LyondellBasell Industries NV (

LYB

)

Q2 2011 Earnings Call

July 29, 2011 11:00 AM ET

Executives

Doug Pike – VP, IR

Jim Gallogly – CEO

Kent Potter – CFO

Analysts

P.J. Juvekar – Citi Bank

Bob Koort – Goldman Sachs

W. Fisher – Barclays Capital

Don Carson – Susquehanna Financial

Kevin McCarthy – Bank of America/Merrill Lynch

Jeff Zekauskas – JPMC

Hamed Khorsand – BWS Financial

Bill Hoffmann – RBC Capital Markets

Andrew Cash – UBS

Laurence Alexander – Jefferies

Hassan Ahmed – Alembic Global

Bill Young – ChemSpeak

Presentation

Operator

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Hello and welcome to the LyondellBasell teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes. Following today's presentation, we will conduct a question-and-answer session. (Operator Instructions).

I'd now like to turn the conference over to Mr. Doug Pike, Vice President of Investor Relations. Sir, you may begin.

Doug Pike

Well, thank you. Welcome to LyondellBasell's second quarter 2011 teleconference. I'm joined today by Jim Gallogly our CEO; Kent Potter, our CFO; and Sergey Vasnetsov, our Senior Vice President on Strategic Planning and Transactions.

Now before we begin the business discussion. I'd like to point out that a slide presentation accompanies today's call and is available on our website at www.Lyondellbasell.com. I'd also like for you to note that statements made in this call relating to matters that are not historical facts are forward-looking statements. And these forward-looking statements are based upon assumptions of management, which are believed to be reasonable at the time made and are subject to significant risks and uncertainties.

And actual risk could differ materially from those forward-looking statements. For more detailed information about the factors that could cause our actual results to differ materially. Please refer to our cautionary statements in the presentation slide and our financial reports, which are available at www.LyondellBasell.com/investorrelations.

A reconciliation to non-GAAP financial measures to GAAP financial measures together with any other actual disclosures including the earnings release are currently available on our web site www.LyondellBasell.com.

Finally, I would like to point out that a recording of this call will be available by telephone beginning at 1 p.m. eastern time today until 1 p.m. eastern time on August 29, by calling 800-510-9771 in the United States and 402-334-6800 outside the United States, and the passcode for both numbers is 4765.

During today's call we'll focus on second quarter 2011 performance, the current environment and the near-term outlook.

And with that being said, I'd like to turn the call over to Jim.

Jim

Gallogly

Thank you for joining our earnings call. As Doug mentioned, a set of presentation slides accompany this call and are available on our web site. Let's begin by turning to page four to review a few financial highlights.

Second-quarter results were strong. In fact, it was the best quarter that we've ever posted with earnings per share of $1.38. Our year-to-date earnings per share were $2.56, a very nice start to the year. Adjusted for various items noted in our earnings release this increases to $2.74 per share.

Our second-quarter EBITDA surpassed $1.5 billion, bringing the first half EBITDA to almost $3 billion. Not only did we have a great first half and a record second-quarter, we also had a nice balance across the period. Our portfolio performed well month-to-month. This was due in part to solid operations during the quarter. We finished our largest turnaround in company history at Channelview, a major activity during which we had more than 2000 contractors on-site at the peak. The plant restarted in late June and is operating well. This scheduled downtime negatively impacted our EBITDA by about $75 million.

We also had about two weeks of unscheduled downtime at our Morris, Illinois site. The downtime was tossed by multiple lightning strikes at the facilities of our third-party power provider. This adversely impacted a quarter results by approximately $25 million. Good, steady operations generally go hand in hand with good safety performance. On page 5, you can see that our safety performance continues to be excellent. However, within the quarter we experienced a number of isolated and generally minor injuries. To help bring focused to safety, we held our second company contractor and supplier Global Safety Day. All of our 50 plus sites participated in this event. Our company goal is safety perfection. In summary, we had a great quarter.

Via investments and our assets and our systematic approach to all aspects of our business we have made great progress and established a solid foundation. The first half of the year was a good example and performance that will build upon.

Let me now turn the call over to Kent to discuss our financial performance.

Kent Potter

Thanks Jim and thank you all for joining us today. As Jim said, the second quarter was another strong quarter. On slide six, we have charted the EBITDA by segment for both the second quarter and our year-to-date results. I want to step through each segment and Jim will do so in significant detail, but I do want to stress a few points, some of which Jim has already mentioned.

Of course, I first want to underline the strength of the second quarter and our six months results. EBITDA for the six-month period falls just shy of $3 billion. Consider that each of the four large segments were individually generating EBITDA, that when annualized (inaudible) surprised $1 billion, all from San Palio from Americas alone operated on an annualized pace of more than 2 billion.

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