OREANDA-NEWS. LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the third quarter 2015 of $1.2 billion, or $2.55 diluted earnings per share.  Third quarter 2015 EBITDA was approximately $2.0 billion.   

Comparisons with the prior quarter and third quarter 2014 are available in the following table:

Table 1 - Earnings Summary

          
   

Three Months Ended

Nine Months Ended
 

September 30,

June 30,

September 30,

September 30,

Millions of U.S. dollars (except share data)

2015

2015

2014

2015

2014

Sales and other operating revenues

$8,334

$9,145

$12,066

$25,664

$35,318

Net income(a)

1,186

1,329

1,257

3,679

3,377

Income from continuing operations(b)

1,189

1,326

1,260

3,682

3,376

Diluted earnings per share (U.S. dollars):

          
 

Net income(c)

2.54

2.82

2.45

7.77

6.38
 

Income from continuing operations(b)

2.55

2.81

2.46

7.78

6.38

Diluted share count (millions)

463

472

512

473

529

EBITDA(d)

2,001

2,186

2,035

6,139

5,644
             

Excluding LCM Impacts:

          

LCM charges (benefits), pre-tax

181

(9)

45

264

45

Income from continuing operations(b)

1,303

1,320

1,288

3,848

3,404

Diluted earnings per share (U.S. dollars):

          
 

Income from continuing operations(b)

2.80

2.79

2.51

8.13

6.43

EBITDA(d)

2,182

2,177

2,080

6,403

5,689

(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.
   
   
       

1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from our financial information in this press release can be found at the end of this press release under "Information Related to Financial Measures."

The third quarter included a $181 million non-cash, pre-tax lower of cost or market (LCM) inventory adjustment ($114 million after tax).  Excluding the LCM adjustment, earnings from continuing operations during the third quarter totaled $1.3 billion, or $2.80 per share, and EBITDA was $2.2 billion. 

"Our portfolio continued to demonstrate balance as third quarter EBITDA marked the fifth consecutive quarter of EBITDA in excess of $2 billion.  From an industry standpoint, the third quarter was a transitional period during which markets rebalanced following tight second quarter supply and the price of crude oil declined.  Despite this change, our portfolio continued to generate strong earnings as some product margins expanded while others contracted.  During the third quarter, our Olefins and Polyolefins – Europe, Asia, International and Intermediates and Derivatives segments both achieved record EBITDA.  In addition to continued earnings strength, cash generation remained strong and we repurchased 15.5 million shares, representing 3.3 percent of our outstanding shares," said Bob Patel, LyondellBasell Chief Executive Officer.    

OUTLOOK

"Thus far, the fourth quarter reflects a more balanced global ethylene industry.  We entered the quarter with lower ethylene-polyethylene chain margins following third quarter market rebalancing and oil price decline.  During the fourth quarter, we expect typical seasonal behavior to adversely impact the earnings of our oxyfuels, polyolefins, and refining businesses.  Looking ahead to 2016, we continue to forecast stable industry demand and operating rates and believe that the markets for our products will tighten as we move into the spring," Patel said.