LyondellBasell Reports Record 2014 Earnings
LyondellBasell Industries announced earnings from continuing operations for the fourth quarter 2014 of USD 0.8 billion, or USD 1.57 per share. Fourth quarter 2014 EBITDA was USD 1.4 billion. Full year 2014 income from continuing operations was USD 4.2 billion, or USD 8.00 per share, and EBITDA was USD 7.1 billion. The full year included a non-cash, pre-tax LCM inventory adjustment of USD 760 million (USD 483 million after tax). Excluding the LCM (lower of cost or market) adjustment, earnings from continuing operations for the full year totaled USD 4.7 billion, or USD 8.92 per share, and EBITDA was USD 7.8 billion.
"During 2014, LyondellBasell generated record earnings and cash flow, advanced our growth program, and continued returning cash to shareholders at an industry-leading rate. Every segment posted strong results for the year, with record performance from both of our Olefins and Polyolefin segments, as well as our Technology segment. Fourth quarter 2014 EBITDA remained strong, and excluding the effects of the LCM inventory charge, we posted record results," said Bob Patel, LyondellBasell chief executive officer.
"We continued to execute and expand our strategic growth program. We completed an 800 million pound per year ethylene expansion and a 200 million pound polyethylene expansion. We also announced that we are developing two new growth projects: a propylene oxide and tertiary butyl alcohol facility and an additional ethylene expansion at our Channelview site," continued Patel.
"Cash generation reached record levels in 2014 and we continued to return cash to shareholders. Share repurchases and dividends totaled approximately USD 7.2 billion. We purchased approximately 63 million shares, or approximately 12% of outstanding shares during 2014. Since initiating the share repurchase program during mid-2013, we have repurchased approximately 91 million shares, or approximately 16% of the outstanding shares," Patel said.
"We remain confident in our favorable industry position and in the fundamentals supporting our business. While we anticipate that margins will ease from the records of 2014 as crude oil prices decline, our positions remain advantaged, our growth program is generating incremental earnings, and our share count is greatly reduced through our repurchase program. During 2015 we plan to advance approximately one billion pounds of ethylene expansion projects, improve operations at our methanol facility, and receive additional volumes of Canadian crude oil at our refinery," Patel said.
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