LyondellBasell Industries N.V. (NYSE:LYB)

Sales and Other Operating Revenues

The sales and other operating revenues exhibited a general declining trend from 2011 through 2016. Revenues decreased from $51,035 million in 2011 to a low of $29,183 million in 2016, reflecting a substantial reduction over this six-year period. However, from 2017 onward, a recovery is observable as revenues increased to $34,484 million in 2017 and further to $39,004 million in 2018, suggesting some improvement in the company's top-line performance after the prolonged decline.

Operating Income

Operating income displayed a different pattern compared to revenues. Starting at $3,998 million in 2011, operating income steadily increased, reaching a peak of $6,122 million in 2015. Despite the reduction in sales during the same period, operating income remained robust, indicating improved operational efficiency or cost control. After 2015, operating income experienced a downward adjustment to $5,060 million in 2016, followed by slight increases in subsequent years, ending at $5,231 million in 2018. This suggests that although operating profitability declined somewhat after 2015, it remained strong compared to earlier years.

Net Income Attributable to Company Shareholders

Net income attributable to shareholders consistently increased from $2,147 million in 2011 to $4,476 million in 2015, mirroring the trend in operating income. After peaking in 2015, net income declined to $3,836 million in 2016, similar to operating income's pattern. Notably, net income rebounded sharply to $4,879 million in 2017, surpassing the previous peak, and slightly decreased to $4,688 million in 2018. This fluctuation suggests that while profitability faced pressures in 2016, the company managed to recover strongly the following year, maintaining relatively high net earnings in 2017 and 2018.

The financial data reveals several notable trends across the examined years.

Current Assets

The value of current assets increased from 11,435 million US$ at the end of 2011 to a peak of 14,599 million US$ in 2013. However, a decline followed, reaching 9,589 million US$ in 2016. After this trough, the figure exhibited a recovery trend, rebounding to 11,738 million US$ in 2017, before slightly decreasing again to 10,566 million US$ by the end of 2018.

Total Assets

Total assets showed an overall upward movement starting at 22,839 million US$ in 2011 and reaching 27,298 million US$ in 2013. Subsequently, a downturn occurred, with total assets decreasing to 22,757 million US$ in 2015. From 2015 onwards, the total assets increased again, reaching the highest value of the period analyzed, 28,278 million US$, by the close of 2018.

These fluctuations suggest a period of asset growth peaking around 2013, followed by a contraction until 2015 or 2016, and a subsequent recovery phase through 2018. The recovery in total assets appears stronger and more consistent relative to the somewhat more volatile path of current assets. The patterns may reflect strategic asset management decisions, operational changes, or market conditions influencing the asset base during the timeframe.

The financial data shows the evolution of key liabilities and equity items over the period from 2011 to 2018.

Current liabilities

The current liabilities remained relatively stable between 2011 and 2014, fluctuating slightly around the 5,000 million US dollar mark. Starting from 2015, a noticeable decline occurred, reaching the lowest point in 2015 at 4,349 million USD. However, from 2016 onwards, current liabilities increased again, surpassing previous levels by 2018 to reach 5,513 million USD.

Total debt

Total debt demonstrates a clear increasing trend throughout the entire period. Beginning in 2011 at 4,032 million USD, it grew steadily every year, peaking at 9,387 million USD in 2018. The most significant increases were observed between 2013 and 2016, where total debt grew sharply from 5,835 million to 8,981 million USD. Although there was a slight dip in 2017, the upward trajectory resumed in 2018.

Total Company share of stockholders’ equity

Shareholders' equity showed an upward trend from 2011 to 2013, rising from 10,593 million to its peak at 12,478 million USD. However, a substantial and sudden decline occurred in 2014, dropping to 8,314 million USD, followed by continued decreases until 2016 to 6,048 million USD. Post-2016, there was a recovery, with equity increasing considerably to reach 10,257 million USD in 2018, nearly regaining pre-2014 levels.

Overall, the data indicates a notable increase in leverage, evidenced by the significant rise in total debt throughout the period. This was accompanied by a volatile pattern in shareholders’ equity, with a major drop around 2014-2016 followed by recovery. Current liabilities showed minor fluctuations, with a decline mid-period and an upward trend towards the end. The combination of increasing debt and fluctuating equity highlights changing financial structure and potential shifts in capital management strategies during these years.

Net cash provided by operating activities

The operating cash flow demonstrates an overall upward trend from 2011 through 2014, increasing from $2,869 million to a peak of $6,048 million. Thereafter, it exhibits a gradual decline until 2017, followed by a slight recovery in 2018 to $5,471 million. This pattern suggests strong operational performance initially, with some fluctuations in later years, possibly reflecting changing business conditions or operational efficiency adjustments.

Net cash used in investing activities

Investing activities exhibit consistent negative cash flows across all years, indicating ongoing capital expenditures or investments exceeding divestitures. Notably, 2014 and 2018 show significantly higher cash outflows ($3,531 million and $3,559 million respectively) compared to other years. This could imply large-scale investment projects or acquisitions during these periods, contrasting with relatively moderate outflows in the intermediate years.

Net cash used in financing activities

Cash flows from financing activities are persistently negative throughout the period, suggesting continuous repayment of debt, dividend distributions, or share repurchases exceeding new financing inflows. The highest outflow appears in 2011 at $4,964 million, followed by a notable decrease in 2012 and 2013. However, considerable outflows resume in 2014 and remain materially significant through 2018, indicating sustained financing activities focused on capital return or deleveraging.

Overall trends and insights

Operating activities provide a strong and generally increasing source of cash, supporting the financial framework. Investing activities consistently require significant cash outflows, with spikes suggesting episodic large investments. Financing activities consistently absorb cash, likely reflecting strategic debt management or shareholder return policies. The interplay between these three cash flow components underscores a capital-intensive operational environment with an emphasis on maintaining strong operating cash generation to fund both investment and financing needs.

Basic Earnings per Share (EPS)

The basic earnings per share demonstrated a generally upward trend over the examined period from 2011 to 2018. Starting at $3.76 in 2011, EPS showed consistent annual increases with minor fluctuations, reaching a peak of $12.23 in 2017, followed by a slight decline to $12.04 in 2018. This trajectory indicates steady profitability growth, with EPS more than tripling over the eight-year span, suggesting effective management of earnings relative to the share base.

Diluted Earnings per Share (EPS)

The diluted earnings per share followed a pattern similar to the basic EPS, beginning at $3.74 in 2011 and increasing annually to $12.23 in 2017, before a marginal decrease to $12.01 in 2018. The close alignment of diluted EPS values with the basic EPS across all years implies a relatively low level of dilution effects from convertible securities or stock options, indicating stable capital structure and minimal impact of dilution on shareholder earnings.

Dividend per Share

Dividend per share exhibited a different pattern compared to earnings per share. While dividends started at a higher value of $5.05 in 2011, they declined sharply in the subsequent two years to $2.00 in 2013. From 2013 onwards, dividends experienced a gradual recovery, increasing steadily each year to reach $4.00 in 2018. This pattern may reflect a conservative dividend policy adjustment during the early years, possibly to preserve capital or reinvest earnings, followed by a resumption of dividend growth as earnings stabilized and improved.

Overall Analysis

The financial indicators suggest that while the company’s profitability, as measured by basic and diluted EPS, increased substantially over the period, the dividend policy adjusted more conservatively, particularly after 2011. The recovery and growth in dividends after 2013 align with rising earnings, indicating a strategy balancing earnings retention with shareholder returns. The minor reductions in EPS and dividends in 2018 may warrant further monitoring but do not substantially detract from the overall positive trend observed.