LyondellBasell Industries NV · NYSE:LYB
LyondellBasell Industries NV — Q2 2011 Earnings Presentation
16 slides from LyondellBasell Industries NV's earnings presentation, Jul 29, 2011
Slide 1: Second-Quarter 2011 Earnings
Second-Quarter 2011 Earnings Jim Gallogly, Chief Executive Officer Kent Potter, Chief Financial Officer Sergey Vasnetsov, SVP – Strategic Planning and Transactions Doug Pike, VP – Investor Relations July 29, 2011
Slide 2: Information Related to Financial Measures
Information Related to Financial Measures 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 companie
Slide 3: Cautionary Statement
Cautionary Statement The information in this presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. Actual outcomes and resu
Slide 4: Highlights
Highlights $, Million (except per share data) 2Q11 1Q11 YTD (1) EBITDA 1,553 1,402 2,955 Net Income 804 663 1,467 Diluted Earnings ($/share) 1.38 1.15 2.56 (2) Net Debt / LTM EBITDA 0.2x 0.4x - QuarterlyEBITDA Quarterly EBITDAincrease increaseof of11% 11%from from1Q11 1Q11 EBITDA(2) May 2010 – June
Slide 5: LyondellBasell Safety Performance
LyondellBasell Safety Performance 0.50 Injuries per 200,000 hours worked (Employees and Contractors) 0.40 0.30 2006 2007 2008 2009 2010 2011 YTD • Overall safety performance remains among the best in the industry lyondellbasell.com Second-Quarter 2011 Earnings 5
Slide 6: Second-Quarter 2011 and Year-to-Date 2011 Segment EBITDA
LyondellBasell Second-Quarter 2011 and Year-to- Date 2011 Segment EBITDA 2Q11 EBITDA June 2011 YTD EBITDA $1,553 million $2,955 million 2Q11 Operating Income June 2011 YTD Operating Income $1,265 million $2,330 million Second-Quarter 2011 EBITDA June 2011 YTD EBITDA 700 1,250 600 1,000 500 750 USD,
Slide 7: Cash Flow
Cash Flow Second Quarter 2011 Since Emergence (May 1, 2010) 5,500 7,500 7,000 5,250 6,500 6,000 5,000 4,937 USD, millions USD, millions 5,500 4,937 4,750 5,000 4,500 4,500 4,383 4,000 3,500 4,250 3,000 2,711 4,000 2,500 (1) (2) (3) May 1, 2010 Cash Flow Working(1) Debt Capex(2) Other 2Q11 (3) 2Q11 C
Slide 8: Working Capital and Liquidity
Working Capital and Liquidity Working Capital (1) Liquidity 8 Liquidity 8 Cash 7 USD, billion 6 6 USD, billion 4 5 2 4 0 3 2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11 -2 -4 Snapshot at June 30, 2011 -6 Total WC Inventory AR AP Liquidity: ~ $7.1 billion Net Debt: ~ $0.9 billion Cash: ~ $4.9 bil
Slide 9: Joint Venture Valuation
Joint Venture Valuation Joint Venture Statistics JV Financial Performance Ownership Products JV Volume (lbs) 300 Dividends Saudi Arabia SEPC 25% Ethylene, PE 2.2B, 1.8B 250 Equity Income USD, millions SPC 25% Propylene, PP 1B, 1.6B 200 Al-Waha 21% Propylene, PP 1B, 1B 150 Asia HMC 29% Propylene, PP
Slide 10: Olefins & Polyolefins – Americas
Olefins & Polyolefins – Americas Highlights and Business Drivers – 2Q11 EBITDA (1) Trend Performance vs. 1Q11 600 EBITDA Margin Volume U.S. Olefins 500 • Expanded ethylene margin USD, million 400 • Channelview OP-2 turnaround • ~80% of ethylene from NGLs 300 Polyethylene 200 • Margin compression on
Slide 11: Olefins & Polyolefins – Europe, Asia, International
Olefins & Polyolefins – Europe, Asia, International Highlights and Business Drivers – 2Q11 EBITDA (1) Trend Performance vs. 1Q11 350 EBITDA Margin Volume 300 EU Olefins • Ethylene plant and butadiene margin USD, million 250 expansion 200 Polyethylene 150 • Relatively unchanged 100 50 Polypropylene (
Slide 12: Intermediates & Derivatives
Intermediates & Derivatives Highlights and Business Drivers – 2Q11 EBITDA (1) Performance vs. 1Q11 350 300 EBITDA Margin Volume 250 Propylene Oxide and Derivatives USD, millions 200 • Lower volumes on end of seasonal aircraft deicer sales 150 100 Intermediates • Increased acetyls and styrene margins
Slide 13: Refining & Oxyfuels
Refining & Oxyfuels Highlights and Business Drivers – 2Q11 EBITDA (1) Trend Performance vs. 1Q11 EBITDA Margin Volume 350 Houston Refinery 300 • Crude thruput: 263 MB/D • Maya 2-1-1: $25.78 / bbl USD, million 250 • Margin expansion, advantaged 200 crudes 150 Berre Refinery 100 • Crude thruput: 85 MB
Slide 14: Technology
Technology Highlights and Business Drivers – 2Q11 Second-Quarter 2011 Results $42 million EBITDA • Continued strong catalyst results • Reduced licensing income, as anticipated Spherilene Technology lyondellbasell.com Second-Quarter 2011 Earnings 14
Slide 15: Second-Quarter Summary and Outlook
Second-Quarter Summary and Outlook Second-Quarter Summary Near-term Outlook • Margin increases over already strong • Asian market improvement first quarter - U.S. and European olefins • Upcoming industry maintenance turnarounds in Asia and U.S. - Houston refinery and oxyfuels • July ethylene chain m
Slide 16: Looking Ahead
Looking Ahead • Continued capacity creep and efficiency improvements – attention to detail and low-cost projects • U.S. olefins feedstock optimization – continue to lighten the mix • U.S. “brownfield” expansions - Ethylene - Polyethylene • “Condo” cracker participation consideration • Propylene oxid
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