Lyondell Announces Capital Budget for 2006
January 26 2006 - 8:00AM
PR Newswire (US)
HOUSTON, Jan. 26 /PRNewswire-FirstCall/ -- Lyondell Chemical
Company (NYSE:LYO) today announced the 2006 capital expenditure
budget for Lyondell, including Equistar Chemicals and Millennium
Chemicals, and for Lyondell-Citgo Refining (LCR). Components of the
2006 capital budget, estimated 2005 capital expenditures, and
estimated 2005 depreciation and amortization are shown below by
entity. Millions of dollars LCC(a) Equistar Millennium Lyondell
LYONDELL- Chemicals Chemicals Chemical CITGO Company Refining
(Consolidated) (100%) 2006 Capital Budget $75(b) $232 $97(c) $404
$230 2005 Capital Expenditures $51(b) $153 $60 $264 $176 2005
Depreciation and Amortization (D&A) $234 $360(d) $135(d) $729
$116 Lyondell's Ownership 100% 100% 100% 58.75% (a) LCC includes
Lyondell Chemical Company and its subsidiaries other than Equistar
Chemicals and Millennium Chemicals and their subsidiaries. (b)
Includes contributions to U.S. and European PO Joint Ventures. (c)
Approximately 75% related to titanium dioxide. (d) In their
separate Forms 10-K, Equistar Chemicals and Millennium Chemicals
will report 2005 depreciation estimated to be $322 million and $107
million, respectively. The difference represents depreciation of
the values allocated to Equistar and Millennium in Lyondell's
accounting for its purchase of Millennium on Nov. 30, 4004.
Projected 2006 capital spending for base support and minor plant
efficiency projects totals $335 million across the company,
including LCR on a 100-percent basis. Environmental and regulatory
project spending, including emission reductions and low-sulfur
fuels, totals $215 million including LCR. The majority of this
spending will be at LCR and Equistar. The balance of the budgeted
funds will be directed primarily toward profit enhancement within
the Equistar business, including projects devoted to further
co-product upgrading and raw materials flexibility. Lyondell's 2006
capital plan does not include any major plant expansions. Lyondell
believes that the 2006 capital plan represents the last year of
major new regulatory spending under current environmental
regulations. Lyondell expects to make capital contributions to LCR
during 2006 equal to its share of LCR's capital spending (58.75
percent or $135 million). ABOUT LYONDELL Lyondell Chemical Company,
headquartered in Houston, Texas, is North America's third-largest
independent, publicly traded chemical company. Lyondell is a major
global manufacturer of basic chemicals and derivatives including
ethylene, propylene, titanium dioxide, styrene, polyethylene,
propylene oxide and acetyls. It also is a significant producer of
gasoline blending components. The company has a 58.75 percent
interest in Lyondell-Citgo Refining LP, a refiner of heavy,
high-sulfur crude oil. As a result of Lyondell's November 30, 2004
acquisition of Millennium Chemicals Inc., Millennium and Equistar
Chemicals, LP are wholly owned subsidiaries of Lyondell. Lyondell
is a global company operating on five continents and employs
approximately 10,000 people worldwide. DATASOURCE: Lyondell
Chemical Company CONTACT: Investors - Doug Pike, +1-713-309-4590,
Media - Susan Moore, +1-713-309-4645, both of Lyondell Chemical
Company Web site: http://www.lyondell.com/
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