LyondellBasell Announces Weighing Of Strategic Options For Refining Business
LyondellBasell (NYSE: LYB) announced on September 8, 2021, its consideration of strategic options for its Gulf Coast Refining Segment, potentially including a sale. CEO Bob Patel stated the Houston Refinery is an asset that may have greater value as part of a larger system. The refinery, capable of processing 268,000 barrels of crude oil per day, produces various fuels and chemicals and is located on the Houston Ship Channel. The company did not provide assurances about the process's outcome or timing, with Bank of America advising on this strategic review.
- The Houston Refinery has a rated capacity of 268,000 barrels per day, indicating strong operational capabilities.
- Potential sale could unlock greater value for stakeholders.
- No assurances regarding the outcome or timing of the strategic options could create uncertainty.
- Market conditions and industry cyclicality pose risks to the refining business.
HOUSTON, Sept. 8, 2021 /PRNewswire/ -- LyondellBasell (NYSE: LYB), today announced it is weighing strategic options for its Gulf Coast-based Refining Segment, including a potential sale.
"While the Houston Refinery is a valuable, well-performing asset, we have long held the belief that it may be even more valuable as part of a larger refining system," said Bob Patel, CEO of LyondellBasell. "To that end, we are actively gauging market interest in this business with the goal of delivering the greatest value to all our stakeholders."
LyondellBasell's Houston Refinery is one of the largest refineries in the U.S., with a rated capacity to transform 268,000 barrels per day of crude oil into high-value transportation fuels such as reformulated gasoline, ultra-low sulfur diesel and jet fuel, as well as other products including lubricants, chemical intermediates and petroleum coke. The facility is strategically located on the Houston Ship Channel and covers approximately 700 acres. The refinery has been under Company ownership since 2006.
The Company cannot provide assurances regarding the outcome or timing of this process and does not intend to make further announcements regarding this review unless and until it is required or appropriate.
Bank of America is acting as financial advisor and Vinson & Elkins is legal counsel to the Company for this process.
About LyondellBasell
LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world's largest producer of polypropylene compounds and the largest licensor of polyolefin technologies. In 2021, LyondellBasell was named to FORTUNE Magazine's list of the "World's Most Admired Companies" for the fourth consecutive year. More information about LyondellBasell can be found at www.lyondellbasell.com.
FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the refining industry; uncertainties and impacts related to the extent and duration of the pandemic; pricing pressures; our ability to identify, evaluate and complete any strategic alternative related to the refinery.
There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.
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SOURCE LyondellBasell Industries
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