01—Abstract
Summary
Summary of the 10-K filed February 29, 2012. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported 2011 sales and other operating revenues of $51.0 billiona and operating income of $3.998 billion, against $41.2 billion of 2010 combined revenues as presented in the filing.
Net income was $2.14 billionb for 2011, with diluted earnings per share from continuing operations of $3.74. Growth was driven by higher average sales prices and raw material costs, strong ethylene margins in the O&P-Americas segment, and higher refining margins at the Houston refinery, partly offset by a fourth-quarter 2011 slowdown, especially in Europe, and the suspension of operations at the Berre refinery on January 4, 2012. The company ended 2011 with cash of $1.065 billion, total debt of $4.032 billion, and working capital of $5.863 billion.
During 2011 it repaid $4.288 billionc of principal debt since the fourth quarter of 2010, issued $1.0 billion of 6% senior notes due 2021, and paid a special dividend of $4.50 per share ($2.58 billion) in December 2011. Operating cash flow was $2.869 billion, and capital expenditures were $1.050 billion.
Key risks disclosed include cyclical supply-demand balances in chemicals and refining, raw material cost volatility, European sovereign debt stress, a pending IRS examination under Section 7874 of whether the company should be treated as a U.S. corporation, an FCPA-related voluntary disclosure to the U.S. Department of Justice, and a pension deficit of $1.079 billiond. Approximately 44% of ordinary shares were held by two shareholders as of February 24, 2012.
02—Key points
Key Highlights
- Net sales and other operating revenues of $51.035 billion in 2011, up from $41.151 billion in 2010; operating income of $3.998 billion.
- Net income of $2.140 billion in 2011; diluted EPS from continuing operations of $3.74.
- O&P-Americas segment revenues of $14.880 billion with operating income of $1.857 billion; O&P-EAI revenues of $15.460 billion with operating income of $475 million.
- Refining & Oxyfuels segment revenues of $20.733 billion with operating income of $718 million, including $136 million of charges tied to the Berre refinery suspension.
- Total debt reduced to $4.032 billion at December 31, 2011, after $4.288 billion of principal repaid since Q4 2010 and $1.0 billion of new 6% senior notes issued in November 2011.
- Special dividend of $4.50 per share ($2.58 billion) and quarterly dividend of $0.25 per share paid in December 2011, with total 2011 dividends declared of $5.05 per share.
- Q4 2011 net loss of $218 million, compared with net income of $895 million in Q3 2011, reflecting debt-repayment premiums and Berre-related charges.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, LyondellBasell Industries kept $0.04.
- Revenue$48.18B100.0%
- Cost of revenue−$42.73B88.7%
- Gross profit$5.45B11.3%
- Operating costs−$1.11B2.3%
- Operating income$4.34B9.0%
- Interest, other & tax−$2.20B4.6%
- Net income$2.14B4.4%
Where FY2011 revenue went
$48.18B- Cost of revenue: $42.73B, 89% of revenue
- Net income: $2.14B, 4.4% of revenue
- R&D: $196.0M, 0.4% of revenue
- SG&A: $918.0M, 1.9% of revenue
- Interest, other & tax: $2.20B, 4.6% of revenue
Kept 4.4% as net incomeNet income $2.14B · 4.4%R&D $196.0M · 0.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 29, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $48.18B— | — |
| Cost of Revenue | $42.73B— | — |
| Gross Profit | $5.45B— | — |
| R&D Expenses | $196.00M— | — |
| SG&A Expenses | $918.00M— | — |
| Operating Expenses | $43.85B— | — |
| Operating Income | $4.34B— | — |
| Interest Expense | $1.04B— | — |
| Net Income | $2.14B— | — |
| EPS (Basic) | $3.76— | — |
| EPS (Diluted) | $3.74— | — |
| Shares Outstanding (Basic) | 568.00M— | — |
| Shares Outstanding (Diluted) | 572.00M— | — |
05—Questions
Frequently Asked Questions
How did LyondellBasell perform financially in 2011?
Revenues rose to $51.035 billion from $41.151 billion in 2010, and operating income was $3.998 billion. Net income was $2.140 billion, with diluted EPS from continuing operations of $3.74. Higher average sales prices and raw material costs drove most of the revenue increase.
What happened at the Berre refinery?
Refinery operations in France were suspended on January 4, 2012, under an agreement with French entities and union representatives. The company recorded a $136 million charge in Q4 2011 mainly for the estimated social plan cost and inventory write-downs, and said additional costs are not expected to be material.
What did the company do with its capital structure in 2011?
It repaid $4.288 billion of principal on higher-cost notes since Q4 2010, issued $1.0 billion of 6% senior notes due 2021, and paid a $4.50 per share special dividend in December 2011. Year-end cash was $1.065 billion and total debt was $4.032 billion.
What are the main risks flagged in the filing?
Key risks include cyclical industry supply-demand balances, volatile raw material and energy costs, European sovereign debt stress, a pending IRS examination under Section 7874 that could result in U.S. tax treatment with significantly higher tax liability, an ongoing FCPA matter disclosed to the Department of Justice, and a pension deficit of $1.079 billion.
How concentrated is share ownership?
As of February 24, 2012, two shareholders collectively owned approximately 44% of outstanding ordinary shares. Under Dutch law, they can significantly influence shareholder votes, director elections, and dividend decisions.
06—Continue