LyondellBasell Reports Second-Quarter 2012 Results

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Jul 27, 2012, 07:00 ET

ROTTERDAM, Netherlands, July 27, 2012 /PRNewswire/ --

Second-Quarter 2012 Highlights

$768 million net income or $1.33 diluted earnings per share
Second-quarter EBITDA of $1,774 million
Olefins margins in North America and Europe expanded as raw material costs declined
Interim quarterly dividend increased by 60 percent to 40 cents per share
Berre refinery moved to discontinued operations; business segments have been realigned by moving Oxyfuels to Intermediates and Derivatives

LyondellBasell Industries (NYSE: LYB) today announced earnings for the second quarter 2012 of $768 million, or $1.33 per share. Discontinued operations had no impact on earnings in the second quarter. Second-quarter 2012 EBITDA was $1,774 million, a 44 percent increase from the first quarter 2012. Second quarter net income includes the net negative effect of $191 million, or $0.33 per share, related to charges associated with debt repayments, and inventory accounting valuations, partially offset by proceeds from an insurance settlement.

Comparisons with the prior quarter and second quarter 2011 are shown below:

Table 1 - Earnings Summary^(a)
		Three Months Ended			Six Months Ended
					June 30,
*Millions of U.S. dollars (except share data)*		June 30, 2012	March 31, 2012	June 30, 2011	2012	2011
Sales and other operating revenues		$11,248	$11,734	$13,306	$22,982	$24,686
Net income^(a)		768	599	803	1,367	1,463
Income from continuing operations		768	594	851	1,362	1,533
Diluted earnings per share (U.S. dollars):
	Net income^(b)	1.33	1.04	1.38	2.37	2.56
	Income from continuing operations	1.33	1.03	1.46	2.36	2.68
Diluted share count (millions)		577	575	575	576	569
EBITDA^(c)		1,774	1,228	1,593	3,002	3,013
EBITDA excluding LCM inventory valuation adjustments		1,845	1,228	1,593	3,073	3,013

(a) Includes net loss attributable to non-controlling interests and loss from discontinued operations, net of tax. See Table 11.
(b) Includes diluted loss per share attributable to discontinued operations.
(c) See the end of this release for an explanation of the Company's use of EBITDA and Table 9 for reconciliations of EBITDA to net income.

During the second quarter 2012, results improved over the first quarter 2012, with the most significant improvements being in global olefins and North America polyolefins, which benefited from increased margins driven by lower feedstock costs.

Results also reflect the following charges and benefits:

Table 2 - Charges (Benefits) Included in Income from Continuing Operations
			Three Months Ended			Six Months Ended
			June 30,	March 31,	June 30,	June 30,
*Millions of U.S. dollars (except share data)*			2012	2012	2011	2012	2011
Pretax charges (benefits):
	Charges and premiums related to
		repayment of debt	$329	$ - -	$12	$329	$12
	Reorganization items		- -	(5)	28	(5)	30
	Corporate restructurings		- -	- -	61	- -	61
	Impairments		- -	22	4	22	4
	Sale of precious metals		- -	- -	(41)	- -	(41)
	Warrants - mark to market		- -	10	(6)	10	53
	Insurance settlement		(100)	- -	- -	(100)	(34)
	Environmental accruals		- -	- -	16	- -	16
	Lower of cost or market inventory adjustment		71	- -	- -	71	- -
Total pretax charges (benefits)			300	27	74	327	101
Provision for (benefit from) income tax related
	to these items		(109)	(5)	(21)	(114)	(10)
After-tax effect of net charges (credits)			$191	$22	$53	$213	$91
Effect on diluted earnings per share			($0.33)	($0.03)	($0.09)	($0.36)	($0.16)

"During the second quarter, we continued to demonstrate the earnings power of our company as margins strengthened over the first quarter," said Jim Gallogly, LyondellBasell Chief Executive Officer. "While global economic uncertainties dominate the headlines, our company's performance has remained strong. NGL supply and costs continue to drive favorable U.S. olefin results particularly in the Midwest where ethane prices declined to below equivalent fuel values," he stated.

"The Olefins and Polyolefins-EAI segment benefited from improved European olefin margins and joint venture dividend payments despite weak European economic conditions, which led to lower volumes. The Intermediate and Derivatives, and Technology segments continue to demonstrate strong, steady performance. The Houston refinery operated near full capacity; however, low by-product values impacted refining results," Gallogly said.

"We accomplished several key milestones during the second quarter, including completing a major Channelview turnaround, finalizing our debt refinancing and raising our interim quarterly dividend by 60 percent," Gallogly indicated.

OUTLOOK

"While we expect global economic uncertainty to continue and related volatility to limit our near-term visibility, we remain focused on the fundamentals. In North America, current ethane and propane raw material prices position our North American olefins business to remain advantaged relative to global ethylene producers. On the other hand, our European olefins and polyolefins business will be challenged, and thus we will continue efforts to improve our relative cost position," Gallogly added.

"Safe and reliable operations, proprietary technologies, and access to low cost feedstocks in the U.S. and Middle East position us well to generate strong earnings and free cash flow. LyondellBasell is poised to move forward to a new chapter in which we are pursuing growth projects targeted to take advantage of opportunities created by North America's shale gas development," Gallogly said.

LYONDELLBASELL BUSINESS RESULTS DISCUSSION BY REPORTING SEGMENT

LyondellBasell operates in five business segments: 1) Olefins and Polyolefins – Americas; 2) Olefins and Polyolefins – Europe, Asia, International (EAI); 3) Intermediates and Derivatives; 4) Refining; and 5) Technology.

We ceased operations at the Berre refinery on Jan. 4, 2012, and the dormant equipment was mothballed. The majority of the product and raw material inventories at the refinery have been sold. Consistent with these actions and beginning with the second quarter results, these operations are now considered to be discontinued operations for U.S. GAAP reporting purposes.

Additionally, our segments have been realigned with the movement of the oxyfuels business to the Intermediates and Derivatives segment. In the past, the marketing of oxyfuels was aligned with the sale of products from our refining business, particularly related to Berre and significant European sales. However, with the closure of the Berre refinery, responsibility for business decisions relating to oxyfuels has been moved to the Intermediates and Derivatives business management function, as the profits generated by these products are related to sourcing decisions regarding certain co-products of propylene oxide production. Consistent with this change, our former Refining and Oxyfuels segment has been renamed the Refining segment.

Appendices A through D provide select financial data outlining and recasting these reporting changes.

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 3 - O&P–Americas Financial Overview
	Three Months Ended			Six Months Ended
	June 30,	March 31,	June 30,	June 30,
*Millions of U.S. dollars*	2012	2012	2011	2012	2011
Operating income	$700	$519	$508	$1,219	$929
EBITDA	776	598	577	1,374	1,061
EBITDA excluding LCM charges	847	598	577	1,445	1,061

Three months ended June 30, 2012 versus three months ended March 31, 2012 – O&P-Americas segment EBITDA increased $178 million versus the first quarter 2012. Second quarter 2012 results include a $71 million Lower of Cost or Market adjustment. Compared to the prior period, olefins results increased approximately $170 million primarily due to improved margins. Average ethylene sales price decreased 6 cents per pound while the company's average cost of ethylene production metric decreased approximately 13 cents per pound. The decrease in the cost of ethylene production was driven by lower natural gas liquids and naphtha prices. Ethylene production volume increased by approximately 150 million pounds after the completion of the Channelview turnaround in April. Polyethylene results increased approximately $30 million, primarily as a result of a decrease in ethylene raw material cost, which more than offset a decrease in polyethylene pricing. Polypropylene results improved approximately $30 million from the first quarter 2012, primarily due to higher margins. Overall, polyolefin sales volumes declined approximately 7 percent in the second quarter 2012 compared to the first quarter 2012. The segment received $29 million in the second quarter from an insurance settlement for Hurricane Ike.

Three months ended June 30, 2012 versus three months ended June 30, 2011 – O&P-Americas results increased $199 million versus the second quarter 2011. Olefins results increased approximately $230 million compared to the prior year period, largely as a result of significantly improved margins driven by lower natural gas liquids prices. Combined polyolefins results improved by approximately $30 million. Second quarter 2012 results include a $71 million Lower of Cost or Market adjustment.

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 4 - O&P–EAI Financial Overview
	Three Months Ended			Six Months Ended
	June 30,	March 31,	June 30,	June 30,
*Millions of U.S. dollars*	2012	2012	2011	2012	2011
Operating income	$203	$3	$203	$206	$378
EBITDA	335	101	273	436	602

Three months ended June 30, 2012 versus three months ended March 31, 2012 – O&P-EAI segment EBITDA increased $234 million versus the first quarter 2012. Olefins results increased approximately $180 million from the first quarter 2012 primarily due to margin expansion for light olefins and butadiene. Margin expansion was the result of declining raw material costs coupled with higher quarterly average sales prices. Combined polyolefin results were relatively unchanged. Polypropylene compounds and polybutene results were relatively unchanged from the first quarter 2012. Dividends, primarily from our Saudi Arabia (SEPC) and Thailand (HMC Polymers) joint ventures, totaled $59 million during the second quarter 2012.

Three months ended June 30, 2012 versus three months ended June 30, 2011 – O&P-EAI segment EBITDA increased $62 million versus the second quarter 2011. Compared to the second quarter 2011, olefins results were relatively unchanged while polyolefin results declined approximately $80 million primarily due to lower volumes and margins. Polypropylene compounding and polybutene results were $10 million higher than the prior year driven by higher margins. Second quarter 2012 includes $59 million related to dividend payments from our joint ventures. Second quarter 2011 results included charges of approximately $60 million from an O&P-EAI staff reorganization and environmental remediation.

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, ethylene oxide and its derivatives, and oxyfuels.

Table 5 - I&D Financial Overview
	Three Months Ended			Six Months Ended
	June 30,	March 31,	June 30,	June 30,
*Millions of U.S. dollars*	2012	2012	2011	2012	2011
Operating income	$390	$370	$327	$760	$603
EBITDA	455	418	419	873	740

Three months ended June 30, 2012 versus three months ended March 31, 2012 – I&D segment EBITDA increased $37 million versus the first quarter 2012. EBITDA included an $18 million insurance settlement related to Hurricane Ike, and $14 million of dividends from our Asian PO joint ventures. The underlying PO and derivatives results were relatively unchanged. Intermediates results increased versus the prior quarter primarily driven by PO co-products margin improvement. Oxyfuels results were relatively unchanged compared to the prior quarter.

Three months ended June 30, 2012 versus three months ended June 30, 2011 – I&D EBITDA increased $36 million compared to the second quarter 2011. The underlying PO and derivatives EBITDA was relatively unchanged versus the prior year period. Intermediates results decreased by approximately $50 million compared to the second quarter 2011 primarily due to the absence of a $41 million gain on the sale of precious metals. Oxyfuels results improved approximately $40 million between the periods mainly as a result of stronger margins.

I&D also benefited from an insurance settlement payment of $18 million in the second quarter 2012 related to Hurricane Ike and dividend payments from our Asian PO joint ventures, which totaled $14 million.

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

Table 6 - Refining Financial Overview
	Three Months Ended			Six Months Ended
	June 30,	March 31,	June 30,	June 30,
*Millions of U.S. dollars*	2012	2012	2011	2012	2011
Operating income	$124	$10	$258	$134	$416
EBITDA	161	48	293	209	483

Three months ended June 30, 2012 versus three months ended March 31, 2012 – Refining segment EBITDA increased $113 million versus the first quarter 2012. The Houston refinery operated near capacity at 267,000 barrels per day, an increase of 8,000 barrels per day from the prior quarter. The benchmark crack spread Maya 2-1-1 increased $3.01 per barrel to $23.16 per barrel in the second quarter 2012. Relative to the benchmark spread, results continue to be negatively impacted from depressed by-product values such as coke. Refining segment EBITDA results reflect $53 million related to a Hurricane Ike insurance settlement in the second quarter.

Three months ended June 30, 2012 versus three months ended June 30, 2011 – Refining segment EBITDA decreased $132 million versus the second quarter 2011 due to a decline in the Maya 2-1-1 benchmark and lower by-product values. The 2011 period benefited from favorable crude purchasing opportunities. Second quarter 2012 EBITDA results included a $53 million benefit related to a Hurricane Ike insurance settlement.

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


Table 7 - Technology Financial Overview
	Three Months Ended			Six Months Ended
	June 30,	March 31,	June 30,	June 30,
*Millions of U.S. dollars*	2012	2012	2011	2012	2011
Operating income	$30	$38	$23	$68	$89
EBITDA	49	57	42	106	133

Three months ended June 30, 2012 versus three months ended March 31, 2012 – Results decreased primarily due to lower licensing and services income coupled with lower catalyst volumes.

Three months ended June 30, 2012 versus three months ended June 30, 2011 – Results increased due to lower research and development costs more than offsetting a decline in catalyst sales.

Liquidity

Company liquidity, defined as cash and cash equivalents plus funds available through established lines of credit, was approximately $4.4 billion on June 30, 2012. The company's cash balance was approximately $2.0 billion on June 30, 2012.

Capital Spending

Capital expenditures, including maintenance turnaround, catalyst and information technology related expenditures, were $236 million during the second quarter 2012.

CONFERENCE CALL

LyondellBasell will host a conference call today, July 27, 2012, at 11 a.m. ET. Participating on the call will be Jim Gallogly, Chief Executive Officer; Karyn Ovelmen, Executive Vice President and Chief Financial Officer; Sergey Vasnetsov, Senior Vice President - Strategic Planning and Transactions; and Doug Pike, Vice President of Investor Relations.

The toll-free dial-in number in the U.S. is 888-606-9542. For international numbers, please go to the company website, www.lyondellbasell.com/teleconference, for a complete listing of toll-free numbers by country. The pass code for all numbers is 1037125.

A replay of the call will be available from 3 p.m. ET July 27 to 11 p.m. ET on August 27. The replay dial-in numbers are 866-418-8384 (U.S.) and +1 203-369-0754 (international). The pass code for each is 2378.

A copy of the slides that accompany the call will be available on the LyondellBasell website at http://www.lyondellbasell.com/earnings.

ABOUT LYONDELLBASELL

LyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 58 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 components, home furnishings, construction materials and biofuels. More information about LyondellBasell can be found at www.lyondellbasell.com.

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; 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, 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.

NON-GAAP MEASURES

This release makes reference to certain "non-GAAP" financial measures 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 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.

We have included EBITDA in this press release. 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 release, 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, and the effect of mark-to-market accounting on our warrants. 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 alternatives to operating cash flows as a measure of our liquidity.

Quantitative reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures are provided in Tables 8 and 9 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.

Media Contact:	David A. Harpole +1 713-309-4125
Investor Contact:	Douglas J. Pike +1 713-309-7141

Table 8 - Reconciliation of Segment Information to Consolidated Financial Information

				2011										2012
	(Millions of U.S. dollars)			Q1		Q2		Q3		Q4		Total		Q1		Q2		YTD
	Sales and other operating revenues:
		Olefins & Polyolefins - Americas		$	3,572	$	4,010	$	3,875	$	3,423	$	14,880	$	3,349	$	3,283	$	6,632
		Olefins & Polyolefins - Europe, Asia, International			3,988		4,292		3,954		3,357		15,591		3,898		3,575		7,473
		Intermediates & Derivatives			2,331		2,536		2,491		2,142		9,500		2,485		2,285		4,770
		Refining			2,867		3,996		3,955		2,888		13,706		3,203		3,496		6,699
		Technology			139		126		129		112		506		119		115		234
		Other/elims			(1,517)		(1,654)		(1,888)		(941)		(6,000)		(1,320)		(1,506)		(2,826)
			Continuing Operations	$	11,380	$	13,306	$	12,516	$	10,981	$	48,183	$	11,734	$	11,248	$	22,982
			Discontinued Operations	$	872	$	736	$	781	$	463	$	2,852	$	145	$	42	$	187
	Operating income (loss):
		Olefins & Polyolefins - Americas		$	421	$	508	$	598	$	328	$	1,855	$	519	$	700	$	1,219
		Olefins & Polyolefins - Europe, Asia, International			175		203		130		(73)		435		3		203		206
		Intermediates & Derivatives			276		327		368		185		1,156		370		390		760
		Refining			158		258		390		3		809		10		124		134
		Technology			66		23		7		11		107		38		30		68
		Other			(1)		(9)		- -		(15)		(25)		- -		2		2
			Continuing Operations	$	1,095	$	1,310	$	1,493	$	439	$	4,337	$	940	$	1,449	$	2,389
			Discontinued Operations	$	(30)	$	(45)	$	(26)	$	(238)	$	(339)	$	6	$	(15)	$	(9)
	Depreciation and amortization:
		Olefins & Polyolefins - Americas		$	58	$	59	$	64	$	65	$	246	$	65	$	71	$	136
		Olefins & Polyolefins - Europe, Asia, International			57		66		69		70		262		69		69		138
		Intermediates & Derivatives			44		48		46		48		186		47		48		95
		Refining			32		35		37		49		153		38		37		75
		Technology			24		16		21		23		84		18		19		37
		Other			- -		- -		- -		- -		- -		- -		- -		- -
			Continuing Operations	$	215	$	224	$	237	$	255	$	931	$	237	$	244	$	481
			Discontinued Operations	$	- -	$	- -	$	- -	$	- -	$	- -	$	- -	$	- -	$	- -
	EBITDA: ^(a)
		Olefins & Polyolefins - Americas		$	484	$	577	$	672	$	407	$	2,140	$	598	$	776	$	1,374
		Olefins & Polyolefins - Europe, Asia, International			329		273		247		45		894		101		335		436
		Intermediates & Derivatives			321		419		417		235		1,392		418		455		873
		Refining			190		293		427		67		977		48		161		209
		Technology			91		42		45		36		214		57		49		106
		Other			5		(11)		(2)		(24)		(32)		6		(2)		4
			Continuing Operations	$	1,420	$	1,593	$	1,806	$	766	$	5,585	$	1,228	$	1,774	$	3,002
			Discontinued Operations	$	(18)	$	(40)	$	(18)	$	(230)	$	(306)	$	8	$	(15)	$	(7)
	Capital, turnarounds and IT deferred
		spending:
		Olefins & Polyolefins - Americas		$	66	$	138	$	149	$	72	$	425	$	102	$	135	$	237
		Olefins & Polyolefins - Europe, Asia, International			42		37		46		110		235		60		39		99
		Intermediates & Derivatives			5		15		26		55		101		18		24		42
		Refining			96		49		45		34		224		38		27		65
		Technology			7		3		8		8		26		9		8		17
		Other			1		10		- -		6		17		2		3		5
			Total		217		252		274		285		1,028		229		236		465
		Deferred charges included above			(1)		- -		(2)		(4)		(7)		(1)		(3)		(4)
			Continuing Operations	$	216	$	252	$	272	$	281	$	1,021	$	228	$	233	$	461
			Discontinued Operations	$	5	$	9	$	7	$	8	$	29	$	- -	$	- -	$	- -


(a) See Table 9 for a reconciliation of total EBITDA to net income.

Table 9 - Reconciliation of EBITDA to Income from Continuing Operations

				2011										2012
	(Millions of U.S. dollars)			Q1		Q2		Q3		Q4		Total		Q1		Q2		YTD
	Segment EBITDA:
		Olefins & Polyolefins - Americas		$	484	$	577	$	672	$	407	$	2,140	$	598	$	776	$	1,374
		Olefins & Polyolefins - Europe, Asia,
			International		329		273		247		45		894		101		335		436
		Intermediates & Derivatives			321		419		417		235		1,392		418		455		873
		Refining			190		293		427		67		977		48		161		209
		Technology			91		42		45		36		214		57		49		106
		Other			5		(11)		(2)		(24)		(32)		6		(2)		4
	Total EBITDA				1,420		1,593		1,806		766		5,585		1,228		1,774		3,002
	Adjustments to EBITDA:
		Lower of cost or market inventory
			adjustment		- -		- -		- -		- -		- -		- -		71		71
		Sale of precious metals			- -		(41)		- -		- -		(41)		- -		- -		- -
		Corporate restructurings			- -		61		14		18		93		- -		- -		- -
		Environmental accruals			- -		16		- -		- -		16		- -		- -		- -
		Settlement related to Houston refinery
			crane incident		- -		- -		- -		(15)		(15)		- -		- -		- -
		Insurance settlement			(34)		- -		- -		- -		(34)		- -		(100)		(100)
	Total Adjusted EBITDA				1,386		1,629		1,820		769		5,604		1,228		1,745		2,973
	Add:
		Income from equity investments			58		73		52		33		216		46		27		73
	Deduct:
		Adjustments to EBITDA			34		(36)		(14)		(3)		(19)		- -		29		29
		Depreciation and amortization			(215)		(224)		(237)		(255)		(931)		(237)		(244)		(481)
		Impairment charges			- -		(4)		(19)		- -		(23)		(22)		- -		(22)
		Asset retirement obligation			- -		- -		(10)		- -		(10)		- -		- -		- -
		Reorganization items			(2)		(28)		- -		(15)		(45)		5		(1)		4
		Interest expense, net			(155)		(164)		(145)		(542)		(1,006)		(95)		(409)		(504)
		Joint venture dividends received			(96)		(11)		(55)		(44)		(206)		(14)		(73)		(87)
		Provision for income taxes			(263)		(388)		(506)		98		(1,059)		(301)		(306)		(607)
		Non-controlling interests			(3)		(1)		- -		(3)		(7)		(1)		(2)		(3)
		Fair value change in warrants			(59)		6		22		(6)		(37)		(10)		- -		(10)
		Other			(3)		(1)		3		(5)		(6)		(5)		2		(3)
	Income from continuing operations				682		851		911		27		2,471		594		768		1,362
		Adjustments to EBITDA			(34)		36		14		3		19		- -		(29)		(29)
		Premiums and charges on early
			repayment of debt		- -		12		- -		431		443		- -		329		329
		Reorganization items			2		28		- -		15		45		(5)		- -		(5)
		Asset retirement obligation			- -		- -		10		- -		10		- -		- -		- -
		Fair value change in warrants			59		(6)		(22)		6		37		10		- -		10
		Impairment charges			- -		4		19		- -		23		22		- -		22
		Tax impact of net income (loss)
			adjustments		11		(21)		(5)		(154)		(169)		(5)		(109)		(114)
	Adjusted income from continuing operations			$	720	$	904	$	927	$	328	$	2,879	$	616	$	959	$	1,575
	Earnings (loss) per share:
		Diluted earnings per share –
			continuing operations	$	1.19	$	1.46	$	1.54	$	0.05	$	4.32	$	1.03	$	1.33	$	2.36
		Adjustments to continuing operations			0.07		0.09		0.03		0.52		0.69		0.04		0.32		0.36
		Adjusted diluted earnings per share		$	1.26	$	1.55	$	1.57	$	0.57	$	5.01	$	1.07	$	1.65	$	2.72

Table 10 - Selected Segment Operating Information

					2011					2012
					Q1	Q2	Q3	Q4	YTD	Q1	Q2	YTD
	Olefins and Polyolefins - Americas
		Volumes (million pounds)
			Ethylene produced		2,089	1,929	2,134	2,201	8,353	1,988	2,134	4,122
			Propylene produced		769	556	838	744	2,907	533	615	1,148
			Polyethylene sold		1,405	1,377	1,368	1,343	5,493	1,448	1,316	2,764
			Polypropylene sold		585	611	635	640	2,471	650	634	1,284
		Benchmark Market Prices
			West Texas Intermediate crude oil (USD
				per barrel)	94.60	102.34	89.54	94.06	95.11	103.03	93.35	98.15
			Light Louisiana Sweet ("LLS") crude oil (USD
				per barrel)	107.83	118.34	112.46	110.81	112.40	119.85	108.24	114.00
			Natural gas (USD per million BTUs)		4.19	4.43	4.31	3.64	4.14	2.65	2.33	2.49
			U.S. weighted average cost of ethylene production
				(cents/pound)	32.6	33.8	34.3	41.6	35.6	28.5	18.4	23.4
			U.S. ethylene (cents/pound)		49.3	57.5	55.8	54.4	54.3	54.9	46.9	50.9
			U.S. polyethylene [high density] (cents/pound)		61.7	68.7	63.0	59.7	63.3	67.0	63.0	65.0
			U.S. propylene (cents/pound)		71.7	87.3	76.5	57.8	73.3	67.2	64.2	65.7
			U.S. polypropylene [homopolymer] (cents/pound)		89.3	99.7	90.2	70.7	87.5	81.2	76.7	78.9

	Olefins and Polyolefins - Europe, Asia, International
		Volumes (million pounds)
			Ethylene produced		997	999	926	807	3,729	947	930	1,877
			Propylene produced		608	631	560	487	2,286	577	562	1,139
			Polyethylene sold		1,305	1,279	1,349	1,210	5,143	1,316	1,137	2,453
			Polypropylene sold		1,704	1,631	1,638	1,651	6,624	1,659	1,448	3,107
		Benchmark Market Prices
			Western Europe weighted average cost of ethylene
				production (€0.01 per pound)	34.7	35.4	37.3	38.5	36.5	45.4	31.7	38.5
			Western Europe ethylene (€0.01 per pound)		52.0	54.7	50.3	49.7	51.7	55.1	58.6	56.8
			Western Europe polyethylene [high density] (€0.01
				per pound)	55.9	59.3	54.0	52.5	55.4	58.6	60.9	59.7
			Western Europe propylene (€0.01 per pound)		50.8	55.3	50.2	46.5	50.7	50.1	54.1	52.1
			Western Europe polypropylene [homopolymer] (€0.01
				per pound)	61.3	63.8	57.0	53.0	58.8	57.9	60.4	59.2

	Intermediates and Derivatives
		Volumes (million pounds)
			Propylene oxide and derivatives		838	791	758	716	3,103	828	800	1,628
			Ethylene oxide and derivatives		288	277	281	254	1,100	312	275	587
			Styrene monomer		852	817	714	682	3,065	704	678	1,382
			Acetyls		439	417	411	370	1,637	489	444	933
			TBA Intermediates		485	459	433	418	1,795	462	448	910
		Volumes (million gallons)
			MTBE/ETBE		192	206	260	210	868	205	196	401
		Benchmark Market Margins
			MTBE - Northwest Europe (cents per gallon)		58.9	92.7	94.1	87.0	83.1	125.1	122.0	123.6

	Refining
		Volumes
			Houston Refining crude processing rate (thousands of
				barrels per day)	258	263	269	262	263	259	267	263
		Benchmark Market Margins
			Light crude oil - 2-1-1		6.00	10.28	9.54	5.26	7.80	9.34	14.04	11.71
			Light crude oil - Maya differential		17.87	15.50	13.99	7.45	13.76	10.81	9.12	9.84


Note - Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices.

Source: CMAI, Bloomberg, LyondellBasell Industries

Table 11 - Unaudited Income Statement Information

				2011										2012
	(Millions of U.S. dollars)			Q1		Q2		Q3		Q4		Total		Q1		Q2		YTD
	Sales and other operating
		revenues		$	11,380	$	13,306	$	12,516	$	10,981	$	48,183	$	11,734	$	11,248	$	22,982
	Cost of sales				10,037		11,704		10,734		10,257		42,732		10,532		9,561		20,093
	Selling, general and
		administrative expenses			215		236		236		231		918		223		201		424
	Research and development
		expenses			33		56		53		54		196		39		37		76
		Operating income			1,095		1,310		1,493		439		4,337		940		1,449		2,389
	Income from equity investments				58		73		51		33		215		46		27		73
	Interest expense, net				(156)		(163)		(146)		(542)		(1,007)		(95)		(409)		(504)
	Other income (expense), net				(50)		47		19		14		30		(1)		8		7
		Income before income taxes
			and reorganization items		947		1,267		1,417		(56)		3,575		890		1,075		1,965
	Reorganization items				(2)		(28)		- -		(15)		(45)		5		(1)		4
		Income (loss) before taxes			945		1,239		1,417		(71)		3,530		895		1,074		1,969
	Provision for (benefit from)
		income taxes			263		388		506		(98)		1,059		301		306		607
	Income from continuing
		operations			682		851		911		27		2,471		594		768		1,362
	Income (loss) from discontinued
		operations, net of tax			(22)		(48)		(16)		(245)		(331)		5		- -		5
	Net income (loss)				660		803		895		(218)		2,140		599		768		1,367
	Net loss attributable to
		non-controlling interests			3		1		- -		3		7		1		2		3
	Net income (loss) attributable to
		the Company		$	663	$	804	$	895	$	(215)	$	2,147	$	600	$	770	$	1,370

Table 12 - Unaudited Cash Flow Information

			2011										2012
	(Millions of U.S. dollars)		Q1			Q2		Q3		Q4		Total	Q1			Q2		YTD
	Net cash provided by
		operating activities	$	221	$	1,026	$	1,531	$	91	$	2,869	$	921	$	509	$	1,430

	Net cash used in
		investing activities		(216)		(435)		(320)		(50)		(1,021)		(185)		(245)		(430)

	Net cash provided by (used in)
		financing activities		28		(327)		(118)		(4,547)		(4,964)		(148)		50		(98)

Table 13 - Unaudited Balance Sheet Information

					March 31,		June 30,		September 30,		December 31,		March 31,		June 30,
	(Millions of U.S. dollars)				2011		2011		2011		2011		2012		2012
	Cash and cash equivalents				$	4,383	$	4,687	$	5,609	$	1,065	$	1,670	$	1,950
	Restricted cash					- -		250		292		53		9		14
	Accounts receivable, net					4,764		4,901		4,038		3,778		4,209		3,888
	Inventories					5,726		5,577		5,682		5,499		5,208		5,759
	Prepaid expenses and other
		current assets				1,100		1,098		1,097		1,040		1,002		755
			Total current assets			15,973		16,513		16,718		11,435		12,098		12,366
	Property, plant and equipment, net					7,440		7,569		7,363		7,333		7,426		7,237
	Investments and long-term
		receivables:
			Investment in PO joint
				ventures		444		436		422		412		415		411
			Equity investments			1,586		1,654		1,594		1,559		1,605		1,521
			Related party receivable			14		19		4		4		4		- -
			Other investments and
				long-term receivables		66		63		67		68		72		70
	Goodwill					807		621		598		585		595		576
	Intangible assets, net					1,344		1,310		1,237		1,177		1,149		1,103
	Other assets, net					274		290		264		266		245		261
			Total assets		$	27,948	$	28,475	$	28,267	$	22,839	$	23,609	$	23,545

	Current maturities of long-term debt				$	253	$	2	$	2	$	4	$	- -	$	- -
	Short-term debt					51		50		49		48		42		48
	Accounts payable					4,099		3,999		3,307		3,414		3,545		3,004
	Accrued liabilities					1,711		1,613		1,505		1,242		1,049		915
	Deferred income taxes					246		315		315		310		310		277
			Total current liabilities			6,360		5,979		5,178		5,018		4,946		4,244
	Long-term debt					5,805		5,813		5,782		3,980		3,984		4,305
	Other liabilities					2,043		2,110		2,021		2,277		2,281		2,208
	Deferred income taxes					1,027		947		1,204		917		1,035		1,245
	Stockholders' equity					12,671		13,579		14,025		10,593		11,310		11,492
	Non-controlling interests					42		47		57		54		53		51
			Total liabilities and
				stockholders' equity	$	27,948	$	28,475	$	28,267	$	22,839	$	23,609	$	23,545

Appendix A - Reconciliation of Segment Information to Consolidated Financial Information – As Previously Reported

							2011										2012
					May 1 -
	(Millions of U.S. dollars)				December 31		Q1		Q2		Q3		Q4		Total		Q1
	Sales and other operating revenues:
		Olefins & Polyolefins - Americas			$	8,406	$	3,572	$	4,010	$	3,875	$	3,423	$	14,880	$	3,349
		Olefins & Polyolefins - Europe, Asia,
			International			8,729		3,944		4,264		3,918		3,334		15,460		3,866
		Intermediates & Derivatives				3,754		1,692		1,777		1,617		1,401		6,487		1,699
		Refining & Oxyfuels				10,321		4,720		5,833		5,869		4,311		20,733		4,261
		Technology				365		139		126		129		112		506		119
		Other/elims				(3,891)		(1,815)		(1,968)		(2,111)		(1,137)		(7,031)		(1,415)
			Total		$	27,684	$	12,252	$	14,042	$	13,297	$	11,444	$	51,035	$	11,879
	Operating income (loss):
		Olefins & Polyolefins - Americas			$	1,043	$	421	$	509	$	599	$	328	$	1,857	$	519
		Olefins & Polyolefins - Europe, Asia,
			International			411		179		207		144		(55)		475		5
		Intermediates & Derivatives				512		234		235		259		134		862		245
		Refining & Oxyfuels				241		164		296		454		(196)		718		140
		Technology				69		66		23		7		11		107		38
		Other				(22)		1		(5)		4		(21)		(21)		(1)
		Current cost adjustment				- -		- -		- -		- -		- -		- -		- -
			Total		$	2,254	$	1,065	$	1,265	$	1,467	$	201	$	3,998	$	946
	Depreciation and amortization:
		Olefins & Polyolefins - Americas			$	151	$	58	$	59	$	64	$	65	$	246	$	65
		Olefins & Polyolefins - Europe, Asia,
			International			146		57		66		69		70		262		69
		Intermediates & Derivatives				81		34		37		35		36		142		35
		Refining & Oxyfuels				107		42		46		48		61		197		50
		Technology				78		24		16		21		23		84		18
		Other				(5)		- -		- -		- -		- -		- -		- -
			Total		$	558	$	215	$	224	$	237	$	255	$	931	$	237
	EBITDA:
		Olefins & Polyolefins - Americas			$	1,195	$	484	$	578	$	673	$	407	$	2,142	$	598
		Olefins & Polyolefins - Europe, Asia,
			International			588		333		275		261		62		931		103
		Intermediates & Derivatives				599		270		314		297		173		1,054		282
		Refining & Oxyfuels				373		210		353		519		(110)		972		192
		Technology				151		91		42		45		36		214		57
		Other				(1)		14		(9)		(7)		(32)		(34)		4
			Total EBITDA			2,905		1,402		1,553		1,788		536		5,279		1,236
			LCM inventory valuation
				adjustments		42		- -		- -		- -		- -		- -		- -
			Total excluding LCM inventory
				valuation adjustments	$	2,947	$	1,402	$	1,553	$	1,788	$	536	$	5,279	$	1,236
	Capital, turnarounds and IT deferred
		spending:
		Olefins & Polyolefins - Americas			$	146	$	66	$	138	$	149	$	72	$	425	$	102
		Olefins & Polyolefins - Europe, Asia,
			International			106		42		37		46		110		235		60
		Intermediates & Derivatives				76		5		15		25		54		99		18
		Refining & Oxyfuels				108		101		58		53		43		255		38
		Technology				19		7		3		8		8		26		9
		Other				26		1		10		- -		6		17		2
			Total			481		222		261		281		293		1,057		229
		Deferred charges included above				(15)		(1)		- -		(2)		(4)		(7)		(1)
			Capital expenditures		$	466	$	221	$	261	$	279	$	289	$	1,050	$	228

Appendix B - Reconciliation of Segment Information to Consolidated Financial Information – Realignment for Oxyfuels

					2010		2011										2012
					May 1 -
	(Millions of U.S. dollars)				December 31		Q1		Q2		Q3		Q4		Total		Q1
	Sales and other operating revenues:
		Olefins & Polyolefins - Americas			$	8,406	$	3,572	$	4,010	$	3,875	$	3,423	$	14,880	$	3,349
		Olefins & Polyolefins - Europe, Asia, International				8,729		3,944		4,264		3,918		3,334		15,460		3,866
		Intermediates & Derivatives				5,414		2,341		2,556		2,511		2,149		9,557		2,485
		Refining				8,692		4,081		5,074		4,995		3,570		17,720		3,475
		Technology				365		139		126		129		112		506		119
		Other/elims				(3,922)		(1,825)		(1,988)		(2,131)		(1,144)		(7,088)		(1,415)
		Total			$	27,684	$	12,252	$	14,042	$	13,297	$	11,444	$	51,035	$	11,879
	Operating income (loss):
		Olefins & Polyolefins - Americas			$	1,043	$	421	$	509	$	599	$	328	$	1,857	$	519
		Olefins & Polyolefins - Europe, Asia, International				411		179		207		144		(55)		475		5
		Intermediates & Derivatives				626		275		323		366		186		1,150		370
		Refining				127		123		208		347		(248)		430		15
		Technology				69		66		23		7		11		107		38
		Other				(22)		1		(5)		4		(21)		(21)		(1)
		Total			$	2,254	$	1,065	$	1,265	$	1,467	$	201	$	3,998	$	946
	Depreciation and amortization:
		Olefins & Polyolefins - Americas			$	151	$	58	$	59	$	64	$	65	$	246	$	65
		Olefins & Polyolefins - Europe, Asia, International				146		57		66		69		70		262		69
		Intermediates & Derivatives				105		44		48		46		48		186		47
		Refining				83		32		35		37		49		153		38
		Technology				78		24		16		21		23		84		18
		Other				(5)		-		-		-		-		-		-
		Total			$	558	$	215	$	224	$	237	$	255	$	931	$	237
	EBITDA:
		Olefins & Polyolefins - Americas			$	1,195	$	484	$	578	$	673	$	407	$	2,142	$	598
		Olefins & Polyolefins - Europe, Asia, International				588		333		275		261		62		931		103
		Intermediates & Derivatives				744		320		415		415		236		1,386		418
		Refining				228		160		252		401		(173)		640		56
		Technology				151		91		42		45		36		214		57
		Other				(1)		14		(9)		(7)		(32)		(34)		4
		Total EBITDA				2,905		1,402		1,553		1,788		536		5,279		1,236
		LCM inventory valuation adjustments				42		-		-		-		-		-		-
				Total excluding LCM inventory valuation adjustments	$	2,947	$	1,402	$	1,553	$	1,788	$	536	$	5,279	$	1,236
	Capital, turnarounds and IT deferred spending:
		Olefins & Polyolefins - Americas			$	146	$	66	$	138	$	149	$	72	$	425	$	102
		Olefins & Polyolefins - Europe, Asia, International				106		42		37		46		110		235		60
		Intermediates & Derivatives				79		5		15		26		55		101		18
		Refining				105		101		58		52		42		253		38
		Technology				19		7		3		8		8		26		9
		Other				26		1		10		-		6		17		2
			Total			481		222		261		281		293		1,057		229
		Deferred charges included above				(15)		(1)		-		(2)		(4)		(7)		(1)
			Capital expenditures		$	466	$	221	$	261	$	279	$	289	$	1,050	$	228

Appendix C - Reconciliation of Segment Information to Consolidated Financial Information – Discontinued Operations - Berre Refinery

					2010		2011										2012
					May 1 -
	(Millions of U.S. dollars)				December 31		Q1		Q2		Q3		Q4		Total		Q1
	Sales and other operating revenues:
		Olefins & Polyolefins - Americas			$	8,406	$	3,572	$	4,010	$	3,875	$	3,423	$	14,880	$	3,349
		Olefins & Polyolefins - Europe, Asia, International				8,950		3,988		4,292		3,954		3,357		15,591		3,898
		Intermediates & Derivatives				3,723		1,682		1,757		1,597		1,394		6,430		1,699
		Refining & Oxyfuels				7,888		3,506		4,755		4,829		3,629		16,719		3,989
		Technology				365		139		126		129		112		506		119
		Other/elims				(3,200)		(1,507)		(1,634)		(1,868)		(934)		(5,943)		(1,320)
		Continuing Operations			$	26,132	$	11,380	$	13,306	$	12,516	$	10,981	$	48,183	$	11,734
		Discontinued Operations			$	1,552	$	872	$	736	$	781	$	463	$	2,852	$	145
	Operating income (loss):
		Olefins & Polyolefins - Americas			$	1,039	$	421	$	508	$	598	$	328	$	1,855	$	519
		Olefins & Polyolefins - Europe, Asia, International				367		175		203		130		(73)		435		3
		Intermediates & Derivatives				515		235		239		261		133		868		245
		Refining & Oxyfuels				322		199		346		497		55		1,097		135
		Technology				69		66		23		7		11		107		38
		Other				(20)		(1)		(9)		-		(15)		(25)		-
		Continuing Operations			$	2,292	$	1,095	$	1,310	$	1,493	$	439	$	4,337	$	940
		Discontinued Operations			$	(38)	$	(30)	$	(45)	$	(26)	$	(238)	$	(339)	$	6
	Depreciation and amortization:
		Olefins & Polyolefins - Americas			$	151	$	58	$	59	$	64	$	65	$	246	$	65
		Olefins & Polyolefins - Europe, Asia, International				147		57		66		69		70		262		69
		Intermediates & Derivatives				81		34		37		35		36		142		35
		Refining & Oxyfuels				106		42		46		48		61		197		50
		Technology				78		24		16		21		23		84		18
		Other				(5)		-		-		-		-		-		-
		Continuing Operations			$	558	$	215	$	224	$	237	$	255	$	931	$	237
	EBITDA:
		Olefins & Polyolefins - Americas			$	1,191	$	484	$	577	$	672	$	407	$	2,140	$	598
		Olefins & Polyolefins - Europe, Asia, International				549		329		273		247		45		894		101
		Intermediates & Derivatives				602		271		318		299		172		1,060		282
		Refining & Oxyfuels				429		240		394		545		130		1,309		184
		Technology				151		91		42		45		36		214		57
		Other				8		5		(11)		(2)		(24)		(32)		6
		Continuing Operations				2,930		1,420		1,593		1,806		766		5,585		1,228
			LCM inventory valuation adjustments			42		-		-		-		-		-		-
			Continuing Operations excluding
				LCM inventory valuation adjustments	$	2,972	$	1,420	$	1,593	$	1,806	$	766	$	5,585	$	1,228
		Discontinued Operations			$	(25)	$	(18)	$	(40)	$	(18)	$	(230)	$	(306)	$	8
	Capital, turnarounds and IT deferred spending:
		Olefins & Polyolefins - Americas			$	146	$	66	$	138	$	149	$	72	$	425	$	102
		Olefins & Polyolefins - Europe, Asia, International				106		42		37		46		110		235		60
		Intermediates & Derivatives				76		5		15		25		54		99		18
		Refining & Oxyfuels				83		96		49		46		35		226		38
		Technology				19		7		3		8		8		26		9
		Other				26		1		10		-		6		17		2
		Total				456		217		252		274		285		1,028		229
		Deferred charges included above				(15)		(1)		-		(2)		(4)		(7)		(1)
		Capital expenditures of Continuing Operations			$	441	$	216	$	252	$	272	$	281	$	1,021	$	228
		Discontinued Operations			$	25	$	5	$	9	$	7	$	8	$	29	$	-


Note - Segment results for the periods presented above have been recast from amounts previously reported to reflect the effect of discontinued operations related to the shutdown of our Berre refinery in France and the realignment of our Oxyfuels business

Appendix D - Reconciliation of Segment Information to Consolidated Financial Information – Recast for Segment Realignment and Discontinued Operations

				2010		2011										2012
				May 1 -
	(Millions of U.S. dollars)			December 31		Q1		Q2		Q3		Q4		Total		Q1
	Sales and other operating revenues:
		Olefins & Polyolefins - Americas		$	8,406	$	3,572	$	4,010	$	3,875	$	3,423	$	14,880	$	3,349
		Olefins & Polyolefins - Europe, Asia, International			8,950		3,988		4,292		3,954		3,357		15,591		3,898
		Intermediates & Derivatives			5,383		2,331		2,536		2,491		2,142		9,500		2,485
		Refining			6,259		2,867		3,996		3,955		2,888		13,706		3,203
		Technology			365		139		126		129		112		506		119
		Other/elims			(3,231)		(1,517)		(1,654)		(1,888)		(941)		(6,000)		(1,320)
		Continuing Operations		$	26,132	$	11,380	$	13,306	$	12,516	$	10,981	$	48,183	$	11,734
		Discontinued Operations		$	1,552	$	872	$	736	$	781	$	463	$	2,852	$	145
	Operating income (loss):
		Olefins & Polyolefins - Americas		$	1,039	$	421	$	508	$	598	$	328	$	1,855	$	519
		Olefins & Polyolefins - Europe, Asia, International			367		175		203		130		(73)		435		3
		Intermediates & Derivatives			629		276		327		368		185		1,156		370
		Refining			208		158		258		390		3		809		10
		Technology			69		66		23		7		11		107		38
		Other			(20)		(1)		(9)		-		(15)		(25)		-
		Continuing Operations		$	2,292	$	1,095	$	1,310	$	1,493	$	439	$	4,337	$	940
		Discontinued Operations		$	(38)	$	(30)	$	(45)	$	(26)	$	(238)	$	(339)	$	6
	Depreciation and amortization:
		Olefins & Polyolefins - Americas		$	151	$	58	$	59	$	64	$	65	$	246	$	65
		Olefins & Polyolefins - Europe, Asia, International			147		57		66		69		70		262		69
		Intermediates & Derivatives			105		44		48		46		48		186		47
		Refining			82		32		35		37		49		153		38
		Technology			78		24		16		21		23		84		18
		Other			(5)		-		-		-		-		-		-
		Continuing Operations		$	558	$	215	$	224	$	237	$	255	$	931	$	237
	EBITDA:
		Olefins & Polyolefins - Americas		$	1,191	$	484	$	577	$	672	$	407	$	2,140	$	598
		Olefins & Polyolefins - Europe, Asia, International			549		329		273		247		45		894		101
		Intermediates & Derivatives			747		321		419		417		235		1,392		418
		Refining			284		190		293		427		67		977		48
		Technology			151		91		42		45		36		214		57
		Other			8		5		(11)		(2)		(24)		(32)		6
		Total EBITDA			2,930		1,420		1,593		1,806		766		5,585		1,228
		LCM inventory valuation adjustments			42		-		-		-		-		-		-
			Continuing Operations excluding
			LCM inventory valuation adjustments	$	2,972	$	1,420	$	1,593	$	1,806	$	766	$	5,585	$	1,228
		Discontinued Operations		$	(25)	$	(18)	$	(40)	$	(18)	$	(230)	$	(306)	$	8
	Capital, turnarounds and IT deferred spending:
		Olefins & Polyolefins - Americas		$	146	$	66	$	138	$	149	$	72	$	425	$	102
		Olefins & Polyolefins - Europe, Asia, International			106		42		37		46		110		235		60
		Intermediates & Derivatives			79		5		15		26		55		101		18
		Refining			80		96		49		45		34		224		38
		Technology			19		7		3		8		8		26		9
		Other			26		1		10		-		6		17		2
		Total			456		217		252		274		285		1,028		229
		Deferred charges included above			(15)		(1)		- -		(2)		(4)		(7)		(1)
		Capital expenditures of Continuing Operations		$	441	$	216	$	252	$	272	$	281	$	1,021	$	228
		Discontinued Operations		$	25	$	5	$	9	$	7	$	8	$	29	$	-


Note - Segment results for the periods presented above have been recast from amounts previously reported to reflect the effect of discontinued operations related to the shutdown of our Berre refinery in France and the realignment of our Oxyfuels business.