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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Download chart

LyondellBasell Industries N.V., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net income	4,690)	4,877)	3,837)	4,474)	4,168)
Depreciation and amortization	1,241)	1,174)	1,064)	1,047)	1,019)
Amortization of debt-related costs	14)	15)	16)	16)	20)
Charges related to repayment of debt	—)	49)	—)	—)	—)
Share-based compensation	39)	55)	38)	53)	—)
Inventory valuation adjustment	—)	—)	29)	548)	760)
Equity investments, equity income	(289)	(321)	(367)	(339)	(257)
Equity investments, distribution of earnings, net of tax	307)	309)	385)	285)	156)
Deferred income taxes	260)	(587)	357)	181)	177)
Gain on sales of business and equity investments	(36)	(108)	(84)	—)	—)
Accounts receivable	433)	(521)	(383)	780)	358)
Inventories	(141)	(237)	123)	(240)	(205)
Accounts payable	(199)	165)	383)	(786)	(378)
Changes in assets and liabilities that provided (used) cash	93)	(593)	123)	(246)	(225)
Other, net	(848)	336)	208)	(177)	230)
Adjustments to reconcile net income to net cash provided by operating activities	781)	329)	1,769)	1,368)	1,880)
Net cash provided by operating activities	5,471)	5,206)	5,606)	5,842)	6,048)
Expenditures for property, plant and equipment	(2,105)	(1,547)	(2,243)	(1,440)	(1,499)
Acquisition of A. Schulman, net of cash acquired	(1,776)	—)	—)	—)	—)
Payments for repurchase agreements	—)	(512)	(674)	(397)	(425)
Proceeds from repurchase agreements	—)	381)	685)	350)	75)
Purchases of available-for-sale debt securities	(50)	(653)	(688)	(2,073)	(3,439)
Proceeds from sales and maturities of available-for-sale debt securities	423)	499)	674)	2,489)	1,751)
Purchases of held-to-maturity securities	—)	—)	(76)	—)	—)
Proceeds from maturities of held-to-maturity securities	—)	75)	—)	—)	—)
Purchases of equity securities	(64)	—)	—)	—)	—)
Proceeds from sales and maturities of equity securities	97)	—)	—)	—)	—)
Net proceeds from sales of business and equity investments	37)	155)	209)	—)	—)
Proceeds from settlement of net investment hedges	1,108)	609)	1,295)	—)	—)
Payments for settlement of net investment hedges	(1,078)	(658)	(1,356)	—)	—)
Change in restricted cash	—)	—)	4)	(5)	8)
Other, net	(151)	(105)	(127)	25)	(2)
Net cash used in investing activities	(3,559)	(1,756)	(2,297)	(1,051)	(3,531)
Repurchases of Company ordinary shares	(1,854)	(866)	(2,938)	(4,656)	(5,788)
Dividends paid, common stock	(1,554)	(1,415)	(1,395)	(1,410)	(1,403)
Issuance of long-term debt	—)	990)	812)	984)	992)
Repayment of long-term debt	(394)	(1,000)	—)	—)	—)
Debt extinguishment costs	—)	(65)	—)	—)	—)
Payments of debt issuance costs	—)	(8)	(5)	(16)	(18)
Net proceeds from (repayments of) commercial paper	810)	(493)	177)	61)	262)
Other, net	(16)	(2)	—)	187)	48)
Net cash used in financing activities	(3,008)	(2,859)	(3,349)	(4,850)	(5,907)
Effect of exchange rate changes on cash	(31)	59)	(9)	(48)	(29)
Increase (decrease) in cash and cash equivalents and restricted cash	(1,127)	650)	(49)	(107)	(3,419)
Cash and cash equivalents and restricted cash at beginning of period	1,528)	878)	924)	1,031)	4,450)
Cash and cash equivalents and restricted cash at end of period	401)	1,528)	875)	924)	1,031)

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).

Operating activities consistently generated substantial cash flows between 2014 and 2018, providing a stable foundation for the company's capital expenditures and shareholder distributions. Net income remained relatively stable throughout this period, fluctuating between 3.8 billion and 4.9 billion US dollars. A steady upward trend in depreciation and amortization is observed, increasing from 1.02 billion US dollars in 2014 to 1.24 billion US dollars in 2018, reflecting a consistent investment in the long-term asset base.

Operating Cash Flow Performance: Net cash provided by operating activities showed a slight overall decline, moving from 6.05 billion US dollars in 2014 to 5.47 billion US dollars in 2018. While net income peaked in 2017, the operating cash flow remained resilient, supported by non-cash adjustments and managed fluctuations in working capital, although the year 2017 saw a significant negative impact from deferred income taxes.
Investing Strategy and Capital Allocation: Cash used in investing activities was highly variable, driven by both organic growth and strategic acquisitions. Expenditures for property, plant, and equipment were significant, peaking at 2.24 billion US dollars in 2016 and 2.11 billion US dollars in 2018. A major liquidity event occurred in 2018 with the acquisition of A. Schulman, resulting in a net cash outflow of 1.78 billion US dollars. Furthermore, a strategic shift is evident in the management of securities, as purchases of available-for-sale debt securities plummeted from 3.44 billion US dollars in 2014 to only 50 million US dollars in 2018.
Financing Activities and Shareholder Returns: Financing activities were characterized by a consistent and aggressive return of capital to shareholders. Repurchases of ordinary shares were most pronounced in 2014 at 5.79 billion US dollars and generally trended downward to 1.85 billion US dollars by 2018. Dividend payments remained remarkably stable, ranging from 1.40 billion to 1.55 billion US dollars annually. The company utilized long-term debt issuance to support liquidity in earlier years, though a shift toward debt repayment is observed in 2017 and 2018.
Liquidity and Net Cash Position: The overall cash and cash equivalents position experienced a substantial contraction over the five-year horizon. The period began with 4.45 billion US dollars in 2014 and concluded with 401 million US dollars at the end of 2018. This decline is primarily attributed to the heavy prioritization of share repurchases and strategic acquisitions, which frequently exceeded the net cash generated from operating activities.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?