LyondellBasell Industries N : Q2 2020 Supplemental Data and non-GAAP Reconciliations (PDF)

Table 1 - Reconciliation of Segment Information to Consolidated Financial Information
								2019												2020
Millions of dollars		Q1			Q2			Q3			Q4			Total			Q1			Q2			Total
Sales and other operating revenues:
Olefins & Polyolefins - Americas	$	2,111	$	2,114	$	2,137	$	2,073	$	8,435	$	1,792	$	1,433	$	3,225
Olefins & Polyolefins - EAI		2,535			2,505			2,309			2,155			9,504			2,224			1,702			3,926
Intermediates & Derivatives		1,894			2,062			2,046			1,832			7,834			1,770			1,157			2,927
Advanced Polymer Solutions		1,339			1,258			1,186			1,067			4,850			1,096			705			1,801
Refining		1,882			2,180			2,134			2,055			8,251			1,448			919			2,367
Technology		141			173			146			203			663			122			177			299
Other/Eliminations		(1,124)			(1,244)			(1,236)			(1,206)			(4,810)			(958)			(547)			(1,505)
Continuing operations	$	8,778		$	9,048		$	8,722		$	8,179		$	34,727		$	7,494		$	5,546		$	13,040
Operating income (loss):	$	384	$	504	$	524	$	365	$	1,777	$	238	$	107	$	345
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI		186			226			202			59			673			135			81			216
Intermediates & Derivatives		314			372			314			249			1,249			131			24			155
Advanced Polymer Solutions		119			91			67			13			290			70			(83)			(13)
Refining		(59)			(110)			(52)			(19)			(240)			(314)			116			(198)
Technology		73			96			73			132			374			47			104			151
Other		-			(2)			(4)			(1)			(7)			(3)			(10)			(13)
Continuing operations	$	1,017		$	1,177		$	1,124		$	798		$	4,116		$	304		$	339		$	643
Depreciation and amortization:	$	115	$	117	$	118	$	120	$	470	$	124	$	133	$	257
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI		53			52			51			52			208			53			53			106
Intermediates & Derivatives		72			74			75			74			295			70			74			144
Advanced Polymer Solutions		29			30			32			42			133			44			39			83
Refining		43			44			41			41			169			42			49			91
Technology		10			11			10			6			37			9			8			17
Continuing operations	$	322		$	328		$	327		$	335		$	1,312		$	342		$	356		$	698
EBITDA:(a)	$	516	$	635	$	653	$	498	$	2,302	$	366	$	248	$	614
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI		296			331			291			144			1,062			189			185			374
Intermediates & Derivatives		390			448			390			329			1,557			203			101			304
Advanced Polymer Solutions		148			120			102			54			424			113			(44)			69
Refining		(15)			(66)			(6)			22			(65)			(272)			165			(107)
Technology		83			107			83			138			411			56			112			168
Other		10			4			-			(13)			1			(9)			(7)			(16)
Continuing operations	$	1,428		$	1,579		$	1,513		$	1,172		$	5,692		$	646		$	760		$	1,406
Capital, turnarounds and IT deferred spending:	$	276	$	257	$	295	$	271	$	1,099	$	204	$	190	$	394
Olefins & Polyolefins - Americas
Olefins & Polyolefins - EAI		64			39			45			65			213			42			34			76
Intermediates & Derivatives		179			238			317			330			1,064			353			305			658
Advanced Polymer Solutions		16			11			14			18			59			13			10			23
Refining		43			53			41			12			149			16			21			37
Technology		17			17			26			34			94			30			26			56
Other		4			7			4			1			16			2			2			4
Continuing operations	$	599		$	622		$	742		$	731		$	2,694		$	660		$	588		$	1,248

(a) See Table 7 for the reconciliation of net income to EBITDA, including and excluding LCM.

Table 2 - Selected Segment Operating Information

				2019							2020
	Q1		Q2		Q3		Q4		Total		Q1		Q2		Total
Olefins and Polyolefins - Americas
Volumes (kilotons)	1,096	1,110	944	1,143	4,293	1,014	872	1,886
Ethylene produced
Propylene produced	332	308	367	336	1,343	325	324	649
Polyethylene sold	637	634	673	644	2,588	689	665	1,354
Polypropylene sold	219	232	247	207	905	216	228	444
Benchmark Market Prices
West Texas Intermediate crude oil (USD per barrel)	54.90	59.80	56.40	56.98	57.02	45.97	27.80	36.89
Brent crude oil (USD per barrel)	63.90	68.32	62.00	62.51	64.18	50.95	33.27	42.11
Houston Ship Channel natural gas (USD per million BTUs)	2.86	2.46	2.26	2.24	2.46	1.82	1.64	1.73
U.S. weighted average cost of ethylene production (USD per metric ton)	362	262	209	260	273	198	265	231
U.S. ethylene (USD per metric ton)	614	535	584	632	591	525	507	516
U.S. polyethylene [high density] (USD per metric ton)	1,168	1,235	1,146	1,036	1,146	970	882	926
U.S. propylene (USD per metric ton)	838	823	845	775	820	683	577	630
U.S. polypropylene [homopolymer] (USD per metric ton)	1,323	1,308	1,308	1,224	1,291	1,014	930	972
Olefins and Polyolefins - Europe, Asia, International
Volumes (kilotons)	408	456	448	430	1,742	468	413	881
Ethylene produced
Propylene produced	239	274	271	249	1,033	272	243	515
Polyethylene sold	678	562	619	591	2,450	677	698	1,375
Polypropylene sold	752	729	718	722	2,921	729	742	1,471
Benchmark Market Prices (€ per metric ton)
Western Europe weighted average cost of ethylene production	466	493	433	576	492	352	236	294
Western Europe ethylene	995	1,065	993	973	1,007	953	673	813
Western Europe polyethylene [high density]	1,126	1,191	1,125	1,097	1,135	1,044	922	983
Western Europe propylene	933	983	893	852	915	838	617	728
Western Europe polypropylene [homopolymer]	1,222	1,268	1,185	1,136	1,203	1,084	975	1,029
Intermediates and Derivatives
Volumes Sold (kilotons)	363	343	353	336	1,395	366	281	647
Propylene oxide and derivatives
Intermediate Chemicals:	120	133	133	118	504	112	115	227
Ethylene oxide and derivatives
Styrene monomer	372	392	408	306	1,478	376	391	767
Acetyls	296	358	308	283	1,245	216	214	430
Oxyfuels and Related Products:	160	177	160	154	651	156	103	259
TBA intermediates
677	819	884	805	3,185	835	747	1,582
MTBE/ETBE
Benchmark Market Margins (USD per metric ton)	126	295	374	282	266	165	68	113
MTBE - Northwest Europe
Advanced Polymer Solutions
Volumes Sold (kilotons)	503	475	452	422	1,852	424	252	676
Compounding & Solutions
Advanced Polymers	104	105	106	91	406	105	103	208
Refining
Volumes (thousands of barrels per day)	259	261	264	267	263	226	237	231
Heavy crude oil processing rates
Benchmark Market Margins
Brent - 2-1-1	8.40	12.74	12.75	9.87	10.94	7.43	4.42	5.87
Brent - Maya differential	5.12	6.26	5.36	9.59	6.58	9.79	8.85	9.32
Source: LYB and third party consultants

Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. Volumes presented represent third party sales of selected key products.

Table 3 - Unaudited Income Statement Information

								2019												2020
Millions of dollars		Q1			Q2			Q3			Q4			Total			Q1			Q2			Total
Sales and other operating revenues	$	8,778	$	9,048	$	8,722	$	8,179	$	34,727	$	7,494	$	5,546		$	13,040
Cost of sales(a)		7,446			7,542			7,269			7,044			29,301			6,868			4,894			11,762
Selling, general and administrative expenses(b)		287			302			303			307			1,199			295			288			583
Research and development expenses		28			27			26			30			111			27			25			52
Operating income		1,017			1,177			1,124			798			4,116			304			339			643
Income from equity investments		64			64			51			46			225			-			61			61
Interest expense, net		(86)			(76)			(81)			(85)			(328)			(86)			(121)			(207)
Other income, net		25			10			11			(7)			39			-			4			4
Income from continuing operations before income taxes		1,020			1,175			1,105			752			4,052			218			283			501
Provision for (benefit from) income taxes(c)		203			169			136			140			648			75			(32)			43
Income from continuing operations(d)		817			1,006			969			612			3,404			143			315			458
Loss (income) from discontinued operations, net of tax		-			(3)			(4)			-			(7)			1			(1)			-
Net income(d)		817			1,003			965			612			3,397			144			314			458
Dividends on redeemable non-controlling interests		(2)			(1)			(2)			(2)			(7)			(2)			(1)			(3)
Net income attributable to Company shareholders(d)	$	815		$	1,002		$	963		$	610		$	3,390		$	142		$	313		$	455

1. The third quarter of 2019, fourth quarter of 2019, first quarter of 2020, and second quarter of 2020 include pre-tax charges of $3 million, $20 million, $3 million and $1 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman.
2. The first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020, and second quarter of 2020 include pre-tax charges of $16 million, $19 million, $40 million, $18 million, $11 million and $15 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman.
3. The third quarter of 2019 includes a non-cash benefit of $85 million from the previously unrecognized tax benefits and release of associated accrued interest.
4. The first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020, and second quarter 2020 include after-tax charges of $12 million, $15 million, $33 million, $29 million, $13 million and $11 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman.

Table 4 - Charges (Benefits) Included in Net Income

					2019							2020
Millions of dollars (except share data)		Q1			Q2			Q3			Q4			Q1			Q2
Pretax charges (benefits):
LCM charges (benefits)	$	-	$	-	$	-	$	33	$	419	$	(96)
Tax benefit from release of previously unrecognized tax		-			-			(85)			-			-			-
benefits and associated accrued interest
Acquisition-related costs - A. Schulman		16			19			43			38			14			16
Total pretax charges (benefits)		16			19			(42)			71			433			(80)
Provision for (benefit from) income taxes related to these items		(4)			(4)			(10)			(17)			(69)			3
After-tax effect of net charges (benefits)	$	12	$	15	$	(52)	$	54	$	364	$	(77)
Effect on diluted earnings per share:
LCM (charges) benefits	$	-	$	-	$	-	$	(0.07)	$	(1.05)	$	0.26
Tax benefit from release of previously unrecognized tax		-			-			0.25			-			-			-
benefits and associated accrued interest
Acquisition-related costs - A. Schulman		(0.03)			(0.04)			(0.10)			(0.08)			(0.04)			(0.03)
Total	$	(0.03)	$	(0.04)	$	0.15	$	(0.15)	$	(1.09)	$	0.23

Table 5 - Unaudited Cash Flow Information

								2019												2020
Millions of dollars		Q1			Q2			Q3			Q4			Total			Q1			Q2		Total
Net cash provided by operating activities	$	657		$	1,186		$	1,876		$	1,242		$	4,961	$	542	$	1,292		$ 1,834
Net cash used in investing activities		(178)			(278)			(754)			(425)			(1,635)			(663)			(1,064)	(1,727)
Net cash (used in) provided by financing activities		(521)			39			(1,900)			(453)			(2,835)			884			684	1,568

Table 6 - Unaudited Balance Sheet Information

Millions of dollars		March 31,			June 30,		September 30,		December 31,			March 31,			June 30,
	2019			2019			2019			2019			2020			2020
Cash and cash equivalents	$	339	$	1,279	$	476	$	858	$	1,596	$	2,552
Restricted cash		19			29			36			30			37			26
Short-term investments		423			52			53			196			199			651
Accounts receivable, net		3,680			3,758			3,469			3,102			3,043			2,588
Inventories		4,496			4,685			4,446			4,588			3,973			3,768
Prepaid expenses and other current assets		1,329			1,285			1,150			736			844			892
Total current assets		10,286			11,088			9,630			9,510			9,692			10,477
Operating lease assets		1,534			1,560			1,510			1,468			1,453			1,425
Property, plant and equipment, net		12,797			13,285			13,669			14,130			14,387			14,526
Investments and long-term receivables:		464			489			486			504			497			523
Investment in PO joint ventures
Equity investments		1,650			1,599			1,609			1,602			1,539			1,559
Other investments and long-term receivables		23			24			24			22			22			23
Goodwill		1,803			1,848			1,848			1,891			1,800			1,830
Intangible assets, net		945			892			841			869			808			756
Other assets		387			386			497			439			902			422
Total assets	$	29,889		$	31,171		$	30,114		$	30,435		$	31,100		$	31,541
Current maturities of long-term debt	$	5	$	4	$	4	$	3	$	3	$	3
Short-term debt		2,377			2,812			2,438			445			1,493			659
Accounts payable		3,187			3,115			3,201			2,928			2,638			2,194
Accrued liabilities		1,443			1,607			1,745			1,822			1,387			1,579
Total current liabilities		7,012			7,538			7,388			5,198			5,521			4,435
Long-term debt		7,522			7,586			9,628			11,614			12,159			13,674
Operating lease liabilities		1,282			1,304			1,257			1,216			1,192			1,160
Other liabilities		1,830			1,876			1,801			2,213			2,808			2,968
Deferred income taxes		1,967			2,008			2,018			2,015			1,961			1,811
Redeemable non-controlling interests		116			116			116			116			116			116
Shareholders' equity		10,138			10,721			7,888			8,044			7,324			7,358
Non-controlling interests		22			22			18			19			19			19
Total liabilities, redeemable non-controlling interests and equity	$	29,889	$	31,171	$	30,114	$	30,435	$	31,100	$	31,541

Non-GAAP Reconciliations

Table 7 - Reconciliation of Net Income to EBITDA, including and excluding LCM

																																Last
					Three Months Ended					Year Ended		Three Months Ended		Year Ended			Six Months Ended		Twelve
														Months
Millions of dollars	March 31,		June 30,		September 30,		December 31,		December 31,		March 31,		June 30,		December 31,		June 30,		June 30,		June 30,
	2019			2019			2019			2019			2019			2020			2020			2019			2019			2020			2020
Net income(a)(b)	$	817	$	1,003	$	965	$	612	$	3,397	$	144	$	314	$	3,397	$	1,820	$	458	$	2,035
add: LCM charges (benefits), after-tax		-			-			-			25			25			351			(88)			25			-			263			288
Net income excluding LCM charges (benefits)		817			1,003			965			637			3,422			495			226			3,422			1,820			721			2,323
less: LCM (charges) benefits, after-tax		-			-			-			(25)			(25)			(351)			88			(25)			-			(263)			(288)
Net income		817			1,003			965			612			3,397			144			314			3,397			1,820			458			2,035
Loss (income) from discontinued operations,		-			3			4			-			7			(1)			1			7			3			-			4
net of tax
Income from continuing operations(a)(b)		817			1,006			969			612			3,404			143			315			3,404			1,823			458			2,039
Provision for (benefit from) income		203			169			136			140			648			75			(32)			648			372			43			319
taxes (b)
Depreciation and amortization		322			328			327			335			1,312			342			356			1,312			650			698			1,360
Interest expense, net		86			76			81			85			328			86			121			328			162			207			373
add: LCM charges (benefits), pre-tax		-			-			-			33			33			419			(96)			33			-			323			356
EBITDA excluding LCM charges (benefits)		1,428			1,579			1,513			1,205			5,725			1,065			664			5,725			3,007			1,729			4,447
less: LCM (charges) benefits, pre-tax		-			-			-			(33)			(33)			(419)			96			(33)			-			(323)			(356)
EBITDA(c)	$	1,428	$	1,579	$	1,513	$	1,172	$	5,692	$	646	$	760	$	5,692	$	3,007	$	1,406	$	4,091

Note: Last twelve months June 30, 2020 is calculated as year ended December 31, 2019 plus six months ended June 30, 2020, minus six months ended June 30, 2019.

1. The first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020 and second quarter of 2020 include after-tax charges of $12 million, $15 million, $33 million, $29 million, $13 million and $11 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman.
2. The third quarter of 2019 includes a non-cash benefit of $85 million, from the release of unrecognized tax benefits and associated accrued interest.
3. EBITDA for the first quarter of 2019, second quarter of 2019, third quarter of 2019, fourth quarter of 2019, first quarter of 2020 and second quarter of 2020 include pre-tax charges of $16 million, $19 million, $43 million, $38 million, $14 million and $16 million, respectively, for integration costs associated with our 2018 acquisition of A. Schulman.

Table 8 - Reconciliation of EBITDA to EBITDA Excluding LCM by Segment

					Three Months Ended					Year Ended			Three Months		Six Months
											Ended				Ended
	March 31,			June 30,		September 30,		December 31,		December 31,		March 31,		June 30,			June 30,
		2019			2019			2019			2019			2019			2020			2020			2020
EBITDA:
Olefins & Polyolefins - Americas	$	516	$	635	$	653	$	498	$	2,302	$	366	$	248	$	614
Olefins & Polyolefins - EAI		296			331			291			144			1,062			189			185			374
Intermediates & Derivatives		390			448			390			329			1,557			203			101			304
Advanced Polymer Solutions		148			120			102			54			424			113			(44)			69
Refining		(15)			(66)			(6)			22			(65)			(272)			165			(107)
Technology		83			107			83			138			411			56			112			168
Other		10			4			-			(13)			1			(9)			(7)			(16)
Continuing Operations	$	1,428	$	1,579	$	1,513	$	1,172	$	5,692	$	646	$	760	$	1,406
Add: LCM charges (benefits), pre-tax:
Olefins & Polyolefins - Americas	$	-	$	-	$	-	$	25	$	25	$	111	$	(38)	$	73
Olefins & Polyolefins - EAI		-			-			-			-			-			36			34			70
Intermediates & Derivatives		-			-			-			-			-			78			20			98
Advanced Polymer Solutions		-			-			-			8			8			2			67			69
Refining		-			-			-			-			-			192			(179)			13
Technology		-			-			-			-			-			-			-			-
Other		-			-			-			-			-			-			-			-
Continuing Operations	$	-	$	-	$	-	$	33	$	33	$	419	$	(96)	$	323
EBITDA excluding LCM charges (benefits)
Olefins & Polyolefins - Americas	$	516	$	635	$	653	$	523	$	2,327	$	477	$	210	$	687
Olefins & Polyolefins - EAI		296			331			291			144			1,062			225			219			444
Intermediates & Derivatives		390			448			390			329			1,557			281			121			402
Advanced Polymer Solutions		148			120			102			62			432			115			23			138
Refining		(15)			(66)			(6)			22			(65)			(80)			(14)			(94)
Technology		83			107			83			138			411			56			112			168
Other		10			4			-			(13)			1			(9)			(7)			(16)
Continuing Operations	$	1,428	$	1,579	$	1,513	$	1,205	$	5,725	$	1,065	$	664	$	1,729

Table 9 - Reconciliation of Diluted EPS to Diluted EPS Excluding LCM

		Three Months Ended			Six Months			Three Months Ended			Six Months
				Ended					Ended
		March 31,			June 30,			June 30,			March 31,			June 30,			June 30,
		2019			2019			2019			2020			2020			2020
Diluted earnings per share	$	2.19	$	2.70	$	4.88	$	0.42	$	0.94	$	1.36
Add:
LCM charges (benefits)		-			-			-			1.05			(0.26)			0.79
Diluted earnings per share excluding LCM	$	2.19	$	2.70	$	4.88	$	1.47	$	0.68	$	2.15

Table 10 - Components of Cash and Liquid Investments and Total Liquidity

Millions of dollars		June 30,
	2020
Cash and cash equivalents and restricted cash	$	2,578
Short-term investments		651
Cash and liquid investments		3,229
Availability under Senior Revolving Credit Facility		2,017
Availability under U.S. Receivables Facility		524
Total liquidity	$	5,770

Table 11 - Reconciliation of Free Operating Cash Flow to Net Cash Provided by Operating Activities and Ratio of LTM Cash Provided by Operating Activities to LTM EBITDA Ex LCM

					Years Ended December 31,						Year Ended			Six Months Ended		Last Twelve
														Months
Millions of dollars		2015			2016			2017			2018			2019		December 31,		June 30,		June 30,			June 30,
											2019			2019			2020			2020
Free operating cash flow	$	5,027	$	4,497	$	4,187	$	4,419	$	3,937	$	3,937	$	1,389	$	1,323	$	3,871
Add:
Sustaining (maintenance and HSE) capital expenditures		815			1,109			1,019			1,052			1,024			1,024			454			511			1,081
Net cash provided by operating activities	$	5,842	$	5,606	$	5,206	$	5,471	$	4,961	$	4,961	$	1,843	$	1,834	$	4,952
Divided by:
Q2 2020 LTM EBITDA excluding LCM (a)																								$	4,447
Ratio of Q2 2020 LTM cash provided by operating																										111 %
activities to Q2 2020 LTM EBITDA excluding LCM

(a) LTM EBITDA excluding LCM see Table 7 Reconciliation of Net Income to EBITDA, including and excluding LCM

Table 12 - Calculation of LTM Free Operating Cash Flow Yield

Millions of Dollars (except share data)

Net cash provided by operating activities Less:

Sustaining (maintenance and HSE) capital expenditures Free operating cash flow

Market Capital:

Common stock outstanding

Closing Share Price, end of period

Market Capital

Free Operating Cash Flow Yield

Last Twelve

Months

June 30, 2020

• 4,952

1,081

• 3,871

333,829,804

• 65.72
• 21,939

17.6 %