LyondellBasell Industries N.V. (NYSE:LYB)

The annual reported and investment adjusted net income attributable to the Company shareholders exhibits a measurable fluctuation over the five-year period from 2014 to 2018.

Reported Net Income

The reported net income shows an initial increase from US$4,174 million in 2014 to US$4,476 million in 2015, suggesting a positive growth trend in the first year. However, in 2016, the net income decreases to US$3,836 million, indicating a setback or challenging business conditions during this period. This decline is followed by a substantial recovery in 2017, where the net income rises sharply to US$4,879 million, surpassing the previous highs. In 2018, the net income slightly decreases to US$4,688 million but remains significantly higher than the 2016 figure, indicating sustained profitability.

Adjusted Net Income

The adjusted net income closely follows the pattern of the reported net income with minor deviations, reflecting adjustments that have minimal impact on the overall financial performance. Starting at US$4,174 million in 2014, it gradually rises to US$4,471 million in 2015. The adjusted net income dips to US$3,842 million in 2016, consistent with the reported net income decrease. It then recovers to US$4,876 million in 2017, followed by a marginal decrease to US$4,688 million in 2018.

Overall, the data indicates a period of growth and profitability with a notable dip in 2016 followed by a strong rebound. The minimal differences between reported and adjusted net incomes suggest that non-operational adjustments had limited influence on the company's core earnings during this timeframe.

Net Profit Margin

The reported net profit margin demonstrates an overall positive trend from 2014 to 2017, increasing from 9.15% in 2014 to a peak of 14.15% in 2017. However, in 2018, the margin declined to 12.02%, indicating some reduction in profitability relative to sales in the final year analyzed. The adjusted net profit margin closely follows the reported figures, suggesting minimal impact from adjustments on this metric.

Return on Equity (ROE)

The reported ROE shows a significant rise from 50.2% in 2014 to a high of 68.34% in 2015, indicating strong efficiency in generating profits from shareholders' equity during this period. After 2015, ROE exhibits a downward trend, decreasing to 45.71% by 2018. The adjusted ROE mirrors the reported values closely, which indicates that adjustments had little effect on the overall return to equity holders.

Return on Assets (ROA)

ROA initially increases from 17.19% in 2014 to 19.67% in 2015, signaling improved asset utilization. In 2016, there is a noticeable dip to 16.36%, followed by another rise in 2017 to 18.62%. The 2018 figure shows a slight decline to 16.58%. The adjusted ROA remains nearly identical to the reported values, reaffirming the consistency of asset efficiency measurements after adjustment.

Overall Observations

The profitability and efficiency metrics of the company display a pattern of initial strong improvement from 2014 through 2015, followed by variability and decline in the later years, particularly in 2018. The alignment between reported and adjusted figures indicates that adjustments made for investment considerations do not significantly alter the interpretation of financial performance trends during this period.

Net Income Trends

The reported net income attributable to the Company shareholders showed variability over the five-year period. Starting at 4,174 million US dollars in 2014, it increased to a peak of 4,879 million US dollars in 2017 before slightly declining to 4,688 million US dollars in 2018. The adjusted net income figures closely mirrored this pattern, with minimal deviations throughout the years, indicating consistent adjustment practices.

Profit Margin Trends

The reported net profit margin exhibited an upward trend from 9.15% in 2014 to a high of 14.15% in 2017, followed by a decline to 12.02% in 2018. The adjusted net profit margin aligned almost exactly with the reported margin, reflecting stability in the margin adjustments applied. This trend suggests improving profitability efficiency through 2017 with some contraction in the final year analyzed.

Comparative Analysis of Reported and Adjusted Figures

The close alignment between reported and adjusted net income and profit margins across all years implies that adjustments made to the net income figures were minor and did not significantly alter the overall financial performance picture. This indicates consistency in financial reporting and suggests that unusual or non-recurring items had limited impact on the core profitability measures during this period.

The analysis of the provided financial data reveals several notable trends over the five-year period ending December 31, 2018.

Net Income Attributable to the Company Shareholders (Reported and Adjusted)

Reported net income exhibited fluctuations during the period. It increased from 4,174 million USD in 2014 to a peak of 4,879 million USD in 2017, representing a significant rise. However, in 2018, net income slightly decreased to 4,688 million USD, though it remained above the 2014 baseline.

Adjusted net income followed a very similar pattern to reported net income, with marginal differences in 2015 and 2016. The close alignment between reported and adjusted figures indicates limited impact of adjustments on net income trends.

Return on Equity (ROE) - Reported and Adjusted

Both reported and adjusted ROE demonstrated a declining trend over the five years. Starting from a high base of approximately 50.2% in 2014, ROE sharply increased to over 68% in 2015, then declined gradually to 45.71% in 2018.

The adjusted ROE closely mirrored the reported ROE across all years, suggesting that reported profitability ratios were not materially affected by adjustments.

The decline in ROE from the 2015 peak suggests that equity profitability weakened despite the relatively stable net income figures from 2016 to 2018. This may indicate increasing equity base or other balance sheet factors impacting equity returns.

Overall, the data depicts a company experiencing strong profitability in terms of net income with some variability, juxtaposed against a diminishing return on equity following a mid-period peak. The proximity of reported and adjusted figures throughout the period hints at consistent financial reporting practices without significant one-time distortions in the results.

The analysis of the financial data over the five-year period reveals several notable trends regarding profitability and asset utilization.

Net Income Attributable to Company Shareholders

The reported net income displays a fluctuating pattern. It increased from 4,174 million USD in 2014 to a peak of 4,476 million USD in 2015, then declined to 3,836 million USD in 2016. Subsequently, it recovered to 4,879 million USD in 2017 before slightly decreasing to 4,688 million USD in 2018. The adjusted net income follows the same trend closely, with only marginal differences in 2015 and 2016, indicating limited adjustments were necessary during those years.

Return on Assets (ROA)

The reported ROA follows a similar trajectory to net income, starting at 17.19% in 2014 and reaching its highest point at 19.67% in 2015. It then declined to 16.36% in 2016, rose again to 18.62% in 2017, and fell to 16.58% in 2018. The adjusted ROA mirrors the reported ROA very closely throughout the period, confirming the consistency between reported results and investment-adjusted figures.

Overall, both net income and ROA exhibit volatility without a consistent upward or downward trend. The peaks in 2015 and 2017 suggest periods of higher profitability and asset efficiency, while the dips in 2016 and 2018 indicate more challenging operating conditions or lower returns during those years. The close alignment between reported and adjusted figures suggests limited variation due to non-recurring or investment adjustments.