Stock Analysis on Net
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Stock Analysis on Net

LyondellBasell Industries N.V. (NYSE:LYB)

This company has been moved to the archive! The financial data has not been updated since August 2, 2019.

Common-Size Income Statement 

LyondellBasell Industries N.V., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Trade 97.75 97.74 97.50 97.54 98.04
Related parties 2.25 2.26 2.50 2.46 1.96
Sales and other operating revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales -83.40 -81.37 -79.47 -78.46 -85.38
Gross profit 16.60% 18.63% 20.53% 21.54% 14.62%
Selling, general and administrative expenses -2.89 -2.49 -2.85 -2.53 -1.77
Research and development expenses -0.29 -0.31 -0.34 -0.31 -0.28
Operating income 13.41% 15.83% 17.34% 18.70% 12.58%
Interest expense -0.92 -1.42 -1.10 -0.95 -0.77
Interest income 0.12 0.07 0.06 0.10 0.07
Other income, net 0.27 0.52 0.38 0.08 0.08
Income from continuing operations before equity investments and income taxes 12.88% 15.00% 16.67% 17.93% 11.96%
Income from equity investments 0.74 0.93 1.26 1.04 0.56
Income from continuing operations before income taxes 13.62% 15.93% 17.93% 18.97% 12.52%
Provision for income taxes -1.57 -1.73 -4.75 -5.28 -3.38
Income from continuing operations 12.04% 14.19% 13.18% 13.68% 9.15%
Loss from discontinued operations, net of tax -0.02 -0.05 -0.03 -0.02 -0.01
Net income 12.02% 14.14% 13.15% 13.67% 9.14%
Net (income) loss attributable to non-controlling interests -0.01 0.01 0.00 0.01 0.01
Net income attributable to the Company shareholders 12.02% 14.15% 13.14% 13.67% 9.15%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Sales Composition and Revenue
The percentage of sales from trade customers remains relatively stable over the period, fluctuating slightly around 97.5%, indicating a consistent revenue base from this segment. Related party sales show a modest increase from 1.96% in 2014 to a peak of 2.5% in 2016, followed by a slight decline, suggesting some variability in transactions with related entities. Overall, the total sales and other operating revenues are consistently accounted for as 100%.
Cost of Sales and Gross Profit
Cost of sales as a percentage of revenues shows a notable decrease from -85.38% in 2014 to its lowest point at -78.46% in 2015, indicating an improvement in cost efficiency during that year. However, from 2015 onwards, there is an increasing trend in costs reaching -83.4% in 2018, signaling rising costs relative to sales. Correspondingly, gross profit margins peak in 2015 at 21.54% and then decline steadily to 16.6% by 2018, reflecting shrinking profitability at the gross margin level.
Operating Expenses
Selling, general, and administrative expenses rise in proportion to sales from -1.77% in 2014 to values fluctuating near -2.85% in subsequent years, indicating increased spending in these areas relative to revenues. Research and development expenses remain relatively stable and low, hovering around -0.3% throughout the time frame, suggesting consistent but marginal investment in this segment.
Operating and Net Income
Operating income exhibits a peak of 18.7% in 2015, followed by a declining trend to 13.41% in 2018, reflecting diminishing operational profitability. Interest expenses increase until 2017, reaching -1.42%, then decrease to -0.92% in 2018, which may indicate changes in debt levels or interest rates. Interest income remains minimal but slightly increases by 2018. Other income experiences a notable rise in 2016 and 2017, but decreases in 2018.
Income Before Taxes and Taxes
Income before income taxes follows the operating income trend, peaking at 18.97% in 2015 and declining to 13.62% by 2018. Provision for income taxes shows significant fluctuation, with a high of -5.28% in 2015 dropping sharply to around -1.57% by 2018, suggesting varying tax impacts or benefits over the years.
Net Income and Earnings Attribution
Net income increases markedly from 9.14% in 2014 to a maximum of approximately 14.14% in 2017, before declining to 12.02% in 2018. Income from continuing operations follows a similar pattern. The loss from discontinued operations is negligible throughout the period, indicating limited impact. Net income attributable to the company shareholders mirrors net income trends closely, suggesting consistent allocation of earnings to shareholders without significant influence from non-controlling interests.
Summary
Overall, the data displays a pattern of improved profitability peaking around 2015-2017, followed by a decline in margins and profitability ratios by 2018. Cost of sales increased relative to revenues in the latter years, eroding gross margins and operating income. Operating expenses increased modestly as a percentage of sales, while income tax provisions became less burdensome in recent years. The company's net income remained positive with some volatility, indicating resilience despite margin compression toward the end of the period under review.