Income Statement

LYONDELL CHEMICAL COMPANY

CONSOLIDATED STATEMENTS OF INCOME

  For the year ended December 31,
 
Millions of dollars, except per share data   2006   2005   2004  

 
 
 
 
Sales and other operating revenues:              
Trade   $20,894   $16,907   $5,821  
Related parties   1,334   1,699   125  
     22,228   18,606   5,946  
Operating costs and expenses:              
Cost of sales   19,772   16,494   5,464  
Asset impairments   673   210   4  
Selling, general and administrative expenses   620   543   287  
Research and development expenses   94   91   41  
Purchased in-process research and development   —    —    64  
   
 
 
 
    21,159   17,338   5,860  
   
 
 
 
Operating income   1,069   1,268   86  
               
Interest expense   (631)   (649)   (463)  
Interest income   41   46   14  
Other income (expense), net   36   (39)   (11)  
   
 
 
 
Income (loss) before equity investments and income taxes   515   626   (374)  
               
Income from equity investments:              
Houston Refining LP   73   123   303  
Equistar Chemicals, LP   —    —    141  
Other   5   1   7  
   
 
 
 
    78   124   451  
   
 
 
 
Income before income taxes   593   750   77  
Provision for income taxes   407   219   23  
   
 
 
 
Net income   $186   $531   $54  
   
 
 
 
Earnings per share:              
Basic   $0.75   $2.16   $0.29  
   
 
 
 
Diluted   $0.72   $2.04   $0.29  
   
 
 
 


See Notes to the Consolidated Financial Statements in Lyondell's 2006 Form 10-K.