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LYONDELL PETROCHEMICAL COMPANY REPORTS EARNINGS FOR FOURTH QUARTER, FULL YEAR 1991

          LYONDELL PETROCHEMICAL COMPANY REPORTS EARNINGS
                 FOR FOURTH QUARTER, FULL YEAR 1991
    HOUSTON, Jan. 27 /PRNewswire/ -- Lyondell Petrochemical Company (NYSE: LYO) today reported net income for the full year 1991 of $222 million, or $2.78 per share, compared to $356 million, or $4.45 per share, in 1990.
    Bob G. Gower, president and chief executive officer of Lyondell Petrochemical Company, said, "Even though Lyondell's 1991 results were affected by a sharp downturn in the petrochemical industry, they benefited from our ongoing emphasis on low cost and operational flexibility as well as continued high employee productivity.  We are well positioned for 1992, with $307 million in cash and marketable securities at year end."
    "We also continued to focus on achieving maximum returns for our stockholders.  For 1991, an investment in Lyondell common stock provided a total pre-tax return of more than 65 percent (assuming all dividends were reinvested) -- one of the highest in the petrochemical industry," Gower said.
    The major factor affecting 1991 results was lower ethylene margins resulting from a weak economic environment and additional petrochemical industry capacity.  On the positive side, methanol profitability improved and sales volumes for ethylene and methanol were at record levels.
    Results in 1991 again benefited from strong performance from refining operations.  Refining profitability was at the same level as the previous year, and contributed more than half of the company's operating income for 1991.
    After-tax earnings in 1991 included a benefit of $25 million primarily associated with insurance and litigation settlements and LIFO inventory reductions and a negative impact of $7 million for new Texas franchise taxes.  This compares with a benefit of $10 million in 1990, primarily due to LIFO.
    For the fourth quarter of 1991, net income was $21 million, or $.27 per share, compared with $33 million, or $.41 per share in the third quarter of 1991, and $73 million, or $.91 per share, in the fourth quarter of 1990.
    The major factor in the decline in fourth quarter earnings vs. the third quarter of 1991 was the absence of the settlements described above.  Although refining margins were lower in the fourth quarter compared to the third quarter, this was offset by improved petrochemical margins.  Compared to the fourth quarter of 1990, results for the 1991 fourth quarter were impacted by lower margins for ethylene and aromatics.
    Lyondell Petrochemical Company produces a wide variety of petrochemicals including olefins (primarily ethylene, propylene, butadiene and butylenes), methanol, MTBE and specialty products, polyethylene and polypropylene and refined petroleum products, including gasoline, heating oil, jet fuel, aromatics and lubricants.
                       LYONDELL PETROCHEMICAL COMPANY
                              Income Statement
              (Dollars in millions except per share data - Unaudited)
    Periods ended               Three months          12 months
     Dec. 31                   1991     1990       1991        1990
    Sales and other
     operating revenues       $1,354   $1,989     $5,729      $6,495
    Cost of sales              1,273    1,833      5,207       5,777
    Operating margin              81      156        522         718
    Selling, general and
     administrative expenses      34       32        122         117
    Interest expense, net         16       16         60          64
    Income before income taxes    31      108        340         537
    Provision for income taxes    10       35        118         181
    Net income                   $21      $73       $222        $356
    Earnings per share         $0.27    $0.91      $2.78       $4.45
    Average number common
     shares outstanding
     (thousands)              80,000   80,000     80,000      80,000
                         LYONDELL PETROCHEMICAL COMPANY
                            Selected Financial Data
                             (Millions of dollars)
    Periods ended                 Three months        12 months
     Dec. 31                      1991    1990      1991    1990
    Sales and Other Operating
     Revenues:
    Petrochemical operations      $471    $674     $1,944  $2,319
    Refinery operations  (A)     1,065   1,583      4,517   4,978
    Intracompany eliminations     (182)   (268)      (732)   (802)
    Total                       $1,354  $1,989     $5,729  $6,495
    Operating Margins:
    Petrochemical operations       $41     $89       $249    $448
    Refinery operations             40      67        273     270
    Total                          $81    $156       $522    $718
    Sales Volumes:
    Selected petrochemical
     products (millions)
    Ethylene, propylene, and
     polymers (lbs.)             1,506   1,513      6,000   6,373
    Methanol (gallons)              58      66        224     220
    Aromatics (gallons)             31      19        108      98
    Selected refined products
     (thousand barrels per day)
    Gasoline                       107     112        131     137
    Heating oil (No. 2 distillate)  63      71         74      78
    Jet fuel                        35      37         33      36
    Aromatics                       12      11         11      11
    Refinery Crude Runs
     (thousand barrels per day)    248     211        255     258
    (A)  Includes crude oil resales in the amount of $350 million and $509 million for the three month periods ended Dec. 31, 1991 and 1990, respectively and $1,308 million and $1,256 million for the twelve month periods ended Dec. 31, 1991 and 1990, respectively.
                     LYONDELL PETROCHEMICAL COMPANY
                         Financial Information
                   (Millions of dollars - Unaudited)
    Condensed Balance Sheet               12/31/91
    Cash and short-term investments        $307
    Accounts receivable, inventories
     and other current assets               582
    Fixed assets, (net) and other
     non-current assets                     590
      Total assets                       $1,479
    Current liabilities                    $514
    Long-term debt and capitalized
     lease obligations                      710
    Other liabilities and deferred credits  133
    Stockholders' equity                    122
      Total liabilities and
        stockholders' equity             $1,479
                     LYONDELL PETROCHEMICAL COMPANY
                     Condensed Cash Flow Statement
    Twelve months ended                 12/31/91
    Net income                            $222
    Non-cash charges
     Depreciation                           41
     Deferred income taxes                  18
    Change in working capital/other        (11)
     Cash flow from operations             270
    Additions to fixed assets              (43)
    Additions to short-term investments   (101)
    Repayments of long-term debt           (29)
    Capital lease repayments               (28)
    Proceeds from long-term debt           150
    Dividends                             (140)
    Increase in cash and cash equivalents  $79
    -0-        1/27/92
    /CONTACT:  Jackie Wilson, 713-652-4596, or Greg Dunlevy, 713-652-7367, both of Lyondell Petrochemical/
    (LYO) CO:  Lyondell Petrochemical Company ST:  Texas IN:  OIL SU:  ERN SM -- NY023 -- 3576 01/27/92 09:29 EST
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Date:Jan 27, 1992
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