4,264		4,105
	Inventories			5,270		5,197		5,382		5,279		5,589		5,326		5,359
	Prepaid expenses and other current assets			622		577		784		830		1,156		784		739
		Total current assets		12,655		13,032		14,625		14,599		14,993		13,705		12,932
	Property, plant and equipment, net			7,779		7,979		8,223		8,457		8,556		8,740		8,600
	Investments and long-term receivables:
		Investment in PO joint ventures		401		409		423		421		424		418		397
		Equity investments		1,607		1,622		1,615		1,629		1,693		1,702		1,690
		Other investments and long-term receivables		421		231		164		64		62		58		54
	Goodwill			582		588		598		605		605		602		576
	Intangible assets, net			999		966		934		904		870		838		799
	Other assets			233		221		229		619		624		593		583
		Total assets	$	24,677	$	25,048	$	26,811	$	27,298	$	27,827	$	26,656	$	25,631

	Current maturities of long-term debt		$	1	$	1	$	1	$	1	$	3	$	3	$	2
	Short-term debt			115		114		114		58		58		55		56
	Accounts payable			3,217		3,324		3,241		3,572		3,642		3,690		3,431
	Accrued liabilities			1,217		1,047		1,528		1,299		1,477		1,310		1,460
	Deferred income taxes			557		550		494		580		540		570		685
		Total current liabilities		5,107		5,036		5,378		5,510		5,720		5,628		5,634
	Long-term debt			4,307		4,306		5,774		5,776		6,766		6,766		6,753
	Other liabilities			2,306		2,325		2,278		1,839		1,838		1,851		1,795
	Deferred income taxes			1,277		1,312		1,472		1,659		1,677		1,623		1,574
	Stockholders' equity			11,641		12,032		11,874		12,478		11,791		10,753		9,843
	Non-controlling interests			39		37		35		36		35		35		32
		Total liabilities and stockholders' equity	$	24,677	$	25,048	$	26,811	$	27,298	$	27,827	$	26,656	$	25,631