Name: LyondellBasell Industries N.V. (NYSE:LYB) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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LyondellBasell Industries N.V., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Trade	38,126)	33,705)	28,454)	31,930)	44,714)
Related parties	878)	779)	729)	805)	894)
Sales and other operating revenues	39,004)	34,484)	29,183)	32,735)	45,608)
Cost of sales	(32,529)	(28,059)	(23,191)	(25,683)	(38,939)
Gross profit	6,475)	6,425)	5,992)	7,052)	6,669)
Selling, general and administrative expenses	(1,129)	(859)	(833)	(828)	(806)
Research and development expenses	(115)	(106)	(99)	(102)	(127)
Operating income	5,231)	5,460)	5,060)	6,122)	5,736)
Interest expense	(360)	(491)	(322)	(310)	(352)
Interest income	45)	24)	17)	33)	33)
Other income, net	106)	179)	111)	25)	38)
Income from continuing operations before equity investments and income taxes	5,022)	5,172)	4,866)	5,870)	5,455)
Income from equity investments	289)	321)	367)	339)	257)
Income from continuing operations before income taxes	5,311)	5,493)	5,233)	6,209)	5,712)
Provision for income taxes	(613)	(598)	(1,386)	(1,730)	(1,540)
Income from continuing operations	4,698)	4,895)	3,847)	4,479)	4,172)
Loss from discontinued operations, net of tax	(8)	(18)	(10)	(5)	(4)
Net income	4,690)	4,877)	3,837)	4,474)	4,168)
Net (income) loss attributable to non-controlling interests	(2)	2)	(1)	2)	6)
Net income attributable to the Company shareholders	4,688)	4,879)	3,836)	4,476)	4,174)

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).

The financial performance between 2014 and 2018 is characterized by significant revenue volatility offset by resilient operating profitability. A pronounced contraction in sales occurred between 2014 and 2016, followed by a recovery phase that saw revenues trend upward through 2018. Despite these top-line fluctuations, the company maintained a consistent level of net income attributable to shareholders, supported by effective cost management and a reduction in tax burdens.

Revenue Analysis: Sales and other operating revenues experienced a sharp decline from 45,608 million US$ in 2014 to a trough of 29,183 million US$ in 2016. Following this period, a recovery trend is observed, with revenues increasing to 34,484 million US$ in 2017 and reaching 39,004 million US$ by 2018.
Gross Profit and Margin Stability: Gross profit remained remarkably stable despite the volatility in sales, fluctuating within a relatively narrow band between 5,992 million US$ and 7,052 million US$. This indicates a strong ability to manage the cost of sales relative to revenue; notably, the gross profit margin increased during the revenue decline of 2015 and 2016, suggesting pricing adjustments or cost efficiencies that mitigated the impact of lower sales volumes.
Operating Efficiency and Expenses: Operating income remained steady, ranging from 5,060 million US$ to 6,122 million US$ over the five-year period. Selling, general, and administrative expenses were held consistent at approximately 800 million US$ from 2014 to 2017, before rising to 1,129 million US$ in 2018. Research and development expenses remained flat, averaging approximately 110 million US$ per year, indicating a stable commitment to innovation regardless of market conditions.
Net Income and Tax Impacts: Net income attributable to shareholders showed a general upward trend from 2016 onward, peaking at 4,879 million US$ in 2017. This growth in net income was heavily influenced by a significant decrease in the provision for income taxes, which fell from 1,540 million US$ in 2014 to 613 million US$ in 2018. This reduction in tax expense contributed substantially to the maintenance of net profit levels even when operating income did not show a corresponding increase.

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