LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q2 2017 Earnings Presentation
17 slides from LyondellBasell Industries NV's earnings presentation, Jul 28, 2017
Slide 1: Second Quarter 2017 Earnings
Second Quarter 2017 Earnings July 28, 2017 www.lyondellbasell.com Company confidential 1
Slide 2: Cautionary Statement
Cautionary Statement 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 ri
Slide 3: Information Related to Financial Measures
Information Related to Financial Measures This presentation makes reference to certain “non-GAAP” financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. The non-GAAP measures we have presented include income from continuing operations excluding LCM, di
Slide 4: Second Quarter 2017 Highlights
Second Quarter 2017 Highlights As Reported Excluding LCM(1) ($ in millions, except per share data) 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 EBITDA $1,783 $1,617 $1,970 $1,715 $1,617 $1,970 Income from Continuing Operations $1,092 $805 $1,134 $1,045 $805 $1,134 Diluted Earnings ($ / share) from Continuing Opera
Slide 5: Dedicated to Continue LyondellBasell's Strong Safety Performance
Dedicated to Continue LyondellBasell’s Strong Safety Performance Safety - Injuries per 200,000 Hours Worked(1) LyondellBasell ACC 2016 Average 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2012 2013 2014 2015 2016 2017 (Q2 YTD) (1) Source: American Chemistry Council. Includes employees and contractors. www.lyo
Slide 6: Focus on Safety Drives Reliable and Cost Efficient Operations
Focus on Safety Drives Reliable and Cost Efficient Operations 2Q17 Ethylene 2Q17 Polyethylene 2Q17 Refinery Crude Operating Rate(1) Operating Rate(1) Throughput(2) 100% 100% 100% 96% 95% 95% 92% 90% 90% 88% 85% 85% 84% 80% 80% 80% 75% 75% EU U.S. Global EU U.S. Global U.S. Houston Industry Industry
Slide 7: LYB Investments in Ethylene Expansions Delivering Value for 2017
LYB Investments in Ethylene Expansions Delivering Value for 2017 LYB O&P Americas Ethylene Capacity Availability lb, millions 12,000 800 11,720 11,000 250 (1,200) 800 10,000 120 (950) 9,750 9,000 8,000 2013 2013 2014 2014 2015 2016 2017 2017 Pre Midwest LaPorte LaPorte Channelview Corpus Corpus Post
Slide 8: High Reliability & Expanded Capacity Driving 2017 Volumes
High Reliability & Expanded Capacity Driving 2017 Volumes Ethylene Derivative Ethylene Production Crude Processing Rate Production(1) lb, billions lb, billions BPD, thousands 8.0 5.2 270 7.5 + 15% 5.1 + 5% 240 + 24% 7.0 5.0 210 6.5 4.9 180 6.0 4.8 150 1H16 1H17 1H16 1H17 1H16 1H17 Cracker Turnaround
Slide 9: Second Quarter 2017 and LTM Segment EBITDA
Second Quarter 2017 and LTM Segment EBITDA Second Quarter 2017 LTM June 2017(1) (USD, millions) EBITDA Op. Income (USD, millions) EBITDA Op. Income As Reported $1,970 $1,577 As Reported $6,599 $5,084 As Adjusted for LCM $1,970 $1,577 As Adjusted for LCM $6,628 $5,113 Second Quarter 2017 EBITDA LTM J
Slide 10: Cash and Liquid Investments Allocation
Cash and Liquid Investments Allocation Second Quarter 2017 LTM June 2017 USD, millions USD, millions $4,000 $9,000 7,500 3,000 6,000 2,560 2,000 2,159 4,500 3,000 1,000 2,549 2,560 1,500 (1) (2) (3) (1) (1) (2) (3) (1) 2Q17 CF from Working CAPEX Dividends & Net Debt Other 2Q17 3Q16 CF from Working C
Slide 11: Strong Cash Generation, Dividends & Share Repurchases
Strong Cash Generation, Dividends & Share Repurchases Cash From Operations Dividends & Share Repurchases USD, millions USD, millions Free Cash Flow Capex Quarterly Dividends Share Repurchases $7,000 $1,200 6,000 900 5,000 4,000 600 3,000 2,000 300 1,000 2014 2015 2016 2Q17 LTM 3Q16 4Q16 1Q17 2Q17 Sn
Slide 12: Olefins and Polyolefins – Americas Highlights and Business Drivers – 2Q17
Olefins and Polyolefins – Americas Highlights and Business Drivers – 2Q17 EBITDA ex. LCM Performance vs. 1Q17(1) USD, millions As Reported Excluding LCM EBITDA Margin Volume U.S. Olefins $1,000 Ethylene margin up 3 ¢/lb 800 600 Polyethylene Spread up 4 ¢/lb on improved 400 polyolefin pricing and
Slide 13: Olefins and Polyolefins – Europe, Asia, and International Highlights and Business Drivers – 2Q17
Olefins and Polyolefins – Europe, Asia, and International Highlights and Business Drivers – 2Q17 EBITDA ex. LCM Performance vs. 1Q17(1) USD, millions As Reported Excluding LCM EBITDA Margin Volume $800 EU Olefins Ethylene price up 3 ¢/lb Volume up 5% 600 Polyethylene 400 200 Polypropylene 2Q16 3
Slide 14: Intermediates and Derivatives Highlights and Business Drivers – 2Q17
Intermediates and Derivatives Highlights and Business Drivers – 2Q17 EBITDA ex. LCM Performance vs. 1Q17(1) USD, millions As Reported Excluding LCM EBITDA Margin Volume $500 Propylene Oxide and Derivatives 400 Intermediate Chemicals 300 Methanol volume down due to planned maintenance 200 Styrene
Slide 15: Refining Highlights and Business Drivers – 2Q17
Refining Highlights and Business Drivers – 2Q17 EBITDA Performance vs. 1Q17(1) USD, millions EBITDA Margin Volume As Reported Houston Refinery $100 Crude throughput: 265 MBPD Yield improvements post 1Q17 planned maintenance 50 Unfavorable Maya 2-1-1 -50 2Q16 3Q16 4Q16 1Q17 2Q17 Refining Spread
Slide 16: Update on Major Growth Projects
Update on Major Growth Projects La Porte Hyperzone Polyethylene Propylene Oxide / TBA ■ 1.1 billion pounds per year ■ 1.0 billion pounds Propylene Oxide, 2.2 billion pounds TBA ■ Est. cost: ~$725 million ■ Est. cost: ~$2.4 billion ■ Groundbreaking – May 2017 ■ Groundbreaking – Mid 2018 ■ Startup 201
Slide 17: Second Quarter Summary and Outlook
Second Quarter Summary and Outlook Second Quarter Summary Near-Term Outlook ■ Record quarterly diluted EPS of $2.82 ■ Continued strong operating performance, no major planned maintenance in 2H 2017 ■ Record quarterly results: ■ Global olefin and polyolefin demand growth Olefins & Polyolefins – EAI r
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