-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Il5Y26WV1ofEs8u59R6davMnw/NAWKMYY0p93FeZreYnCeMhKBDdrAw2Uii1Rx+r 9E8fsH00zVZQ2+53JYcMMA== 0000899243-96-000050.txt : 19960201 0000899243-96-000050.hdr.sgml : 19960201 ACCESSION NUMBER: 0000899243-96-000050 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960131 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960131 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LYONDELL PETROCHEMICAL CO CENTRAL INDEX KEY: 0000842635 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 954160558 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10145 FILM NUMBER: 96509500 BUSINESS ADDRESS: STREET 1: 1221 MCKINNEY ST STREET 2: STE 1600 CITY: HOUSTON STATE: TX ZIP: 77010 BUSINESS PHONE: 7136527200 MAIL ADDRESS: STREET 1: 1221 MCKINNEY ST STREET 2: SUITE 1600 CITY: HOUSTON STATE: TX ZIP: 77010 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 31, 1996. LYONDELL PETROCHEMICAL COMPANY (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-10145 95-4160558 (STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.) 1221 MCKINNEY STREET, SUITE 1600, HOUSTON, TEXAS 77010 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (713) 652-7200 NOT APPLICABLE (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT) PAGE 1 OF 3 ITEM 5. OTHER EVENTS Press Release dated January 22, 1996, reporting earnings from 4th Quarter and full year 1995 and Press Release dated January 30, 1996 reporting 1996 Capital budget. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Exhibits: Exhibit Document ------- -------- 99.1 Press Release dated January 22, 1996. 99.2 Press Release, dated January 30, 1996. PAGE 2 OF 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: January 31, 1996 LYONDELL PETROCHEMICAL COMPANY By: /s/ Russell S. Young ------------------------------------ Russell S. Young Senior Vice President Chief Financial Officer and Treasurer PAGE 3 OF 3 EXHIBIT INDEX SEQUENTIALLY EXHIBIT NUMBERED PAGE NO. EXHIBITS WHERE LOCATED ------- -------- ------------- 99.1 Press Release dated January 22, 1996 99.2 Press Release dated January 30, 1996 EX-99.1 2 PRESS RELEASE DATED 1/22/96 EXHIBIT 99.1 [LOGO OF LYONDELL APPEARS HERE] News ================================================================================ One Houston Center, 1221 McKinney Ave., P.O. Box 3646, Houston, Texas 77253-3646 (713) 652-7200 FOR IMMEDIATE RELEASE LYONDELL PETROCHEMICAL COMPANY REPORTS 1995 EARNINGS OF $389 MILLION, VERSUS $223 MILLION IN 1994 HOUSTON, January 22, 1996--Lyondell Petrochemical Company (NYSE:LYO) today reported net income for the full year 1995 of $389 million, or $4.86 per share, compared to $223 million, or $2.78 per share, in 1994. This represents the best annual earnings since Lyondell became a public company in 1989 and was primarily due to strong petrochemical and polymers performance in the first nine months of 1995. These markets declined sharply in the latter part of the year and this resulted in fourth quarter 1995 earnings of $27 million, or $.34 per share, versus $103 million, or $1.28 per share, in the fourth quarter of 1994. Bob G. Gower, chairman and chief executive officer of Lyondell Petrochemical Company, said, "In spite of the market downturn in the fourth quarter, 1995 was marked by good overall performance for Lyondell as well as significant progress toward our strategic goals." Major factors in the company's 1995 performance included: . Strong market conditions for petrochemicals and polymers in the first half of the year followed by substantially weaker markets in the fourth quarter. . The acquisition of the Alathon(R) high-density polyethylene business, which contributed significantly to 1995 results and is also providing Lyondell with integration benefits and important niches in this growing market. . Outstanding aromatics profitability at LYONDELL-CITGO Refining Company Ltd. (LCR). . The LCR venture agreement that enabled the refining business to be profitable in a dismal year for the Gulf Coast refining industry. Refinery rates were limited by some operating problems, but this was LCR's best year thus far for processing heavy Venezuelan crude oil, which is key to maximizing the economic benefits of the venture. --MORE-- Olefins margins declined significantly in the fourth quarter of 1995 as supply/demand conditions worsened and this was the overriding factor in the decline in the company's fourth quarter earnings. In addition, fourth quarter results were affected by downtime for a scheduled maintenance turnaround and capacity expansion of one of the company's olefins units. Other factors affecting 1995 fourth quarter results versus the same period in 1994 were lower methanol profitability, offset by increased contributions from polymers and aromatics and better refining performance at LCR, where major turnarounds limited 1994 results. Compared to the 1995 third quarter, when Lyondell earned $100 million, or $1.25 per share, 1995 fourth quarter results reflected the decline in petrochemical markets as well as coker downtime at the LCR refinery. "Although we are starting 1996 in a difficult business environment, we have broadened our asset base and we believe that our continued focus on low cost together with emphasis on reducing cyclicality in our key businesses will enable us to weather any storm," said Dan F. Smith, Lyondell's president and chief operating officer. Lyondell Petrochemical Company produces a wide variety of petrochemicals, including olefins (primarily ethylene, propylene, butadiene, butylenes and specialty products), methanol, MTBE, and polymers (Alathon(R) high-density polyethylene, polypropylene and low-density polyethylene). Lyondell currently has an approximately 90% participation interest in LYONDELL-CITGO Refining Company Ltd. (LCR), which produces refined petroleum products, including gasoline, heating oil, jet fuel, aromatics and lubricants. # # # For information, contact: Media - Jackie Wilson (713) 652-4596 Investors - Dave Balderston (713) 652-4590 LYONDELL PETROCHEMICAL COMPANY FINANCIAL AND OPERATING INFORMATION (UNAUDITED)
FOR THE THREE MONTHS FOR THE TWELVE MONTHS INCOME STATEMENT ENDED DECEMBER 31 ENDED DECEMBER 31 (MILLIONS OF DOLLARS EXCEPT PER SHARE AMOUNTS) 1995 1994 1995 1994 - ---------------------------------------------- ------- ------- ------- ------- Sales and other operating revenues $ 1,143 $ 1,096 $ 4,936 $ 3,857 Operating costs and expenses: Cost of sales 1,023 886 4,026 3,296 Selling, general and administrative expenses 56 35 204 137 ------- ------- ------- ------- Operating income 64 175 706 424 Interest expense (21) (18) (80) (74) Interest income 1 2 6 5 Minority interest in LYONDELL-CITGO Refining Co. Ltd. (2) -- (14) (6) ------- ------- ------- ------- Income before income taxes 42 159 618 349 Provision for income taxes 15 56 229 126 ------- ------- ------- ------- Net income $ 27 $ 103 $ 389 $ 223 ======= ======= ======= ======= Earnings per share $ .34 $ 1.28 $ 4.86 $ 2.78 ======= ======= ======= ======= Avg. no. common shares outstanding (thousands) 80,000 80,000 80,000 80,000 ======= ======= ======= =======
FOR THE THREE MONTHS FOR THE TWELVE MONTHS SELECTED FINANCIAL & OPERATING DATA ENDED DECEMBER 31 ENDED DECEMBER 31 (MILLIONS OF DOLLARS) 1995 1994 1995 1994 - ---------------------------------------------- ------- ------- ------- ------- SALES AND OTHER OPERATING REVENUES Petrochemical segment $ 555 $ 613 $ 2,657 $ 1,973 Refinery segment: Products 551 473 2,272 1,976 Crude 109 93 370 296 Intersegment eliminations (72) (83) (363) (388) ------- ------- ------- ------- Total $ 1,143 $ 1,096 $ 4,936 $ 3,857 ======= ======= ======= ======= OPERATING INCOME Petrochemical segment $ 52 $ 186 $ 641 $ 413 Refinery segment 24 (1) 124 54 Unallocated (12) (10) (59) (43) ------- ------- ------- ------- Total $ 64 $ 175 $ 706 $ 424 ======= ======= ======= ======= SALES VOLUMES (EXCLUDES INTERSEGMENT SALES) Selected petrochemical products (millions) Ethylene, propylene and polymers (lbs) 1,719 1,584 6,832 6,090 Other olefins (lbs) 207 291 1,030 1,048 Methanol (gallons) 54 41 199 169 Aromatics (gallons) 34 38 152 160 Refinery products (thousand barrels per day) Gasoline 113 109 109 109 Heating oil (no. 2 distillate) 55 37 52 44 Jet fuel 27 18 29 24 Aromatics 8 8 8 8 Other refinery products 55 44 56 46 ------- ------- ------- ------- Total refinery products volumes 258 216 254 231 ======= ======= ======= ======= REFINERY RUNS (thousand barrels per day) Blended crude oil 236 160 238 209 Unfinished stock 50 78 48 64 ------- ------- ------- ------- Total 286 238 286 273 ======= ======= ======= =======
LYONDELL PETROCHEMICAL COMPANY SELECTED FINANCIAL INFORMATION (UNAUDITED) MILLION OF DOLLARS
DECEMBER 31 CONDENSED BALANCE SHEET 1995 - ----------------------- ----------- Cash, restricted cash and cash equivalents $ 10 Accounts receivable, inventories and other current assets 668 Fixed assets (net), and other non-current assets 1,928 ----------- Total assets $ 2,606 =========== Current liabilities $ 750 Long-term debt 807 Other liabilities and deferred credits 210 Minority interest 459 Stockholders' equity 380 ----------- Total liabilities and stockholders' equity $ 2,606 ===========
CASH AND CASH EQUIVALENTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1995 CASH FLOW UNRESTRICTED RESTRICTED TOTAL - --------- ------------ ---------- ----- Net income $ 389 $ 389 Non-cash transactions: Depreciation and amortization 86 86 Deferred taxes 3 3 Change in working capital/other (7) (7) ------------ ---------- ----- Cash flow from operations 471 471 Minority owner investments: Contributions $ 176 176 Reinvestments (17) 17 -- Company loan to LCR (25) 25 -- Additions to fixed assets: Refinery upgrade project (458) (458) Refinery segment-other (2) (45) (47) Petrochemical segment-ALATHON acquisition (356) (356) Petrochemical segment-other (121) (121) Net proceeds from short-term debt 83 83 Net proceeds from long-term debt (10) 250 240 Dividends paid (72) (72) ------------ ---------- ----- Incr./(Decr.) in cash and cash equivalents (49) (35) (84) Cash and cash equivalents at beginning of period 52 42 94 ------------ ---------- ----- Cash and cash equivalents at end of period $ 3 $ 7 $ 10 ============ ========== =====
EX-99.2 3 PRESS RELEASE DATED 1/30/96 EXHIBIT 99.2 FOR IMMEDIATE RELEASE LYONDELL ANNOUNCES 1996 CAPITAL BUDGET OF $125 MILLION HOUSTON, January 30, 1996--The Board of Directors of Lyondell Petrochemical Company (NYSE:LYO) has approved a 1996 capital budget of $125 million. Petrochemical projects account for $79 million of the total, and $46 million is budgeted for projects at the company's affiliate LYONDELL-CITGO Refining Company, Ltd (LCR). In addition to the $125 million capital budget, Lyondell will provide funding in the range of $100 million for LCR's major refinery upgrade project. Actual capital spending in 1995 totaled $168 million, excluding the acquisition of the Alathon high-density polyethylene business. Lyondell's portion of the expenditures for the LCR upgrade project in 1995 was an additional $25 million. About 25% of the 1996 petrochemical budget is for the completion of three previously announced capacity expansions: an approximately 7% increase in olefins capacity in Channelview, a 33% increase in polypropylene capacity at LaPorte, and a near-doubling of alkylation capacity at Channelview. Other major petrochemical projects include process control upgrades at several operating units. "This year, we are completing important expansions of our capacity and enhancing our operating capabilities and efficiency," said Bob G. Gower, chairman and chief executive officer of Lyondell. "Several of these projects complement Lyondell's recent acquisitions and new product developments in the polymers area." As in previous years, most of the spending at LCR other than the upgrade project is for environmental, health and safety projects. It is expected that Lyondell will provide about half of the $46 million budgeted for LCR from its own cash flow, with the remainder funded from a restricted cash reserve and from CITGO's reinvested earnings during 1996. The refinery upgrade project, which will increase LCR's ability to process very heavy crude oil from Venezuela, is expected to be operational in early 1997. The cost estimate for the upgrade project, previously estimated at $980 million, is currently undergoing further study and could be increased. The revised cost estimate will depend on a number of factors, including the impact of scheduling decisions. Any increase is expected to be less than 10%. Spending from project inception in 1993 to the end of 1995 has been $602 million, including $458 million last year. CITGO contributions and external borrowing have provided the majority of the project funding to date. Present funding is 50% borrowing and 25% each from CITGO and Lyondell. This current funding plan will apply for a total upgrade project cost of up to $1 billion, and results in Lyondell's 1996 share of approximately $100 million. If total spending on the upgrade project exceeds $1 billion, Lyondell expects to fund one-half of these additional costs. Lyondell has already gained significant benefits from the venture agreement and expects that earnings and cash flow from the refinery will be further enhanced upon completion of the upgrade project. Lyondell Petrochemical Company produces a wide variety of petrochemicals, including olefins (primarily ethylene, propylene, butadiene, butylenes and specialty products), methanol, MTBE, and polymers (Alathon(R) high-density polyethylene, polypropylene and low-density polyethylene). Lyondell currently has an approximately 90% participation interest in LYONDELL-CITGO Refining Company Ltd. (LCR), which produces refined petroleum products including gasoline, heating oil, jet fuel, aromatics and lubricants. # # # For information, contact: Media-Jackie Wilson (713) 652-4596 Investors-Dave Balderston (713) 652-4590 -----END PRIVACY-ENHANCED MESSAGE-----