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					Solid Strategy, Confident Execution
        Lehman Brothers
   2003 High Yield Conference
         March 21, 2003
          Kevin DeNicola
  Senior Vice President and CFO
Safe Harbor Language
Statements in this presentation relating to matters that are not historical
facts are forward-looking statements. These forward-looking statements are
just predictions or expectations and are subject to risks and uncertainties.
Actual results could differ materially, based on factors including but not
limited to the cyclical nature of the chemical and refining industries;
availability, cost and volatility of raw materials and utilities; governmental
regulatory actions and political unrest; global economic conditions;
industry production capacity and operating rates; the supply/demand
balance for Lyondell's and its joint ventures' products; competitive
products and pricing pressures; access to capital markets; and
technological developments and other risk factors. For more detailed
information about the factors that could cause our actual results to differ
materially, please refer to Lyondell Chemical Company’s Annual Report on
Form 10-K for the year ended December 31, 2002, filed in March 2003.




                                      2
Lyondell Has Built a Balanced Portfolio
  Lyondell


                                 Stability & Growth
                      IC&D       --   A leading global producer of PO and derivatives
                                 --   Process technology strength


                                 Cash Generation
                      LCR        --   Unique capability to refine heavy crude oils
                                 --   Contractually stable business; strong cash flow generator


                                 Commodity Leverage
                                 --   A leading North American producer of ethylene, propylene
                  Equistar
                                      and polyethylene
                                 --   Low cost position based on feedstock flexibility and scale


             ($ MM)                  2002                   Lyondell
                             Revenues EBITDA               Ownership
             IC&D             $3,262      $410               100.0%
             Equistar          5,537       256                70.5
             LCR               3,392       362                58.75
                                          3
The Recent Years Have Been a Period of
Optimization


        Mid 1990’s                   1999-2002
      Formation years          Position and Optimize

   LCR Contract and JV      Portfolio Adjustments

   Equistar JV              Capacity Rationalization

   IC&D Acquisition         Project Reorientation
                             Organization Effectiveness
                               – Best practices
                               – Organization design


                          4
      Processes and Systems Have Steadily
      Improved the Capital Utilization Within the
      Enterprise

                    Capital Spending                                               Days of Working Capital*

$MM
                 Lyondell    Equistar     PO11 Spending                                    Lyondell     Equistar
                                                                              90
180
                                                                              80
150                                                                           70
120                                                                           60
                                                                              50
 90                                                                           40
 60                                                                           30
 30
                                                                              20
                                                                              10
  0                                                                            0
                                                                                    1998         2002
                     1999                        2002




 * Based on accounts receivable (including those sold), inventories and
     accounts payable as of 12/31, and fourth-quarter days of sales

                                                                          5
A Snapshot of Operating Metrics Highlights
the Success
     90                    % Improvement*
     80
     70
     60
     50           Safety   Downtime       Environment     Quality

     40
     30
     20
     10
      0
              LYO/EQU       EQU           LYO/EQU       Polymers

 * 1998 to 2002

                                      6
A Brief Portfolio Review



   IC&D

   LCR

   Equistar




                      7
 Our Propylene Oxide and Derivatives Business (IC&D)
 Benefits from a Strong Position

                                                                      PG
                                                                      33%

                 Lyondell PO   Bayer
                                                                             BDO
                   Capacity     45%
                                                        Merchant PO          18%
                                       Lyondell             33%
                                         55%


                                                                            P-Solvents
                                                                  Deicer       10%
                                                                   6%




                                                      Capacity        Market
                                   Product
                                                      Position        Growth

                                   Merchant PO           1
                                   PG                    1            Moderate
                                   BDO                   2              High
                                   P-Solvents            2              Low
                                   Deicers               1              Low
                                       PO                             4-5%/yr
Source: LYO databook and SRI
       Post PO-11 Project
                                                  8
PO Technology Development
                                                               Propylene
Chlorohydrin
                 Electricity             Chlor-Alkali         Chlorohydrin             PO
                 Salt


 Peroxidation                  Oxygen                      Propylene


            EB                                                               Styrene
            IC4                                                              MTBE
            H2                                                               H2O
        Cumene                                                               Cumene
                             Oxidation                   Epoxidation

                                                        Propylene Oxide

Direct PO
                 Propylene
                                         Oxidation      Propylene Oxide
                  Oxygen
                                                        H2O
                        H2


                                               9
LCR Important Cash Generator

           Operating Reliability and Crude Deliveries Drive Performance


 MB/day                                                                   $MM
 300                                 CSA            Spot Mkt   EBITDA     140

 250                                                                      120

                                                                          100
 200
                                                                          80
 150
                                                                          60
 100
                                                                          40

  50                                                                      20
                                                                   1
   0                                                                      0
       1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 Q402


       1   4Q01: Scheduled maintenance turnaround




                                                          10
                                         3/2/1 Refining Spread ($/Bbl)




     Source: Platt’s
                                  $0.0
                                          $2.0
                                                 $4.0
                                                        $6.0
                                                               $8.0
                                                                      $10.0
                        Ju
                           l-0                                                $12.0
                        Ju 2
                           l-0
                        Ju 2
                           l
                       Au -02
                          g-
                       Au 0 2
                          g
                       Se -0 2
                          p-
                       Se 02
                          p-
                       O 02
                         ct
                            -0
                       O 2




11
                         ct
                       No -02
                          v-
                       No 0 2
                          v-
                       De 0 2
                          c-
                       De 0 2
                          c-
                       De 0 2
                          c-
                       Ja 0 2
                          n-
                       Ja 03
                                                                                      WTI Crude Oil Refining Margin




                          n
                       Fe -03
                          b-
                       Fe 03
                          b-
                       M 03
                         ar
                            -0
                              3
                                                                                                                      Refining Spreads Have Increased By $4-5/Bbl
Equistar is a Leading Ethylene Producer


                                         Top 5 North America       66%

                                                                   Nova
                                                                    8%
   #2 in North America
                                                               ChevronPhillips
                                                                    10%
   Competitive position based on
    feedstock flexibility                      40%              ExxonMobil
                                              Exxon                13%
                                                7%
                                           Union Carbide
                                                7%                Equistar
                                               Nova                 15%
                                                8%

                                               Dow
                                               9%               Dow/Carbide
                                                                   20%
                                               Shell
                                                9%


                                              1991                2002

    Source: CMAI


                                    12
Significant Cash and Earnings Generation in
Up-Cycle
      Cycle EBITDA Potential
               ($MM)
         $3,000
                                                         LCR         IC&D         Equistar
         $2,500                                                                      $1.35/share


         $2,000
                                                    $6.20/share
         $1,500

         $1,000
            $500

                $0
                                    2002                     1995 Margins¹                   1988 Margins¹
 1   1988/1995 Chem Data/CMAI margins for Ethylene, Polyethylene and Styrene applied to current capacities and ownership
     Note: Assumes current capital structure; 160MM shares

                                                             13
     Liquid Cracking Provides an Advantage


           Equistar Capability
                                                    Liquid Cracking Variable Cost Advantage

                                                                  Ethane - Light Naphtha Cost of Ethylene Spread
                              NGL                    7
                              37%
                                                     6

     Liquid
                                                     5
       63%                          ¢/lb ethylene
                                                                                     Average
                                                    4
          N. American Industry                       3
                (ex. Equistar)
         Liquid                                      2
          22%
                                                     1

                                                     0




                                                                                                                 1995




                                                                                                                                                           2001
                                                         1987
                                                                1988
                                                                       1989
                                                                              1990
                                                                                     1991
                                                                                            1992
                                                                                                   1993
                                                                                                          1994


                                                                                                                        1996
                                                                                                                               1997
                                                                                                                                      1998
                                                                                                                                             1999
                                                                                                                                                    2000


                                                                                                                                                                  2002
                             NGL       Source: ChemData,

                             78%
Source: CMAI and Lyondell.                                         14
           The Oil/Gas Price Ratio has Moved in Favor
           of Liquid Feedstock

          15

                        Oil/Gas Ratio



          10
Oil/Gas




                                                                  Energy Value Parity



           5




           0
               02-Jan           02-Apr   02-Jul        02-Oct   03-Jan 03-Feb 03-Mar


               CMAI -3/03
                                                  15
      N. American Supply/Demand Imbalance is
      Differential to Global Situation
                              Ethylene Supply/Demand Balance - North America
          130
                           Effective Operating Rate
                                                                                     World
          120                                                                                                        100%


          110




                                                                                                                            Effective Operating Rate
          100                                                                                                        90%
                             N. America
Bln lbs




           90


           80                                                                                                        80%
                                                                Nameplate Capacity
                  Demand
           70


           60                                                                                                        70%


           50


           40                                                                                                        60%
                1994         1996         1998           2000   2002                     2004   2006   2008   2010
   Source: CMAI/Equistar
                                    Capacity Additions                16
                           Effective Ethylene Operating Rates Move
                           Toward 95% Early in 2003
                                                        U.S. Ethylene Supply/Demand
                                                           Quarterly - 2002 > 2004
                           20000                                                                                   100


                                                                                                                   95




                                                                                                                          Operating Rate, %
                           18000
   Millions Capacity Lbs




                                                                                                                   90


                           16000                                                                                   85


                                                                                                                   80
                           14000
                                                                                                                   75


                           12000                                                                                   70
                                    Q1         Q2        Q3     Q4      Q1         Q2          Q3   Q4   2004
                                                    2002                                2003             Qtrly
                                                                                                         Avg
                                   Effective Capacity                        Downtime                    Operating Rate

CMAI-2/03
                                                                        17
        As Energy Rose Ethylene Cash Cost
        Increased Accordingly

       40                                                                                   10
                         Ethylene Cash Cost                                                 9
       35                Nat Gas ($/MM BTU)
                         WTI ($/Bbl)
                                                                                            8
       30
                                                                                            7
       25
                                                                                            6




                                                                                                 $/Mn Btu
$/Bl




       20                                                                                   5

                                                                                            4
       15
                                                                                            3
       10
                                                                                            2
        5                                                                                   1

        0                                                                                   0
            02-Jan         02-Apr             02-Jul        02-Oct   03-Jan 03-Feb 03-Mar


            CMAI -3/03
                                                       18
Market Prices Have Increased in Recent
Months
                     Price Increases
                  Jan.           Feb.
  EQUISTAR
   Ethylene       2.25 ¢/lb      1.75 ¢/lb
   Propylene      2.0 ¢/lb       2.0 ¢/lb
   Polyethylene   2.5 ¢/lb       2.5 ¢/lb
   MEG            2.0 ¢/lb       4.5 ¢/lb


  LYONDELL
   Styrene        2.0 ¢/lb       5.5 ¢/lb




                         19
             Typically It Has Taken Time to Move These Increases
             Through The Supply Chain: $3 Bbl Impact At Equistar


                             0
                                         Hours            Days   Weeks    Months
                                                                             Polymers/
                                                                            Derivatives
                                                                               Rise
EBITDA Impact ( $ MM/mo )




                                   Naphtha
                            (10)    Impact
                                                                   Petro -
                                                                  chemicals
                                                                    Rise

                            (20)                 NGLs
                                                 Follow

                                                                     Fuel
                                                                  Co-Products
                                                                     Rise
                            (30)

                                                           20
Our Financial Strategy is Unchanged



   Maintain Sufficient Liquidity


   Repay Debt




                          21
We Have Maintained Significant Liquidity



                                                      Lyondell             Equistar
      Cash & ST Investments*                           $330MM              $27MM
                                                                      1            1
      Revolver*                                        $350MM              $450MM

                         Total Liquidity               $680MM              $477MM




1 – does not include 12/31 amounts committed against letters of credit :
   (LYO-$49MM, Equ-$16MM)
* As of 12/31/2002
                                                 22
De-leveraging Will Benefit All Stakeholders


   Impact of Lyondell debt reduction at constant capitalization1:
                                                                               Debt Reduction
                                                                              $1B         $2B
    Debt to capitalization                                                   54%          36%
    Avoided interest expense                                               $100MM/Yr   $200MM/Yr

    Earnings improvement                                                   40¢/share    80¢/share
    Share price improvement at
    constant capitalization                                                 $6/share    $12/share


    1   Capitalization = debt + book value of equity + minority interest

                                                                    23

				
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